The ‘success trap’ of new, emerging and disruptive technologies

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The adoption of these technologies may provide much value in the short term, however may become a liability at some point down the track. How can you and your organizations insulate yourself against the future adverse consequences of these emerging and disruptive technologies – the so called success trap?

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The ‘success trap’ of new, emerging and disruptive technologies

  1. 1. Helping your organisation avoid the ‘success trap’ of emerging and disruptive technologies CIO Strategy Summit Gold Coast, Australia - 21st August 2013 © All rights reserved. Rob Livingstone Advisory Pty Ltd. Unauthorized redistribution prohibited without prior approval. ‘Navigating through the Cloud’ and ‘Success is our story, let’s make it yours’ are Trademarks of Rob Livingstone Advisory Pty Ltd.
  2. 2. Agenda 1. Exploring the ‘success trap’ 2. Forces shaping enterprise IT 3. Strategic inflection points 4. Democratisation of : • Technology • Enterprise IT • Risk • Privacy • Intellectual Property 5. Ideas for avoiding the technology induced Success Trap 6. Open questions and discussion
  3. 3. Attributes of the success trap: • What’s been successful up to now, may be self limiting at a point in the future • Keep exploiting existing opportunities along the same lines until you run out of resources and/or options, resulting in a collapse or catastrophic change • Part of the human condition?: • Present: Concrete / tangible / obvious • Future: Abstract • By way of illustration, let’s explore a few examples 1. Exploring ‘The Success Trap’
  4. 4. Antibiotic-resistant bacteria Can you die from a cut finger? Success has led to widespread use including: •Over prescription •Use in food production •No new class of antibiotics discovered since the 1980s. 1. Exploring ‘The Success Trap’
  5. 5. Economic • GFC – Could not stop ourselves gorging on easy money and the Ponzi economy. • Constellation of organisations, not to mention whole countries – impact on society – widespread and profound and still being felt 1. Exploring ‘The Success Trap’
  6. 6. • The first, and most influential of these forces in my view, is the increase uncertainty and volatility facing Australian organisations, whether public, private or government. This tends to drives executive decision making which is increasingly focussed on the short term. • The second influence is the fundamental shift in the expectations of enterprise IT by other executives and the business as a whole. This is a direct consequence of having first hand exposure to user friendly, low cost (or free) consumer grade IT technologies and solutions, and pervasive marketing from IT vendors. 2. Forces shaping enterprise IT
  7. 7. • The third is internal inconsistency of business strategies across business units. This presents a challenge for those in IT leadership roles, who are expected to respond to inconsistent short term demands, some of which are fragmented, not always well thought through, potentially contradictory and not always in the best long term interests of the organisation. • The fourth is the expectation that IT leadership should not appear as technologists. The ‘new IT leader’ should be able to communicate clearly in ‘business speak’ and turn technical, governance and risk complexity into plain language. 2. Forces shaping enterprise IT
  8. 8. 2. Forces shaping enterprise IT In the midst of this, how can IT influence the landscape?
  9. 9. Empowerment, trusting, adaptable, multi-skilled, perceptive, observant, powers of persuasion, self sufficiency, engagement. Governance, process, control, policy driven, mono-skilled, change is a threat, careers in transition, reliance on the ‘enterprise’ 2. Forces shaping enterprise IT What’s the appropriate approach to creating influence?
  10. 10. At an inflection point, you barely notice the change ….. 3. Strategic Inflection Points …. Then you’re heading in another direction …..
  11. 11. What forces are at play on your organisation right now? How adaptive is your enterprise strategy? – a change that will require the transformation of the organisation’s strategic intent, direction, action, etc. – If not managed effectively, survival is not guaranteed! It’s all about managing the transition ….. 3. Strategic Inflection Points "It is not necessary to change. Survival is not mandatory." - William Edwards Deming
  12. 12. • The early detection of inflection points is crucial to: – The survival of the organisation: good leaders detect change well before it’s influence is generally recognised – Feedforward, not feedback – As a CIO, seize the high ground when it comes to technology induced change and guide the organisation through the spectrum of opportunities and pitfalls in the adoption of new and emerging technologies. • Develop an ‘early warning’ radar 3. Strategic Inflection Points It’s all about managing the transition …..
