challenges facing business leaders in the new millennium zia qureshi, chief executive & chairman...
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Challenges Facing Business Leaders
in the New Millennium
Challenges Facing Business Leaders
in the New MillenniumZia Qureshi, Chief Executive
& Chairman Business Catalyst
International
Zia Qureshi, Chief Executive & Chairman
Business Catalyst International
Business Practices for Business Practices for IT Strategy IT Strategy
and Management and Management Frameworks to Frameworks to
MaximiseMaximise
Business Practices for Business Practices for IT Strategy IT Strategy
and Management and Management Frameworks to Frameworks to
MaximiseMaximise
This presentation is based on unique insights gained through our extensive practical work with Blue Chip clients, research and innovative ideas. IT focuses on four key topics.
This presentation is based on unique insights gained through our extensive practical work with Blue Chip clients, research and innovative ideas. IT focuses on four key topics.
IntroductionIntroduction
1. Business IT Strategy and Management Framework for sustainable business performance
2. IT Benefit realisation - Are we doing enough?
3. Impact of Technology on organisational success - the hidden risks
4. Challenges facing Organisational Leaders/ Chief Executive Officers
We see many different approaches to IT strategy and management framework across our client base
They all claim to achieve business and IT alignment, management involvement and achievement of the usual benefits
Achievement of true business alignment, optimisation of IT benefits and avoiding major disasters are still rare events.
We see many different approaches to IT strategy and management framework across our client base
They all claim to achieve business and IT alignment, management involvement and achievement of the usual benefits
Achievement of true business alignment, optimisation of IT benefits and avoiding major disasters are still rare events.
IntroductionIntroduction
IntroductionIntroduction
Three main approaches to IT strategy and management frameworks:Three main approaches to IT strategy and management frameworks:
1. IT leads and drives the strategy, structure and management framework
2. Business takes over responsibility for driving its IT strategy
3. Integrated business and IT planning, strategy, and management framework
IntroductionIntroduction
Buzz words and jargon, make it difficult for CEO’s and Directors to identify which approach their organisation has taken.
It is not so difficult for us (Business Catalyst) to determine which category a
particular organisation is in.
Buzz words and jargon, make it difficult for CEO’s and Directors to identify which approach their organisation has taken.
It is not so difficult for us (Business Catalyst) to determine which category a
particular organisation is in.
1. IT Leads1. IT Leads
But the business doesn’t follow
IT people cannot be expected to understand business operations
IT people love to develop technically advanced systems Commercial reality
High IT costs
But the business doesn’t follow
IT people cannot be expected to understand business operations
IT people love to develop technically advanced systems Commercial reality
High IT costs
1. IT Leads (cont)1. IT Leads (cont)
“Us and them” approach confusion in relation to accountability
Business management have an easy way out … blame the IT department
End result: IT strategy and service delivery not aligned
with business
Business management do not try hard enough to realise the benefits of IT
“Us and them” approach confusion in relation to accountability
Business management have an easy way out … blame the IT department
End result: IT strategy and service delivery not aligned
with business
Business management do not try hard enough to realise the benefits of IT
2. Business takes over IT (cont)
2. Business takes over IT (cont)
Knowledge gap in relation to IT can lead to two main problems: unrealistic IT delivery expectations
fail to comprehend the emerging IT trends/options - strategy based on old technology paradigm
IT personnel lose interest - retention becomes a problem
Knowledge gap in relation to IT can lead to two main problems: unrealistic IT delivery expectations
fail to comprehend the emerging IT trends/options - strategy based on old technology paradigm
IT personnel lose interest - retention becomes a problem
Business management tends to rely too heavily on external advisors who may have vested interests in pushing a particular solution
(eg. You need $120m SAP implementation to sort out all your problems and to get competitive advantage)
Usually leads to strategic misalignment, service delivery problems and project failures
Business management tends to rely too heavily on external advisors who may have vested interests in pushing a particular solution
(eg. You need $120m SAP implementation to sort out all your problems and to get competitive advantage)
Usually leads to strategic misalignment, service delivery problems and project failures
2. Business takes over IT (cont)
2. Business takes over IT (cont)
3. Integrated Business & IT planning, strategy & management framework
3. Integrated Business & IT planning, strategy & management framework
Organisations that are maximising the benefits of IT use this approach
This is the only approach that will work in the new millennium
Organisations that are maximising the benefits of IT use this approach
