Showing posts with label Competitive Advantage. Show all posts
Showing posts with label Competitive Advantage. Show all posts

May 12, 2012

It's Not iStuff, It's Your iFuture

There is an editorial in the Wall Street Journal (11 May 2012) called "Make It a Summer Without iStuff."

It is written by David Gelernter, Professor of Computer Science at the prestigious Yale University and I was much dismayed to read it.

With all due respect, Gelernter makes the case--and a poor one at that--for keeping kids away from technology.

He calls technology devices and the Internet, "the perfect anti-concentration weapon...turning a child's life into a comedy of interruptions."

Gelernter states pejoratively that the "whole point of modern iToys...is not doing anything except turning into a click vegetable."

Moreover, Gelernter goes too far treating technology and the Internet as a waste of time, toys, and even as dangerous vices--"like liquor, fast cars, and sleeping pills"--that must be kept away from children.

Further, Gelernter indiscriminately calls en masse "children with computers...little digital Henry VIIIs," throwing temper tantrums when their problems cannot be solved by technology. 

While I agree with Gelernter that at the extreme, technology can be used to as a escape from real, everyday life--such as for people who make their primary interaction with others through social networking or for those who sit virtually round-the-clock playing video games.

And when technology is treated as a surrogate for real life experiences and problem solving, rather than a robust tool for us to live fuller lives, then it becomes an enabler for a much diminished, faux life and possibly even a pure addiction. 

However, Gelernter misses the best that technology has to offer our children--in terms of working smarter in everything we do. 

No longer is education a matter of memorizing textbooks and spitting back facts on exams in a purely academic fashion, but now being smart is knowing where to find answers quickly--how to search, access, and analyze information and apply it to real world problems. 

Information technology and communications are enablers for us do more with less--and kids growing up as computer natives provide the best chance for all of us to innovate and stay competitive globally. 

Rather then helping our nation bridge the digital divide and increase access to the latest technologies and advance our children's familiarity with all things science, technology, engineering and math (STEM), Gelernter wants to throw us back in time to the per-digital age.

With the ever rapid pace with which technology is evolving, Gelernter's abolishing technology for children needlessly sets them back in their technology prowess and acumen, while others around the world are pressing aggressively ahead. 

Gelernter may want his kids to be computer illiterate, but I want mine to be computer proficient.  

iStuff are not toys, they are not inherently dangerous vices, and they are not a waste of our children's time, they are their future--if we only teach and encourage them to use the technology well, balanced, and for the good. 

(Source Photo: here with attribution to "Extra Ketchup," Michael Surran)


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April 29, 2012

Strategy, Blue and Red and Successful All Over

Recently, I was reading about something called “Blue Ocean Strategy.”

The notion is that in pursuing differentiation, an organization’s aim is “not to out-perform the competition in the exiting industry [and to fight it out turning the oceans blood red), but [rather] to create a new market space or a blue ocean, thereby making the competition irrelevant.”

While I like the ocean’s metaphor and agree with the need for organizations to innovate and create new products and services (“blue oceans”), I think that competition (“red oceans”) is not something that is inescapable, in any way.

In profitable industries or market spaces, competition will enter until supply and demand equilibrium are met, so that consumers are getting more or less, the optimal supply at the requisite demand. The result is that organizations will and must constantly fight for survival in a dynamic marketplace.

Moreover, as we know, any organization that rests on its past successes, is doomed to the trash heaps of history as John Champers, the CEO of Cisco stated: It’s “easy to say we’re the best…we don’t need to change, but that’s exactly how you disappear.”

In essence, while we may wish to avoid a duke-it-out, red ocean strategy, every successful innovative, differentiation-driven, blue ocean strategy will result in a subsequent red ocean strategy as competitors smell blood and hone in for the kill and their piece of flesh and cut of market share, revenue, and profit hide.

To me, it is naïve to think that blue ocean and red ocean strategies are distinct, because every blue ocean eventually turns blood red with competition, unless you are dealing with a monopoly or unfair competitive environment that favors one organization over any others.

The key to success and organizational longevity is for innovations to never cease.  When innovation dries up, it is the moment when the organization begins their drowning decent into the ocean’s abyss.

