Innovation And It Alignment 121510 Abbreviated

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Introducing concepts that address the need to align today\'s IT with the business need to manage Innovation.

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Innovation And It Alignment 121510 Abbreviated

  1. 1. ALYNDe LLC “Managing The Pace of Change and Complexity of Innovation by Aligning Your Business Strategy and IT Factory to Achieve Results” By: Glenn A. Bunker Partner Agenda ALYNDe LLC Review Marketplace Dynamics Leadership Challenges: Understanding Your Strategic Direction The Value Proposition for Innovation Lifecycle Management Solution Management Approach and Common ChallengesTransforming Innovation © 2009 ALYNDe, LLC 2 1
  2. 2. ALYNDe LLC Review Marketplace Dynamics Introduction ALYNDe LLC Key contributors see Innovation Lifecycle Management (ILM) activities a little differently:  The Strategist sees ILM solutions as a way to improve the allocation of resources across the enterprise and to develop a strategically correct portfolio to support the corporate vision.  Finance looks to ILM solutions to improve the allocation of scarce financial resources more effectively while optimally achieving maximum shareholder value.  IT views ILM solutions as a means to prioritize and select the right projects to support business strategy, foster accountability and deliver results with a highly skilled but constrained workforce.  Business Units (LOB’s) see ILM solutions as the framework within which to manage the processes, collaboration and work needed to deliver products to customers faster - improving time to market performance, operational effectiveness and ROI. CEO’s, CIO’s, COO’s, CFO’s and LOB Executives should look to ILM frameworks to deliver big wins with positive financial impacts within a climate of rapid change.Transforming Innovation © 2009 ALYNDe, LLC 4 2
  3. 3. There Are Pressures For Change… ALYNDe LLC External Pressures Pace of Technology Resource Issues Change Margin Zone (Supply and Demand Constraints for Skilled Workers) Constrained Performance Workforce Pressures Internal Pressures Business Climate Mergers & (New Markets, Acquisitions Innovation Complexity) Reduced Budgets New Competitors RegulatoryTransforming Innovation © 2009 ALYNDe, LLC 5 Causing Operational Concerns... ALYNDe LLC Including:  Disruptions to launch schedules and budgets for new business solutions, regulatory changes and demand complexity (managing dynamic demand)  Poor project planning, management and communications regarding issues that affect timely delivery of programs, products and services (time to market)  Shortages of critical resource skills, especially for emerging technologies, methodologies and business processes; Lack of tools for human resource capacity planning and optimization (workforce management)  Inefficient, “silo’ed” and redundant program and project management tools and procedures (program and project management)  Ineffective knowledge capture, search and distribution capability to improve problem solving and team performance (knowledge management)Transforming Innovation © 2009 ALYNDe, LLC 6 3
  4. 4. Forcing Consideration Of Solutions That... ALYNDe LLC Enable partners, employees, managers and executives to perform everyday activities themselves, anytime and anywhere in order to:  Create a culture that is comfortable with collaboration  Establish the concept of an integrated/virtual community  Manage the impact and complexity of innovation on your competitive posture  Streamline decision-making processes for new development opportunities  Allow management to focus on executing the company’s overall business strategy with the support of an agile IT operation  … Support “proactive” vs. “reactive” decision-makingThe ultimate goal is to combine Process, People, Portfolio and Project Management best practices to help people improve the way they do their jobs.Transforming Innovation © 2009 ALYNDe, LLC 7 ALYNDe LLC Leadership Challenges: Understanding Your Strategic Direction 4
  5. 5. Leadership Challenges ALYNDe LLC Executive Leadership is facing increasing pressure to control costs and improve operational performance for future business growth and profitability External Forces – Customers, Planning, Building & Integrating Competitors & Technology Business Solutions Trends  Define effective strategic planning and Capitalize on emerging technologies governance processes. to achieve a competitive advantage.  Meet capital planning requirements for Provide IT-enabled products and effective innovation. services before competitors. Create an ILM  Break down business unit silos and Adapt to changing business models Framework for identify common applications and IT and partnerships. Managing services needed to eliminate NVA work. Organizational Performance Measuring & Reporting Controlling & Managing Improvement Operations  Calculate the return on investment for proposed IT investments by determining Manage Product/Service portfolios the expected business and technology and IT investments needed for costs and benefits. effective support.  Establish an Innovation Management Identify strategic cost savings. Office to monitor status and manage Define and monitor performance risks. metrics and service level agreements.  Develop an effective Governance program that involves business andTransforming Innovation © 2009 ALYNDe, LLC technology leaders. 9 Can You Identify With This Manager? ALYNDe LLCTransforming Innovation © 2009 ALYNDe, LLC 10 5
