Are you ready to make digital transformation a success?

Posted on : 15-01-2020 | By : kerry.housley | In : FinTech, Innovation

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Digital Transformation is a phrase that businesses are all too familiar with but there are many interpretations of what it means. Companies large or small feel this is an opportunity that they cannot afford to miss!

All too often a decision is made at the top when an executive says we must do “more digital” with little understanding of what this involves and how this will affect their daily business operations. Companies are under huge pressure to get onboard with this process, they fear that if they do not, they will be left behind and watch their competitive edge slip away

Traditional organisational change failure rates are already reported to be 60-80 %, when it comes to digital transformation the story is much worse. A Bain survey reported that just 5% of companies involved in digital transformation achieved or exceeded the expectations that they had set themselves. Many of these companies had settled for very little return on investment and mediocre performance.

There are many reasons for such poor outcomes but one of the reasons is that many firms jump on this bandwagon far too early without thinking it through at a higher strategic level.  Often the starting point is “we need to go digital”, looking for areas of the business to implement the technology, usually this is a strong pain point that they want to fix.  Digital transformation is not about fixing isolated pain points but more about finding ways in which a company can improve their customer journey and provide the best level of service they can. Companies overlook this and go straight ahead putting digital solutions into various parts of the business rather than thinking of this as an enterprise wide initiative.

Another reason for failure is a total lack of investment in areas outside the digital arena. In order to successfully implement any change, there must be a clear reason for doing so. This message must be communicated throughout the organisation from the Board level at the top through to the workers on the frontline. It is here that many companies fail to invest the time and money required, and without the understanding and buy-in of all involved success will very difficult to achieve.

Technology is constantly improving, and companies are keen to be seen as the leaders in their field. There is no doubt for those who are successful in their digital transformation the rewards are immense in terms improved customer service and increased revenue. The problem is that not every company needs or indeed will benefit from digital transformation. Technology is not a one size fits all. Often, companies are so keen to be seen as innovators so they rush into it and buy the “next big thing” without any clear idea how they will use it and what the benefits might be.

Introducing traditional change into an organization is no easy feat, and digital transformation with all it entails is a far greater challenge.

The operating model is a crucial starting point, what does it look like and how can technology work within this model to give the best results. Many organisations are operating based on models that are out of date with their business goals and not agile enough to keep up with the fast pace of customer expectations and technology change.

All the business departments must work together to confirm the business processes and look at how these processes can benefit from digital intervention.

In the Broadgate office we often talk about people, process and technology and it is the people part here which will ensure that the innovations proposed will benefit what is actually happening in the business on a day to day basis. These are the people who have the understanding to see how a process can be improved and they are the people who can ensure your success. As we said earlier, investing heavily in the planning process and getting the culture and the environment ready for change cannot be underestimated but is often overlooked.

From the boardroom to the post room everyone must understand the business, what your business is trying to achieve so that everyone can understand the benefits of the digital change.

Digital transformation is not a one-time project but an ongoing improvement strategy.  Organisations should always be thinking how they can keep improving their business and how they can offer their customers the best experience.

Is your business ready for digital transformation?

  • Is your operating model ready?
  • Are your business processes ready?
  • Is your board ready?
  • Are your employees ready?
  • Is your company culture ready?

If the answer is yes to all the above, then you have a good basis on which to start and might just be in with a chance of success!

Is it time to reconnect offshore?

Posted on : 15-01-2020 | By : john.vincent | In : General News, Innovation

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At the end of last year I travelled to India to assess the capability of a potential supplier for our clients. Over the years I have always both enjoyed and been impressed with my trips India. The culture, capability of the people I meet, their client focus and general level of friendliness have always made my trips ones that I look forward to.

This trip was no different and reconfirmed my views. However, I did return with one nagging question;

Why do many corporations not extend their technology services operating model to include partnerships with offshore providers?

