Transcript Presentation Title - Financial Accounting and Reporting

Financial Executives International
Val Sribar
Group Vice President
Applications & Information Research
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
Agenda
• Fundamental Recommendations (Pace Layer Pre-Requisites)
• Pace Layered Application Strategy
• Information Capability Framework
• Pattern-Based Strategy
Money and Projects:
Are You Creating More Legacy?
Budget
Project
B
New
Project
New
Project
Project
A
Base
Current
Year
Maintenance for B
Ops. Increase for B
Maintenance for A
Ops. Increase for A
Base
Next
Year
Multiyear Run Out
No More Project Funding Left?
Budget
Project
B
New
Project
New
Project
Project
A
Base
Base
Current
Year
Next
Year
Base
…
Several
Years
IT "Cleanup": A Cost-Cutting Checklist —
Freeing Up Run Rate for Legacy Renewal
Business Process and Business Information
Application Rationalization
Cost-Cutting Wall
IT Staffing/Sourcing Alignment
IT Process Refinement
Infrastructure Cleanup
IT Asset Management (Inventory)
Project Rationalization
Vendor and Contract Management
Exercise 2: Apply the Checklist —
How Can You Free Up the Run Rate?
•
•
•
IT Staffing/Sourcing Alignment
IT Process Refinement
Infrastructure Cleanup
•
•
IT Asset Management (Inventory)
•
Project Rationalization
•
Vendor and Contract Management
Business Must Engage: Use TIME to
Overhaul Your Applications Portfolio
Year 3
Year 2
Great
Technical
Quality/Condition
Year 1
Tolerate
Invest
Eliminate
Migrate
Poor
High
Low
Business Value
Exercise 3 — Try Applying TIME
Tolerate:
Invest:
•
•
•
•
•
•
•
•
•
•
Eliminate:
Migrate:
•
•
•
•
•
•
•
•
•
•
Treat Applications as Assets
Value
Value/Business Benefit
Cost
Project
Expense
Project Capital Depreciation
Ops Cost
App Maint.
Upgrade
Expense
…
…
Time
• The "E" in TIME is logical, but requires intestinal fortitude.
• Most of the time, things stay around until they pose an
obviously huge risk, or break and cannot be fixed.
• Unless there is a life-threatening moment…
Capital Planning and
Portfolio Management
Budget
Project
B
New
Project
New
Project
Project
A
…
Base
Base
Current
Year
Next
Year
Base
…
Several
Years
• Whenever someone wants something new, the CFO (or
CEO, COO) asks, "What will go away?"
• Business cases include financials for full life cycles — from
creation through retirement (including decommissioning).
• Retirement and reuse lists exist, and execution is tracked.
Rethink Program/Project Success and
What It Means to Be a Business Sponsor
Project success today:
2011
- On time
- On budget
- On specification
Phase 1
- On value (rare)
Phase 4
Success tomorrow:
- Today's metrics +
- % functions retired
- % functions reused
2012
2013
2014
Phase 2
Phase 3
Phase 5
Others
Retire Sys 1
Retire Sys 2
Retire Sys 3
Measure and reward project leaders to drive value, reuse and retirement.
Business sponsors must step up and make sure the business key
performance indicators are achieved, and drive their employee base to the
new capabilities so that old systems can be retired.
Track Value and Costs Postdeployment
IT
Costs
Total
Costs
Revenue
Cycle
Time
Scale
(Quantity)
Innovation
Quality (Ease of Change)
Exercise 4: How Will You Change Capital
Planning and Project Governance?
• CFO (or COO, CEO) Actions:
• Business Sponsor Actions:
-
-
-
-
-
-
-
-
-
-
• Project Leader Actions:
-
-
Recommendations
 Clean up underneath the applications.
 Use TIME to overhaul the application portfolio.
 Build the question of what will go away into capital planning.
 Redefine:
- Program and project success (functions retired, functions reused)
- Project leader goals
- Business sponsorship
 Track value (in addition to costs) postdeployment.
 Move to a pace-layered application strategy.
Extra Credit: Business Leader Checklist —
Develop a Road Map for Each Business Area
People:
- What do their people need to succeed?
- Who are the customers of the business leader?
Business Process:
- How does the business leader want
things done?
