Showing posts with label Business/IT fusion. Show all posts
Showing posts with label Business/IT fusion. Show all posts

Tuesday, 8 May 2012

Onbekend maakt onbemind

Veel KMO’s stellen zich vandaag de vraag hoe ze kunnen overleven in het huidige economische klimaat.  De kredietcrisis, het internet en een toenemende globalisering hebben de kaarten goed dooreengeschud. Vaak gaat de focus teveel uit naar het overleven en te weinig naar vernieuwing.  Technologie wordt daarbij vaak over het hoofd gezien als middel om zich te onderscheiden van de concurrentie.   
In de ICT monitor van Unizo (ICT bij de KMO: een stand van zaken anno 2011) lezen we bijvoorbeeld dat 84% van de Belgische KMO’s geen full time werknemer in dienst heeft die zich bezighoudt met de IT infrastructuur. Het merendeel van de KMO’s moet dus een beroep doen op externe dienstenleveranciers en maakt bovendien niet eens jaarlijks IT budget op. Slechts vier op de tien KMO’s geloven dat IT een bron van concurrentievoordeel is. Meer dan 60% zal enkel en alleen investeren in technologie als het tot een kostbesparing leidt of bijdraagt tot een stroomlijning van de kernactiviteiten. Diezelfde 60% moet wel toegeven dat IT eigenlijk een ver van hun bed show is dan ze weinig besef hebben hoe ze IT kunnen inzetten om tot betere bedrijfsresultaten te komen.

Investeren in IT loont en leidt tot een competitief voordeel
Investeringen in IT hebben een grotere impact op het bedrijfsresultaat dan investeringen in marketing of onderzoek en ontwikkeling (R&D). Dat is de opzienbarende conclusie van een groep Amerikaanse onderzoekers die 452 bedrijven hebben doorgelicht. Door de juiste IT initiatieven op te starten, kunnen bedrijven zich differentiëren ten opzichte van de concurrentie waardoor ze een duurzaam competitief voordeel hebben. Investeringen in technologie kunnen dus een grotere omzetgroei generen dan wat marketing of R&D kan realiseren. Dankzij IT kunnen bedrijven namelijk een nieuwe klantenpropositie aanbieden (denk aan mobiel bankieren), een vernieuwd business model uitrollen , alternatieve marketing- of verkoopkanalen opzetten (eCommerce) of de relatie met de klant verbeteren. Elke euro die ze per medewerker extra investeren in IT, doet de omzet met 12 euro stijgen! Hoewel de stelling voornamelijk opgaat voor bedrijven in de dienstensector, zien de onderzoekers ook positieve resultaten voor meer productiegerichte ondernemingen.  Een belangrijke nuance is wel dat projecten gericht op bedrijfsgroei meer effect hebben dan kostenbesparende IT-initiatieven.  Voor veel bedrijven is namelijk het vet al van de soep en valt er niet veel meer te besparen.  Initiatieven gericht op het verlagen van de operationele kosten hebben op het einde van de rit dan ook minder impact op het bedrijfsresultaat want ze zijn ook makkelijker te imiteren door de concurrentie.
De keerzijde van de medaille
Dankzij IT kan je betere bedrijfsresultaten voorleggen maar als je het niet onder controle hebt, dan kan je ook zwaar verliezen.  Zo zijn er studies die aantonen dat de 500 grootste bedrijven ter wereld, elk jaar zo’n 14 miljard dollar verliezen als gevolg van mislukte IT projecten.  De belangrijkste oorzaak van de mislukking?  Een gebrek aan focus en betrokkenheid van het management of de directie. Met andere woorden, een bedrijfsleider of CEO die zich niet verantwoordelijk voelt voor  IT investeringen, hypothekeert in zekere zin de toekomst van het bedrijf. 
In vier stappen naar optimale afstemming tussen bedrijfs- en IT-strategie 
20061021_6960...Tire tracksSinds de jaren 90 houden tal van onderzoekers zich bezig met de vraag van 1 miljoen. Wat is de impact op het onderliggende bedrijfsresultaat als de investeringen in IT afgestemd worden op de bedrijfsdoelstellingen? In deze context wordt vaak gesproken over Business/IT alignment.  Een echte Nederlandse vertaling voor alignment bestaat er niet. Uitlijning komt eigenlijk het dichtste in de buurt om het  mechanisme te beschrijven waarbij bedrijfsdoelstellingen, operaties, IT infrastructuur en IT strategie op elkaar afgestemd worden.  Denk hierbij aan een auto waar alle vier de wielen uitgelijnd moeten zijn om een optimale wegligging te garanderen.  
Een cruciale voorwaarde bij het afstemmen van deze vier dimensies is het bepalen van een duidelijke bedrijfsstrategie.  Zonder duidelijke bedrijfsdoelstellingen, houd je de wagen niet lang op de weg want je mist een wiel.  Duidelijke bedrijfsdoelstellingen houden in dat de onderneming keuzes moet maken. Deze keuzes bepalen op hun beurt hoe je IT wil inzetten. Als een bedrijf zich bijvoorbeeld toelegt op het ontwikkelen van nieuwe producten en diensten om zijn marktaandeel te vergroten, dan loont het om in andere IT-systemen te investeren dan wanneer je bijvoorbeeld de kostprijs van het productieproces wil verlagen.  
Een tweede stap bestaat erin om te onderzoeken in hoeverre bestaande IT systemen de operatie (kernactiviteiten) op een adequate manier ondersteunen.  Dit vraagt een duidelijk inzicht in het bedrijfsmodel en USP’s van de onderneming. Een ERP systeem helpt bijvoorbeeld om logistiek, productie en distributie beter op elkaar af te stemmen en is dus belangrijk voor bedrijven die kosten-efficiënt willen werken. CRM wordt een cruciale bedrijfstoepassing wanneer je de klant beter wil bedienen en streeft naar een hogere klantenloyauteit (customer intimacy). Business Intelligence oplossingen helpen dan weer om de juiste beslissingen te treffen op het gebied van marketing en de verkoopresultaten op de voet te volgen.
IT systemen kunnen cruciale bedrijfsprocessen faciliteren of ernstig verstoren. Als je aan productiviteit moet inboeten omdat je ERP systeem onvoldoende inzicht biedt in de productieplanning, dan kan je gerust spreken van een serieuze bottleneck.
In een derde stap bekijk je waar het grootste deel van je IT investeringen naar toe gaan.  De meeste bedrijven spenderen gemiddeld 80% van hun IT budget aan onderhoud van de IT infrastructuur en bedrijfscontinuïteit.  Met de resterende 20% kan er dan met mondjesmaat vernieuwd worden.  Als bedrijfsleider moet je jezelf de vraag stellen of deze investeringen wel voldoende vruchten afwerpen. Beperk investeringen in technologie die geen of weinig concurrentieel voordeel creëren.  Denk hierbij aan voor de hand liggende toepassingen als dataopslag, email, telefonie of personeelsbeheer. Probeer de kosten te drukken en ga voor dit soort systemen op zoek naar een leverancier of een cloudoplossing waardoor je ruimte vrijmaakt voor IT investeringen die echt waarde creëren.  Investeer het vrijgekomen kapitaal bijvoorbeeld in een webshop of CRM toepassingen waardoor je je kan differentiëren in de markt. 
De laatste stap bestaat uit het opmaken van een IT plan en het vaststellen van een jaarlijks IT budget. Bekijk je IT budget als een investering  en weeg kosten en baten af.  Daarom is het belangrijk dat je voor elke investering in IT een business case maakt.  Een business case biedt antwoord op de vraag wat de mogelijke opbrengsten en risico’s zijn en in welke mate de investering een positieve bijdrage kan leveren aan de bedrijfsstrategie.  Kies voor IT investeringen die de bedrijfsdoelstellingen helpen realiseren en een competitief voordeel creëren.  Focus je niet alleen op de initiatieven die kostenbesparend werken, want die zijn makkelijker te imiteren door de concurrentie en dragen minder bij de tot de groei van de onderneming.
Voor de meeste KMO’s is IT een onbekend terrein en missen ze de nodige (interne) competenties om technologie als een strategisch wapen in te zetten.  Daarom werd er een traject ontwikkeld op maat van de KMO.  Dit stelt de bedrijfsleiding in staat om een beter inzicht te krijgen in wat IT voor de onderneming kan betekenen. In het traject bekijken we niet alleen de IT-dimensie maar besteden we ook aandacht aan het operationele luik . Daarnaast wordt de KMO geholpen om de doelstellingen scherp te krijgen en de gewenste bedrijfsstrategie uit te stippelen. Op basis van de verschillende factoren, strategische profilering en een doorlichting van de IT-infrastructuur bepalen we samen met de bedrijfsleiding een IT-blueprint.  Deze IT-blueprint geeft aan welke IT-investeringen een toegevoegde waarde voor het bedrijf creëren en waar de focus van het management moet liggen (IT governance).  Deze focus vertaalt zich in een strakkere aansturing van IT  en meer betrokkenheid van het management. Denk aan de auto, daar ga je toch ook regelmatig mee naar de garage voor een onderhoudsbeurt. 
Eigenlijk is investeren in IT niet anders dan autorijden.  Regelmatig de bandenspanning controleren, olie verversen, voldoende benzine in de tank en tijdig vervangen van de cruciale onderdelen zorgt voor een langere levensduur van de wagen.  Besteed daarom voldoende energie en tijd aan technologie als je wil voorkomen dat je halverwege met pech komt te staan en ingehaald wordt door je concurrenten. 

