Fractional CIO Services: A Strategic Guide

Navigating the complexities of IT strategy is daunting for any business, especially for those without a dedicated CIO. Fractional CIO services bridge this gap, offering small to medium-sized businesses the expertise and strategic direction necessary to excel technologically without incurring the expense of a full-time position. At Beyond Technology we believe in an agnostic & transparent approach, to this end we’ve layed out how such services can sharpen your competitive edge, aligning IT with your core business objectives effectively.

Fractional CIO Key Takeaways

  • Fractional CIO services provide medium-sized businesses, typically with 100+ FTE’s with strategic IT leadership and expertise at a lower cost than a full-time CIO, enabling them to stay competitive and adapt to market changes.
  • Hiring a fractional CIO offers benefits such as cost optimisation on operational expenses, IT strategy expertise to align technology to business requirements, providing technical governance and an external perspective that can help reduce risk and enhance efficiency in IT operations.
  • The success of engaging a fractional CIO hinges on selecting the right partner with industry experience, strategic vision, strong communication skills, and a track record of aligning technology with business objectives.

The Role and Impact of Fractional CIO Services

Fraction CIO Service

Fractional CIOs do more than just manage a company’s technology strategy. They are pivotal in:

  • Focusing on data security and cyber risks
  • Optimizing IT systems
  • Fostering innovation and growth
  • Synchronizing the company’s IT infrastructure with broader business objectives

These skills, stemming from business expertise, deep technical understanding, and industry experience, prove invaluable in addressing business challenges and making strategic technology investments, boosting competitiveness and adaptability in a fluctuating market.

Fractional CIO services, also known as fractional chief information officer services, offer a cost-effective, flexible solution for medium-sized businesses that need strategic IT leadership but may not have the resources for a full-time CIO. Businesses gain access to specialized skills and industry insights brought in by a fractional or interim CIO, who stays abreast with current IT trends, best practices and practical experience due to their work with multiple clients across various sectors.

The transformative influence of a fractional CIO becomes evident in how they:

  • Weave technology into business strategies
  • Build a robust IT governance framework that bolsters business expansion
  • Provide an unbiased perspective, bridging the gap between technology and business
  • Ultimately drive organizations forward in the digital age.

The Growing Demand for Fractional CIOs

The rising demand for fractional CIOs is propelled by several significant factors, such as the very tight skills market and ongoing budgetary constraints. Companies that cannot afford a full-time executive can leverage the strategic guidance of a fractional CIO at a lower cost, making it a viable solution. This is particularly beneficial for startups and growing businesses, which can establish efficient technology infrastructure on limited budgets.

A further impetus for the increasing demand is the expanding skills gap in the realm of IT expertise. As reported by the Global Knowledge IT Skills and Salary Report, there is an increased need for fractional CIOs to fill these specialized roles. They offer strategic IT vision, technology navigation, and team coaching on a part-time basis, aligning with leadership and providing an IT roadmap tailored to the company’s resources.

Furthermore, the dynamic business environment necessitates the ability to rapidly adapt technology roadmaps to evolving business needs and market conditions. This ability to leverage technology for business growth and respond to regulatory changes fuels the demand for fractional CIOs.

Key Benefits of Hiring a Fractional CIO

A Fractional CIO offer cost-effectiveness by providing access to top-tier executive expertise without the full-time expense, leading to significant operational cost savings. This is particularly advantageous for growing businesses needing to stay competitive in the tech-driven market.

An additional significant advantage is the specialized expertise that fractional CIOs contribute. Companies can fill IT skills gaps when they hire a fractional CIO, gaining access to deep industry knowledge and cutting-edge insights. This specialized expertise allows companies to stay flexible and agile in their IT strategy, with services that can easily scale to match current business needs.

Thanks to their wide-ranging experience, a fractional CIO can aid in reducing risk and enhancing efficiency within IT operations. They also offer a fresh, outside perspective on technology strategies, free from the potential bias and politics of internal decision-making.

View our Fractional CIO Subscription Services.

Enhancing Business Processes Through Fractional CIO Services

Fractional CIOs can play a crucial role in refining business processes. Mapping existing workflows, identify core problems, and restructure and digitize workflows results in improved performance, reduced errors, and cost savings. They also leverage tech trends to drive business and technology transformation, guiding migrations to cloud environments.

In this age of decision-making guided by data, fractional CIOs take on a pivotal role in prioritising the automation of data collection and entry. This not only improves the accuracy of data but also facilitates insight-driven planning, enhancing decision-making and operational efficiency.

Furthermore, fractional CIOs will provide strategic technology leadership, offering guidance on IT budget and costs, program management, and business process reengineering. This helps to streamline operations and drive cost-effective project completions.

Selecting the Right Fractional CIO for Your Business

Choosing the appropriate fractional CIO for your business is vital for its enduring success. A prospective fractional CIO must possess deep relevant experience and technical knowledge. They must be capable of contributing immediately to the company through strategic planning and risk management. A fractional CIO’s role extends beyond addressing technical needs. They must also align IT strategy with long-term business goals, providing strategic visioning and leadership in IT. At Beyond Technology, we have optimised the approach to matching the right Fractional CIO to your business.

