MIS 100 2007(1-20)

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1 University of Auckland
2 New Zealand Defence Force

2006 Ranking: 3

Senior IS executive: Derek Locke, chief information officer
Reports to: Chief of New Zealand Defence Force
Size of IS shop: 300

PCs: 14000_
Mobile PCs: 3500
Terminals: 0
Hand-held devices: 500
Total screens: 18,000

Industry: Government and defence
PC environment: Windows XP, Compaq, Dell, IBM,Toshiba
Server environment: Solaris, Other Unix; Windows 95/98, 2000, NT; Compaq; HP9000; OEM Intel-based
DBMS: Oracle, SQL
Address: Defence House 15-21 Stout Street, Wellington
Website: www.nzdf.mil.nz
Key IS projects this year: ERP system upgrade; infrastructure and telecommunications upgrade; server replacement.


The New Zealand Defence Force (NZDF), which integrates and manages three services – army, navy and air force – faces some “big issues” in 2007. But these are good challenges that will make the NZDF more professional and agile, says CIO Derek Locke. They include rolling out a new strategic plan, and development of robust governance structures, with a new senior management team led by the Chief of Defence Force, Lieutenant General Jerry Mateparae.
The combined organisation has a vision of being “the best in everything we do” with a mission to secure New Zealand against external threat, protect sovereign interests and take action to meet likely contingencies in areas of strategic interest to New Zealand.
To complete these strategic changes, NZDF has received additional funding of $4.6 billion over 10 years (beginning from the 2005/06 financial year) to support the Defence Sustainability Initiative (DSI). Locke says there is subsequently a lot of focus around new recruitment to support DSI and to counter a significant drop in personnel numbers.
Like many public organisations, Locke says NZDF is committed to a “huge” knowledge management project called Information Management and Exploitation which addresses storage issues around unstructured data. NZDF is also investing heavily in disaster recovery and business continuity projects, including pandemic planning, and is considering the effects of global warming on IT-supported systems.
Key NZDF IT systems are ERP systems supported by SAP software, email and other messaging systems, and operational systems that support war fighting. These systems must be capable of being deploying rapidly for overseas use, and there is pressure on IT systems and staff as a result of multiple military deployments, including ensuring NZDF has enough people, equipment and bandwidth. “Bandwidth at home is barely sustaining us and we are constrained by the lack of a high speed bandwidth network servicing the country. The demands of email, data and voice traffic are all exceeding our bandwidth capability, and yet we are still ensuring we meet our operational commitments. NZDF would be one of the biggest users of telecommunications in New Zealand,” says Locke.
He says ‘minimum broadband’ services should start around 100Mbps, particularly for large organisations with SAP-type applications that require “fat pipes” to be deployed to full potential. NZDF is investigating the use of dedicated satellite capability, and is in initial discussions with potential providers for a large satellite connection to be used mainly for data and in remote areas. Mobile technologies are important, says Locke, and NZDF is currently rolling out Blackberry devices to staff. “We have people travelling overseas for two weeks at a time and you cannot use anything other than GSM technology in the main for that.”
ICT projects for 2007 include investment in business intelligence tools and server virtualisation software from EMC – NZDF aims to reduce server numbers from 750 to around 200 within two to three years.
Defence is also extending its investment in Nortel, Cisco and Juniper VoIP technologies, and is looking at trialling 802.11-based wireless technologies. “There’s a lot of misconception about wireless technologies and data security,” says Locke. “We use wireless in our enterprise systems and there are more secure wireless solutions available now – there’s no reason that wireless can’t be used.”
3 Fonterra Co-operative Group
4 University of Otago

2006 Ranking: 4

Senior IS executive: Mike Harte, director, information technology services
Reports to: Chief operating officer
Size of IS shop: 230

PCs: 12,470
Mobile PCs: 1430
Terminals: 0
Hand-held devices: 38
Total screens: 13,938

Industry: Education services
PC environment: Windows XP, Apple Mac, Linux, Toshiba, Dell, Lenovo, HP
Server environment: Novell, Unix, RedHat Linux, VMS, Windows, Apple Mac, IBM, HP, Digital Alpha, Compaq
DBMS: Oracle, SQL
Address: Leith Street, Dunedin
Website: www.otago.ac.nz
Key IS projects this year: FMIS project; second data centre; application migration project – all in-house corporate systems on Windows/Oracle/Java platform.