So as with the lifecycle of all organizations, blue ocean strategies will eventually result in red oceans strategies.  Once this occurs, either the organization will leverage their next blue ocean strategy or bleed red until their body drains itself out and dies off—leaving the superior organization’s blue ocean strategy to carry the day.

Together, blue oceans and red oceans—drive the next great innovation and healthy competition in our dynamic, flourishing market.

(Source Photo: here with attribution to freezingmariner)

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October 10, 2011

Growing America's Jobs

Robot

ABC News reported tonight of a home builder in Montana making a house entirely from American made products--as difficult as they are to find.

The home uses more than 120 products from 33 states and costs only 1 to 2% more than a foreign-sourced one.

The builder who is also an economist says that if builders around the country would just increase their use of made in the USA products by 5%, we could increase jobs by over 220,000 right now.

Multiple it by ten, if we actually produced these homes 50% or more here in the USA--that's 2+ million jobs.

It makes you wonder if all the outsourcing is just another addiction where we feel good now--by saving a little today at the checkout line--but we pay the piper down the road, through the gutting of our own labor force and the future capacity for us to produce.

While, I don't believe in circle-the-wagon protectionism out of fear of competing in the global marketplace, I do think we need to assess the deals we make to ensure that we are getting the best for our people and our future--and not just for the next quarter or two, but for the long-term!

Having started my career in business, I am well aware that this is "one big balance sheet" and things have to add up or else short-term profits today are made at the expense of long-term capabilities tomorrow.

If the strategy was that we would somehow give the blue collar work to others and keep the white collar work for ourselves, it seems like we have deluded ourselves into thinking that a one-size fits all economy will keep America running.

We need broad based opportunities for our diverse workforce in all areas of work, and we need to remain strategically self-sufficient, so that we do not outsource ourselves to economic death, where we lose the know-how or capability to help ourselves.

Buy, build, and work America into an economic powerhouse that the world relies on, rather than one that is fed by others with economic loans and cheap goods made in wherever-land.

In my opinion, there is no real alternative to balancing the national budget as well our current account deficit--if we consistently spend more than we earn, and the ships keep unloading more stuff here and then going back overseas half empty, eventually the system has got to go kaput!

As the world's superpower, our coffers can once again be full and our ships can brim proud with made in America wares--but this can happen only if we focus on products that outlast, outlook, and outperform.

Competition has never been more fierce and the stakes never higher for us individually and as a nation--we will need technology to keep us steadily improving and releasing the pressure from this enormous economic cooker.

(Source Photo: here)

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February 22, 2011

The Little Techno Bus That Could




In an accomplishment sense, I am very proud of what Pope County, Arkansas is doing in terms of advancing education with technology on school buses for K-12 through the Aspirnaut program (photos from their site), founded and supported by Vanderbilt University.


Government Technology Magazine reports in February 2011 that Aspirnaut is transforming school buses into mobile classrooms, so that ”idle time is transformed into extended learning time with laptop computers and Internet access.”


The Hector School District buses are now equipped with computer screens, earphone jacks with headphones, wireless Internet, and scanning devices to record bus activity.


“The five 19-inch customized computer screens stream math and science content from PBS, NASA, the Discovery Channel, CBS News, and the Smithsonian Institution for students to watch on their hour-long rides to/from school. The screens also include video-conferencing capability.”


Students are seated on the bus in groups by age and grade to listen to their specific curriculum by plugging their headphones into jacks beneath their seats. The content of each bus-seating zone is then correlated to what the students are learning in the classroom.


Dr. Julie Hudson, co-founder of the program in 2007, is looking to improve student’s achievements, especially in Science, Technology, Engineering, and Math (STEM). These are learning areas where we have fallen dangerously behind in national rankings, and this is seen as harming our innovativeness and competitive capacity for the future.


On one hand, I think that this type of extended learning program is very valuable to our students and provides them the opportunity to get additional constructive learning time in. Also, it’s great to distract them from getting into potential trouble on the ride home. :-)


Yet, on the other hand, I am also concerned that we continue to put more and more pressure on our children to seemingly always be productive, learning, and competing. Some examples of this are not just extended learning days (on buses or off), but also extended school years, even summer school, AP classes, SAT courses, some wonderful volunteer programs, internships, oodles of extra-curricular activities, side jobs, and more. Certainly seems like it’s not easy to be a kid these days!


