6/5/10 SIM Advanced Practice Council

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  • STOP here and solicit comments – use as a slide for generating audience discussion Different parts of the organization can be at different stages/capabilities Henderson’s “strategic experimentation” is something that should always be done Ask “How does this fit in w/ your organization?”
  • Delta Air Lines created a DNS architecture for its key customer-facing processes. Key elements are: data, middleware, channels, process.
  • We need to rearrange a bunch of the practices. Do you still have my notes on that?
  • 6/5/10 SIM Advanced Practice Council

    1. 1. The CIO’s Role in Enabling Organizational Agility Highlights of SIM’s Advanced Practices Council Research Findings Madeline Weiss, APC Program Director November 13, 2006
    2. 2. Capturing Merger Benefits at CVS "Instead of taking until mid-year 2005 to get all these stores converted and to start realizing benefits from our merchandising schemes and plans, we started doing it in mid-November. That's huge; that's what IS enables. It enables the business to step in. The next phase is introducing our merchandising mix, layout and strategy. It can be done because the infrastructure is complete."
    3. 3. Disruptive Innovation at Cemex Customer Customers have the flexibility to change orders Cement trucks can deliver orders in a 20 minute window Dynamic Synchronization of operations controls plant production, tracks vehicle movements, and automatically optimizes order fulfillment Global Digital enables tracking of orders and payments <ul><ul><li>Transition from product selling (cement) to solution selling (ready-to-pour-concrete) </li></ul></ul>
    4. 4. Researchers <ul><li>Assessing Enterprise Architecture Outcomes (Jeanne Ross, Center for Information Systems Research at MIT) </li></ul><ul><li>Building Knowledge Assets from Light Knowledge with Wikis (Ann Majchrzak, University of Southern California, Christian Wagner, City University of Hong Kong) </li></ul><ul><li>Deploying Far-Flung Teams: A Guidebook for Managers (Ann Majchrzak, University of Southern California, Arvind Malhotra, University of North Carolina) </li></ul><ul><li>Driving Value from I/T: Investigating Senior Executives’ Perspectives (William Kettinger, University of South Carolina, Donald Marchand, IMD International) </li></ul><ul><li>Strategic Agility (Anandhi Bharadwaj, Emory University, V. Sambamurthy, Michigan State University) </li></ul>
    5. 5. Thought Leaders <ul><li>How Top Performing Firms Govern IT (Peter Weill, Center for Information Systems Research at MIT) </li></ul><ul><li>Riding the Waves: Emerging Technologies (John Henderson and N. Venkatraman, Boston University) </li></ul>
    6. 6. Strategic Agility
    7. 7. What is Agility? <ul><li>Anticipate or sense opportunities and threats </li></ul><ul><li>Assemble needed assets and capabilities </li></ul><ul><li>Judge risks and benefits of initiating action </li></ul><ul><li>Initiate action rapidly </li></ul><ul><li>Capture learning from experience and apply it to future actions </li></ul>
    8. 8. Strategic Agility Behaviors Strategy Formulation Action Anticipate Sense Lead Respond Entrepreneurial Agility Adaptive Agility Resiliency Flexibility Opportunism Disruption
    9. 9. Portfolio Approach to Agility <ul><li>Alignment </li></ul><ul><ul><li>Leverage current business model </li></ul></ul><ul><ul><li>World class execution </li></ul></ul><ul><li>Adaptive agility </li></ul><ul><ul><li>Operational innovation </li></ul></ul><ul><ul><li>Offensive and defensive competitive moves </li></ul></ul><ul><li>Entrepreneurial agility </li></ul><ul><ul><li>Strategic experiments </li></ul></ul><ul><ul><li>Shaping business options </li></ul></ul>
    10. 10. First, Get the Basics of Alignment Right <ul><li>World-class IT execution –a trusted service that functions well; delivering projects on time and within budget </li></ul><ul><li>The right people – good problem solvers, listeners, learners, communicators, empathizers, leaders and managers; grounded in the business </li></ul><ul><li>Excellent working relationships - with business partners across the enterprise </li></ul><ul><li>Enterprise IT architecture and governance - that support the business model </li></ul>
    11. 11. Enhance Agility By <ul><ul><li>Evolving enterprise IT architecture to a new stage </li></ul></ul><ul><ul><li>Increasing use of collaboration tools and practices </li></ul></ul><ul><ul><li>Enhancing culture of experimentation and learning </li></ul></ul>
