“Don’t forget to sell shirts and shoes.”

If I had a say, I would name Kevin “Man of the Year”. Good to see someone with good business logics that brings value and has a focus that is to improve something that is performance focused with a “problem to solve” and bring value to his clients rather than the “we are going to disrupt something that we in most cases did not understand in the first place but might be able to raise some cash for”. Please find the full article @ http://www.washingtonpost.com/business/on-small-business/when-we-were-small-under-armour/2014/11/11/f61e8876-69ce-11e4-b053-65cea7903f2e_story.html

Salesforce have spent 5 BN in marketing for a turnover of 9 I wonder what Kevin would have been able to do if he had that money, my guess is that he would not need it…

The (US) VC game “if we can bet on a large enough number of winning horses that is companies that makes it to an IPO” has brought a number of advances and even more so when the focus is on customer value and there is a problem to be solved.

Much to often I see a lack of focus in the area of corporate IT. The role of the CIO is to ensure that the business is able to deliver products and services to clients and on time within and acceptable price range. “Digital” often resumes to “How to better market products and services” to support the Chief Marketing Officer and should be a part of that delivery capability.

Bottom line: I would invite you to ask “what problem do I solve?”!

Kevin makes money when he sell shoes and athletic equipment. What is the objective of your business and how does the IT department support this effort?

My latest book ”Deliver Business Value with IT” focus on how to execute the business strategy supported by IT and demonstrate how we do this: Deliver Business Value with IT (the book) @ Amazon http://www.amazon.com/dp/B00FOQ6T46

WHAT THE REVIEWERS SAID: “ The “Deliver Business Value with IT” series is an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CIO level perspective. The reader will learn robust approaches to deliver services designed to support IT and Business drivers. The perspective that Martin spells out permits an overview of how to leverage existing frameworks but also to effectively support the execution of an IT Strategy aligned with the Business Strategy.”

“The focus that Martin takes in the “Deliver Business Value with IT” series will help in tackling the seven main non-technical challenges any CIO or other senior IT business leaders will face:

1. How and what should I communicate to whom in what way?

2. What to think of when it comes to competences needed to provide my IT services?

3. How to provide the best value at the best cost?

4. What to think of when ensuring efficient and effective delivery of projects?

5. How to establish a sourcing strategy and determining how to manage your vendors?

6. What are the best practices for managing my operations, and what to think of?

7. How can I best scan for and analyse emerging technologies?

The approach taken utilizing basic business management principles and applying them to how to run an IT department are explained clearly, and takes this publication above and beyond the standard publication proclaiming to ‘run IT as a business’. The 2 key trends identified in the publication for the CIO to focus on of “Differentiation” and “Cost” are a perfect example of this.

How to Build a CIO Office

The CIO Office is the command center that needs to be designed to support the needs of the business. “How to Build a CIO Office that you can find only @ flevy https://flevy.com/browse/business-document/how-to-build-a-cio-office-288 spells out the logics for a “right” positioning.

The material support the logics spelled out in “Deliver Business Value with IT” that you can find on Amazon @ http://www.amazon.com/dp/B00FOQ6T46

The “Deliver Business Value with IT” series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective.”
Executive Summary:

The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.

In order to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, “Time to Market”, Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

To deliver business value with IT we need to Focus on the Business Bottom Line: How fast can we get our products and services to market ‘Time to Market’ & how can the IT department support the business from a Cycle Time and Cost Effectiveness perspective.

The IT Bottom line is that up to 40 % of current IT spend occurs outside the IT budget (CRM, Cloud). The IT department needs to position itself as a facilitator to IT services and effectively address emerging needs, market opportunities and demonstrate that the current Business Model is supported effectively. The IT department should facilitate the access to IT services to support new and current business initiatives. The business strategy emerge out of a number of initiatives that are successful or not. The IT department need to support the ‘Run’ of day-to-day operations as well as new projects. The Cloud might particularly be of interest within this frame.

We believe that in order for the CIO and the IT Department to position as premium provider of IT services and focus on value to cost we need to understand the Business (IT) Strategy and how the IT department can deliver effectively to business objectives, that is to deliver business value with IT:
– What is the Business’s strategy and plans?
– What is the current business model that IT has to support?
– Where could IT make a significant impact on the business?
– Are there any further opportunities to use IT?
– How do we provide IT Services as we meet demand and cost drivers where the decision is to make (internal) or to buy (external service provider)?