Our Broadsheet publication has discussed the changing face of sourcing models many times over the years. Through the late 90’s and over the subsequent 20 or so years much of the focus was on cost reduction. As the efficiency agenda bit into available budgets, many leaders looked towards the labour arbitrage benefits that India could offer, either through their own captive operations, or via sourcing partners to help address the squeeze.

Offshoring business cases often paid lip service to the potential added benefits in areas such as access to skills, quality of delivery or agility, and innovation was often not mentioned at all

So companies transformed their operating model to offshore delivery models throughout this period. Initially the focus was on Business Process Outsourcing (“BPO”) and Information Technology (“ITO”) with back office operations roles and development forming the lion share of the skills transfer. As the model matured, more sophisticated roles in each were shifted offshore in more “value add” areas such as research development and production, as well as infrastructure operations to manage the emerging cloud delivery models through Google, Amazon and Microsoft platforms.

However, with the acceleration in technology innovation over the last few years in areas such as Artificial Intelligence, Machine Learning and Automation, there does appear to be a huge opportunity to harness the talent that the offshore providers have developed?

The first movers in the India offshore business have both an advantage and disadvantage in the new digital  economy. Labour arbitrage largely fuelled wave one of the model, enabling companies like TCS, Infosys, Cognizant and HCL to grow their workforce dramatically (TCS now employ c.425k staff at the top end and HCL have c.120k at the lower). However, whilst this is growth has been good on one hand it also means that these organisations will have a difficult transformation to go through with their own operating model through areas such as automation. Their capability is without question, but they now face the same challenges as their clients in how to introduce the new technology without eroding their core business.

So let’s look at the next tier of offshore providers. Here we find companies such as MindTree, UST Global and Zensar, all of which still have significant staff numbers, but sub 30k. Naturally these providers have focused their service offerings around digital rather than increasing headcount.

In my view, this puts them at a significant advantage when it comes to engaging with clients for the delivery of new disruptive technology. By building new platforms to automate operations they can take on new clients without the need to hire at the rate required by the previous Indian offshore pioneers, thus limiting the challenge of what to do with what may become a significant surplus of skills.

So what about tapping into this capability for new technology? Offshoring is something that still divides opinions a lot. Yes, there are probably as many tales of woe as there are of delight. However, this is something that we also find with the more traditional onshore models. In truth, when both sides enter into the model as a partnership and understanding what needs to change in the engagement, roles and responsibilities, strengths and weakness and a shared ambition, then it can really benefit both the client and offshore partner tremendously.

One of the key success factors is to set up the operating model with a common shared interest, irrespective of organisational and geographic boundaries

One of the things that struck me on my visit was just the depth and scale of the talent in new technology, not only within the providers I visited, but also in the very visible growth for big name companies, consultancies and technology mainstays. AI, Dev Ops, Cloud and ML are core to this revolutionary growth.

In our view, the next few years will bring opportunities to develop partnerships, or even new “captive” type models, with those organisations that are on the pioneering end of the digital growth. Organisations should ask themselves “Why build the capability themselves?”. Often the answer to this question has been coloured by the perceived overhead of managing service provider delivery, through vendor management, security oversight, service delivery management etc.

However, organisations should take a “green field” thought approach to tapping into the offshore provider capability. Core platforms can be delivered by technology and service providers with business services layered on top. Also, this should not be structured as a linear end-to-end service chain, coupled together with hand-offs between the parties, but through a Joint Product Led team. This helps to drive efficiencies, a more agile delivery and an end product aligned more closely with expected business outcomes.

We should say something about the wider macro considerations to using Indian offshore talent. Firstly, from a security perspective there is a noticeable increase in the level of physical security when entering almost all establishments (in response to events over the last 10-15 years). This used to be consigned mainly to corporate access, but this is now visible at hotels, shopping malls and the like. Not an issue, just an observation.

Secondly, India is under pressure to retain its offshore status not just from the nearshore providers, but also from areas such as the Philippines and most notably China. However, this is simply a natural evolution and the competition will provide more choices.

It certainly seems like this decade will bring further opportunities to tap into this offshore digital talent for those that chose to look for it.