    12. 12. Enhance Agility By <ul><ul><li>Evolving enterprise IT architecture to a new stage </li></ul></ul><ul><ul><li>Increasing use of collaboration tools and practices </li></ul></ul><ul><ul><li>Enhancing culture of experimentation and learning </li></ul></ul>
    13. 13. Evolving Architecture
    14. 14. <ul><li>The organizing logic for a firm’s core business processes and IT capabilities captured in a set of principles, policies and technical choices to achieve the business standardization and integration requirements of the firm’s operating model. </li></ul>Enterprise Architecture
    15. 15. Delta’s View of Enterprise Architecture Source: Adapted from Delta Air Lines documents – used with permission Business Reflexes Employee Relationship Management Delta Nervous System Electronic Events Nine core databases Location Maint. Schedule Flight Equip. Employee Aircraft Customer Ticket Clean/ Service Aircraft Unload Aircraft Flight Arrival and Closeout Monitor Flight Flight Departure and Closeout Load Aircraft Prepare for Flight Departure Allocate Resources Baggage Inflight Boarding Crown Room Ticket Counter Skycap Travel Agent Reservations Skymiles Skylinks Personalization Digital Relationships Loyalty Programs Customer Experience Operational Pipeline Reservation Systems PDAs Scanners Laptops E V E N T S P R O F I L E Desktops Cell Phones Video Voice Pagers Gate Readers Kiosks Hand Helds
    16. 16. ING Direct’s View of Enterprise Architecture External Services Reports Local/HQ/Tax Prospect Fulfillment Statement Fulfillment Payments Checks Contact History Product Info CIF CRM Customer Relationship Services Common Business Services Services Transactions Customers Products Banking Engine Credit Score Mutual Funds Brokerage Core Banking Services Channel Services Gateway server IVR/CTI server Imaging server E-mail server Web server Source: Robertson, D. “ING Direct: The IT Challenge (B)”, 2003, IMD-3-1345. Used with permission Services not implemented In all countries Customer Contact: Call Center, IVR, E-mail, Direct mail Self-Service: Internet, MinTel, ATM, WAP, (WebTV)
    17. 17. Architecture Maturity Stages Standardized data Data warehouses Transaction data in individual. applications Data Customized or reusable modules Standardized core processes Local Local Processes Technology standardization, fewer platforms Multiple technologies and platforms Platform and Technology Strategic choices Process optimization IT efficiency Local/ functional Optimization Strategic Objective 4- Modular 3- Rationalized Data 2- Standardized Technology 1- Application Silo
    18. 18. Evolving Management Practices Business cases Project methodology Program managers Architects on project teams IT Steering committee* Architecture exception process* Formal compliance process* Infrastructure renewal process* Centralized funding of enterprise applications* Process owners* Enterprise architecture guiding principles* Business leadership of project teams* Senior executive oversight* Enterprise architecture graphic* Post-implementation assessment* Technology research and adoption process* Adapted from: Ross, J.W., “Creating a Strategic IT Architecture Competency: Learning in Stages,” MISQ Executive (2:1), March 2003, pp 31-43 . Asterisked items are statistically significantly related to architecture maturity—they are associated with greater value in later stages. Architecture Maturity Modular Rationalized Data Standardized Technology Application Silo
    19. 19. Architecture Management Practices <ul><li>Architecture Planning and Design </li></ul><ul><li>Senior business executive oversight </li></ul><ul><li>Enterprise architecture guiding principles </li></ul><ul><li>One-page high-level graphic </li></ul><ul><li>Enterprise level process owners </li></ul><ul><li>Enterprise architecture team </li></ul><ul><li>Standard Technology Environment </li></ul><ul><li>Architects on project teams </li></ul><ul><li>Centralized standards team </li></ul><ul><li>Formal research and adoption process </li></ul><ul><li>Architecture exception process </li></ul><ul><li>Compliance process </li></ul><ul><li>IT Funding </li></ul><ul><li>Business cases for IT investment </li></ul><ul><li>Centralized funding of enterprise apps </li></ul><ul><li>Annual infrastructure renewal </li></ul><ul><li>IT steering Committee </li></ul><ul><li>Project Management </li></ul><ul><li>Standardized project methodology </li></ul><ul><li>Post-implementation assessment </li></ul><ul><li>IT program managers </li></ul><ul><li>Business leadership of project teams </li></ul>Management practices within each practice set are statistically significantly correlated with each other.
