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SCSTEE0505Copyright 2011 Axel
Vanhooren / TEE
The Conceptual (R)Evolution
in IT v1.01 beta
The next quantum leap in the evolution of IT may well be conceptual and not technological. When it will happen, we don’t know. But this evolution is logical and very beneficial. Signs are already there. We have to change our beliefs about IT.
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Axel Vanhooren
TAURUS ENTERPRISE ENGINEERING BVBA
: www.taurus-ee.com: [email protected]: http://be.linkedin.com/in/axelvanhooren Copyright © 2011 TAURUS ENTERPRISE ENGINEERING BVBA
18-04-23
Common Approach Matching Company’s Needs?
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APPROACH (more oriented to/ suitable for local solutions)
APPROACH (more oriented to/ suitable for local solutions)
Result: various local solutions
(software applications,
technologies,..)
Result: various local solutions
(software applications,
technologies,..)
Thinking about their integration and integrating.
Thinking about their integration and integrating.
Final Result: individual
solutions that are ‘integrated’
Final Result: individual
solutions that are ‘integrated’
If NO MATCHING
No Alignment.Review ApproachReview the Beliefs and Assumptions
General Picture of Common Approach in Conception and Building of IT Solution
Beliefs, assumptions oriented to issues, needs, demand, reactive approach, local, focussing on technologies and user requirements, ...
Beliefs, assumptions oriented to issues, needs, demand, reactive approach, local, focussing on technologies and user requirements, ...
MATCHING
Needs / Issues
Needs / Issues
Organisational settingOrganisational setting
COMPANY’S REAL NEED : a well-organised, consistent, homogeneous (to some extent), modular, flexible enterprise-wide
information solution with characteristics that corresponds to the companies informational
needs today and in the future.
COMPANY’S REAL NEED : a well-organised, consistent, homogeneous (to some extent), modular, flexible enterprise-wide
information solution with characteristics that corresponds to the companies informational
needs today and in the future.
INFLUENCES
The Gap in the Level of Thinking
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Notes: Picture above are approximations. It’s a matter of weight.Company’s needs Business needs User’s needsCompany’s needs + Business needs + User’s needs ± all the needs?
Company LevelCompany Level
User’s levelUser’s level
Users Group levelUsers Group level
Business levelBusiness level
Level of Information Systems(cross-functional processes, information shared across the company, connected information systems Enterprise-wide)
Assumptions, beliefs, responsibilities, approach, organisational setting, .. are more suitable to this level.
GAP 1
Focus on Technologies
Focus on Technologies
Focus on Conceptual Level
Focus on Conceptual Level
GAP 2
GAP
FOCUS TODAY
FOCUS SHIFT
The “Conceptual Move”
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Company LevelCompany Level
Business levelBusiness level
Users Group levelUsers Group level
User’s levelUser’s level
Conceptual, Information,Capabilities
Conceptual, Information,Capabilities
TechnologyTechnology
Abstract, holistic, long term, multi-disciplinary, systemic, methodical,
..
Short term, operational, concrete, action, present, ..
SCSTEE0505Copyright 2011 Axel
Vanhooren / TEE
The Conceptual IT (R)Evolution
The Paradigm ShiftFROM TO
• problem & need-driven IT purpose, objective, opportunity & value-driven IT• focus on technology focus on information
information concepts informational capabilities
• developing software & conceiving a part of the company’s body building solutions
• a user’s (group) perspective enterprise’s perspective• acquisition inventing (innovation)• demand-driven approach investigation-driven approach• reactive approach anticipative, planned, multidisciplinary and
holistic approach• ...
Leading to increased quality, flexibility, efficiency, manageability, ...
The Paradigm ShiftFROM TO
• problem & need-driven IT purpose, objective, opportunity & value-driven IT• focus on technology focus on information
information concepts informational capabilities
• developing software & conceiving a part of the company’s body building solutions
• a user’s (group) perspective enterprise’s perspective• acquisition inventing (innovation)• demand-driven approach investigation-driven approach• reactive approach anticipative, planned, multidisciplinary and
holistic approach• ...
Leading to increased quality, flexibility, efficiency, manageability, ... 5
This evolution requires a change of our underlying beliefs. A brief overview of a few beliefs. (more later)
Signs of the Evolution
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There is a shift of the focus
For a long time, one of the main activities in IT was to develop business application software. This software aimed to solve specific issues and user’s needs and to facilitate the activities of a users group.
To solve problems, we easily tend to acquire a technology or a software. During the implementation the technological skills have always been considered as critical.