Now, even a simple bus ride to/from school/home is no longer a time to unwind, sleep, socialize, listen to music, play video games, or just be kids. Even the choice of video content on the buses is purely educational and there is nothing social, fun, or relaxing for the children anymore. How about an episode of The Brady Bunch?


While, I certainly understand the need for us to advance our education, skills, and competitive positioning, and the learning bus is a great concept to move us towards that. However, I cannot help but remember a more innocent and carefree time in my own childhood, where there was “a time and place for everything.”


Then (not that long ago!), we took learning seriously and worked hard—always with a focus on the future (What will I be…Where do I want to end up…How can I live up to my potential?), but we also made sure to have time for friends and fun—downtime and think time. Today however, with the high-tech, always on, 24/7 society that we are creating for our children and ourselves, are we losing a sense of balance, perspective, even our innocence (so to say)?


In relation to this, I wonder sometimes about the Kingdom of Bhutan’s concept of measuring Gross National Happiness instead of what we measure Gross National Product, and I ask myself, where is our school bus heading?


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January 9, 2011

The Center Of Gravity Is Information

Center of Gravity (COG) is a military concept that Dr. Joseph Strange defines as “primary sources of moral or physical strength, power, and resistance.” From a military perspective, this is where we should concentrate when attacking the enemy. As Prussian strategist Carl von Clausewitz states, “that is the point against which all our energies should be directed.”

In “Center of Gravity Analysis” (Military Review, July/August 2004), Army Colonel Dale Eikmeier describes the framework for COG and how an enemy (your threat) attempts to exploit them, as follows:

· Center of Gravity—the organizations that do the work (e.g. the military/industrial complex)

· Critical Capabilities (CC)—the strengths of the organization—its “primary abilities”

· Critical Requirements (CR)—the supplies that a COG use—the inputs that are their opportunities, if leveraged for future plans

· Critical Vulnerabilities (CV)—the vulnerabilities a COG has—e.g. exposed or unguarded critical infrastructure

From an enterprise architecture perspective, I greatly appreciate this analysis of COG as it aligns beautifully with Albert Humphrey’s famous Strenghts, Weaknesses, Opportunities, and Threats (SWOT) Analysis for organizational strategic planning.

Aside from typical SWOT analysis to develop your organization’s strategy, the COG analysis adds greater offensive analysis to SWOT--like the military, organizations using the COG model can disrupt competitors’ advantages by seeking to weaken them where they are most vulnerable.

For example, EA used in this fashion may lead a company to build a sophisticated online sales site that directs customers away from your competitor’s retail location. Similarly, acquiring a major supplier (i.e. vertically integrating) may disrupt a competitors’ supply capability, and so on. The point is that EA becomes a force for attack rather than a mere planning tool or information asset.

It is at this point that I disagree with the assertion in the article that “Information is not power; it is a tool, an enabler. It helps wield military or economic power. By itself, it is simply information.”

Far to the contrary, information is one of the greatest assets that we have. It is the way that an advanced, intellectually based society competes. Of note, our declining performance in Science, Technology, Engineering, and Mathematics (STEM), which is so greatly worrisome to our leadership, is of concern because it is directly a threat to our competitive advantage, both militarily and economically, in the global environment.

Information, as embodied by the Internet, is now the center of our society. With it, we perform critical tasks of information sharing, collaboration and education. Used effectively, our military has developed robust command, control, communications, computers, intelligence, reconnaissance, and surveillance (C4ISR)—all information-based. Similarly, our industry is highly competitive and advanced because of the engineering, innovation, and people behind it.

Enterprise architecture, once a small part of the IT infrastructure, can actually play a far greater role in the information society if we allow it to. We have morphed from the industrial age of the 18th and 19th centuries to a highly advanced information society that creates new sources of critical capability, but also new critical vulnerabilities that must be defended. And we must also leverage the vulnerability of our enemies in order to stay viable. Whether it’s cyber-warfare or economic survival, information is at the heart of everything we are successfully doing today.


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November 7, 2010

Match Me With You

eHarmony and Match.com and other matchmaking sites are all the rage on the single scene with recommended partners for people being done by computer algorithm.

Now this concept of matching of people is going beyond people’s love lives and into the world of business.