The University of Otago will continue to enhance its international reputation as a research-led organisation and has recently completed a strategic direction to 2012.
From an IT perspective, director of IT services Mike Harte says the strategic planning has identified a number of imperatives that will require IT management to better understand business needs and to closer align these to IT strategy. “A key issue is alignment. We need to understand what the organisation’s needs are going forward and what it needs in terms of IT governance and leadership — that is where we feel we can add value.”
Questions being asked include whether the university has the appropriate advisory bodies, input groups and access to customer response to help align business and IT and how to ensure IT becomes more customer driven. A further focus is IT organisational structure. Harte has started seeking ideas from all IT staff and a representative group of customers regarding how the division can be organised to best meet the needs of its customers. Harte says this process will take a while but the inclusiveness is highly popular and likely to produce the best outcome.
“It’s a little like a ‘State of the Nation’ survey: I have been in this role for two years and this is a chance for me to revisit existing perceptions and where I see IT as a division moving forward and how we are viewed and delivering. We are looking at our customers’ needs and wants and where we add value and also at obstacles to delivery. Staff are providing individual and team submissions.”
As a large New Zealand university, Harte says there are ongoing challenges around service management, including IT support, delivery, capacity and prioritisation. There is increasing demand for new and improved IT services, along with a large number of systems projects potentially important to the business. IT management is therefore seeking greater involvement of senior management in prioritisation of IT work.
Like other universities, a need to comply with the pending Public Records Act from 2010 is important and Harte says “significant IT input” will be required for this project.
For network connectivity and security, the university is also reviewing identity management and authentication, authorisation and access processes to the core network and services, particularly as a result of investigating ‘capability building’ on the KAREN research and education network. “KAREN is a wonderful tool for research but a key issue is identity management. If we want to collaborate across organisations, then we must be part of a federated identity management system that allows staff to be authenticated back through their own organisation.”
Harte says a wireless network pilot launched last year received positive feedback from students and delivers secure wireless access. “If a laptop gets a virus we can shield the servers from it. If someone tries to hack into the wireless network, they will be shut down. Wireless is a key project for us to improve service to students and we envisage having a wireless cocoon over the campus by the end of 2007; 65 per cent of our students own their own laptop.”
The university is building a second data centre. It is in the design phase and is in response to the original data centre reaching capacity plus the requirement to reduce overall business risk.
Harte says there are distributed campuses — two sites in Wellington, one in Christchurch and one in Auckland; and there is now an Invercargill campus following the merger with the Dunedin College of Education.
Connection is currently via Telecom WAN links. However, traffic between all campuses will soon be running over the KAREN network’s 10GB backbone and Harte says traditional telecommunications services are likely to be reviewed as KAREN is bedded in.
The university would like to put together an “elegant” mobile computing solution, says Harte, as it presently supports a mixture of hand-held devices on mobile networks along with academics working overseas. “Blackberry technology works very well as do the range of Windows Mobile devices. This year we are evaluating those technologies and looking for a single, cost-effective solution that we can support from an enterprise point of view.”
VoIP is being researched and while the university has distributed PABX systems, it is looking at the next generation of VoIP technology. The university has multiple sites and the benefits of VoIP may balance or outweigh the investment costs, says Harte.
5 Telecom New Zealand

2006 Ranking: 5

Senior IS executive: Mark Ratcliffe, COO, technology and enterprises
Reports to: CEO
Size of IS shop: 2250

PCs: 7263
Mobile PCs: 3670
Terminals: 0
Hand-held devices: 600
Total screens: 11,533

Industry: Information - telecommunications
PC environment: Windows XP, HP, IBM
Server environment: AIX, HP Unix, Irix, MVS, Solaris, HP Others, iSeries, pSeries, Silicon Graphics, Sun
DBMS: DB2, Oracle, SQL, Sybase
Address: Level 2, Telecom Networks House, 68-86 Jervois Quay, Wellington
Website: www.telecom.co.nz
Key IS projects this year: Operational separation; number portability; local loop unbundling; Next Generation Telecom – IP network rollout; Yahoo! Xtra joint venture; voice services platform replacement.