Recently, EUP, BPM (& BPMN), SOA, COBiT, IIBA’s BABOK, Enterprise Architecture (Zachman, TOGAF, ..) and Business-IT Alignment got a lot of attention. The focus is slowly shifting to conceptual aspects, to organisational matters and to integration. It is also shifting to the level of the enterprise, to more fundamental aspects and to the longer term.
As this shift occurs, our beliefs, our objectives, our organisation, our approaches and our methods should evolve together.
This evolution is logical and beneficial. It won’t stop.
We can consciously embrace it.
This evolution is logical and beneficial. It won’t stop.
We can consciously embrace it.
NOTE: (PowerPoint) You can find additional comments in the note pane below the slide!!
How important is IT ?
• Information is a vital resource of the company/organisation.
• IT is an essential component of the company.
It must be considered earnestly. Improvements can pay off.
It must be considered earnestly. Improvements can pay off.
Importance of IT
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Accordingly to the Chaos reports of the Standish Group, many IT projects still fail.
Presentation’s Content
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Paradigm Shift (brief overview) Signs of the Evolution Importance of IT Presentation’s Content THE PRESENT: Analysis of IT in the Present
• IT’s Mission• The Common Process of Software Development• Acquisition of Tools and Competencies• Questioning the Present• Typical Tactics To Improve the Results
Evaluation of the Typical Approach• Common Steps in the Typical Process• Assumptions• Weaknesses of the Typical Process
• Detection of needs and issues• Solution and problem solving process• Approach• Project Drivers and Success
• Conclusion of the Evaluation
Some slides have notes in the note pane below
(or cfr note pages).
Some slides have notes in the note pane below
(or cfr note pages).
Presentation’s Content
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THE FUTURE: IT’s Role • What is IT About? (matter)• Information Environment, Information Capabilities,
Information Activities, Information Concepts• IT’s REAL Mission• What is IT About? (competencies)
THE SHIFTS : Comparison Between Old & New Paradigms Differences in Beliefs
• Mission• Product• Value – Competitive Advantage
• Information• Information Concepts• Information Capabilities
• Perspective• Approach• Client• Business – IT Relation• Projects
Conclusion
> THE PRESENT <
Analysisof IT
in the PRESENT
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Practically, the typical mission of IT can be described as :
1. Implementing a technological infrastructure (servers; network, OS, middleware, tools, software platforms,..)
2. Developing software applications
3. Implementing security solutions for information
4. Maintain and managing this infrastructure and the business software applications
5. Offering additional services related to the software applications, software platforms and IT infrastructure
6. ...
IT people are dealing most of the time with technologies. Technology makes the solutions concrete and visible. IT is commonly considered as a technological domain. The main perspective is centred around technologies.
Present: IT’s Mission
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Present: The Process
Common Process of Software Development1. The business community identifies some information needs and/or issues.
2. They communicate their needs to the IT community.
3. The scope, deadline and cost for the project are determined.
4. The project is started.
5. This business demand is analysed in greater details.
6. The IT community builds and implements the demanded IT-solutions by applying its technological knowledge.
7. The project’s main focus is on delivering on time and within budget. If it delivers on time and within budget and the product passes the User Acceptance Test, then the project is successful.
8. The business community validates the solution.
9. As the solution is deployed, the original information issues and/or needs are solved.
(Note: Weaknesses of this approach are listed further in the presentation.) 12
Present: Acquisition
Acquisition of Tools and Competencies
• Technologies available on the market are bought.
• Methodologies available on the market (Softw.Dev. Philosophies and approaches) are acquired.
• Standards available on the market are adhered to.
• Implemented IT infrastructure evolves from old technology to newer technology, from old product to new product, from old an version to newer version, from old approach to new approach, ..
• It’s all about buying, learning and applying.
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This tactic is a process of buying, learning and applying. It doesn’t use and train problem solving skills and all skills needed for innovation.
Questioning the Present
• Does the delivered solution solve the intended needs?
• Does it deliver the expected benefits?
• Is the business community satisfied with the delivered solution?
• Does the IT department have control over the whole set of implemented solutions? Do they manage it well? Can they easily solve problems when they occur in the operational environment?
• Are the systems easily adaptable and expandable to respond to changes and to new needs?
• Is the business community satisfied with the global IT solution and with IT department?
• Is the cost of IT not too excessive?
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What is Your Organisation Doing?
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Profiles /Activity Types
COMPANY PROFILE 1
COMPANY PROFILE2
COMPANY PROFILE3
Problem Solving High Medium Low
Improvement expansion of
systemsMedium-Low High Medium/Low
Innovation Low Medium/Low High/Medium
QUALITY
Bad Design & Bad Practices: Reactive Approach, Short Term, pressure, too short
on resources, inappropriate working environment, ..
