© 2013 mcgladrey llp. all rights reserved. 2013 cahec partner’s conference developing and...

© 2013 McGladrey LLP. All Rights Reserved.


2013 CAHEC Partner’s Conference

Developing And Investing In Today’s Technologies


Your Presenter

Lee Voigt- Principal; Technology

Consulting Services- National Leader; Cloud

Computing- Strategist; Prior Leader Of

Other Technology Offerings- Firm Technology Specialist

Related To Affordable Housing, Construction and Real Estate


Agenda

Topic Minutes

The Drivers Of Information Technology 5

The Critical Business & Technology Issues 10

An Overview Of Foundation Technologies 15

Introducing Emerging Technologies 20

Defining An Information Technology Strategy 15

Question And Answer 5


Objectives

By the end of this session you should: Understand the drivers behind information technology

decisions and priorities. Understand the core technology issues affecting

syndicators, investors, developers and property managers today.

Understand the foundation technologies that organizations should have in place today.

Gain an introduction to the emerging technologies that are affecting the marketplace.

Gain an understanding of the traits and functions of a successful information technology department.


The Drivers Of Information Technology


Information Technology Drivers

All of the drivers for information technology adoption can be summed up into five categories:- Portfolio Growth (Revenue)- Cost Reduction (Profit)- Improved Operational Efficiency (Leverage)- Customer Service (Retention)- Risk Mitigation (Risk)

Information technology spend and prioritization decisions should ideally be scored across these drivers.

Information technology that can’t be aligned to these initiatives should be questioned


The Critical Business And Technology Issues


Critical Issues:The Volume Of Data

Investors, developers and property managers operate in a heavy data environment.

There is a profound benefit in turning this data into insight and actionable information.

The quality of decisions is only as good as the data supporting them.


Critical Issues:The Need For Integration

This volume of data facilitates the need to reduce redundancies in or distribute its creation and entry.

Inconsistencies in data across systems is an ongoing issue.

There is a need to facilitate data flow and information sharing across business entities and internal departments.

Centralized, shared data is needed to keep these different functions in alignment.


Critical Issues:Leverage Through Operational Efficiency

Leverage is a key determiner of overall profitability or range of impact.

The greater the effective portfolio to personnel ratio, the greater the profitability or range of impact.

Improved leverage reduces the need for linear staff additions with portfolio additions.


Critical Issues:Regulatory & Business Environment

The pace of government mandated change has quickened.

The impact of an organization’s pace of change in response to the economic climate is more dramatic.

Organizations need nimble, configurable systems and processes to hasten needed change.


Critical Issues:Management Of The IT Function

Although information technology is a critical part of the business, it is not the specialization of the business.

Information technology is no longer a differentiator as much as it is a necessity.

Organizations need their information technology functions to allow them to focus on the business with faith in alignment and technology spending returns.


An Overview Of Foundation Technologies


Infrastructural vs. Application Technologies

There are two primary categories of technologies: infrastructural and applications.

Infrastructural technologies are the various networking constructs that form the “highway” for data transmission and applications delivery.

Application technologies include the programs that present data to end users for functional use.


Infrastructural Technology:Virtualization

As processing power has expanded, the utilizations of computing hardware have decreased.

Virtualization technologies allow multiple computer images to run on a single hardware box.

This consolidation provides better utilizations of processor power while reducing information technology administration and facilities costs.

Vendor Options


Infrastructural Technology:Storage

The pace with which data and electronic content is being created is staggering and exponential.

Storage has become considerably cheaper over the recent years.

Beyond the ability to store data, the ability to secure it and back it up has become crucial.

Storage area networks (SAN) simplify large scale, organization data centralization.

Vendor Options


Infrastructural Technology:Remote Connectivity

The expectations that employees have regarding their ability to work remotely continue to increase.

The need to securely control the degree of access and flow of data and content continues to increase.

The administrative burden placed upon the information technology department is greatly reduced through the adoption of appropriate technologies.

Vendor Options


Infrastructural Technology:Security & Encryption

Beyond controlling access and the security of data in transit, there are issues regarding the security of remotely replicated data.

There is a need for the information technology department to continuously ensure the security of technologies in the field.

