A Research Update based on market research information

Optimizing Adoption for Business Transformation

Todd RaySenior Information Worker Business Strategy Consultant, BVPS

Bob AndersonSenior Director, Information Worker Business Strategy Consulting Group

2 | July 2009

CopyRighT And disClAimeR noTiCeThe information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication.

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3 | July 2009

Table of ConTenTs1 executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2 introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 An evolved View of software Adoption, Change management, and Business Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 .1 What Is Adoption? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 .2 Who Should Care About Adoption? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3 .3 For Which Software Technologies Is Adoption Typically Considered? . . . . . . . . . . . . . . . . . . . . 7 3 .4 When Is Software Technology Considered “Adopted”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.5AddressingAdoptionfortheOffice2007ClientandOfficeSharePointServer2007 . . . . . . . 9 3.6WhatSpecificFactorsImpactAdoptionofaGivenTechnology? . . . . . . . . . . . . . . . . . . . . . . . . 9 3 .7 Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3 .8 When Do Adoption and Change Need to Be Considered in the IT Lifecycle? . . . . . . . . . . . . 11

4 Adoption Best practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4 .1 Communities of Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4 .2 Horizontal Adoption Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4 .3 Vertical Adoption Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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1 exeCuTiVe summARy

Enterprises are increasingly using “software adoption” as one of the leading indicatorsofthebusinessvalueassociatedwiththeirsoftwareinitiatives.However,theadoptionofmanysoftwareinitiativesisimpactedbyfunctional,organizational,cultural,andend-userspecificfactors(forexample,technographic,psychographic,demographic,andsoon).Thesebarrierslimitthebusinessvaluethatcanbederivedfromsoftwareinvestments.Asaresult,companiesneedtobothpromotebasicadoptionoftheirITinitiativesandproactivelyaddressorganizationalandend-user change to ensure true business transformation, especially in tough economic times .

In addition to addressing the horizontal issues related to platform adoption, customersmaywishtoderivefurthervaluefromtheirinvestmentsinMicrosoft® softwarebydevelopingverticalbusinesssolutionsontopoftheirplatform.

ThedevelopmentofadoptioncapabilitieswithinITorganizationsisanagendaworthyoffurtherconsiderationasITtakesamoreproactiveroleindrivingbusinessvaluethatisfocusedonthetopline.Basedonexperienceguidingsome of Microsoft’s largest customers through their software implementations, Microsoft’sInformationWorkerBusinessStrategyConsulting(BSC)teamprovidesbestpracticesandaprogrammaticapproachtohelpnewandexistingcustomersaddresshorizontaladoptionbarriers.Atthesametime,weshowcaseverticalsolutionsthathighlightthevaluecustomerscanachievewithinvestmentsinInformation Worker software .

2 inTRoduCTion

Times of economic uncertainty often require enterprises to undergo strategic business transformations to adjust to market conditions . These transformations may include changes to organizational capabilities and structures, personnel roles and responsibilities, processes, and technology . As a result, IT departments are increasinglyexpectedtodeliveranoptimizedtechnologyinfrastructurethatgivespeopletherightsetofflexible,integrated,andeasy-to-usetools.

Anoptimizedinfrastructuremaximizestherangeofopportunitiesthattransformational change brings, and at the lowest possible cost . To address theselow-costtechnologyneeds,MicrosoftprovidesitscustomerswithproductsandservicesthatoptimizeITinfrastructure and business productivity,enableconsolidationof technology platforms and vendors,andhelprealizesignificantcostsavings.

A large U .S .-based energy company,forexample,deployedMicrosoft®OfficeSharePoint® Server2007andMicrosoft®Office2007clientsacrossitsglobalbusiness units . This deployment allowed a phased retirement of the company’sexistingcollaboration

The Adoption equation

Figure 1

Business soluTions

hoRiZonTAl AdopTion pRogRAms

unrealized Value

Time

Valu

e to

Firm Forecasted

level of Adoption

Actual level of Adoption

Total Cumulative software investment

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andinformationmanagementsolutions.Theresult:significantcostsavingsandcompliancebenefits.

However,technologychangeonlygoessofarinbusinesstransformations.SignificantITinitiativesalsorequirechangeatthepeople,process,andorganizationallevels.IT,therefore,isexpectedtodomorethanjustdeliveranoptimized infrastructure . The department needs to not only implement and deploy thetechnologychangebutalsoprovidetheenablingcapabilitiesthatwillpromotebasicadoption.Inaddition,theITdepartmentneedstoofferservicesthatwillpromotebehavioralchangeandensuretruebusinesstransformation(seeFigure1,“The Adoption Equation,” on page 4) .

