Next Generation Enterprise Technology Strategy Moves Beyond the 'Professional' and 'Consumer' Split


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Transcript of a BriefingsDirect podcast on how rapid changes in consumer technology use are finding their way into enterprise IT.

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Next Generation Enterprise Technology Strategy Moves Beyond the 'Professional' and 'Consumer' Split

  1. 1. Next Generation Enterprise Technology Strategy MovesBeyond the Professional and Consumer SplitTranscript of a BriefingsDirect podcast on how rapid changes in consumer technology use arefinding their way into enterprise IT.Listen to the podcast. Find it on iTunes/iPod and Sponsor: HPDana Gardner: Hi. This is Dana Gardner, Principal Analyst at Interarbor Solutions, and yourelistening to BriefingsDirect. Today, we present a sponsored podcast discussion on some deep rumblings of change in how IT provides services and value to its many types of users. The past several years have spurred a changing set of expectations from users as they engage with technology and services, as both consumers and workers. The sense is that they want to get as much ease of use and productivity from enterprise technology as from their smartphones, socialnetworks, tablets, and cloud-based offerings. [Disclosure: HP is a sponsor of BriefingsDirectpodcasts.]That means that IT needs to rethink things a bit, to develop a "prosumer" strategy, whereby boththe applications and services they provide to internal employees and their end-user customersincreasingly bear the hallmarks of modern consumer services.Their applications may need to behave more like apps. Their provisioning may need to be morelike app stores. And self-service and intuitive adoption of new features need to be built in asprimary requirements. Ease in social collaboration has become a must.So how can IT adjust to this shift? What must they do differently, or more importantly, how mustthey think differently? This is the type of problem that a product or technology itself cannotaddress. It requires a comprehensive and methodological perspective, one that impactsconsumers, business goals, and behaviors around technology use and adoption.Were here now with an innovator and leader in HP’s Technology Consulting Group to learn howenterprises can tackle and exploit such complex challenges as developing a prosumer strategy.Please join me now in welcoming Liz Roche, a Director in the HP Technology ConsultingOrganization. Welcome to BriefingsDirect, Liz.Liz Roche: Thanks, Dana. Great to be here.Gardner: It seems that, not that long ago, corporations and businesses were adopting cutting-edge technology and then it would slowly trickle into homes and consumer use, usually in some
  2. 2. sort of a watered down approach. You might remember the Bob Interface that Microsoft had.What’s changed since then, Liz?Roche: A couple of things. First of all, when we look at the velocity of IT innovation, we look at Moore’s Law, which originally described integrated circuits, and that the number of transistors that can be placed on these integrated circuit boards would double approximately every two years. It has been common for us in IT to take a single data point and apply it across a broad spectrum of disciplines, but if you take that Moore’s Law notion and apply it to technology, its unbelievably clear that the velocity of innovation continues to double and triple.Technological singularityIn fact, there are futurists out there who believe that, at some point, this exponentialimprovement described in Moore’s Law will lead to something that folks are calling atechnological singularity, where progress in technology occurs almost instantaneously and isrolled out to the general population.Cutting-edge technology is no longer limited to the particular geography or location in which it’sgoing to be used. It’s now focused on the user and the role, and we are going to see that continue.Gardner: Weve seen some mega-trends too with mobile and ubiquitous wireless connectivity. Itseems that the adoption of technology now seems to be moving at the volition of the savvyconsumer and the younger folks are growing up in ways in which they are savvy from the get-go.So there seems to be some very large cultural, global trends that are also supporting this.Roche: Absolutely. If we look at some of the economic trends, youll start to see that folks whowent to college 20 or 30 years ago got out of school with the expectation of working their wayup a corporate ladder and adopting technology and tools that were provided by the corporation.The folks who are coming up these days have been weaned on technology.A really big mega-trend is that our workers of today and tomorrow, not us who are already in theworkplace, those folks coming up, are going to not just demand technology that will enable theirwork and their life, but they will expect it and indeed may not be able to function as well withoutit.Mega-trends include the consumerization of IT. At HP, were calling it the Instant-On Enterprise,where everything and everyone is connected. Immediate gratification and instantaneous resultsare mandatory. There is this notion of 24×7, always-on commerce. We could go on and on, but Ithink the big trends are in that general category, at least as pertains to the prosumer.