Telecom, New Zealand’s largest listed company, is undergoing significant change and strategy revision in order to drive the business forward in the new regulatory environment.
New Government telecommunications legislation announced in 2006 included proposals for operational separation of Telecom’s business into wholesale, retail and network units. It provides for unbundling of the last mile ‘local loop’ access and the sale of standalone broadband without a phone connection, known as ‘Naked DSL’.
Mark Ratcliffe, chief operating officer technology and enterprises, says Telecom’s focus is on engaging positively with Government and the wider industry in order to develop the operations, products and wholesale services that meet the requirements of the Government’s regulatory review. “Our key business objectives are to implement a sustainable, future-proof separation model that meets the requirements of the Telecommunications Act. We have proposed a structurally separated access network company that would own and operate the network assets. This would allow for a simpler separation model and faster delivery of local loop unbundling and Naked DSL. It would also allow for deregulation in other areas, enabling Telecom Retail to innovate and compete vigorously for customers, and further broadband network investment. We are consulting with Government and the wider industry on this now.”
Business challenges include developing and implementing an effective separation regime in collaboration with Government and industry, and adapting to this new operating environment. Telecom is also prioritising work streams to ensure it delivers local loop unbundling and Naked DSL as required under the new legislation. “The telecommunications industry is at a critical juncture. Telecom is obviously at the heart of the regulatory reforms being implemented. However, the changes being introduced impact the entire industry: It is critical the right incentives for investment are retained in order to further enhance telecommunications services to New Zealanders,” says Ratcliffe.
Echoing the trends offshore and locally, Ratcliffe says Telecom is also encountering supply constraints in its traditional sourcing approaches for skilled staff. “The shortage of skilled IT people we’re experiencing is similar to the dot com boom and Y2K days of seven or so years ago. This has been heightened by the volume of work required to implement critical projects including operational separation, local loop unbundling and Naked DSL.”
This year, Telecom will invest in a wide range of internal IT initiatives including ERP, business intelligence and CRM systems, server virtualisation, VoIP and mobilisation technologies, disaster recovery and e-business projects. Network de-commissioning and extension of customer product and services offerings are also planned.
Telecom is committed to continued investment in its broadband and mobile networks, after accounting for the new regulatory environment. Telecom has begun network expansion with the rollout of ADSL2+ infrastructure that will lay the foundations for Telecom to offer broadband connections with average speeds of eight to 12MBps for residential customers in the five principal metropolitan areas. Further broadband initiatives are being evaluated as part of the current separation and operational review. Telecom is also actively evaluating the potential of emerging mobile technologies for delivery of mobile voice and data.
6 Ministry of Social Development
7 Fletcher Building
8 Carter Holt Harvey

2006 Ranking: 10

Senior IS executive: Pat O’Connell, chief information officer
Reports to: Chief executive officer
Size of IS shop: 150

PCs: 5000
Mobile PCs: 1500
Terminals: 800
Hand-held devices: 1000
Total screens: 8300


Industry: Manufacturing
PC environment: Windows XP, Dell, IBM
Server environment: Windows 2003; Solaris; Linux; AIX;
Compaq; Dell, iSeries, pSeries; Sun
DBMS: DB2, Oracle, SQL
Address: 640 Great South Road, Manukau City, Auckland
Website: www.chh.co.nz
Key IS projects this year: M&A support; legacy system migration.


Business integration and growth are on the agenda for Carter Holt Harvey — which was purchased for $NZ3.3 billion by entrepreneur Graham Hart in March 2006. A softening economy exacerbated by a challenging export market is the main challenge faced by Carter Holt Harvey, says CIO Pat O’Connell. He says new business integration and synergistic use of existing IT capability are key IT goals for the group. “Accurate information, fast information and optimised planning are all important to the business, and are processes in which IT has a significant impact.”
In the coming 12 months, Carter Holt Harvey will continue a number of upgrade projects in the areas of ERP, business intelligence and financial systems. Hardware upgrades and work on server virtualisation are also on the agenda. O’Connell says Carter Holt Harvey has not made a significant investment in VoIP to date, but this year will extend data connectivity through access to 802.11-based wireless networks and mobile technologies. The e-channel is an additional focus area, and like many organisations in this year’s MIS100, Carter Holt Harvey is planning to upgrade disaster recovery and business continuity systems.
O’Connell says all IT functions are conducted in-house with the exception of SAP development and support, which is outsourced to former Carter Holt Harvey subsidiary Oxygen Business Solutions.
Ongoing acquisition activity by Hart’s Rank group also continues to provide challenges.
“We are constantly reviewing options for synergistic integration from all aspects — operations, application portfolios, licensing, and technologies, as we bring more business under the Carter Holt Harvey umbrella,” says O’Connell.
9 ANZ National Bank