Wednesday, 4 April 2012

MIT finds that investments in IT increase profitability

Below I would like to share an interesting quote from the latest issue of MIT Sloan Management Review : recent study found that more recent information technologies — those deployed since 1995 — have a significant positive impact on profitability.  They write that:

IT investments had a marked positive effect on revenue growth; for example, a $1 increase in IT expenditures per employee was associated in our study with a $12.22 increase in sales per employee. However, the effect of an increase in IT expenditures on reducing overall operating expenses was negligible in our sample of companies.
The article continues:
Further analyses of our data suggest that as industries become more competitive, the effect of IT on profitability increases. IT investments also had a greater effect on profitability in the service sector than in the manufacturing sector. A possible explanation for this finding is that services allow greater IT-enabled customization and personalization.
One key takeaway from their research is that executives should accord higher priority to IT projects that have the potential for revenue growth over those that focus mainly on cost savings.

You can download the full study here


Source: wikibon.org via Jeroen on Pinterest

Wednesday, 7 March 2012

Untapping the hidden potential of IT: seminar on 29 & 30 March

For the fifth year in a row, we are running together with IRM UK our seminar on "successfully aligning business and IT" which takes place in London on 29 and 30 March. Exclusively for the readers of this blog you can now register with coupon code ABIT 2012 and get a 10% discount on the registration fee.  Book your seat today and discover how to become an IT-savvy organisation in turbulent times and rapidly changing environments.
"A lively and enlightening seminar that revealed some very practical tips on aligning IT to the business. I learnt some effective ways that business and IT can work together towards a single goal of creating solutions that add value. This seminar exceeded my expectations."
Leighton Keenan, ICT Manager, Bron Afon Community Housing

Why you cannot afford to miss this seminar: 


Did you know that "the world’s largest 500 companies lose more than $14 billion* every year from failed IT projects alone. Only companies that receive focused board direction on IT-related risk will have a competitive advantage over those that don’t.”
Successful alignment requires companies to have a clear view of strategy and operations, the plans and the activities. Only with increased visibility they identify the barriers to alignment and close the gaps that will keep them from competing more effectively. Ineffective use of information technology combined with a separation of business and IT will make company performance suffer. In today’s new economy, taking business decisions without consideration of IT will have damaging outcomes and introduce significant risk (*Taming Information Technology Risk)

Below you find a summary of what will be covered in the seminar and why you should attend

Survival in today’s complex business climate demands effective and decisive action.  Organizations can only remain competitive if they can keep up with the challenges of the new economy and are capable of continuously adapting strategy, operations and IT investments.  While Business executives are confronted with new paradigms like the consumerization of technology, cloud computing, big data and the rise of the mobile customer, they increasingly wonder how to fit IT into the equation.

