Tag Archive | "Innovation"

IT Transformation – Who Does Gartner Show Winning in the $3.6T IT Business? – Qmunity

Tags: Availability, Best Practices, BSM, Business Alignment, Business Service Management, CIO, Cloud, Cloud Computing, Cost Reduction, Forrester, Gartner, Innovation, IT Management, Service Value, Transformation


IT Transformation is and has been a hot topic for >20 years. Wow!  I was speaking to one of my analyst friends at Forrester not too long ago and we were chatting about how much waste exists in annual IT spend just “Keeping the Lights On” and how these metrics haven’t changed in >20 years. The answer has been simple, no competition, no catalyst for change.

This week I was reading an article from the NY Times Technology section, “Information Technology Spending to Hit $3.6 Trillion in 2012”, supported by information from Gartner and it pointed to this pent up demand for transformation within IT organizations. Much of the increase in spending is going to Cloud Service Providers and Consultancies even with economic challenges in Europe and China. There is an increase in Public Cloud spending by 20% representing considerable computing power and more efficient IT Systems due to complex systems, cloud computing and analytics. My reaction as I read the article was Wow again. Ironically, this comes on the heals of articles from the previous 2 weeks regarding the outage of the cloud and Amazon’s Ashburn, VA data center.

My first comment is no one outsources services because it is cheaper. Services are outsourced to create change that cannot be achieved from within. So let’s break this down into the great change that is underfoot and IT Transformation based upon cost, value and innovation.

Read full story here …….

Gartner Infrastructure & Operations Mgmt Summit – Road Trip Wrap-up

Tags: Analytics, Availability, BSM, Business Alignment, Business Service Management, CIO, Cloud, Gartner, Innovation, IT Investment, IT Management, Mobile, Monitoring, Performance, Service Level, Service Providers, Service Value, Transformation, Trends


I’m back from a couple of weeks of travel and most notably, the annual  Gartner Infrastructure and Operations Management Summit (IOM) the first week of June.  There were more than just a handful of aha moments, much churn in what has been a mature market and many great conversations on the solution showcase floor and hallways.  Let’s start with the opening keynotes on the first day:

10 Emerging Trends that will Impact Infrastructure and Operations – David Cappuccio

The trends are in last week’s InfoWorld article, “10 for 2012: Gartner’s Top Emerging Infrastructure Trends” and are as follow:

    • Consumerization of the Tablet
    • The Infinite Data Center
    • Resource Management
    • Mobility
    • Hybrid Clouds
    • Fabric Data Centers
    • IT Complexity
    • Big Data – Big Problems
    • The End of Service Desks
    • Virtual and Software-Defined Networks

David opens with the statistic of >75% of IT budgets are spent just keeping the lights on, operating, not driving the company forward.  IT didn’t see the (or didn’t want to see) the tablet coming to the workplace.  Just 5 years ago 1G of storage cost $7995, today it is 25 cents – that was yesterday! and I was 2 years away from my first cell phone, still had a pager!  We have LOTS of data to secure, not hardware or devices to manage, the focus must shift from the device to the information and data.  The Cloud will replace storage from the PC / Workstation to be accessible from any device, anywhere.

Even this old timer, slow adopter (me) is synching 3 devices via the cloud to share data across devices without the help of my company and I share that data with outside parties as appropriate due to the size limitations imposed by IT.  We all find a work-around!  At a minimum we each have 4 devices, yes, I have 2 phones, an iPad and a laptop, 5 if you count the Kindle I stopped using – have to keep Microsoft and Apple, Google and Blackberry all in check.  😉  I still live with the “Blue Screen of Death”, but have been seen checking the weight of that boat anchor of a Mac Book Pro.  :-)

The expectation is that no matter what we are using, it “just works”.  IT lost control of the environment a long time ago, now is the time to embrace the next generation and the self service culture.  Companies are now considering a stipen to aid in funding a device of the users choice lowering support and break-fix costs.  My bet is it happens within the year.

Another interesting statistic was for every 25% of functionality added to the current infrastructure, there is an increase of 100% in complexity.  The cloud is here, the business is subscribing with or without IT as I’ve posted previously out of frustration to deliver innovation over just operating.  We in IT are in catch up mode and need to move quickly.  With that said, we all need to be wary of the hype and focus on the value delivered and concentrate on the right delivery model for the value.

