Balance Fosters Project Success

Implementing and adopting new technology is difficult for any size organization. A 2012 McKinsey & Co. report concluded that “On average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted.”

We certainly have seen high-profile information technology failures here in the Sacramento region. Most of us have likely seen an IT project fail at some level.

The problem is not finding a solution; it is finding a solution that balances investment and return. Easier said than done.

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Caution in adopting Internet-of-Things (IoT)

The Internet of Things puts computing technology in nontraditional devices — that is, things other than desktops, tablets and smartphones. A network interface allows these devices to communicate over private networks and the Internet. Think: My refrigerator knows we’re out of milk so it contacts the store to order another gallon.

You may think this futuristic vision is a long way from practical application in your business. But the technology industry is betting differently — and pushing hard to make it appealing to your business. The industry analyst Gartner expects the Internet of Things — shorthanded as IoT — to grow from just under a billion devices reported in 2009 to 26 billion by 2020. The giant network technology company Cisco is even more bullish, estimating 50 billion by 2020.

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Danger in your Data Center

Last April I wrote about the risks of using the Windows XP desktop operating system after Microsoft support for that system expired. On July 15, another important Microsoft operating system is reaching the end of its supported life: Windows Server 2003. This presents a far more severe risk for your business.

One reason is simply the potential scope of impact. Unlike a desktop computer, a server hosts an application or database across an entire department, line of business or even the whole company. The scope is compounded for small businesses because many extend their hardware investment by running multiple applications and databases across one server.

The second factor, a potentially larger risk, is increased exposure to a data breach. After July 15, security updates will no longer be available for Server 2003. This means any new exploits could provide a doorway into your company’s most sensitive data.

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Reduce the Risk of Buying the Wrong Technology

We've all experienced the pain of buying a new technology to solve a problem and then discovering it didn't meet our expectations, was incompatible with other devices or software, or a better alternative existed, maybe at a better price. The pain might be a sting if it's a consumer item that costs a few hundred dollars. The pain is very different if it's a business technology that costs the organization tens or even hundreds of thousands of dollars.

A request for proposal, or RFP, is the tool I recommend to minimize risks of buying the wrong technology or hiring the wrong provider.

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How to staff small business IT departments

I consistently see small organizations struggling to staff their IT departments. The struggle often is rooted in budget constraints resulting in only one or two full-time positions within the department. That means squeezing a multitude of roles and skillsets into the positions and then attempting to fill the highly diverse yet specialized roles from a limited pool of applicants who can meet the demands.

Doing more with less is a necessary mantra of most small businesses. So what strategies should small businesses use to properly staff their IT departments?

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Six signs of trouble in your IT department

Regardless of the type of consulting engagement, the company size or sector, executives ask me the same question: How does my information technology department compare to those in other companies?

It is easy to compare IT spending with companies of similar size or type. Every company captures this data at some level, so it's easy to share and compare this data through market-research firms.

The difficult part is determining performance and comparing it against other organizations. One reason is these metrics aren't as standardized within IT as more evolved functions of the business. Also, most companies don't do a good job at capturing these metrics. Even if they do, few share their data.

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