We have identified 2 key trends for the CIO to focus on: – Differentiation (That is, how does IT provide a competitive advantage for the business), and – Cost (How does the IT Department deliver IT Services cost effectively). To do so we need to Build an effective IT Delivery Model to meet business needs and expectations as we leverage business strategy execution and business processes supported by an IT Service strategy (ITIL, IT – CMF, CobIT 5 (ValIT, CobIT , RiskIT), ISO 38 500, TOGAF and ISO 9001, ISO 27 001, COSO) delivered in a Business IT roadmap; that is how do we support business objectives and processes leveraged by IT and an effective IT Services strategy. Within this scope we would by definition address how we execute the IT service strategy (ITIL) Design – Spell out IT Activities from a demand and supplier side, Build – Set IT processes and key performance indicators, Run – Aligned to described ITIL activities and processes and full IT Financial Management (supported by delivery capability IT CMF, COBIT 5). Once services defined we can then decide where to run the application that support the IT and or Business Services (server / internal / external cloud / outsourced provider).

The CIO and IT Department that sit around and wait for the Business Strategy to be formalised to build an IT strategy and vision might not make the 18 months magic mark. The IT Bottom line is that the IT Strategy should support business objectives, with new technology as needed as the IT department delivers effective IT Services and innovative technology solutions to improve competitiveness, demonstrated and articulated.

The economist on business driven IT innovation

“A key source of ideas that appears particularly underutilised is companies’ own IT departments. These internal technology experts possess knowledge and skills to help their companies use new technologies to transform the business, yet their roles are often limited to implementing other people’s ideas, rather than generating ideas themselves.

Our research identified several important strategies that effective companies use to turn out more and better ideas and foster innovation: They iterate until they find the best ideas, learn from both failures and successes, bring all employees into the innovation process, and maximise feedback to continue to generate ideas that move them forward.”

http://www.oracle.com/us/c-central/eiu-innovation-c-suite-perspectives-1872684.pdf

How do you communicate with your users, business stakeholders and customers?

“Not everybody today is Digital savvy like an enterprise architect, business process owner or system analyst but all of us are using and are impacted by IT. If “Digital literacy” (e.g. limited to a sub-group) and “Digital relevance” (e.g. vast majority of people) doesn’t match one has to bridge. Business capability mapping is a critical element but what about others bridges that we need? Bridges of different kinds that ignite the desire to co-create the future with our users our business stakeholders and our customers? The future of our

- digital enabled business models
– digital enhanced products and services and
– digital enlightened working environment in the enterprise”

This is a follow up feedforward to Werner Boeings excellent article @ https://www.linkedin.com/pulse/article/20140923155442-20779755-technollywood-the-art-of-building-desire-to-co-create-our-digital-future?trk=prof-post

I tend to use a customer journey / day in a life of to visualize how the client work and how this can be improved we can then use a storyboard (see examples below) where we spell out the problem that we solve and how to demonstrate how results can be improved with technology.

A customer journey map (day in the life of) formalised, modelised (prototyped if needed) and validated by the client permit significant improvement in effectiveness (that is productive and efficient) and the customer perception of the experience.

Example health care: The objective is to address the actual health care service, the patient and staff experience of the service and then define the ways it could be improved.

Step 1 – Observe: Try to define and map the different health care segment (surgery department, waiting room…) of the hospital/health care service. Collect feed-back from different patients/staff members of each segment (then make a statistical survey, with both quantitative and qualitative information about the service and give a mark to each segment). Rank the grades and select the segments that obtained the worst grade.

Experiment the journey of a patient in those specific segments (use shadowing, interviews…).

Step 2 – Synthesize: Confront the patient and the staff point of views of each segment in the health care service (use a unique support like a board to give a synthetic view). Carry out a « typical patient journey » for each segment selected.

Step 3 – Generate Ideas: Allow patient and staff members to post ideas of improvement or suggestions in a box available in the hospital. Brainstorm with the staff.

Step 4 – Refine: Realize a quick prototype for each main idea. Test the prototypes with staff members and patient to analyze what could be quickly improved. Give a provisional budget for each main idea.

Step 5 – Implement: Implement the ideas that suit to the budget constraints. Implement the ideas collaborating closely with the staff. Inform staff and patients of the undergoing change. Be receptive to direct feedback.

