The CIOs Role in Enabling Organizational Agility

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The CIOs Role in Enabling Organizational Agility

• Highlights of SIMs Advanced Practices Council
  Research Findings
• Madeline Weiss, APC Program Director
• November 13, 2006

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Capturing Merger Benefits at CVS
"Instead of taking until mid-year 2005 to get all
these stores converted and to start realizing
benefits from our merchandising schemes and
plans, we started doing it in mid-November.
That's huge that's what IS enables. It enables
the business to step in. The next phase is
introducing our merchandising mix, layout and
strategy. It can be done because the
infrastructure is complete."
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Disruptive Innovation at Cemex
Transition from product selling (cement) to
solution selling (ready-to-pour-concrete)
Global Digital enables tracking of orders and
payments
Cement trucks can deliver orders in a 20 minute
window
Customer
Dynamic Synchronization of operations controls
plant production, tracks vehicle movements, and
automatically optimizes order fulfillment
Customers have the flexibility to change orders
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Researchers

• Assessing Enterprise Architecture Outcomes
  (Jeanne Ross, Center for Information Systems
  Research at MIT)
• Building Knowledge Assets from Light Knowledge
  with Wikis (Ann Majchrzak, University of Southern
  California, Christian Wagner, City University of
  Hong Kong)
• Deploying Far-Flung Teams A Guidebook for
  Managers (Ann Majchrzak, University of Southern
  California, Arvind Malhotra, University of North
  Carolina)
• Driving Value from I/T Investigating Senior
  Executives Perspectives (William Kettinger,
  University of South Carolina, Donald Marchand,
  IMD International)
• Strategic Agility (Anandhi Bharadwaj, Emory
  University, V. Sambamurthy, Michigan State
  University)

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Thought Leaders

• How Top Performing Firms Govern IT (Peter Weill,
  Center for Information Systems Research at MIT)
• Riding the Waves Emerging Technologies (John
  Henderson and N. Venkatraman, Boston University)

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Strategic Agility
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What is Agility?

• Anticipate or sense opportunities and threats
• Assemble needed assets and capabilities
• Judge risks and benefits of initiating action
• Initiate action rapidly
• Capture learning from experience and apply it to
  future actions

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Strategic Agility Behaviors
Action
Lead
Respond
Anticipate
Resiliency
Disruption
Adaptive Agility
Strategy Formulation
Entrepreneurial Agility
Opportunism
Flexibility
Sense
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Portfolio Approach to Agility

• Entrepreneurial agility
• Strategic experiments
• Shaping business options

• Adaptive agility
• Operational innovation
• Offensive and defensive competitive moves

• Alignment
• Leverage current business model
• World class execution

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First, Get the Basics of Alignment Right

• World-class IT execution a trusted service that
  functions well delivering projects on time and
  within budget
• The right people good problem solvers,
  listeners, learners, communicators, empathizers,
  leaders and managers grounded in the business
• Excellent working relationships - with business
  partners across the enterprise
• Enterprise IT architecture and governance - that
  support the business model

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Enhance Agility By

• Evolving enterprise IT architecture to a new
  stage
• Increasing use of collaboration tools and
  practices
• Enhancing culture of experimentation and learning
  

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Enhance Agility By

• Evolving enterprise IT architecture to a new
  stage
• Increasing use of collaboration tools and
  practices
• Enhancing culture of experimentation and learning
  

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Evolving Architecture
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Enterprise Architecture

• The organizing logic for a firms core
  business processes and IT capabilities captured
  in a set of principles, policies and technical
  choices to achieve the business standardization
  and integration requirements of the firms
  operating model.

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Deltas View of Enterprise Architecture
Source Adapted from Delta Air Lines documents
used with permission
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ING Directs View of Enterprise Architecture
External Services
Reports Local/HQ/Tax
Prospect Fulfillment
Statement Fulfillment
Payments
Checks
Customer Relationship Services
Core Banking Services
CRM
Mutual Funds
Brokerage
CIF
Contact History
Product Info
Banking Engine
Credit Score
Common Business Services
Services
Transactions
Customers
Products
Channel Services
Gateway server
IVR/CTI server
Imaging server
E-mail server
Web server
Customer Contact Call Center, IVR, E-mail,
Direct mail
Self-Service Internet, MinTel, ATM, WAP, (WebTV)
Services not implemented In all countries
Source Robertson, D. ING Direct The IT
Challenge (B), 2003, IMD-3-1345. Used with
permission
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Architecture Maturity Stages
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Evolving Management Practices
Business cases Project methodology Program
managers
Architects on project teams IT Steering
committee Architecture exception process Formal
compliance process Infrastructure
renewal process Centralized funding of
enterprise applications
Process owners Enterprise architecture guiding
principles Business leadership of project
teams Senior executive oversight
Enterprise architecture graphic Post-implementati
on assessment Technology research and adoption
process
Architecture Maturity
Asterisked items are statistically significantly
related to architecture maturitythey are
associated with greater value in later stages.
Adapted from Ross, J.W., Creating a Strategic
IT Architecture Competency Learning in Stages,
MISQ Executive (21), March 2003, pp 31-43.
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Architecture Management Practices