    20. 20. Management Practices Support Desired Outcomes 1 Unit operating costs and application maintenance costs 4 Data and process standardization 2 Development time and percentage of projects on-time, on-budget 5 Strategic effectiveness— measured as strategic outcomes 3 Business risk, security breaches, disaster tolerance and (operational excellence, customer intimacy, product innovation, and regulatory compliance strategic agility) weighted by their relative importance to each firm. ALL management practices are significantly correlated with ALL benefits. Asterisks identify the management practices best predicting the benefit. * * * * * IT funding practices * * Project management practices * Enhance strategic effectiveness 5 * Increase business discipline 4 Reduce IT-related risks 3 Reduce development time 2 * Cut IT costs 1 Implementation of standard technology environment Architecture planning and design practices Management Practices Benefits of Architecture Initiatives
    21. 21. <ul><li>Enterprise architecture enables and constrains business strategy EA defines the essence of a firm’s operating model by clarifying integration and standardization requirements. This creates a stable platform for responding to market changes. </li></ul><ul><li>Maturity matters Different stages support different operating models. Greater maturity is related to greater strategic value and profitability. </li></ul><ul><li>It does not pay to skip stages Generating value from architecture investments is a learning process. Aggressive investment in IT architecture can be slow to generate a return. </li></ul><ul><li>Learning is captured in management and governance practices Management requirements are more complex in later stages. </li></ul><ul><li>There is no substitute for strong senior management leadership Firms getting strategic business benefits from architecture have senior business leaders who are actively involved in architecture design, management, and implementation. </li></ul>Key Findings on Enterprise Architecture
    22. 22. Enhance Agility by <ul><ul><li>Evolving enterprise IT architecture to a new stage </li></ul></ul><ul><ul><li>Increasing use of collaboration tools and practices </li></ul></ul><ul><ul><li>Enhancing culture of experimentation and learning </li></ul></ul>
    23. 23. Far-Flung Teams
    24. 24. Far-Flung Teams <ul><li>Teams spread across the globe, working collaboratively to innovate, with minimal or no face-to-face interaction </li></ul><ul><li>Challenges </li></ul><ul><ul><li>Communications </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Time zones </li></ul></ul><ul><ul><li>Tasks </li></ul></ul>
    25. 25. Far-Flung Teams Supporting Agility <ul><li>Testing new products in local markets and then formulating global marketing plan for products </li></ul><ul><li>Designing thrust chamber for new rocket engine </li></ul><ul><li>Ensuring flawless email infrastructure on first day of merged company operations </li></ul><ul><li>Integrating processes and procedures during merger </li></ul><ul><li>Integrating information infrastructures during merger </li></ul>
    26. 26. Deploying Far-Flung Teams Guidebook <ul><li>Creating Supportive Business Environment </li></ul><ul><li>Supporting Knowledge Exchange </li></ul><ul><li>Integrating Technology into the Way Work is Done </li></ul>
    27. 27. Deploying Far-Flung Teams Guidebook <ul><li>Creating Supportive Business Environment </li></ul><ul><ul><li>Deploy full-time team leaders </li></ul></ul><ul><ul><li>Appraise team members on contributions to the FFT </li></ul></ul><ul><ul><li>Reward team member contribution to enterprise’s intellectual capital equal to task accomplishment </li></ul></ul><ul><ul><li>Discourage travel </li></ul></ul><ul><ul><li>Encourage use of collaborative technologies </li></ul></ul>
    28. 28. Deploying Far-Flung Teams Guidebook <ul><li>Supporting Knowledge Exchange </li></ul><ul><ul><li>Pick the right people </li></ul></ul><ul><ul><li>Motivate members for intellectual growth </li></ul></ul><ul><ul><li>Foster understanding of differences to leverage them </li></ul></ul><ul><ul><li>Establish collaboration norms and procedures </li></ul></ul><ul><ul><li>Hold regular audio conferences </li></ul></ul><ul><ul><li>Hold periodic face-to-face team tuning meetings </li></ul></ul>