Better Design, Practices can be improved
Good Design, Some anticipation and focus on quality, longer term and
on competitive advantage, Good exploitation of
human resources.
Typical Tactics to Get Better Results
1.Increasing the collaboration between the business community and IT community.2.Business stakeholders play a more active role in the software development.3.Formalisation of the development process (eg CMMI). 4.Seeking to acquire the best technologies available on the market.5.Seeking to follow the best software development philosophies and methodologies and to adhere to the best standards.6.Increasing of technological competencies (more training).7.Hiring better IT people.8.Adding management.9.Adding administration.10.Increase control.11.Increasing the effort.
We do more of the same using the same beliefs and thinking patterns,
but expecting different results.We have to CHANGE our THINKING.
We do more of the same using the same beliefs and thinking patterns,
but expecting different results.We have to CHANGE our THINKING.
Present: Improving the Results
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Common Steps in the Typical Process (1/2) A more detailed description of the process :
1.An employee experiences a difficulty. The employee will try to solve it by applying an ad hoc solution. If other employees face a similar issue, each of them will apply his own ad hoc solution. When the issue occur more regularly, gradually, employees will start to apply a similar or even the same solution. When the employees become aware that the issue is recurrent, they will try to use office automation software, applications available on the web or other software tools available to them to devise their own solution. Since, employees don’t have exactly the same needs and they have their preferences, it’s quite possible that, for a same issue, different solutions are conceived.
2.Finally, the issue is recognised.
Alternative path: Plans are devised. It is only when plans are detailed enough and are ready to be executed that the awareness arise about the new information needs generated by the plan.
3.After some discussions, the decision is made to contact the IT department.
Evaluation of the Typical Approach
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Common Steps in the Typical Process (2/2) A more detailed description of the process :
4.A business demand is formulated which describes the needed solution.
5.The business demand is communicated to the IT community.
6.The cost and the deadline of the project are determined.
7.The business community formulated their demand and if the IT department has needs or requirements, it can to take care of it during the project. This doesn’t concern the business community. But they have to deliver within time and budget.
8.The project starts.
9.The goal of the project is to offer the business a functioning solution that complies with the demand.
10.The IT community builds and implements the demanded IT-solutions.
11.The project’s main focus is on delivering on time and within budget. If it delivers on time and within budget and the product passes the User Acceptance Test, then the project is successful.
12.The business community validates the solution.
13.As the solution is deployed, the original information needs are solved.
Evaluation of the Typical Approach
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Assumptions:1.The business community is the client.
2.The business community knows its needs.
3.The business community pays, thus they decide.
4.The business community is able to identify its information needs, analyse and understand them and communicate them (correctly, appropriately and in time)
5.The business community is able to conceive and describe the required solution.
6.IT should servicing the business. ‘Serving a client’ implies a client-supplier-relation in which, since the client is king, the supplier is in a subordinate position and should comply with the client’s demand.
7.The established norms (expectations) are sufficient. A working solution that comply with the business demand is good enough and, basically, nothing more is needed.
8.IT is about technologies.
9.Once the project’s objective has been defined, we can manage the project against time and cost.
10.When the IT department delivers a product that comply with the business demand, then the information needs or issues will be solved and the business community will be satisfied.
11.Competitive advantage (or value) is created by acquiring the best technologies, adhere to the best standards and by following the best methodologies.
12.It is possible to equip a company with an efficient IT solution by solving problems and by reacting on issues.
Evaluation of the Typical Approach
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Weaknesses of the Typical ProcessA) DETECTION OF NEEDS AND ISSUES
1. Often an information need or issue materialises and impacts the business before the awareness arise. We allow needs and issues to damage the business before taking action.
2. The detection of the information need or issue happens by chance. There is no logic or order in their detection.
3. Many needs or issues remain undetected.
4. It may well be possible that only consequences and symptoms are detected.
B) SOLUTION AND SOLVING PROCESS
1.Some issues are solved with improvised solutions by the users. They have their weaknesses and may introduce risks.
2.Some needs simply remain badly solved.
3.Needs and solution are confused. Often, the demand doesn’t express needs. It expresses the desired solution. This implies that the business community conceived the solution, while logically, this should happen after the during the analysis and design phase in the software development cycle.
4.The solution has been conceived from a very local perspective (limited to own organisational unit and considered only from one’s own discipline, functional barriers) and with the objective to have a working solution soon. Software have a lifetime of a few years up to decades. (short term versus long term norms)
5.Information is shared across the company and is connected with other information. A change may easily impact the company elsewhere.
