Transcript Top 10 Issues Facing Every IT Professional

competing
leading
Efficiency
Top 10
Mega-Issues in IT
Robert S. Tipton
Managing Partner
R S Tipton, Incorporated
failing
risking
Differentiation
Effectiveness Coaching: Business; IT; Real-Life
1041 W. Dry Creek Rd.
Littleton, CO 80120
303.797.0180
[email protected]
www.rstipton.com
NOTICE: Proprietary
This material is proprietary to R S Tipton, Incorporated and shall not be used, reproduced, copied, disclosed, transmitted, in
whole or in part, without the express consent of R S Tipton Incorporated.
© 2002 R S Tipton, Incorporated All rights reserved.
Some portions © 2002 SBI and Company
Agenda
• #1
Looking for Leadership in All the Wrong Places
• #2
Vision: Some Neat Looking Charts and Graphs
• #3
The “Easy” IT Money Has Already Been Spent
• #4
Vendors Love Revolutions in Technology
• #5
Coming to Grips (Gripes?) About e-Business Reality
• #6
Collaborative Commerce: Undergarments Exposed
• #7
Wireless: Full of Hot Air?
• #8
Web Services: “The” New, New Thing?
• #9
Get Smart: Leverage Existing IT Assets
• #10
Business-Competent IT Leaders
• #11
The Last Bullet
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P2
Looking for Leadership in All the Wrong Places 1
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P3
Looking for Leadership in All the Wrong Places
Economic / Social / Technology Leadership
• Economic Leadership? Greed is a deadly sin…
– One CEO after another succumbing to “5th amendment” protection
– Massive lack of trust in institutional integrity
• Social Leadership? Pump up, pierce, tattoo, “reality?”
– Jerry Springer? Brittany Spears? MTV? Fear Factor? Ooh.
• Technology Leadership? No gravitational pull
–
–
–
–
–
PCs -- empowered end-users
Client / Server -- must connect to the corporate data
Y2K -- no ignoring that!
Dot.com -- lemmings literally running up each other’s backs to jump off the cliff
Now what?
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P4
Looking for Leadership in All the Wrong Places
“Dancing with the Bear”
• Recognizing that true leadership comes from within, and not from a book, a
class, a CD or a TV show
– End the paralysis
– Stop looking outwardly
– Be accountable and move forward
• HUGE difference for IT decision makers
– No “wave” to ride
– No safety in lemming-like decisions
> 1988 -- no one got fired for recommending IBM
> 1998 -- no one got fired for recommending an e-Business strategy
• Conflagration in the IT industry
– Large, destructive fire -- burns everything to the ground
– True leadership will emerge, and the cycle will repeat itself
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P5
Some Neat Looking Charts and Graphs 2
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P6
IT’s Evolutionary Path
The New
Architecture
Transition Architecture
SCM / APS / CRM
e-Business
Technology and
Culture Gap
Client/Server
Host/Terminal
Business
Gap
EDP
Reduce Costs /
Control Processes
Empowered
Individuals
Interconnected
Organizations
Interdependent
Enterprises
Symbiotic
Economies
Legacy
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P7
Changing Times in Management Science
> As the “Interconnected” Economy takes hold of the fundamental economic paradigm, prior
tenets are giving way to a “New Era of Strategic Management.”
60s/70s
Experience
Curve
Fundamental Philosophy
Environment
70s/80s
Portfolio
Management
80s/90s
90s/00s
Competitive
Strategy
"Real Time"
Strategies
>Share
>"Profitable mix"
>Change rules
>Networking
> Certain growth
> Cyclic
> Changing
conditions
> Globalization
> Japanese
dominance
> Internet speed
> Online value
creation
Attractiveness
Value Impact
Value Creation
Velocity
Cost ($/Unit)
l
Critical Analysis
l
l
l
l l
l l
l l
Volume
Implications
Gain Scale
Change
Strength
Diversify Risk
Resource
Innovation
Network Breadth
Community
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P8
The Easy IT Money Has Already Been Spent 3
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P9
The Easy IT Money Has Already Been Spent
Technology Binge Hangover
• Panacea-based buying is done
– Client / Server-based bill came due
– Y2K: appropriately a non-event
– Dot.bomb collateral damage
• ROI-based decisions are back in fashion…
– What can IT do to support the business?
> Internal excellence
> Operations optimization
– Technology platform optimization and IT investment protection
– Business leaders understand implications of technology spending now…
• Resume building tactics of IT staffers a thing of the past
– Job hopping? Please…
– Holding companies hostage for bigger raises? Hmmm… Not that I see.
