ITIJ. Mário Valente. Jornadas Interface Software Livre na Administração Pública

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1 ITIJ Mário Valente Jornadas Interface Software Livre na Administração Pública

2 Agenda 1ª parte Dos produtos aos serviços Ubiquidade, democratização Why IT matters Open Source = Comoditização Comoditização => Outsourcing Open Source = Outsourcing Escolha estratégica de Software Livre

3 Dos produtos para os serviços Technological Enabling Factors Embedding of communications capabilities Rising of profiling Cheaper production processes Market Driven Factors Products becoming commodities Loss of differentiation capabilities Increased copycat possibilities

Cheaper production processes Market Driven Factors Products

4 Dos produtos para os serviços Key Megatrends Driving Venture Investment Key Megashifts Switching is shifting from circuits to packets. Data, then voice; Backbone, then access Transmission is shifting from electronic to photonic. First long haul, then metro, then local access Functions are moving from the enterprise to the Net. IP universal protocol/ platform of choice is the Net Offerings are moving from products to services. "Utilitization" of processing, applications, storage,... knowledge Bioscience is moving from in vitro to in silico First Genomics, then Proteomics,... nanotechnologies

First long haul, then metro, then local access Functions are moving from the enterprise to the Net.

5 Dos produtos aos serviços 'The service economy', is an economy which focuses on the optimization of the utilization (or performance) of goods and services, and thus on the management of existing wealth (goods, knowledge, nature). The economic objective of the service economy is to create the highest possible utilization value for the longest possible period of time while consuming as few material resources and as little energy as possible. Such a service economy is therefore considerably more sustainable, or de-materialized, than the present industrial economy, which is focused on production as a means of creating wealth and on the optimization of the production process in order to achieve economic growth. In contrast to the manufacturing economy, economic success in the sustainable asset management of a service economy does not come from mass production, but from good husbandry and stewardship (Giarini/Stahel, 1993).

The economic objective of the service economy is to create the highest possible utilization value for the longest possible period of time while consuming as few material resources and as little

6 Ubiquidade e Democratização

7 Why IT matters IT doesnt matter Nicholas Carr

8 Why IT matters The Google Infrastructure >200,000 commodity Linux servers; Storage capacity >5 petabytes; Indexed >8 billion web pages; Capital and operating costs at fraction of large scale commercial servers;

$operating costs at fraction of large scale$

9 Comoditização do Software What Really Matters: the Three C s The three deep trends: Commoditization of software User-Customizable systems and architectures Network-enabled enabled Collaboration

10 Comoditização do Software Software as Commodity Linux on Intel gives 10x savings Apache means web serving is not a revenue opportunity MySQL threatens to do the same for databases Open source promotes competition and drives down margins Open Unix/Linux/Internet architecture makes "plug-compatible" software the norm Proprietary alternatives must become free (as in beer) to compete - usually bundled with added value components

and drives down margins Open Unix/Linux/Internet architecture makes "plug-compatible" software the norm

11 Reasons to Consider Outsourcing Need to reduce cost Reduce capital investment Staffing constraints Desire to enhance service Response to student demand Access to technology Manage periodic service demands Facilitate organizational change Generate revenue Keep up with the competition

student demand Access to technology Manage periodic service demands

12 Basis for Evaluating the Outsourcing Vendor Reference Checks Request list of current users Request list of cancelled/former users Contact references and verify vendor performance in critical areas

13 Basis for Evaluating the Outsourcing Vendor Quality of Service Speed and convenience of delivery Accuracy and completeness Standards of professional practice Error rate/need of repeat service Service downtime Response to user-identified problems Quality of vendor communication

professional practice Error rate/need of repeat service Service

14 Basis for Evaluating Outsourcing Vendor Cost of Service the cost of providing the service through a vendor should be compared to the cost of performing the function internally. AACRAO 2001 Outsourcing Survey

vendor should be compared to the cost of performing

15 When do benefits of outsourcing outweigh risks Position on the strategic grid Development portfolio Outsource if high %age of IT staff working on maintenance or high- structured (end-products are clearly defined, static, and require no organizational change) projects High tech, highly structured is a good candidate because Requires specialized leading-edge edge technical skills Large low structured projects not good candidate because: These require high degree of coordination Design is iterative so require lots of coordination End outputs evolve as make progress on the project Organizational learning Some IT projects underway require BPE resulting in layoffs These are not good projects for outsourcing as it adds to tension

edge technical skills Large low structured projects not good candidate because: These require high degree of coordination Design is iterative so require lots of coordination End

16 When do benefits of outsourcing outweigh risks Firms position in the market Firms lagging their peers in IT architecture, IT leadership, staff skills can do a quick catch up by outsourcing Current IT organization Segregated or decentralized IT department is a good candidate for outsourcing It has fewer issues that need to be resolved with the vendor Has few integration problems Assuming in the above situations that the customer does not want to integrate the organization

decentralized IT department is a good candidate for outsourcing It has fewer issues that need to be resolved with the

17 McFARLAN S STRATEGIC GRID

18 Strategic organisations depend on IS/IT for competitive advantage and expect this to continue Turnaround organisations do not currently view IS/IT as strategic but believe it will be strategic in future Support organisations see no strategic value in IS/IT

do not currently view IS/IT as strategic but believe it will be

19 Factory organisation see IS/IT as currently strategically important but predict it will not be the case in future

20 PEPPARD s PORTFOLIO

21 Support not critical to business success e.g. accounting systems Key operational support core business activities Strategic vital for future success High potential likely to have significant impact and become strategic

22 PEPPARD s PORTFOLIO

23 Fim FIM Q&A

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