6/5/10 sim advanced practice council
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04/08/23 SIM Advanced Practice Council 1
The CIO’s Role in Enabling Organizational AgilityHighlights of SIM’s Advanced Practices
Council Research Findings
Madeline Weiss, APC Program DirectorNovember 13, 2006
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Capturing Merger Benefits at CVS
"Instead of taking until mid-year 2005 to get all these stores converted and to start realizing benefits from our merchandising schemes and plans, we started doing it in mid-November. That's huge; that's what IS enables. It enables the business to step in. The next phase is introducing our merchandising mix, layout and strategy. It can be done because the infrastructure is complete."
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Disruptive Innovation at Cemex
Customer
Customers have the flexibility to change orders
Cement trucks can deliver orders in a 20 minute window
Dynamic Synchronization of operations controls plant production, tracks vehicle movements, and automatically optimizes order fulfillment
Global Digital enables tracking of orders and payments
Transition from product selling (cement) to solution selling (ready-to-pour-concrete)
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Researchers• Assessing Enterprise Architecture Outcomes (Jeanne Ross, Center for
Information Systems Research at MIT)
• Building Knowledge Assets from Light Knowledge with Wikis (Ann Majchrzak, University of Southern California, Christian Wagner, City University of Hong Kong)
• Deploying Far-Flung Teams: A Guidebook for Managers (Ann Majchrzak, University of Southern California, Arvind Malhotra, University of North Carolina)
• Driving Value from I/T: Investigating Senior Executives’ Perspectives (William Kettinger, University of South Carolina, Donald Marchand, IMD International)
• Strategic Agility (Anandhi Bharadwaj, Emory University, V. Sambamurthy, Michigan State University)
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Thought Leaders• How Top Performing Firms Govern IT (Peter Weill, Center for
Information Systems Research at MIT)
• Riding the Waves: Emerging Technologies (John Henderson and N. Venkatraman, Boston University)
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Strategic Agility
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What is Agility?
• Anticipate or sense opportunities and threats
• Assemble needed assets and capabilities
• Judge risks and benefits of initiating action
• Initiate action rapidly
• Capture learning from experience and apply it to future actions
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Strategic Agility Behaviors
Strategy Formulation
Action
Anticipate
Sense
LeadRespond
Entrepreneurial
AgilityA
dapt
ive
Agi
lity
Resiliency
Flexibility Opportunism
Disruption
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Portfolio Approach to Agility
• Alignment
- Leverage current business model
- World class execution
• Adaptive agility
- Operational innovation
- Offensive and defensive competitive moves
• Entrepreneurial agility
- Strategic experiments
- Shaping business options
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First, Get the Basics of Alignment Right
• World-class IT execution –a trusted service that functions well; delivering projects on time and within budget
• The right people – good problem solvers, listeners, learners, communicators, empathizers, leaders and managers; grounded in the business
• Excellent working relationships - with business partners across the enterprise
• Enterprise IT architecture and governance - that support the business model
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Enhance Agility By
– Evolving enterprise IT architecture to a new stage
– Increasing use of collaboration tools and practices
– Enhancing culture of experimentation and learning
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Enhance Agility By
– Evolving enterprise IT architecture to a new stage
– Increasing use of collaboration tools and practices
– Enhancing culture of experimentation and learning
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Evolving Architecture
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The organizing logic for a firm
’s core
business processes and IT capabilities
captured in a set of principles, policies and
technical choices to achieve the business
standardization and integration requirements
of the firm’s operating model.