This is the only approach that will work in the new millennium
Commonwealth Bank provides an excellent case study. CBA has been transforming its approach:
from: “IT Leads and Drives”
to: “Integrated Business and IT”
Commonwealth Bank provides an excellent case study. CBA has been transforming its approach:
from: “IT Leads and Drives”
to: “Integrated Business and IT”
3. Integrated Business & IT planning, strategy & management framework (cont)
3. Integrated Business & IT planning, strategy & management framework (cont)
Integrated Business & ITIntegrated Business & IT
Business and IT alignment is achieved
Good potential to achieve optimised e-business model
Accountability rests with both business management and IT management There should be no option to blame each
other - failure must impact the performance evaluation of both parties in the same manner
Business and IT alignment is achieved
Good potential to achieve optimised e-business model
Accountability rests with both business management and IT management There should be no option to blame each
other - failure must impact the performance evaluation of both parties in the same manner
Integrated Business & ITIntegrated Business & IT
Learning organisation model can be achieved Learning organisation model can be achieved
Business Principles for IT Strategy & Management Framework
Business Principles for IT Strategy & Management Framework
IT Strategy reacts to Business Planning
Three to Five Year Planning Horizon
Preference for internal competence and knowledge predominantly in-house
Hierarchical
Discrete organisational functions
Knowledge-orientated
TraditionalTraditional New Approach New Approach Business Leadership drives IT
Strategy jointly with IT Managment
Transitional Strategy - shorter term horizon - flexibility
Significant outsourcing and external service providers
Networked
Integrated business & IT Teams
Learning-orientated
moving from traditional approach to e-business environment
TraditionalTraditional New Approach New Approach 1. Business Leadership drives
IT Strategy
2. Transitional Strategy - shorter term horizon - flexibility
3. Significant outsourcing and external service providers
4. Networked
5. Integrated Business and IS Teams
6. Learning-orientated
1. IT Strategy reacts to Business Planning
2. Three to Five Year Planning Horizon
3. Preference for internal competence and knowledge predominantly in-house
4. Hierarchical
5. Discrete organisationalfunctions
6. Knowledge-orientated
moving from traditional approach to e-business environment
moving from traditional approach to e-business environment
Business Principles for IT Strategy & Management Framework
Business Principles for IT Strategy & Management Framework
Business IT ModelBusiness IT ModelOrganisational
frameworks need a significant change to implement the new Business IT
model
Organisational frameworks need a significant change to implement the new Business IT
model
Business Leadership
& Governanc
e for IT
Competency
Business
Architecture
Competency
Sourcing
Compete
ncy
Inte
gratio
n &
Progra
m M
gmt
Compete
ncy
Comm
ercial
Relationship
Managem
ent
Key Technology Programs
Business DevelopedIT Imperatives
Strategic Business Goals
IT Investment Portfolio Management
Business Systems Framework (Map)
Business Direction & Transformation Goals (Integrated Business/ Technology Planning)
(EXECS)
Information Strategic
Transactional
Infrastructure
REQUIRES
FUNDS
DETERMINES GUIDES
IT Benefit RealisationIT Benefit Realisation
Our experience shows that not enough effort is made to realise the benefits of IT
Our experience shows that not enough effort is made to realise the benefits of IT
Strategy Aligned
Strategy Aligned
Successful development
& implementation
Successful development
& implementation
Human capability
development to effectively use
available technology
Human capability
development to effectively use
available technology
ManagementOwnership,
buy in &accountability
ManagementOwnership,
buy in &accountability
Each of the following Key Areas is vital to benefit realisation & achieving valueEach of the following Key Areas is vital to benefit realisation & achieving value
ITBenefits
Realised/ Value
delivery
ITBenefits
Realised/ Value
delivery
IT Benefit RealisationIT Benefit Realisation
The problem is often compounded by:
Flawed business cases
Capital expenditure justification is not rigorous enough
Post implementation reviews with a focus on benefit realisation are not conducted seriously/objectively
Realisation of benefits not monitored for management performance assessment
Learning does not take place
The problem is often compounded by:
Flawed business cases
Capital expenditure justification is not rigorous enough
Post implementation reviews with a focus on benefit realisation are not conducted seriously/objectively
Realisation of benefits not monitored for management performance assessment
Learning does not take place
Organisational Success - the hidden risksOrganisational Success - the hidden risks Impact of Technology on the
Organisation’s Talent Pool When Technology changes in major ways -
organisations can’t afford not to change:
Negative impact on organisational talent pool - both existing and potential
Can’t attract the best and brightest people - recruitment difficulties
Existing people get concerned about their personal career development and marketability - move on in search of more “switched on/ progressive” organisations.