2006 Ranking: 7

Senior IS executive: Tomasz Smaczny, chief information officer
Reports to: Graham Hodges, CEO
Size of IS shop: 500

PCs: 8300
Mobile PCs: 1800
Terminals: 0
Hand-held devices: 0
Total screens: 10,100

Industry: Finance and insurance
PC environment: Windows 2000, XP; HP; Dell
Server environment: Windows 2000, 2003; Solaris; Citrix; AIX; HP; Dell; Tandem; Stratus; Sun; IBM
DBMS: SQL, DB2, Oracle, Sybase
Address: 1-9 Victoria Street, Wellington
Website: www.anz.com/nz and www.nationalbank.co.nz
Key IS projects this year: Telling platform replacement programme; sales and service platform replacement programme; direct link platform upgrade programme.


ANZ National is New Zealand’s largest bank when it comes to customer numbers. The bank’s focus for the coming 12 months is on growing the business both in revenue and market share, with technology identified as critical to the execution of these business goals, says CIO Tomasz Smaczny.
“We must be positioned to partner and enable the business to achieve these goals. Accordingly, alignment with the business is a critical requirement for the Technology Team and we have invested considerable effort developing a Technology Business Strategy that reflects and supports delivery of the business’ goals,” says Smaczny.
The Technical Strategy of ANZ National also reflects this alignment. Smaczny says team structure follows strategy, and the technology team has recently moved to a new structure and operating model specifically designed to underpin its focus and engagement with the business. The new structure includes adoption of a business unit-oriented and portfolio approach to managing technology. This model has also been designed to encompass and deliver greater leverage of resources across the extended technology team.
“We recognise that people are the foundation of our success and have established a variety of programmes to ensure that we attract, retain and foster talented people. One such programme has been the development of clearly defined people and technical leadership streams, which provides our team members with viable options to pursue either career path,” says Smaczny.
Based on the new Technology Business Strategy, ANZ National has allocated substantial investments in its banking channels with channel IT projects for internet banking, telling, telephone banking, and call centres. These projects deliver the infrastructure that the business requires to transform its operating model, says Smaczny. Other projects include a sales and service platform replacement investment, hardware upgrades; server virtualisation and implementation of VoIP infrastructure. Business continuity and disaster recovery planning are further focus points for 2007.
The largest areas of IT project expenditure are the telling platform replacement programme, sales and service platform replacement programme and direct link platform upgrade programme.
10 Massey University
11 Progressive Enterprises

2006 Ranking: 13

Senior IS executive: David Morrison, manager IT
Reports to: Managing director
Size of IS shop: 64

PCs: 1900
Mobile PCs: 100
Terminals: 2000
Hand-held devices: 400
Total screens: 4400

Industry: Wholesale and retail trade
PC environment: Windows 95, 98, 2000, XP, CE; Compaq/HP
Server environment: OS4000; Unix SVR4; Windows NT, 2000, XP; Compaq; iSeries; NCR
DBMS: DB2, Oracle, SQL, Teradata
Address: 80 Favona Road, Mangere, Auckland
Website: www.progressive.co.nz
Key IS projects this year: Systems integration.


A focus on sales, customer services and integration of IT systems are key priorities for Progressive Enterprises in 2007.
Acquired by Woolworths Australia in 2006, Progressive Enterprises continues to seek to leverage synergies in New Zealand with the new parent company.
David Morrison, IT manager for Progressive, says significant improvements are to be expected in the supply chain as a result of implementing Woolworths’ supply chain systems. From these changes IT will help their primary customer – the supermarkets – to deliver competitive advantage to Progressive Enterprises.
The support of senior management for IT, along with the necessity of an upgrade following the acquisition, is reflected in the IT project line-up for Progressive over the coming 12 months.
Progressive Enterprises is a light outsourcer, outsourcing IT education, some applications development and HR payroll.
12 Air New Zealand
13 Inland Revenue Department
14 Auckland University of Technology
15 University of Canterbury
16 New Zealand Police
17 Land Transport New Zealand
18 ASB Group
19 Bank of New Zealand

2006 Ranking: 21

Senior IS executive: Paul Tait, chief information officer
Reports to: Chris Bayliss, general manager technology and operations
Size of IS shop: 300

PCs: 4000
Mobile PCs: 1685
Terminals: 385
Hand-held devices: 1268
Total screens: 7338

Industry: Finance and insurance
PC environment: Apple Mac; OS/2; Desktop Unix; Windows 2000, XP; Dell; IBM
Server environment: AIX; HP Unix; SCO Unix; Sun; Windows 2000, 2003; HP Intel-based; xSeries, iSeries, zSeries
DBMS: DB2, Informix, Oracle, SQL, Sybase
Address: State Insurance House, 16 Willis Street, Wellington
Website: www.bnz.co.nz
Key IS projects this year: Re-use of components through service oriented architecture; strengthening online and mobile banking capabilities.