Enterprise Architecture
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Delta’s View of Enterprise Architecture
Source: Adapted from Delta Air Lines documents – used with permission
BusinessReflexes
Employee RelationshipManagement
Delta Nervous System
Electronic Events
Nine core databases
Location Maint.ScheduleFlight
Equip. Employee Aircraft Customer Ticket
Clean/ServiceAircraft
UnloadAircraft
Flight Arrival and
Closeout
MonitorFlight
Flight Departure
and Closeout
Load Aircraft
Prepare for Flight Departure
AllocateResources
BaggageInflightBoardingCrownRoom
TicketCounter
SkycapTravelAgent
ReservationsSkymilesSkylinks
Personalization Digital Relationships Loyalty Programs
Customer ExperienceCustomer Experience
Operational PipelineOperational Pipeline
Reservation
Systems
PDAs
ScannersLaptops
EVENTS
PROFILE
Desktops
Cell Phones
Video
Voice
Pagers Gate Readers Kiosks Hand
Helds
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ING Direct’s View of Enterprise ArchitectureExternal ServicesExternal Services
ReportsLocal/HQ/Tax
ReportsLocal/HQ/Tax
ProspectFulfillment
ProspectFulfillment
StatementFulfillment
StatementFulfillment Payments
PaymentsChecks
Checks
ContactHistory
ContactHistory Product
Info
ProductInfo
CIFCIF CRM
Customer Relationship Services
Common Business ServicesCommon Business Services
ServicesServices
TransactionsTransactions
CustomersCustomers
ProductsProducts
BankingEngine
BankingEngine
CreditScore
MutualFunds Brokerage
Core Banking Services
Channel ServicesChannel Services
Gatewayserver
Gatewayserver
IVR/CTIserver
IVR/CTIserver
Imagingserver
Imagingserver
E-mailserver
E-mailserver
Webserver
Webserver
Source: Robertson, D. “ING Direct: The IT Challenge (B)”, 2003, IMD-3-1345. Used with permission
Services not implementedIn all countries
Customer Contact:Call Center, IVR, E-mail,
Direct mail
Self-Service:Internet, MinTel, ATM,
WAP, (WebTV)
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Architecture Maturity Stages1-
Application Silo
2-
Standardized Technology
3-
Rationalized Data
4-
Modular
Strategic Objective
Local/ functional Optimization
IT efficiency Process optimization
Strategic choices
Platform and Technology
Multiple technologies and platforms
Technology standardization, fewer platforms
Data Transaction data in individual. applications
Data warehouses
Standardized data
Processes Local Local Standardized core processes
Customized or reusable modules
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Evolving Management Practices
Business casesProject methodologyProgram managers Architects on
project teams IT Steering committee*Architecture exception process*Formal compliance process*Infrastructure renewalprocess*Centralized funding of enterprise applications*
Process owners*Enterprise architecture guiding principles*Business leadership of project teams*Senior executive oversight*
Enterprise architecture graphic*Post-implementation assessment*Technology research and adoption process*
Adapted from: Ross, J.W., “Creating a Strategic IT Architecture Competency: Learning in Stages,” MISQ Executive (2:1), March 2003, pp 31-43.
Asterisked items are statistically significantly related to architecture maturity—they are associated with greater value in later stages.
ApplicationSilo
StandardizedTechnology
RationalizedData
Modular
Architecture Maturity
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Architecture Planning and Design•Senior business executive oversight•Enterprise architecture guiding principles•One-page high-level graphic•Enterprise level process owners•Enterprise architecture team
Architecture Planning and Design•Senior business executive oversight•Enterprise architecture guiding principles•One-page high-level graphic•Enterprise level process owners•Enterprise architecture team
Standard Technology Environment•Architects on project teams•Centralized standards team•Formal research and adoption process•Architecture exception process•Compliance process
Standard Technology Environment•Architects on project teams•Centralized standards team•Formal research and adoption process•Architecture exception process•Compliance process
IT Funding•Business cases for IT investment•Centralized funding of enterprise apps•Annual infrastructure renewal•IT steering Committee
IT Funding•Business cases for IT investment•Centralized funding of enterprise apps•Annual infrastructure renewal•IT steering Committee
Project Management•Standardized project methodology•Post-implementation assessment•IT program managers•Business leadership of project teams
Project Management•Standardized project methodology•Post-implementation assessment•IT program managers•Business leadership of project teams
Management practices within each practice set are statistically significantly correlated with each other.