  13. 13. Rise of our U.S. centric global digital landlords such as Apple, Amazon, Google, Microsoft, and others are shaping the Technology ecosystem. + Industrialisation of IT + Cloud computing + Mobility (Smartphones and tablets) + Low / Nil financial barrier to adoption + Herd mentality = + Democratisation of technology 4. Democratisation of TECHNOLOGY
  14. 14. • The phenomenon of Shadow IT is pervasive, and here to stay. • Shadow IT has re-shaped expectations of IT within the enterprise by users, and your organisation’s customers Tony Soprano “You see out there it's the 1990s but in this house it's 1954” Is this what users feel about their enterprise IT systems when compared to what they can do on their home PC, tablet or Smartphone? 4. Democratisation of ENTERPRISE IT
  15. 15. http://reports.weforum.org/global-risks-2013/ 4. Democratisation of RISK
  16. 16. But what about privacy in an era in which your every move has been recorded somewhere in the digital world through your electronic transactions? Install Collusion add-on for your Firefox browser then browse your secure corporate site(s). •Collusion is an experimental add-on for Firefox and allows you to see all the third parties tracking your movements. https://www.mozilla.org/en-US/collusion/ 4. Democratisation of PRIVACY
  17. 17. 4. Democratisation of INTELLECTUAL PROPERTY The gradual demise of the once giant Nortel through the persistent siphoning off of intellectual property by alleged Chinese hackers over a 10 year period should be a salutary reminder that nothing should be taken for granted in the realm of information security. http://tinyurl.com/6olnzxw Question: Who is taking an interest in your enterprise’s IP?
  18. 18. 5. Avoiding the Technology Success Trap NINE Points to Ponder ….
  19. 19. 5. Avoiding the Technology induced Success Trap a. Institutionalise innovation organisation-wide b. Recognise that your IT department (or vendor) cannot drive innovation unilaterally c. Formally adopt agile methodologies throughout your organisation. d. Review managerial and staff incentive schemes e. Transform your IT departments from a technology cost center to a business relevant services broker f. IT Vendor Management V2.0 g. Protect your crown jewels h. Monitor systemic risk i. Manage the technology evangelists in your organisation
  20. 20. a. Institutionalize innovation organisation-wide FROM COST MANAGEMENT TO INNOVATION AND BUSINESS VALUE. Michael R. Weeks & David Feeny California Management Review VOL. 50, NO. 4 SUMMER 2008 Pg 127. Have expectation that enabling new and superior ways of exploiting IT, which would in turn enable business improvements to be achieved Change the way the business operates Can have significant impacts on the whole organisation, its stakeholders, customers, staff, etc… 5. Avoiding the Technology induced Success Trap Best antidote for surviving technology induced disruption
  21. 21. b. Recognise that your IT department (or vendor) cannot drive innovation unilaterally ‘IT relentlessly drives and delivers innovation at a global, societal, and individual level at phenomenally fast rates, yet, paradoxically, IT departments within organisations often struggle to drive innovation from within their own organisations to the same extent’ ** ** ‘The IT Innovation Paradox’ CIO Magazine Summer 2010/2011, Pg 14. 5. Avoiding the Technology induced Success Trap
  22. 22. c. Formally adopt agile methodologies throughout your organisation 5. Avoiding the Technology induced Success Trap • Agile is the new black • Start at the enterprise strategy level. http://agilemanifesto.org/
  23. 23. d. Review managerial and staff incentive schemes • Framing short term financial incentives primarily around functional responsibilities will reinforce behaviours that will drive results that may not be in the best long term interests of the whole organisation. • Incentives drive temporary compliance. • Localised / functionally focussed incentives reinforce silos • Obsessive and inappropriate focus on driving localised short term targets can hamper or even undermine enterprise-wide innovation initiatives that could well contribute to the ultimate survival of the organisation. 5. Avoiding the Technology induced Success Trap
  24. 24. e. Transform IT from a technology cost center to a business relevant services broker • SaaS: Strategy as a Service: Proactively deliver business relevant strategies to meet defined or expected changes with agility. • Clearly define the accountability locus for enterprise IT across the organisation. - What’s in-scope for the management of IT services? - What is /is not negotiable in the IT portfolio of services? - IT should be the trusted advisor, not consultants or vendors! • IT should constantly and proactively articulate the implications for disruptive and emerging technologies for their organisation • Upgrade / coach IT leadership to operate confidently and with business relevance at most senior levels of management 5. Avoiding the Technology induced Success Trap
