Information Drivers
The Intellectual History of IT’s Business Value
An Archestra Notebook.
© 2014 Malcolm Ryder / archestr...
I.T. Diversity as noticed by industry Analysts
The websites of analysts
will readily list and update
the dazzling array of...
In a sense, nearly all of the varied I.T. usage
can be said to facilitate
business intelligence,
the day-to-day supply of ...
And while it is a business objective to be smart,
The business goal of I.T. is not to be smart.
The business goal of I.T. ...
Influence results from a party’s acceptance of
news, ideas, and instructions
that have become
part of awareness and expect...
Historically, business designated certain parties to be
the primary donors and recipients of information
used to make deci...
Information donors and recipients are now virtually ubiquitous
and increasingly they are all major co-producers of
“the bu...
I.T.’s Evolution of Business Value:
the Intellectual History
Making information practically valuable
Technology is needed to deal with the problems of:
• Information diversity (select...
Who are the key information people for the
business to influence?
I.T. Period Priority Information
Donor / Driver
Computin...
The Intellectual “Properties” of I.T.
The technology of information
Information technology essentially applies the engineering of tools to the
engineering of in...
The practice of information
Consequently, the first business use of I.T. is to address the question:
“what do we think we ...
INTELLIGENCE vs. INTELLECT
Intelligence:
the ability to acquire and apply knowledge
and skills.
Business intelligence:
an ...
INTELLIGENCE vs. INTELLECT
Intellect:
the faculty of reasoning and understanding
objectively
Artificial intellect:
Documen...
THE REAL VALUE OF INFORMATION: MEANING
Semantics:
the meaning or relationship of meanings of
a sign or set of signs
Busine...
The value of Information Practice
Applied Intellect:
create Meaning to create Value
When it comes to the “Business Intellect”, technology impact on
business...
The Practical Reality of Intellect
More information is not necessarily better
• Capability is driven more often by the com...
The Practical Reality of Intellect
The importance of information is relative, not absolute
• The value of processed inform...
The Practical Reality of Intellect
Information is perishable
• The most powerful use of retained information is to consume...
The “Best” Information is practical, but…
HARD TO
MAKE
PUT IN THE
RIGHT HANDS
AGGRESSIVELY
RENEWED
and
and
and
location
ti...
The “Best” Information is valuable, because…
HARD TO
MAKE
PUT IN THE
RIGHT HANDS
AGGRESSIVELY
RENEWED
and
and
and
Decision...
The next “Normal”
Information donors and recipients
are now virtually ubiquitous,
and increasingly they are all
major co-producers of the
bu...
The I.T. capability
Business needs information engineering to
be enabled by technology engineering
• To influence informat...
“Value” is a performance, not property
• Donors and recipients of significant information are now virtually
ubiquitous but...
In business semantics (the real-time creation of meaning),
all I.T. users are now both donors and influencers
BUSINESS
INF...
The Next Normal
• The next wave of I.T.’s business value identifies parties as donors who have not
even yet identified the...
© 2014 Malcolm Ryder / archestra research
mryder@malcolmryder.com
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The Intellectual History of IT Business Value

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Technology evolution in business has been dazzling, but the real history of the evolution of business value is found in terms of the people who have been the decisive drivers of information usage.