Architecture Management Practices
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ManagementPractices
Benefits ofArchitectureInitiatives
Architecture planning and
design practices
Implementation of standard technology
environment
IT funding practices
Project management
practices
Cut IT costs1 * *Reduce development time2 * *Reduce IT-related risks3 * *Increase business discipline4 * *Enhance strategic effectiveness5 * *
1Unit operating costs and application maintenance costs 4Data and process standardization2Development time and percentage of projects on-time, on-budget 5 Strategic effectiveness—measured as strategic outcomes3Business risk, security breaches, disaster tolerance and (operational excellence, customer intimacy, product innovation, and regulatory compliance strategic agility) weighted by their relative importance to each firm.
ALL management practices are significantly correlated with ALL benefits. Asterisks identify the management practices best predicting the benefit.
Management Practices Support Desired Outcomes
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• Enterprise architecture enables and constrains business strategyEA defines the essence of a firm’s operating model by clarifying integration and standardization requirements. This creates a stable platform for responding to market changes.
• Maturity mattersDifferent stages support different operating models. Greater maturity is related to greater strategic value and profitability.
• It does not pay to skip stagesGenerating value from architecture investments is a learning process. Aggressive investment in IT architecture can be slow to generate a return.
• Learning is captured in management and governance practicesManagement requirements are more complex in later stages.
• There is no substitute for strong senior management leadershipFirms getting strategic business benefits from architecture have senior business leaders who are actively involved in architecture design, management, and implementation.
Key Findings on Enterprise Architecture
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Enhance Agility by
– Evolving enterprise IT architecture to a new stage
– Increasing use of collaboration tools and practices
– Enhancing culture of experimentation and learning
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Far-Flung Teams
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Far-Flung Teams
• Teams spread across the globe, working collaboratively to innovate, with minimal or no face-to-face interaction
• Challenges– Communications– Culture– Time zones– Tasks
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Far-Flung Teams Supporting Agility
• Testing new products in local markets and then formulating global marketing plan for products
• Designing thrust chamber for new rocket engine • Ensuring flawless email infrastructure on first
day of merged company operations• Integrating processes and procedures during
merger• Integrating information infrastructures during
merger
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Deploying Far-Flung Teams Guidebook
• Creating Supportive Business Environment
• Supporting Knowledge Exchange
• Integrating Technology into the Way Work is Done
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Deploying Far-Flung Teams Guidebook
• Creating Supportive Business Environment– Deploy full-time team leaders– Appraise team members on contributions to the FFT– Reward team member contribution to enterprise’s
intellectual capital equal to task accomplishment– Discourage travel– Encourage use of collaborative technologies
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Deploying Far-Flung Teams Guidebook
• Supporting Knowledge Exchange– Pick the right people– Motivate members for intellectual growth– Foster understanding of differences to
leverage them– Establish collaboration norms and procedures – Hold regular audio conferences – Hold periodic face-to-face team tuning
meetings
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Deploying Far-Flung Teams Guidebook
• Integrating Technology into the Way Work is Done– Less than 30% of teams used any form of video
conferencing– Instead, FFTs used a combination of
• Instant messaging• Audio conferencing• Repository for content capture and display
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Wikis An Emerging Collaborative Technology
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Wikis and the Wiki Way
• Wiki– Technology to write and maintain web pages
collaboratively: fast, simple, immediate, where knowledge can be added or corrected by anyone
• Wiki Way– Norms for wiki design and collaborative wiki
content creation: open, organic, observable, convergent
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Wikis Supporting Agility
• Two business groups from separate product lines combined to integrate the product lines
• Competition tracking (with RSS feeds)• Project management on fast-track project• Community of customers and staff• Collaboration with software vendor and another
user• Ethnic marketers collaborating across consumer
goods product lines
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“The teleconference used to be 1 ½ hours, with much time wasted on bringing people up to speed on the week’s events. Now team members update themselves on the wiki, and that part of the teleconference takes 5 to 10 minutes. The rest of the teleconference is used for idea generation, being innovative, talking about problems and looking at solutions, which is what the meeting should be about…”
Diben JobanputraDresdner Kleinwort Wassersteing (wiki user since 1997)
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Novell Internal Wiki
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Windriver Intranet
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IBM’s Customer Facing ETTK Wiki
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“Wikis will become mainstream collaboration tools in at least 50% of companies by 2009.”