Technological and social trends become a real management concern as they risk to affect business strategy and operational execution. In the current business climate, IT not only has the potential to evolve towards a ‘strategic’ role in support of the chosen business strategies, it also bears the promise of shaping new business models.

Untapping the hidden potential of IT

IT-savvy organizations that understand how to leverage investments in technology to their advantage continue to outperform their competitors with double-digit figures.
Strategic alignment of IT exists when an organization’s goals, activities and information systems that support them remain in harmony. Alignment is a true management concern and not a ‘one and done’ activity - it is a journey towards a new way of doing business where IT is managed in a way that mirrors the strategic priorities of the organisation.

Who should attend

This is the one-stop-shop for Business, Finance, Marketing and IT executives that want to learn how to effectively improve the relationship between Business and IT.  This seminar address both the business and IT concerns and makes the delegates familiar with the current thinking and essentials in the field of business/IT alignment. IT professionals will learn how to incorporate best practices and improve IT leadership and alignment capabilities.  Business professionals will benefit from the mechanisms that ensure IT-enabled investments pay off in the short-run and long-run:

Learning objectives

In this two-day workshop, you will discover everything about the essentials of alignment and how to put these into practice. Thanks to a blended format of teaching and group assignments, you will get a better insight into the crucial enablers for Business/IT alignment.  Throughout the sessions, delegates get the opportunity to share their personal experiences and concerns while learning from their peers.  After two days, delegates will be able to build their own business/IT alignment roadmap based on the following fundamentals.

  • Intelligent IT steering
  • Portfolio Management
  • IT budget control and reporting
  • The evolving role of CIO
  • IT leadership and communication
  • Project Governance and management methodologies
  • Enterprise Architecture
  • Integrated business/IT planning
  • IT marketing: a quick win to improve the relationship between business and IT

Program outline and modules

Module 1: Seeing the signals of misalignment
  • Why Business/IT alignment is the primary concern of business and IT executives
  • The barriers to alignment
  • The evolving role of the CIO
  • Technology trends and the future of the IT department
  • How IT can reshape business strategies and create sustainable competitive advantage

Module 2: A shared responsibility
  • The alignment trap
  • Why alignment should be a shared responsibility
  • Why IT people should think like business people (and vice versa)
  • From Enterprise Architecture to Business Architecture
  • Intelligent IT governance: integrating business and IT planning
  • IT-portfolio thinking: moving beyond the cost of IT

Module 3: Culture, competences and IT marketing
  • Overcoming the barriers to alignment
  • Building a new (IT) culture
  • It is not about communication, it is about IT marketing
  • Relationships do matter: how to get the right skills on board
  • The hybrid organization: adapting to an evolving business and IT landscape

Module 4:  The alignment journey
  • Managing IT like a business transformation program
  • Building an alignment roadmap
  • Choosing the right IS strategy to support the business transition
  • The long tail of IT: Enterprise 2.0 puts the users back into the driving seat

Monday, 5 March 2012

He who has the gold rules... why CEOs should take ownership of IT investments


In the next couple of years, we are expecting a massive growth of the digital universe.  Mobile devices like smartphones and tablets are rapidly outpacing the traditional desktops.  By the end of 2011, there were in fact more mobile devices than people on earth. By 2015, Gartner expects that more than 3 billion people will be online and of course all these digiphiles come with a digital footprint.  Through their mobile devices they all take part in a global sharing frenzy where everybody happily adds to an ever increasing mountain of data. Big Data is what they call this piling up of data and it should be on top of every CEO's agenda.  Big Data is not an IT issue, it is going to be a real business challenge in 2012 and beyond.  It will require substantial investments in technologies that enable enterprises to store and mine the information haystack. On top of that, other evolutions like the cloud, IT consumerization, social media waves and the Internet of things are getting ready to disrupt business-as-usual.

In essence, these might look like technology trends but in fact they are all business trends that come with a techy flavour.  These evolutions will fundamentally change the way we will be doing business in the future.


The gold rule: he who has the gold, rules 

For decades, we have tried to figure out who should be in the driving seat for formulating the firm's technology strategy.  In an ideal world, business and technology planning go together like horse and carriage but in many cases, we have put the cart before the horse.  No way you can come up with a decent IT strategy if the strategic direction of the company has not been formalized and vouched for.  And if there is no business strategy to align with, where does this leave your IT department?  Well, they are flying blind.  Flying blind basically means that - without a proper business roadmap - you are heading for a collision course and this will hurt big time.

BCS, The Chartered Institute for IT, found for example that only one in eight information technology projects can be considered truly successful (as in meeting the original time, cost and requirements criteria).  They calculated that the cost of project failure across the European Union was €142 billion in 2004.  The Standish group comes up with similar figures (their CHAOS report is a must read for every CFO by the way). That is a lot of money down the drain and the only person who can stop this is the CEO.  The CEO is ultimately accountable for the Profit and Loss of the company and has to ensure that  investments, be it in marketing, R&D or technology pay off in the long run. It is up to the CEO, together with the board of directors of course, to ensure that the firm's resources are well spent and that there is a decent return on capital employed (ROCE).

How to protect your gold

The typical medium-sized or large company will spend between 1 % up to 10 % of its annual operating revenue on IT and you can be sure that a substantial percentage of the total investment budget will vanish into thin air as a result of misalignment.  So what's the best way to avoid these disinvestments and subsequent dilution of resources?  There is only one way to fix this... in my view, it is time the business took ownership of the IT investment strategy.

Not sure where to start? Well, no worries... together with IRM UK we are running a seminar on successfully aligning business and IT end of March. During this two day seminar (click here for the agenda), you will learn everything you always wanted to know about the mechanics of alignment. You will learn how to connect the dots between people, processes and technology and discover why intelligent governance is the key to protecting the firm's IT turf.  You will meet peers with whom you will work on topics like Enterprise Architecture and IT marketing.  During these two days, you will discover how to manage the alignment journey like a business transformation program...

There are still a couple of seats left so grab the opportunity and protect your gold: register here and get ready for the new economy!


Monday, 15 August 2011

The ROI of Business/IT alignment, it’s not about Running on Instinct anymore

An increasing number of CIOs are uncomfortable in the boardroom when asked how the IT function will perform when the enterprise goes global. In particular, CIOs working in industries such as healthcare, energy, tourism, telecommunications and banking are struggling to keep up with the global visions of their organizations.