  6. 6. “Managing is Harder Than it Looks…” ALYNDe LLC Integrating and over-customizing Managing simultaneous rollout of multiple systems/processes to fit current initiatives & scope creep beyond stove pipes organizational capability to execute Consolidating data from Automating methodology, disparate systems and workflows & processes different sources Manage the entire investment Managing investment portfolio portfolio & relevant information costs, benefits & capacity Managing demand & performing Lack of critical skills at the ‘real time’ what if analysis and right time due to poor simulations resource planning Identify losing project and Improve quality of decisions & product candidates (go/kill reduce decision lead times gating criteria)Transforming Innovation © 2009 ALYNDe, LLC 11Given These Challenges, What Is Your ALYNDe LLCStrategic Direction? To meet these business challenges while exceeding performance goals, an Innovation Lifecycle Management Framework is needed to enable Operational Excellence, Customer Intimacy and Product Innovation strategies to levels consistent with your business objectives. Let your portfolio metrics reflect your emphasis…Transforming Innovation © 2009 ALYNDe, LLC 12 6
  7. 7. Given These Challenges, What Is Your ALYNDe LLCStrategic Direction?  Low (total) price  Low (total) price  Emphasis on efficiency and reliability  Emphasis on efficiency and reliability  Hassle-free service  Hassle-free service  Standardized processes and operations  Standardized processes and operations  Management systems that measure and monitor transactions  Management systems that measure and monitor transactions Operational Excellence Customer Intimacy Product Innovation Organization built around the customer rather Organization built around the customer rather  Focus on invention, creativity and  Focus on invention, creativity and than the market than the market experimentation experimentation Emphasis on flexibility and responsiveness Emphasis on flexibility and responsiveness  Willing to make one’s own products obsolete  Willing to make one’s own products obsolete Business structure that delegates decision Business structure that delegates decision  Loosely-knit organization based on teams  Loosely-knit organization based on teams making to the field making to the field  Management systems that are results driven  Management systems that are results driven Culture that embraces specific rather than Culture that embraces specific rather than general solutions general solutions  A culture that encourages innovation  A culture that encourages innovationTransforming Innovation © 2009 ALYNDe, LLC 13Questions Regarding Your Strategic Direction… ALYNDe LLC Lost in the process of reacting to market forces and organizational challenges is the need to extend your strategic plans to a level of measurable operational effectiveness.  First and foremost, what existing processes, methods and/or tools give you confidence in your ability to meet or exceed performance objectives?  What do you find to be the greatest challenges regarding your ability to meet and/or exceed performance objectives? Are there innovation management, product development, resource planning & utilization, cross-departmental strategy coordination, process/workflow enablement and/or program management concerns?  What are your experiences to date with organizational Portfolio, Program, Project and Resource Management solutions? Positive? Beneficial? Ineffective?Transforming Innovation © 2009 ALYNDe, LLC 14 7
  8. 8. Questions Regarding Your Strategic Direction… ALYNDe LLC Lost in the process of reacting to market forces and organizational challenges is the need to extend your strategic plans to a level of measurable operational effectiveness.  How would you grade your ability to link your organization’s strategic goals to the various work initiatives (product development programs, IT projects, application development, service management) that are planned? ...in process?  Do you have a well-defined IT Governance model that highlights the status of cost take-out or revenue-generating initiatives and the subsequent actions that deliver differentiated products and services to your customers?  Do your project teams have the ability to collaborate? …Inform Management? …Measure Performance?Transforming Innovation © 2009 ALYNDe, LLC 15Questions Regarding Your Strategic Direction… ALYNDe LLC Lost in the process of reacting to market forces and organizational challenges is the need to extend your strategic plans to a level of measurable operational effectiveness.  How would you grade your position as a “1st-Mover” within the markets/segments you serve?  Are consistent valuation methods and measures being used to determine such things as: 1. earned-value performance, 2. stage-gate performance, 3. financial impacts to on-going programs, and 4. post-delivery results for each program, project or service initiative?  Can your organization “load balance” the workforce for an optimal mix of internal (employee) and external (contractor, supplier, partner) personnel based upon cost and demand requirements?Transforming Innovation © 2009 ALYNDe, LLC 16 8