    29. 29. Deploying Far-Flung Teams Guidebook <ul><li>Integrating Technology into the Way Work is Done </li></ul><ul><ul><li>Less than 30% of teams used any form of video conferencing </li></ul></ul><ul><ul><li>Instead, FFTs used a combination of </li></ul></ul><ul><ul><ul><li>Instant messaging </li></ul></ul></ul><ul><ul><ul><li>Audio conferencing </li></ul></ul></ul><ul><ul><ul><li>Repository for content capture and display </li></ul></ul></ul>
    30. 30. Wikis An Emerging Collaborative Technology
    31. 31. Wikis and the Wiki Way <ul><li>Wiki </li></ul><ul><ul><li>Technology to write and maintain web pages collaboratively: fast, simple, immediate, where knowledge can be added or corrected by anyone </li></ul></ul><ul><li>Wiki Way </li></ul><ul><ul><li>Norms for wiki design and collaborative wiki content creation: open, organic, observable, convergent </li></ul></ul>
    32. 32. Wikis Supporting Agility <ul><li>Two business groups from separate product lines combined to integrate the product lines </li></ul><ul><li>Competition tracking (with RSS feeds) </li></ul><ul><li>Project management on fast-track project </li></ul><ul><li>Community of customers and staff </li></ul><ul><li>Collaboration with software vendor and another user </li></ul><ul><li>Ethnic marketers collaborating across consumer goods product lines </li></ul>
    33. 33. <ul><li>“ The teleconference used to be 1 ½ hours, with much time wasted on bringing people up to speed on the week’s events. Now team members update themselves on the wiki, and that part of the teleconference takes 5 to 10 minutes. The rest of the teleconference is used for idea generation, being innovative, talking about problems and looking at solutions, which is what the meeting should be about…” </li></ul><ul><li>Diben Jobanputra </li></ul><ul><li>Dresdner Kleinwort Wassersteing </li></ul><ul><li>(wiki user since 1997) </li></ul>
    34. 34. Novell Internal Wiki
    35. 35. Windriver Intranet
    36. 36. IBM’s Customer Facing ETTK Wiki
    37. 37. <ul><li>“ Wikis will become mainstream collaboration tools in at least 50% of companies by 2009.” </li></ul><ul><li>Gartner Group, June 2005 </li></ul>
    38. 38. Creating Wiki Sustainability <ul><li>Initiation – Steering People to the Wiki </li></ul><ul><ul><li>Champion’s mantra: “It’s on the wiki” </li></ul></ul><ul><ul><li>Use viral marketing techniques </li></ul></ul><ul><li>Promoting Active Participation </li></ul><ul><ul><li>Drive content creation: “Please do this on the wiki” </li></ul></ul><ul><ul><li>Nudge participants for small contributions </li></ul></ul><ul><ul><li>Keep wiki simple (“wabi sabi” – the beauty of imperfection) </li></ul></ul><ul><ul><li>Establish procedures for keeping content up-to-date </li></ul></ul><ul><ul><li>Provide good search tools </li></ul></ul>
    39. 39. Creating Wiki Sustainability <ul><li>Establishing Wiki Culture </li></ul><ul><ul><li>Encourage people to change the work of others and shape the wiki </li></ul></ul><ul><ul><li>Reward collaboration </li></ul></ul><ul><li>Steady State </li></ul><ul><ul><li>Champions with business knowledge, wiki knowledge (technology and the wiki way), organizational influence are crucial </li></ul></ul><ul><ul><li>Difference of opinion on amount of structure to impose </li></ul></ul>
    40. 40. Checklist for Successful Wiki Initiation <ul><li>Does the wiki participation model fit with corporate culture (i.e., less hierarchical/ more collaborative, merit based)? </li></ul><ul><li>Is there a wiki champion who understands wiki technology and the wiki way, and has the organizational knowledge and standing to engage others, and to shape the collective knowledge contributions? </li></ul><ul><li>Does the organization (wiki team) have guidelines or a shared understanding to protect wiki based intellectual property? </li></ul><ul><li>Has a wiki software been chosen that incorporates access rights management and task structuring? </li></ul><ul><li>Does each wiki have someone who appears to be shaping the contributions? </li></ul><ul><li>Is the nature of the wiki supported task such that participants with personal, efficiency driven interests can benefit from wiki participation? </li></ul><ul><li>Is the wiki team of sufficient size to ensure both reading and writing? </li></ul><ul><li>Do you have plans in place to phase in the wiki, steer participants to the wiki, create active participation, create wiki culture, and maintain steady state? </li></ul>
