Archive for November, 2008

 

The Case for the IT Actuary, Part 3 – 24. November, 2008

In Part 2 of this article, we examined the requirements for introducing Actuarial concepts into IT project management. We conclude by describing how you might go about implementing these concepts.

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The Solution

It is clear that better measurement of costs associated with large IT initiatives is needed to manage these projects more effectively. It is also clear that there is little incentive to capture the data necessary to perform the statistical analysis required for effective risk management on an operational level. This contradiction contributes to information technology’s poor reputation on delivering solutions that satisfy business requirements.

Can this situation be remedied? I believe so, but it will take some new technology and a different perspective from both the people doing the work and the people managing it. The new technology is being developed right now – a great example is the ability of the Tivo corporation to “predict” the outcome of the weekly voting on the “American Idol” television show by recording the usage patterns of their subscribers. Capture techniques such as this will be necessary to collect the data necessary for detailed risk assessments and usage patterns of spreadmarts within an enterprise.

Management personnel will need to shift risk management topics to the forefront of their philosophies and remove risk management from an anecdotal focus to one of metric analysis. Part of this shift will include contacting and retaining actuarial skills for statistical assessment or risk parameters, reducing the uncertainty in the current level of analysis. This will make decisions more effective and save the organization resources and money.

There are examples of corporate executives requiring metrics-based analysis in support of decisions, as described in Jessica Tsai’s article on predictive analytics. Unfortunately, these examples are rare enough to be called out in vendor presentations, which is a poor commentary on the presence of these measures. The presence of an actuarial staff would improve this situation greatly.

Operational personnel will need to understand their role in reducing overall risk to the organization. The easiest way to do this is to demonstrate the cost of activities such as spreadmarts and place appropriate sanctions in place for continued spreadmart use. Often, the easiest way to correct behavior is to associate the activity with a tangible financial cost. Once the habit is broken, it is unlikely to reassert itself in the organization, finally realizing the cost savings desired.

Organizational change is rarely quick or easy, but the movement toward a better way of analyzing costs will bear many benefits over the long term for enterprises looking for more effective information technology management techniques.

GiftCardRescue – 24. November, 2008

Gift cards are a great alternative for those who don’t know exactly what to buy for a gift, and retailers like them too because they don’t have to give change like they did with gift certificates, and studies show that people spend 20-30% more than the value of the card during a shopping trip. However, in these uncertain economic times, it might not look like such a great deal when major retailing companies are going bankrupt.

Since nature abhors a vacuum, enter GiftCardRescue.com…

GiftCardRescue protects you against failed companies

Posted in Business

It’s Only a Model – 23. November, 2008

As exposed on Wil Wheaton’s blog…

I think one of the best things about the Internet is the constant publication of abject silliness…

Posted in Silliness

A Little Too Close to Home – 19. November, 2008

Bzzzzz...

(h/t GarfieldMinusGarfield)

Posted in Uncategorized

Just What They Had in Mind – 16. November, 2008

Hoo boy…

Genworth in deal to buy bank, seeks TARP money

Hartford To Convert To S&L To Tap Treasury Funds

According to the second article, we now have American Express and GMAC structured as bank holding companies as well. When I heard the news about The Hartford on Friday, I was in line at the bank (my real, actual bank), and I laughed out loud – I’m sure everyone thought I was nuts.

Two observations:

  • I’m sure this is exactly what the powers that be had in mind when they came up with this Chicken Little bailout scheme.
  • It always amuses me when the powers that be are surprised that people don’t trust them.
  • Tell me again when we’re getting some adults in charge of our national store?

    Posted in Business, General

    “I Hope You Have Cookies Enabled” – 11. November, 2008

    Riot…

    The Matrix Runs Windows

    Posted in Silliness