Please find an illustration that a group of students that I worked that had no previously knowledge of IT strategy and the cloud performed when I asked them (please note how they progress over the 3 days and 5 workshops):

Demonstrate how to leverage the cloud:

http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-18

http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-28 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-38 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-48 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-58 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-68 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-78 http://deliverbusinessvaluewithit.com/2013/03/18/avoid-the-marshmallow-momentum-part-ii-88

How to cloud source effectively:

http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-3-15 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-15-2 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-2-15-2 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-3-25 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-3-35 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-3-45 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-15 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-25
http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-35 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-45 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-45 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-2-55 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-1-13 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-1-23 http://deliverbusinessvaluewithit.com/2013/03/31/capture-on-how-to-cloud-source-effectively-1-33

How to leverage the IT Strategy with the Cloud:

http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-13 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-12 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-11 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-10 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-9 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-8 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-7 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-6 http://deliverbusinessvaluewithit.com/2013/04/07/how-to-leverage-the-it-strategy-with-the-cloud-5 http://deliverbusinessvaluewithit.com/2013/04/07/how-to-leverage-the-it-strategy-with-the-cloud-4 http://deliverbusinessvaluewithit.com/2013/04/08/how-to-leverage-the-it-strategy-with-the-cloud-14

Build a roadmap for Demand or Cost driven cloud implementation:

http://deliverbusinessvaluewithit.com/2013/04/08/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-18

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-17

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-16

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-15

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-14

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-13

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-9

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-8

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-7

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-6

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-5

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-4

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-3

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation-2

http://deliverbusinessvaluewithit.com/2013/04/07/build-a-roadmap-for-demand-or-cost-driven-cloud-implementation

The CIO and the IT Department need to position as premium provider of IT and digital services and focus on value to cost.

In order to drive The Digital Transformation and Lead the Change and to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, “Time to Market”, Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

 

To deliver business value with IT we need to Focus on the Business Bottom LineHow fast can we get our products and services to market “Time to Market  & how can the IT department support the business from a Cycle Time and Cost Effectiveness perspective.

 

The IT Bottom line is that up to 40 % of current IT spend occurs outside the IT budget (CRM, Cloud). The IT department needs to position itself as a facilitator to IT services and effectively address emerging needs, market opportunities and demonstrate that the current Business Model is supported effectively. The IT department should facilitate the access to IT services to support new and current business initiatives. The business strategy emerge out of a number of initiatives that are successful or not. The IT department need to support the “Run” of day-to-day operations as well as new projects. The Cloud might particularly be of interest within this frame.

 

The execution of the defined business strategy is often a mystery (missing link) both on the Business and the IT side. The truth is that regardless of how well the executive team draws out the strategy in the boardroom the bottom line is that the business initiatives that were supported by clients succeeds, those not supported by clients (that do not get it) fail and disappear.

 

The CIO and IT department hence needs to support the run of the current business activities as well as new emerging initiatives that will eventually form the business strategy. The cloud (internal or external) would be particularly well placed to develop new services that can then be institutionalised as the success of the initiative is confirmed.

 

We believe that in order for the CIO and the IT Department to position as premium provider of IT services and focus on value to cost we need to understand the Business (IT) Strategy and how the IT department can deliver effectively to business objectives, that is to deliver business value with IT:
- What is the Business’s strategy and plans? , – What is the current business model that IT has to support? ,- Where could IT make a significant impact on the business? ,- Are there any further opportunities to use IT? , – How do we provide IT Services as we meet demand and cost drivers where the decision is to make (internal) or to buy (external service provider)?

 

We have identified 2 key trends for the CIO to focus on: – Differentiation (That is, how does IT provide a competitive advantage for the business), and – Cost (How does the IT Department deliver IT Services cost effectively). To do so we need to Build an effective IT Delivery Model to meet business needs and expectations as we leverage business strategy execution and business processes supported by an IT Service strategy (ITIL, IT – CMF, COBIT 5 (ValIT, CobIT 4.1, RiskIT), ISO 38 500, TOGAF and ISO 9001, ISO 27 001, COSO) delivered in a Business IT roadmap; that is how do we support business objectives and processes leveraged by IT and an effective IT Services strategy. Within this scope we would by definition address how we execute the IT service strategy (ITIL) Design – Spell out IT Activities from a demand and supplier side, Build – Set IT processes and key performance indicators, Run – Aligned to described ITIL activities and processes and full IT Financial Management (supported by delivery capability IT CMF, COBIT 5). Once services defined we can then decide where to run the application that support the IT and or Business Services (server / internal / external cloud / outsourced provider).

 

Within the frame of an acquisition up to 80% of the value realisation is (can be) on the IT side. The failure to address IT and the IT strategy can be an additional (1 out of 3) reason to M & A failure.