Effective communication and an adept problem-solving approach are critical for a fractional CIO. They need to frequently interact with the leadership and tackle complex IT challenges. Therefore, excellent communication skills are a must.

Finally, when selecting a CIO, we at Beyond Technolgoy take into account the following factors:

  • Their industry experience and expertise
  • Their ability to understand and align with your company’s strategic tech decisions
  • Their track record of success in implementing and managing technology solutions
  • Their flexibility and adaptability to changing business needs
  • Their trustworthiness and integrity

Evaluating these factors will help you select a CIO who is qualified and aligned with your company’s needs.

Case Studies: Success Stories of Fractional CIO Engagements

Beyond Technology, which has a proven track record in successfully delivering impactful Fractional CIO’s and executing effective IT strategies, including technology initiatives. We can assist in enabling within your business the power of fractional CIO services in driving business growth and leveraging technology systems across a range of industries.

Preparing Your Organization for a Fractional CIO

Preparation is paramount when incorporating a fractional CIO into your organization. We start by defining specific needs and goals to identify areas where their expertise is needed. This could include assessing current technology, identifying gaps, and areas of potential technology growth.

Subsequently, delineate the roles, objectives, and responsibilities for the fractional CIO. Establishing clear expectations and maintaining regular communication will ensure their alignment with the organization’s vision. It’s also important to understand the optimal timing for bringing on a fractional CIO, aligning it with the organization’s:

  • budgetary constraints
  • growth opportunities
  • skills gaps
  • security concerns

Finally, together we furnish the fractional CIO with the necessary resources, including company information and tools. This is essential for enabling them to fulfill their responsibilities and perform effectively.

Summary

As businesses navigate the constantly evolving digital landscape, fractional CIO services have emerged as a strategic solution to leverage technology effectively. They provide cost-effective, flexible solutions, aligning IT infrastructure with business goals, and driving innovative growth. Whether you’re a startup or a medium-sized growth business, fractional CIOs can provide the specialized expertise needed to stay competitive.

Selecting the right fractional CIO and building a strong relationship is crucial for the success of your IT strategy. As with any role, there are challenges to overcome, but with the right strategies, you can mitigate these issues and leverage the expertise of a fractional CIO to drive your business forward. To find out more about how Beyond Technology can assist with enabling your business with a Fractional CIO

Frequently Asked Questions

What is CIO services?

CIO services refer to the provision of strategic IT leadership to align technology with business objectives, helping organizations maximize their technology investments and have effective technical governance. Hiring a CIO as a Service can provide the necessary IT leadership for any organization.

What are fractional CIO services?

Fractional CIO services are part-time or interim chief information officer services, allowing businesses to benefit from an experienced professional’s expertise without the expense of a full-time role. This provides startup or medium-sized growth businesses the opportunity to access the capabilities of a CIO without the need for a full-time executive.

What is the role of a fractional CIO?

A fractional CIO plays a crucial role in managing a company’s technology strategy, focusing on data security, IT systems, innovation, and growth. They also ensure effective technical governance and alignment between IT and business objectives.

Why is the demand for fractional CIOs growing?

The demand for fractional CIOs is growing due to the growing skills war and ongoing budgetary constraints, the need for specialized IT expertise, and the ability to rapidly adapt technology roadmaps to evolving business needs and market conditions.

Top Ten for 2024 and Beyond

With the start of a new year comes an opportunity to think about what opportunities that technology could bring organisations over the coming 12 months. With generative AI seeming to hit the headlines as much as the per capita recession, I have increasingly been thinking of the year ahead in terms of prioritization. Opportunities for technology to truly transform thinking, markets, and your business are endless – but our ability to fund, consume and manage the required change is the challenge we face.  

In thinking of the year ahead, the BTC Team has identified key IT trends and technology challenges that we feel our clients will be facing next year. As independent IT management consultants, we not only see a variety of different industries suffering the same issues, but it’s our job to help you identify and form the solutions. Please feel free to contact us at any time to discuss how Beyond Technology can help your organisation with independent actionable advice that is free from conflict of interest.

Of course Generative AI has to top the list for 2024, with the technology industry increasing its billions of dollars of investment on a daily basis, the future opportunity for business will be as transformative as the industrial revolution. The challenge for 2024 is going to be to build the foundational infrastructure and optimise your IT function to be ready to be a proactive partner of the business in the deployment of AI and digital capabilities. Moving forward IT planning should have one eye focused on being ready, and the other on reducing technical debt to improve operational resilience and agility. Undoubtably each of this years top ten will have some component that will link back to AI readiness.

1.  Carrier diversity and operational/cyber resilience no one ever learns without making mistakes, unless they can learn from others. Optus in recent years has been exceedingly generous with its learning moments and the analysis of what went wrong in their recent catastrophic network failure has been a very useful moment for boards and executives across all organisations. Many company’s have already deployed dual-SIM mobiles for their emergency response teams and true carrier diverse SD-WANs is looking like the go-to architecture for 2024.

