Surgeons don’t have it easy. For the toughest operations they must make procedural choices that make patients better without causing any harm. The wrong move and the patient comes out worse than before. But the right moves – born from knowledge, experience, and skill – can save and improve lives.
IT teams are not tasked with saving lives. But they are tasked with saving companies money. And in this pursuit they too don’t have it easy. Often they face two conflicting imperatives when it comes to taking cost out of their operations.
The first is the usual mantra to reduce costs across the board, which inevitably kick starts a wave of horizontal initiatives to take out infrastructure cost. This can take the form of infrastructure optimisation via the “turn it off and see if anyone notices,” or virtualization strategy, through to the broader private cloud or “lift and shift” outsource strategies.
While these approaches have their merits, the challenge often comes from the competing imperative: ensuring that the business is still supported to the high levels demanded and that business applications, trades and transactions are not put at any risk.
This is where it gets ugly!
To truly understand risk and cost from a business unit or application perspective, it is impossible to separate the two things, yet this is exactly what the centralized IT governance model gives us – insourced or outsourced teams focused on horizontal infrastructure and vertical teams focused on interfacing with the business.




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1 Comment to "Operating with Surgical Precision":
shalom
05 November 2010
The problem with connecting the dots is that the data collected by the vertical teams usually has no way to link it to the data collected by the horizontal teams. The vertical teams are usually only measuring transaction counts. The horizontal teams are usually only measuring overall system utilization. It is rare that the transactions counts can be correlated with system utilization without collecting additional levels of detail. In essence, you are interested in using a model similar to Activity Based Costing. Most companies have problems switching to ABC because there is usually no way to tie the costs to business transactions. I have worked in organizations where this was done (uaully before the system was implemented). However, you will need a team of people with strong statistical, queuing thery and IT backgrounds in order to build the models and communicate with both the horizontal and vertical organizations.
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