Evaluation of the Typical Approach
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C) APPROACH
1. The approach is reactive: waiting for needs to materialise and waiting for the business demand.
2. Needs are detected late. Time is wasted already before the detection.
3. Time is also wasted between the detection and the formulation of the business demand. Before the demand is transmitted to the IT department, the project is already under pressure. Impact on quality !
4. Since the detection happens by chance, smaller solutions are developed here and there. The conditions aren’t favourable to improve the implemented IT through a more global, orderly and methodical approach.
5. To replace the solutions built by the employees, a decent solution has to be conceived and the chaos and negative consequences generated by these individual solutions must be cleaned up. A lot of effort is wasted.
6. Information needs are diffused across the company. A need can be solved without considering similar needs beyond the functional boundary. The latter issues and needs will be solved only when the other organisational units become aware of ‘their needs’. It would have been more efficient to solve them together.
7. The business community is a supplementary link between the need or issue and the solution builders.
8. The IT department has to wait for the business demand. It is dependent from this demand and from the business community concerning the scope, budget and timing.
9. Because of this dependency, the IT department will always be in a lagging position.
10. The company’s requirements and the IT requirements are considered as an afterthought. Moreover, probably, there is no time, resources, objectives or motivation to take them genuinely into consideration.
Evaluation of the Typical Approach
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D) PROJECT DRIVERS AND SUCCESS
1. The focus is reduced by the business demand to a specific problem area, often limited by functional boundaries in the organisation. However, most projects may have an impact elsewhere in the company. The business demand sets the boundaries. Opportunities outsides this perimeter are missed.
2. The business community’s norm is the expectation of a solution that works and that solves its needs. This target is far too low.
3. The project’s objective is to pass the users acceptance test. This target is also much too low.
4. The project’s objective is defined by the scope, time and budget and the projects are managed against these constraints. These constraints are actually confused with and used as objectives. Worse, these ‘goals’ acts as a limitation, as a barrier to the creation of value. They sends the message “Don’t do too much or you will exceed the time and cost.”. Normally, during the execution of the project, the project team gathers information. They verify it. They learn and gain insight in the problem area. Because of the limiting goals, these activities, which are essential to create real value, are reduced and the business demand is trusted blindly. This approach doesn’t favours the detection of opportunities.
5. Managing a project against time and cost has an opposite effect on the creation of value. Pressure reduces the investigation and thinking and inhibits creativity.
6. Commonly, the project’s measure of success don’t express any creation of value. Often, they aren’t even connected to the creation of added value for the business.
Evaluation of the Typical Approach
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Conclusion of the EvaluationA. Result
This approach encourages the development of solutions which are more likely to
• respond to local and very temporary needs only.• be based on a superficial understanding of the problem.• solve symptoms and consequences instead of root causes.• introduce sub-optimisation in the company.• be based on a weak design.• create data issues (limited sharing, reuse, consistency, security, management, ...)• lack of a solid foundation, of reuse possibilities and of flexibility• difficult to configure, to maintain, to manage, to adapt, to interconnect and to expand• ...• be not likely to last.
Evaluation of the Typical Approach
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Conclusion of the Evaluation (2)
The approach and underlying beliefs are oriented towards the solving of issues and responding to needs and not (or insufficiently) to the conception and development of
This approach tends to activate some forces that lead to a plethora of technologies and individual solutions, to an uncontrollable and unmanageable heap of distinct solutions of lower quality. This software environment is hard to adapt and to expand. We can expect many problems in operations and frequent changes. Some barriers and positive forces, opposite to this tendency, are also active: architects & analysts, present infrastructure, introducing a new technologies requires an additional effort, ..
Under these circumstances, it’s difficult to reach a satisfying IT implementation in support of the business activities. The level of business-IT alignment will remain beneath the expectations. Turning IT into one of the driving forces and a way to innovate is beyond the company’s capabilities because of its limiting beliefs.
This approach doesn’t take advantage of the human competencies of IT people and doesn’t exploit the whole potential IT as a discipline.
This approach doesn’t take advantage of the human competencies of IT people and doesn’t exploit the whole potential IT as a discipline.
Evaluation of the Typical Approach
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> THE FUTURE<
IT’s Role
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What is IT About ?
"Computer Science is no more about computers than astronomy is about telescopes.“
Edsger W. Dijkstra
"IT Doesn't Matter" (Nicholas G. Carr; Harvard Business Review; May 2003)
In a broader sense : –“IT is no more about technology than astronomy about telescopes.”–“Technology doesn’t matter”
The business community doesn’t care about which technologies implements solutions, about software development, about the IT infrastructure or about the implemented solutions.