2.  Digital Supply Chain risk assessment and management has become a regular topic in most board discussions. With the majority of the big publicised data breaches being initiated through an outside channel, everyone has recognised that your people and your partners can be there undefended weak link in their cyber defence. 3rd party audit rights, attestations and mandatory assessments have become a common response and we can expect this trend to intensify in 2024.

3.   Strategic Cost optimisation & Frugal Cloud Architectures – As interest rate and inflation pressures continue to bite business through 2024, the expectation that the rate of IT budget growth will reduce should be considered. Organisations should seek to leverage cost optimisation opportunities while maintaining the push for resilience, security and agility improvements in a appropriately frugal manner 

4.   Data & Analytic transformations – As organisations have continued to digitise and collect more business data, both the opportunity and the risk has steadily increase. While most organisations now understand the risk of storing everything for ever, the growing capabilities of AI engines in analytics have doubled the need for deliberate planning on your data & analytics transformation journey.

5.  AI, Privacy and Cyber Governance Policy – As businesses seek to exploit growing AI opportunities the requirement for staff to undertake Structured Experimentation will require both planning and risk mitigation strategies. The need to consider your technical and control policies across your technology environment will also become increasingly critical with the new privacy regulations and cyber security obligations expected in 2024.

6.  FinOps is the framework that connects the business to the spending priority on IT capabilities and provides a path for governance and accountability with continuous and iterative practices. With the cloud procurement practices of IT teams often be compared to moving from buying beer by the bottle (on-premises procurement) to the installation of a Tap directly into the bedroom of an alcoholic, it is not surprising that cost control and purchase decision governance is a big topic for 2024.

7.  AI, Privacy and Cyber Governance Policy As businesses seek to exploit growing AI opportunities the requirement for staff to undertake Structured Experimentation will require both planning and risk mitigation strategies. The need to consider your technical and control policies across your technology environment will also become increasingly critical with the new privacy regulations and cyber security obligations expected in 2024.

8.   3G shutdown and Windows 10 EOL– although some may feel like the impending 3G shutdown might feel like the Y2K bug of last century, for some industries it poses a very real danger. It is not so much a concern identifying 3G only devices, but ensuring that older 4G devices supporting machine to machine communication that are deployed in remote locations are able to operate on the frequency bands that have coverage at those locations.  Planning for the scheduled Windows 10 EOL should be nearing completion and 2024 should be used for the migration or retirement of those devices.

9.  Priority Planning, deciding what not to do is often just as important on identifying the opportunity landscape. The more that the IT function properly engages with the business the truly limitless appetite for more information, more automation and improved capabilities is increasingly uncovered demonstrating the insatiable demand the business has. Maintaining focus and prioritisation is critical to success in delivering your improvement and remediation projects.

10.  Improved technical governance and further increased board-level oversight of IT operations – The importance of secure, reliable and efficient IT to support the competitiveness of businesses will continue to be a focal point for many boards. Data custody has become an increasing concern as increasingly complex supply chain and IT environments threaten to affect the “line of sight” of organisations to its information. Boards will continue to ask questions on their risk levels for data integrity, information protection and privacy compliance. We expect many more organisations will opt for Independent external review to provide appropriate oversight directly to the board.

Navigating Business Challenges Through Strategic IT Assessments

Organisations, whether they are small businesses or large corporations, are always up against new challenges in the quickly changing business environment. These difficulties include risk management, operational efficiency, and technological advances. Performing Strategic IT Assessments is an essential first step in getting past these obstacles. Beyond Technology provides specialised methods with its IT Rapid Assessments and Independent IT Strategy Assessment, made to fit the particular requirements of every organisation.

The Importance of Strategic IT Assessments

IT systems are the foundation of every business operation in the modern digital era. But over time, these systems may become antiquated or out of step with corporate objectives. To find out how well your current IT infrastructure supports your business objectives, you need to conduct strategic IT assessments. They point out inefficiencies, risks, and areas that could use improvement. Businesses can make sure they are not just surviving but thriving in their respective markets by ensuring alignment of IT capabilities with business strategies.

Our Method for Rapid Assessments

Beyond Technology’s Rapid IT Assessments are a great option for companies looking for a quick and efficient way to analyse their IT environment. These evaluations aim to provide quick insights into the most important components of your IT infrastructure. Beyond Technology assists businesses in prioritising and addressing the most pressing IT challenges by concentrating on key performance indicators and quickly detecting possible problems. For organisations that need quick feedback to make well-informed decisions, this service is ideal.

The Depth of Independent IT Strategic Assessments

When it comes to a thorough and unbiased evaluation of IT systems, Beyond Technology’s Independent IT Strategic Assessments are unparalleled. These assessments offer a comprehensive review of your entire IT landscape, from infrastructure and security to software and service delivery. By maintaining an independent stance, Beyond Technology ensures that the advice provided is free from vendor biases and solely focused on optimising your business’s IT performance. This in-depth analysis helps in crafting strategic plans that are not only technologically sound but also aligned with business goals.