- What are the most important process futures?
Future
Milestone 3
Milestone 2
Business Information:
- What are the leader's current
information needs?
- What are the most important
information futures?
Key Performance Indicators (KPIs):
- What are the KPIs for the business leader?
- How are the KPIs likely to change?
Milestone 1
Current State
Improving The Business/IT Conversation
Better
Ideas
New
Ideas
Common
Ideas
Business
Leader
One Size
Fits All
Apps/IT
Leader
How Do Other "Systems" in Industry Deal With Varying
Rates of Change? Pace Layering/Shearing Layers
Structure: 30 – 300 Years
Skin: 20 Years
Space Plan: 3 – 30 Years
Services: 7 – 15 Years
Stuff: 1 Day to
1 Month
Site: Eternal
Note: For more on pace layers and shearing layers in building
architecture see “How Buildings Learn” (1994) by Stewart Brand
Let's Avoid Terminology Traps:
Remember Your Audience and Context
• Our intent is to discuss three "layers" of things that
help business leaders: try new ideas, codify better
ideas and efficiently execute common ideas.
• "System" — A set of information technology
associated with one or more business processes and
related data.
• Depending on your context and who your audience is,
replace "system" with any of these terms:
- Process
- Environment, Ecosystem
- Information, Data
- Toolkit or Tools
- Capabilities
A Pace Layered View of Systems
New
Ideas
Better
Ideas
Systems of Innovation
Systems of Differentiation
Systems of Record
Common
Ideas
Joint Marketing Example:
New Idea — Fast Change
Brainstorm
Campaign
Product
(Offering)
Exchange Basic
Materials/Info
Order
Customer
Record
Manually Work
Around Processes
Financial
Joint Marketing Example:
New Idea Matures — Medium Change:
Brainstorm
Campaign
Develop Repeatable
Routines & Rules
Product
(Offering)
Exchange Basic
Materials/Info
Automate Processes
in Systems
Order
Contractual
Agreement
Customer
Record
Manually Work
Around Processes
Integrate
Systems
Financial
Example: Moving Higher Rate of Change
Out of Systems of Record (Airline Res)
Web Travel
Planning
Systems of Innovation
Systems of Differentiation
Pricing Engine
Airline Seat
Systems of Record
What Are Your Systems of Record?
Customer
Product
(Constituent)
(Offering)
Employee
Financial
Order
Supplier
Asset
Others
Core Banking
Policies (Insurance)
Etc.
What Are Your Differentiating Capabilities?
Promote
Service
(Constituent)
Deliver
Review
(Evolves to PM)
Supplier
Procure
Upgrade
Finance
Manage
Contract
MRO
End of Life
Buy/Build/Lease
Asset
Employee
Develop
Version
Customer
Recruit/Hire
Deliver
Offering
Market
Source/Make
End of Life
R&D
How Should New Ideas be Supported?
Open
Innovation
Market
Customer
(Constituent)
Service
Recruit/Hire
R&D
Employee
Offering
Example: Externally Driven Innovation
and Differentiation Meet "Layers"
Facebook, Twitter, YouTube, Communities, Portal, etc.
People are talking about us; what do we do?
