Enterprise resource planning (ERP) programs are notoriously prone to implementation difficulties. Many overrun their budgets, slip their schedules, disappoint their sponsors, or all of the above.

There is no single best practice that is appropriate for all areas of risk associated with IT. Each risk area has a number of practices that should be considered. In this Executive Update, I focus on the following three areas:

Business strategy risks

Compliance risks

Process risks

This Executive Report challenges the presumption that outsourcing IT services is inherently better than performing the same work within the corporation, and makes a case for alternatives to full or partial outsourcing. Over the past 15 or 20 years, the concept of sourcing a variety of IT services from outside vendors has developed into a major business endeavor for both supplier and end user alike.

This Executive Report challenges the presumption that outsourcing IT services is inherently better than performing the same work within the corporation, and makes a case for alternatives to full or partial outsourcing. Over the past 15 or 20 years, the concept of sourcing a variety of IT services from outside vendors has developed into a major business endeavor for both supplier and end user alike.

Why does your IT department outsource? Is it to achieve a reduced cost of IT services? Or is it to obtain best-in-class services? Does outsourcing improve the productivity and efficiency of the services you deliver? Does outsourcing increase IT's ability to help increase revenues? Does outsourcing make it easier to achieve compliance with regulatory requirements? Or is it all of the above?

Why does your IT department outsource? Is it to achieve a reduced cost of IT services? Or is it to obtain best-in-class services? Does outsourcing improve the productivity and efficiency of the services you deliver? Does outsourcing increase IT's ability to help increase revenues? Does outsourcing make it easier to achieve compliance with regulatory requirements? Or is it all of the above?

This Executive Update is the second in a series that examines information and communications technology (ICT) outsourcing and its various configuration options. The series is based on a recent Cutter Consortium survey of 73 organizations in 25 countries across the globe. 1

This Executive Update is the second in a series that examines information and communications technology (ICT) outsourcing and its various configuration options. The series is based on a recent Cutter Consortium survey of 73 organizations in 25 countries across the globe. 1

Market mechanisms

SOA is the latest in a series of vendor-driven initiatives that, by being vague about their contents and less than candid about their goals, sow confusion in our industry.

Sun Microsystems has released its operating system (Solaris 10) and Java Enterprise System (JES) under a new subscription scheme in which the customer gets the entire enterprise software stack for free, and support is charged on a per-employee-per-year basis instead of the typical per-processor-per-user model. The JES contains Sun's portal server, application server, identity server, Web server, clustering software, and some other similar products.

Sun Microsystems has released its operating system (Solaris 10) and Java Enterprise System (JES) under a new subscription scheme in which the customer gets the entire enterprise software stack for free, and support is charged on a per-employee-per-year basis instead of the typical per-processor-per-user model. The JES contains Sun's portal server, application server, identity server, Web server, clustering software, and some other similar products.

Sun Microsystems has released its operating system (Solaris 10) and Java Enterprise System (JES) under a new subscription scheme in which the customer gets the entire enterprise software stack for free, and support is charged on a per-employee-per-year basis instead of the typical per-processor-per-user model. The JES contains Sun's portal server, application server, identity server, Web server, clustering software, and some other similar products.

Business process management (BPM) is a category of software application sweating from the heat generated by the spotlight of attention. No surprise when you consider the importance of managing, refining, and reengineering the very business processes that multimillion-dollar enterprise software automates. As BPM software evolves, the best of this class of application is likely to blossom into multiple points of functionality. Stay focused on the following functional modules as the bare minimum needed to constitute BPM software that offers any real value:

Business process management (BPM) is a category of software application sweating from the heat generated by the spotlight of attention. No surprise when you consider the importance of managing, refining, and reengineering the very business processes that multimillion-dollar enterprise software automates. As BPM software evolves, the best of this class of application is likely to blossom into multiple points of functionality. Stay focused on the following functional modules as the bare minimum needed to constitute BPM software that offers any real value:

Business process management (BPM) is a category of software application sweating from the heat generated by the spotlight of attention. No surprise when you consider the importance of managing, refining, and reengineering the very business processes that multimillion-dollar enterprise software automates. As BPM software evolves, the best of this class of application is likely to blossom into multiple points of functionality. Stay focused on the following functional modules as the bare minimum needed to constitute BPM software that offers any real value:

"Time after time" goes the song by Cyndi Lauper. Scheduled time has been a pervasive theme in software development projects and, in fact, for all projects. But what time are we really talking about? What defines late? Is time the most important control measure? This Advisor will explore three distinctly different "time" perspectives: planned versus actual, elapsed, and schedule performance. Each of these places a different perspective on "time." So our song might be "time after time after time."

As I wrote several weeks ago (see "Losing Your Reputation," 27 July 2006), Airbus announced a second major delay in its delivery of the Airbus A380 super jumbo. This past week, Airbus announced yet another delay, which, to say the least, hasn't pleased its customers. Instead of delivering 25 Airbus A380s in 2007, Airbus may be lucky to deliver just 4.

As I wrote several weeks ago (see "Losing Your Reputation," 27 July 2006), Airbus announced a second major delay in its delivery of the Airbus A380 super jumbo. This past week, Airbus announced yet another delay, which, to say the least, hasn't pleased its customers. Instead of delivering 25 Airbus A380s in 2007, Airbus may be lucky to deliver just 4.

When you came to work today, did you encounter a big surprise? A reall-lly BIG surprise with a major program initiative? If not today, did it happen yesterday, or last week, or last month? Is it one that may cost significant time, effort, and money to resolve? Anyone who has worked on major IT programs for any length of time in their career has experienced, or will encounter, that inevitable day when their best-laid plans have gone awry!

When you came to work today, did you encounter a big surprise? A reall-lly BIG surprise with a major program initiative? If not today, did it happen yesterday, or last week, or last month? Is it one that may cost significant time, effort, and money to resolve? Anyone who has worked on major IT programs for any length of time in their career has experienced, or will encounter, that inevitable day when their best-laid plans have gone awry!

When you came to work today, did you encounter a big surprise? A reall-lly BIG surprise with a major program initiative? If not today, did it happen yesterday, or last week, or last month? Is it one that may cost significant time, effort, and money to resolve? Anyone who has worked on major IT programs for any length of time in their career has experienced, or will encounter, that inevitable day when their best-laid plans have gone awry!

Back in 2002, when I wrote the Executive Report "Transitioning Business Application Components to Web Services" for Cutter Consortium's Enterprise Architecture advisory service, I described service-oriented architecture (SOA) as a next big thing.

This is the first in what will be a series of Advisors on elements of working together that we can think about systematically and productively. I'm indebted to other members of the new Cutter Innovation Practice: Rob Austin, Shannon O'Donnell, and Erin Sullivan for all sorts of help.

This is the first in what will be a series of Advisors on elements of working together that we can think about systematically and productively. I'm indebted to other members of the new Cutter Innovation Practice: Rob Austin, Shannon O'Donnell, and Erin Sullivan for all sorts of help.

Over the past year, I've seen a lot in business technology discipline (or not). I spent a day at a large enterprise where they explained how they had implemented 11 ERP systems and multiple instances of them. When I got up off the floor and promised them huge savings by reducing the variation in their back-office environment, they told me that they really weren't interested in the savings because they would require too many meetings, too many arguments, and -- well -- just too much discipline.