MIS 100 2007(1-20)
2006 ranking: 1
Senior IS executive: Stephen Whiteside, IT director
Reports to: Director administration
Size of IS shop: 300
PCs: 12,294
Mobile PCs: 2010
Terminals: 250
Hand-held devices: 800
Total screens: 15,354
Industry: Education services
PC environment: Apple Mac, Windows XP, Dell, HP, Lenovo
Server environment: AIX, Linux, Solaris, Windows 2003, Sun, IBM, Apple, Dell, HP
DBMS: Oracle, SQL, MySQL
Address: 22 Princes Street, Auckland
Website: www.auckland.ac.nz
Key IS projects this year: Upgrade of HR systems; new city data centre; enhancement to online presence, eResearch.
As New Zealand’s largest university and research centre, the University of Auckland wants to grow its research income so that by 2012 it is double the 2005 income figure.
Stephen Whiteside, director of IT, says the university’s IT team of 300 is focusing on improving student services via “quite a large number” of new process and service improvements. “The Government is reviewing the way it funds tertiary teaching and learning so that research funding is now more based on outcomes. A key driver for the IT team is therefore to provide measures and reporting around teaching and learning systems and to improve the quality of our indicators.”
Challenges the university faces are the low unemployment rate, which decreases the number of students choosing to study at Masters degree level, and lack of affordable suitable student accommodation within Auckland.
To address these and other challenges, Whiteside says collaboration and connectivity between systems and locations is important. As are new education delivery channels such as e-research, which allow researchers to collaborate online to complete work they can’t complete individually or in person. Access, processing, and storage computer grids are used to facilitate shared online international research.
Whiteside says observing international universities and their innovations around research and funding is helpful and international collaboration supports the growth of local research activity.
The university, for instance, has a close relationship with the earthquake engineering division of the University of San Diego and access to its ‘shake table’. There is also international research collaboration on medical analyses such as bio-engineering of the human heart, physiological modelling and geno-mapping.
Scheduled legislative acts like the Public Records Act, effective from 2010, creates work for the IT team and developing improved document management and supporting systems is a key activity for 2007 along with process enhancements in HR and student administration areas.
Telecommunications and international data networking needs are well supported by the KAREN research and education data network, and this has removed a lot of barriers to national and international connectivity, says Whiteside. Whiteside says local telecommunications costs still have a prohibitive effect on teaching, learning and research. “We still need to be able to provide our students with a much better deal for remote access to our campus. Students are often time poor because of travel or part-time work commitments, so the need to record lectures and provide more flexibility accessing learning material is important. Access to true broadband services is still woefully inadequate in New Zealand and we need that access to become far more ubiquitous.”
Whiteside says while new voice system investments are VoIP, the benefits are contained because the university does not have a large number of dispersed and remote sites – VoIP will therefore continue to be implemented “very incrementally”. Wireless technologies will be significantly expanded in 2007 and identity management technologies enhanced to allow visiting academics to wirelessly access the network.
The university will implement a new data centre in 2007, and investigate a combined disaster recovery centre with other universities including the University of Waikato.
2006 ranking: 2
Senior IS executive: Greg James, chief information officer and general manager global business processes
Reports to: Chief financial officer
Size of IS shop: 374
PCs: 5689
Mobile PCs: 3028
Terminals: 235
Hand-held devices: 510
Total screens: 9462
Industry: Manufacturing
PC environment: Windows XP, Dell, IBM, Compaq/HP
Server environment: Solaris, HP/UX, AIX, VMS, Windows Server 2003, Sun, Dell, IBM
DBMS: Oracle, SQL Server
Address: 9 Princes Street, Auckland
Website: www.fonterra.com
Key IS projects this year: Not disclosed.
Fonterra is the largest dairy exporter and the sixth largest dairy company in the world. As a global business, CIO Greg James says Fonterra realises the advantages of a globally common operating environment and is currently rationalising desktop and legacy applications. Fonterra is collaboratively planning with business units and key customers and suppliers to optimise the supply chain and ensure its efficiency in moving products into the right parts of the world.
James, who is also global business processes general manager, says key challenges include managing demand and organising the availability of IT resources to meet that demand, given Fonterra’s aggressive growth targets. “We are doing a lot of work in China as a result of our equity position with San Lu in China; and China will soon be one of the three major dairy consumer countries in the world.”