Sentiment
Analysis Service
iPhone
App
Open Innovation
Submission Box
Droid
App
Product Review
Service
Facebook
Presence
Recommendations
Engine
Systems of Innovation
Customer Service
Processes & Systems
Configurator
R&D & Product Development
Systems & Processes
Systems of Differentiation
Customer
Product
Supplier
Systems of Record
Order
Characteristics of Layers
Characteristic
Process
Characteristics
Record
Differentiation
Innovation
Structured,
repeatable
Configurable,
autonomous
Dynamic, ad hoc
Highly structured,
well managed,
mainly internal,
audited
Internal and external,
some unstructured;
more dynamic
Structured and
unstructured data;
heavy reliance on
external data
Static/Stable
Both
Dynamic
Analytics
Reporting, historical
Planning, budgeting
Predictive, scenariobased
Security
Tightly controlled,
managed complexity
Distributed control,
Federated control,
manageable complexity high potential
complexity
Limited
Moderate
Data/Information
Content
Collaboration
High
It's All About the Governance
Governance of the stakeholders, by the
stakeholders, for the stakeholders
Demand-Side
Stakeholders
Supply-Side
Stakeholders
Named
Owner
Enterprise
Architecture
Governance Differences Between the
Layers
System of
Record
Process
Change
Architecture
System of
Differentiation
Strict Change Control
Traditional
System of
Innovation
Experimentation
Alternate Platforms
Investment Pool
Funding
Capital Process
Development
Practices
Agile Practices
Waterfall
Business
Engagement
Planning
Horizon
Doing the Work
Formal Process
7+ years
1-2 years
2-3 months
Establish Realistic Process and
Data Integrity Requirements
Ambiguous,
and Highly
Flexible
Process Integrity
Facebook
Prospect
Campaign
Web Visit
Sales
Interaction
Shipping
Well
Understood,
Tightly
Controlled
Quotation
Invoicing
Order
Entry
Cash
Receipt
Data Integrity
Modest
Expectations
System of
Innovation
Scenario
Models
Social
Database
System of
Differentiation
Budgeting,
Planning,
Forecasting
Direct
Marketing
Database
System of
Record
Audit &
Compliance
Reporting,
Reconciliation
High
Integrity
Interaction Between the Layers Requires
"Connective Tissue"
Common Elements of
Connective Tissue
System of Innovation
• Master Data Management
• Process and Data Integration
System of Differentiation
VS.
• Business Service Repository
• Integrated Composition
Technology
• Common Security Architecture
System of Record
• Integrated Monitoring and
Management
Create Your Recommendations for Layers
Characteristic
Strategic Focus
Lifespan
Pace of Change
Business Process
Data Integrity
Support
Requirements
Sourcing
Budget
Investment
Record
Differentiation
Innovation
Recommendations for Layers
Characteristic
Strategic Focus
Record
Differentiation
Innovation
Improve execution
Better design
New idea
10 to 20 years
3 to 5 years
6 months to 3 years
Infrequent
More frequent;
configurability is key
Very frequent; "throwaway"
customization
Understood and
stable
Understood and
dynamic
Ambiguous and
dynamic
Data Integrity
High
Moderate
Limited
Support
Requirements
75% technical
25% business
50% technical
50% business
25% technical
75% business
Lifespan
Pace of Change
Process Viability
Sourcing
Technical
Deployment
Investment
Integrated packaged Best of breed
application suite
Custom, orchestrated,
open innovation
On-premises cloud
emerging
On-premises or SaaS
Any, but typically onpremises
Capital asset
Capital or expense
Expense
Recommendations
• Move away from a monolithic application strategy and
categorize current and planned applications by layer.
• Develop a differentiated strategy for each layer:
- Budgeting
- Selection criteria
- Architectural standards
- Maintenance and support
- Data management
- Deployment model
• Establish standards for connective tissue across the layers:
governance, integration and integrity.
• Overhaul — rationalize, standardize, simplify, modernize —
applications from the bottom layer up.
• Drive "new idea"-style innovations from the top layer down
by providing a system of innovation.