Strategic priorities for the Bank of New Zealand in 2007 include building retail banking presence through excellent service. This will be achieved through offering customers new and unique ways to save money on fees and mortgage interest, as well as ways to earn higher interest on deposits.
“We’ll also be looking at ways to streamline the customer banking experience further, making it easier, cheaper, and faster to bank with us. Our latest offering ‘TotalMoney’ encompasses all of these things and based on the extremely positive response we’ve had from new and existing customers, it’s the packaged solution they’ve been waiting for,” says CIO Paul Tait.
Tait says a key business challenge for the BNZ is in creating the ability to be as nimble as smaller niche banking players. “However in saying that, our success at the Cannex Banking Awards shows that not only are we the best value for money in terms of the large banks, but our home lending, personal lending, and credit cards offerings are strongly competitive with anything available on the market.”
The regulatory moves afoot in respect of unbundling and opening up the Telecom network, as well as portability, are all positive and will enable improved service opportunities for the BNZ, says Tait. “The other major challenge is the cost of mobile termination fees as a result of the high interconnect fees that are being passed on to customers. These significantly threaten the profitability of pushing our services online at costs customers will find acceptable. For example, it is expensive to preserve free calling into our 0800 numbers for account enquiries from mobile phones. Some innovative thought is required to continue to deliver cost effective personal mobility for customers, something we are working on presently.”
20 healthAlliance

2006 ranking: 22

Senior IS executive: Phil Brimacombe, chief information officer
Reports to: CEOs of Waitemata and Manukau DHBs and healthAlliance COO
Size of IS shop: 98

PCs: 4700
Mobile PCs: 350
Terminals: 300
Hand-held devices: 0
Total screens: 5350


Industry: Health and community services
PC environment: Windows XP, HP
Server environment: Linux; Windows 2003, Windows 2000, Windows NT; Solaris; AIX; HP Intel-Based; Sun Microsystems, IBM RS/6000
DBMS: Oracle, MS SQL
Address: Middlemore Hospital, Otahuhu, Auckland
Website: www.healthalliance.co.nz
Key IS projects this year: Mental health clinical information system; chronic care clinical information system; electronic referrals; electronic medication record.

Responsible for providing IT strategy, operations and services to two Auckland District Health Boards — Waitemata and Counties Manukau — healthAlliance takes a long-term strategic view of the needs of both DHBs, says CIO Phil Brimacombe.
To support the two DHBs, healthAlliance develops and deploys clinical information systems that provide valuable information for both primary and secondary healthcare providers. Brimacombe says there is a need to reduce fragmented and paper-based information systems and continually develop and provide an integrated information view. That way, clinicians can get one view of the patient’s radiology reports, outpatient notes, test results and notes from other clinicians involved in that patient’s care. “For example, it’s very important to get the health of children right as the health problems of early life tend to become more complicated later in life. We developed the Well Child information system, which went on to become the national immunisation system, and want to expand that further to electronically capture and integrate more Well Child information and involving external providers such as Plunket.”
The three greater Auckland region DHBs are jointly implementing a mental health information system. It will eventually be linked to GPs and other providers so decisions on mental health care are not made in isolation. Similar integrated information developments are in place or in development for community health workers.
“A lot of people don’t need to be in a hospital and instead receive care from community health workers like district health nurses and physiotherapists or occupational therapists. At the moment a lot of the information these workers gather is manual and paper-based,” says Brimacombe.
healthAlliance will soon embark on a business intelligence project to deliver better financial information to DHB managers and on a large server virtualisation project. Brimacombe says healthAlliance finds virtualisation “quite challenging” due to the complex clinical applications the DHBs use. “It’s quite easy for organisations with off-the-shelf applications to virtualise, but our highly specialised applications demand their own quirky hardware. That said, we have to do it because we have hundreds of servers.”