CIO Magazine (1 Nov. 2010) reports in an article called “Call Center Matchmaking: Analytics pair customers with the right agents for better service” that companies are using similar technology to match customers and call centers reps in order to get higher satisfaction ratings and increased retention rates—and it’s working!

Since implementing the IBM system called Real-Time Analytics Matching Platform (RAMP), for example, Assurant has increased customer retention rates by 190 percent.

Other companies have been doing customer matching on a more elementary level for some time—for example, financial service firms route calls from high-net worth or high-balance customers to “premier agents.” Similarly, calls made at certain time are “routed to Boise instead of Bangalore.”

With computer systems like RAMP, there is a recognition that customers can do better by being matched with specific customer service representatives and that we can use business analytics to examine a host of data variables from sex and age to persistence in calling to match a customer to “the right” representative to handle their issues.

Based on success rates, computers have been shown to perform sophisticated business and data analysis, and to successfully match people for more successful business (and life) transactions.

If we can successfully pair people for love and for customer service, it makes me wonder what’s next (maybe happening already)? For example, will we pair people to “the right”:

  • Potential adoptee parents?
  • Neighborhoods?
  • Schools?
  • Jobs?
  • Bosses?
  • Coworkers?

In essence, as the “bar is raised” in a highly global and competitive environment, will we be pushed to seek to maximize our potential for success interaction with others—for developing high-performance and highly profitable interactions—by pairing exclusively with those that “screen” positive for us?

With genetic testing already being used to screen for babies that people want—like an order at Burger King—“hold the pickle, hold the lettuce, special orders don’t upset us…”—we are already well on our way to “special ordering” the people in our lives.

Companies have also started to use intelligence and personality tests to weed out applicants, and the use of personality tests like Myers Briggs is already being employed for better understanding each other and working together.

However crude all this may be, it is essentially a high-tech way of trying to optimize our performance. The question is can we use technology to enhance personal interactions and elevate performance without subjecting people to undue bias, criticism, and violation of their privacy? This is a very slippery slope indeed.

Another potential problem with computer matching is that when we rely on computers to “tell us” when we have a good match, we are potentially missing potential opportunities for matches with others that cannot be easily quantified or summed up by a computer algorithm? As they say, for some “two birds of a feather flock together” and for others “opposite attract”—we shouldn’t limit ourselves to any creative, positive possibilities in relationships.


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June 12, 2010

Managing Change The Easy Way


We all know that change is not easy, even when it's necessary.

As human beings, we question change, fear change, and at times resist change.

Often, change is timely or even overdue, and is needed to remain fresh, competitive, and in sync with changes in the external and internal environment.

At other times, change could be conceived of for selfish, arbitrary, politically motivated, or poorly thought out reasons.

People often react to change negatively, saying things such as:

- “Everything is really fine, why are you rocking the boat?”

- “This will never work” or “We’ve already tried that and it didn’t work.”

- “This is just the pendulum swinging back the other way again.”

- “Thing are now going to be even worse than before.”

- “I’ll never do that!”

The key to dealing with change is not to dismiss people’s feelings, but to take the time to thoroughly understand them, to take input from them for change, and to explain what is changing (precisely), for whom, when, where, and why.

The more precise, timely and thorough the communications with people, the better people will be able to deal with change.

To successfully plan and implement change, we need people to be engaged and on-board rather than to ignore or subvert it.

Below is a nice “change model” From http://www.changecycle.com/changecycle.htm that helps explain the stages of change that people go through including loss, doubt, discomfort, discovery, understanding, and integration.

To me the keys to managing through these six stages of change are solid information, clear communications, and people working together.

The Change Cycle™ Model

(All of the text below is quoted)

Stage 1 – Loss to Safety

In Stage 1 you admit to yourself that regardless of whether or not you perceive the change to be good or 'bad" there will be a sense of loss of what "was."

Stage 2 – Doubt to Reality

In this stage, you doubt the facts, doubt your doubts and struggle to find information about the change that you believe is valid. Resentment, skepticism and blame cloud your thinking.

Stage 3 – Discomfort to Motivation

You will recognize Stage 3 by the discomfort it brings. The change and all it means has now become clear and starts to settle in. Frustration and lethargy rule until possibility takes over.

The Danger Zone

The Danger Zone represents the pivotal place where you make the choice either to move on to Stage 4 and discover the possibilities the change has presented or to choose fear and return to Stage 1.

