Transcript Slide 1

SAMI Consulting,
St Andrews Management Institute
Robust decisions in uncertain times
Scenario Planning
And
IT Decision Making
Dr Chris Yapp
[email protected]
IT Decisions Conference
June 2011
7/7/2015
www.samiconsulting.co.uk
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SAMI
Robust decisions in uncertain times
• Our offer
– To enhance the capability to anticipate
– To transform emergent thinking into strategy and
implementation
– Consulting, executive education and research to deliver
“robust decisions in uncertain times”
• “You can never plan the future by the past”
– Edmund Burke, 1729-1797
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Who we are
Robust decisions in uncertain times
• Formed in 1989
– Until 1999 based at St Andrews University
– Now virtual, owned by University & Fellows
– Celebrated our 20th anniversary at the Royal Society
• People:
– 8 Fellows,
– Director level experience in major organisations, public and private sectors,
– Consult, teach & write on business, policy, strategy and futures, leadership;
– 7 Principals,
– Senior experience in major organisations, public and private sectors,
– Experts in aspects of futures, strategic planning and organisational
development
– Also 46 Associates with specialist expertise eg
– Sectors: oil & gas, ICT, FS, construction, government, health, NGOs
– Functional specialists: innovation, creative spaces, audio-visual
communication, occupational psychology, reconfiguration -----
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Futures Thinking
Robust decisions in uncertain times
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Contingency planning
Scenarios
Systems thinking
Complexity theory
Ethnographic Futures
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Imagine 2011 in 1981
Robust decisions in uncertain times
• Technology
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WWW
Mobile Phones
iPOD/PAD/Phone
DAB
DTT,HDTV,3DTV
Wii,Xbox360,PS3
BUT AI?, VideoConf?,
Concorde 2,Bullet
trains, FTTH,Flying
cars…
• What about
– Chelsea FC owned by
a Russian
– BRICs
– Global Terrorism
– Climate Change
– Bollywood
– HIV/AIDS
My Experience over 30 years
Robust decisions in uncertain times
• 20% will happen as consensus
• 15% will happen but slower than
consensus
• 5% will happen faster than consensus
• 15% will be superceded before it happens
• 10% stalls/disappoints
• 20% just doesn’t happen
• 15% is off Radar
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Three Horizons
Robust decisions in uncertain times
Repeating Problems
Robust decisions in uncertain times
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Standards Wars
WIIFM
Infrastructure lags
Long-term capacity developments
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What type of future?
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Desired ( my plan)
Desirable ( Plan B)
Plausible ( time to rethink?)
Consensus ( my contrarian plan)
Unpleasant ( don’t want to go there)
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Beware…
Robust decisions in uncertain times
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Modern Myths
This time it’s different…
Putting New in front of everything..
Everything has a history
Revolution or cohort effects
Roadblocks (IPv6?)
Unpicking Assumptions
Robust decisions in uncertain times
“The problem is that
companies just don’t get
Web 2.0.
The benefits are out there
and the tools are cheap.
Planning is expensive
and wasteful. Get on with
realising the benefits”
A Social Media guru
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• While at the same time...
• Predicted 100%
compound growth for 5
years
• All existing services
would still be there and
free
• Values of today’s
teenagers would still be
their values in 10 years
• Governments wouldn’t
regulate...
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1066 and All That
Right
Robust decisions in uncertain times
Roundheads
Cavaliers
Wrong
Repulsive
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Romantic
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The Futurists Dilemma
Robust decisions in uncertain times
High
Credibility
Focussed
Theme
?
Broad
Vision
Low
Credibility
Wrong
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Right
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Dimensions of the Current
Challenge
Robust decisions in uncertain times
Economic
Change
structural
Market Step Change
Niche Portfolio
Reactive
Proactive
Strategic
Response
Sitting Tight
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Mopping up
cyclical
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Dynamics of the Current Challenge
Robust decisions in uncertain times
Economic
Change
structural
Market Step Change
Niche Portfolio
Reactive
Proactive
Strategic
Response
Sitting Tight
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Mopping up
cyclical
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Problem Types
Robust decisions in uncertain times
YES
Scaling practice
Do we know where
We are going?