There is a need for data and content encryption when in the field.

Vendor Options


Application Technology:Transaction Processing

Financial AppOptions:

Specialty App Options:

Transaction processing applications are at the core of business technology.

There are a number of core financial applications providing like G/L, A/P, A/R, payroll and other capabilities.

There are a number of specialty transaction processing applications for developers, investors and property managers that need to integrate with these financial applications.


Application Technology:Document Management

Beyond structured data, there are a number of documents in the typical organization that provide unstructured data.

Document management systems effectively retain these electronic documents and provide for their enhanced access, search and routing.

Beyond administering electronic documents, technologies to acquire or upload paper based content are important.

Vendor Options


Application Technology:Collaboration & Workflow

Remote organizations need to have the means to collaborate towards optimal results around all sorts of data and processes.

Operational efficiency is gained when technologies are able to facilitate the varying steps of processes around structured and unstructured content.

Vendor Options

http://www.prlog.org/11795452-microsoft-dynamics-crm.jpg


Application Technology:Corporate Business Intelligence

Vendor Options

The complete business intelligence journey transformsdata into information into action.

http://www.prlog.org/11795452-microsoft-dynamics-crm.jpg


Overall Technology:Business Continuity & Disaster Recovery

There have been an unprecedented number of events impacting business operations in recent years including hurricanes, tornados, flooding, blizzards and terrorism scenarios.

There are lesser events that can impact your business like network outages.

Plans and technologies need to be in place such that your organization can resume business operations as quickly as is necessary and or financially feasible.


Introducing Emerging Technologies


Emerging Technology:Mobility Applications

The continued build-out of networking infrastructure by cellular technology providers is fueling mobility growth.

People expect the ability to utilize their own preferred device that can also contain their personal applications and data.

From a policies and distributed administration perspective, this is a major headache for information technology departments for which no standard bearer vendor has emerged to date.

The ongoing convergence of tablet and cell phone devices generates some degree of risk in technology selection becoming sunk cost.


Emerging Technology:Self Service Business Intelligence

An extension of traditional corporate business intelligence that included reports and dashboards.

Individuals need to be able to traverse voluminous data to answer their own questions.

Possess drill down and data export capabilities as well as the ability to save searches.

Vendor Options


Emerging Technology:Unified Communications

Business and personal communications comes to us from too many (often abused) sources today:- Corporate and personal e-mail- Facebook- Twitter- Text Messaging- Voice Mail- System or End User Created Ticketing

Consolidation of this communication down to a single point of reference provides effectiveness and rapidness of response.

Vendor Options


Emerging Technology:Managed Services

Many organizations are outsourcing some or all of their information technology roles.

This is due to the need to focus on core business objectives and on technology resource scarcity.

Outsourced capabilities can include:- Business Process Outsourcing (BPO)- CIO Outsourcing- IT Administration Outsourcing- Service and Support Outsourcing

IT Planning and Management (CIO Advisory)

Application Management

Infrastructure Management

Security Management

Service Desk and Support


Emerging Technology:Cloud Computing

A seismic shift in computing mindset striving towards creating a utility model for computing.

As networking technologies become more pervasive, so will cloud computing.

Cloud computing allows for steady, operational expenditures rather than large-scale capital expenditures that must predict three-to-four year needs.


Cloud Computing Components


Cloud Computing Service Levels

Traditional IT

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

You

man

age

IaaS

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Managed by vendor

You

man

age

You

man

age

PaaS

Managed by vendor

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

SaaS

Managed by vendor

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data


The Classic IT Capacity Issue

TIME

IT C

AP

AC

ITY

Actual Load

Allocated IT-capacities

“Waste“ of capacities

“Under-supply“ of capacities

Fixed cost of IT-capacities

Load Forecast

Barrier forinnovations


Cloud Computing Capacity Model

Actual Load

Allocated IT capacities

Reduction of initial

investments

Reduction of “over-supply“

No “under-supply“

Possible reduction of IT-capacities

in case of reduced load

IT C

AP

AC

ITY

Load Forecast

TIME


On-Premise Style:

Manage It Yourself

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

Fina

ncia

ls

CRM

HARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

MigrateEcom

mer

ceHARDWARE

License

Maintain

Patch

Replace

DESKTOP OS

License

Maintain

Patch

Replace

SERVER OS

License

Maintain

Patch

Replace

DATABASE

License

Maintain

Tune

Upgrade

APPLICATION

License

Back-up

Upgrade

Migrate

Cloud Based Software:What Costs Are Below The Water Line?