As long as we focus on this, our perception, our priorities, our focus and our objectives will not and can not be aligned with that what really matters.
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What is IT About ?
But if IT is not about “Technology” and if “Technology doesn’t matter”, then what matters really in IT? What is IT about and how can we obtain a competitive advantage through IT? Or, can’t we?
The brief answer is :
Conclusion: The potential power and value of IT is a much greater than what old beliefs conveyed. These beliefs are barriers to the exploitation of the potential value of IT and of the IT department.
FULLY GRASPING AND INTEGRATING THIS SHIFT OF FOCUS IN OUR THINKING IS THE BEGINNING OF THE CONCEPTUAL (R)EVOLUTION
FULLY GRASPING AND INTEGRATING THIS SHIFT OF FOCUS IN OUR THINKING IS THE BEGINNING OF THE CONCEPTUAL (R)EVOLUTION
It is all about - information, - informational capabilities - and concepts.
It is all about - information, - informational capabilities - and concepts.
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OperationsOperations
MANAGEMENTMANAGEMENT
BUSINESS ACTIVITIESBUSINESS ACTIVITIES
INFORMATION ACTIVITIESCapture, Input
Control, Process, Format, Query, Search,
Present, Distribute, Secure, ... & USAGE
INFORMATION ACTIVITIESCapture, Input
Control, Process, Format, Query, Search,
Present, Distribute, Secure, ... & USAGE
Policies, Guidelines, Standards, Rules, Practices, Formats, Tools (hardware, software, others), .. related to information
Policies, Guidelines, Standards, Rules, Practices, Formats, Tools (hardware, software, others), .. related to information
Information, meta-information,
Information Concepts
Information, meta-information,
Information Concepts
INFORMATION ENVIRONMENT
Resources capturing, storing, distributing, ..
processing information
Resources capturing, storing, distributing, ..
processing information
ProductsProducts
ServicesServices
BUSINESS ORGANISATION
Searching Information NeedsAnalysisDesignProgrammingTesting :Implementation
DevelopmentDevelopment
ManagementManagement
INFORMATIONAL CAPABILITIES
IT DEPARTMENT
Information Environment
Information CapabilitiesInformation Activities
Information Environment
Information CapabilitiesInformation Activities
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The Information Environment is the ensemble of information, the information activities and everything that is used to guide and execute these activities organised to and capable of satisfying the company’s information needs. (Cfr. Remarks)
This includes• Information and meta-information• Organisation of the Information• Concepts applied on information (rules, behaviour, ..)• Environment of policies, procedures, guidelines, standards, methods, tools, systems and infrastructure to
handle information• Manual and automated processing • As well the planned, formalised, structured and/or controlled usage as the ad hoc, free, unstructured and/or
uncontrolled usage of information
Remarks:1: Terms like ‘information’, ‘processing’, ‘usage’,.. have to be understood in their broadest sense (e.g. meta-information, sound, video, transport, securing, network, ..)2: It is not realistic for the IT department to provide a framework, guidelines, tools, and so for every single information item or every information manipulation within the company.3: Some capture, processing of information is performed and used freely by the business community. As, in these cases, this community decides about how this has to be performed, they remain responsible for it.
Information Environment
Information Environment
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Information Activities are all activities that produce or use information executed by humans or machines within the organisation.Information activities: creating, capturing, storing, controlling, evaluating, processing, extracting, duplicating, transforming, formatting, coding, searching, selecting, filtering, accessing, distributing, presenting, interpreting, securing information, ...
The informational Capabilities are •the usage and capabilities of the information environment•ability to deal with information needs •and the ensemble of the competencies and capabilities to conceive, build, maintain, manage and adapt the information environment.
Information ActivitiesInformation CapabilitiesInformation Activities
Information Capabilities
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An Information Concept is any set of linked information, structure, classification, algorithm, mechanism, set of rules, behaviour or a combination of these elements that together represent an idea (concrete or abstract). An Information Concept is a kind of framework in which information is organised or enclosed.
Information ConceptInformation Concept
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Classes as defined in OO represent concepts. An information concept isn’t necessarily a class. It can regroup several classes as well. An Information Concept is not tied to the OO philosophy. It’s a much broader concept.
It’s strongly advisable not to use this term for any ‘class’, but to limit it to ‘concepts’ that have a specific meaning to the business or to the final solution.
The role of an IT department is :
to strengthen the company by equipping its body with an information environment and by increase its informational capabilities in order to facilitate and to foster the business activities in a sustainable way and even to drive it when and where possible.