The 2018 Broadgate Predictions

Posted on : 19-12-2017 | By : richard.gale | In : Predictions

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Battle of the Chiefs

Chief Information Officer 1 –  Chief Digital Officer 0

Digital has been the interloper into the world of IT – originating from the Marketing Department through the medium of Website morphing into Ecommerce. The result was more budget and so power with the CDiO than the CIO and the two Chiefs have been rubbing along uncomfortably together, neither fully understanding the boundaries between them. 2018 will see the re-emergence of CIO empire as technology becomes more service based (Cloud, SaaS, Microservices etc) and focus returns to delivering high paced successful transformational change.

 

Battle of the Algorithms

Quantum 2 – Security 1

All the major Tech companies now have virtual Quantum computers available (so the toolkits if not the technology). These allow adventurous techies to experiment with Quantum concepts. Who knows what the capabilities are of Quantum but through its enormous processing power it will have the capability to look at every possible combination of events for a giving situation at once. That is great in terms of deciding which share to buy or how people interacting on Facebook but it will also have the potential to crack most current encryption mechanisms. Saying that it will enable another level of secure access too!

 

Battle of the Search Engines

Voice 2 – Screen 0

OK Google, Alexa, Siri…. There’s a great video of Google talking to Alexa on infinite loop. That’s all fun but in 2018 Voice will start to become a dominant force for search and for general utility. Effectively stopping what you are doing and typing in a command or search will start to feel a little strange and old-fashioned. OK in the office we may not all start shouting at our computers (well not more than normal) but around the home, car using our phones it is the obvious way to interact. This trend is already gathering momentum. VR and especially AR will add to this, the main thing holding it back is the fact you look like an idiot with the headset on. Once that is cracked then there will be no stopping it.

 

RoboWars – to be continued…

Robots 1 – People 1

AI and ‘robot process automation’ RPA are everywhere. Every services firm worth its salt has process automation plans and the hype around companies such as Blue Prisim is phenomenal.  This is all very exciting and many doomsayers have been predicting the end of most jobs (and some the end of most people!). Yes. Automation of processes is here. It’s been here for years – that is what most ERP (aka workflow) systems do. It makes absolute sense to automate mundane processes and if you can build in a bit of intelligence to deal with slight differences in the pattern then all the better. Will it result in the loss of millions of jobs… well maybe and probably in the short-term but once again, as every time in the past, technology will replace human endeavour whilst humans will be busy building the next creative, innovative wave.

 

The Lightbulb Moment

Internet 1 – Internet of Things 3

Is there anything left which is not internet connected? Two years ago, there were very few people that had any interest in communicating with a lightbulb – apart from flicking a light-switch. Now IoT connected lightbulbs appear be everywhere and the trend will grow and grow. The speed this happening is accelerating and the scope of connected devices is expanding beyond belief. Who would have thought we needed a smart hairbrush? This is all fine and will enrich our lives in ways we probably haven’t even thought about yet but there is a cost. We are allowing these devices to listen, see, control parts of our lives and the data they gather has value both for good and bad reasons. There is no ‘culture of security’ for IoT. Many of the devices are cheaply designed and manufactured with no thought towards security or data privacy. We are allowing these devices into our lives and we don’t really know what they know and who knows what they know. This may be a subtler change for 2018 – the securing of ‘the Thing’ – well lets hope so!

 

Welcome to our ESports Day

Call Of Duty 2 – Premiership Football 1

Sport is a big business. From Curling to Swimming to Indy Car racing it has a thousand differing forms, millions of participants and billions of armchair viewers. Top class athletes in a popular sport can earn millions of dollars a year both from performing and through product endorsements.

Video games have been popular for years. They started as single, two player games and now are worldwide multiplayer extravaganzas where you can battle, race or fight against people throughout the world. A number of superstars or EAthletes have emerged, first through winning competitions and then through youtube etc where their tournaments are recorded and watched again and again. This business has now broken the $1B mark – still way off ‘real’ sport but its growing massively and some point soon will become part of the mainstream.