Published Pace Layer Research
 How to Get Started with a Pace Layered Application Strategy (G00211245) - http://www.gartner.com/resId=1607414
 How to Use Pace Layering to Develop a Modern Application Strategy(G00208964) - http://www.gartner.com/resId=1488129
 Gartner’s Application Pace Layer Model: Governance and Change Management (G00211809) http://www.gartner.com/resId=1635516
 Connecting Technology for a Pace-Layered Application Strategy (G00211492) - http://www.gartner.com/resId=1635415
 Systems of Record: You can Innovate on an Unstable Foundation (G00214816) - http://www.gartner.com/resId=1759924
 Using Pace Layers to Boost the Value from Your SAP ERP Investment (G00213735) - http://www.gartner.com/resId=1745114
 SOA Enables a Pace Layered Approach to Applications (G00213703) - http://www.gartner.com/resId=1728037
 Operational Tempo and Pace Layers: Go Fast When You Must; Be Thorough When You Can (G00205005) http://www.gartner.com/resId=1401131
 Business Domain-Specific Pace Layer Notes:
- Use Gartner’s Pace Layer Model to Structure Customer Service Applications Based on Business Value (G00213641) http://www.gartner.com/resId=1718814
- Applying Pace Layering to E-Commerce Processes and Applications ((G00213791) - http://www.gartner.com/resId=1749814
- Use Gartner’s Pace Layers Model to Better Manage Your Financial Management Application Portfolio (G00213657) http://www.gartner.com/resId=1730539
- Applying Gartner’s Pace Layer Model to Human Capital Management (G00214212) - http://www.gartner.com/resId=1749915
- Applying Pace Layers to Marketing Processes and Applications (G00213629) - http://www.gartner.com/resId=1744727
- Applying Pace Layering to Customer-Centric Order Processes and Applications (G00213908) http://www.gartner.com/resId=1744722
- Use Gartner’s Pace Layers Model to Structure Your Procurement Application Portfolio (G00213761) http://www.gartner.com/resId=1738114
- Apply Gartner’s Pace Layer Model to Sales Applications (G00213505) - http://www.gartner.com/resId=1746633
- Applying Gartner’s Pace Layers to Supply Chain Applications and Processes (G00214453) –
http://www.gartner.com/resId=1750324
Financial Applications
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
Midsize B2B Product-Centric Company
(2011)
Profitability Modeling and
Optimization
Strategy Management
Forecasting
Systems of Innovation
Supplier E-Invoicing
Budgeting and Planning
Accounts Payable Invoice
Automation
Financial and Management
Reporting
Collection and Deduction
Management
Systems of Differentiation
Close Management
Travel and Expense
Management
Financial Consolidation
Disclosure Management
Accounts Payable
General Ledger/Fixed Asset
Accounts Receivable
Purchasing
Treasury Management
Project Accounting
Systems of Record
Midsize B2B Product-Centric Company
(2016)
Profitability Modeling and
Optimization
Strategy Management
Forecasting
Systems of Innovation
Budgeting and Planning
Financial and Management
Reporting
Collection and Deduction
Management
Systems of Differentiation
Supplier E-Invoicing
Close Management
Travel and Expense
Management
Financial Consolidation
Disclosure Management
Accounts Payable
General Ledger/Fixed Asset
Accounts Receivable
Purchasing
Treasury Management
Project Accounting
Systems of Record
Midsize Service-Centric Frim
Profitability Modeling and
Optimization
Strategy Management
Forecasting
Systems of Innovation
Budgeting and Planning
Travel and Expense
Management
Financial and Management
Reporting
Collection and Deduction
Management
Project Accounting and Billing
Systems of Differentiation
Close Management
Financial Consolidation
Accounts Payable
General Ledger, Fixed Asset
Disclosure Management
Purchasing
Treasury Management
Accounts Receivable
Systems of Record
Large Multinational Company (2011)
Profitability Modeling and
Optimization
Supplier E-Invoicing
Strategy Management
Forecasting
Debt and Investment
Management
XBRL-Based Management
Reporting
Systems of Innovation
Budgeting and Planning
Financial and Management
Reporting
Close Management
Disclosure Management
Travel Booking
Risk Management
AP Invoice Automation
In-House Banking
Collection and Deduction
Management
Systems of Differentiation
Expense Reimbursement
Financial Consolidation
Accounts Payable
General Ledger/Fixed Asset
Accounts Receivable
Purchasing
Bank/Cash Management
Project Accounting
Systems of Record
Large Multinational Company (2016)
Strategy Management
Profitability Modeling and
Optimization
Debt and Investment
Management
Forecasting
Systems of Innovation
XBRL-Based Management
Reporting
Financial and Management
Reporting
Collection and Deduction
Management
Travel Booking
Risk Management
Budgeting and Planning
Systems of Differentiation
Supplier E-Invoicing
