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The first of a series of workshops delivered jointly with Newcastle University Business School
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Competing with IT- breaking through to enable business innovation
Colin AshurstAlison Freer15th March 2013
Creating value for stakeholders by exploiting ongoing innovation in IS / IT
Connecting the first PC to the internet
19..?
7
8
9
10
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13
What opportunities will current innovations in IS/IT provide organisations?
Where next?
The problem… high failure rate
Huge spend on IT– “The UK public sector alone has spent an estimated £12.4 billion on
software in the last year and the overall UK spend on IT is projected to be a monumental £22.6 billion,”
High failure rate of IT projects
– “We looked at a range of studies showing that only around 16 per cent of IT projects can be considered truly successful.”
– “Billions of pounds are wasted every year on new IT systems”…..British Computer Society report The Challenges of Complex IT Projects – 22 April 2004
Its not just the public sector!
The major gains come from “doing the right things.”
IT & Change PortfolioStrategic
may be important
in achieving future
success
critical to existing
business operations
valuable but
not critical to
success
critical to
achieving strategic
objectives
Core Operations Support
Exploratory
Based on McFarlan 1981
Improving the current business
Transformational change / doing new things
Driving forces
20CORE OPERATIONSCORE OPERATIONS
Improved performance ofexisting activities (effectiveness)
Integration/rationalisation tospeed up business processes
Industry Legislation
STRATEGIC
Perceived marketrequirements
Competitive pressures
Achievebusiness changes
Innovative business idea
New technologyopportunity
Create change
Cost reduction and
efficiency improvements
through automation
General Legislation
SUPPORT
EXPLORATORY
Strategic
C
D
IH
AJ
B
G
K
L
M E
F
Setting PrioritiesExploratory
Core Operations Support
Size of circle represents use of resources on applications A - M.Diagram could show:• Money or people• Development or Maintenance or both• Current system, work in progress (ie a current project) or possible future
project
Innovation Debate
• What are the challenges to successful innovation in your organisation?
• Examples of good practice?
Case Studies
How do we maximise our R&D Investment?
•Global business
•Multiple suppliers with expertise
•High competition
•Time critical
How do we maximise our R&D expertise?
• Entrepreneurial leader• Innovation Days• Won over hearts & minds • ‘Open Innovation’ campaign with suppliers =
90 new ideas
How do we turn data into Information?
• NHS organisation• 115 days to transfer patient activity data into
management reports• Slow, cumbersome planning
How do we invoice accurately?
• Global IT services business – 90,000+ staff• Push to maximise cost efficiency• Multiple teams, locations and time-zones
How do we invoice accurately?
• Used ‘Ideation’ as “21st Century Suggestion Scheme”
• 3000 staff contributed to a 6 week Ideation event
• Ideas adopted yielded $64M increase in cash-flow
eLearning case study
The university has a core eLearning system used by 90% of its 20,000 students. It is reliable and effective. However it looks dated and does not provide Web 2.0 features.
A professor in Computer Science has developed a new eLearning system. Usage is gradually growing in other departments. It looks up to date and it has some clear functional advantages over the core university system. The system is hosted on a server under the professors desk. It is becoming unreliable and no one other than the professor can provide support.
Action:Use the IT & Change portfolio to assess the current situation and develop options for action
Successful Innovation Engages the Crowd
Successful Innovation Requires a Toolkit
Successful Innovation is Enabled by IT
• IT & Business strategies aligned
• Open Innovation Platforms
• Scope for exploration & experimentation
Successful Innovation has Clear Sponsorship
• Idea Portfolio Manager• Global Head of Collective
Intelligence• Chief Growth Officer• Chief Innovation Officer• Chief Inspiration Officer• Chief Imagination Officer• Chief Detonator• Chief Lizard Wrangler
Successful Innovation Requires Diversity
•Demographics•Personalities•Experience•Cultures•Sectors•Life
Successful Innovation Requires IT Leadership
• Envisioning Future Trends
• Experimentation
• Engaging with users
• Embedded in strategy
• Empowered IT Teams
$$
$
R & D project toexplore potentialvalue and cost
- fund from R & Dbudget
Risk money.
Enable theachievement of
business objectivesvia explicit
CriticalSuccessFactors
Net costreduction through
quantifiedsavings
$
Disadvantage / Riskif it is not done
(Critical Failure Factors)& / or
quantifiedperformanceimprovement
$ extent to which benefits can be justified financially
Investment justification
SUPPORTCORE OPERATIONS
EXPLORATORYSTRATEGIC
The benefits ‘toolkit’ – linking theory and practice
Bridging the knowing-doing gap: building the business transformation capability
IT Strategic Management
Leadership & Development
Evolving Transformation
Capability
Knowledge into action
Transformation toolkit
Learning by doing
Individuals & teams using the toolkit to contribute to benefits
realization
Shared language / mindset: focus on benefits &
transformation
How would you approach a xxxx1 project….
• Consider:– Lifecycle: stages / deliverables / milestones– Role of sponsor– Style / skills of project manager– Resourcing– Approach to budget / timescales– Attitude to risk– Use of package software– ‘Agility’
xxxx1 – can be Strategic / Exploratory/ Core Operations / Support
Your project…
• Where does it fit on the investment portfolio?
• What are the implications for how you sell the project?• What are the implications of the portfolio for the
management of the project?• How appropriate is the current management framework for
the project?
What examples of good practice for portfolio management can you share?
How has the practice contributed to improved realization of benefits from your portfolio?
How can you use the portfolio to build engagement with colleagues and build the capability of your organization to realize benefits from IT?
Using the portfolio….
• Setting priorities• Strategic alignment• Investment justification• Project strategy• Governance• Resourcing / sourcing
Common language