Best practice
TASK:
Operational
Management
TASK:
Process
Development
NO
YES
TASK:
Direction
Setting
TASK:
Concept
Creation
Next practice
Emerging practice
NO
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Do we know
How to get
There?
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After Eddie Obeng
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Whose Problem?
High
Robust decisions in uncertain times
Political
System
Complexity
Think
Tank
Consultant
Wisdom of
The Crowds
Academic
/Expert
Low
Low
Uncertainty
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High
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What value?
High
Robust decisions in uncertain times
Political
System
Complexity
Think
Tank
Track record
Ideas
Consultant
Knowledge
Wisdom of
The Crowds
Academic
/Expert
Low
Low
Uncertainty
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High
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During Step Change?
High
Robust decisions in uncertain times
Political
System
Complexity
Think
Tank
Consultant
Consultancy
squeezed as
limited track record
Wisdom of
The Crowds
Academic
/Expert
Low
Low
Uncertainty
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High
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Timing
Robust decisions in uncertain times
“In the Future blind People will
Be able to drive cars”
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Results
Robust decisions in uncertain times
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Probability 0.9 with some 0.2
Today with Resources: 1-3 years
In practice: 3-10 years
In reality: 10-100 years
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Why do we get it wrong?
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Today!!!
Prisoners of Language
Timing
Unintended consequences
Sources of Innovation
Ask the wrong question/people?
Culture
Events
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Not understanding today…
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Societies taboos
Bubbles
Poor data for emerging trends
Examples
– Police
– Paedophiles
– Education
– International/global interconnectivity
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Timing
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Inevitability-Predictability
Risk and uncertainty
Unforseen barriers
Social factors
Long-term skill developments
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Sources of Innovation
Robust decisions in uncertain times
Manufacturer Active Process
User Active process
Source: Eric Von Hippel, MIT
Innovation
Robust decisions in uncertain times
• Open Innovation has a 200 year history
• Innovation with lead users preceded the
internet
• Professional solve their own problems
• Big shift in computing is that consumers
not industry in the driving seat.
A Rose by any other name..
Robust decisions in uncertain times
• Bouba
• Kiki
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Learning from the edge:
Synesthesia
Robust decisions in uncertain times
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Prisoners of Language
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1,000,000 cars
People will always want shoes
Classroom of the Future
Library with no books
5 Computers
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Who do you ask?
Robust decisions in uncertain times
“ What do you teach a child at 5 years old
So that they will be IT Literate at 20?
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Core to the problem..
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The different disciplines involved
The hardware doesn’t exist
The software hasn’t been written
Some of the key companies haven’t yet been
formed
So who do you ask?
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Organisational culture
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Specialists and generalists
Personal credibility
Tolerance of uncertainty
Story telling
Leadership
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Events
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9/11
BSE
Coalition Government
Middle East: Tunisia, Egypt......
• BLACK SWANS
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Uncertainties Today
Robust decisions in uncertain times
• Web 2.0 bubble?
• IPv4 to IPv6 transition
• Sustainability of
Free/Freemium..
• Impact of Regulation, e.g.
EU
• Privacy, security
• Business models?
• Interdependencies...
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• IPR regimes
• Everything has a
history...?
• Demographics....
• Energy Security
• Public/Private Clouds
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Overoptimism or hype?
Robust decisions in uncertain times
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Hofstadter’s Law
Robust decisions in uncertain times
It always takes longer
than you expect, even
when you take into
account Hofstadter's
Law
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Robust decisions in uncertain times
THANK YOU!
Any Questions?
My BCS blog: http://www.bcs.org/content/conBlog/20
Twitter: @chris_yapp
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