What should CIOs know in order to stay ahead of the curve?

First, globalization not only affects the way the enterprise will be run, but it also has a fundamental impact on the way IT has to be managed and governed.
When companies decide to develop their business on a global scale, technology either becomes an enabler or an inhibitor in executing the expansion strategies. While his business peers pursue new territories, the CIO is expected to manage an effective IT function and also assume the role of business visionary.

What we call the “adaptive” CIO is someone with a clear vision of running technology in a borderless world. This new-style IT executive understands that global distribution channels and operations on different continents require an agile IT strategy. Combining business savvy with a holistic view is what differentiates an adaptive CIO from his less-fit peers.

Here is a five-step plan that will prepare the CIOs for taking their organization on this global journey


1. Develop an enterprise-wide IT strategy

CIOs need a clear view on their organization’s supply or value chain. A good global operating model requires IT to take a unified approach to Enterprise Architecture and provide the technological capabilities to support enterprise-wide processes. In a globalized context, the need for integrated and standardized business processes determines the need for IT decisions to be taken on a central level.
The enterprise IT strategy itself should center on a flexible, “plug- and-play” IT architecture that supports global processes and relies on shared services centers, the Cloud and virtualization. Today’s technology platforms must provide web-oriented features and offer the business an extended portfolio of collaboration, intelligence and mobile services that adhere to the “anywhere, anytime” credo.

2. Set up an intelligent governance framework

Sound governance balances the cost of running IT with productivity improvements and business continuity. It aligns the IT governance archetype with the current operating model. Successful CIOs understand that strategic IT investments have to be taken as a duopoly: a duopoly is a governance style where both business and IT executives are involved in the decision-making.
When cost reductions become the prevailing imperative, an intelligent approach to IT funding will safeguard the enterprise from making the wrong technology decisions. In other words, organizations must plan and monitor IT investments across the enterprise instead of managing silos. The focus of the adaptive CIO is on IT initiatives that streamline cross-border operations and facilitate the roll-out of web-oriented distribution models for e-banking, trading or logistics functions.

IT executives that want to set up an effective governance ecosystem for IT investments can resort to the VALIT 2.0 framework. They will benefit from a transparent RACI matrix that determines accountability of business and IT executives in the field of value governance, IT investments and the IT portfolio.

3. Develop and attract business competencies

Next-gen knowledge workers have the best of both worlds, and in the case of IT, they combine business competences with technology expertise. Running in hybrid mode means that the CIO attracts lateral thinkers, communicators, and people with a mixed business/IT background. They do not isolate themselves from the business crowd but rather have the ability to mix and mingle with non-IT peers. Similarly, IT leadership in 2012 assumes IT people to take up a liaison function with the demand side of the organization and play the role of relationship builder. The new IT leaders thrive in an environment of multi-sourcing and intensive vendor management, and they adapt swiftly to a new ecosystem. The next generation of IT employees will have to infuse the IT organization with business-related competencies, preparing it for a more strategic role and sustainable role.

4. Bring conversations into the organization 

Product development, customer service and market expansion will become more effective when there are is Just-In-Time Intelligence - that is, access to accurate and timely data on demand. Social media is redefining the way consumers act and interact with the enterprise. Now, clever IT executives see the increasing importance of globally accessible information as a way to deploy a master information plan. This blueprint goes beyond the simple function of storing data; it sees the enterprise information architecture in terms of collective intelligence, co-creation, content sharing and activity streaming.
Enterprise content-management systems combined with Enterprise 2.0 collaboration technologies such as wikis, activity streams, unified communications or social networks, will prepare the organization for the looming challenges of the digital era. The corporate intranet assumes the role of a global knowledge hub and offers aggregation, localization and mobile features. In this model, employees can easily share, publish and comment upon information that goes around the enterprise. Collaboration platforms facilitate cross-border community-building and will let the enterprise manage collective data to improve customer intimacy and decision making. In the 2.0 ecosystem, the knowledge worker turns into a conversation manager thus improving the Return On Information by leveraging the implicit knowledge in the organization.

5. Be the fittest of the pack

While it’s clear that the role of the CIO is evolving from IT executive to business executive, making this quantum leap will require a holistic approach to managing IT in a global business landscape.
Adaptive IT executives take an enterprise view of IT governance. They streamline IT demand and supply and align them with global supply chains and value chains. Systems, tools and processes support intercontinental business units.
Nevertheless, even adaptive CIOs can’t achieve these goals in a vacuum. They have to respond quickly to market and industry changes and become forward thinking and opportunity-driven. The next-gen CIO understands that bringing in the cloud, virtualization technologies, multi-sourcing or data security are decisions that require executive commitment.
To achieve all this, aligning business and IT strategy requires more than the yearly budget round. It calls for integrated structures, processes and relational mechanisms where IT decisions are seen as investments and enablers of the business strategy. In that perspective, the year 2012 will definitely raise the bar for CIOs and IT executives.

If you want to learn how to cope with the challenges IT leaders are facing today and tomorrow, you can enroll yourself for this fall’s IT seminar on “Successfully aligning business and IT” on 24-25 November 2011.

During this two-day workshop you will learn more about the role of communications, governance and enterprise architecture as tools for better business/IT alignment. Interact with your peers and engage in conversations on the role of IT, innovation and technology investments in times of changing business priorities. The workshop is hosted by Jeroen Derynck, a seasoned speaker and expert in the field of Communications, IT Strategy, Program Management and Business Administration. To found out more about the seminar, download the agenda here.

Tuesday, 11 January 2011

In 2011 CIOs better prepare for some chaos

It's that time of the year again... the list of new year's resolutions, predictions and outlooks on Enterprise IT for 2011 are all over the place. Anything new? Nope. Anything surprising? Nope. 

Sure 2011 will be the year of social media, careful steps into the (enterprise) cloud, increasing your bandwidth, going mobile, Windows 7, advanced analytics, iPads and other tablet-like clones, digitizing the enterprise, renewing and virtualizing the data center and the renaissance of the new CIO. But frankly my dear, this is the same list as in 2010, 2009 and 2008.  But aren't we forgetting one thing?  Yep, doing a reality check.  
Most companies have suffered from the recession and what will companies do when they are in dire (financial) straits?  Right, they slash the budget.  And guess who is the first in line to walk away with less money.... it is the CIO. 

