CTI & Technoloair

Alongsimilar lines

The convergence of communications andcomputer technologies is perceived to bechanging the way global bUSinCSS is

conducted. But that doesn't necessarily makeit a miracle cure for any ailing company.

Industry futurists tout a techno¬logical revolution that willsupposedly pervade everyaspect of commerce from the

structure of enterprises to thenature of customer relations to the

rapid penetration of global markets.But what is really behind the 'hype',and can companies mobilise to takeadvantage of this convergence todominate their tradidonal marketsor create new ones? The answers

may surprise you.One important factor to consider

is the nature of convergence and itsimpact on tradidonal business formsand structures. Crucially, there areseveral ways that companies mustchange if they are to capitalise onconvergence and several potentialpitfalls they must avoid along theway. The three key areas are:� Technology: the minimumrequirements for hardware, soft¬ware, and communicadons.� Business Process: the way thebusiness should be directed and

changed in the new environment.� Organisation: changes to behav¬iour and culture imder new sets ofmanagement rules.Although the dictionary provides a

number of definitions for 'conver-

By Hartley Briteand Erich Almasy

gence', the one Henry Boettinger,former senior vice president of strat¬egy for AT&T, likes best is the bio¬logical one, namely the tendency ofdifferent organisms to develop alongsimilar Hues within the same envi¬

ronment. In this organic definition,convergence is more mimicry thanpure creation and it develops on anevolutionary timetable. Both ofthese characteristics are importantto understanding convergence.

The current discussion about tech¬

nology convergence centres largelyon the merging of computers andcommunications. Surprisingly, thisconvergence is not especially new.Unfortunately, the relative sophisti¬cation of computer telephony andother convergent technologies is notmuch greater than it was during themid-seventies. Convergence is stillfoctised around a hardware or soft¬

ware 'product' as firms search forthe next blockbuster black box or

application that might just drivelarge-volume unit sales. The keyproblem according to Anthony RMuller, senior vice president ofCentigram, a manufacturer of voice

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processing and computer-integratedtelephony products, is that, 'Nobodyyet knows what problems we are try¬ing to solve.'According to Dr Frank J Gratzer,

division manager of services andapplications at Bellcore and one ofthe people responsible forIntegrated Services Digital Network(ISDN) deployment in theUnited States, fifteen years of com¬puter/communications develop¬ment has created 'an individual

computer location with a hugeamount of information, and a pri¬mal need for these computers totalk with one another.' The net

result is a focus by both technologysuppliers and their customers onproducts and services that convergeprimarily at the individual desktoplevel. This focus in turn supportsbusiness process change only forthose independent functions,departments and/or sub-processeswhere the localised information is

both useful and appropriate. Thecorporate advantage from all of thiseffort is what most current 'reengi-neering' yields - a limited and rela¬tively simple streamlining of existingprocesses, practices, and informa¬tion flows.

CTI & Technology

TechnologyFocus

OrganisationLevel

BusinessProcess

CorporateAdvantageStreamliningQuantum CostReduction

Redefinition ofBusiness Purpose

Product & Services Individual Desktop IndependentSystems Work Group Coordinated

Solutions Enterprise Integrated

Ultimately, what is needed fromconvergence is integration of the vari¬ous technological solutions on anenterprise-wide basis so that managerscan redefine the firm's business ptir-pose and move it to an entirely newcompetitive plane. The example ofProgressive Insurance, the highly prof¬itable and innovative non-standard

property and casualty insurance com¬pany in the United States, is a case inpoint. An oft-quoted and admiredexample of how reengineering is sup¬posed to work. Progressive has taken adeep understanding of customerneeds and wants, built it into databases

and expert systems, and found ways totarget customer market segmentsexceptionally well. They also launcheda dramatically improved customer ser¬vice system for adjusting accidentclaims in record time.

For Progressive, the business pur¬pose changed fromselling a commodity(risk protection) topromoting a service ofcustomer convenience

and good will.However, organisationchange in support oftechnology conver¬gence takes significanttime and effort. Brad

Miller, Progressive'smanager for claimsbranches in the state

of Oregon, says, 'ittook a year of intensivetraining to refocus clerical, process¬ing, field and legal personnel so thatthe field could finally 'meet' the cus¬tomer.' Thus, while the convergingtechnologies create a powerfulenabling environment, it is necessaryfor organisations to create highly adap¬tive structures that will support thenew business processes. This impliesprofound changes in the ways youthink about and conduct business.

So, where should you start?Assume you accept the principle that

Almasy: bias

Brite: learning

'pulling' from the vision of an enter¬prise-wide, integrated solution is abetter way through the evolutionarydevelopment than being 'pushed' byevents. All evidence points to theneed for managingchange - a coord- inatedeffort that supports tech¬nology, organisation andbusiness process advance¬ments. Such a coordinat¬

ed effort will be more

successful if you:� Tie it to the economystructure of the business

- many change efforts faildue to a limited under¬

standing of the economicimpact of the change.Establishing a believableeconomic baseline from

which to start the change effort willensure a goal orientation and a way

to measure success.

� Link it to the cus¬

tomer - as you think andplan for the future,always keep the customerin mind. Typically, suc¬cessful change effortsinclude customer surveysand other proactive con¬tacts that ensure the

change will meet and sur¬pass your customers'expectations. Without acustomer context within

by example which to make change,there is litde chance of it

delivering on its promise.� Support it with employees -changes in structure and technolog)'alter jobs and job skill requirements. Itis critical to design meaningful, moti¬vating work for the employees who willbe making the new processes succeedand are expected to modify theirbehaviour in support of the change.� Make full use of technology -design your technology with all of theabove in mind. This will ensure that

the technological changes you imple¬

ment will be based on solid economic

grounds, will support the customerand will engage your employees.

Secondly, learn from those aroundyou. Progressive's example is notonly appropriate for insurance, butapplicable to customer service inmany industries. There is nothingpejorative about plagiarism in thepursuit of excellence. In fact, intoday's business environment, thistype of copying is politely referred toas 'benchmarking'.Finally, try to tackle the effort in

manageable slices. This will aid thetransition from desk¬

top to work group toenterprise andensure that it is exe¬

cuted quickly withminimum risk. These

smaller increments

allow the entire

organisation to focuson the true nature of

the change requiredand embrace success

at intervals, rather

than waiting for thefor action effort's completion.

As succinctly stated byMr Boettinger, 'change is best accom¬plished by a multitude of small experi¬ments at the operational level.' �

Symmetrix, Inc., company ofthe authors of this article with

European offices in London,Hamburg and Paris is a diversi¬fied nnanagement consulting firmwhich provides business regen¬eration, business processreengineering and informationtechnology services to globalcorporations. Symmetrix collab¬orates with clients to achieve

dramatic results through aninterdisciplinary approach toproblem solving and changemanagement, With a relentlessbias for action, Symmetrix helpsclients implement the high-performance human networi<sneeded to compete and win inthe global mari<etplace. Forfurther infomnation contact

Erich Almasy or Hanley Brite on001 617 862 3200.

Business Strategy International