Stage 4 – Discovery to Perspective

Stage 4 represents the "light at the end of the tunnel." Perspective, anticipation, and a willingness to make decisions give a new sense of control and hope. You are optimistic about a good outcome because you have choices.

Stage 5 - Understanding

In Stage 5, you understand the change and are more confident, think pragmatically, and your behavior is much more productive. Good thing.

Stage 6 - Integration

By this time, you have regained your ability and willingness to be flexible. You have insight into the ramifications, consequences and rewards of the change -- past, present, and future.


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June 5, 2010

Reorganization Best Practices

Sometimes a leader has to consider and implement a reorganization (“reorg”) as this can benefit a organization.

Organizations are not a static environment, but rather are dynamic systems. To survive, organizations must adapt to changes in the external environment and from changing forces within, by reorganizing in ways that improve the organization’s ability to perform.

Harvard Business Review, June 2010, has a couple of important articles on this topic (the articles are actually in reverse order in the issue):

1) “Change For Change’s Sake” by Vermeulen, Puranam, and Gulati

2) “The Decision-Driven Organization” by Blenko, Mankins, and Rogers

In the first article, the authors assert that “even successful corporations have to shake things up to stay ahead of the competition.”

  • Sometimes, this can be driven by changes in the competitive landscape necessitating that we adapt to meet these head on.
  • At other times, it is because of internal organization dysfunctions such as where: routines are stifling innovation, silos are hampering collaboration, and resources have become entrenched with the powerful few—these will hamper performance and potentially destroy the organization if not disrupted.

In the second article, the authors recommend that reorganizations should focus on better decision-making, i.e. on structures that “improves the organization’s ability to make and execute key decisions better and faster than competitors.”

  • Reorgs are seen as necessary for creating the right structure to perform: “Like Generals, they [CEO’s] see their job as putting the right collection of troops in the right place…Nearly half of all CEOs launch a reorg during their first two years on the job.”
  • Results of reorgs are generally poor: According to a Bain and Company study of 57 reorganizations, “fewer than one-third produced any meaningful improvement in performance. Most had no affect, and some actually destroyed value.”
  • Start with a “decision audit”: “Instead of beginning a reorg with an analysis of Strengths, weaknesses, opportunities, and threats [SWOT], structural changes need to start with what we call a decision audit. The goals of the audit are to understand the set of decisions that are critical to the success of your company’s strategy and to determine the organizational level at which those decision should be made and executed to create the most value.”
  • Align organizational elements to optimize decision-making: Organize assets, capabilities, and structures to “make the essential decisions and get those decisions right more often than not.” Similarly, align “incentives, information flows, and processes with those related to decision-making.”
  • Avoid conducting reorgs that degenerate into turf battles and horse-trading: “Powerful managers grad decision rights they shouldn’t really own while weak ones surrender rights they really should own. [Further,] people end up with responsibilities hat are defined too broadly or too narrowly, given the decision they need to make…without a focus on decisions, these power struggles too often lead too creeping complexity in an organization’s infrastructure.”

In my opinion, reorganizations are likely to be most successful when they have specific goals such as adapting to changes, creating new opportunities, closing gaps, and fixing misalignments. Simply “shaking things up” is not enough reason.

Secondly, aligning the organization around execution is as important as better planning/decision-making. Therefore, we should restructure around two areas—strategy (i.e. planning and decision-making) and operations. For example, in Information Technology, we could restructure and align the organization to improve:

1) Strategy formulation: This involves reorganizing to improve architecture and planning, investment decision-making, project management oversight, customer relationship management, and performance measurement. (Reference: The CIO Support Services Framework)

2) Operational execution: This involves reorganizing to improve IT execution of network and operations, systems lifecycle, information management, and information assurance.

Thirdly, success depends on implementing the reorg with people, funding, and other tangible changes that will help the reorg to meet its goals. This advances it from “redrawing the map” to giving it “the legs” to work on the ground, and is the most exciting stage in seeing the vision be fulfilled.

By reorganizing with specific goals, focusing on better decision-making and execution, and on fully implementing the reorganization with enabling structural and process changes, executives can broadly and deeply impact the performance of the organization for the better.


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May 19, 2010

Information, So What?