Tailoring to Diverse Business Sizes

Beyond Technology’s services are scalable and flexible because it recognises that every organisation has different needs and challenges. Beyond Technology’s methodology is adaptable enough to offer insightful information to any size organisation, be it a large corporation with intricate IT systems or a smaller one with little IT resources. Their team of specialists delivers solutions that are transformative and useful by utilising extensive experience in a variety of industries.

 IT Assessment Case Studies

Media Industry Transformation

In one case, a media company hired Beyond Technology to strategically evaluate its IT capabilities and technology divisions in order to realign the cost base of its business. It was suggested by Beyond Technology to reorganise these departments into an integrated technology services team. This reorganisation led to more productive work teams that more effectively met improved service level agreements. It also brought about the adoption of advanced remote management tools and procedures that were more in line with business requirements. As a result, a sizeable 25% cost reduction was accomplished right away, eventually amounting to 30% of the prior budget for IT operations.

IT Service Delivery in Education

Another strong example concerned a regional school with unique challenges in providing IT services. These obstacles included increased running costs, inadequate communications infrastructure, and trouble hiring and keeping qualified employees. A thorough remediation plan was presented by Beyond Technology, encompassing a prioritised roadmap for resolving infrastructure problems, selective outsourcing, and team reorganisation. By re-engaging IT with organisational stakeholders and addressing the immediate issues, this strategic approach laid the foundation for long-term improvement.

Actionable Outcomes

Giving pragmatic advice is the ultimate aim of Beyond Technology’s IT assessments. In contrast to conventional reports, which frequently wind up collecting dust on shelves, the focus is on providing useful suggestions that can be put into action. This method guarantees that companies have a clear plan for utilising technology to increase success in addition to understanding their IT strengths and weaknesses.

IT assessments are vital because navigating the complicated world of IT in business demands a strategic approach. Beyond Technology is a shining example for companies looking to maximise the potential of their IT infrastructure thanks to its customised Rapid and Independent Assessments. Their proficiency in managing a range of business sizes and dedication to practical results make them an invaluable partner.

Learn more about Beyond Technology’s Independent IT Assessments and help you navigate your unique IT challenges for your business.

Are Cyber Security self assessments useful?

In the world of cyber defences, our government often talks up self-assessment tools to be part of the community’s cyber security solution. I am often asked by boards and executives “Are they useful?”, and of course the answer is “well, it depends on what you are using it for”. Self-assessment tools are obviously flawed for any sort of governance objective, however clearly any thought given by your CIO or IT manager to understanding their circumstances and defences is better than none at all. Independent expert assessments, audits or health checks are always going to be the better choice as they don’t suffer from the key dangers of self-assessment processes. A false sense of security that is given by an inaccurate self-assessment is often more dangerous than no assessment at all. We have reviewed countless self-assessment reports, that not only paint a rosier picture than reality, but also hides a complete misunderstanding of the goals and objectives of required security controls.  

Often a more important question for executives responsible for cyber resilience and security governance is not about the importance of independence, but the difference between a “Review” and an “Audit”.

So how does an Independent Cyber Security Review and an Independent Cyber Security Audit differ? This can generally be found in the intent and therefore the focus of the advice and recommendation that should be part of the deliverable. Audits will often target testing controls and confirming compliance, whereas Reviews will similarly consider controls & capabilities but will focus on the gap analysis of these capabilities to the business’ requirements, and the opportunity assessment for improvement. Cyber security is a constantly moving target, and to win the arms race you need “actionable advice” on where to focus improvement efforts not just a list of controls that are not effective.

As Beyond Technology is Australia’s leading Independent bespoke mid-tier technology advisory, we provide both independent Review and Audit services and will often combine a review and audit process to produce a hybrid outcome that benchmarks capabilities and confirms governance, while providing “actionable advice” on your improvement roadmap. If you know of an organisation that need assistance with independent cyber assessments or audit – then let them know that Beyond Technology can help.

Network Outages and Single Points of Failure

The recent Optus outage has been a stark reminder to many boards and executives of the importance of understanding your cyber resilience. In our increasingly digital environment, a network outage caused by a technical failure or a malicious cyber event can cripple businesses and let customers down. Knowing your technical single points of failures and deliberately planning to eliminate them, or knowing the workaround ahead of time should be standard in any business. As many of our clients can attest to, understanding your carrier network architecture and the use of appropriate levels of technology and carrier diversity  is critical in todays software defined and NBN based wide area networks.

As a leading independent technology advisory, Beyond Technology is ideally placed to help organisations gain a clear understanding on their technology weak points by undertaking a Cyber Resilience Assessment. Armed with this knowledge that is free from bias and conflicts of interest, your organisation can then develop its Cyber Resilience Strategy and Action plan to mitigate failure risk of your business critical digital systems.

