Thoughts on 2013


Another year is coming to a close, and that means it’s time for 2013 predictions. Blog posts and articles will focus on the possibilities that lie ahead in the coming year. With so much uncertainty in the global community, people predict at their own peril. So this year, I am focusing my thoughts on the journey that I believe will dominate the rest of the decade. That journey will span three very broad categories: the accelerated movement towards systems of engagement, operating model change, and Digital innovation.

So here it goes – my thoughts for 2013:

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The Early Stages of the Digital Enterprise Journey


I have had the pleasure of attending and presenting at several CIO forums in the past couple months –and with all the talk of their future demise and the changes ahead for Enterprise IT, it’s good to get a view from the CIO themselves. They all seem very interested in the dialog around their role changing in the next 3 to 5 years, and the panel sessions on the topic are mobbed. But I don’t see this group buying into the notion that their role will change – aside from the more progressive CIOs. Actually, at a recent event, it felt like very little was changing – as I sat through presentations that could have easily been given in 1998. Some of the same challenges that traditionally drain the resources of an IT organization are still front and center. 

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From an Extended Enterprise to a Digital Enterprise


I find myself reflecting on a common phrase as I watch the digital enterprise unfold: “history is repeating itself”. So much of what is happening today, feels like a second and more attainable version of what was happening about eleven years ago. Back then, I remember developing a framework for the extended enterprise – a popular way to describe the inclusion of other value chain members in end-to-end business process. The Internet was going to change the game by providing the infrastructure required to extend a company’s inward-focused business processes to the value chain. It was to become the catalyst for value chain optimization.

I thought back then about the delivery of innovative product and services comprised of differentiated internal services and value-added external services. The Enterprise would in effect be a functional specialist within their value chain, focused on connecting with partners to gain access to information and services. There would be a divestment of assets, as companies focused on their core competency, making external optimization, synchronization and integration critical success factors. Companies would realize that the ability to adapt to market change was inversely proportional to investment in fixed assets.

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Systems of Engagement


Geoffrey Moore, Managing Director, TCG Advisors recently authored a white paper titled: A Sea Change in Enterprise IT. Mr. Moore – and more recently Forrester – has used the phrase “systems of engagement” to capture the shift from a transactional focus to an experiential one. I believe this phrase captures the required response to this phenomenon and addresses what Mr. Moore describes as a shift in the axis of IT innovation from large enterprise to consumers, students, and children. As stated in the paper, systems of record are no longer a source of competitive differentiation for organizations, but a necessary condition of doing business – enterprises are forced to sharpen their competitive advantage or risk being commoditized. 

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Forrester: Mobile Is the New Face of Engagement


Ted Schadler and John McCarthy of Forrester just completed a report titled “Mobile Is the New Face of Engagement”. I had the pleasure of moderating a panel discussion at a TCS Innovation Forum last week, where Ted served as part of the panel. Prior to the panel discussion, Ted used a 45 minute presentation to effectively summarize the content of the new report. He provided a written summary via his Blog yesterday.

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Review of 2011 and Thoughts on 2012


2011 in my mind will be viewed as the launching point of a digital revolution. The momentum started in 2010 and kicked into overdrive in 2011. The rapid adoption of tablets and Smartphones fueled an aggressive development of mobile applications, while E-Book sales increased at a remarkable pace. Meanwhile, the world continued to go social in ways that few would have imagined. World leaders felt the power of Social Media, as revolutions expanded through the organizing power of Facebook and Twitter. Business leaders came to grips with the power of social media, as skepticism waned and social business turned the corner. Data continued to grow exponentially, expanding the gulf between available data and meaningful insight. Lastly, 2011 marked the year that cloud computing burst onto the enterprise landscape – In fact, 2011 may eventually be viewed as the year of the Cloud.

These factors combined to drive an aggressive digital expansion that in most cases happened through isolated initiatives driven by marketing. Businesses with indirect channels to market looked towards direct to consumer models. Regulated industries embraced the opportunity of social media, while addressing its risk. Customer experience became the mantra for many businesses, as re-inventing customer relationships topped most priority lists. New digital executive positions were created in response to growing questions about effective governance models. The notion of holistic digital strategies was in fashion again, and innovation and operating dexterity rounded out the top priorities for most executives in 2011.

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Disruption


In a recent presentation, Forrester describes the uniqueness of our current business environment as a perfect storm of technology innovation. In the past, technology cycles were driven by one major innovation (mainframe computing, personal computing, networked computing). The current environment sees a perfect storm of cloud computing, social business, mobile computing, advanced analytics and smart computing. This latest cycle begins a period of accelerated innovation, and introduces a larger potential for disruption than in past cycles.

Disruption in many different forms is not just possible, but likely. Business models across many industries are already under attack. The Information Technology (IT) function itself will see considerable change over the next several years. As the workforce and business leaders play a bigger role in technology selection, the role of IT will evolve. What IT looks like in the future is anyone’s guess, but change is almost certain. The current outsourcing model that so many companies have embraced over the years, will change as cloud computing widens its footprint. The way companies build and deploy applications will change, as mobile apps and app stores shift from the consumer world to the enterprise. The way companies interact and communicate with all stakeholders will change, as social media evolves to social business.

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