If you have not invested in innovation, you are out of the game in 2011

Over the past years, most innovation budgets have been cut to the absolute minimum because IT executives could neither convince the board nor demonstrate a tangible ROI for most IT-enabled innovations.  In parallel, baseline budgets (i.e. keeping the lights on) were also subject to downsizing.  
Outcome of this equation is that your IT shop is running on obsolete and old-school technologies.  Any innovation or change budget left is used to either do a renewal of core systems, make the first step towards SOA/SBA or virtualizing the data center.  It could be worse, some IT departments still haven't adopted portfolio thinking either in the projects or in the services arena. You would be surprised to see how many companies are still struggling with CRM, SCM, ECM, DMS, BI and other first-gen business technologies.  So putting the 2011 wish list into the right perspective and seeing all those innovations topping the list, then I'm afraid we'd better wake up and smell the coffee.  No chance the CIO can increase the innovation budget if IT operations are not run in an efficient and effective way.  No way he will get funding for social media, cloud computing or mobile technologies if the business still goes without a single customer view and swears by Excel as the holy grail of data reconciliation. 

So what's my bet for 2011 priorities?  Well the same as 2010, 2009 and 2008... back to basics, building up core capabilities, on-time delivery of strategic IT initiatives, bringing the run budget down to an acceptable level, efficiency & effectiveness and creating operational efficiencies through automation. Of course, business/IT alignment should also be added to this list but then again - shouldn't business/IT alignment be one of those recurring action items on every CIOs new year's resolution list?  Wishing you all the best for the new year and may all your ambitions become true....

Thursday, 6 January 2011

On CIO priorities, Enterprise IT, IT governance and much, much more

This seminar introduces the major alignment concerns that CIOs face today. The two day bootcamp aims at offering IT professionals a pragmatic approach towards alignment, which is underpinned with rock solid models and real-life lessons learned from companies and industry sectors who have achieved better Business/IT alignment.

Delegates will learn how to: 
- Apply Alignment models and mechanisms
- Improve the relationship between business and IT
- Implement intelligent IT governance: what works and what does not?
- Position and market the IT department
- Build trust and putting IT on executive agenda
- Build a lasting relationship with senior business managers and the board
- Manage the change towards an aligned IT...and how to maintain sustainable alignment
- Avoid over-engineering of alignment structures, processes and mechanisms

Thursday, 11 November 2010

Time to RAISE the bar

What's the role of IT in today's enterprise? Well, it depends... It depends on the industry sector, nature of your organization, culture and maturity of your enterprise IT. Henderson and Venkatraman already described four IT archetypes back in the Nineties by taking four different perspectives to the role of IT and the business:


1. Strategy execution: this is the traditional perspective in which business strategy drives organizational design, and organizational design determines what IT infrastructure and processes will be needed. Business management makes strategy, and IT management implements it.
2. Technology potential: business strategy is still the driver, but collaborates with IT to work out a strategy to support the business strategy and the corresponding specification of the required IS infrastructure and processes. This is IT in a reactive role. The business drive the technology vision and IT assumes the role of architect.
3. Competitive potential: In this perspective we are looking at new technological solutions to gain competitive advantage and enable growth.The IT department is the catalyst for business change i.e IT-enabled innovation. The business are visionaries and see how they can transform the business with technology and create a competitive advantage.
4. Service level: In the last perspective information is the core product. Business management prioritizes which IT investments and determines the IT playing field. The role of the IT is to make the business succeed through service excellence.

However, while the Henderson model describes who is driving the IT strategy, it does not mention the basic building blocks of your IT strategy. That's where you can use my RAISE model. RAISE describes the core functions of your IT department along five dimensions:

R = Reduce costs

A = Access information anywhere

I = Improve operational efficiency and effectiveness

S = Secure data and channels

E = Enable growth


I found that this model is easy to work with as it helps organizations to cluster their technology opportunities and define priorities in each domain. Curious how to embed this in your 2011 IT strategy? Well come and find out during IRM UK's workshop on strategically aligning business and IT on 25 and 26 November in London. Click here for more details on the program and prepare yourself for jumping the curve with your Enterprise IT. 

Thursday, 5 November 2009

Do we still need alignment - hell yeah!


I have been invited to run a workshop on 26 and 27 November in London. If you look at the outlook for the Information Technology not everything is so rosy. CIOs are forced to cut down their spending with double digit figures and still find it hard to prove the real value from IT. A well-thought strategy is the name of the game here - that's why I'll introduce strategy maps and Balanced Score Cards as working instruments for your alignment program. Of course, Enterprise 2.0 is on the agenda as well - because it will generate sustainable value in medium and long term. For the rest of the program, just click here: book your seats now as we have limited capacity. Look forward to meet you in London and share with you all the tricks to bridge the gap between your business and IT departments. 

Thursday, 27 November 2008

Business/IT Fusion: beyond alignment

I have written a couple posts about the book on Business/IT fusion I was working on and I am happy to announce it is due for publication in January 2009. My role was not only limited to mere fact finding and research but also to work out some of the key concepts we coin in the book. Intelligent Governance, the 5 Cs of IT, the right-brain CIO are just a couple of the new rethoric that your IT manager might start to use as from next year. If you want to find out more about the book, you can go to www.it-fusion.com or read the synopsis here

Sunday, 13 July 2008

Interactional Synchrony for IT

Just back from a trip to Oslo - combined business/pleasure. I can recommend spending some time in this city, good food, lovely spots and in summer days you are likely to have a 7/11 effect. Sun does not really set during the summer in Norway and you might end up seeing the sunny side of life for at least 20 hours a day - it does not really get dark and even at two at nite, it is still light skies! Not so good for insomniacs though.

While I was in Oslo I started reading Malcom Gladwell's the tipping point. Interesting stuff about diffusion of new ideas and products. The tipping point effects is that very momentum that creates breakthroughs... or as Gladwell defines it "the levels at which the momentum for change becomes unstoppable". The concept finds its origins in social psychology and can be seen in relation to other concepts such as the moment of the critical mass, the threshold, the boiling point, spreading of a virus or social epidemics.

