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Following the previous "The Death of the IT Department" presentation, this presentation starts to build a new mind-set for IT. We start with the recognition that business activities operate at different velocities and are propelled by different drivers. We then recognise that IT often operates at one velocity (too slow) So IT delivery needs to align with business change velocities. Or business will find someone else to do the work. This presentation is in a series of "Transforming IT" discussions. More will follow. Follow me to keep abreast of developments.
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CXO Advisor
Aligning business and IT
Business at the speed of changeChange at the speed of business
www.cxo-advisor.co.zaContact: [email protected]
When to change?
A
BC
D
In our previous presentation:
We asked when is the best time to change.
Most responses we get are “Change at A or B.
A few even say C.
We believe that IT departments are at best at “C” .
So change… or die!
http://www.slideshare.net/TerryWhite01/the-death-of-the-it-department
When to change?
A
BC
D
In our previous presentation:
We asked when is the best time to change.
Most responses we get are “Change at A or B.
A few even say C.
We believe that IT departments are at best at “C” .
So change… or die!
Wooo, wooo!
Blackmail alert!
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
So why should IT departments change?
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
Because the nature of business has changed – forever!
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
Because the nature of business has changed – forever!
Wooo, wooo!Cliché alert!
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
Because the nature of business has changed – forever!
Just because it’s a cliché doesn’t make it false
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
Because the nature of business has changed – forever!
Ecology speak: If your host changes, then you’d better change with them
Before we change…Forest Gump (or my grade-school teacher) said: “If you’re going to do something, try to have a reason for doing it”
Because the nature of business has changed – for ever!
Ecology speak: If your host changes, then you’d better change with them
Wooo, wooo!Parasite alert!
So here’s what business facesCustomers with “perfect” knowledge Adam Smith based his economics on the supposition that all players have
“perfect” knowledge of the market Since 2000 this has been the case
• Customers talk to each other• Customers compare you with every business in the world
– Often the only reason stopping someone from buying a product from New Zealand (say) is the logistics and shipping complication
– Even then, if their product is significantly better, they’ll bear that pain– Often, you don’t know – your purchase is location and brand agnostic – it fits your needs at
the right price, who cares who made it or where it’s from
Customers want to be involved Crowdsourcing is real Customers trust customer ratings more than they trust marketing Customers buy more from friendly companies
Customers expect stability, quality, innovation, quirkiness and in some instances, insanity These are competing expectations – great products, great service, but on my
terms
Here’s how business worksThere are four levels of business – and four velocities of change
Level 1: Doing bulk businessLevel one is about doing generic business
This is the level of business that you can buy in any “store”:• Payroll• General Ledger• Procurement• Legal• And yes: IT
“Business in a Box”level
With some minor exceptions processes are standard, and applicable to whatever industry you’re in
Level 2: Doing industry businessLevel two is about your industry
Industrylevel
“Business in a Box”level
This level of business is specific to your industry:• Tinker, tailor, soldier, sailor?• Banker, fast food, construction, mining?
Each industry has its specific processes:• In banking – loans etc.• In construction – project management, quantity
surveying etc.
Level 3: Doing it for customersLevel three is about your customer and why they choose you
Industrylevel
“Business in a Box”level
Customer choicelevel
So why do customers choose your product:• Price• Convenience• Quality• Customisation• ServiceWhy are you ‘unique’
Neither the Business in a Box, nor the industry level actually gets you customers.