Digital out of Home – a growth and innovation market

Posted on : 28-09-2017 | By : jo.rose | In : Cloud, Innovation, IoT

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The acceleration of growth in the digital out of home market (DOOH) is impressive. As providers switch from traditional mediums to digital based technologies and with creative technological advances, such as programmatic and Virtual Reality (VR) and Augmented Reality (AR), it is an exciting time for the sector. Indeed, in 2016 the market was valued at USD 12.52 billion and is forecast to grow to over USD 26 billion by 2023.

According to William Eccleshare, chairman and chief executive of DOOH media provider Clear Channel International;

Globally, press has collapsed, TV is static and radio has declined. Outdoor though has been growing steadily

This growth naturally brings opportunities for the large incumbents (such as Clear Channel) as well as new startups, but at the same time there are challenges to switch existing inventory to the new distribution mediums, transform legacy systems and business process, as well as the requirements to design scalable and secure digital networks.

As with all industries, the DOOH ecosystem is shifting to cloud based platforms to allow for businesses to both flex with demand and also deploy campaigns to audiences on a global basis. These platforms are capable of processing increasingly large and complex data used in the delivery of more targeted audience driven products, which are more cost effective and allows for better integration with external systems. Indeed, as the internet of things (IoT) gathers pace, this data requirement and inter-connectivity will continue to grow at pace.

Let’s look at some of the trends in a bit more detail

Programmatic: Firstly, there’s a lot of talk about programmatic advertising and it’s major influence in the overall DOOH market. The programmatic advertising platform is an online auction where media buyers specify their targeting requirements, such as audience demographics, time of day and location, as well as their budgetary constraints. In itself this isn’t particularly innovative, with other markets such as retail auctions and financial services offering for many years. What it will do though is put pressure on the players (and margins) current value chain, from advertising creative to distribution. It will also provide further pressures on the incumbents who carry more legacy technical debt.

Data is everything: whilst (within reason) signs themselves remain static, the data regarding audiences and how they interact with their environment does not. It constantly changes based on numerous factors, from the time of day, to the weather and external new events etc. With over 75% of UK consumers owning a smartphone, and checking that c.80 times a day, harnessing and correlating this data as consumers go about their daily lives creates value. This plays naturally into the hands of the tech companies and mobile providers who have access to resource, networks and expertise to exploit this value. Here the providers of the digital infrastructure have a real challenge to maintain a foothold and become an integral part of the chain rather than a consumer of more and more costly data.

User Experience enrichment: DOOH is providing more opportunities than ever to touch, interact and engage with valuable consumers; helping to bring brands to life in creative and digitally disruptive ways. In todays “Experience Economy”, it is estimated that 65% of 18-34 year olds are more fulfilled by live experience than possessions. Digital advertising is already interactive in a lot of senses, through simple NFC, QR codes, facial recognition, context awareness etc. and we expect further innovations in a connected context to develop at pace.

Augmented Reality: the first big AR sensation was Pokemon Go. Within a week of its launch last year more than 28 million people a day walking around town and staring at their screens to catch a Pokemon (much to the bewilderment of many onlookers). Now technology partner and advertisers are rightly excited about the potential. Tim Cook recently said of AR that it presented;

broad mainstream applicability across education, entertainment interactive gaming, enterprise, and categories we probably haven’t even thought of

Beacon connectivity: to facilitate the consumer personalisation journey and communication, beacons are becoming more prevalent through the DOOH infrastructure with presence in taxis, retailers, buses, billboards, kiosks etc. We see this further with Google’s Eddystone beacons to create proximity-based experiences for consumers as an open beacon format for both Android and iOS. These developments have shifted the trend towards a creation of a new channel of personalisation based on precision of time, location and so context based digital advertising.

It’s an exciting time to be involved in DOOH innovation with great potential for media tech disruption, but with some significant risks for traditional players, some of which will struggle to shift their operating model and compete.

 

 

Are we addicted to “Digital”?