> Too many people hired at 1998/1999 wages
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P10
The Easy IT Money Has Already Been Spent
> Rational business based buying patterns will characterize 2002 / 2003
Project Characteristics
• Duration
 3-6 Months,
 No more than 12 months
• Returns
 Hard returns
 12 month paybacks
• Buyers
 Signoff at the highest levels
 Executive suite relationships needed
• Solutions
 Business process optimization led
 Get more value out of what we already have
• Price
 Continued strong downward pressure
• Risk
 Caution regarding less proven technologies
 Incremental -- not replacement
 Caution using new vendors
Source: AMR, CIBC, Gartner
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P11
The Easy IT Money Has Already Been Spent
Back to the Basics -- ROI-based IT Staffing
• Lessons learned…
– Too much reliance on highly paid, “whiney” tech heads is a bad thing
– Business needs to leverage technology, not the reverse
• Better technologies need to fill the gaps
– Software development
> Factory, assembly from component parts
– Systems / network administration
> “Lights-out” technology architectures
> Server-based computing
> Massive shift in access appliances
– Who’s responsible for IT? Hey, the business!
– Outsourcing / ASPs / Contracted resources
• Much more emphasis on solutions rather than technologies
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P12
The Easy IT Money Has Already Been Spent
> It’s not as if “no” money will be spent…
Services
Growth
Comments
ERP
4%
• Upgrades, extending modules, better use most likely
• New installs still happening in mid-market
APS
6
• Performance oriented, linked to process improvement
CRM
4
• Continued growth
eCRM/Portals
4
• More performance oriented less marketing
• Added functionality, content/data management
EAI
8
• Targeted on specific business improvement area
• Enterprise architecture related
Operations Excellence
10
• Performance improvement, cost reduction
Integrated Marketing
-
• Site redesign, marketing campaign specific
Sources: IDC, GIGA, AMR, ML
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P13
Vendors Love Revolutions 4
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P14
Vendors Love Revolutions
Hardware / Software / Services:
• Leverage R&D
• Sell new products
• Grow their businesses
Don’t chase technology just for technology’s sake
• This is ultimately a failed strategy for your business and your career
Preserve what works, augment with new
• Have courage AND vision
• Don’t throw the baby out with the bath water...
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P15
Technology Speed Bumps
• Remember These?
–
–
–
–
–
–
–
–
–
CASE
Artificial intelligence
Mainframe downsizing
Pen computing
Virtual reality
Client / Server
Components and frameworks
Thin client
Dot.com
• What About These?
– Wireless
– Web services
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P16
Coming to Grips (Gripes?) About e-Business Reality 5
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P17
The “Old” New Economy
Impatient, Insistent, Internet
• No time for planning -- 3 months was an “internet” generation...
• “Good Enough” replaced refinement
– Time to market was critical path, not perfection
Become an e-Business or file for e-Bankruptcy…
• e-Business is the beginning of a completely new age of business; as profound
as the move to an industrial economy and lifestyle from the agrarian.
> IT is a disrupter of business process
> Treat your assets as liabilities
> Cannibalize or be eaten
> Don’t be “amazon’ed!”
– Don’t be afraid of the 800 lb. Gorillas, be VERY afraid of upward leaping monkeys...
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P18
The New “Old” New Economy ;-)
Huge switch of context just in 12 months:
• From Gee Whiz to ROI-based decision making
• Speed to market replaced with smart business decisions
• Are we “making money” with e-Business?
• What’s the payback, and how long will it take to be realized?
> History tells us there’s only ONE thing that drives a free market economy: Profit
> We forgot about that for a couple of years during the “dot.com” boom years
> Human nature changes much more slowly than technology
> A digital signature is no substitute for a look in the eye and a handshake…
– Personal touch once again becoming differentiator
> Many industries weren’t, and still aren’t “ready” for transactional transparency and interbusiness process integration
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P19
Another Way to Look at It… CISCO’s Disco…
Wealth rewritten -- during 2000
• CISCO (on 3/27/2000) was the largest market cap company ($555B) -they didn’t ship their first product until 1986...
• NASDAQ about 5200
• Day trading, Internet IPO, 5 Million more Millionaire households in the past
4 years -- a few less today…
Wealth rewritten -- during 2001 / 2002
• CISCO (on 9/9/2002) = $95B market cap -- just a LITTLE smaller…
• NASDAQ at about 1300
• GE -- March 2000, about $500B market cap, 9/9/2002 : $286B
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P20
CISCO’s Disco
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P21
CISCO’s Disco
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P22
CISCO’s Disco
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P23
New Promises, Old Realities
98% of all businesses won’t
succeed beyond 5 years…
• Markets can be created overnight
• Markets fail overnight
• Established brands can be at risk
competing
leading
• New threats surface every day
• New channels are born
• Leading means constant innovation
e-Business just compressed 20
years worth of entrepreneurial
start-ups into 5 years
• Economic “Darwinism” on Crystal
Meth
Efficiency
• New competitors are emerging
failing
risking
Differentiation
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P24
Collaborative Commerce: Undergarments Exposed 6
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P25
Collaborative Commerce: Undergarments Exposed
> Fewer Dollars to Spend Brings Added Pressure for Collaboration
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P26
Collaborative Commerce: Undergarments Exposed
Have you deployed a supply-chain
management application?
