Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels

Friday, 28 March 2008

Time to focus on the good in databases

It can take a great deal of effort to make the national press interested in technology.

Million-pound system implementations that are bread and butter for a specialist magazine such as Computing are unlikely to be big news for the wider media.

Sometimes, however, organisational processes help push the role of technology. But such promotion is not necessarily a reflection of industry best practice.

Research from the BCS, for example, says UK citizens have expressed an “alarming loss of trust” in the institutions that are expected to safeguard their personal data.

The results are not surprising -­ stories of CD-ROMs filled with personal data lost in the post are hardly likely to inspire confidence.

A cascade of similar stories means the media has honed in on data collection, with the word "database" fast becoming a catchword for potential security threats.

Yelling “Fury over kids DNA database,” yelled the Daily Mirror recently, in response to a recent call for a debate on the measures required to identify future offenders from the Association of Chief Police Officers’ Gary Pugh. Such headlines form part of a broad media trend: want to spike citizen fears over technology bad practice? Mention a database or two and watch public indignation rise.

The result is an increased awareness from the proverbial man on the street about information practice and malpractice, with the BCS suggesting 90 per cent of adults are now aware of the Data Protection Act (DPA).

I guess people are aware of the principles of the DPA, rather than the fine details of the act -­ which Dino Wilkinson illustrates in this week’s Computing is a complex regulation.

But the result is the same: increased fear and loathing about the way public and private sector organisations collect, store and use personal information.

Yet technology can provide a helpful hand, rather than be a hindrance. Good IT management can ensure information is protected.

Manchester Airport’s project to use biometric technology, for example, helps restrict staff access and shows how information collection can provide best practice.

Such projects highlight how it is time to accentuate the positives of the database, rather than hate the connotations of a catchword.

Further reading

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Friday, 14 March 2008

Check the fine print of the Data Protection Act

There have been increasing numbers of data loss or data theft incidents reported in sections of the media over recent months - but when it comes to information protection law, research from the British Computer Society (BCS) suggests UK a dults are informed and demanding.

"A remarkably IT astute Britain - 90 per cent of adults are now aware of the Data Protection Act (DPA) - has expressed an alarming loss of trust in established institutions, including government departments, to safeguard their personal data," states the BCS press release for its Data Guardianship Survey 2008.

UK citizens are remarkably astute? Amazingly astute, I would suggest. I guess people are aware of the principles of the DPA, rather than the fine details of the Act. What I am trying to get at is that the Act is often used as a sort of catch-all phrase for information protection.

SecuritySo, when you speak to a financial organisation about your banking details, you might hear the response: "I'm afraid we can't give you that information because of the DPA." Or a consumer might say to a friend about a retailer: "Well, if they asked for that information, they're breaking the DPA."

In short, organisations and individuals basically use the DPA as a cliche; a way of saying: "That's our information". But what's the truth?

Despite a high awareness of the DPA, the BCS research suggests only 4 per cent of British adults have been the subject of access requests under the Act.

And according to next week's features section in Computing (out 27 March), Dino Wilkinson - senior associate in the communications, media and technology team at Norton Rose - says:

Under English law, any person who either alone - or jointly, in common with other persons - determines the purposes for which, and the manner in which, any personal data are, or are to be, processed is a 'data controller' for the purposes of the Data Protection Act 1998.

All data controllers must comply with the eight data protection principles set out in Schedule 1 of the Act. In particular, the seventh data protection principle requires data controllers to take appropriate technical and organisational measures against unauthorised or unlawful processing of personal data and against accidental loss or destruction of, or damage to, personal data

So, check out the fine print - especially if you're a 'data controller' that intends to use personal data. Other findings from the research include:

  • As much as 77 per cent of respondents said having the automatic right to personal data - if it is incorrect - is very important
  • And 71 per cent of adults said it is very important to be asked for their consent if other organisations or Government departments want access to data originally collected for another purpose
  • Meanwhile, 57 per cent of individuals said it is very important that the handling of data by Government employees is on a sliding scale of seniority – the more sensitive the information, the more senior employees should be

Further reading

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Thursday, 31 January 2008

Invest in technology to safeguard UK innovation

China I wrote recently about the historic importance of UK IT - stating that the inherent talent of home-grown technology professionals is all well and good, but if Chinese firms continue to dedicate 50 per cent of their workforce to R&D, the UK’s lead in innovation will soon disappear (see Further reading, below: China is the home of R&D, not outsourcing).

Computing recently reported that researcher Library House has revealed that venture capital investment in Europe’s next-generation media technology sector took a nosedive at the end of last year, falling 52 per cent in just three months.

At the same, the government’s trade and investment arm, UKTI, wants a national strategy for marketing the IT sector overseas to boost UK firms’ international business and attract inward investment. The IT sector represents 6.4 per cent of UK GDP, second only to financial services at 7.5 per cent.