  3. 3. Gardner: Then, of course, there are also economic shifts. Theres been a lot of venture capitaldirected at applications and services that are consumer oriented. Weve certainly seen tremendousuptake on the social networks by consumers.So, the application becomes a business for many of these newer companies, and they can movevery quickly. They want to be first to market. They want to carve out large market share, and thatalso accelerates things like social networks, sharing of photos, entertainment streams, and so on.How do you see the economics of this shifting and pushing the adoption patterns that enterprisesneed to in fact try to catch up to?Roche: Its funny, because in many ways it has become a numbers game. Some of theseapplications or businesses price their products at low or no cost, with the objective beingconversion to paid, either subscriptions or paid services and advertising, but also the value of theconnection, the value of the social network as part of the business model.Shared knowledgeOrganizations or enterprises today are going to be taking philosophies like that and applying it to more traditional goods and services in the marketplace, where the value isnt necessarily on the initial transactions. It’s not about a 99-cent Angry Birds. Its about what happens once youre using the technology, the product, the service, the relationships that you form, the advertising, and the knowledge that can be shared. Gardner: So we have this cauldron of bubbling and churning change, and of course shifts like this can offer terrific opportunity, as we have seen from some companies that have come into markets and been very successful very quickly.Facebook certainly comes to mind. Theres also, of course, challenges, and perhaps peril, whenshifts happen and you dont react to them properly.We have now enterprises looking at these shifts, looking at how consumer and businesstechnology adoption patterns are merging, melding, or at least certainly have a more complexrelationship than in the past. What is it that you think organizations need to try to do in order tobe on that advantageous side of shifts rather than at the disadvantage?Roche: A bunch of things. Lets start with the big picture. Organizations that are truly instant-onenterprises are those that serve their constituents, customers, employees, partners with whateverthey want and need instantly, at any point in time, through any channel. So organizations that areinstant-on, and those are the kinds of organizations that we need to evolve to, are going toexplore better ways to run business and government by designing new process and methods, bybuilding flexible systems that interact with greater personalization.I think back to 10 or 15 years ago, when we were talking about mass customization and thescience fiction world that was all about personalization of every transaction and every purchase.
  4. 4. Companies are going there. I think companies will also need to look at frameworks fortransacting efficiently and securely.Governance is going to become ever more important. There are certainly legal and ethical goalsand constraints. Creating a framework for this instant-on enterprise will enable this whole idea ofeverybody on, and the prosumer, the professional, and the consumer coming together as oneperson, one view, with two different sides to them, two worlds. Thats going to have to be whereorganizations move to support.Gardner: I suppose as we see these two worlds, consumer and business or professional, wecertainly dont want to have to create distinct infrastructures to support those activities. Itscertainly a time for convergence and consolidation as well. So we look for a more common andextensible infrastructure to support all of these activities.The other thing that struck me by what you are saying is that this needs to be inclusive. Its notjust a technology equation. Its business, culture, behavior, demographics, and localization, reallya complex undertaking. Help me understand a little bit about how you at HP are looking at this.It seems to be a terrific opportunity for you.Roche: HP has a long, very cool history of being really innovative, but at HP today, our vision isto provide seamless and context-aware experiences for this connected world.Were in a particularly interesting time and place to provide this to our customers, because we aregoing through it ourselves, both internally -- as an employee I can see it -- but also in how weinteract with our customers, our partners, and all our constituents.Not just about prosumersJust by way of example, at HP its not just about prosumers, folks like me doing personalactivities during work hours and work during personal hours. Its about these personal activitiesevolving into becoming work activities.Im not just messing around on YouTube because I like looking at the latest videos. Im workingYou Tube, because thats where our HP Channel is. It’s one of the places where our HP Channellives and its one of the ways that I communicate with my clients. The same thing with Twitterand Facebook, and indeed even this podcast, speaking with you. These are prime examples ofthings that we at HP place a very high value on and our technology infrastructure has beenoverhauled to support that.The other interesting thing about HP being well-positioned to do this is that we have a depth andbreadth of both services and products that meet almost every requirement of this new instant-onenterprise.Certainly, we would never expect to see an HP-only environment. We are very, very focused onwhats right for our clients and our customers. But, the fact that I can reach back into my toolkit
  5. 5. of HP brain power and HP Labs and our various products and service units and gain access to theinformation and the mind share that my clients need, is a hugely valuable tool to have at mydisposal.Gardner: Clearly, HP has a large portfolio, terrific global reach, lots of technology, and as youpoint out, crosses the boundary and barrier between consumer activities and business activities.But, what about the Technology Consulting Organization, how does that come to bear on thesesorts of problems, on making a shift to a more prosumer thinking and approach to IT?Roche: Lets talk a little bit about what all clients should look for in a consulting organization.The way our services are structured, were designed to meet the various needs of transforming toan instant-on enterprise, I mean that is the entire backbone of how we have structured ourselves.If you look at our Converged Infrastructure team, for example, we have folks who are not onlydesigning services to support a converged infrastructure, but we have folks who are looking athelping organizations create a transformation vision for what it means, how to get there, whatyour roadmaps need to look like, or how mature are you as an organization.One of the things that we like to do a lot and, in fact, anyone considering working with aconsulting partner should look for this as well, is to help folks understand their own maturity. Imnot talking about the traditional capability maturity model. We certainly we can do that, but welike to look at things in a slightly different way. We like to look at organizational culture and therisk profile of that organization. That’s unique to how we work at HP.If I look at an organizational maturity model, were looking at where culturally folks are going tobe placed in terms of how they want to take a risk. Are they a science-fiction type organizationwhere theyre comfortable being on the bleeding edge, extremely early adopter organizations.Ive got this taxonomy in my brain from way back when I was an industry analyst and we used totalk about future organizations, which are these early adopter IT organizations, not bleedingedge, but willing to be early adopters.Broker of servicesThere are the folks that are in the mainstream, and then there are the stalled IT organizationsthat look to deliver IT support, rather than moving to enable the business with IT and to have aseat at the table and to be not just a provider but an actual broker of services.When youre a broker of IT services, which is what we teach our clients to be, you are providingnot just IT support, but youre also providing new cost models for business process enablement.Youre looking at things like service delivery in one of three ways: traditional, which is in-houseor outsourced, private cloud, public cloud.