He says tactical IT initiatives will see Fonterra consolidate a number of applications that will provide the springboard for further growth. IT is likewise aligned to and integrated with the business planning cycle and future initiatives are aligned to the overall Fonterra strategy. James says collaboration is key to competitive advantage in the export and manufacturing sector, and ERP solutions are a core source of support for collaboration between Fonterra and its suppliers and customers.
On the telecommunications front, James says legislation is positive in that Telecom/Gen-i will need to compete equally with other providers and need to differentiate through customer service, responsiveness and innovation. He says there will also be increased competition at a commodity level which should mean the need to provide relevant value-add through product and service packages. On the negative side, legislation and local loop unbundling may reduce pricing flexibility due to the requirement of the Telecom networks group to deal at an arms length with the Telecom/Gen-i customer facing business units. “It should mean that they will receive the same unit pricing on ‘wholesale’ type products as other providers. And if the model of British Telecom is followed, then the ‘regulator’ will have the ability to scrutinise corporate deals to ensure no cross subsidisation and ensure that certain hurdle rates in terms of profitability are achieved in customer contracts.”
In the next 12 months, Fonterra will embark on IT projects including an SAP ERP and business warehouse system upgrade, a hardware upgrade in conjunction with EDS, server virtualisation, and the possible implementation of a CRM system. “We are looking at certain tools and their viability. We use CRM now as a fairly core part of customer service toolset, but this is internal focused and we are looking at whether there is any point extending it.”
VoIP is another area of interest, and James says if Fonterra had ‘greenfields’ sites, then VoIP systems would definitely be implemented. However, the economic model for VoIP is not as clear for organisations like Fonterra that need to apply VoIP over existing telephony infrastructure.
“We have cost tied up in existing infrastructure and to move away from that is not as compelling for economic, not technological reasons.”
Fonterra is continuing a document management system review along with a focus on business continuity and disaster recovery systems. The organisation’s “relatively mobile” workforce has resulted in it evaluating Skype-type tools to reduce cellular connection costs and ensure its global workforce can stay in touch with the organisation.
“Broadband mobile data costs within New Zealand and Australia are reasonable but out of those areas on a roaming basis it can be relatively expensive, so we try and avoid it and hook up through [internet calling] providers where possible.”
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.
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.
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.
2006 Ranking: 17
Senior IS executive: Rohan Mendis, ICT manager
Reports to: Deputy commissioner
Size of IS shop: 252
PCs: 5700
Mobile PCs: 1000
Terminals: 0
Hand-held devices: 100
Total screens: 6800
Industry: Government and defence
PC environment: Windows XP, Dell, Lenovo
Server environment: Sun, Windows 2000, Dell
DBMS: DB2, Oracle, SQL
Address: 180 Molesworth Street, Thorndon, Wellington
Website: www.police.govt.nz
Key IS projects this year: Digital encrypted radio; hardware refresh; case management system upgrade.
Public perception of the quality of policing is a key challenge faced by NZ Police in 2007 and beyond. Meeting this, NZ Police has three strategic goals to 2010: Community reassurance through providing protection and opportunities for community participation, setting local priorities, and working in partnership with other organisations; policing with confidence using evidence-based proactive policing, timely and effective response for service, and thorough investigations and effective resolution of crime; and organisational development through technology and innovation, integrity and accountability, and providing leadership and staff development.
“We need real leaders in Police and we need them to be [rock solid] in terms of integrity and accountability that then feeds into community reassurance,” says Rohan Mendis, ICT manager.
ICT systems and innovation cut across all the above key goals, and in 2007 the Police ICT team is focused on staff training and education surrounding the use of new and existing ICT systems and devices. “Our methods of training are also being revised – for example, we are investigating training models like taking the classroom to the staff.”
Mobile access to core operational applications is another focus, and subject to finance, Police will pilot a wireless LAN and invest more widely in cellular mobile technologies, digital radio, and voice and data wireless networks. The goal is to make applications available in Police stations available on car computers, and eventually on secured PDAs.
Mendis says server virtualisation will continue, with a goal of 80 per cent of Police application servers eventually virtualised – it is already a third of the way towards this goal. VoIP technologies are also viewed favourably, with more than 3300 phones installed and another 7000 to go. Mendis says voice and video run well over the Police data network using Cisco multi-service network technologies. Police also recently upgraded its communications centre, internal help desk and traffic camera office call centre with multimedia-capable applications.
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