With the commitment to R&D from Chinese firms and a potential recession in the West, now is an ideal time for government and business to help guarantee the UK’s position at the heart of global innovation.

Full column here: The UK must react to Chinese R&D threat

Further reading

China, innovation and outsourcing:

On UK R&D and the need to boost innovation:

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Friday, 25 January 2008

Wages and recession: Who is paid more than you?

Young_it Wages - the one thing guaranteed to cause consternation amongst gossiping workers at the water cooler. Well, strong-arm tactics from the boss and potential office romances are probably going to cause consternation too. But the thought of your colleagues getting paid more than you is always anathema.

And apparently the UK’s average advertised salary has broken the £32,000 barrier (£32,207, to be exact), according to the excitingly named jobs search engine AllTheTopBananas.com. The figures are based on data from more than 870,000 jobs advertised between July and December 2007.

The search engine reveals the average UK salary has increased by £917 since October 2006 and Dave Martin, managing director of AllTheTopBananas.com, says the results illustrate that wages are still increasing, despite active worries about the performance of the economy.

"Businesses are finding it harder to attract the right staff, and are upping their advertised offers. Throughout 2008 we will watch with interest to see if this trend continues."

His view, I guess - but personally I bet the upward trend drops. First, the £917 year-on-year increases are a legacy of a strong economic performance, with big bonuses for city workers and-the-like that have helped create impressive national figures. Second, public sector workers are already beginning to feel the pinch, with below-than-inflation pay offers.

And I'm not sure businesses are having to up their advertised offers to attract the right staff. If the recession hits full downward tilt, most private sector firms will follow the lead of public sector organisations and provide lower pay offers. Permanent workers, meanwhile, will just be pleased that money is entering their accounts every month and helping to pay the mortgage. Nothing like a bit of optimism, eh?

As for gossiping staff, here are the full regional variations from AllTheTopBananas.com:

  1. London - £38,693
  2. Wales - £31,981
  3. East Anglia - £29,562
  4. West Midlands - £29,356
  5. Scotland - £28,697
  6. South East - £28,298
  7. South West - £27,817
  8. Yorkshire & Humber - £26,853
  9. North West - £26,845
  10. East Midlands - £26,315
  11. North East - £26,078

So, salaries in London continue to outpace the rest of the country, then (surprise, surprise). And a recent analysis of over 4,000 IT positions by recruitment agency CV Screen found technology wages in London had increased by 4.3 per cent during the past 12 months. The rise compares to the 3.4 per cent in the South East.

But as for departmental variations - such as how much Geoff on the help desk gets paid - forget it. The figures don't run that deep. So you'll just have to chin-wag at the water cooler.

Further reading

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Wednesday, 16 January 2008

China is the home of R&D, not outsourcing

China Sometimes the figures just don't match the hype. Take outsourcing to China, for example. Despite the current high profile of the country as a key global sourcing destination (see Further Reading links below), just 5 per cent of leading UK IT organisations are currently using China as base for offshoring, according to independent advisory firm EquaTerra.

So much for China as the new home of outsourcing - especially when you consider 100 per cent of UK businesses currently offshoring all or part of their IT functions are using India as one of their locations.

China, then - to paraphrase Edwin Starr, what is it good for? Well, absolutely lots of things, most notably research and development.

A recent survey by the European Commission found Europe’s research and development spending has been declining since 2000, standing at just 1.9 per cent of GDP ­ and almost half the rate devoted to research investment in China.

Want company-specific examples? Well, Computing - in the guise of editor Bryan Glick - recently took a trip to China, investigating research at Huawei, a manufacturer of telecommunications and networking equipment for customers such as BT, Vodafone and Telefonica. The following example illustrates how Huawei is able to take advantage of lower labour costs to invest big-style in R&D:

Huawei invests 10 per cent of its revenue in research and development (R&D) ­ a comparable proportion to Western IT providers. But lower staff costs make such spending levels deliver more than the firm’s rivals, says Huawei’s chief marketing officer Xu Zhijun.

“Our revenue this year will be about $11bn (£5.3bn), so our R&D investment will be about $1bn (£483m). In absolute amounts we are not investing as much as other big players, but R&D expense lies mainly in people costs," he says .

“If you look at our labour costs in R&D, China’s average is only about one-sixth that of the US and Europe. So Huawei’s $1bn (£480m) investment in R&D will amount to $4bn (£1.93bn) or even $5bn (£2.42bn) in the US or EU.”

To back up the claim, Huawei can point to a remarkable statistic: 48 per cent of its 62,000 employees work in R&D ­ that’s more than 30,000 people, a workforce percentage that no Western firm could possibly match.