 

If we assume that to deliver business value with IT we need to support business objectives, the integration of a new entity is an optimisation of the current IT strategy (how we support business objectives and processes). We would obviously need to understand (and hopefully have the opportunity) how the current IT run before the purchase (IT due diligence) with full IT Financial Management to figure out the actual cost of delivered IT services (cost, consumption, chargeback). Once services defined we can then decide where to run the applications that support the IT and or Business Service (server / internal / external cloud / outsourced provider). We also need to define the purpose of the purchase (invest / divest) in the overall corporate strategy where it is of little use and a significant cost to integrate all systems in to a common backbone if the company is to be divested only a few years later. We could use an IT Scorecard to ensure that stakeholder expectations are met from an executive management, business line management, IT management and IT risk management perspective.

 

The CIO and IT department needs to support the run of the current business activities as well as new emerging initiatives that will eventually form the business strategy. The cloud (internal or external) would be particularly well placed to develop new services that can then be institutionalised as the success of the initiative is confirmed.

 

The CIO and IT Department that sit around and wait for the Business Strategy to be formalised to build an IT strategy and vision might not make the 18 months magic mark. The IT Bottom line is that the IT Strategy should support business objectives, with new technology as needed as the IT department delivers effective IT Services and innovative technology solutions to improve competitiveness, demonstrated and articulated.

 

My latest book ”Deliver Business Value with IT” that focus on how to execute the business strategy supported by IT demonstrate how we do this: Deliver Business Value with IT (the book) @ Amazon http://www.amazon.com/dp/B00FOQ6T46

WHAT THE REVIEWERS SAID: “ The “Deliver Business Value with IT” series is an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CIO level perspective. The reader will learn robust approaches to deliver services designed to support IT and Business drivers. The perspective that Martin spells out permits an overview of how to leverage existing frameworks but also to effectively support the execution of an IT Strategy aligned with the Business Strategy.”

“The focus that Martin takes in the “Deliver Business Value with IT” series will help in tackling the seven main non-technical challenges any CIO or other senior IT business leaders will face:

1. How and what should I communicate to whom in what way?

2. What to think of when it comes to competences needed to provide my IT services?

3. How to provide the best value at the best cost?

4. What to think of when ensuring efficient and effective delivery of projects?

5. How to establish a sourcing strategy and determining how to manage your vendors?

6. What are the best practices for managing my operations, and what to think of?

7. How can I best scan for and analyse emerging technologies?

The approach taken utilizing basic business management principles and applying them to how to run an IT department are explained clearly, and takes this publication above and beyond the standard publication proclaiming to ‘run IT as a business’. The 2 key trends identified in the publication for the CIO to focus on of “Differentiation” and “Cost” are a perfect example of this.

Mats Hultin, CIO Saab Defence and head of one of the most business centric IT organisations that I have seen consider “Deliver Business Value with IT” series as a toolbox that all CIO’s or IT Executives would like to have at hand and consult on a regular basis as they start to Design, Build and Run Effective IT Strategy execution to business needs.

 

CONTRIBUTED BY: Martin Palmgren, EVP .COMMUNICATE – Deliver Business Value with IT

CONTACT: martin.palmgren@communicatethecompany.com (mail) /

I currently work with a number of international groups on their “IT Value proposition” that is how do we deliver value to the needs of the business and demonstrate that we do so:

“How do our operations and IT systems function for the benefit of the business and our customers?”, “How do our core systems help / leverage our employees capabilities in their work for customers?”, “How do we increase performance and reduce cost?” Martin Palmgren is a seasoned Senior Business / IT Strategy and Transformation Executive that has addressed Strategy formulation and roll out for fortune 500 businesses internationally with a focus on how to ensure that the business strategy and objectives are supported by IT with an effective IT Strategy and Governance, that is how do we support business objectives and processes leveraged by IT and an effective IT strategy.

ON THE CONTRIBUTOR: Martin is an expert in “how to deliver business value with IT” ( http://deliverbusinessvaluewithit.com/ ) where he works with both Business and IT Executives to reach this objectives and has delivered best in class practice with major actors in the Pharma, Bank, Manufacturing and Insurance Sector to articulate the “IT Business Model” “This is how we deliver effective IT services to the business” and the “Business (IT) Value proposition” “This is how we support business objectives with services in a time to market perspective”.

He addresses how to build an effective “Cloud Business Model” to take full advantage of the flexibility and cost advantage that new cloud solutions permit to improve “Time to Market”, “Cost Effectiveness” and “Cycle Time”.