  9. 9. Answers to These Questions Force Strategic ALYNDe LLC Choices… You will confront a set of cascading strategic choices... What are your goals and aspirations? Where will you compete? How will you win in your chosen markets? What capabilities must be in place to win? What management systems are required?Transforming Innovation © 2009 ALYNDe, LLC 17 Answers to These Questions Force Strategic ALYNDe LLC Choices… You will confront a set of cascading strategic choices... Understanding these choices means:  Your Strategy will become the pattern or plan that integrates your major goals, policies and action sequences into a cohesive measurement-enabled Framework …and positions your business within your competitive markets …in order to create a sustainable competitive advantage.  Where do you play? - Industry Segment(s) - Narrow vs. Broad Focus  How will you win? - Value Proposition - Sources of Competitive Advantage (Operational Effectiveness, Product Innovation, Customer Intimacy?)  How best to configure your portfolio management framework to measure business performance against strategy to deliver value to targeted customers as efficiently and effectively as possible?Transforming Innovation © 2009 ALYNDe, LLC 18 9
  10. 10. Answers to These Questions Force Strategic ALYNDe LLC Choices… You will confront a set of cascading strategic choices... You should confront these choices to develop actionable strategies supported by:  Enterprise and IT Governance Frameworks (CoBIT, ITIL, etc),  Effective Innovation Management, Application and Product Development best practices (Stage-Gate, RUP, etc),  Workforce Optimization (Capacity Planning, Resource Leveling, etc), and  Project and Product Portfolio Management Best PracticesTransforming Innovation © 2009 ALYNDe, LLC 19 ALYNDe LLC These Choices Impact Your Strategy Strategy: “The pattern or plan that integrates an organization’s major high Operational goals, policies and action sequences into a cohesive whole. A well- Effectiveness Business Unit 2 Strategic Advantage formulated strategy helps to marshal and allocate an organization’s resources into a unique and viable Business Unit 1 posture based on its relative internal Business Unit 3 Value competencies, shortcomings, anticipated changes in the environment and contingent moves by intelligent opponents.” * Business Unit 5 Strategic Advantage: Attained when Business Unit 4 action sequences fit the organization low and when business processes support high Relative cost position low and enforce objectives within a measurable Governance Framework. This framework must Operational Effectiveness support all roles with information that is needed to make decisions based upon relevant and timely metrics. *J.B. (James) Quinn – (Quinn, J. (1980) “Strategies for change: Logical Incrementalism”, Irwin, Homewood)Transforming Innovation © 2009 ALYNDe, LLC 20 10
  11. 11. So, Why is Portfolio Management ALYNDe LLC Important? Because…  Strategy is affected by choosing high Operational which activities to perform and how Effectiveness to measure them Business Unit 2 Strategic Advantage  Strategic advantage occurs from the fit and alignment of those Business Unit 1 activities to your business Business Unit 3 Value strategy  Operational Effectiveness is achieved by performing the right activities at the right time with the right people to achieve desired Business Unit 5 performance results Business Unit 4 low high Relative cost position low Operational Effectiveness Effective solutions impact both Strategic Advantage and Operational Effectiveness. “It’s hard to manage what you can’t measure”Transforming Innovation © 2009 ALYNDe, LLC 21 ALYNDe LLC An Ideal Desired-State Situation “Allows you to plan today rather than respond tomorrow...” high Operational  Processes, technology and people across business units are aligned in Effectiveness Business Unit 2 Strategic Advantage a coordinated environment to deliver high value at a low cost Business Unit 1  Deliberate strategy to achieve improvement is sustainable Business Unit 3 Value All Business Units  Operating Systems in place to avert potential threats to competitive position and financial performance  A Portfolio Management Framework transforms operating data into Business Unit 5 Business Unit 4 Insight low high Relative cost position low Operational Effectiveness Effective Business and IT alignment impacts both Strategic Advantage and Operational Effectiveness.Transforming Innovation © 2009 ALYNDe, LLC 22 11
