Delivering to our Potential

1
Delivering to our Potential

• Ian Mitchell, FNZCS

2
Our Vision isEconomic Transformation

• We want NZ to be clean, green prosperous with
  high standards of living for all.
• We want NZ to become a leader in ICT projects
  world-wide
• Tait, Navman, Rakon, MailMarshall, Peace, . . .
• But ICT is the enabler of productivity
• Innovative, adventurous, educated, smart
• Get on with it attitude.

3
Current Status

• On slippery slope downwards
• Retire House, bach, boat, 56 and 56,000pa
• Work smarter not harder
• Ideology or PC?

4
Our Cultural Attributes

• Multicultural real world
• We havent got the money well have to think
  Rutheford Nobel prize winner Nuclear
  physicist from Nelson.
• Teams Rugby is our game
• Set plays doing formal things well
• Flare Innovation and talent
• Support going with the advantage
• Cover addressing risk.

5
Our Past

• We arrived as an adventure
• We broke the country in
• We listened to pragmatic advice
• We delivered in refrigerated ships
• We can do anything with No.8 wire.

6
Our Economic Base

• We are the least corrupt country
• Our economy is efficient
• We are small and therefore Agile
• We trust other kiwis.

7
We are Educated

• 40 of farmers have a tertiary qualifications
• We are not French peasants living on EU
• We are educated my MSc cost me zilch!

8
We Communicate Well in English

• A single language for commerce is good
• As per USA British Commonwealth was smart
• We communicate well verbally
• Short sentences incomplete sentences direct
  speech
• But Asian Do you understand?
• But Indian My ideas do you agree?
• A theory that you cant explain to a bartender
  is probably no damn good. - Rutherford.

9
We reorganized our Economy

• We got a lot of it right
• Not the bit about trial employment
• We should have no company tax for small companies
• Tax-free property but tax everything else?
• Why tax my money in the bank if it is the next 3
  months salaries?

10
We can have singular goals

• Triple bottom line means
• We have 2 constraints and 1 goal
• But which is which today?
• Green policies cost where is the balance?

11
Knowledge Wave

• No credibility
• It died.

12
Skill Shortage

• See education issues
• Migrants the rules keep changing
• Not trial period allowed
• Uncertainty about qualifications
• Communication issues
• Cultural stuff but we are too PC.

13
VIF Government Funding Schemes

• Intention good Execution appalling!
• 15 months to sort out rules private funding
  locked up pending decision
• 50-50 shares risk but if the business case is
  for 100,000 it is not much harder to raise
  100,000 than 50,000 but may be too hard to
  raise that 50,000 anyway.

14
Funding Schemes

• Time of entrepreneurs to comply comes from time
  to market
• Skin in the game
• Applications 5 year projections of O/S sales
• Microsoft is going to do that
• NZ is short of capital
• We need changes in our taxation policies.

15
Ethics

• Generation-Y does not understand
• Real estate agents - done
• Lawyers TBD
• SOEs being done
• NZCS Code of Ethics
• Companies struggle with such a code.

16
Certification

• Our products cost lives and/or money
• Projects inherently beyond competency
• Inability to assess risks
• Govt s/b supporting NZCS certification
• UK, Canada, Australia
• We should be in IFIP with funding.

17
Legislation

• Broadband
• Do it! Or at least the ducting WiMax in the
  CBD.
• All govt services delivered over the web
• Update the Digital Strategy
• Nordic countries have already done it.
• Supporting Internal Use of ICT
• Depreciation and Tax changes
• RD subsidies or tax reductions.

18
Why are we short of ICT professionals?

• Drivers, Mechanics, Assembly, Designers
• MinEd took ICT out of Scholarship
• Bright kids took scholarships
• Put in with Woodwork, Cooking, etc
• Teachers even get paid less
• 6 graduate from top 16
  Bright is Good!

19
Parental Perception

• Parents see what jobs pay
• Graduates likely to come from graduate parents
  lawyers, doctors, accountants, engineers
• Education Why do it that way? Is that the best
  way?
• Training How to do it My way.

20
Salaries

• See figures quoted - 65,000
• Experienced leads in ICT 185,000-250,000
• Accountants, doctors, etc - 140,000 up
• Carpenters and plumbers 65 per hour
• Parents perceptions
• Disputes Complex work passed to inexperienced
  programmers Why?

21
Managing Gen-Y

• New challenges
• Bullying does not work
• Boring doesnt work either
• And Stupid why would I stay
• You need experience and talent!

22
Project Failures

• 70 fail DTI and PI
• 70 (gt49) fail because of change management
  issues
• Managers cant propagate the need for change
• Or dont understand why their staff know that the
  idea wont work.

23
Big Design Upfront

• In one year
• You may have a better idea
• We may have a better idea
• And the world may change
• Spike program and trial
• First-time User Usability
• SaaS.

24
Management

• In the USA 30 of managers are bullies
• In NZ?
• ICT people may be
• Brighter than you
• Know more about technology than you
• And maybe know more about the detail of your
  business than you
• Pass over the problem not the solution.

25
Detailed Thinking

• ICT projects often require detailed thinking as
  well as large scale thinking
• Few people can do both unless practiced
• Managers dont think detail
• Operational knowledge is 5 years out-of-date
• Dont think about the quiet fixes their staff do
• Tacit decisions made by old guy down the back.

26
Project Management

• Critical that many decisions be made quickly
  burn may be 1000 per day per person
• Delegate to PM
• Provide access to senior management
• Including when they are O/S, at conferences,
  negotiating, etc
• Delegate budget authority
• CPM tools often inadequate
• DTSTTCPW Make everything as simple as
  possible, but not simpler

27
Standard Operating Procedures

• SOP s are essential
• Quality must be built in
• Software can be written bug-free.

28
Tendering Process

• RFI contains strange items tender contains vague
  solutions communication nil.
• Pricing Spend 5 to estimate to /- 25
• Penalties Small NZ companies do not accept
  aggressive contracts distrust from the
  beginning
• Buy NZ we understand NZ problems
• Personal Competencies Write in the competencies.

29
Training

• Motorola 15 days pa
• Employers/Government must support international
  level seminars
• 850 per day plus lost opportunity time
• Cover the risk and lower the rate.

30
In Summary

• The ICT industry and profession have a lot to
  give to NZ
• All players must fully engage if we are seeking
  the economic transformation of NZ
• It is time to get together, gets serious and
  deliver.

31
Thank You

• Ian Mitchell, FNZCS
• Ian_at_Mitchell.co.nz
• www.Mitchell.co.nz
• www.AboutIT.co.nz