For those organisations that directly felt the pain of the Optus outage, and those who felt lucky to have been reliant on a different carrier – Now is the time to act. Don’t wait for the inevitable next major event to occur or expect regulators to step in and magically make carrier and technology services fail-proof. Get expert assistance to know your vulnerabilities and plan to avoid critical business impacts. Customers have a right to feel let down by Optus, but not knowing or planning for your single point technical and supplier vulnerabilities is something that you have control over.

If you know of an organisation that need assistance with a Cyber Resilience Assessment or Response planning – then let them know that Beyond Technology can help.

Network Transformation Planning

As Beyond Technology nears the end of a very large (700+ site) network transformation program, I have taken time to look back and consider why the program has been so successful and how we have been able to assist our client to materially change their digital agility and readiness for ongoing business productivity improvements.

An organisations network is foundational, when it is poorly performing its almost impossible for the IT function to build or maintain credibility with the business. When the architecture is legacy, or the operational strategy is non-ideal, the IT function can’t respond quickly enough to the business, is constantly on the back foot with regards to security, and never have the budget or time to be proactive in delivering improved capabilities to the business.

When your Network, Telecommunications and operational strategies are aligned with the digital aspirations of the business – you have a highly performant, scalable, reliable, efficient, secure and cost effective foundation to build your broader digital business evolution. 

The telecommunication landscape and contemporary network architectures is fundamentally different to where it was just 5 years ago.  The fundamental evolution of the industry through the NBN build, Covid impacts and the global cyber security degradation has left technology leaders without lived experience to assist in the navigation of the transformation objectives. Both carriers and network vendors are struggling with the shifting dynamics of the market and clients are finding that they have a limited window to decide on the optimal transformation approach and how to get the most out of their budget.

We have found that our experience and expertise has provided our clients the air cover that they need to shift their focus from the weeds of the network transformation, to the truly unique value add opportunities in their business. Having the confidence that the network transformation program will deliver them the correct balance of cost/risk/performance/agility has provided the opportunity to engage with the business on specific and impactful digital transformation projects that rely on the solid network infrastructure foundation.

The network transformation agenda needs to reduce operational complexity (more people managing the network is not an option), improve reliability (24*7 high avaliability is always mandatory), improve performance (bandwidth requirements keep growing and network destinations keep changing), improve security (network threats grow every hour), and reduce/avoid costs (do more with less, rinse and repeat).

Advice needs to be trusted, vendor agnostic and independent. Unfortunately conflicts of interest are rife in the technology industry. Sometimes these are obvious (its no surprise when your managed service partner only recommends a technology that they support) and sometime not so obvious (when advice is effected by secret commissions or just technical bias).

If you know of an organisation that is having its telecommunications contracts up for renewal in the next 12 months, considering the lifecycle replacement of network infrastructure, or is looking towards a digital business transformation agenda – then let them know that Beyond Technology can help.

Technical Debt

Technical Debt was a phrase originally used in software development to describe the cost of additional rework caused by choosing an easy (limited) solution now instead of using a better approach that would take longer. It has since become the common term to describe the same problem more broadly across the entire IT function.

Technical debt is often incurred through standard technology operations and projects through small decisions that seek to defer cost or effort and is largely invisible to the business until an appearingly small change in the business requirements causes an unexpected large project cost or delay.

It is considered best practice for organisations to maintain a technical debt register as well as have actively maintained lifecycle management plans for legacy systems and infrastructure, however this is not common.

Technology Lessons from 2020


As the weather warms up across Australia, summer starts to remind us of simpler time in a pre-COVID era when we were only worried about the massive bushfires. Although some are still looking forward to life getting back to normal, within the technology industry we are keenly aware and familiar with the “new normal”. Most medical experts are agreed that the great hope of an effective COVID-19 vaccine is a multi-year process and that prudence and logistics mean it will be distributed slowly. While we hope a vaccine will provide a significant reduction in the risks posed by the virus, it will not be a panacea that eliminates COVID-19 from our lives overnight. So the many work place changes that have been facilitated by digital transformations and technologies will remain part of our world and people will not be falling straight back into old habits and practices.

As we focus on revising our technology strategies and roadmaps, it is useful to understand the lessons from the crisis and adjust our approach to support the future.

An Unplanned Environment

Most organisations had only considered the local implications of the “Pandemic Response” heading in their DR template and typically assumed they needed to cover only a short period. Although it seems obvious today, the idea that a pandemic by definition is global, and would last for an extended period was difficult to fully appreciate. Mandatory nationwide stay at home lockdowns, enforced quarantine, state boarder closures, international supply chain problems, curfews and even the concept of stopping international travel were difficult to consider in scenario planning prior to 2020 but will obviously feature heavily in the future.

Many carefully developed security plans and policies were not ready for the CEO to say “just open it up, we have no option other than make it work”. It is no real secret that tens of thousands of businesses all around Australia threw the rule book out the window to make things work during lockdown. The major concern is how few have effectively remediated those security holes since then. It often seems that the past lessons, such as from NAB have not been internalised well enough across all levels of IT departments. The Board and CEO “need to know” about cybersecurity issues and risks must be explicitly catalogued and reported. IT leaders also need to make sure that they are actively identifying and raising risks even when they don’t have a solution or the resources to comprehensively deal with them.