The role of an IT department is :
to strengthen the company by equipping its body with an information environment and by increase its informational capabilities in order to facilitate and to foster the business activities in a sustainable way and even to drive it when and where possible.
IT’s REAL Mission
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What is IT About ?
IT is about 1) Problem Solving
2) Conception of Systems
Key competencies are : Learning Listening Analytical thinking Systemic thinking Abstract and conceptual thinking Structured thinking & approach Creativity
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> THE SHIFTS <
COMPARISON BETWEEN
OLD & NEW PARADIGMS
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Differences in Belief
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The difference in beliefs and assumptions have an impact on many aspects:
•Objectives•Mission•Product•Added Value•Approach•Perspective•Responsibilities•Client•Role•Business-IT relation•And thus they lead to different results
These different aspects are briefly discussed in the following slides.
OLD: The mission of corporate IT is to build and implement solutions to solve information needs, offering services related to these solutions and managing the implemented solutions and the infrastructure in which these solutions are implemented.
OLD: The mission of corporate IT is to build and implement solutions to solve information needs, offering services related to these solutions and managing the implemented solutions and the infrastructure in which these solutions are implemented.
NEW: The mission of corporate IT is to conceive and equip the company with the ability to capture, organise and use information needed in support of the company’s purpose.
NEW: The mission of corporate IT is to conceive and equip the company with the ability to capture, organise and use information needed in support of the company’s purpose.
In the past, the role of the IT department was to respond to information needs. IT solutions have to support specific activities and groups of users.
The real mission shouldn’t be expressed in terms of servicing, needs, issues, users and solutions. The role of corporate IT is to contribute to the raison d’être of the company. Corporate IT influences not only the efficiency of the company, but also its business models and strategies. IT is a source of innovation and as such it can be a driving force.
The IT department should also increase its own capabilities.
Mission
36
NEW: The products are the informational capabilities and the conception and building of a part of the company’s body that relates to information (Information Environment).
NEW: The products are the informational capabilities and the conception and building of a part of the company’s body that relates to information (Information Environment).
In response to issues and needs, technological solutions were built. These solutions helped a group of users to work well.
As a part of the body of the company, the IT implementation must ensure a smooth, effective and efficient functioning of the company as a whole. A quality design and specific characteristics are required. Innovation by information and advanced and intelligent use of this information may provide a competitive advantage to the company.
The body of the company has to be designed as an integrated whole. This increases the internal organisation, its behaviour, the efficiency and effectiveness, the consistency, the reuse of components, the avoidance and removal of waste. It also increases the reliability, the manageability, the analysis of impact, the agility, ..
Software, IT infrastructure and related services will still be proposed to the users. They aren’t considered and offered as individual components (solutions). There is a difference between integrating distinct components and starting from a holistic view to come to an integrating design and build individual components of this design.
OLD: Products of corporate IT were technological solutions, tools and infrastructure and services related to the implemented technological solutions and environment.
OLD: Products of corporate IT were technological solutions, tools and infrastructure and services related to the implemented technological solutions and environment.
Product
37Note: The term ‘design’ doesn’t refer to aesthetical design. It refers to conceptual design, to architectural design and to the internal organisation of the product.
NEW: The value (and competitive advantage) is created by the
1. information2. information concepts3. informational capabilities.
NEW: The value (and competitive advantage) is created by the
1. information2. information concepts3. informational capabilities.
Technologies, standards, frameworks and methodologies are available to any company. Any company can acquire them and implement them. They won’t deliver a competitive advantage or it will only be for a very short period of time.
The real difference will be created by the information the company has and by its usage. It will come from the concepts that organises the information and which define new ways of dealing with it. And it will come from the company’s ability to conceive, to adapt and to manage its information environment. Creativity (innovation) and automation are both two key aspects.
OLD: The value is created mainly by the implemented technologies.OLD: The value is created mainly by the implemented technologies.
Value – Competitive Advantage
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A. Information1. Since information enables the company to function, it is a vital resource.
Consequently, it must be treated and managed accordingly. Information is often connected to other information. It is used in different ways across the company and at different levels. It is shared by different users. Today, capturing information is much lesser an issue. But data consistency and having the right information at the right time and at the right place is still a challenge.
2. Knowledge is enclosed in information. Extracting this knowledge is another challenge.
3. Information plays also an essential role in the design of the organisation and its activities and processes, as well as in the functioning and directing of the activities of the company.
4. Finally, information can also be a product that can be offered to clients.
Value – Competitive Advantage (2)
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Value is created by:A. informationB. information conceptsC. informational capabilities
B. Information ConceptsInformation concepts play a crucial role in the usage of information. Well-designed information concepts may increase the efficiency and effectiveness in the functioning of the company.