  25. 25. f. IT Vendor Management V2.0 Upgrade your technology vendor management practices • The conventional RFP-bid-response approach to engaging IT vendors may not be adequate in the uptake of new, emerging and disruptive business technology. • Complex, monolithic contracts inhibit agility and partnering across a range of providers – also inhibiting interactions between (potentially competing) providers. • Need for a far tighter, more transparent ongoing working relationship between you, your provider(s) and between the providers themselves 5. Avoiding the Technology induced Success Trap
  26. 26. f. IT Vendor Management V2.0 5. Avoiding the Technology induced Success Trap Factors shaping vendor relationship landscape 1. IT may no longer be the primary decision makers. 2. Your exit is more important than the entry. 3. Disruption in your vendor’s market 4. Too big to talk? 5. ‘Agile’ is the new black 6. Risk appetite is not constant. 7. Managing vendor jurisdictions. 8. Your vendor’s shareholders are not yours. 9. What’s the purpose of your contract? 10. Fragmentation of the vendor’s supply chain. http://rob-livingstone.com/2013/07/smarter-it-vendor-management/
  27. 27. g. Protect your crown jewels • Intellectual property is often your organisation’s primary asset – ensure your IT and organisational security controls are effective and appropriate • For Cloud and outsource service providers, do not assume compliance to specific legislation such as privacy, data protection, or respect for jurisdictional boundaries. • Cybercriminal activity is a multi billion dollar industry – and it’s a constant arms race between the good guys and the bad guys – sometimes the bad guys win • Organisations often reluctant to report that they have been successfully hacked or compromised for reasons of brand damage, adverse impact on share price, etc. Mitigates against industry- wide collaboration to fight cybercrime & lowers the perceived level of risk 5. Avoiding the Technology induced Success Trap
  28. 28. g. Protect your crown jewels http://www.unodc.org/unodc/en/organized-crime/expert-group-to-conduct-study-cybercrime-feb-2013.html Read authoritative, vendor independent reports and work out what’s relevant to your organisation 5. Avoiding the Technology induced Success Trap
  29. 29. h. Monitor Systemic Risk 5. Avoiding the Technology induced Success Trap Referring to Slides: 23, 24 and 25 www.slideshare.net/RobLivingstoneAdvisory/rla-cio-summit-27-feb-2013-transitioning-the-it-department
  30. 30. 5. Avoiding the Technology induced Success Trap Slide 23 h. Monitor Systemic Risk
  31. 31. 5. Avoiding the Technology induced Success Trap Slide 25 h. Monitor Systemic Risk
  32. 32. i. Manage the technology evangelists in your organisation 5. Avoiding the Technology induced Success Trap ‘The technology evangelist’ CIO Magazine July/August 2013, Pg 68.
  33. 33. • The technology evangelist is typically categorised by the persistent advocacy and promotion for the use of a particular product or technology with a view to its broad adoption • Distinguishing the true technology evangelist from an enthusiastic and persuasive acolyte of a particular vendor’s offering may be a challenge for senior Non-IT executives. • The single minded technology evangelist's enthusiasm for their specific solution may gain a groundswell of support without the appropriate due diligence and rigour being applied to the solution. • This fuels the emergence of Shadow IT, which, if not managed appropriately could set the seeds of future systemic risk for the organisation through inappropriate use of technology 5. Avoiding the Technology induced Success Trap i. Manage the technology evangelists in your organisation
  34. 34. W: www.rob-livingstone.com E: rob@rob-livingstone.com P: +61 2 8005 1972 M: +61 419 632 673 F: +61 2 9879 5004 Tw: @rladvisory ROB LIVINGSTONE - Fellow, University of Technology, Sydney - Principal, Rob Livingstone Advisory Pty Ltd ThankYou! © All rights reserved. Rob Livingstone Advisory Pty Ltd. Unauthorized redistribution prohibited without prior approval. ‘Navigating through the Cloud’ and ‘Success is our story, let’s make it yours’ are Trademarks of Rob Livingstone Advisory Pty Ltd.

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