Innovation

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(No Transcript)
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Innovation EfficiencyThe CIO Trade-offDerek
WilcocksDimension Dataderek.wilcocks_at_za.didata.c
om
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The Firm Perspective Framing the Performance
Challenge
Alignment
Performance results from alignment or fit between
environment, strategy, and organisation
Source Stanford Graduate School of Business
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Perspectives on Strategy, Execution and Innovation
Execution Challenge / Trade-off
Unpredictable, confusing
More Realistic World and Organisational View?
View of External World (Environment)
Much Current Business Strategy IT Strategy
Comprehensible, controllable
Rational
Natural
Internal Process Proposed as
Source Strategy Framework, Strategy Safari,
Henry Mintzberg
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Strategy as Evolutionary Adaptation and Search
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Efficiency is about reaching the top of the
mountain youre on as quickly as possible
Innovation is about making risky jumps in an
attempt to reach higher peaks
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Every now and again someone makes a successful
leap to a higher peak
Luck plays a role, but so does making many
unsuccessful jumps
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Of course in a competitive world if you choose to
stay on a minor peak you die
You also die if you lose the race to climb to the
top of your peak
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Just when you think youve reached the top the
terrain changes
If you stop making jumps youll eventually die
anyway
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The Need for Effectiveness and Efficiency in
Delivering IT Services
Innovative Service
1st Class Service
The magic of AND
Effectiveness
Cost Effective Service
Poor Service

• Expectations
• People
• Sustainability
• Value

Efficiency
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Innovation and Survival

• Many executives and managers think the reason to
  innovate is growth

• In fact in the medium to long term innovation is
  about survival

1982
1994
The original Forbes was published in 1917. Only
one company - General Electric - is both still
in the Forbes 100 and has outperformed the SP500
since 1917
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Innovation in Physical Technologies

• Innovation in physical technologies
• Very high rates of movement along an S-Curve are
  not disruptive to industries as these movements
  are primarily about execution speed where
  incumbents usually have the advantage
• It is in fact incremental change along multiple
  dimensions that is disruptive and results in the
  jump to a new S-Curve
• Changes in ARCHITECTURE are more disruptive than
  changes in individual components

Discontinuity
Effort
Performance

• Innovation The Attackers Advantage, Richard N.
  Foster, 1986
• The Innovators Dilemma Clayton Christensen, 1997

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Innovation in Social Technologies
Jump Often
Fast Sure
Slow Uncertain
Climb Fast
Architecture
Culture
People
Routines
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Trade-offs in the Organisation of the Firm

• Exploitation
• Variation search over a limited range
• Focus on the current performance agenda clear
  goals, measures, accountability and disciplines
• Drive out slack ( resources not contributing to
  the delivery of the current performance agenda)
• Focus on hard elements architecture, routines

• Exploration
• Variation search widely, perhaps unbounded
• Slack abounds
• Celebrate failures
• Soft incentives (e.g. status), qualitative
  measures
• Focus on soft elements people, culture

Vulnerability catastrophic failure due to
inability to adapt to environmental change
failure to jump
Vulnerability inability to get to the top of a
new hill first due to fast following exploiters
failure to climb
The Modern Firm, John Roberts, 2004
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Innovation the key to Effectiveness
Sustain
Innovate

• Constant Adaptation

• Bottom up Processes
• Internal Transparency

• Strategic Wedge

• (Top down process)

Extreme Strategy Principles
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Applying the Lessons from Strategy to Information
Technology
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The Role of the CIO 1 Survive
Integrate Customer/Supplier
Business (Enterprise) Architecture
Business Innovation Capability
72 months
Business Process Reengineering
Technology Architecture
IT Strategic Capability
54 months
Governance Audit
Application Portfolio
Business Relationship
Time Frame for CIO Survival
36 months
Standardise Key Processes
Establish Digital Infrastructure
Operational Capability (Mix)
18 months
Processes Systems
Technology
People
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The Role of the CIO 2 Create the Platform for
Scale or How to Climb Fast
Break Down Business Silos
Break Down Technology Silos
Break Down People Silos
Integrate Customer/Supplier
Business (Enterprise) Architecture
Business Innovation Capability
72 months
Business Process Reengineering
Technology Architecture
IT Strategic Capability
54 months
Governance Audit
Application Portfolio
Business Relationship
Time Frame for CIO Survival
36 months
Standardise Key Processes
Establish Digital Infrastructure
Operational Capability (Mix)
18 months
Processes Systems
Technology
People
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The role of the CIO 3 Accelerate Information
Flows or How to Jump Often
Integrate Customer/Supplier
Business (Enterprise) Architecture
Business Innovation Capability
24 months
Multisource
Business Process Reengineering
Technology Architecture
IT Strategic Capability
12 months
Time Frame for CIO Survival
Governance Audit
Application Portfolio
Business Relationship
Standardise Key Processes
Establish Digital Infrastructure
Operational Capability (Mix)
6 months
Processes Systems
Technology
People
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Thank you