Taking Care of 'The Business'
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Taking Care of 'The Business'

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What they don't teach you at Harvard 'Computer Science' School! With the rise of Social Media, Mobility, Digital Marketing, Cloud Services, BYOD, etc!, our business stakeholders are more aware and in ...

What they don't teach you at Harvard 'Computer Science' School! With the rise of Social Media, Mobility, Digital Marketing, Cloud Services, BYOD, etc!, our business stakeholders are more aware and in tune with technology than ever before – indeed many are even empowered to make technology purchasing decisions themselves. But to effectively deliver the business benefits these technologies promise, we technologists equally need a good understanding of business, and how best to apply new technology in the context of a particular organisation, such that we can all can arrive at the best outcome. This session is in essence a whirlwind MBA, providing the frameworks necessary to better appreciate business from a technologists perspective, and to communicate with business stakeholders more effectively. We’ll look at industry sectors, business models, supply chains, business strategy, market segments, distribution channels – relating this back to how technology underpins each aspect of business, and how major platform pieces and on-prem, cloud, and hybrid architectures are key in enabling modern businesses and strategies.

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Taking Care of 'The Business' Taking Care of 'The Business' Presentation Transcript

  • TAKING CARE OF ‘THE BUSINESS’ Paul Monks VIC.NET SIG, January 2013
  • FROM THE ECONOMYDOWN TO THE ENTERPRISE
  • “IT’S THE ECONOMY, STUPID” Population, Participation, ProductivitySource: Clinton Election Campaign 1992; Intergenerational Report 2002, Treasury/Ken Henry
  • INDUSTRY SECTORSAustralia and NZ Standard Industrial Classification SectorA — Agriculture, forestry, fishing and hunting PrimaryB — MiningC — ManufacturingD — Electricity, gas and water supply SecondaryE — ConstructionF — Wholesale tradeG — Retail tradeH — Accommodation, cafes and restaurantsI — Transport and storage TertiaryJ — Communication servicesK — Finance and insuranceL — Property and business servicesM — Government administration and defenceN — Education ‘Quarternary’O — Health and community servicesP — Cultural and recreational services ‘Quinary’Q — Personal and other services Source: 1292.0 ANZSIC 2006, Australian Bureau of Statistics
  • EVOLVING ECONOMIES Source: Conditions of Economic Progress, Clark, 1940
  • A HUGE IMPACT ON (FROM!) MOST OF US Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012
  • MANY SOURCES OF ONGOING TURBULENCE Political Environ- New Entrants Economic mental Existing Supplier Buyer Compet- Power Power ition Legal Substitute Social Products Technology Source: PEST(LE) Analysis, ???; Competitive Forces, Porter, 1979
  • STRUCTURES AND STRATEGIES
  • THE SAME BASIC STRUCTURE/FUNCTIONS, REGARDLESS OF SIZE/INDUSTRY Source: Competitive Advantage, Porter, 1985
  • WITH THE SAME BASIC GROWTH STRATEGIES Market New Product Penetration Development (Existing Product, (New Product, Existing Markets) Existing Market) Market Diversification Development (New Product, (Existing Product, New Market) New Market) Source: Corporate Strategy, Ansoff, 1965
  • AND THE SAME BASIC TACTICS Grow the Market / Increase Usage Win Competitors Market Penetration Customers Win New Buyers / Improve Productivity Repeat Purchasers Reduce Costs New Product Extend Product Line Outsource Development (Up/Down/Side) OperationsIncrease Sales Convert non-users Redeployment of Capital Reduce Investment Base Market Enter new Innovation, Divestment, development segments Unrelate Diversification Enter new geographies Related Develop new products for new Diversification related markets Source: Adapted from ‘Products and Strategies’, Brownlie, 1985