In his book, Gladwell also refers to the term Interactional Synchrony: Interactional synchrony marks the moment when individuals morph into a cohesive group. People who "click" emotionally will start synchronizing their movements and body language. They will mirror each other's posture, speech patterns and movements thus creating harmonious whole. (various sources).

Now, what really struck my eye is that Interactional Synchrony or automatic synchronizing can even be pleasurable and has been noted to create energy surges. This balletic-like coordination of a group of people has been found to have an energizing effect on all members.

Energy, interaction, synchrony, emotional click, cohesiveness and harmony... All words that can be the descriptors of tomorrow's IT.
I have already referred to business/IT fusion as a way to melt business and IT together. But fusion cannot be started without enough energy... without these energy surges that create sparks and lite the fuse. Interactional synchrony is what is needed between business and IT:

There has to be an emotional click between the two otherwise it won't work. But if the feeling is there - and in an business-like context you'd describe this as a trusted partnership - then the two can do the tango! Their strategies become synchronized, energy is created and there is harmonious interaction.

Perhaps this mash up of social psychology and IT management seems to be a bit far fetched but if you come to think of IT: IT is about people, processes and platforms. You can digitize the processes and virtualize the platforms but you cannot digitize the people.... So in the end it is all about the right people connecting with each other. Connecting as in interacting, communicating, collaborating, sharing, liking and synchronizing.

If you can see it this way, Interactional synchrony in IT doesn't sound so strange after all, does it?

Monday, 23 June 2008

The CIO guide to the galaxy

I have just finished a part on IT strategy for "ze book". It's about IT strategy making and selling and is part of the roadmap towards business/IT fusion. To bring you into the mood, I want to share an excerpt with you. To give you the right perspective, IT strategy is step 5 of the 10-step-transformation program.



The four preceding steps are:

1. How the CIO can get himself in shape
2. Which data and information he needs before stepping into the boardroom
3. Magical Quadrant with the four IT archetypes and business impact
4. How to find out what stakeholders want: service, agility, enterprise IT or innovation.

"If he has carefully followed the previous steps, the CIO now has all the necessary ingredients to build his IT strategy: he has to use the input from the business, different IT scenarios, figures about efficiency, effectiveness and perform a maturity assessment. A good understanding of the capability of the IT organization will serve as final input for formulating his IT strategy.

It is important to involve key players in both the IT and business organization at this stage so everybody has the opportunity to become involved, participate and take ownership of the strategy. A strategy which is not supported by both business and IT executives will not yield the expected results.

Building blocks of your IT strategy

1. Your initial talks with the business and their decision on your role will give you a reason for existence. Your role in the enterprise should be reflected in your IT shop’s mission and how it plans to fulfill the business expectations.

2. The mission will consequently have to be translated into corporate values. The corporate values tend to be more people-oriented and are also the (as is or to-be) descriptors of your organization culture. Quigley (1994) defines corporate values as "the rules or guidelines by which a corporation exhorts its members to behavior consistent with its order, security, and growth.

3. The next step is to define your vision or mental image of a possible and desirable future state of the organisation (Warren Bennis and Burt Nanus, in "Leaders: The Strategies for Taking Charge"). A vision articulates a credible, realistic attractive future for the organisation" and is more than unfettered ambition or being future oriented. It incorporates cultures, beliefs, value systems and a myriad of force fields.

4. Next in turn is to define your IT strategy and how you want to transition from the current state to the future state: IT strategies tend to be multi-faceted and will consequently be centered around different building blocks like : Governance, IT spending, business applications, processes, people, Skills landscape technology, architecture, service, compliance, program delivery and the like. An IT Strategy should also have notions of strategic themes and strategic initiatives/priorities of the IT organization.

5. The dashboard: The purpose of an IT strategy is to bring the organization to a desired or future state. As similar transitions typically span two to three years, it is important to measure progress in all individual areas. Depending on the maturity of the IT organization, metrics can be defined in terms of both internal or external oriented performance. Metrics should also be closely linked to the IT archetype role as described in the previous paragraph. For those who want to read more about dashboards and Balanced Score cards, Kaplan and co have done extensive research in this domain and will provide valuable input when defining Business or IT balanced score cards. In an ideal world, Business and IT will have shared objectives, thus explicitly linking performance at enterprise level. One good piece of advice, define your objectives the SMART way and be realistic when setting your goals thus allowing for quick wins along the journey.

6. Strategy roadmap: A strategy is one thing but somebody will have to do it. This is why you will need a strategy roadmap or execution framework. The strategy roadmap is about the tactics and how you plan for improvement. Where the strategy is about the what, the strategy roadmap is about the how, the resources, the budget, the processes needed to get you there. An IT execution framework will tell you how you can achieve: efficient and effective project delivery (CMMi, project portfolios), Quality service management (ITIL), effective IT investment policy (governance), quality people (Talent management and active recruitment campaigns, advanced technology (Enterprise Architecture, Standards, SOA) etc.

7. Individual Goals (Performane Management): a good HR policy will link the individual goals to the corporate goals. Of course, you will not be able to consolidate all corporate goals to an individual level but by linking individual with corporate goals, a generic performance management framework can be brought to life.

8. Corporate Identity and brand equity: one of the more right-brain elements in any strategy is that of the corporate identity and corporate image. How do you want to be perceived by your employees and the outside world. Corporate identity extends beyond the “visual identity” such as logos or corporate branding guidelines. It encompasses also corporate communications (how you communicate) and corporate behaviour (internal values). Although most of you will think that this is something which has to be done at business or corporate level, it is also relevant for the employees of the IT organisation. Your IT shop can be seen as subculture within the corporate culture - i.e. it has its own values, beliefs, language, behavior and artifacts. As a consequence, CIOs that want to build a community, bonding and a common culture can use corporate identity as an internal fusion mechanism

9. (Strategic) Communications plan: Effective communication is about communicating the right message to the right audience at the right time - usage of the right channel has a tendency to increase the effect of communication (Dr. Jerry) The strategic communications plan will act as the bonding glue for communicating on your values, culture, themes, metrics, vision and promoting your IT brand.