Information Security is rapidly becoming the number one avoidable cause of business ending events. Cyber-criminal syndicates have proved again how digitally agile they are with some very effective Ransomware as a Service with Profit Share (RWaaS-PS) campaigns targeting disgruntled and financially distressed workers with elevated security privileges given to avoid difficulties during work-from-home (WFH). This, along with the traditional “executive (CEO/CFO) authorised funds transfers” scam now using a combined forged email and deep-fake voice mail has been devastatingly effective in some areas during lockdown.


As the weather warms up across Australia, summer starts to remind us of simpler time in a pre-COVID era when we were only worried about the massive bushfires. Although some are still looking forward to life getting back to normal, within the technology industry we are keenly aware and familiar with the “new normal”. Most medical experts are agreed that the great hope of an effective COVID-19 vaccine is a multi-year process and that prudence and logistics mean it will be distributed slowly. While we hope a vaccine will provide a significant reduction in the risks posed by the virus, it will not be a panacea that eliminates COVID-19 from our lives overnight. So the many work place changes that have been facilitated by digital transformations and technologies will remain part of our world and people will not be falling straight back into old habits and practices.

As we focus on revising our technology strategies and roadmaps, it is useful to understand the lessons from the crisis and adjust our approach to support the future.

An Unplanned Environment

Most organisations had only considered the local implications of the “Pandemic Response” heading in their DR template and typically assumed they needed to cover only a short period. Although it seems obvious today, the idea that a pandemic by definition is global, and would last for an extended period was difficult to fully appreciate. Mandatory nationwide stay at home lockdowns, enforced quarantine, state boarder closures, international supply chain problems, curfews and even the concept of stopping international travel were difficult to consider in scenario planning prior to 2020 but will obviously feature heavily in the future.

Many carefully developed security plans and policies were not ready for the CEO to say “just open it up, we have no option other than make it work”. It is no real secret that tens of thousands of businesses all around Australia threw the rule book out the window to make things work during lockdown. The major concern is how few have effectively remediated those security holes since then. It often seems that the past lessons, such as from NAB have not been internalised well enough across all levels of IT departments. The Board and CEO “need to know” about cybersecurity issues and risks must be explicitly catalogued and reported. IT leaders also need to make sure that they are actively identifying and raising risks even when they don’t have a solution or the resources to comprehensively deal with them.

Information Security is rapidly becoming the number one avoidable cause of business ending events. Cyber-criminal syndicates have proved again how digitally agile they are with some very effective Ransomware as a Service with Profit Share (RWaaS-PS) campaigns targeting disgruntled and financially distressed workers with elevated security privileges given to avoid difficulties during work-from-home (WFH). This, along with the traditional “executive (CEO/CFO) authorised funds transfers” scam now using a combined forged email and deep-fake voice mail has been devastatingly effective in some areas during lockdown.

Sustainable Workplaces

We have also surprisingly noticed that users are much more adaptable that we previously gave them credit, whether it was the Queen having her first Zoom call, or Grandma having a telehealth consult with her GP and having a digital prescription filled.  Technology has been an enabler across the community and our users have never been more receptive to digital change. Legal departments that had provided nothing but problems with digital signature projects waved them through with encouraging comments, and “do nothing different Mary” from accounts became a digital champion explaining to others how to change video meeting virtual backgrounds.  Often the IT crew have developed a level of goodwill in the business for enablement that can be exploited to deliver permanent productivity gain. This unfortunately has often been in stark contrast to the lack of credibility that IT leadership has enjoyed within the broader executive team, as planning and capability failures have been multiplied by large expectation gaps. The crisis often proved how well IT can be reactive, but similarly proved in many cases how they lack effective pro-active management discipline and planning skills.

Some organization are formalizing a “work from anywhere” future, with others focused on returning to the office (RTO). We expect that especially for CBD-based knowledge workers, mandated office-based work will face strong headwinds, with workers demanding to maintain much of the flexibility afforded to them during the crisis. Our recommendation is that IT anticipate hybrid environments, with between 40 and 60% of hours worked from home becoming the norm in many organizations.

Although the move from office to WFH was hard, the move from WFH to the new normal hybrid WFH&O is more complex, as it need to deal with both environments in a permanent manner. While an incremental improvement in capability post-migration to WFH was acceptable, RTO needs to be fully functional on day 1. Similarly, where we cut corners to rapidly build capability for WFH due to everything being temporary and mandatory, these compromises are not acceptable when they are more permanent and not being externally forced. Where we may have got away with taking our office monitor home and balancing it on the ironing board as a temporary WFH solution, we cannot expect workers to carry equipment back and forward in a hybrid scenario. OH&S concerns might have been largely ignored during the health crisis due to the required rapid response but ironing board based workplace design won’t cut it any longer. During work from home, rostering or time and attendance systems were often not a focus but moving forward requires permanent solutions.