  6. 6. At HP Consulting, we believe that youre driving to create a service portfolio that drives a valuechain. And the value chain delivers these services to the consumer, customer, citizen, viawhatever channel is most appropriate -- web, chat, IM, etc.Gardner: I suppose too, Liz, when you focus this problem set through a consultative solution ormethodology, youre also going to gain the experience of what those consultants have found inother regions of the world, or industry to industry, or from having worked in a consumerenvironment, to then taking that into a business environment.That’s something you don’t get from technology alone. It’s really experiential, a tribalknowledge. It seems to me that the consultative function is perhaps more important when wecome into this period of change that we are facing now than almost any other.Roche: It’s one of the things that is pervasive throughout HP Consulting, that it really takes avillage to deliver services and top-notch innovation to our clients.Every time I walk into a client site with a team of consultants, it’s not just one of us workingindependently in our area of specialty. It’s about all of us working together. It’s about that tribalknowledge.Weve been working really hard to leverage the innovation in the field. So we need a really strongknowledge management capability. Weve been working really hard to make sure that we shareour experiences, and as you say, through tribal knowledge, to capture that tribal knowledge, tosystematically input it into places where others can access it. And, of course, all while respectingthe privacy and the non-disclosures we have with our clients.When I walk into a healthcare organization to start working on a digital hospital activity, letssay, Ive got the knowledge of all the folks who have come before me, including our long historyof innovations.The bottom line is that if someone says to me, whats very different and special about your teamwalking in versus someone elses team walking in, Im going to say it is the depth and breadth ofHP thats behind me, including the way that we work with our customers and partner with ourclients to bring the depth and breadth of HP to bear in every engagement.Gardner: So were crossing chasms of consumer to business. Were crossing chasms of sourcingwith cloud versus on-premises, and were certainly looking at the difference that a consultativeunderstanding of the processes and the technology, so crossing the chasm of business issues andIT issues.Thats nothing new. Weve seen that, but it just seems to me that the stakes are higher now, andthat people need to be treated as people. This is not a matter of throwing a data center over thewall and saying, "Here, good luck with that." You really need to have almost a behavioral,empathetic, sympathetic approach to bringing people into change. Its not easy to change.
  7. 7. Resistance to changeRoche: No, its not. And while it may seem a little trite to say it, if anything is going to derail aproject, its going to be resistance to change, lack of a good change management strategy, andlack of executive support and governance.The cool thing about this whole instant-on enterprise approach that we are taking is that, we doactually have a taxonomy for change, and the taxonomy is both social and technology, and itbasically is a way to connect all these different constituents to meet their needs.The taxonomy itself says, if youre going to transform to an instant-on enterprise, the first levelof the taxonomy is looking at the business and government requirements. Within IT, the bestpractice today seems to be all about alignment, business IT alignment.We think that its really not about alignment, but its about taking that next step towardsempowerment and empowering the business with IT. That means becoming a strategic servicebroker. Thats the third level of this taxonomy.To be a strategic service broker, you need to look at disciplines like converged infrastructure,security, information optimization, application and infrastructure transformation, and look todeliver those through those three service delivery mechanisms we spoke of earlier -- publiccloud, private cloud, or traditional delivery, which includes outsourcing. Build those up into aservice portfolio and roll it out in terms of services that are delivered.If you group this whole thing together, youre looking at a hybrid delivery capability, where thereis no one-size-fits-all for every organization, but the taxonomy acts as a map and a rallying pointto get to this idea of everybody on and supporting the prosumer.Gardner: How about some examples of how this can work when its pulled together properly,when you have the alignment of services, consulting, technology, business buy-in, and so forth? Iknow that youve had experience within HP doing this yourselves, but what about outsideexamples? Maybe you can’t name the companies, but maybe the industries or at least the usecase scenarios where this is working?Roche: We actually have several great success stories with clients and Im going to start with oneclient, Black & Veatch. We worked with them recently to deploy a unified communicationssolution from Microsoft that, for them, is going to pay for itself in 18 months, which is prettyamazing when you consider that we did this, basically creating a virtual environment to helpBlack & Veatch solve their client’s problems.We worked with the client to design a unified communications solution and configure thearchitecture. We set up an infrastructure, including servers and load balancers and the like. Wetested our Unified Communications software and voice, and we obviously are using voice overIP (VoIP).