Of all the trends, the one indicating the end of service desks surprised me most from this conservative crowd and having spent the early part of my career in this market.  The more I have pondered this trend over the past week the more I agree and see it.  I have often posted and consulted that IT needs to stop turning support into a custom adventure and at 10% of an IT Operational budget, it is well suited for SaaS and/or outsourced.  Customers expect service now (no pun intended :-) and IT is diminishing it’s own value in the loss of productivity, especially with the next generation of workers.  IT needs to become proactive, embrace new technology and begin focusing on the right deployment options and securing the data / information, rather than device support and lock down.  This shift has occurred very quickly and the war already lost by IT.

Applications 2020:  The Impact on Infrastructure and Operations of Current and Emerging Trends in Applications – Valentin Sribar

To my surprise, an old friend presented this session, Val, and was quite an interesting topic and approach from an Operations outsider in front of 800+ Infrastructure and Operations leaders.  The first half of the session focused on the next generation worker and their expectations of technology.  I had to think about my baby nephew during this session (now 17) who grew up with a whole different view of technology and it’s capabilities.  Who, by the way, is the only person I’ll “text” with as it is his only means of communication and a communication method I dislike.  I think of one of the first applications I provided for him, a Crayola painting application.  My father and I watched a 3 year old at the time drag and drop the primary colors into his paint tray and paint a picture.  I with, my back to him, asked, “create and use purple, my favorite color”.  Sure enough he does it without question to my father’s exclaim, “how did he know he could do that?”, (dragging and dropping red on blue) I said, “because he didn’t know he couldn’t”.

This generation expects devices to just work, expects them to work together and expects to easily share data and applications across platforms and devices and communicate instantly in 140 characters or less.  My nephew doesn’t understand that if he texts me while I’m driving, what’s the delay.  Connectivity is instantaneous and global.  I travel globally, my nephew hears the action of a car race on the phone, turns on the tv to see it live, we text and IM across the globe as if I’m in his house daily and part of his daily life.  When he was born and I lived 10 hours away, I wanted to be sure we had a tight relationship.  Little did I know that in 6 short years the world would change and in a couple more years, distance would no longer be a challenge.  This is the next generation worker, not hindered by device, time or distance.

Development for the mobile world should be the default and workstation minority as an afterthought.  The user experience from these devices will be like jewelry, a microphone, speakers, cameras, gamification of applications, scoring and choice of applications, etc. etc. etc.  These workers expect an AppStore, not IT, to choose, download and just use in an instant – it just needs to work.  Apps and options are not one size fits all.

STOP what you are doing today and turn it upside down.  Reduce costs at the bottom to add value at the top and get away from one size fits all and join the value add discussion.  This is where Val provided several insightful slides and a paper (G00147079 – Application Leaders:  Stop Eating Profits and Capital with the Unnecessary Operational Expenses).

 

Both of these sessions set the tone for the remainder of the sessions and 3 days of the Summit that I’ll save for additional posts.  What this all points to is Change is inevitable, with Change comes Complexity and with Complexity and the need for speed comes Risk.  We all need to embrace the Change, learn to manage Complexity and mitigate/control Risk to take advantage of new technology and deploy innovation into our organizations.  As someone in the Service Management or Business Service Management market for quite some time, this was music to my ears.  The Cloud is the disruption creating the urgency for change, as well as the next generation.  Ignore the hype, focus on the value and choose the right deployment and technology options that will drive your business into the future.

The one thing that did strike me odd in most of the sessions was the use of the term “User”.  The reason this struck me odd was that the focus should be on the customer, less on the internal users, and driving the business.  Working to drive the business is about the organization in support of the customer.

As I entered the workforce, a southerner was transplanted in Boston and a year and a half later relocated to Texas with a New York co-worker and friend .  At that time our confusion was a result of different words and concepts like Round-abouts, The Green Monster, The Garden and BBQ of which I had no idea what the first 2 were, the third I thought was a botanical garden and the fourth was of course stringy pork with a vinegar based sauce and coleslaw sandwich versus steak on a bun.  We had dumb terminals and PC’s were off in the distance.  Change has come lightening fast.

I walked away from the Summit knowing it is about the service, driving revenue, embracing technology, ignore the hype and concentrate on the value, securing an unknown perimeter and creating freedom of the imagination.  Technology with Imagination – Endless Possibilities.

Thoughts?  Were you at the Summit?  What struck you the most?

Michele

It’s the Agility, Stupid! – Novell

Tags: Business Alignment, Business Service Management, Cloud, Innovation, Novell, Service Providers, Service Value, Transformation


The Hub Commentary_

I’ve commented in this similar vein on many posts this year and the cost calculation and business value is covered in my post and recorded presentation here on The Hub.  My friend Michael sums up this topic well with citations from InformationWeek and Forrester. It is not about the technology, it is about the service value the technology brings to the business, something those in the business service management practice have known for many years.