Posted on : 28-02-2017 | By : john.vincent | In : Cloud, Data, Innovation, IoT, Uncategorized

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There’s no getting away from it. The speed of technology advancement is now a major factor in changing how we interact with the world around us. For the first time, it seems that innovation in technology is being applied across every industry to drive innovation, increase efficiency and open new market possibilities, whilst in our daily lives we rely more and more on a connected existence. This is seen in areas such as the increase in wearable tech and the Internet of Things.

But what is the impact on business and society of this technology revolution regarding human interaction?

Firstly, let’s get the “Digital” word out on the table. Like cloud before it, the industry seems to have adopted a label on which we can pin everything related to advancement in technology. Whilst technically relating to web, mobile, apps etc. it seems every organisation has a “digital agenda”, likely a Chief Digital Officer and often a whole department in which some sort of alchemy takes place to create digital “stuff”. Meanwhile, service providers and consultancies sharpen their marketing pencils to ensure we are all enticed by their “digital capabilities”. Did I miss the big analogue computing cut-over in the last few years?

What “digital” does do (I guess) is position the narrative away from just technology to a business led focus, which is a good thing.

So how is technology changing the way that we interact on a human level? Before we move on to the question of technology dependence, let’s look at some other applications.

Artificial Intelligence (AI) is a big theme today. We’ve discussed the growth of AI here before and the impact on future jobs. However, one of the areas relating social interaction which is interesting, is the development of emotionally intelligent AI software. This is most evident in call centres where some workers can now receive coaching from software in real-time which analyses their conversations with customers. During the call the software can recommend changes such as with style, pace, warning about the emotional state of the customer etc.

Clever stuff, and whilst replacing call centre agents with robots is still something that many predict is a way off (if at all) it does offer an insight into the way that humans and AI might interact in the future. By developing AI to understand mental states from facial expressions, vocal nuances, body posture and gesture software can make decisions such as adapting the way that navigational systems might work depending on the drivers mental condition (for example, lost or confused) or picking the right moment to sell something based on emotional state. The latter does, however, raise wider ethical issues.

So what about the increase in digital dependency and the social impacts? Anyone who has been in close proximity to “millennial gatherings” will have witnessed the sight of them sitting together, head bowed, thumbs moving at a speed akin to Bradley Coopers character in Limitless punctuated by the odd murmuring, comment or interjection. Seems once we drop in a bit of digital tech and a few apps we stifle the art of conversation.

In 2014 a programmer called Kevin Holesh developed an app called Moment which measures the time that a user is interacting with a screen (it doesn’t count time on phone calls). The results interesting, with 88% of those that downloaded the app using their phone for more than an hour a day, with the average being three hours. Indeed, over a 24 hour period, the average user checked their phone 39 times. By comparison, just 6 years earlier in 2008 (before the widespread use of smartphones) people spent just 18 minutes a day on their phone.

It’s the impact on students and the next generation that has raised a few alarm bells. Patricia Greenfield, distinguished professor of psychology and director of the UCLA Children’s Digital Media Center in a recent study found that college students felt closest (or “bonded”) to their friends when they discussed face to face and most distant from them when they text-messaged. However, the students still most often communicated by text.

“Being able to understand the feelings of other people is extremely important to society,” Greenfield said. “I think we can all see a reduction in that.”

Technology is changing everything about how we interact with each other, how we arrange our lives, what we eat, where and how we travel, how we find a partner, how we exercise etc… It is what makes up the rich fabric of the digitised society and will certainly continue to evolve at a pace. Humans, however, may be going the other way.

Innovation and the impact on future jobs

Posted on : 28-08-2015 | By : john.vincent | In : Innovation

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For those of us who started our careers last century, the pace of change and innovation over the past decade is astounding. After life settled down somewhat following Y2K, the first internet bubble and a heightened period of world turmoil, we are “back to the future” full steam (click here for any film fans that missed the hoverboard release a while back).