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The Intellectual History of IT Business Value

  1. 1. Information Drivers The Intellectual History of IT’s Business Value An Archestra Notebook. © 2014 Malcolm Ryder / archestra research
  2. 2. I.T. Diversity as noticed by industry Analysts The websites of analysts will readily list and update the dazzling array of IT issues needing to be coordinated for business purposes. In this example, our reorganization of an analyst’s list reveals its attention to a virtual management ecosystem featuring critical interactions of tools, operations, and people. This analyst focuses mainly on new ways of doing things about information. © 2014 Malcolm Ryder / archestra research
  3. 3. In a sense, nearly all of the varied I.T. usage can be said to facilitate business intelligence, the day-to-day supply of “intellectual property”. But increasingly, that property is ephemeral and is not as important as the capability. Business intelligence: an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. Business intellect: The standing combination of opportunities and methods for recognition and comprehension, provided and sustained by people with information technologies
  4. 4. And while it is a business objective to be smart, The business goal of I.T. is not to be smart. The business goal of I.T. is to influence. Influence predisposes what kind of value gets created by the business for the business. Predispositions: strategy, targets, competencies, relationships, compatibilities…
  5. 5. Influence results from a party’s acceptance of news, ideas, and instructions that have become part of awareness and expectations Acceptance affects their decisions about what to do and what to share Awareness of those decisions and follow-ups confirms existing parties, and reveals additional parties, as future candidate donors and recipients for more news, ideas and instructions
  6. 6. Historically, business designated certain parties to be the primary donors and recipients of information used to make decisions that created business benefits. Those parties have been the information drivers. And, the information was considered to be proprietary. But now: I.T. has become a commodity. Today, all users of I.T. are potentially significant donors or recipients. I.T. users: Public Private Internal External Stationary Mobile Corporate Personal
  7. 7. Information donors and recipients are now virtually ubiquitous and increasingly they are all major co-producers of “the business intellect” I.T. will find them for the business The business will facilitate and privilege their participation, through more I.T. Responses evoke a variety of scenarios in which to produce value Who matters Who responds Who cares
  8. 8. I.T.’s Evolution of Business Value: the Intellectual History
  9. 9. Making information practically valuable Technology is needed to deal with the problems of: • Information diversity (selected and composed), • Information distance (available to location), and … • Information utility (renewable and timely) Five different generations of technology have tackled the same information problems (vs. practicality and value) – but in different ways In each generation, including the next one, making the technology systematic is an engineering challenge But more importantly, I.T. evolution also features, from one generation to the next, a changing focus on who is driving information to create the most new value
  10. 10. Who are the key information people for the business to influence? I.T. Period Priority Information Donor / Driver Computing style or platform Production key Systematics challenge 1960s Business Managers Mainframe Formulas Calculation 1980s Technicians Microsystems Protocols Connectivity 2000s LOB workers Enterprise Processes Workflow 2010s early External Customers Social Analytics Channels 2010s mid to later Public Personas Semantic Surveillance Recognition The changing story of “which donor needs to be influenced” is one that shows changes, over time, in business priority that were allowed by the ongoing advancements of information technology. In this story, Business moves progressively over time from narrow control and prescription to widespread monitoring and prediction. © 2014 Malcolm Ryder / archestra research
  11. 11. The Intellectual “Properties” of I.T.
  12. 12. The technology of information Information technology essentially applies the engineering of tools to the engineering of information. An engineering lifecycle reaches backwards from the defined solution needed by an information user with a problem, to the opportunity for solution development. But as diversity increases amongst users and problems, solution opportunities and providers also diversify. Choices, and therefore uncertainty, also increase. The scope of what qualifies as being significant grows larger and larger. Therefore, based on existing and expected information, “Business” typically must propose which problems to solve, in order to convert significance into benefits.
  13. 13. The practice of information Consequently, the first business use of I.T. is to address the question: “what do we think we need to know?” Results that are successful relative to others become preferred. Competition and Quality drive a business intent to make successful information usage captive and exceptional, held by the business and kept away from others. Accordingly, the business treats what it knows as an asset: “intellectual property”. But with I.T. there are dual challenges: what to know (i.e., intelligence), and how to know it (i.e., intellect).
  14. 14. INTELLIGENCE vs. INTELLECT Intelligence: the ability to acquire and apply knowledge and skills. Business intelligence: an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. Artificial intelligence: the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.