In-House Banking
Close Management
Expense Reimbursement
Financial Consolidation
Disclosure Management
Accounts Payable
General Ledger/Fixed Asset
Accounts Receivable
Purchasing
Bank/Cash Management
Project Accounting
Systems of Record
Recommendations for Layers: FM Apps
Characteristic
Record
Differentiation
Innovation
Strategic Focus
Improve execution
Competitive
differentiation
Business
transformation
Lifespan
10 to 20 years
Three to five years
12 months to three years
Pace of Change
Infrequent,
incremental
More frequent,
configurability is key
Rapid deployment of
new capabilities
Business Process
Understood and stable
Understood and
dynamic
Ambiguous and
dynamic
Data Integrity
High
High
Moderate
Support
Requirements
75% technical
25% business
50% technical
50% business
25% technical
75% business
Sourcing
Integrated application
suite
Best-of-breed or suite
vendor extension
Specialist niche vendor,
possibly larger vendors
Budget
Shared-service/IT
Mix of line of business
and IT
Line of business
Investment
Capital
Capital and/or expense
Capital and/or expense
Information &
Pattern-Based Strategy
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
Pushing Information Initiatives to the
Extreme
Pattern-Based Strategy™
Social
Computing
Context-Aware
Computing
Velocity
Volume
Social
Networking
Search/
Mobile
Variety
Documents
Complexity
Transactional Data
IT/OT
Images
Enterprise Systems
Audio
Text
Video
Extreme Information Management: More Than Quantification
— The 12 Dimensions of Information Management
• Qualification and Assurance:
Perishability
Fidelity
- Fidelity, co-created meaning and context
- Linked data
- Validation
Validation
Classification
Linking
Contracts
- Perishable nature
• Access Enablement and Control:
- Sensitivity/classification
- Agreed taxonomy/ontology or contracts
- "Heat" mapping or pervasiveness
of use case
Technology
Velocity
Pervasive Use
Volume
- Technology enablement and advances
• Quantification:
- Volume, big
- Variety
Variety
Complexity
- Complexity
- Velocity
Information Continuum
Structured
Data
Very Structured
Content
Hybrid
Unstructured
From “Information as a By-product” to
“Information as an Asset”
Structured
Data
Content
Hybrid
Specialized Capabilities
Information Semantic Styles
manage metadata
Common Capabilities
Describe
Organize
Integrate
Transactional
Data
Social
Documents
Share
Image
IT/OT
Govern
Text
Audio
Implement
Mobile
Video
Search
Engine
Analytics Continuum
Past
Future
What
Happened?
What is
Happening?
What is likely
to Happen?
Reporting,
Dashboards
Real-Time
Analytics
Predictive
Analytics
Why did it
Happen?
Why is it
Happening?
What should I
do About it?
Forensics &
Data Mining
Real-Time
Data Mining
Prescriptive
Analytics
Seeking Exceptions and Fact-Based
Decisions in Information
But …
• Just as there was too much data —
now there's too much information
• Information is not shared (trust,
technology, language)
• Information is often conflicting
• New sources of information
(e.g., the collective) are often
not considered
• No recognition of patterns across
different types of information
(people, processes, data)
Pattern Seeking: Focus on Your Organization
and Multiple Information Sources
Focus Pattern Seeking
on Your Organization's
Issues/Opportunities
See Patterns Across
Multiple Information
Sources
Data
People
Process
The "Collective"
Requirement:
Move Beyond Seeking Patterns
Seeing New/Novel Business Patterns
Before They Impact Your Organization
Analyze the Impact of the Business
Pattern on Operations or Strategy
Using Business Patterns, Make the Right
Decisions (Fact Basis), and Execute
Enabling Others to See How the Above
Leads to More Consistent and Improved
Business Outcomes
Patterns Will Vary in Organizational Impact
Innovation
e
Operational
New Order
Process
New Product/
Service
Supplier Cancels
Contract
Oil Price
Fluctuation
Risk
Strategic
You Need a Pattern-Based Strategy
Seek Patterns That May Have a
Positive or Negative Impact on
Your Strategy or Operations
Model Pattern Impact on
Strategy/Operations
Decide and Execute Change
Pursuant With Requirements
of the Pattern
2011: Leading Organizations Will Excel at Identifying New
Patterns and Exploiting Them for Competitive Advantage
What are the best
practices/technologies for
identifying business patterns that
may have a negative/positive
impact on business outcomes?
Algorithmic Trading
Fraud Detection Systems
Recommendation Engines
Supply Chain Management
How can we exploit these
disciplines/technologies for
competitive advantage?
A Pattern-Based Strategy
provides a framework to
proactively seek, model and
adapt to patterns that may
have a positive or negative
impact on your strategy or
operations across many
sources of current and
evolving information.