  8. 8. We did all sorts of enhanced service desk and helpdesk implementations. And we also providedour own helpdesk -- or we set one up for them that was staff by HP to resolve issues during thecutover. We did lots of training to help the users adapt to the new systems.Reduced riskAfter we put in place new converged technologies like IM and Mobile Access and desktopsharing, we replaced their phone system, and we gave them integrated fax and voicemail andemail. We ended up reducing the risk of their outages through lots of built-in redundancies. Wedid this all in about 20 weeks.As I said, they expect this project will pay for itself in 18 months, and essentially we gave Black& Veatch the ability to communicate and collaborate internally and with their customers aroundthe world.We worked with another client recently as well to provide them digital healthcare and digitalhospital capabilities, that included things like video, telemedicine, that included the convergedinfrastructure to support voice and IM and other things like that.We also worked with them to provide automated client case-management technology. Imspeculating a little bit, because some of the decisions haven’t totally been made, but imaginenurses walking into patient rooms carrying our new cool HP TouchPads, for example, rather thanlugging the big heavy carts that nurses today do when they are doing automated medical records.Its really cool stuff like that, but again speaks to the whole nature of the prosumer.Were working with education, a couple of education organizations, and in one instance workingwith some speech therapists to use touchpad devices and handheld devices to help students withspeech problems throughout their therapy. Rather than use flash cards, theyre using speciallybuilt software that students can touch and listen to and things like that. Again, its this integrationof consumer and professional capabilities.Gardner: Those are some really concrete examples of what’s happening and how the user is sortof empowered. I think were going to see more of this of course.Are there any harbingers of where you see the trends pointing us in terms of how technology andmethodology consulting come together? One of the big things of course with the economy stillbeing tough in many regions is how to do more with less. Is there a continuing economicincentive or I suppose even an engine of adoption that we should expect in the future, Liz?Roche: Absolutely. In fact, I might even go so far as to call it an economic imperative. You talkabout a harbinger of things to come, and I would say look at this whole reemergence of thisprosumer trend. When I say reemergence, Im talking about back in the 80s when Alvin Tofflerfirst made up the idea that there is a convergence. He wasn’t calling it a professional, but he wascalling it a producer and a consumer.
  9. 9. If we take that and look at how it has evolved into this notion that one person with a separateconsumer and professional life is over and that we are looking for convergence, that’s theharbinger. The idea that you have, as you said in your introduction, provisioning that might looklike app stores. Applications might look like apps on your device.But as we see technology continue to increase in its velocity, as we see more and moretechnology adopted into our homes earlier and more deeply embedded into everything we do.That’s where we are going to see the future go.Tight integrationJust think for a minute about our pets. Were embedding our pets with microchips that have notjust their name and their address, but maybe if they have got some medical risks, they are onthere.I think we are going to start seeing things like that, that tight integration, maybe not embedded inour bodies, but certainly medical records, certainly integrated payment devices, the idea thatpaper money goes away and we have one card that does every thing. Organizations that aren’t atleast thinking in that direction are really going to miss the boat.Gardner: In any event, it certainly sounds like whatever steps you take today will have a greaterimpact because this is an ongoing effect. I don’t see any end in sight to the tremendous amountof change that were facing. Im sure that these are going to be ongoing discussions.I want to thank our guest today. We have been here with Liz Roche, a Director in the HPTechnology Consulting Organization. Thanks so much, Liz.Roche: Thanks, Dana. It was an absolute pleasure to be here.Gardner: And I want to thank our audience for joining us for this sponsored podcast discussion.This is Dana Gardner, Principal Analyst at Interarbor Solutions. You were listening toBriefingsDirect. Thanks again, and come back next time.To connect further with Liz Roche, visit her at her micro site.Listen to the podcast. Find it on iTunes/iPod and Download the transcript. Sponsor:HPTranscript of a BriefingsDirect podcast on how rapid changes in consumer technology use arefinding their way into enterprise IT. Copyright Interarbor Solutions, LLC, 2005-2011. All rightsreserved.You may also be interested in:
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