• Architecture Planning and Design
• Senior business executive oversight
• Enterprise architecture guiding principles
• One-page high-level graphic
• Enterprise level process owners
• Enterprise architecture team

• IT Funding
• Business cases for IT investment
• Centralized funding of enterprise apps
• Annual infrastructure renewal
• IT steering Committee

• Project Management
• Standardized project methodology
• Post-implementation assessment
• IT program managers
• Business leadership of project teams

• Standard Technology Environment
• Architects on project teams
• Centralized standards team
• Formal research and adoption process
• Architecture exception process
• Compliance process

Management practices within each practice set are
statistically significantly correlated with each
other.
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Management Practices Support Desired Outcomes
ALL management practices are significantly
correlated with ALL benefits. Asterisks identify
the management practices best predicting the
benefit.
1Unit operating costs and application maintenance
costs 4Data and process standardization 2Developme
nt time and percentage of projects on-time,
on-budget 5 Strategic effectivenessmeasured as
strategic outcomes 3Business risk, security
breaches, disaster tolerance and (operational
excellence, customer intimacy, product
innovation, and regulatory compliance strategic
agility) weighted by their relative importance to
each firm.
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Key Findings on Enterprise Architecture

• Enterprise architecture enables and constrains
  business strategyEA defines the essence of a
  firms operating model by clarifying integration
  and standardization requirements. This creates a
  stable platform for responding to market changes.
• Maturity mattersDifferent stages support
  different operating models. Greater maturity is
  related to greater strategic value and
  profitability.
• It does not pay to skip stagesGenerating value
  from architecture investments is a learning
  process. Aggressive investment in IT architecture
  can be slow to generate a return.
• Learning is captured in management and governance
  practicesManagement requirements are more
  complex in later stages.
• There is no substitute for strong senior
  management leadershipFirms getting strategic
  business benefits from architecture have senior
  business leaders who are actively involved in
  architecture design, management, and
  implementation.

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Enhance Agility by

• Evolving enterprise IT architecture to a new
  stage
• Increasing use of collaboration tools and
  practices
• Enhancing culture of experimentation and learning

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Far-Flung Teams
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Far-Flung Teams

• Teams spread across the globe, working
  collaboratively to innovate, with minimal or no
  face-to-face interaction
• Challenges
• Communications
• Culture
• Time zones
• Tasks

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Far-Flung Teams Supporting Agility

• Testing new products in local markets and then
  formulating global marketing plan for products
• Designing thrust chamber for new rocket engine
• Ensuring flawless email infrastructure on first
  day of merged company operations
• Integrating processes and procedures during
  merger
• Integrating information infrastructures during
  merger

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Deploying Far-Flung Teams Guidebook

• Creating Supportive Business Environment
• Supporting Knowledge Exchange
• Integrating Technology into the Way Work is Done

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Deploying Far-Flung Teams Guidebook

• Creating Supportive Business Environment
• Deploy full-time team leaders
• Appraise team members on contributions to the FFT
• Reward team member contribution to enterprises
  intellectual capital equal to task accomplishment
• Discourage travel
• Encourage use of collaborative technologies

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Deploying Far-Flung Teams Guidebook

• Supporting Knowledge Exchange
• Pick the right people
• Motivate members for intellectual growth
• Foster understanding of differences to leverage
  them
• Establish collaboration norms and procedures
• Hold regular audio conferences
• Hold periodic face-to-face team tuning meetings

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Deploying Far-Flung Teams Guidebook

• Integrating Technology into the Way Work is Done
• Less than 30 of teams used any form of video
  conferencing
• Instead, FFTs used a combination of
• Instant messaging
• Audio conferencing
• Repository for content capture and display

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Wikis An Emerging Collaborative Technology
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Wikis and the Wiki Way

• Wiki
• Technology to write and maintain web pages
  collaboratively fast, simple, immediate, where
  knowledge can be added or corrected by anyone
• Wiki Way
• Norms for wiki design and collaborative wiki
  content creation open, organic, observable,
  convergent

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Wikis Supporting Agility

• Two business groups from separate product lines
  combined to integrate the product lines
• Competition tracking (with RSS feeds)
• Project management on fast-track project
• Community of customers and staff
• Collaboration with software vendor and another
  user
• Ethnic marketers collaborating across consumer
  goods product lines

