Synchronizing and IT in support of innovation Glen Garner ITS Executive Communications Sector IBM Global Services, Asia Pacific Ho Chi Minh, Vietnam October 5-8, 2005
Agenda for Innovation Where do we start - How do we approach complexity? Synchronise and IT change Use of a structured approach Componentising using structured models Taking this down to the IT level 2
Competitive Weapons 1975 1940 1990 2000 Manufacturing Efficiency Efficiency Quality Flexibility Innovation Market share Lowest cost Defect rate Customer satisfaction Time to market Customer responsiveness New product rate New customer rate Innovation will will define the the great companies of of the the 21st century 3
Great change can have great benefit: Small incremental steps are safe but: They can eat up a lot of management time They are easy for the competition to duplicate A more radical approach, encompassing a greater scope has a greater chance of providing differential Providing adequate analysis and investment in the strategy can reduce risks Analysis requires a structured approach Radical Changes Significant Changes Modest Change Local Group More radical Unit / Dept Greater returns More impacting Whole Company 4
QUESTION: How do you eat a Chocolate elephant? ANSWER: Bite by bite! Any complex system needs to be broken down to its constituents 1. Helps understand the maturity / capability of each component 2. Incorporate prioritisation techniques to know what needs work Assist consensus Quickly sorts many ideas to the significant few 3. Understand how each component contributes the business 5
This is nothing new - how to improve - structured processes of evaluation and assessment have been used successfully for 6many years: 6
What sort of mechanism can we use to decompose business and then IT? 1990 2000 Flexibility Innovation IT Service Reference Model 7
To allow comprehensive analysis, the reference model should also be able to be viewed from a few perspectives: Service Activities / Competencies IT Service Reference Model Processes Skills / Time Horizons People Technology 8
The reference model should also be able to be broken down into process / FTE s / Tools: Service 2 Service 3 Service 1 Service 4 IT Service Reference Model Process Model IT Organisation / Function Model IT Mgmt Tools 9
Activities for the Service Reference Model - the first break down, at the highest level, is into three basic TECHINCAL COMPETENCIES Plan and Manage, Build, and Run Plan and Manage Build Run IT Service Reference Model Activities / Competencies 10
Time Horizons for the Service Reference Model work is performed by resources with different levels of accountability, each with different MANAGEMENT SKILLS Plan and Manage Build Run IT Service Reference Model Skills / Time Horizons Tactics 11
Our Component Model for the of IT, combining these aspects CBM-BoIT IT Customer Relationship Plan and Manage Build Run IT Resilience Information and Knowledge Service and Solution Service and Solution Deployment Service Delivery and Support Tactics Directing Controlling Executing Enablement Service & Solution Performance Demand Communications Performance IT Services and Solution Marketing Technology Enterprise Portfolio Technology Innovation Financial Technology Performance & Value Human Resources IT Financial Staff Administration & Supplier and Contract Administration Resilience Regulatory Compliance Integrated Risk Continuous Regulatory Compliance Integrated Risk Security, Privacy & Data Protection Resilience Remediation Regulatory Compliance Remediation Information Knowledge Information Information Resource Knowledge Resource Data and Content Knowledge Capture And Availability Services and Solutions Lifecycle Services and Solutions Service and Solution Creation Service and Solution Maintenance Deployment Change Release Change Implementation Release Implementation Services Delivery IT Support Infrastructure Resource Support Services Support Services Infrastructure Resource Infrastructure 12
Look to analyze IT from a number of dimensions so it becomes very clear what; how; and when (urgency): Value of IT (CUPE: Commodity, Utility, Partner, Enabler) The key with the IT complexity is to triangulate the impact of these multiple influencers Component Map for the of IT Any model such as this should identify your improvement opportunities based on the organizations strategic imperatives IT Customer Relationship IT Resilience Information and Knowledge Service and Solution Service and Solution Deployment Service Delivery and Support Direct C111 Enablement Service & Solution C211 Technology C212 Enterprise C213 Portfolio C214 Technology Innovation C311 Resilience C312 Regulatory Compliance C313 Integrated Risk C411 Information C412 Knowledge C511 C611 Deployment C711 Services Delivery C712 IT Support Costs Control C121 Performance C122 Demand C123 Communications C221 Financial C222 Technology Performance & Value C223 Human Resources C321Continuous C322 Regulatory Compliance C323 Integrated Risk C324 Security, Privacy & Data Protection C421 Information C422 Information Resource C423 Knowledge Resource C521 Services and Solutions Lifecycle C522 Services and Solutions C621 Change C622 Release C721 C722 Infrastructure Resource C723 Support Services Effectiveness Execute C131 Performance C132 IT Services and Solution Marketing C231 C331 IT Financial Resilience C232 Staff Administration & C332 C233 Regulatory Supplier and Compliance Contract Remediation Administration C431 Data and Content C432 Knowledge Capture And Availability C531 Service and Solution Creation C532 Service and Solution Maintenance C631 Change Implementation C632 Release Implementation C731 Support Services C732 Infrastructure Resource C733 Infrastructure Differentiation 13