So what makes it different now and why is it so prevalent in the news?  That’s an easy answer, Competition ala service providers.  Today in fact I discussed just this topic with a global audience and why competition will be the catalyst for change or outsourcing this time.  Service providers are going direct to the business to sell their services.  They speak exactly the language the business wants to hear, make it simple to buy and this will push IT organizations to adopt a business service management practice or get outsourced.

I like the notion of a Chief Acceleration Officer.  I enjoy times and situations like this where there is a challenge to solve for and the requirement for change where I know most IT organizations are change averse.  IT has been in this cycle of 80% + spent on just keeping the lights on for more than 20 years.  This equates to 1-2% of revenue annually just running the operations and thus very little is expended to grow the top line.  This is crazy when technology should be driving business innovation and growth.

I challenge you to pick up this years Fortune 500 magazine and then pick up next years and see who takes over leading their industry and that will tell you who embraced technology to drive growth and create efficiencies within IT to shift that 80/20 pie to something more like 60/40.  I wholeheartedly agree with my friend Michael, it’s about the agility and business value that a technology brings an organization.  Efficiencies are good, but should not be the only focus.

How are you driving service value and agility to be the change in your organization?

Michele

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With the promise of cloud computing splashed across every headline today, it’s easy to lose track of where its greatest opportunities lie. Yes, saving money is important. It can help nudge the dreaded 80/20 maintenance-to-innovation ratio in the right direction. But when you’re thinking about the cloud, don’t stop there. It’s agility that can drive business growth and innovation, turning IT leaders into heroes.  (Read Full Article…)

CIOs Should Know that IT Is IaaS – Cloud Computing Journal

Tags: Business Service Management, CIO, Cloud Computing Journal, Competition, Infrastructure-as-a-Service, Innovation, Transformation


The Hub Commentary_

I agree with Don and his summary of this topic as it hits the core of any business service management practice – it isn’t IT and then the Business, IT is the business.  In some cases it is more prevalent that technology is driving revenue with online order processing and customer interactions.  In all cases I can point someone to how IT is the business in the supporting functions that drive the efficiency and effectiveness in a more behind the scenes nature.

There are 3 things Don calls attention to regarding IT and the focus now on driving revenue and lining up with business objectives: 1) Innovation where IT drives revenue very obviously, 2) Competition from the cloud providers and 3) Cost cutting driving bottom line margin.  We have focused too long and too much on the last, driving out costs, without automating so we can focus on the first one.  The catalyst for the “why now” question is the obvious, the second piece – the competition.

IT has not balanced growing and operating well in the past and has created opportunity for competition with new technology and buying options from the many cloud providers that are growing exponentially this year.  Investment must be made to automate the mundane operating to create intelligence for higher quality services, but also freeing resources to concentrate on innovation.

Are you balanced between growing and operating?

Michele

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InformationWeek has been out and about talking up their most recent CIO survey and keeps calling attention to the fact that one in three CIOs see creating a new business or business model as a driver in 2011. This is not a new phenomenon, but one in three is more CIOs than I would have intuitively thought, so I started to think about it.

(Read Full Article…)

Cloud Computing: A Sustaining or Disruptive Innovation? – CIO

Tags: Business Service Management, Cloud, Innovation, Transformation, Virtualization


The Hub Commentary_

Today, I might agree that Cloud is somewhat disruptive, but for the right vendors it will be sustaining.  The mere fact that Amazon led the charge to change the purchasing model indicates that there is a desire for change in the industry just as they changed online purchasing forever.  The conversation that shifts this from disruptive to sustaining is the business service management discussion regarding cost and value and the appropriate deployment option.

This comes down to the planning and the best use of service providers and technology in your environment to deliver high quality services and drive value (revenue) for your organization.  We tend to focus way too much time (85% of the IT budget – 1-2% of revenue) on just operating rather than driving revenue and innovation for the business.

It’s not about The Cloud, it’s about using technology to drive revenue and differentiating services for your business.

What are you doing to drive growth for your business?