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• The teleconference used to be 1 ½ hours, with
  much time wasted on bringing people up to speed
  on the weeks events. Now team members update
  themselves on the wiki, and that part of the
  teleconference takes 5 to 10 minutes. The rest
  of the teleconference is used for idea
  generation, being innovative, talking about
  problems and looking at solutions, which is what
  the meeting should be about
• Diben Jobanputra
• Dresdner Kleinwort Wassersteing
• (wiki user since 1997)

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Novell Internal Wiki

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Windriver Intranet

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IBMs Customer Facing ETTK Wiki

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• Wikis will become mainstream collaboration
  tools in at least 50 of companies by 2009.
• Gartner Group, June 2005

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Creating Wiki Sustainability

• Initiation Steering People to the Wiki
• Champions mantra Its on the wiki
• Use viral marketing techniques
• Promoting Active Participation
• Drive content creation Please do this on the
  wiki
• Nudge participants for small contributions
• Keep wiki simple (wabi sabi the beauty of
  imperfection)
• Establish procedures for keeping content
  up-to-date
• Provide good search tools

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Creating Wiki Sustainability

• Establishing Wiki Culture
• Encourage people to change the work of others and
  shape the wiki
• Reward collaboration
• Steady State
• Champions with business knowledge, wiki knowledge
  (technology and the wiki way), organizational
  influence are crucial
• Difference of opinion on amount of structure to
  impose

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Checklist for Successful Wiki Initiation

• Does the wiki participation model fit with
  corporate culture (i.e., less hierarchical/ more
  collaborative, merit based)?
• Is there a wiki champion who understands wiki
  technology and the wiki way, and has the
  organizational knowledge and standing to engage
  others, and to shape the collective knowledge
  contributions?
• Does the organization (wiki team) have guidelines
  or a shared understanding to protect wiki based
  intellectual property?
• Has a wiki software been chosen that incorporates
  access rights management and task structuring?
• Does each wiki have someone who appears to be
  shaping the contributions?
• Is the nature of the wiki supported task such
  that participants with personal, efficiency
  driven interests can benefit from wiki
  participation?
• Is the wiki team of sufficient size to ensure
  both reading and writing?
• Do you have plans in place to phase in the wiki,
  steer participants to the wiki, create active
  participation, create wiki culture, and maintain
  steady state?

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Enhance Agility By

• Evolving enterprise IT architecture to a new
  stage
• Increasing use of collaboration tools and
  practices
• Enhancing culture of experimentation and learning
  

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Enhancing Culture of Experimentation and Learning

• The ability to learn faster than your
  competitors may be the only sustainable
  competitive advantage.
• Arie de Geus (Royal
• Dutch/Shell Group)

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Enhance Your Culture of Experimentation and
Learning

• Invite forecasters and futurists to speak at
  meetings
• Set up strategic experiments and learn from them
• Hold before and after action reviews
• Encourage IT staff to take business positions and
  vice versa
• Give significant monetary awards for outstanding
  ideas that are implemented make the awards
  public
• Use wikis to encourage knowledge capture and a
  culture of commenting on others work

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Enhance Your Culture of Experimentation and
Learning

• Which of these elements of culture exist in your
  organization?
• Staff encouraged to post wild, ambitious ideas on
  the Intranet and solicit peer feedback.
• Eight brainstorming sessions per year where the
  best six ideas are presented. If an idea is
  vetted, the idea generator must attract a team to
  work on it.
• 70/20/10 rule.
• Interior hallways in which staff can scribble
  random thoughts on large whiteboards strung
  together.
• Tech talks with well-known people invited to
  speak.
• Executive message If youre not failing enough,
  youre not trying hard enough.

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Enhance Agility By

• Evolving enterprise IT architecture
• Increasing use of collaboration tools and
  practices
• Enhancing culture of experimentation and learning
  
• ???

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• SIM
• Advanced Practices Council
• Pushing the Frontiers of IT Management
• CIO Driven Research
• Relevant Thought Leadership
• Member Sharing
• Networking
• Madeline Weiss, Program Director
  (madeline.weiss_at_verizon.net)
• Blake Ives, Research Director (bives_at_mac.com)

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www.simnet.org
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Recent APC Research Projects

• Unleashing the Power of Enterprise Value Nets
• Network and Industry Transformation
• Assessing IT Architecture Outcomes
• How to Drive Value from IT Senior Executives
  Perspectives
• Identity Management for Business Value
• Advanced Practices in IT Structure and Governance
• Deploying Far-Flung Teams A Guidebook for
  Managers
• Transformation of the Enterprise through
  eBusiness
• Future Architectures
• Strategic Agility
• Disruptive Technologies
• Inter-organizational IT Change Management
• Benefits and Risks of Open Source
• Creating Knowledge Assets Using the Wiki Way