  15. 15. INTELLIGENCE vs. INTELLECT Intellect: the faculty of reasoning and understanding objectively Artificial intellect: Documentation, Designs, and Programming, a.k.a. Content, often considered to be intellectual property (“IP”) Business intellect: The standing combination of opportunities and methods for recognition and comprehension, provided and sustained by people with information technologies
  16. 16. THE REAL VALUE OF INFORMATION: MEANING Semantics: the meaning or relationship of meanings of a sign or set of signs Business intelligence: an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. Business intellect: The standing combination of opportunities and methods for recognition and comprehension, provided and sustained by people with information technologies I.T. evolution increasingly allows anyone to seek, identify and communicate meaning.
  17. 17. The value of Information Practice
  18. 18. Applied Intellect: create Meaning to create Value When it comes to the “Business Intellect”, technology impact on business information has always been interesting in three key ways. • Capability is driven more often by the complexity of information than by the amount of information • The value of processed information is differentiated more often by location than by uniqueness • The most powerful use of held information is to replace it on time
  19. 19. The Practical Reality of Intellect More information is not necessarily better • Capability is driven more often by the complexity of information than by the amount of information • The most coveted know-how has been hard to achieve. • Producing unusual information is more often about composition than about hoarding
  20. 20. The Practical Reality of Intellect The importance of information is relative, not absolute • The value of processed information is differentiated more often by location than by uniqueness • Having information in hand produces decisions, and decisions produce differences of advantage or risk • The probability of targeted availability needs to be built into the production
  21. 21. The Practical Reality of Intellect Information is perishable • The most powerful use of retained information is to consume it on time • Trading old information for new is rarely useful except across different parties; the exception is when news generates insight • The best information “asset” is something that is better than what was there before; if information is not replaceable then it is not an enduring asset
  22. 22. The “Best” Information is practical, but… HARD TO MAKE PUT IN THE RIGHT HANDS AGGRESSIVELY RENEWED and and and location timeliness complexity
  23. 23. The “Best” Information is valuable, because… HARD TO MAKE PUT IN THE RIGHT HANDS AGGRESSIVELY RENEWED and and and Decisions Insights Know how
  24. 24. The next “Normal”
  25. 25. Information donors and recipients are now virtually ubiquitous, and increasingly they are all major co-producers of the business intellect
  26. 26. The I.T. capability Business needs information engineering to be enabled by technology engineering • To influence information drivers, feedback is the primary objective of business information engineering Identifying and influencing information donors and recipients underlies the decisions that create the business benefits (higher advantage, lower risk) from discovered or manufactured opportunities • Donors and recipients are inside and outside of the organization and are also influencers Discover and influence donors and recipients Predict and develop their opportunities Shepherd advantages and risks of their response © 2014 Malcolm Ryder / archestra research
  27. 27. “Value” is a performance, not property • Donors and recipients of significant information are now virtually ubiquitous but often unidentified • I.T. will find them for the business • The business will facilitate and privilege the donor’s participation through more I.T. • Privilege requires solving information problems for donors in “real time”
  28. 28. In business semantics (the real-time creation of meaning), all I.T. users are now both donors and influencers BUSINESS INFLUENCE Intelligence Intellect Intellect Interaction Information status shared internal external privileged objective Prediction Interpretation Promotion Decision operations Surveillance Profiling Proposal Priority function Monitoring Pattern recognition Design Preference ability Sensing Detection Indication Proof Continually earned and renewed Highly time-sensitive Subject to sudden remodeling Frequently negotiated INFORMATION VALUE Increasingly, I.T. evolution means that every I.T. user participates in the full range of abilities, functions and operations that create or recognize meaning, and thus value, from information ©2014MalcolmRyder/archestraresearch
  29. 29. The Next Normal • The next wave of I.T.’s business value identifies parties as donors who have not even yet identified themselves as such, and solves their information problems • I.T. is a commodity; all users of I.T. are potential information drivers • Decisions by information donors and recipients predispose business performance • Results are increasingly less proprietary but they can be privileged • Solving information problems for donors and recipients “buys” business feedback • Interaction Privilege with Information People is the new I.P. of I.T.
  30. 30. © 2014 Malcolm Ryder / archestra research mryder@malcolmryder.com

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