    41. 41. Enhance Agility By <ul><ul><li>Evolving enterprise IT architecture to a new stage </li></ul></ul><ul><ul><li>Increasing use of collaboration tools and practices </li></ul></ul><ul><ul><li>Enhancing culture of experimentation and learning </li></ul></ul>
    42. 42. Enhancing Culture of Experimentation and Learning <ul><li>“ The ability to learn faster than your competitors may be the only sustainable competitive advantage.” </li></ul><ul><li>Arie de Geus (Royal </li></ul><ul><li>Dutch/Shell Group) </li></ul>
    43. 43. Enhance Your Culture of Experimentation and Learning <ul><li>Invite forecasters and futurists to speak at meetings </li></ul><ul><li>Set up strategic experiments and learn from them </li></ul><ul><li>Hold before and after action reviews </li></ul><ul><li>Encourage IT staff to take business positions and vice versa </li></ul><ul><li>Give significant monetary awards for outstanding ideas that are implemented; make the awards public </li></ul><ul><li>Use wikis to encourage knowledge capture and a culture of commenting on others’ work </li></ul>
    44. 44. Enhance Your Culture of Experimentation and Learning <ul><li>Which of these elements of culture exist in your organization? </li></ul><ul><ul><li>Staff encouraged to post wild, ambitious ideas on the Intranet and solicit peer feedback. </li></ul></ul><ul><ul><li>Eight brainstorming sessions per year where the best six ideas are presented. If an idea is vetted, the idea generator must attract a team to work on it. </li></ul></ul><ul><ul><li>70/20/10 rule. </li></ul></ul><ul><ul><li>Interior hallways in which staff can scribble random thoughts on large whiteboards strung together. </li></ul></ul><ul><ul><li>Tech talks with well-known people invited to speak. </li></ul></ul><ul><ul><li>Executive message: “If you’re not failing enough, you’re not trying hard enough.” </li></ul></ul>
    45. 45. Enhance Agility By <ul><ul><li>Evolving enterprise IT architecture </li></ul></ul><ul><ul><li>Increasing use of collaboration tools and practices </li></ul></ul><ul><ul><li>Enhancing culture of experimentation and learning </li></ul></ul><ul><ul><li>??? </li></ul></ul>
    46. 46. <ul><li>SIM </li></ul><ul><li>Advanced Practices Council </li></ul><ul><li>Pushing the Frontiers of IT Management </li></ul><ul><ul><li>CIO Driven Research </li></ul></ul><ul><ul><li>Relevant Thought Leadership </li></ul></ul><ul><ul><li>Member Sharing </li></ul></ul><ul><ul><li>Networking </li></ul></ul><ul><li>Madeline Weiss, Program Director (madeline.weiss@verizon.net) </li></ul><ul><li>Blake Ives, Research Director (bives@mac.com) </li></ul>
    47. 47. www.simnet.org 1 2
    48. 48. 3 4
    49. 49. 5
    50. 50. Recent APC Research Projects <ul><li>Unleashing the Power of Enterprise Value Nets </li></ul><ul><li>Network and Industry Transformation </li></ul><ul><li>Assessing IT Architecture Outcomes </li></ul><ul><li>How to Drive Value from IT – Senior Executives’ Perspectives </li></ul><ul><li>Identity Management for Business Value </li></ul><ul><li>Advanced Practices in IT Structure and Governance </li></ul><ul><li>Deploying Far-Flung Teams: A Guidebook for Managers </li></ul><ul><li>Transformation of the Enterprise through eBusiness </li></ul><ul><li>Future Architectures </li></ul><ul><li>Strategic Agility </li></ul><ul><li>Disruptive Technologies </li></ul><ul><li>Inter-organizational IT Change Management </li></ul><ul><li>Benefits and Risks of Open Source </li></ul><ul><li>Creating Knowledge Assets Using the “Wiki Way” </li></ul>

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