Innovations in robotics, blockchain technology, the internet of things, automation and so on is transforming our world to a point that in 20-30 years the way we live and interact within it will be a step change away from today.

So, rather than opine about where these innovations may end up, let’s have a think about one of the side effects…most notably, on jobs.

Those of us that are lucky enough to enjoy our work (and are of a certain age) are probably doing something not that dissimilar to when we left education. Indeed, when I took my first role in technology at a bank it was still considered to be “a job for life”. I could happily start planning for a life on the greasy pole and a final salary pension in a max of around 4 decades of grafting.

Fast forward to today and for those entering the employment market things are very different. That concept now seems so old fashioned. The characteristics possessed by careers of being stable, linear and mainly singular are gone. So what can the next generation of workers expected? Renowned futurist Thomas Frey of the DaVinci Institute is quoted as saying;

60% of the best jobs in the next ten years haven’t been invented yet.

This naturally has a huge impact. Careers will become a polymorphic thing, increasing in complexity, reducing in predictability and will evolve for many into a “portfolio of micro-careers”. Innovation and commoditisation will mean that being able to move laterally between roles and industries will be the norm, with an entirely different mindset and skillset being required to maintain personal “career currency”.

We are already starting to live in the world of the freelancer. Shorter term, output based contracts are on the rise with estimates that by 2020 half of all workers in the US will be freelance and even now, some 20% of UK graduates are joining the labour market in the same capacity. Assuming this trend continues, the impact on traditional employee management, such as performance, reward, culture etc. is something that organisations will need to overcome. Indeed the word “employee” may be used sparingly in favour of “workforce”.

So what are the types of jobs that we might see in the future? Here are a few examples (that 10 years ago would have been considered daft);

  • Alternative Currency Speculator: With Bitcoin and other virtual currencies gaining ground, new more complex trading asset classes will also evolve
  • 3D Printing Manager: Expert roles in 3D printing to help consumers build new or repair current physical artefacts
  • Privacy Consultant: A role to reveal vulnerabilities in an individuals personal, physical, and online security presence
  • Drone Driver: As the deployment expands outside of the military to commercial and private drone use, experienced drone drivers (especially those with urban experience) will be sought after
  • Crowdfunding Manager: A expert on sites like Kickstarter and Crowdcube who provide clients services to promote and attain funds for a project
  • Digital Death Manager: Someone who manages or eliminates some digital footprint and creates a posthumous online presence
  • Meme Agent: We know all too well that we have agents for every kind of celebrity, so in the future, even stars on internet memes will be represented

(If you want to see a list of jobs that might disappear all together (and of course find yours…), click here for a list of 101 Endangered Jobs by 2030

And what about the impact of robotics? Whilst we are indeed moving faster than predicted, the iRobot world is still round a few more corners. Not surprisingly, the area that will succumb most heavily to the rise of the machines first is manufacturing. According to the Boston Consulting Group, they predict that robots will increase the proportion of factory tasks they perform from the current 10% to 25% by 2025.

That said, already a Chinese company Hon Hai (the world’s largest contract electronics manufacturer) is progressing with plans to replace 500,000 workers with robots in the next three years.

According to a number of studies, jobs that need human beings to perform them are rapidly diminishing. In its recent paper ‘Creativity vs Robots’, the innovation charity Nesta quotes research by academics Carl Frey and Michael Osborne, which suggests 47% of jobs are at risk of automation in just “a decade or two.”

The big question is how society will evolve and support a population which will gradually diminish in its importance to a self-sustaining eco system? Will we see queues of human beings alongside drones at the job centre? Or indeed, will unemployment figures actually become irrelevant with nation states measured positively by an upward trend alongside the usual economic parameters?

Who knows…but at least for the time being, I’ve still got a job to do.

 

Business & Digital alignment – how close is your firm?

