Transcript CIO Stories: 1 - Business Ecology Initiative

The Business Ecology Initiative:
Delivering Optimization for Innovation
Richard Mark Soley, Ph.D. – Chairman and CEO, OMG
Session TSE-1740A
May 5, 2010, Venetian Casanova 504
CIO Stories: 1
• Secretary of US Agency to CIO: Fix my BlackBerry.
• What is the proper role of the CIO?
• Are we just fixing computers?
CIO Stories: 2
• CEO of major computer hardware firm to CIO: CIO means
« career is over », didn’t you know?
• Is the CIO part of the team or just overhead?
CIO Stories: 3
• CIO of a large consulting firm, complaining about CIO-focused
events: « why is every discussion about business
alignment? »
• What about procurement, etc.?
• Do other departments have trouble aligning?
Some Observations
• Colgate Palmolive doesn’t have an electric department (any
more)
• Google doesn’t have an IT department (in the usual sense)
• Are you just changing lightbulbs?
Nobody knows the whole company like the CIO
(André Mendes, Special Olympics)
• Most divisions only know their own sales,
development, operations
• Because IT automates processes throughout the
enterprise, we know the enterprise
• Most importantly, we implement business
processes that support business capabilities
Optimizing the Enterprise:
• Precise descriptions of business processes are
a prerequisite to understanding those
processes.
• We understand business process optimization:
streamlining processes, leaning processes,
greening processes
Future Information Technology
• The successful 21st century organization will no longer have
an « IT » department
• IT’s success means moving from « partnership » and
« alignment » to an integral part of the business organization
• Our role: recognizing, precisely defining, capturing, storing,
reusing and optimizing business processes
• Removing waste: take out the trash!
Business Ecology
• Business Ecology Initiative recognizes that
– IT as a support organization is a dead-end and short-term solution
– The IT organization must evolve into part of (not just a partner of) the
business, with a focus on minimizing waste across all processes that
implement business capabilities
– No-one knows more about the operations of the whole business than
the IT organization, so…
Business Ecology
• …the IT organization of the future will be the key focus of
business process
–
–
–
–
Definition
Governance
Reuse
Optimization
Business Ecology
• Why « business ecology » ?
– Ecology is about minimizing waste streams to « green » the
planet (water, electricity, paper, etc.)
– That’s not the only waste in the business (process overhead,
lack of automation, duplicated process execution)
BE Initiative Mission
• The Business Ecology Initiative has the mission to
– Move the industry to successfully developing & using Business Ecology
precepts to deliver Actionable Architectures for optimizing the enterprise
– Help organizations adopt Business Ecology and develop and implement
Actionable Architectures
– Gain experience by sharing experiences with like-minded organizations
making the same transition
• Great Baltimore Fire of 1904
• Response from Philadelphia, Washington, New York,
Virginia, Atlantic City… hundreds of firefighters
• Burned for two days, 140 acres
• Why?
One Standard Isn’t Necessary
…but the cost of adaptation must be low.
• Standards enable process improvement
– Replicatable models
• ITIL, Lean, Six Sigma
• Open vertical-market standards
• Company standards
– Consistent, portable processes
– Knowledge management across the enterprise
allows us to minimize waste
How Do We Transition?
You’re not the only one
Action Plan
• Speak the language of the business, and focus on
business capabilities
• Share experiences, both good and bad, with your peers
in your vertical and others
• Leverage and participate in the definition of standards for
your company, your market, your vertical, and across the
industry
• Be the process improvement expert in the business
• Look for opportunities to optimize, not just automate
The Alternative
• How long do you want to keep changing lightbulbs?
•
•
•
•
OMG: http://www.omg.org/
Business Ecology: http://www.business-ecology.org/
BPM/SOA Community: http://www.bpmsoa-consortium.org/
Green CIO Community: http://www.gcio.org/
• Richard Soley: [email protected]
The Business Ecology Initiative:
Delivering Optimization for Innovation
Melvin Greer – Lockheed Martin Senior Fellow
Session TSE-1740A
May 5, 2010, Venetian Casanova 504
Disruption driving need for Innovation
Business and
Technology Change is
occurring faster
Business
Impact
Business and
Technology Change is
having a bigger Impact
Time
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Accelerate to Win, Grow, Compete
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Today, IT is Integral to Business
IT must drive efficiency and
revenue, and provide
measurable, clear return on
investment.
Business must have easy,
seamless access to the
services needed to be
successful
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Financial Tightrope
Lower cost
or
Invest in Innovation
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Impact to Innovation Initiatives
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Institutionalize new approaches
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Access to clear, easily accessible technology
BPM
Sustainability
Open Standards
SOA
Cloud
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Innovate any*
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Two Way Multi-Channel Solution Development
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Perpetual Development and Deployment
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End User Driven
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Risk
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Innovation via Business Ecology
IT as simply a support organization is
becoming non-competitive and
obsolete
IT must evolve to be an integrated
partner with business.
Focused on minimizing waste and
optimizing capability across
business processes
IT needs to provide business focus on
sustainability, business process and
optimization
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Strategic Recommendations
Business goals, not IT goals
Organizational Change Management
Seek help
Infuse new methodologies
Deliver often, mature over time
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Melvin Greer
Lockheed Martin, Advanced Technology Office
SOA / Cloud Computing Chief Architect
Director IS&GS SOA Competency Center
Certified Enterprise Architect
E-Mail: [email protected]
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Copyright and Trademarks
© Lockheed Martin 2010.
© Object Management Group 2010.
© IBM Corporation 2010.
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