CloudStyle

Suite

(ex:

Net

Suite

) HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION

Subscribe


Cloud Operational Considerations

Hardware gets old the minute you buy. On average, a cloud solution will be 30-40% lower cost

than a non-cloud solution. Cloud talent has a bigger eco-system = less reliance

on “Bob the IT guy”. Cloud operators will spend many more $ millions than

you will on R&D, security, infrastructure, compliance etc.

Cloud applications tend to provide greater starter mobility capabilities.

Cloud services tend to introduce more significant contractual considerations than hardware and license acquisition does today.


What can you move to the cloud?

Email / contact management Sales management / automation GL, AP, AR, finance and accounting File management / collaboration


Defining An Information Technology Strategy


Setting IT Department Expectations

Expectations can be defined along four categories:- Philosophy- Strategic Direction Setting- Policies & Procedures- Technology Selection & Implementation


Philosophy

The information technology function should be setup to attain velocity and nimbleness – strive for quick wins in addition to long term gains.

There should be transparency in the operations and priorities of the information technology function.

The information technology function should be your partner in devising innovative solutions.


Strategic Direction Setting

The information technology function should create strategic roadmaps that are constituent driven – “serve the customer or someone who is serving the customer”.

The information technology function is not responsible for strategic plan formulation – only its translation into technology initiatives and their subsequent implementation.

Keep in mind that the information technology department is its own department with its own strategic needs as well.


Spend Expectations

The amount of technology spend to expect needs to be reasonable towards desired results:

- The overall spend can be set up as a percentage of assets under management or revenue – generally 1-2% minimum.

- Overall spend can be set up as a ratio to devices under management (e.g. laptops, phones, etc.). Expect a ratio of approximately one staff to 60 devices for support and administration.

- Strive to spend a sufficient amount of money on growing and transforming the business – not just running it. 30-40% of IT expenditures should go to initiatives beyond “keeping the lights on” – you may need to play catch up here!


Policies & Procedures

The information technology department needs to maintain an ongoing Project Portfolio listing that is prioritized by an executive steering committee.

The information technology department needs to implement and practice project management methods expecting the executive steering committee to make triple constraint decisions.

The information technology department should designate appropriate business analyst time and partner with business units in devising and implementing technology solutions.


Technology Selection & Implementation

There are always issues separating subject matter expertise and facilitation versus ownership.

Business operational leaders and steering committees need to dictate business requirements.

The information technology function should ideally facilitate the location and selection of technology solutions to meet these needs.

The business should ultimately select the technology solutions and possess ownership of these solutions.


Overall Technology Universe

Advise Deliver Maintain

Enterprise Risk Management

Strategy and Advisory

Strategy Development Due Diligence System Selection Business Continuity and

Disaster Recovery Benchmarking/Best

Practices Project and Program

Management

Support and Administration

Help Desk Remote Support Upgrades Proof of Concept Outsourced Functionality Outsourced Roles Managed Services

ApplicationsDesign and Implementation

Financial Applications Relationship Management

Business Analytics Corporate Performance

Management Systems Integration Knowledge Management,

Portals and Collaboration

Business Performance Improvement

InfrastructureDesign and Implementation

Network Design and Implementation (LAN/WAN)

Carrier Assessment/TEM Server Virtualization Storage and Recovery Desktop/Application Delivery Unified Communications and

Mobile Computing

Cloud SolutionsSoftware as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS)


Question And Answer


McGladrey LLP is the U.S. member of the RSM International (“RSMI”) network of independent accounting, tax and consulting firms. The member firms of RSMI collaborate to provide services to global clients, but are separate and distinct legal entities which cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party.

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© 2013 mcgladrey llp. all rights reserved. 2013 cahec partner’s conference developing and...

Documents

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core technology issues

actionable information

critical issues

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