  12. 12. ALYNDe LLC The Value Proposition for Comprehensive Innovation Lifecycle ManagementComprehensive Innovation Management ALYNDe LLC Framework Structure Solution Framework Innovation Project and NPD Portfolio Integration Governance Program Lifecycle Management Services Management Management Quality & Process Innovation: Portfolio Management, Six Sigma, Product Lifecycle Management Capability Maturity Indexing, Innovation Lifecycle Management, Stage-Gate.™ Capabilities Framework: Competence Development & Process Excellence, PMI & OPMI®, Lean Six Sigma (LSS) Industry Standards: IEEE, ISO, DoD, SEI CMM and CMMI ®, GAAP (SOP 98-1) Technology Enablers & Alliance Partners: Product Evaluation, Delivery Support & Development. Built on a foundation of fully integrated solutions designed to drive the creation of measurable business value through the timely and efficient deployment of enabling methods, process, and technologies.Transforming Innovation © 2009 ALYNDe, LLC 24 12
  13. 13. Comprehensive Innovation Management ALYNDe LLC ILM solutions are “Frameworks” t Pe en rfo Bud em r m ge ag an tin an ce g M -b io Value ol as From rtf ed Po ILM Value from PPM Execution Management Innovation Lifecycle Management (ILM) is based upon a framework of fully integrated Application Components designed to drive the creation of measurable business value. This is accomplished through the timely and cost effective deployment of enabling processes, technologies and resources. Transforming Innovation © 2009 ALYNDe, LLC 25 Comprehensive Innovation Management ALYNDe LLC ILM Framework - Value Proposition What you need to do… What you are able to do… Improve visibility of all Improve alignment of t Pe en proposed and active strategy, targets and budgets rfo Bud em investments Improve collaboration r m ge ag Objectively prioritize among planning, budgeting, an tin an and select investments financial, and program staff ce g M -b io Align investments with Value Capture full costs of all ol as strategy From rtf resources identified with ed ILM PoImprove portfolio balance achieving goals and objectives Measure investment results Establish linkages between results and Execution Management resources What you really can do… Efficiently allocate critical resources Improve quality and predictability through standard processes and leading practices Manage program schedules and costs & Identify and mitigate risks and issues Transforming Innovation © 2009 ALYNDe, LLC 26 13
  14. 14. ALYNDe LLC Solution Management Approach and Common Challenges Solution Management Approach ALYNDe LLC4 fundamental principles: 1. Structure change in manageable steps  Each implementation phase should deliver measurable benefits and build toward your overall objectives 2. Implement each step-change quickly  Faster user adoption, reduced risk and quicker business benefits 3. Transfer knowledge with collaborative workshops  Each phase is delivered through workshops with clearly defined objectives, scope and deliverables to ensure effective knowledge transfer to your user teams 4. Address all aspects of business change  Successful change programs address organizational, cultural, and technical aspects. Effective workshops ensure that each area is aligned to specific business objectives of the change programTransforming Innovation © 2009 ALYNDe, LLC 35 14
  15. 15. Common Challenges for IT Organizations ALYNDe LLC  Running IT as a business demonstrates that IT can provide value-add in customer facing, internal facing and shareholder facing functions reliably and at competitive prices (compared to external providers)  Effective portfolio management helps to maximize the financial return on new Innovation investments and actively manages the “tail” of Innovation—the replacement/retirement of legacy products and services that have reached the end of their useful lives  Alignment of business and IT so that IT delivers the right services to the business at the highest quality and most competitive cost to support “differentiation through innovation”  Providing complete, accurate, meaningful and consistent reporting to customer, internal (corporate, business units, project teams), and shareholder constituentsTransforming Innovation © 2009 ALYNDe, LLC 36 Common Challenges for IT Organizations ALYNDe LLC  Shortening cycle times and reducing costs of key innovation processes through automation, self-service and elimination of manual, paper-based business transactions – creating a lean operational infrastructure that strives to eliminate non value-added work.  Diffusion and adoption of common information systems which increase common business processes across the company, reduce information latency, increase information flow and allow for an “apples-to-apples” comparison of disparate businesses in a complete, accurate and timely manner without manual intervention or “one-off” reconciliation processes and reports  Managing regulatory adherence and compliance transparently so that performance audits are “non-events”  Providing “one version of the truth“ by supporting key business performance drivers, business intelligence maturity, information architecture and stewardship of information standardsTransforming Innovation © 2009 ALYNDe, LLC 37 15
  16. 16. Thank You! ALYNDe LLCThis presentation was prepared by: ALYNDe LLC Glenn A. Bunker Partner 1978 Stafford Place Tel: 770.565.4366 Marietta, GA 30062 Fax: 770.565.4366 Mobile: 770.377.7061 E-mail: glenn.bunker@alynde.comTransforming Innovation © 2009 ALYNDe, LLC 39 16

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