Martin has accompanied a number of IT consulting companies and editors in their “Go to Market” with Client acquisition, (Large) Account Introductions, Alliances (notably with BIG 5 consultancies), Market Position (Forrester, Gartner, Bright Talk) and position of the “Value Proposition” (discovery, competitive analysis of market offerings, road map to realign solutions portfolio and transform sales and delivery operations, develop new market strategy and execution plans, and drive sales transformation, acquisition of smaller actors).

An international thought leader, Martin is regularly brought in to ensure that transformation initiatives are on the right track.

What Is Disruption? A reflection by the team behind the New York Times

 

Disruption is a predictable pattern across many industries in which fledgling companies use new technology to offer cheaper and inferior alternatives to products sold by established players (think Toyota taking on Detroit decades ago). Today, a pack of news startups are hoping to “disrupt” our industry by attacking the strongest incumbent — The New York Times. How does disruption work? Should we be defending our position, or disrupting ourselves? And can’t we just dismiss the BuzzFeeds of the world, with their listicles and cat videos?

Here’s a quick primer on the disruption cycle:

1. Incumbents treat innovation as a series of incre- mental improvements. They focus on improving the quality of their premium products to sustain their current business model.

For The Times, a sustaining innovation might be “Snowfall.” 

2. Disruptors introduce new products that, at first, do not seem like a threat. Their products are cheap- er, with poor quality — to begin with.

For BuzzFeed, a disruptive innovation might be social media distribution. 

3. Over time, disruptors improve their product, usually by adapting a new technology. The flash- point comes when their products become “good enough” for most customers.

They are now poised to grow by taking market share from incumbents. 

 

A CASE STUDY IN DISRUPTION: KODAK

Kodak and its filmbased cameras were the classic incumbents: a traditional, respected company offer- ing a high-quality product to a mass market.

Then came digital cameras. Film companies laughed at the poor shutter speed and fuzzy images of early digital cameras.

The photos weren’t great, but digital cameras better addressed the user’s primary need: to capture and share moments. It was easier and cheaper to take a digital picture, download it onto your computer and email it to many people than it was to buy film, print dozens of high quality photos at a shop and mail copies to friends.

When the inferior and cheaper digital product became “good enough” for customers, it disrupted the incumbent.

Digital cameras seemed poised to own the market. Then came flip phone cameras. They offered even lower quality photos. And digital camera companies mocked their grainy images. But again, users opted for a lesser product that was more convenient. They’d rather have a “good enough” camera in their phone then lug a better but bulky digital camera. When the flip phone camera became “good enough,” it disrupted the incumbent. “

 

A willingness by notably salesforce to disrupt how the IT services are delivered requires a repositioning of the IT department. I have a boarded this perspective in “deliver business value with IT” that you can find @  http://www.amazon.com/dp/B00FOQ6T46

 

Please find the full report from the New york Times @: https://app.box.com/s/618qztt4g1fupw7p9s9n

 

 

An updated version of “Deliver Business Value with IT” is now available on Amazon

@  www.amazon.com/dp/B00FOQ6T46

What the reviewers said: “The focus that Martin takes in the “Deliver Business Value with IT” series will help in tackling the seven main non-technical challenges any CIO or other senior IT business leaders will face:

1. How and what should I communicate to whom in what way?

2. What to think of when it comes to competences needed to provide my IT services?

3. How to provide the best value at the best cost?

4. What to think of when ensuring efficient and effective delivery of projects?

5. How to establish a sourcing strategy and determining how to manage your vendors?

6. What are the best practices for managing my operations, and what to think of?

7. How can I best scan for and analyse emerging technologies?

The approach taken utilizing basic business management principles and applying them to how to run an IT department are explained clearly, and takes this publication above and beyond the standard publication proclaiming to ‘run IT as a business’. The 2 key trends identified in the publication for the CIO to focus on of “Differentiation” and “Cost” are a perfect example of this.

Further to this the focus and examples of non-technical KPIs used, provides a good framework for the CIO to communicate the state of how services are provided and how the company is maximizing its value of their IT assets.”

(Alex van der Kruit, is a senior IT executive with extensive experience in building and leading service organisations, and directing change management initiatives for leading global corporations. He has held positions such as Service Delivery Director at CSC, General Manager IT at Swedish Match, and is currently Business Systems Manager at Toyota Material Handling Europe)

@  www.amazon.com/dp/B00FOQ6T46

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