If no, do you plan to do so in the
next 12-18 months?
January 2002 Study
Yes
26%
Yes
47%
No
53%
No
74%
March 2001 Study
Yes
15%
Yes
28%
No
85%
No
72%
Source: Baird CIO Study
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P27
Collaborative Commerce: Undergarments Exposed
> Collaborative commerce combines improving the effectiveness of customer / vendor touch
points with collaborative selling optimization.
Company Goal
To actively engage and service
customers in order to maximize the
number of buyers, repeat buyers, and
increase the size and quantity of
each transaction.
Solution Goal
To automate collaboration between
manufacturer or retailer and its
customers or selling partners in order
to make transactions as easy as
possible for the end customers.
Overall Collaborative Commerce Goal
The optimal deployment of people, technology and processes
in order to maximize the interaction between an enterprise, its
customers and selling partners.
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P28
Collaborative Commerce: Undergarments Exposed
Collaborative Commerce VisionAccelerator:
Collaborative Commerce Continuum
• Collaborative Commerce
VisionAccelerator helps the
organization prioritize
transformation efforts by
identifying areas that are most
urgent and are likely to provide
the greatest ROI
Partner Information as a
Strategic Asset
5
4
3
Manage the
Partner
Experience
2
Measure
Partner
Ongoing
Value
1
Integrate
Across
Business
Units
Identify
Partner
Expectations
Align Strategy with Partner Value
& Expectations
Current
Desired
Best In Class
Ratings
5
4
3
2
1
Leading
Optimizing
Practicing
Developing
Aware
Source: SBI and Company
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P29
Collaborative Commerce: Undergarments Exposed
Source: SBI and Company
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P30
Collaborative Commerce: Undergarments Exposed
• Are You Ready for Some Collaboration? Yes, if you have…
– Significant supply chain complexity, inefficiency or opportunity
– A few trading partners that are critical to your business and have close
relationships with them
– A highly competitive environment with some industry players doing collaborative
commerce
– High costs for attracting and retaining customers
– The strategic objective to leverage a unique trading partner network for
competitive advantage
– A history of adopting and mastering new business models and technologies
– No fear of being “seen” in your underwear…
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P31
Wireless: Full of Hot Air? 7
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P32
Wireless: Full of Hot Air?
Lion’s share of opportunity is in the commercial sector
This chart shows only the numbers -- not the “spend…”
• Real ROI-based opportunities for business can be significant
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P33
Wireless: Full of Hot Air?
Wireless? What are we doing with it?
Applications
• CRM
• SCM
• ERP
• Outlook
• Inventory
• Vertical
Devices
• Pocket PCs
• Laptops
• Palm OS
• Win CE
• RIM
• EPOC
Connectivity
• Wireless
• Wireline
• Dialup
• VPN
• RAS
Mobile
Middleware
• Data Sync
• Email Sync
• Systems
Management
• Personalized
Content
Integration
Points
• Database
Servers
• File and Web
Servers
• Exchange,
Domino, etc.
Really, it’s just another connectivity option
• New levels of convenience and function
• New opportunities for technical complexity and frustration!
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P34
Wireless: Full of Hot Air?
• Potential Benefits
– Increased sales / decreased costs
– Improved customer service
– Competitive advantage / Rapid ROI
• Potential Problems
–
–
–
–
–
–
–
Coverage: distances, network technology, geographies
Reliability: wired and wireless, sync vs. real-time
Standards: G3? G2.5? Bluetooth, etc.
Security: Oh, this is a fun one…
Speed: expectation management
Cost: feature creep, keeping up with the Joneses
Multiple devices, networks, integration points and applications
• Gotta Watch Human Nature as Well
– Wireless devices have been successful when they provide a more convenient way
to do old things
> Cell phones didn’t revolutionize human connection, etc.
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P35
Web Services: “The” New, New Thing? 8
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P36
Web Services: “The” New, New Thing?
Amorphous, loosely coupled software stuff…
• Loosely coupled, reusable software components that semantically encapsulate discrete functionality and are
distributed and programmatically accessible over standard Internet protocols.
