Download - NITCoF Intro short
Custom to CommodityBusiness & IT in the 21st century
What is happening?
Businesses face:
• Accelerating pace
• Business & IT convergence
• Significant opportunity for IT-enabled organisations
IT blamed:
• Slow, unresponsive, don’t “get it”
• Bogged down in maintenance
• Increases costs, reduces value, holds back the business
Commodity IT – the promise
• Low cost, no hassle
• Flexible, scalable implementation
• Easy to swap-out
Examples
• Office 365
• Google Apps
• iOS application suite
What is Commodity IT?
Handy investor’s definition* :
• An item should satisfy 3 conditions to be a commodity:
1. it must be standardized and, for agriculturaland industrial commodities, in a "raw" state;
2. it must be usable upon delivery; and
3. its price must vary enough to justify creatinga market for it.
(Potential) examples of Commodity IT?
• Various XAAS (SAAS, PAAS, IAAS).
• Consumer devices (laptops, tablets, smartphones, etc.)
• Big Data
• Identity carriers, e.g. ID-cards
• Sensors and components for robotics and IoT
• Robotics
• IoT
• Virtual reality, en andere “immersive” technology
• 3D-printing, Printed electronics
• Virtual currency (zoals bitcoins)
3
* http://www.investinganswers.com/financial-dictionary/commodities-precious-metals/commoditization-2343
Why are we still stuck with custom IT?
Road blocks
• Vendor lock-in
• Systems complexity
• IT department objections
• Security & privacy concerns
• Internal
• Knowing where to start
Outside assistance may help
• Third party as intermediary
• Mileage – seen it, done it before
• Specialist expertise– Security & privacy
– Supplier management
– Organisational change
– IT system interfacing
• Market insight
One slide says it all
Base
Build-up
Organisation as is, organically grown
Old World
IT custom built to follow
The Challenge
• Change the organisation• Stick to commodity IT• Connect old and new world IT
Drawbacks
• Business stuck in legacy IT• Costly maintenance
New World
IT as is, a commodity
Our Solution
• Market insight• Independence• Dedicated specialists
Organisation to adapt
Benefits
• Agile business• Low cost
About us
• Mission: maximise the performance of organisations throughthe effective use of commodity IT
• Our difference: Focus on organisational change to facilitate commodity IT
• We are an experienced young firm– Experience in IT, Management Consulting and organisational change
– Cutting edge expertise in the change domains vital to Commodity IT: • security & privacy
• supplier management, negotiations and governance
• organisational change
• IT integration
• Permanent presence in the Netherlands and United Kingdom– Delivery where needed
Generic approach
Discovery; opportunity scan for Standard IT
Impact analysis: required work practices
Change strategy
Business Case
Go / No-Go
Implementation plan
Implementation execution
Copyright No Consulting Firm BV
We mix and match our services to meet
our clients needs
Benefits of Commodity IT with our help
Benefits of commodity IT
• Cost reduction
• Shift Capex to Opex
• More agile business
Risk Reduction
• Security & privacy
• Project failure
• Cost overrun
Roadblocks neutralised
• Supplier resistance
• Vendor lock-in
• IT department objections
• Internal politics
Next steps – decisions to take
What’s next?
• Can you afford to ignore commodity IT?
• Do you have the expertise with the bandwidth to take it on, alone?
Decisions
• Shape project: target, scope and outline
• Define No IT Consulting Firm contribution
• Go
Additional information
Discovery; Opportunity Scan for Standard IT;
Wardley Mappingcc
• We spot opportunities for commoditization
• Wardley Mappingcc as a tool
• Which components can move to the right?
CC Creative Commons Simon Wardley (CSC LEF)
Evolution
Step 3
Evolution
Va
lue
Ch
ain
Change strategy; Matrix of Change *
We work with you to plan the change
• How to implement work practices
• Holistically
• From existing to target practices
*Erik Brynljofson a.o. 1996
• We help bridge customer-supplier gaps– External suppliers need special attentation
• Majority of an organisation’s activity is in suppliers (78% *)
• Commoditization puts business critical activities in the hands of suppliers
• Commodity suppliers are remote and not directly controlled
– Internally, two worlds inside the organisation through commoditization may cause friction
• Standard, no exceptions, internal supplier (Wardley right side)
• Custom, innovations, demand (Wardley left side)
• Tool: Relationship Spectrum© for customer – supplier collaboration
* Proxima Consulting Group© Contrasticon
Supplier management: Relationship Spectrum
Pivotal values and culture
• Zeta Process© highlights values and culture that hinder as well as help transition
• offers advance notice of key areas to address to ensure strong and swift engagement
• implications for leadership
Current behaviourCurrent behaviour
Necessary future
Values and Beliefs
Necessary future
Values and BeliefsCurrent Values and
Beliefs
Current Values and
Beliefs
Desired future
behaviour
Desired future
behaviour
Implementation plan
We work with you to plan realistic implementation• Establish PMO• Work practices to detailed specification
– Defined standard products and services– Required non-standard changes (org, process, ..)
• Product & Supplier strategy• Organisational change, security strategy• Define baselines (finance, org assessments, IT performance, ..)• Roadmap, Planning• Finance
Implementation execution
We execute implementation, reliably
• Set baselines (finance, org assessments, IT performance, ..)
• Product & Supplier selection, contracting, collaboration
• Execute system & org changes– Activate standard products and services
– Implement non-standard changes (org, process, ..)
• Organisational change (interventions, monitor)
• Programme mgt (Roadmap, Planning, Finance)
• Security and Risk management