Impact of Technology on the Organisation’s Talent Pool When Technology changes in major ways -
organisations can’t afford not to change:
Negative impact on organisational talent pool - both existing and potential
Can’t attract the best and brightest people - recruitment difficulties
Existing people get concerned about their personal career development and marketability - move on in search of more “switched on/ progressive” organisations.
IT outsourcing - a great opportunity that can become life threatening for organisations: IT outsourcing can’t be managed through
traditional methods - it’s a lot more than a contract management exercise.
Need to develop and implement new framework, processes, and skill sets for effectively managing service provider relationships.
IT outsourcing - a great opportunity that can become life threatening for organisations: IT outsourcing can’t be managed through
traditional methods - it’s a lot more than a contract management exercise.
Need to develop and implement new framework, processes, and skill sets for effectively managing service provider relationships.
Organisational Success - the hidden risksOrganisational Success - the hidden risks
Organisational Success - the hidden risks (cont)
Organisational Success - the hidden risks (cont)
Medium/ long term contracts become irrelevant within months of implementation.
Outsourced service provider and management need to work as one team.
Sharing risks and rewards The outsourced deal must be based on
sound commercial footing rather than unrealistic promises/ expectations
Medium/ long term contracts become irrelevant within months of implementation.
Outsourced service provider and management need to work as one team.
Sharing risks and rewards The outsourced deal must be based on
sound commercial footing rather than unrealistic promises/ expectations
Organisational Success - the hidden risks (cont)
Organisational Success - the hidden risks (cont)
The costs of IT disasters can be enormous both in $ terms and the organisational set back.
Ensure adequate risk management practices, and effective auditing approach is in place.
The costs of IT disasters can be enormous both in $ terms and the organisational set back.
Ensure adequate risk management practices, and effective auditing approach is in place.
Challenges Facing the Business Leaders - You!Challenges Facing the Business Leaders - You! Learn learn learn… IT in a
conceptual sense - it’s not too hard Invest personal development time
Don’t get caught up in technical stuff
Demonstrate understanding of new technology and commitment through actions
Ensure appropriate level of IT knowledge becomes a core competency for all managers.
Learn learn learn… IT in a conceptual sense - it’s not too hard Invest personal development time
Don’t get caught up in technical stuff
Demonstrate understanding of new technology and commitment through actions
Ensure appropriate level of IT knowledge becomes a core competency for all managers.
If not already done so, commence a project to review and organise IT operations based on the key principles discussed today Change management must be well handled -
will be critical in the rapidly changing face of technology
Develop a culture in the organisation that focuses on benefit realisation through the effective utilisation of what we have at a particular point in time… as well as new developments - A Huge Challenge
If not already done so, commence a project to review and organise IT operations based on the key principles discussed today Change management must be well handled -
will be critical in the rapidly changing face of technology
Develop a culture in the organisation that focuses on benefit realisation through the effective utilisation of what we have at a particular point in time… as well as new developments - A Huge Challenge
Implement the concept of common business management and IT teams… as a mandatory requirement.
Implement the concept of common business management and IT teams… as a mandatory requirement.