robert m. reeder, senior vp & cio (retired) june 2009 tela
TRANSCRIPT
Robert M. Reeder, Senior VP & CIO (retired)
June 2009TELA
• Alaska Airlines Quick Facts• Breakthrough Timeline
Alaska’s Quick Facts
• First to sell tickets on the Internet
• First to successfully use airport kiosks
• First check-in from home or office
• First airline to offer wireless check-in
What does Breakthrough mean?
A sudden advance, especially in knowledge or technique
From Innovation to Breakthrough
Adoption
The Breakthrough Timeline
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
Front end Development Commercialization
Adoption
The Breakthrough Timeline
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
Compress
Getting Started
Premise• A business process is a logically related set of activities that
define how specific tasks are performed*• Every business can be seen as a collection of business
processes that support a business model*• The potential impact of a business initiative (Innovation) is
directly proportional to one or more of the following:– The extent of change in business processes or the
business model– The commitment of capital– The resulting organizational change – The scope of change for customers– The scope of change for employees– And, perhaps, the scope of the technology
* Management Information Systems Laudon & Laudon
Return
Risk
Impact
Initiatives that have smallimpact probably havesmall returns
Return
Risk
Impact
Return
Risk
Impact
Helping people perform their tasks more efficiently and effectively
Can be foundational for an objective that has a greater return
Automation
Automation• Updating an existing transaction system• Creating a data warehouse• Improving the automation of a business function• Changing an output from paper to on-line
Return
Risk
Impact
Automation
ChangingProcesses
Processes are created, streamlined, combined, or eliminated.Business model may change.
Changing Processes• Modifying processes to take advantage of a new
system• Alaska - Line Maintenance Operation automation• Alaska - baggage Ramp Action Center • Alaska - Customer Care call center integration• Boeing - 777 on line CAD (CATIA)
• Boeing - 737 assembly line
• FoxMeyer Drug – ERP
Return
Risk
Impact
Rethinking the nature of the business, new business model, or changing the very nature of the organization
Automation
ChangingProcesses
ChangingParadigm
Changing Paradigms• Amazon.com• NetFlics• Boeing 787 composite construction• Boeing 787 supply chain – modular construction• alaskaair.com• Alaska – airport kiosks
• Home Grocer / Web Van
Return
Risk
Impact
Automation
ChangingProcesses
ChangingParadigm
Return
Risk
Impact
Automation
ChangingProcesses
ChangingParadigm
Getting StartedVisionary LeadershipTalent hits a target no one else can hit, genius hits a target no one else can see - Schopenhauer
• The right idea, right time, right plan
• The right people who can get it done
• Clear, consistent, supportive leadership
Have a method for Process Improvement
Purposeful Innovation - Balanced Portfolio
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Compressing the TimelineThe potential impact of a business objective is directly
proportional to one or more of the following:• The extent of change in business processes or the business
model• The commitment of capital• The resulting organizational change• The scope of change for customers• The scope of change for employees• And, perhaps, the scope of technology
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Compressing the Timeline
The sooner you identify and address the needs of the various stakeholders, the shorter the path will be to adoption and Breakthrough
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Percentage of Sales on alaskaair.com
0
5
10
15
20
25
30
35
40
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Adoption
www.alaskaair.com
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
6/95 - 12/95 v1 12/95 - 9/99 9/99 - presentWe’re going to be 1st! Channel conflict Let’s hit 50% by 2005
Organization change 11/99
SummaryBest practices for success• Create a balanced portfolio of projects• Find people with vision and passion for change• Augment them with people who can finish• Move the back-end work forward
– Business Process– Business Model– Organization– People– Capital– Customer
SummaryIT’s role in changing the business• Know the business• Help people see the possibilities• Develop solid executive support• Use iterative development with short cycles• Develop expertise in process improvement• Identify and involve all stakeholders - early• Use project management
• Go the extra mile to fill in the gaps
– make it happen