• Whew! This is from The Stencil Group… It’s for programmers, that’s for sure, and the term Web Services is a
problem…
Emerging Standards of a Conceptual Model
Layers of Maturity
• Business Rules
• Web Services Flow Language (WSFL)
Emerging
• Universal Description, Discovery and Integration (UDDI)
• Web Services Description Language (WSDL)
• Simple Object Access Protocol (SOAP)
Core
• Extensible Markup Language (XML)
• Common Internet Protocols (TCP/IP, HTTP, etc.)
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P37
Web Services: “The” New, New Thing?
Software vendors and consultants LOVE this stuff
• Oodles of new stuff to worry about, including new tools and software
needed to purchase
– Oh, and then there’s the education curve, and the implementation requirements…
– Again, many vendors (IBM, Microsoft, Sun, etc.) would love for Web Services to
become “needed by the market”
What about the ROI, though, buddy?
• Geez -- there’s that pesky need to justify technology again…
– Real businesses aren’t running to Web Services in a big way
> Market conditions are causing companies to look inward, not outward
> “Foundational” projects are back-burnered in favor of real returns, real quick
> Collaborative commerce roadblocks hamstring B2B Web Services efforts
• Quiet acceptance, slow progress -- who knows?
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P38
Get Smart: Leverage Existing IT Investments 9
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P39
Get Smart: Leverage Existing IT Investments
Looking for ways to produce REAL business value?
• Data warehousing projects can make IT departments into heroes
– Keep your DBAs as far away as possible...
– This is not rocket science, nor are we waiting for “finished” technology
> Excellent tools are available now
– Don’t attempt if IT is an expense category...
> This is a strategic, ROI-based project
> High cost of entry
> Business benefits can be HUGE!
• Training on existing systems
> Amazing how much institutional knowledge is lost as staff positions turn over…
> Also, many are asked to do 1.5-2-3 jobs these days -- surviving, not excelling at anything
> Training on what’s already there can bring massive savings to development budgets, and
shrink “back-logs” dramatically
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P40
Get Smart: Leverage Existing IT Investments
Point Solutions in Integration
• Internal supply chain
– Trust your own data -- operational excellence
> Procurement
> Vertical integration
• Application integration
– Desktop applications integrated with web applications
– Document management solutions
• Server-based integration
– EAI-lite
> No need for massive projects, hugely complex “solutions”
> Link functions that need to be linked
> Get in, get out, get on with your life
• EDI / XML / Industry Portals
– Just do it. And soon.
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P41
Get Smart: Leverage Existing IT Investments
Feeding
Using
Storing
Operational, Web-based
and Historical Data
OLAP
Tools
Meta Data
Extraction
Transformation
Transportation
Data
Relational
Tools
External
Data
Applications
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P42
Business Competent IT Leaders 10
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P43
Business Competent IT Leaders
Creating business results is the only thing
• Effectiveness versus Efficiency
– .Net vs. J2EE perpetuates the wrong thing
• IT leadership for the business requires courage and decisiveness
– Do you know how to support your business effectively?
• Mutual accountability is the first step toward “mature” IT solutions
IT management today means understanding business issues
like never before
• Technocrats are unemployed
• Technology spending is scrutinized by everyone
• IT-savvy business leaders have been “burned before”
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P44
The Last Bullet 11
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P45
The Last Bullet
Beware Siren Songs, Quick Fixes, and Analysis Paralysis
• Don’t replace “just say yes” with “just say no”
– Business leaders need to continue to be bold -- and technology still represents
one of the best ways to improve productivity and reduce cost
– Don’t hide behind impossible ROI
– Remember, times of strife are also times of opportunity
– Leadership is vital -- find it within
• Don’t underestimate the need for exceptional business processes and IT
practices
– Technology makes good and bad things happen faster
• Everything eventually digresses into reality
– Business success needs vision, courage and capital
– That’s been true for 10,000 years
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P46
The Last Bullet
Back to the Future
• Be Efficiently Effective, Not Just Efficient
• Non-IT Leaders Must Understand IT Risk/Reward Ratio
– Security, Integrity, Reliability, Scalability -- each of these issues is just as important
as the “killer application”
• Understand Your Corporate Culture
– Make incremental changes as needed
– Understand that constant change is the only way to remain competitive today
Things Like e-Business Will Be Expectations
• Entrepreneurship 101 Still Applies
– But beware and be aware of “where” it will be expected
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© 2002 All rights reserved
P47
Thank You
R S Tipton, Incorporated
Effectiveness Coaching: Business; IT; Real-Life
1041 W. Dry Creek Rd.
Littleton, CO 80120
303.797.0180
[email protected]
www.rstipton.com
R S Tipton, Incorporated
© 2002 All rights reserved
P48