Neither is it good enough to say: “What differentiates us?” - That’s an inside-out approach (we’ve got this, it’s different, “they” must buy it)
You need to say: “Why do customers choose us?” – The outside-in approach
This layer provides your revenue
Level 4: Doing it for your futureLevel four is about creation
Industrylevel
“Business in a Box”level
Customer choicelevel
Originationlevel
New, new, new!• Products• Markets• Channels
This level is where new ‘stuff’ is created• Forget those people who tell you about an “innovation
layer” – If you’re not innovating at every level, you can expect to die soon
• This level is about engaging with your stakeholders • Customers• Suppliers• Community• Shareholdersto create something that does not exist inside your business
Level 4: Doing it for your futureLevel four is about creation
Industrylevel
“Business in a Box”level
Customer choicelevel
Originationlevel
New, new, new!• Products• Markets• Channels
This level is where new ‘stuff’ is created• Forget those people who tell you about an “innovation
layer” – If you’re not innovating at every level, you can expect to die soon
• This level is about engaging with your stakeholders • Customers• Suppliers• Community• Shareholdersto create something that does not exist inside your business
Or fast following
It’s still new for you
How fast does each level change?Not every level changes at the same rate
How fast does each level change?Not every level changes at the same rate
Slow to change Regulationsbest practices
Change drivers
How fast does each level change?Not every level changes at the same rate
Changes at the pace of industry
Slow to change
Methods, techniques, foundational technologies
Change drivers
How fast does each level change?Not every level changes at the same rate
Changes at the pace of industry
Slow to change
Changes at the rate of customer fickleness
Trends, expectations, fads, experiences,competition
Change drivers
How fast does each level change?Not every level changes at the same rate
Changes at the pace of industry
Slow to change
Changes at the rate of customer fickleness
Changes as fast as people can think of new stuff“I wish…”“What if…”“Can’t you…”
Change drivers
How fast does each level change?Not every level changes at the same rate But it’s not a mutually exclusive change rate for each level
Changes at the pace of industry
Slow to change
Changes at the rate of customer fickleness
Changes as fast as people can think of new stuff
Stable
Volatile
IT and business changeThe IT department: “The abominable no-man”
Driven by the need for stability, quality, resilience, security, service levels
IT and changeThe IT department: “The abominable no-man”
Driven by the need for stability, quality, resilience, security, service levels
Stable
Volatile
The IT change mind-set
IT and changeThe IT department: “The abominable no-man”
Driven by the need for stability, quality, resilience, security, service levels
Stable
Volatile
The road to irrelevance
IT and change – tale of two velocitiesIn the same way there’s no single velocity of change for each business level, there’s no single IT delivery mechanism
Waterfall
ControlledAgile
Agile
Pro-Agile
IT Delivery mechanism
Agile methods, platf
orms, tools
Trad
ition
al m
etho
ds, p
latf
orm
s, to
ols
IT and change – tale of two velocitiesIn the same way there’s no single velocity of change for each business level, there’s no single IT delivery mechanism
Waterfall
ControlledAgile
Agile
Pro-Agile
Traditional IT development
Agile development with strong control elements
Two week delivery cycles
Anticipate change: Build it and market test – in one week
But delivering change is only part of IT’s roleWe asked CEOs what they really wanted from IT.They said… Deliver IT without fuss Get involved in business Give us appropriate leadership
IT has to maintain the run, maintain and service the engineIT has to improve business resultsIT has to provide leadership
Deliver IT without fussRun the existing IT engineFix the engine when it breaksService the engine before it breaksDeliver IT developments at the appropriate speed of change
Deliver IT without fussRun the existing IT engineFix the engine when it breaksService the engine before it breaksDeliver IT developments at the appropriate speed of change
Oh, yes… Do all the above cheaper every year
Get involved in businessGet into the factories, stores, on the road, to the customersTalk to users, managers, clerks, sweepersLook at processes, standards, outputsMeasure tonnages, sales, throughput, coverage, revenue, costs
This is how we know you’re part of the business
Wooo, wooo!Parasite alert!
Get involved in businessGet into the factories, stores, on the road, to the customersTalk to users, managers, clerks, sweepersLook at processes, standards, outputsMeasure tonnages, sales, throughput, coverage, revenue, costs
Because we know that if you apply your unique IT thinking to this business, you can change the way everything works
We measure YOUR success only in business terms
SLAs are frankly irrelevant!
Give us appropriate leadershipBring your unique perspective to the Executive meetingShow us how, and what, why, technology can make significant differencesAnd talk to us in our language
Because we know technology one of the cornerstones of business. It’d be useful if you knew it too
Give us appropriate leadershipBring your unique perspective to the Executive meetingShow us how, and what, why, technology can make significant differencesAnd talk to us in our language
Leadership is the management of:
Meaning
Attention
Self
Trust
Give us appropriate leadershipBring your unique perspective to the Executive meetingShow us how, and what, why, technology can make significant differencesAnd talk to us in our language
Leadership is the management of:
Meaning
Attention
Self
Trust
What does this trend/technology mean FOR OUR BUSINESS?
Knowing it means something is pointless if you can’t get us to pay attention
Does IT manage itself in a business-like way? Budgets, costs, delivery?
Do you deliver what you promise, demonstrate competence and manage goodwill?
Next presentation:Changing from this:
Deliver IT without fuss
Involved in business Leadership
What IT does now!
Next presentation:To this
Deliver IT without fuss
Involved in business
Leadership
What business wants!
Next presentation:To this
Deliver IT without fuss
Involved in business
Leadership
What business wants!
Wooo, wooo!
Watch this space!