Now you have it all worked out, you know which role you are expected to play, which objectives to achieve and how you will achieve them. Good work but you are not even half way. As long as people are not aware of your IT strategy, if it has not been sold or marketed, the odds that you will be able to implement it an effective way will decrease with the days passing by.

Creative Communications Officer

It is high time you now put your right-brain side to work for you… or at least, that’s what good CIOs should do. Being able to communicate - although it touches upon the softer side of management - is a key characteristic of effective leaders. Grant, people working in IT do not excel at being great communicators but CIOs are not IT people - well, at least not in our opinion.

Strategic communications is about planning and targeting your communication efforts. A strategic communications plan will tell you in a blink of eye, when you are supposed to tell what to whom - the more advanced version will also tell you how to pass on the message and what channel is your audience’s favorite one.

Putting this in the perspective of communicating an IT strategy means that you communicate all - or the most relevant parts of your mission, vision, values, priorities, themes, actions and future state to your different target groups.
These target groups can be segmented into internal stakeholders such as the board,internal business units, the CEO office, (“the business”), the own IT organization, staff departments etc.

External stakeholders include industry groups, markets, sourcing providers, regulatory, society (always have crisis communication plan) and future employees (applicants and other have a tendency to appreciate companies with a good brand or cool image).

Where is the Mike?

Talking to these different groups will require a more personalised approach. Any good communications matter expert will tell you that. That’s why we will drive you bonkers with questions like: “But what will you communicate, to whom? “Who are those people and are you sure that this is the right moment?” “Can I see a list of priority programs and strategic initiatives… I mean, what is important for your internal stakeholders?” and my favorite one: “if business unit X is pumping 150 million dollars into this department, they damn sure have the right to know what we are spending it on!?”

And don’t you worry about what you are going to say, there is enough going on in the boutique to talk about. Although the way of communicating will be different on a role-by-role basis, there are enough running matters to interact with the public (as in stakeholders ) and initiate the dialogue.

Perhaps you can sell your plan to the board and convince your C-level peers about the business benefits of your IT strategy. This type of communication will require the CIO to talk their language - CFO, CEO, CPO, CMO slang to be more exact. You will be expected to spice your presentation with the obligatory number crunching stuff but keep it simple, to the point and most importantly… make it slick and stick!

Rumor goes that some CIOs even call in the help of communication consultants or an advertising agency to assist them with the marketing of their strategy. Investing in good communications expertise has a positive ROI, that’s for sure. The next step is to ensure that your own management team, resources and even out/insourcers are aware of Stan‘s plan. In principle you should have already hooked up your management team, your lieutenants and intimate circle of trustees by now. Again, a good selling story will prove to be gold when informing them about the nooks and crannies of your strategy… There you go, you have already recycled your marketing campaign once.

The Gang...

Remember Kotter's wise words about a powerful coalition. With these people you will have to create a momentum for change. If they are not informed and consulted about, involved in and committed to the cause, just forget it. You will need your critical mass of change agents to make it all happen. Leaders of large organizations know how to leverage their management teams and inspire them to be change agents. Together they will spread the word and make people part of the change… Viral change is the best possible term I can come up with in this context. The more people become involved the more viral and sustainable the change evolves into. Help your change agents in becoming effective communicators, coach or let them coach where necessary.

Our communications expert says: let your strategy roadmap and business calendar be your first source of inspiration. Pencil in milestones, key events and deliveries, windows for communicating on achievements, service levels etc. Do the same with your business calendar. When are the quarterly results being published, what are the strategic programs in the business and when do they deliver, who are the key players (read stakeholders) what is IT’s part in the delivery, what are the common success stories. Consolidate all this information into one holistic calendar and use this as a base for content, timing, segmenting your audience and using the most effective channels. Don’t overcommunicate though as this will have a counterproductive effect… instead of pulling people, you will be pushing them away"

Saturday, 7 June 2008

CIO rehab

One of the key drivers of business/IT fusion is that the IT organization gets itself organized for the transition journey... this is one of the chapters I am writing about at this very moment. Execution is fundamental if you want to reposition your IT shop but where to start, whatz the recipe chief?
The recipe has to be practical and pragmatical... don't forget to spice it with a good dose of pro-activity, add some common sense and stir well ...that should do the trick.

My working title for the moment is: The four step rehab program for CIOs and combines both some left and right-brain thinking (or LB and RB*).

We confront the CIO and his IT organization with the following existential question: Who are you, What is your reason for existence... it all becomes clear. If CIOs can answer this question, it will become clear as in:

1. What is my role in the business strategy and how can IT execute on the operating model
2. How do I come up with a good IT strategy and sell this in the board room
3. Get me the phone number of someone who can pimp your governance model and make it more intelligent
4. Where can I find the right folks to make it all happen.

Au fond, IT organizations can assume four different roles:

If reliability, cost effectiveness and service is the answer to that existential question, you are a Service Center (1) and know that this calls for a more defensive IT strategy. Defensive IT organizations staff differently than Delivery oriented (2) ones. They are characterized by providing quality delivery services, project discipline and flexibility.

If - on the other hand - the role of IT is to build a solid foundation for Enterprise Architecture and Process Integration, you can proudly call yourself the Architect (3). Like a dEUS ex machine you magically transform the way of doing business by providing state of the art technology... by standardizing and integrating core processes you give the business a plug-and-play solutions platform. You give them a shiny iPhone instead of the purely functional Blackberry...

Last step towards full rehab is when you can help innovating the business. At this stage, IT reveals its special potion and infuses the enterprise with a good dose of C-genes: communication, competence, culture, creativity, connectivity... tout ce qui commence avec un C quoi. We call this the Innovator stage (4).

This is it, the four step program for the Pete Dohertys of IT. Our customer satisfaction rate lies around 85%, no recidivism has been reported and only a minor group of CIOs has a tendency to fall back once in a while. This is usually the result of thinking that detox is the end of the journey, whereas it only just begins. Call me if you want to find out more about our Betty Ford clinic for IT.