Anecdotal evidence on worker productivity during lockdown is very mixed; some reported significant gains driven by the use of commute hours for additional work, while others saw burnout issues caused by perceived 7*24 availability. Some organisations found that online meetings were more focussed while others reported that more detailed analysis was lost. IT leaders need to be cognisant that technology is the enabler of productivity and not the driver, partnering with the rest of the business to find out what is the priority and delivering that that should be the focus.

There is no doubt in my mind that the “free pass” afforded by users with regards to performance, functionality and reliability issues during the early stage of the crisis will evaporate completely, and we will be left with a permanent requirement to deliver appropriate service levels in a non-deterministic environment.

The Network is Everything

The undoubted hero of the crisis has been the Internet, fortuitously in the year that the NBN build “completed” and delivered an effective and usable broadband speed to the vast majority of metropolitan Australians, we have relied on home internet connections like never before. However, network engineering teams across the country are likely to exit the year with much less hair than they started it with, and with a number of learnings and adjusted priorities for the years ahead.

Carrier choice matters: While the rapid lock down and WFH transition was occurring, carriers saw network traffic patterns change enormously with peak evening demand and business hours peaks hitting record levels on a daily basis. One of the top four carriers decided that the appropriate response to the massive traffic growth was a network change embargo, cementing congestion and packet loss for the duration of the lockdown! Whether it is the internet into head office, mobile 4G/5G internet hotspots from your phone, or the NBN connection to the users home – the ability to compare bandwidth quality of a best-efforts service such as the internet is incredibly difficult but vitally important, and unfortunately price is often not a good measure of quality.

Consumer-grade is not business-grade; NBN upgrades and outages that were timed to avoid the Netflix peaks hit WFH users during their business day. Unplanned outages on consumer services can last 3 days, and consumer routers that fail over to 4G modems are not seamless, often causing an ongoing string of 5 minute outages as they fade in and out of service based around a very simplistic view of network availability. A deliberate effort by IT to design solutions for these issues proved highly effective for organisations that had the capability.

Traditional network SLA’s focused on MPLS grade networks are meaningless when staff are working from home. Many organisations were already transitioning towards SD-WAN or SASE architectures, however the crisis has prioritised and expedited the requirements for significant network transformation projects. Rather than relying on the crutch of supposably “reliable network links” we must architect solutions that provide the performance and reliability needed using best effort grade network links. This is possible, however it requires a diligent and informed planning approach to a significant network transformation program.

Resilient People

Organisations were often able to identify the critical IT resources during the early crisis response. When they saw that one or two IT staff seemed to be the centre of everything, they celebrated their dedication and heroics when 18-hour days were stacked end to end. However, we should examine our teams’ operational balance and knowledge distribution to identify resource choke points and single points of failure to plan for more sustainable and resilient operations in the future.

Training has never been so important – new processes and new technology requires new skills – and while team-based self-support models have often worked well through the crisis period, they have worked better when IT has effectively communicated and deliberately cascaded knowledge. We should be ensuring that we look at what worked, and what can be improved so that support models in the future can improve and embed new skills across the organisation. IT deskside support (physical presence) has been a reducing trend over recent years, however organisations that retained this capability to a limited degree were much better placed during the transition to WFH. The logistics of supporting an extensive work from home capability in a permanent form will require further consideration for many organisations. We recommend that HR be involved in these discussions to ensure technical and human requirements are balanced and expectations managed.

Future Vision

Some IT leaders and CIOs are taking the view that their “IT strategy is so well thought through that it doesn’t need to change” as its already focused on the flexibility and future architecture principles required. However this appears in most instances to be naïve; we believe it is fanciful to ignore the significant changes that have occurred in the business environment. Although it’s possible that the technology vision is still appropriate, the priority and velocity of the initiatives to get there will almost certainly have to be adjusted to support the business. Assumptions should be reviewed and priorities and velocity recast to deliver within the revised resource and capital envelope available. Whether due to the governments depreciation stimulus or simple business imperative, this may be an increased velocity of delivery for initiatives supporting cost savings or revenue generation.

Conclusion

2020 is the inflection year for many technology departments. Everyone should revisit strategy plans and many will need to rapidly review security risk and network transformation programs. Technology departments will be entering 2021 with a broader appreciation of the critical role they play.  IT successfully rising to the challenge of unexpected business requirements and changed expectations with considered strategic plans and deliberate responses will be a determining factor in their organisations’ overall success. It is simply not an option to wait and see what happens and unfortunately some technology leaders will not be able to meet this challenge. Technology disruption next year is unlikely to be any less than in 2020, however we can all work toward ensuring that it is more planned and deliberate.

Can adversity drive innovation?


What has become clear in the last few days is that things that we had previously though was impossible, are actually happening. Who would have thought 10 days ago that Australia would shut down its international boarders and seek to significantly restrict movements between states. The new normal for the world is the basis for innovation – consider what you though you knew to be a fact, it is often just a constraint of thinking. But how does this affect technology planning and strategy?