How quick can (should) This be? Using this 14 type of structure in a one day workshop can provide total clarity and consensus to enable focus for change: Exclude Based on Var? Exclude Based on Va 9 1.035 N 13 13 7 0.835 N Max Var Max Var Overall Assessment Interaction - Integrated View Effectiveness Radar IT Customer Relationship IT Resilience Information and Knowledge Service and Solution Service and Solution Deployment Service Delivery and Support DND Radar Blue Red Blue Red Blue Blue Red C111 - Enablement Service & Solution C211 - Technology C311 - Resilience C411 - Information C511 - C611 - Deployment C711 - Services Delivery Blue Blue Blue Blue Blue Red Red Red Red Blue Blue Direct C212 - Enterprise C213 - Portfolio C214 - Technology Innovation C312 - Regulatory Compliance C313 - Integrated Risk C412 - Knowledge C712 - IT Support Blue Blue Blue Blue Blue Blue Blue Blue Blue Blue C121 - Performance Blue Red Blue Red Red C122 - Demand Red Blue Red Blue Control C123 - Communications C221 - Financial C222 - Technology Performance & Value C223 - Human Resources C321 - Continuous C322 - Regulatory Compliance C323 - Integrated Risk C421 - Information C422 - Information Resource C423 - Knowledge Resource C521 - Services and Solutions Lifecycle C522 - Services and Solutions C621 - Change C622 - Release C721 - C722 - Infrastructure Resource C723 - Support Services Blue Blue Red Blue Blue Red Red Blue Red Blue Blue Red Red C324 - Security, Privacy and Data Protection Blue Blue C131 - Process Performance C231 - IT Financial C331 - Resilience C431 - Data and Content C531 - Service and Solution Creation C631 - Change Implementation C731 - Support Services Red Blue Blue Red Red Blue Blue Blue Blue Red Execute C132 - IT Service & Solution Marketing C232 - Staff Administration & C233 - Supplier and Contract Administration C332 - Regulatory Compliance Remediation C432 - Knowledge Capture and Availability C532 - Service and Solution Maintenance C632 - Release Implementation C732 - Infrastructure Resource C733 - Infrastructure Blue Blue Blue Red Blue Red Red Red 13 14 Low High Action Components -> Priority Based On: Standard 11 Results Detail for -> C231 13 Not Diff 15 Diff 14 13 14
Blue Red Blue Red Blue Blue Red Red Red Red Red Blue Blue Blue Blue Blue Blue Blue Blue Red Blue Red Blue Blue Blue Blue Blue Blue Blue Red Blue Blue Blue Blue Blue Blue Blue Blue Blue Blue Blue Red Blue Blue Red Red Blue Red Blue Blue Red Red Red Blue Blue Red Red Blue Blue Blue Red Blue Red Red Red Component Modelling of and IT are excellent demonstrations of the value of detailed analysis as starting point for innovation: Exclude Based on Var? Exclude Based on Va 1.035 0.835 9 N 13 13 7 N Max Var Max Var Overall Assessment Interaction - Integrated View Effectiveness Radar IT Customer Relationship IT Resilience Information and Knowledge Service and Solution Service and Solution Deployment Service Delivery and Support DND Radar C111 - Enablement C211 - C311 - Resilience Service & Solution Technology C411 - Information C511 - C611 - Deployment C711 - Services Delivery Direct C212 - Enterprise C312 - Regulatory C412 - Knowledge C712 - IT Support Compliance C213 - Portfolio C313 - Integrated Risk C214 - Technology Innovation C521 - Services and C121 - C221 - Financial C321 - Continuous C421 - Information C721 - Solutions Lifecycle C621 - Change Performance C222 - C322 - Regulatory C422 - Information Resource C522 - Services and C722 - Infrastructure Blue Red Blue Red Red C122 - Demand Technology Performance C622 - Release Compliance Solutions Resource & Value Control Execute C123 - Communications C223 - Human Resources C323 - Integrated Risk C423 - Knowledge Resource C723 - Support Services C324 - Security, Privacy and Data Protection C131 - Process C231 - IT Financial C431 - Data and Content C531 - Service and C631 - Change C731 - Support Services C331 - Resilience Performance Solution Creation Implementation C232 - Staff C132 - IT Service & Solution C332 - Regulatory C432 - Knowledge Capture C532 - Service and C632 - Release C732 - Infrastructure Administration & Marketing Compliance Remediation and Availability Solution Maintenance Implementation Resource C233 - Supplier and Contract Administration Action Components -> 13 14 Low High Priority Based On: Standard C733 - Infrastructure 11 Results Detail for -> C231 14 13 13 Not Diff 115 Diff Speed / cycle time Outpace your competition Options / Alternatives Do what matters Establishing directions and priorities so that you put effort into what makes a significant difference 2 Divesting and acquisition Reengineering / outsourcing Innovation and benchmarking 15
Thank you.. Technology adoption Innovation Competitive advantage People, processes and technology Differentiation Exploitation 16