*LB stands for analytical, sequential and logical whereas RB is the more creative, integrated, lateral thinking

Tuesday, 20 May 2008

Chief Creativity Ape

I like to read James Gardner's blog - bankervision - especially his last posting made me laugh. Apparently, at IBM labs, they have now gone completely bananas and give themselves swirling titles like Innovation Ninja and Virtual World Evangelist. Living in a 2.0 world thus means reinventing your own role... you are not an Enterprise Architect anymore, you are now the High Priest of Architecture, CIOs become Fusion Shamans and Process analysts are now proudly put forward as Semantic Network Engineers. As from now on, I will go by the name of Chief Creativity Ape and have recently revamped our IT department into Peanuts & Technology. If you want to see how this has had a positive impact on our organization's culture, check out last week's office party.

Saturday, 17 May 2008

Y fusion?

Many IT organizations deal with a serious skills shortage - the labor market is volatile, people come and go and valuable knowledge is lost as a result of retiring boomers.
Some of them also struggle with their image: they are not seen as companies that promise exciting career paths or steep promotion opportunities.
The IT shop of bank I used to consult for ran a survey on their image and attractiveness as a potential employer : the survey revealed that 70% did not even know that the bank had such a large IT organization (exceeding ten thousand IT workers). Second confronting point was that most respondents thought of an IT sweatshop in terms of bureaucratic, slow, risk averse, regulatory, no career opportunity. Image is everything... in your face right.

IT marketing - the mechanics for using marketing best practices in IT communication - will help in improving your image as an employer. If you succeed in understanding their values, what they stand for and care for, you can pimp your IT marketing with their language - using their vocabulary to become (emotionally) connected.
Connecting with Generation Y can create an enormous innovation potential for the firm: for these digital natives technology has become a second nature .
Unfortunately bureaucratic, process-oriented, regulatory and the like are not the most appealing set of values to catch the Gen Y's attention. These people are community beasts, love their bling bling tech gadgets, think in terms of global consciousness and connectedness and are in touch with mother nature. For them, job security reads job diversity, Long term career path is traded for short term flexibility and continued learning and job loyalty is being thought of in terms of months rather than years.

Creating a new habitat where these millenials feel comfy in will take time - it is matter of a culture change at all levels of the organization. Say bye to authority, rank or level and hi to community, power groups and work-life balance.

I am convinced that we can make IT a sexy career alternative, if we are prepared to rethink our organizational models and underlying philosophy. We will have to adapt our corporate ecosystem to cater for this new breed of knowledge workers - no more caging in cubicles but giving the possibility of creating, exploring new spaced and interconnected thinking (don't know what it means but it sounds nice, doesn't it). The next gen workforce will only feel happy @ work, if it is close to their personal habitat.

If you dare to rock and roll your culture, then you can start jamming with these new kids on the block... Combine it with a right-brain recruitment campaign and you have all the necessary ingredients for a Y fusion

Sunday, 11 May 2008

IT governance: dancing with the stars

It has been a dull week, had to write a ten pager on IT governance. The chapter on IT governance is part of a book on business/IT fusion which we will release in the fall of this year. The challenge for me as a co-author is: how can I turn a boring subject like governance into something more sexy. For the laymen amongst you, THE reference in this field is the IT Governance institute and they define IT governance as:
A responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategies and objectives. IT governance is the organizational capacity exercised by the Board, executive management and IT management to control the formulation and implementation of IT strategy and in this way ensure the fusion of business and IT.

Although I don't want to question ITGI's authority in this domain, I don't fully agree with their definition. What I am missing in this definition is the notion of culture, mindset, behaviour as part of the governance process. Sure, it is about structures, processes and relational mechanisms (Peterson, 2003) but most of all, it is about culture. You can have steering committees and IT boards, let the business decide on funding and IT strategy making and have participation mechanisms in place but will this result in an effective governance? For effective governance, it takes two to tango.

Effective governance for me is: the right people making the right decisions in the right IT domains thus ensuring the right effect. Effective governance is about distinguishing between strategic and tactical governance, between offensive and defensive governance and between business's and IT's accountabilities. You can call it differentiated governance but above all it is about having the right mindset to steer, decide, govern and monitor IT's performance.

Where most organizations rather see governance as a burden, I see it as an opportunity... Governance can be fun if the right dynamics are at play. Having the right dynamics is where the tango bit comes in: I am not a big dancer but I do know that dancing the tango is about being complementary, sometimes you lead but sometimes you are being led. Sometimes IT is in the lead (IT infrastructure strategies) and other times business is in the lead (IT investment decisions). You will feel that you have found the right rhythm when business has a clear idea about the organization's strategic direction and IT can formulate an appropriate IT roadmap to support and enable this.
You know that you will be close to winning "dancing with the stars" when the C-level suits express their view on how they see the enterprise's business operating model so IT can subsequently consult on buy, build or compose decisions - whether to implement shared or decentralized platforms.
Effective governance is also about applying different mechanism for running IT and innovating with IT - most innovation initiatives are killed because organizations don't have the right processes in place to manage and steer on innovation. You don't manage (technology) innovations in the same way as you manage your infrastructure stack - seems obvious but apparently it isn't. Dancing a waltz is not the same as dancing the lambada...

So want some good advice from a non-dancer? It is all in the practice, if the rhythm is not right, try some different steps - let the other lead instead of you leading - if tango does not work, try the merengue instead. Eventually, you will find the right dancing style which suits you both.

Friday, 2 May 2008

Fusion 2.0

One of my favorite hobbies is cooking, especially Italian and Asian are on the top of my menu list. But there is one area where I don't want to go and that's fusion kitchen. I like the pure flavors of les produits du terroir and blending two styles of cuisine feels a bit like committing adultery.

In the world of IT, fusion stands for something completely different: Business/IT fusion is about blending business and IT. Fusion goes further than alignment because alignment is still about a two-party system: business and IT. Fusion is a state of full convergence between the two - there are no more cultural, organizational and communication barriers, HR policies are aligned and technology becomes a recurrent topic on the business agenda.

For most CIOs, business/IT fusion will be a strategic imperative if they want to survive in tomorrow's corporate jungle. With the democratization and commoditization of technology, their role is at risk. Unfortunately, this also means that the role of the traditional IT organization is at risk.

Together with a large software vendor, we recently launched a series of exclusive workshops on this hot topic to help CIOs see the light. If you are a senior IT manager and you are interested in attending one of the workshops, just leave your email details and we will put you on the list.