Blimey, 48 per cent - where does that leave UK innovation? How can we compete long-term with China, especially when UK plc spends just 1.9 per cent of GDP on R&D?

The historic importance and inherent talent of UK IT professionals are all well-and-good. But if China carries on dedicating 50-per cent of its workforce to R&D, the UK's lead in innovation will soon disappear. Which is pretty discouraging.

Time, then, for the government and the private sector to step up to the plate and guarantee the UK's position at the heart of global IT R&D.

Further reading

China and outsourcing:

On UK R&D and the need to boost innovation:

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Wednesday, 09 January 2008

Security technology is not a priority for firms

2007 was a difficult year for IT security chiefs, with the media keen to report how organisations had failed to protect customer data through poor system implementations or slack human process.

Last March, for example, hackers half-inched the payment card details of more than 45 million TK Maxx customers. Later on in the year, misplaced disks at HM Revenue and Customs placed 25 million people at risk of identity theft.

Such problems and dangers - and the inevitable effect that data leak can have on an organisation's public profile - would surely make IT security a key spending priority? Apparently not, according to consultant Deloitte.

Only 5 per cent of technology, media and telecommunications companies increased their security investment by 15 per cent or more last year. Half of firms allocated less than 3 per cent of their IT budget to security.

Hackers breaking down defences, workers losing information and organisations failing to firm up security - talk about mixed-up priorities, especially as the research also shows just 7 per cent of companies believe they are prepared for future security threats. Other findings from the research include:

  • Only 38 per cent of companies believe their organisation has all the skills and capabilities to respond effectively and efficiently to security challenges
  • A third (36 per cent) of organisations do not track losses of customer data at all
  • Even fewer firms (32 per cent) have performed an inventory of personal information

Maybe firms believe personal data is devalued and the risk of playing fast and loose with customer information is overplayed?

Security specialist Symantec recently found there is a global underworld of criminal organisations selling stolen information. UK-based credit cards are available from as little as £1.03, and full identities – US bank account, credit card, date of birth and government-issued identification number – can be bought for just £7.22.

As Paul B. commented on this blog: "Is the information so abundant that the criminals don't need to charge higher prices? Scary." Indeed it is - but two simple facts should help re-set the balance:

  • Last July, it was revealed that the Information Commissioner’s Office (ICO) received almost 24,000 enquiries and complaints concerning personal information during the previous twelve months
  • Identity theft, meanwhile, costs the UK economy more than £1.7bn per year, according to the UK’s fraud prevention service Cifas

Such figures help illustrates that investing in security has never seemed more worthwhile, despite the apparent low spending priorities of the business.

Friday, 31 August 2007

Single sign-on is route to IT security success

SecurityBrunel University has become the hundredth member of the UK Access Management Federation. The Federation is based on Shibboleth technology and provides a route to single sign-on for multiple resources in numerous departments, giving universities, colleges and service providers secure access to electronic resources.

The Federation is operated by government-funded computer network Janet, on behalf of higher education advisory organisation Jisc and the government's IT development specialist Becta.

Jisc spokesman Philip Pothen told me reaching three figures in membership numbers was 'excellent news'. Which, of course, it is.

It is important, however, to keen an eye on the bigger picture - namely roll-out of the federated system across more of the public sector. Back in March 2006, Nicole Harris, programme manager at Jisc, told me that the eGovernment Unit (eGU) and NHS were keen to investigate the potential of federated access.

And last December, Jisc service director John Robinson told me Becta was making steady progress in its attempts to encourage the UK's 30,000-plus schools to join the Federation, alongside further and higher education institutions. 'There is potential that the whole sector will have access to the federated system by the middle of next year,' he said.

Robinson confirmed that the NHS remained interested, with the organisation keen to investigate the potential of using federated access to allow employees to work securely with education institutions. 'There is potential there - and there's potential for local government too,' he said.

With 100 organisations - including universities, local authorities and Regional Broadband Consortia - already signing up to the Federation, it is to be hoped that other public sector bodies will continue to recognise the security of strength in numbers.

Friday, 24 August 2007

IT skills crisis stretches to academia

Young_it Basically, no-one wants to study technology. But the brave souls that do follow IT into higher education often find technology usage at UK universities is decentralised and disjointed.

Recent GCSE results point to a continuing technology skills crisis, with IT student numbers down almost 10 per cent since last year.

And the number of students taking technology A-level subjects has also dropped again - in 2007 5,610 took A-level computing, compared with 6,233 last year.

Experts suggest universities and employers must work together to ensure the needs of the technology market are met.

But ironically, academic institutions' own IT often remains disparate and disjointed, according to one senior technology expert.

Fahri Zihni, director of ICT at Aston University, told me recently that some universities don't even know how many IT staff they have - such problems are a legacy of institutions being splintered into autonomous units, often with specialised technology staff attached.