Michele

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If you’ve read this blog over the past couple of years, it should be no surprise that I am a huge advocate of the theories of Clayton Christensen, author of “The Innovator’s Dilemma.” Christensen and his book were brought to mind this week by the cover story in Forbes about his severe health problems, his experience with the U..S healthcare system, and his prescriptions for how to fix it.  (Read Full Article…)

5 Questions to Help Recenter IT Design on the Business – CIO

Tags: Business Service Management, CIO, Innovation, Transformation


The Hub Commentary_

Business service management practices have always known business and technology are one and not ‘and’ one to another.  Designing services above the silos based upon desired business outcomes is absolutely the right approach, I wholeheartedly agree with Randy’s assessment and this has been at the heart of all business service management projects and practices.

Measurements – if you cannot measure it, it may not be worth monitoring and managing, let the business outcomes be your measuring guide.

Mapping – now map your underlying infrastructure to the top line services.

Automation – what automations and improvements can you make to the supporting infrastructure that will improve the top line outcomes.

Innovation – look at how applying new technologies can improve the capabilities in driving top line outcomes.

This is the transformation that the data center will need to move through in the coming year with a concept that is not new, business service management.

Is you data center IT or Business focused?

Michele

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Stop designing IT architecture around applications and start designing for business outcomes, says Forrester’s Randy Heffner. He shares five key questions to get you started. (Read Full Article…)

Global CIO: Why BMW Suddenly Loves Mobile Apps – InformationWeek

Tags: BMW, Business Service Management, Innovation, Mobile


The Hub Commentary_

IT spends >85% of its time just keeping the lights on.  Those who will lead their industries next year are realigning how IT works, taking advantage of automating tools and applying resources toward the development, deployment and operational support of new and innovative services for the customer.  Business service management practices have become the imperative this year rather than the “nice to have”.

Consumers are mobile, they expect connectivity, to interact with the their suppliers real-time, on-demand, from whatever device and where ever they may be.  The technologists that embrace the customer experience and drive automation into the routine, maintenance of IT will be the leaders of industry.

iPad2 was announced today.  Watch the video and how they think of the customer experience and something as simple as a cover to protect the device, but also functional in waking/sleeping the device, cleaning the screen and serving as a stand.  Customer experience is the name of the game and driving revenue.

How are you re-aligning your IT resources and growing revenue?

Check out this previous post and slide deck to see what it is costing you to not realign resources for good Business Service Management practices.

Michele

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You, too, should probably be thinking about tying your products to the mobile Internet, even if you think $100 million is a bit rich to throw at this opportunity. (Read Full Article…)

Cultural Barriers Stymie IT-Led Innovation – CIO

Tags: Business Service Management, Innovation, Transformation, Trends


The Hub Commentary_

Good question, does IT lead innovation?  It depends upon what you consider IT.  Application development and infrastructure architecture tend to be the outward face of using technology for a new or improved service that drives quality with the customer experience and/or new revenue with a new service.  However, while data center operations is often an afterthought, they should be part of the plan and build to insure success.

While data center operations does not develop new services and architecture, there is opportunity here to apply good business service management practices.  These practices  illustrate quality customer experience and speed to market with new services with control over risk with service enablement baked into the services.

IT led innovation is a team effort between applications development, infrastructure and architecture and data center operations as a single cohesive unit.

Michele

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The IT department won’t be able to lead business innovation projects if it has a bad reputation, says CA evangelist Steve Romero.  (Read Full Article…)

5 Innovation Opportunities for CIOs in 2011 – CIO

Tags: Business Alignment, Business Service Management, CIO, Cloud, Innovation, ITIL, Service Value


The Hub Commentary_

The theme of driving growth, innovation and value based upon the customer experience continues.  2011 will be a year of innovation and next year’s Fortune 500 list will see organizations swap places for the lead of their industry.  Very refreshing to see focus on technology again for innovation over back office automation.

My post of yesterday regarding ITIL generated many questions both in the Twitter and on The Hub regarding what replaces it and why did I post such blasphemy.  This article again solidifies the opinion.  The focus is the customer you sell goods and services to, not the end user in your company, technology for growth and innovation will be king in 2011.  Those focused on justifying ITIL projects will be left behind.

Again, I’m not against process for efficiency and there is a balancing act as this author states at the end of the article.  For far too long IT has been inwardly focused and thus turning up the heat of frustration by the business to drive to focus on services that your business offers to the market and driving growth.

I find this curious as technologist or maybe I’ve been on the software development side for far too long.  I thought most of us liked to work on new, cool, gee whiz things rather than just keeping the lights on.

Are you just keeping the lights on or driving innovation?

Michele

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Most of the CIOs I speak with are looking at the year ahead as an opportunity to drive innovation within their organizations, usually by automating back office activities. That’s a good place to start.  (Read Full Article…)