IT Matters is a blog for IT professionals interested in improving corporate IT performance and making IT needs evolve to support the business in a flattening world.

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April 10, 2007

Death by a thousand cuts

Pick up any issue of the CIO magazine, or glance at any IT Strategy related blog postings and you'll hear the constant refrains - "Must have better Business/IT alignment", "Must make sure that IT objectives are in line with business strategy", "Must make sure that IT and business work together as a team" and so on. All good stuff, for sure. And very noble. But it's one thing to announce business/IT alignment at the CxO level, and another to make sure it gets translated to action at the ground level.

Take an average company. Chances are that the users of technology - customer service advisors, production managers, marketing personnel etc. - hate IT. Yes, hate. And not just the abstract concept of hating IT (e.g. hating Microsoft for Outlook), but hating IT people. Why is this so? Is it because IT personnel are in general social misfits and like dealing with machines instead of humans? Is it because IT people can't explain concepts simply? Is it because IT people regard business folk as dumb and incapable of understanding technology? While I think there may be an element of truth in each of these gross generalizations, I think the core of the problem has to do with control and trust. Users of technology resent the control that the IT people have over their professional lives and resent IT's lack of trust. And with good reason.

Take security for example. I got a nasty call today from a information security officer at a client. He informed me that my having instant messenger, iTunes (a music player) and Freemind (a mind mapping tool) on my corporate laptop was a threat to corporate security.

Now before the security zealots severely chide me for failing to follow appropriate policies, let me explain. I fully understand and agree with the need for security policies and the need to protect against the threat of corporate espionage. But there's a balance between given freedom to explore and a fascist crackdown on independent thought. Why with instant messenger I may be able to get a quick answer before a meeting; why with iTunes I may even be productive at work as I create a presentation; why with FreeMind I may be able to organize my thoughts and plan better. Clearly threatening to the very edifice of the corporation.

It's exactly this kind of big brother behavior that kills initiative and make corporate citizens into drones. And makes people start to hate IT. This has to stop. Let's face it - IT shops are seldom the founts of innovative ideas. Was instant messenger created by a strategic IT committee looking into improving employee communications? Were wikis created by the IT department looking for a way to empower business folks into sharing knowledge? Was blogging software created by a team of IT professionals dedicated to facilitate equality in expression?

More often than not, it's the business folk who are pushing the envelope by bringing technologies in house to make their lives easier. We have to encourage this. Not to foster anarchy or a deliberate flouting of rules - but to allow knowledge workers to dream, think and create. Monitor the activities of employees, don't control. Trust your fellow business employee, don't patronize.

April 09, 2007

Building differentiation via IT

BUILDING DIFFERENTIATION VIA IT
“.. IT is perceived as valuable by CEOs when it increases speed to market, fosters innovation, provides real-time information, improves productivity and uses information as a competitive weapon. But CEOs are also concerned about IT inhibiting change: IT leaders who can make only incremental changes seem to be creating inertia.” - The Gartner Scenario 2006- The Current State and Future Direction of IT
Michael Porter identified two key sources of competitive advantage
·        Cost leadership
·        Differentiation
Traditionally businesses have chosen to adopt one or the other strategy to achieve competitive advantage; While Information Technology (IT) is positioned to enable an organization to effectively pursue both a) cost leadership and b) differentiation IT must ultimately be aligned with the core strategy of the firm
The case for cost leadership via IT is has been better understood than differentiation. IT has been able to directly support cost leadership. To date organizations have been more successful at achieving cost leadership via IT – e.g. back end process automation, process optimization, strategic sourcing and other similar strategies than;
The case for building competitive advantage with IT via ‘differentiation’ requires IT organizations innovate themselves and work closely with new product / service innovation groups. Ultimately it is information that allows a firm to create a defensible position for itself against the five forces. The extent to which IT organization can provide competitive advantage via IT depends on the organization’s ability to drive value from “Information” component of the ultimate product / service.
A number of external and internal factors (forces) enable organizations to drive value from information - among them are
1)      Adoption of enabling technologies  (RFID, SOA) – Process innovation using these technologies
2)      Increasing digital conversion
3)      Smarter end consumers
4)      Integration within the business partners in the ecosystem (M&A activity)
5)      Innovation within the ecosystem

The next series of blogs will develop Points of Views regarding - How can organizations achieve differentiation based competitive advantage via IT?

April 03, 2007

Business Alignment and the CIO

IT and Business Alignment is today’s Holy Grail for IT organizations and the CIOs that endeavor to lead them.  But why pursue something so seemingly unattainable?  Because, based upon a recent survey by CIO Magazine, alignment gives CIOs access to more of the resources they need – everything from more budget to more staff to a greater ability to focus on strategic IT.

The 2007 State of the CIO survey identified that only one out of five CIOs is aligned with the business’s strategic goals. 

The same survey determined that aligned CIOs were twice as likely to have created a new revenue stream and 150% more likely to have created a competitive advantage for the business than unaligned CIOs. 

Some would call this “business savvy”, not “business alignment”.  Despite the lofty intentions of seeking alignment, perhaps a more pragmatic focus is to make IT relevant to the business.

Beyond lowering costs and opening new business opportunities, finding new ways to increase the business bottom-line profitability is a more tangible objective.

Today’s CIOs need to better understand the company’s products and services, its customers, and the issues facing its stakeholders – marketing, sales, manufacturing, distribution, business partners and customers. 

Ask the question, what can IT do to make their jobs easier and improve the bottom line?  Answering the question will most certainly lead to business alignment.