It’s the information age and for most of us that means we are living and working with various forms of information technology every day giving us access to information through—voice, data, and video—thatshows up on our computer screens, smart phones, tablets, and more.

We are rich in information.

Many would say that we are overloaded with information, because there is so much and we can’t seem to possibly process it all no matter how hard we try--there is always more email to reply to, more YouTube videos to watch, more news and research to read up on, and more people to communicate and collaborate with via social networks, wikis, blogs,
tweets, and so on.

So what’s the point of all the information and collaboration? Is it just for fun and entertainment—like one big game of Trivial Pursuit? Or is it for getting a professional edge—i.e. the more you know and the more people you know, the better you are to advance and succeed?

Ultimately, information serves many purposes—it is the lifeblood of our humanity…it nourishes our curiosity, it feeds our learning and growth, and it enables us to make intelligent decisions in our lives.

Without information, we are just “flying blind” as they say, and couldn’t expect much in terms of personal or professional results for our organizations or ourselves.

So information is critical to improving our decision-making. Information and information technology is how we overcome poor decision-making based on gut, intuition, politics, and subjective management whim—all sure ways to get in a “why did you do that”
pickle!

An interesting article in Defense Systems Magazine (May 2010) called “Getting Inside the Enemy’s Decision Cycle” talks about how the military seeks to disrupt the enemy’s information and decision-making to degrade their war-fighting capability.

“Success in battle is increasingly about making decisions more quickly than your adversary can.”

In the military, the decision cycle is frequently referred to as "OODA Loop"—observe, orient, decide, and attack.

If we can disrupt the enemy’s decision cycle or OODA Loop, we can “decide and act faster than they can.” The result is “I’m going to outmaneuver you” and win!

In short, information translates to decision-making and to action.

- Disrupt that cycle and we are sitting ducks.

- Enhance that cycle and we are stronger for it.

Ultimately, there are lots of important lessons about the criticality of IT to decision-making that comes out of the battlefield:

First, we all need information to survive and thrive.

Second, if we improve information quality and speed of delivery, then the better the decision-making and the impact on and off the battlefield.

This is why information and information technology is truly our competitive advantage and at the heart of our national security.

I believe that this necessitates that we treat IT as not just another budget line item, but rather as a strategic investment.

The vision for IT has always been to bring greater effectiveness and efficiency to the rest of the business and to the mission. Unfortunately, IT has not always lived up to that vision.

Despite some disappointments, we cannot afford to be second-rate in IT, because there will be a negative cascading effect throughout all of our industries and government agencies that rely on information and information technology.

The key for us is to continue investing in technology (wisely), investing in our people (profusely—they are the brains behind the machines), and keep focusing on using IT as an enabler to improve the business and mission of everything else we do.


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April 16, 2010

Breaking Down Organizational Bottlenecks

Improving organizational performance is often grounded in identifying bottlenecks (constraints) and fixing them, so that the firm runs better, faster, cheaper than before and at an advantage to it’s competitors.

Enterprise architecture helps us to locate the bottlenecks through an understanding of our business processes, information flows, and systems and then facilitates our reengineering these though business process improvement and the introduction of new technologies.

Harvard Business School (HBS) put out a working paper in February 2010 called “The Strategic Use of Architectural Knowledge by Entrepreneurial firms,” by Carliss Baldwin that describes how “an entrepreneurial firm can use architectural knowledge to unseat a larger incumbent.”

The premise is that knowledge is a firm’s most critical resource, “including knowledge about how to assemble resources to pursue an opportunity.”

We can architecturally disassemble and assemble our resources and processes whereby we—“isolate the bottlenecks” and then “alleviate the bottlenecks.”

This process is grounded in modularity theory, where we use architectural knowledge to modularize (or breakdown) a complex system into its functional components as well as address how these components are related (through their interfaces).

Once we decompose the firms business, data, and systems into its modular components, we can then “remodularize” (or assemble) them into strategically more effective systems for doing business.

Moreover, the paper suggests that the firm “insources bottleneck components and outsources non-bottleneck components,” so as to focus resources (and innovation) on the trouble spots—the areas that are potentially a source of competitive advantage.

Fixing bottlenecks can produce valuable differentiators for a company that we would not want shared with those outside the organization and made available to competitors.