Gartner Group, June 2005
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Creating Wiki Sustainability
1. Initiation – Steering People to the Wiki– Champion’s mantra: “It’s on the wiki”– Use viral marketing techniques
2. Promoting Active Participation– Drive content creation: “Please do this on the wiki”– Nudge participants for small contributions– Keep wiki simple (“wabi sabi” – the beauty of
imperfection)– Establish procedures for keeping content up-to-date– Provide good search tools
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Creating Wiki Sustainability
3. Establishing Wiki Culture– Encourage people to change the work of others and
shape the wiki– Reward collaboration
4. Steady State– Champions with business knowledge, wiki
knowledge (technology and the wiki way), organizational influence are crucial
– Difference of opinion on amount of structure to impose
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Checklist for Successful Wiki Initiation
• Does the wiki participation model fit with corporate culture (i.e., less hierarchical/ more collaborative, merit based)?
• Is there a wiki champion who understands wiki technology and the wiki way, and has the organizational knowledge and standing to engage others, and to shape the collective knowledge contributions?
• Does the organization (wiki team) have guidelines or a shared understanding to protect wiki based intellectual property?
• Has a wiki software been chosen that incorporates access rights management and task structuring?
• Does each wiki have someone who appears to be shaping the contributions?• Is the nature of the wiki supported task such that participants with personal, efficiency
driven interests can benefit from wiki participation?• Is the wiki team of sufficient size to ensure both reading and writing?• Do you have plans in place to phase in the wiki, steer participants to the wiki, create
active participation, create wiki culture, and maintain steady state?
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Enhance Agility By
– Evolving enterprise IT architecture to a new stage
– Increasing use of collaboration tools and practices
– Enhancing culture of experimentation and learning
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Enhancing Culture of Experimentation and Learning
“The ability to learn faster than your competitors may be the only sustainable competitive advantage.”
Arie de Geus (Royal
Dutch/Shell Group)
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Enhance Your Culture of Experimentation and Learning
• Invite forecasters and futurists to speak at meetings• Set up strategic experiments and learn from them• Hold before and after action reviews• Encourage IT staff to take business positions and vice
versa• Give significant monetary awards for outstanding ideas
that are implemented; make the awards public• Use wikis to encourage knowledge capture and a culture
of commenting on others’ work
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Enhance Your Culture of Experimentation and Learning
• Which of these elements of culture exist in your organization?– Staff encouraged to post wild, ambitious ideas on the
Intranet and solicit peer feedback.– Eight brainstorming sessions per year where the best
six ideas are presented. If an idea is vetted, the idea generator must attract a team to work on it.
– 70/20/10 rule. – Interior hallways in which staff can scribble random
thoughts on large whiteboards strung together.– Tech talks with well-known people invited to speak.– Executive message: “If you’re not failing enough,
you’re not trying hard enough.”
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Enhance Agility By
– Evolving enterprise IT architecture – Increasing use of collaboration tools and
practices– Enhancing culture of experimentation and
learning – ???
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SIM Advanced Practices Council
Pushing the Frontiers of IT Management
CIO Driven Research Relevant Thought Leadership Member Sharing Networking
Madeline Weiss, Program Director ([email protected])Blake Ives, Research Director ([email protected])
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www.simnet.org
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Recent APC Research Projects• Unleashing the Power of Enterprise Value Nets• Network and Industry Transformation• Assessing IT Architecture Outcomes• How to Drive Value from IT – Senior Executives’ Perspectives• Identity Management for Business Value• Advanced Practices in IT Structure and Governance• Deploying Far-Flung Teams: A Guidebook for Managers• Transformation of the Enterprise through eBusiness• Future Architectures• Strategic Agility• Disruptive Technologies• Inter-organizational IT Change Management• Benefits and Risks of Open Source• Creating Knowledge Assets Using the “Wiki Way”