Delivering to our Potential

1. Delivering to our Potential Ian Mitchell, FNZCS Confidential to K I Mitchell

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. Confidential to K I Mitchell

3. Current Status • On slippery slope downwards • Retire: House, bach, boat, 56 and $56,000pa • Work smarter – not harder • Ideology or PC? Confidential to K I Mitchell

4. Our Cultural Attributes • Multicultural – real world • “We haven’t got the money – we’ll 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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

6. Our Economic Base • We are the least corrupt country • Our economy is efficient • We are small and therefore Agile • We trust other kiwis. Confidential to K I Mitchell

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! Confidential to K I Mitchell

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 can’t explain to a bartender is probably no damn good.” - Rutherford. Confidential to K I Mitchell

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? Confidential to K I Mitchell

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? Confidential to K I Mitchell

11. Knowledge Wave • No credibility • It died. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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 • R&D subsidies or tax reductions. Confidential to K I Mitchell

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! Confidential to K I Mitchell

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. Confidential to K I Mitchell

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? Confidential to K I Mitchell

21. Managing Gen-Y • New challenges • Bullying does not work • Boring doesn’t work either • And Stupid – why would I stay • You need experience and talent! Confidential to K I Mitchell

22. Project Failures • 70% fail – DTI and PI • 70% (=>49%) fail because of change management issues • Managers can’t propagate the need for change • Or don’t understand why their staff know that the idea won’t work. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

25. Detailed Thinking • ICT projects often require detailed thinking as well as large scale thinking • Few people can do both – unless practiced • Managers don’t think detail • Operational knowledge is 5 years out-of-date • Don’t think about the quiet fixes their staff do • Tacit decisions made by old guy down the back. Confidential to K I Mitchell

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” Confidential to K I Mitchell

27. Standard Operating Procedures • SOP s are essential • Quality must be built in • Software can be written “bug-free”. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

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. Confidential to K I Mitchell

31. Thank You • Ian Mitchell, FNZCS • Ian@Mitchell.co.nz • www.Mitchell.co.nz • www.AboutIT.co.nz Confidential to K I Mitchell