In my opinion, bottleneck functions can also be outsourced, whereby we decide to “let the experts handle it,” when the functions are not strategic in nature. For example, many companies outsource things like payroll and basic call center functions, and it enable the organization to focus its energy and efforts on its core mission.

The notion that enterprise architecture itself is a strategic differentiator for organizations that know how to wield the architecture knowledge is critically important. Through decomposition and assembly of processes and enabling technologies, we can create stronger organizations that not only reduce bottlenecks, but also drive improved decision-making in terms of what to invest in and how to source those investments.

While many organizations treat architecture as a compliance only mechanism and reap little to no benefits from it, those that understand EA’s strategic significance can use the knowledge gained to their organization’s competitive advantage.


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September 25, 2009

The Window and the Mirror and Enterprise Architecture

I came across some interesting leadership lessons that can be helpful to enterprise architect leaders in the book Good to Great by Jim Collins.

At the most basic level, Collins says that a “level 5” executive or great leader is a “paradoxical blend of personal humility and professional will." “Level 5 leaders channel their ego away from themselves and into the larger goal of building a great company…their ambition is first and foremost for the institution, not themselves.”

Furthermore, level 5 great leaders differ from good leaders in terms of “the window and the mirror.”
  • Great leaders—“look out the window to attribute success to factors outside themselves, [and] when things go poorly, they look in the mirror and blame themselves.”
  • Good (non-great) leaders—“look in the mirror to take credit for success, but out the window to assign blame for disappointing results.”

Interestingly enough, many leaders attributed their company’s success to “good luck” and failures to “bad luck”. Collins writes: “Luck. What an odd factor to talk about. Yet, the good-to-great executives talked a lot about luck in our interviews. This doesn’t sound like Harvard or Yale MBAs talking does it?

Collins comments on this bizarre and repeated reference to luck and states: “We were at first puzzled by this emphasis on good luck. After all, we found no evidence that the good-to-great companies were blessed with more good luck than the comparison companies.”

What puzzles me is not only the lack of attribution for company success to global factors, general market conditions, competitive advantage, talented leadership, great architecture, astute planning, sound governance, great products/services, creative marketing, or amazing employees, but also that there is no mention or recognition in the study of good-to-great leaders in the benevolence from the Almighty G-d, and no apparent gratitude shown for their companies’ success. Instead, it's all about their personal brilliance or general good luck.

Where is G-d in the leaders' calculus for business success?

It seems that the same good-to-great leaders that “look out the window to attribute success to factors outside themselves,” also are looking down at superstitious or “Vegas-style” factors of luck, rather than looking out the window and up to the heavens from where, traditionally speaking, divine will emanates.

Perhaps, there should be a level 6 leader (after the level 5 great leader) that is “truly great” and this is the leader that not only has personal humility and professional will, but also belief in a power much higher than themselves that supersedes “good luck.”

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August 16, 2009

Vision is not a Business Only Matter

At an enterprise architecture conference a number of weeks ago, the audience was asked how many of you see yourself as technology people—about half raised their hands. And then the audience was asked how many see yourselves more as business people—and about half raised their hands. And of course, there were a handful of people that raised their hands as being “other.”

Then the dialogue with the audience of architects proceeded to regardless of whether you consider yourselves more business-oriented or more technology-oriented, either way, enterprise architects must get the vision from the business people in the organization, so the architects can then help the business people to develop the architecture. It was clear that many people felt that we had to wait for the business to know that their vision was and what they wanted, before we could help them fulfill their requirements. Well, this is not how I see it.

From my experience, many business (and technology) people do not have a “definitive vision” or know concretely what they want, especially when it comes to how technology can shape the business. Yes, of course, they do know they have certain gaps or that they want to improve things. But no, they don’t always know or can envision what the answer looks like. They just know that things either aren’t working “right” or competitor so and so is rolling out something new or upgrading system ABC or “there has just got to be a better way" to something.

If we plan to wait for the business to give us a definitive “this is what I want,” I think in many cases, we’ll be waiting a very long time.

The role of the CIO, CTO, as well as enterprise architects and other IT leaders is to work with the business people, to collaboratively figure out what’s wrong, what can be improved, and then provide solutions on how to get there.

