nitcof intro short
TRANSCRIPT
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Custom to CommodityBusiness & IT in the 21st century
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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
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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
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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
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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
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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
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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
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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
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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
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Additional information
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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
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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
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• 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
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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
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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
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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