Technology responsibility: Get it right

Kumar Parakala is NSW Chairman of the Australian Computer Society. During the last 15 years, he has worked in senior management roles in healthcare, professional services, manufacturing and the public sector. In a former role, he was director of Online Systems Program with KPMG Australia, and was responsible for an initiative of the firm to radically improve operational efficiencies and client management processes. He worked closely with CEO, CFO and National Managing Partners of the firm in this role. He has Masters degrees in Business Administration, Information Systems and Science.

Coupling his ACS role with a senior program management mission at Sydney University, which has responsibility for a range of strategic online service delivery objectives, Parakala is also passionate about ensuring technology responsibility has prominence on the executive agenda.

“ICT risk management continues to be an area of critical importance to executives of both private and public sector organisations. ICT is the single largest cost after labour for many companies, accounting for 47 percent of business capital spending (Wall Street Journal),” he says.

“Risk management enjoys greater recognition and focus in the ICT industry than in most other sectors, with mature methodologies and processes around this discipline. Despite this, the rate of failure in ICT projects and services continues to be unacceptably high, ensuring this focus will continue.”

Parakala and Zarrella are pragmatic about executives integrating business and technology. Both concur that the lip service must end and that executives are going to face increasing pressures, from regulators and stakeholders, to lift their game.

“In the next two to three years, organisations will continue to spend more and more on ICT. This will result in boards and the CEOs coming under increased pressure and scrutiny by shareholders for a return on investment contributing to the bottom line. Regulatory bodies and legislation will require both public and private sector companies to implement appropriate internal risk management controls and provide responsible reporting to shareholders,” Parakala says.

“Many large organisations have over the years developed complex project and ICT management methodologies that support their massive ICT spending. However, these high cost processes and methodologies do not completely fulfil the objectives of effective ICT governance and risk management.