When we look at the short term we are often finding that assumptions around response planning has been unable to predict the impacts of this crisis. Digital supply chains are failing and we are needing to revisit the assumptions made for our existing plans. Directions by IT for staff to go down to Officeworks to pick up a screen and keyboard for your new work from home environment are being replaced with come to the office and take your monitor home as staff report that the shelves are bare at suppliers. Hotspot your laptop to your work mobile has been replaced with order a NBN service as network congestions hits mobile networks. Record highs reported by telco’s for voice traffic is changing our assumption about the role voice services play in these scenarios.

In the medium term we need to understand how the new work practices are changing assumptions that we made about collaboration and collaborative systems. We are seeing that the requirements of systems that supported face to face meetings are quite different from those that replace face to face activity. Systems that provide effective video collaboration between two people are not the same as those that can support effective communication between 15 people. Slack, Webex, Teams and Zoom may have previously looked like they were all solving similar problems, are being proven to be different on a regular basis.

Where some cloud providers have been able to keep ahead of the growth curve, others have not. When your scenario planning has now fallen down on assumptions that have proved inaccurate, it is vital to quickly identify the problem, and make a decision to remediate. The challenge is to make sure that these decision are based on knowledge and fact, rather than pivoting away from a poorly performing service to a completely failing one. Independent and experienced advice is key.

In the longer term it is all about understanding and preparing for the pressure of the recovery. Every year we see the subtle lift in business spirits on the break of spring, but the up turn from this recovery will be enormous. The pressure to delivery solutions at speed will be greater than we have experienced before and a disproportionate amount of this load will fall on the shoulders of your IT systems, infrastructure and capability. Decision support systems, data analysis and visualisation tools and massive changes to global supply chains and work practices will drive monumental change in core business systems. Poor advice by technologist due to inexperience of conflicted interests will deliver project and system failure. This has always cost businesses disproportionately to the expected implementation costs – add pressure, short time frames and lack of understanding and knowledge and we can reasonably expect some monumental stuff ups. Planning is essential, IT excellence is by design, not by accident.

IT Challenges ahead in responding to Covid-19

With the share market convinced Covid-19 is fake news one day, and that the world is ending the next, the constant change that we endure on a daily basis within technology is starting to look like stability. However as remote collaboration and communication technologies that we have been deploying into the business for years start to get a real workout, a few questions have started to emerge:

A) Will the telco infrastructure hold up? 

NBN is forecasting 70% increased traffic peaks during business hours, and a 40% increased peak traffic in the evenings. The former due to work from home traffic with a much more significant increase in upload traffic, and the later due to increase social isolation driving more Netflix and other video streaming and gaming platforms.

Firstly the good news, the 70% increase in peak traffic during business hours is not expected to exceed the current evening peaks. However due to the significantly different traffic profile of synchronous business traffic, we can expect some performance impacts due to the limited upload capacity in the network. The news is perhaps not so good for those trying to watch 4 separate UHD screens between 8 and 11pm where we can probably expect some avalanche congestion. These impacts of course will get significantly worse if/when the schools close and 3 million kids start streaming and remote learning on the network.

The less good news, many households have yet to make the transition to NBN and will be relying on hotspots from their mobile phone. As some mobile networks are already struggling with the existing growth requirements for their network backhaul, we already know that this will cause problems in some areas for some networks. The only solution for this is to make sure that staff have access to a wireline solution from home as quickly as possible. Our advice to organisations is to start at the most important staff, and audit their home access through a staff survey and identify where you have problems – a NBN install may take a couple of weeks, but it is important to remember this crisis is only just beginning and the prime minister is already suggesting that impacts will be continued to be felt for the next 6 months.

B) What are our OH&S responsibilities when we direct staff to work from home? 

I am not going to attempt to answer this one myself, but perhaps some of my LinkedIn contacts that are experts in this area may provide some thoughts. I will however provide insights into what I have seen a few organisations recently do to mitigate potential concerns. One company has been quite specific in their instruction to work from home with directions such as “If you are able to work from home…”, while others have directed staff to purchase required equipment (Chairs, monitors, keyboards etc) to support there work from home requirements.

C) Has the Cyber threat matrix increased with the larger volume of remote access activity?

Well, quite simply YES. Unfortunately the Cyber thugs are all soldering on and there is evidence that they are ramping up phishing activity to take advantage of the disruption. Many IT organisations are cutting security corners to enable improved remote access throughput as many had not previously envisaged such a large cohort of staff working from home.  Conditional Multi-factor authentication (for example) should be enabled on all remote working capabilities, and the cyber gangs are looking to exploit those that have not.  At the very least the capabilities of your IT function to monitor the security event logs when remote access usage has significantly increased – while also dealing with the other pressures that we are putting on them, is likely far from ideal.


The IT function of all Australian organisations will be tested in the coming months, Beyond Technology is ideally positioned as Australia’s leading independent mid-tier IT management consultants to assist with IT review and strategic planning to ensure that you have certainty about your organisations ability to respond.