IT Intrinsic to Pattern-Based Strategy
Today …
Patterns have been recognized and are often valuable, but have been
limited in applicability … until now.
Find and document
patterns:
Interpret, analyze
pattern impact, and
define scenarios:
• Predictive Analytics
• CPM
• Industry-Specific —
e.g., Fraud/Security
• Operation Planning
and Modeling Tools
• Social Media
Platforms
• Information Mediums
(Access to Data)
• Business Intelligence
• Social Network
Analysis
Act on the results as appropriate
at appropriate speed:
• Model-Driven Business Applications
• Business Process Management
• Application Development
• Business Activity Monitoring
• Service-Oriented Architecture
• Forecasting Tools
… And Technology Will Continue to Evolve
to Support Pattern-Based Strategies
Social
Software
Communications
Complex
Event
Processing
Taxonomy/
Ontology
Rule
Engines
XBRL
Collaboration
Recommendation
Engines
Integrated
Business
Planning
Pattern-Based Services
Pattern-Based-Service Brokers
Pattern-Based Ecosystems
Pattern-Based Strategy Requires
New Disciplines
Pattern Seeking is a
discipline to seek and
exploit signals that may
lead to a pattern that
will have a positive or
negative impact on
strategy or operations.
Optempo Advantage is a
discipline for improving an
organization's competitive
rhythm so that it can
consistently and dynamically
match pace to purpose.
Performance-Driven
Culture is a discipline
that extends the
traditional performance
focus to leading
indicators, modeling the
impact of patterns, and
driving desired behaviors
(as a result of a new
pattern) across the
organization.
Transparency is a
discipline that enables
awareness and visibility to
facts that are critical to the
achievement of the
desired outcomes of an
organization.
Discipline No. 1: Pattern Seeking
Innovation
Pattern
Recognition
Pattern
Matching
Strategic
Operational
Risk
Discipline No. 2: Establishing a
Performance-Driven Culture
Performance-Driven Culture
Monitoring
Evolution
Stage
Enterprise
Metrics
Framework
Predictive
Planning/
Modeling
Pattern-Based
Strategy
Seek, model, adapt
to changing
patterns
What-if analysis, scenario planning,
optimization and simulation
Driving/outcome metrics, balanced scorecard, strategy maps,
leading/lagging indicators and validation of key performance
indicators
Reporting, dashboards, alerts and business activity monitoring
Focus
Degree of Business Impact and Value
Discipline No. 3: Operational Tempo
Advantage Matching Pace to Purpose
Operational Tempo Advantage is a discipline for improving an
organization's competitive rhythm so that it can consistently and
dynamically match pace to purpose.
Shift the Levers,
Shifts Your Tempo
People
Information
Process
Time
Discipline No. 4: Transparency Is an
Enabler of Pattern-Based Strategy
(Lagging)
Regulated
Financial
Example
Metrics
Auditability
Business
Pattern
Activities
Timeliness of Indicator
Key Performance and
Key Risk Indicators
• Revenue • Order to Cash
Cycle
• Profit
• Backlog
(Very Leading)
Weak Signals
• Time to
Market
• Fraud Events
• Net
Promoters
Score
• Social
Network Size
• Cash
• Damage to
Physical Assets
• Business
Disruptions
• Very
High
• High
• Medium
• Low
• Defined
• Creative
• Exception
• Collective
Patterns
Pattern-Based-Strategy Recommendations
•
Focus on patterns that impact business outcomes
•
Combine current/emerging sources of information to see patterns:
- Data + people + process + new sources of information (collective and creative)
•
Culture:
- From sense and respond (reactive) to seek, model, adapt (proactive)
- If you perfect "seek," your inability to adapt will be a constraint (hint: you need to
focus on all three areas — not just one)
- Increased focus on leading indicators, integrated business performance, change
management
- Technology-enabled cultural change is critical
•
Explore technology to support seek, model and adapt:
- Current technology will continue to evolve
- Integration will occur (either by you, a system integrator or vendors) across seek, model
and adapt to enable new business outcomes
- New technologies that span seek, model, adapt are available and will continue to emerge
•
Pattern seeking — Explore emerging category of pattern-based services:
- Pattern-based-service brokers
- Pattern-based-service ecosystems will form around major vendors