But when information concepts are innovative then much more is possible:•Advanced usage of information (eg. selection of meaningful information)•The nuances, precision and meaning of information can be improved.•New ways of working are possible.•New organisational settings can be invented.•New services and information products can be offered.•New business models can drive the business.
Some concepts exists and are well known. But other concepts can be invented. They will make the company and its business to be different from one another.
Value – Competitive Advantage (3)
40
C. Informational CapabilitiesThe informational capabilities is about how well a company can conceive, design, implement and manage its information environment and how well it can work with and use information.
These are key capabilities since the right usage of information improves the operations and the managerial decisions.The ability to organise the Information Environment and to adapt it are vital to provide agility to the company and, combined with creativity, to maximise the ability to innovate.
Information, information concepts and informational capabilities This is all about what information is present, how it is organised and what treatments can be applied on it, how well can we conceive, build and adapt information systems and tools, how good do we manage all this and how well are we able to use information. Improving the way information can fulfil its role within the company contributes to the competitive advantage.
Information, information concepts and informational capabilities This is all about what information is present, how it is organised and what treatments can be applied on it, how well can we conceive, build and adapt information systems and tools, how good do we manage all this and how well are we able to use information. Improving the way information can fulfil its role within the company contributes to the competitive advantage.
Value – Competitive Advantage (4)
41
NEW: The perspective is widened to the higher objectives, to the long term, to the entire enterprise, to multiple disciplines and to the integration of IT solutions within the company’s body.
NEW: The perspective is widened to the higher objectives, to the long term, to the entire enterprise, to multiple disciplines and to the integration of IT solutions within the company’s body.
OLD: Perspective defined by the business demand with a focus on needs, issues, users, technologies and software solution.
OLD: Perspective defined by the business demand with a focus on needs, issues, users, technologies and software solution.
• Enterprise-WideInformation is shared across the company. Most information systems are interconnected and reach even beyond the borders of the company.
• IntegrationThe enterprise-wide information solution is a part of the company’s body. It must be integrated in the organisation, in the company culture, in the business environment, business processes, geographical locations of the company, ...
• Long TermThe company needs an efficient and effective enterprise wide information solution as long as it exists. Most business software applications have a life cycle of several years up to more than a decade. We should be very cautions with responsibilities, objectives, approaches and norms oriented to the short term.
• Purpose and Reality of the ContextAs a part of the body of the company, the enterprise wide information solution must make sure the company can continue to function. It must be able to cope efficiently with events that may happen in the life of a company. It must support the business and be adapted to the environment in which the company operates.
Perspective
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NEW: The information environment is continuously and methodically developed development. This process is based on an enterprise wide investigation of the enterprise and its plans.
NEW: The information environment is continuously and methodically developed development. This process is based on an enterprise wide investigation of the enterprise and its plans.
OLD: The concept of the typical approach is a reaction and is based on the needs or issues identified by the business community and on its demand.
OLD: The concept of the typical approach is a reaction and is based on the needs or issues identified by the business community and on its demand.
The typical approach has been discussed. It is dependant of the accidental detection of issues and needs, of the demand and of the time and budget constraints. The reaction of the business community is problem-driven or need-driven. The action of the IT department is demand-driven and its activities are confined by this demand and by other constraints. The users community is waiting for a solution from the IT department. Fast delivery is essential. A proactive action is impossible. This puts the IT department always in a lagging position. Acquisition of solutions is also frequent adopted approach to solve issues.
Approach
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Needs can be detected much earlier through monitoring and investigation. These activities can be driven by the company’s purpose and by its goals. Discovered opportunities can then be seized. Working proactively and anticipating needs is essential (cfr. note pane). Responding to existing needs and issues can not be completely avoided, but it can be reduced. Since lesser time is wasted in the phase before the project start, it leaves time to do a genuine analysis, to conceive efficient architectures and to design systems well. This environment is more suitable for innovation.
A methodical, multidisciplinary, integrated and holistic approach must be followed in order to develop the company’s body. This is essential to improve the efficiency, the robustness, the effectiveness, the manageability and the flexibility, to facilitate the governance and to innovate. It is also the only way to reach a higher level of business-IT alignment.
Approach (2)
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NEW: The main client is the company. The business community as a whole, as well as the IT department itself are also clients.
NEW: The main client is the company. The business community as a whole, as well as the IT department itself are also clients.
OLD: The client is the targeted business community.OLD: The client is the targeted business community.