UK universities are attempting to get their own houses in order, with Fahri suggesting the centralisation of IT is a key priority for academic institutions: 'They want to measure satisfaction and results.'

But some institutions are making more progress than others, he says, and many universities are still lagging way behind.

Friday, 20 July 2007

Better to be safe than sorry

Computing features editor Chris Slinn recently received an envelope of informative literature about litter bins, bollards and gritters.

This was strange, seeing as I, and not the mysterious Chris Slinn, am features editor of Computing.

While company expenses might stretch to a taxi fare or a meal with a contact, it’s unlikely they’ll stretch to buying me my own grit spreader.

The double mix-up – the wrong person being sent irrelevant information – suggests that someone, somewhere had a lax moment with a couple of databases.

Such negligence is a widespread and unacceptable side-effect of the knowledge economy, where businesses have to deal with an ever-increasing range of customer records.

At the launch of his annual report last week, Information Commissioner Richard Thomas called on all UK chief executives to take the safekeeping of personal information more seriously.

Thomas referred to the inexcusable security lapses of the past 12 months that have seen laptops holding personal details stolen and credit card statements found in waste bags.

The annual report highlights how the Information Commissioner’s Office (ICO) has received almost 24,000 enquiries and complaints concerning personal information.

Such grievances are not hard to find. A mix-up between two banks meant that my friend recently received another woman’s personal banking information.

The bank offered £35 compensation, which is pretty measly when you consider they will sting you with a £30 bill for going just £10 overdrawn.

Which offence is worse – letting your account slip into the red, or giving personal banking details for free to a total stranger?

Perhaps part of the explanation for a lax attitude to personal information is the cheap availability of data.

Security specialist Symantec recently found there is a global underworld of criminal organisations selling stolen information.

UK-based credit cards are available from as little as £1.03, and full identities – US bank account, credit card, date of birth and government-issued identification number – can be bought for just £7.22.

With personal data devalued to such an extent, is it any wonder companies are playing fast and loose with customer information?

Birmingham So what if a user downloads personal data to a USB stick, and leaves it on the seat of a bus in Birmingham? You should care. First, identity theft costs the UK economy more than £1.7bn per year, according to the UK’s fraud prevention service Cifas.

Second, the technology leader will be responsible for ensuring security systems do not allow costly information leaks to take place.

But such activities are difficult to prevent, especially with IT managers finding it hard to deal with the downward trend in security spending.

Analyst Forrester Research found European and US chief information officers spent 7.75 per cent of their IT budgets on security last year, compared with 8.92 per cent in 2005.

However, Forrester also found that a drop in spending is not an indication of security’s declining significance, with 63 per cent of technology leaders suggesting security upgrades are a business priority.

It will be your job to convince the board that spending more on information security is worthwhile.

Monday, 26 March 2007

Second city Blues

How rubbish are Birmingham City Football Club? With a far from glorious history and an almost empty trophy cabinet, very rubbish indeed would seem to be an appropriate answer.

Euro_cup The second city's second club's only major honour came in 1963 when they won the League Cup, beating Aston Villa in a two-legged final. Beating your local rivals would seem like good news, at least. But fans of Birmingham - or the Blues, as they are known - should not get too cocky. The Villa can boast 21 major hours, including the European Cup, seven League titles and seven FA Cup wins.

Fans of the Blues blame a curse for the club's bad, or should I say, appalling luck. Birmingham's attempt at a football ground was built on a former gypsy camp - and the gypsies were reputed to have put a curse on the ground when they were evicted.

Enough is enough, says one Villa fan - who has used the government's e-petitions system in an attempt to out Birmingham's gypsy curse excuse as a sham.

Launched in November 2006, e-petitions allow users to electronically create and sign petitions - before delivering the request directly to Downing Street.

The Villa fan's request - launched by Dan Carroll - states the following: 'We the undersigned petition the Prime Minister to ban Birmingham City fans from blaming an apparent gypsies' curse for being the reason they never achieve any success.'

Further details from the petition creator state: 'Let's face it, have you ever heard anything so patently ridiculous? The reason they have had no success is that they are rubbish!'

At this point, I should make my allegiances clear: I am an Aston Villa supporter - and I too believe the curse and Birmingham City, more generally, are rubbish.

But the public at large and the UK government clearly do not agree. Dan Carroll's petition was rejected for the following reason: 'It was intended to be humorous, or have no point about government policy.'

Which is fair enough - Carroll's petition was a bit silly and I cannot see it affecting wider, public sector thinking.

More to the point, the Blues believe the curse has now been lifted - given that the date of the 100-year hex apparently passed on Boxing Day, 2006.

Proof, however, will be on the pitch. And with Birmingham challenging at the top of the Championship, am I worried? Nah (well, not too much).


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