  • INFLUENCED BY TYPE OF PURCHASE Low Involvement, Low Involvement, Informational Transformational (Detergent, Fuel, (Snacks, Soft Drinks, Credit Cards, Pet Fast Food, TV Shows, Care, Basic Foods) Computer Games) Low Risk, Low Risk, Self Commodity Expression High Involvement, High Involvement, Informational Transformational (Whitegoods, Loans, (Fashion Clothing, Insurance, Advice, Cars, Motorcycles, Computers, Medical) Cosmetics, Holidays) High Risk, High Risk, Self ‘Commodity’ Expression Source: Marketing Communications, Rossiter et al, 2005
  • AND DISTRIBUTION CHANNEL EMPLOYED• Business to Consumer (B2C) – Producer → Consumer – Producer → Retailer → Consumer – Producer → Wholesaler → Retailer → Consumer – Producer → Agent → Wholesaler → Retailer → Consumer• Business to Business (B2B) – Producer → Industrial User – Producer → Industrial Distributer → Industrial User – Producer → Agent → Industrial User – Producer → Agent → Industrial Distributor → Industrial User• Services – Service Provider → End User – Service Provider → Agent/Broker → End User – Service Provider → Retailer → End User Source: Strategic Marketing, Reed, 2010
  • AND UNDERPINNED BY FUNDAMENTALLY THE SAME TECHNOLOGIES Source: Adapted from Ovum’s ‘IT Reference Model’, Ovum, 2012
  • MODERN BUSINESSESEMBRACING CHANGE
  • NO ORGANISATION IS AN ISLAND Company Value Collaborators Customers Source: The 5C Extensions to ‘Mind of the Strategist’, Ohmae, 1991
  • NEWER VIEWS OF BUSINESS MODELS Source: Business Model Generation, Osterwalder et al, 2010
  • BASED ON DIFFERENTIATION Source: Blue Ocean Strategy, Kim & Mauborgne, 2005
  • CAPITALISED UPON BY NEW ENTRANTS Source: Zynga Business Model Canvas
  • AND CALLING FOR A HOLISTIC VIEW OF TECHNOLOGY ALIGNMENTBusiness Architecture Solution Architecture Software Architecture Information Application Data Architecture Architecture Architecture / Interaction / Functional / Domain Design Design Design Security Architecture Infrastructure Architecture Every single piece (in both worlds) needs to be aligned and moving in the right direction! Source: Microsoft Business Architecture, Microsoft, 2006+
  • THE CHANGING ROLE OFTECHNOLOGISTS
  • NO TECHNOLOGY IS ‘STRATEGIC ’ “IT did not need to beinvolved in the purchasing decision” Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012
  • REALLY JUST REMOVING COMPETITIVE DISADVANTAGE Upgraded 2 Years Ago 54% Upgraded 3 Years Ago 32% Upgraded 4 Or More Years Ago - 14% Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012
  • DIGITAL STRATEGY – EVERYTHING OLD IS NEW AGAIN!Umm… invest in Err… move allcustomer channels and supporting functionsanalytics/intelligence and systems into the cloud or offshore Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012
  • SO WHAT?• A Matter of Perspective – It’s never been easier for new entrants to scale up – Incumbents have never been so entrenched in legacy• Custom ‘Commodities’ Hinder, not Help – Bespoke operations are now rarely a competitive advantage – customers tend not to care about nuance. – Most businesses care more about agility than costs.• Differentiation and competitive advantage now tends to be based in connected supply chains and effective market channels – Not ‘traditional IT’ for the ‘back office’ – The internet has only accelerated this trend
  • SO WHAT?• IT is critical for modern businesses, but in a different way to where the focus has been previously – Organisations will quickly become either ‘Yesterday’s Heroes’, ‘The Survivors’, or ‘The Value Masters’• To not only survive, but to truly create customer value, we must architect systems for engagement and collaboration – With both Partners and Customers – In ‘real-time’ wherever possible – Think Federated Identity, Cloud Service Bus, SaaS back-office apps, etc – If you don’t, guaranteed another organisation will…• You probably know how technology can deliver value better than your boss or ‘the business’ does – Probably just need to express things in a business context – In a software vendor or consultancy, it is double the fun
  • RECOMMENDED READING• Positioning: The Battle For Your Mind (1981)• Getting To Yes (1981)• What They Don’t Teach You At Harvard Business School (1984)• Influence: The Psychology of Persuasion (1984)• The Fifth Discipline (1990)• Leading Change (1996)• The Innovator’s Dilemma (1997)• The Tipping Point (2000)• Blue Ocean Strategy (2005)• The World Is Flat (2005)• Reinventing Project Management (2007)• Business Model Generation (2010)• Great By Choice (2011)