The role of the IT community is/was to offer tools to the business community to facilitate their job. This was about building solutions. The users-perspective was paramount. The business community, and often a group of users, was the main client. Many misleading beliefs support this thesis.
On the other hand, when we consider that the IT community conceives and builds a part of the company’s body, needs and requirements at user level are not an appropriate framework of thinking anymore. It is essential to widen the view and to approach this challenge from the enterprise's perspective. The company is the main client of the IT department.
The IT department has to maintain software systems and the technological infrastructure. They have to keep the business software applications up and running. And they have also to adapt the business software applications. The IT department is a user and bears a huge responsibility from the birth of the software system until its disposal. The IT department has its own requirements concerning the system. Consequently, this community is an important stakeholder and user too.
Client
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NEW: The role of the IT department is to support the higher goals of the company and of the business.
NEW: The role of the IT department is to support the higher goals of the company and of the business.
OLD: The role of the IT department is to service the targeted business community.OLD: The role of the IT department is to service the targeted business community.
A change in the mission, the objectives, the product, the approach, the activities and the responsibilities affects the business-IT relation.
In the typical process and organisation the IT project is heavily dependent of the business community. The collaboration is based on a hierarchical client-supplier-relation.
Since the role of corporate IT exceeds the business domain, the knowledge area and the responsibilities of groups of the business community and of many business stakeholders.
The IT department is an expert and as an expert it needs to have a large degree of self-determination. This is essential to concentrate its efforts on aspects that do matter, to obtain suitable solutions and to exploit all its competencies and better service the company and the business.
Business – IT Relation
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NEW: The process for developing the body of the company is a continuous process. Projects can be used within this process.
NEW: The process for developing the body of the company is a continuous process. Projects can be used within this process.
OLD: Projects are managed by scope, time and budget.OLD: Projects are managed by scope, time and budget.
Often the goal is to comply with the demand and to deliver according to scope and within time and budget. The IT project is then considered as a mission: “Executing a demand or an order and nothing more.”
The scope, time and budget are constraints. They limit the activities within the project.
The mission of IT is to conceive, build and improve the body of the company, to increase its capabilities to create value, to augment its value and to innovate. Adapting the body of the company is an ongoing process. It’s about steadily progressing. This requires an active and continuous investigation to find opportunities and time for analysis and creativity. It is not only a matter of building and adapting but also to keep the company’s body lean, effective, agile and manageable.
Projects should focus on the maximisation of the creation of value and on the support of the purpose of the company. To ensure that project’s are linked to higher objectives (e.g. to economical objectives) it should be expressed in these terms. IT projects have to be considered as investments.
This environment may be appropriate for learning, acquiring a deeper understanding, critical thinking, conceptual thinking, problem solving, creativity and thus innovation.
Since the main client is the company, maybe it is advisable that the funding comes directly from the company itself instead of from business departments. (more in the note pane/note pages (in ppt))
Projects
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SCSTEE0505Copyright 2011 Axel
Vanhooren / TEE
It is •by expanding the mission of IT •by considering the company as a whole•by adopting a proactive, methodical, multidisciplinary and holistic approach•and by remaining focussed on what really matters
that we can realise the business-IT alignment. IT may not be limited anymore to and by a support role. Through innovating concepts, IT can be turned into a true driving force.
This requires a change in our beliefs and norms.Only then IT’s full potential can be unleashed.
It is •by expanding the mission of IT •by considering the company as a whole•by adopting a proactive, methodical, multidisciplinary and holistic approach•and by remaining focussed on what really matters
that we can realise the business-IT alignment. IT may not be limited anymore to and by a support role. Through innovating concepts, IT can be turned into a true driving force.
This requires a change in our beliefs and norms.Only then IT’s full potential can be unleashed.
Conclusion
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Other Publications
“Project Management: A New Model to Replace the Harmful Triple Constraint” (64 pgs)
"La collaboration « Business-IT » – Pierre angulaire et pierre d’achoppement de l’informatique d’entreprise" (40 pgs)
“Why Business Demand Driven Information Systems Development Approaches Don’t Work” (61 pgs)
Axel VanhoorenFreelance Consultant
: [email protected]: http://be.linkedin.com/in/axelvanhooren
TAURUS ENTERPRISE ENGINEERING BVBA
Klein Spanuit 84, 3300 Tienen: www.taurus-ee.com
URL for document updates: http://www.taurus-ee.com/Publications/TEE - The Conceptual IT (R)Evolution - Axel Vanhooren.ppthttp://www.taurus-ee.com/Publications/TEE - The Conceptual IT (R)Evolution - Axel Vanhooren.pdf
