Implementing the Business Owner concept for IT systems. Tony Lester September 2012
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1 Implementing the Business Owner concept for IT systems Tony Lester September
2 Purpose of Presentation In this presentation we will discuss: Check on progress from last years Workshop. Establish what needs to happen now. Discuss implementation approaches. Consider what should be done if Business Owner concept is not implemented. 2
3 Progress from last years Workshop. We spoke about implementing Business Owner concept across PITAA Countries. Recognised that it may not be possible to implement in all Countries due to size and scale. Business owners need to be involved from the start. Business owners accountable for all decisions IT has a role to inform Business owners on new opportunities. 3
4 How has the implementation gone? Have you been able to progress this Best Practise? Have the Business Units recognised the need for this to occur? Has there been support from Senior Management? Have Power / Key Business Users been identified and trained? Have you formalised better relationships with your IT vendor if IT is not delivered in-house? 4
5 What needs to happen now? Senior management must understand this concept. Ownership has to be allocated to all IT systems. If there is any overlap, clear ownership must be decided: e.g. Case Management is it debt or audit? Prepare a complete inventory of all your systems know what you have to manage!! Not just your larger IT systems, but them all so that you can understand the linkages!! Identify appropriate Owners and seek senior management agreement. 5
6 How best to implement Business Owners. Depending on size of organisation, there can be a number of options to implement. Smaller countries may have to create one super Owner for all IT systems. Larger countries can allocate IT systems amongst relevant Business Owners. What decides a relevant Business Owner? --- it s the Business Area that directly requires a relevant IT system to operate in the most effective and efficient manner. --- therefore the area that understands best how a business process should work. 6
7 How best to implement Business Owners. Cont d From the IT systems inventory establish the links between IT systems. These linkages should enable you to clump IT systems. Where one system is totally reliant on another, then perhaps there should be one Owner? Try and remove any overlaps in Ownership dual ownership will ultimately fail. System ownership should support Organisational Management structure. 7
8 How best to implement Business Owners. Cont d If Organisational Management structure does not neatly fit, then consider allocate ownership to the main user/ largest stakeholder do not co own. For small organisations, where a super owner has to be established the Power / Key Business User becomes critical. A super owner may not be able to know everything about all IT systems, therefore a small number of Power / Key Business Users need to be identified and trained/ retained. 8
9 How best to implement Business Owners. Cont d Power / Key Business Users will/ can become knowledgeable across a number of IT systems. They are not accountable for the IT systems, but understand how they work. Accountability for design, performance and accuracy of the IT system will always reside with senior Business Unit manager. Business Unit manager is also accountable for retention of IT systems knowledge within the business unit eg e.g. documentation of business process, training, staff retention and succession planning. 9
10 What if Business Owner concept is not implemented? Very quickly IT systems will become out of step with business processes. Therefore will become of reduced value to an organisation. That value will decline until IT system is of little assistance to overall organisation and will need to be replaced again!! An Organisations cost to collect Revenue will be higher due to poor performing IT systems. 10
11 What if Business Owner concept is not implemented? Cont d There will be a rift between IT and the rest of the organisation. IT will not be seen as an integral part of the Tax Administration. Confidence in the Tax Administration will decline both internally and externally. Voluntary Compliance will decrease. To succeed Tax Administrations need well managed IT environments Business Ownership is key. 11
12 What if Business Owner concept is not implemented? Cont d If there is still doubt as to why Business Ownership is important, then: -- observe how well your Organisation works when the IT systems are down. -- if IT are the only ones managing a system outage, then you have got it wrong!! -- IT systems are a corporate asset not just IT Team IT needs to start saying NO. If there is still doubt switch the IT systems OFF. Which Business Unit complains the most they should then be the Business Owner!! 12
13 Summary Is Business Ownership of IT systems happening in your Country? Does your senior management recognise the need for this? Are you able to clearly allocate ownership if not create a super owner. Link relevant IT systems to one Business Owner. Ensure business unit is skilled appropriately Power/ Key users identified. Treat IT as an integral part of the Tax Administration. 13
14 Summary Cont d Remember To succeed, Information technology needs to be recognised as an integral part of the Tax Administration i i if not the Administration i i will fail to advance ( Tony Lester, February 2011) IT and Business Units must work seamlessly together and the Business needs to take ownership. 14
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