Vision is not a business only matter—it is a broad leadership and planning function. IT leaders should not absolve themselves of visioning, strategy, and planning and rely only on the business for this. To the contrary, IT leaders must be an integral part of forging the business vision and must come up with an enabling “technology vision” for the organization. These days, business is more and more reliant on technology for its success, and a business vision without thought and input from the technology perspective would be superficial at best and dead of center at worst.

Moreover, visioning is not an art or a science, but it is both and not everyone is good at it. That is why open communication and collaboration is critical for developing and shaping the vision for where the organization must go.

Early on in my career, in working with my business counterparts, I asked “What are you looking to do and how can I help you?” And my business partner responded, opening my eyes, and said, “You tell me—what do you think we need to do. You lead us and we will follow.”

Wow! That was powerful.

“You tell me.”

“What do you think we need to do.”

“You lead us and we will follow.”

The lesson is simple. We should not and cannot wait for the business. We, together with our operational counterparts, are “the business”. Technology is not some utility anymore, but rather it is one of the major underpinnings of our information society; it is the driving force behind our innovation, the core of our competitive advantage, and our future.


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July 14, 2009

A Call to IT Arms

Recently, I heard a colleague say that we should view IT not as a cost center, but as a resource center—and I really liked that.

In fact, IT is a cost center and a resource center, but these days there is an overemphasis on it being a cost center.

On the negative side, people seem to like to criticize IT and point out the spectacular failures there have been, and in fact, according to Public CIO “a recent study by the Standish Group showed that 82% of all IT project were either failures or were considered challenged.”

This is the dark side of IT that many would like to dwell on.

However, I would argue that while we must constantly improve on IT project delivery, IT failures can be just a point in time on the way to tremendous success and there are many of these IT successes that we benefit from in big and small ways every day.

Moreover, it may take 1000 failures to achieve that one great breakthrough success. That is the nature of innovation and experimentation.

Of course, that does not mean we should do stupid or negligent things that results in failed IT projects—we must do our best to be responsible and professional stewards. But, we should not be afraid to experiment and fail as a healthy part of the creative process.

Thomas Edison said: “I have not failed. I’ve just found 10,000 ways that won’t work.”

So why are we obsessed with IT failures these days?

Before the dot com bust, when technology was all the rave, and we enjoyed the bounty of new technologies like the computer, cell phones, handhelds, electronics galore, the Internet and all the email, productivity software and e-commerce and business applications you could ask for, the mindset was “technology is the engine that drives business.” And in fact, many companies were even changing their names to have “.com” in them to reflect this. The thinking was that if you didn’t realize the power and game-changing nature of technology, you could just as well plan to be out of business in the near future. The technologies that came out of those years were amazing and you and I rely on these every day.

Then after the dot-com burst, the pendulum swung the other way—big time! IT became an over zealous function, that was viewed as unstructured and rampant, with runaway costs that had to be contained. People were disappointed with the perceived broken promises and failed projects that IT caused, and IT people were pejoratively labeled geeks or techies and viewed as being outside the norm—sort of the societal flunkies who started businesses out of home garages. People found IT projects failures were everywhere. The corporate mindset changed to “business drives technology.”

Now, I agree that business drives technology in terms of requirements coming from the business and technology providing solutions to it and enabling it. But technology is also an engine for growth, a value creator, and a competitive advantage!

Further, while some would argue these days that IT is “just a tool”, I would counter that IT is a true strategic asset to those who understand its role in the enterprise. I love IT and I believe we all do and this is supported by the fact that we have become basically insatiable for IT. Forrester predicts U.S. IT budgets in 2009 will be in the vicinity of $750 billion. (http://it.tmcnet.com/topics/it/articles/59200-it-market-us-decline-51-percent-2009-researchers.htm) Think about what you want for the holidays—does it have IT in it?

A recent article in the Wall Street Journal was about how the homeless are so tied to technology that many have a computer with Internet access, even when they don’t have three square meals a day or a proper home to live in.

Another sign of how critical IT has become is that we recently stood up a new Cyber Command to protect our defense IT establishment. We are reliant indeed on our information technology and we had better be prepared to protect and defend it.

The recent White House 2009 Cyberspace Policy Review states: “The globally-interconnected digital information and communications infrastructure known as “cyberspace” underpins almost every facet of modern society and provides critical support for the U.S. economy, civil infrastructure, public safety, and national security.”

It's time for the pendulum to swing back in the other direction and to view IT as the true strategic asset that it is.


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