Posted on : 28-06-2013 | By : john.vincent | In : General News

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Over recent years we have seen the rise in prominence and status of technology with organisations. If we take the Gartner Hype Curve analogy, we spent much of the mid 1990’s through to mid 2000’s in “The Plateau of Productivity”, with technology being an integral underpinning necessity or enabler, but less frequently an innovator or driver of competitive advantage, outside of stability and speed of execution (although, some business leaders might point to a “Trough of Disillusionment”).

Todays world and, in particular, the relationship between business and technology is much changed with organisations introducing new governance structures and roles to more closely take advantage of digital innovation and their ability to disrupt business models. Indeed, we have seen the introduction of the Chief Innovation Officer and Chief Digital Officer with elevated positions in the corporate structure.

That said, from a company’s board perspective, how can they ensure that the business direction and technology are aligned effectively to capitalise on digital innovation. Below are some themes/questions which are useful as a test of capability:

How is our industry changing as a result of technology innovation?

It is important to understand how new innovations are breaking down the boundaries of business models and reducing the barriers of entry. This is not simply keeping abreast with the latest trends in mobile, cloud, data analytics etc… but how new technologies are being exploited by competition and new entrants which can potential erode business revenues. This is difficult, as often the it is not obvious where the challenges will come from. Some can be predicted, such as trading engines and decision support built from social media sentiment analysis, or the myriad of mobile payment solutions. Others, however, are more difficult to predict like the introduction of gamification techniques across industry or the introduction of big data analytics for operational efficiency/intelligence such as with applications like Splunk.

 

What is our structure and process for nurturing developing digital technologies?

A recent survey by McKinsey showed that organisations are still coming to terms with how to develop, nurture and commercialise ideas within the organisation. From 2240 respondents, 50% stated “We have pockets of successful innovation but it is rarely scaled” and only 36% thought “We have the right balance between good ideas and effective commercialisation”.

So, does your organisation have someone responsible for driving forwards digital advancement? (such as Chief Innovation Officer)…or, is there a way to garner ideas within the grass roots and ensure that they are given enough runway to develop, through incubation mechanisms?

 

Have we the correct governance structure and a defined technology roadmap?

Business and IT alignment is often talked about but not really executed upon. Having the CIO/CTO or IT Director in operational or strategy governance meetings does not provide an optimised solution as often the focus is on efficiency, budgets, risk etc… and very rarely on a close (bi-directional) coupling between business priorities and “technology possibility”.

We see new models emerging where business and technology are brought together under specific “Digital Units” on an equal footing, where the goal is to build a technology roadmap which is completely not only aligned, but in many cases, actually informs and drives business into new customer markets and revenue opportunities.

 

Have we aligned our business operating model and portfolio of change effectively to the underpinning technology investments?

A natural lead in from the previous question. By putting the correct governance in place and removing internal barriers, it is much easier to ensure that the business operating model is driving technology investment and vice versa. Too often, organisations still operate a model from which the business change portfolio is defined and the “handed” to the technology leadership to deliver. And when we talk about large/global IT programmes, how many of these turn into “Black Swans“?

CEO’s need to look at, and question, the cross functional aspects of their business and technology organisations. We often see technology departments “aligned” to business units, but how often are more permanent/product related horizontal structures created?…and do individuals move in both directions through their careers to strengthen and embed competitive business knowledge and drive innovation?

 

What are we doing to increase the commoditisation and agility of technology resources?

The agility objective has been largely “etched into” power-point presentations for many years as they’ve made their way into the board room. “We’ve outsourced and increased agility…”…”Our ratio of perm to contract resource has increased from X to Y allowing us to be more agile.”….(tick in the box then).

What CEO’s need to gauge is truly how fast their internal technology organisation can respond to changes in business services from all aspects be that functionality, new products or volumes? (and the important part of this is whether can they be scaled down or switched off?)

Whilst the move to a more commoditised service model needs to be evolutionary, particularly in terms of risk and compliance, what CEO’s should look for from their technology leadership is a committed multi year roadmap which lays out the resource model for infrastructure, applications and people, with associated metrics/budget. Without this, and with the pressure of day to day efficiency challenges, CIO’s cannot be blamed for maintaining previous models.