BecausetheresourcestodeliverthesecapabilitiesdonotexistinmanyleanITorganizations, adoption and change are not addressed adequately . The result is ITinitiativesthatfailtoachievetheexpectedbusinessresults,frustratingbusinessusersandunderminingthecredibilityoftheITorganization.Indifficulteconomictimes, neither of these consequences can be left to chance .

To help understand how focusing on technology adoption and both organizational and end-user change can help transform a business, this white paper highlights the importance of aligning adoption and change management programs with ITinitiatives.

3 An eVolVed View oF soFTwARe AdopTion, ChAnge mAnAgemenT, And Business TRAnsFoRmATion

Traditionally,ITdepartmentshavefocusedonplanning,delivering,andoperatingtheITservicesrequiredtomeetbusinessneeds.MicrosoftcallsthisprogressiontheframeworkformanagingITlifecycles(seeFigure2,“MicrosoftOperationsFramework,” at right) .

Withtherecentemphasisondrivingandquantifyingbusinessvaluefromtechnologyinitiatives,organizations are increasingly augmenting their deploymentandoperationsfocuswitheffortstodriveand quantify “adoption”—now widely used as the macro-indicatorofasoftwareinitiative’ssuccess—and“change management”—a structured approach to transitioningindividuals,teams,andorganizationsfroma current state to a desired future state .

BusinesstransformationassociatedwithanITinitiative,therefore, requires a focus on deployment, adoption, andchangemanagement,typicallyinoverlappingsuccession(seeFigure3,“BusinessTransformationThrough Adoption and Change Management,” on page 6) .

3 .1 what is Adoption?

Modern notions of technology adoption date to the 1950s.TheyarebasedonaTechnologyAdoptionLifecyclemodelfirstusedtotrackthepurchase

microsoft operations Framework (moF)

Figure 2

PLAN

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n Business/iT Alignmentn Reliabilityn policyn Financial management

portfolio

n envisionn project

planningn n Buildn stabilizen deploy

project plan Approved

ReleaseReadiness

n governance, Risk, and Compliance

n Change and Configuration

n Team

policy & Control

n operationsn service

monitoring and Control

n Customer servicen problem

management

service Alignment

operational health

6 | July 2009

patterns of hybrid seed corn by farmers in Iowa and later to predict how new ideas and technologies spread in different cultures and geographic regions .1 The model describedtheadoptionoracceptanceofanewproductorinnovation,accordingtothedemographicandpsychologicalcharacteristicsofdefinedadoptergroups.

TechnologyAdoptionLifecycleworkledtotheDiffusionofInnovationtheoryin1962 .2 Created by one of the same researchers, this theory:nDescribed how, why, and at what rate new ideas and technology spread

through cultures .nFocused on the conditions that increase or decrease the likelihood a new idea, product,orpracticewillbeadoptedbymembersofagivenculture.People’sattitudes toward a new technology are the key element in its diffusion .

nHypothesizedthatinnovationsspreadthroughsocietyinabellcurve,withearlyadoptersselectingthetechnologyfirst,followedbythemajority,untilatechnologyorinnovationisincommonuse(seeFigure4,“DiffusionTheoryBellCurve,”onpage7).

GeoffreyMoorepopularizedthisdepictionoftheprocessofadoptionovertimein Crossing the Chasm .3 In his book, Moore suggested that, for discontinuous or disruptiveinnovations,thereisagap—orchasm—betweenthefirsttwoadoptergroups(innovatorsandearlyadopters)andthatthischasmcouldbebridgedthrough marketing and other efforts . Because Moore’s theories are only applicable todiscontinuousordisruptiveinnovations,theoriginalTechnologyAdoptionLifecyclemodelstillbestdescribestheadoptionofcontinuousinnovations—thosethatdonotforceasignificantchangeofbehaviorbythecustomer.

“Technology adoption” is now a common phrase that indicates the degreetowhichaparticulartechnologyisbeingusedwithinadefinedcustomer base . “Enterprise software adoption”—byextension—indicatesthedegreetowhichagivensoftwareproduct,orgroupofproducts, is being used within an organization as a whole . The phrase “softwareadoption”alsodefinesthestandardizeduseofasoftwareproducttoaddressaspecificbusinessneed.

Incontrast,“softwaredeployment”isthedeliveryofsoftwaretoanenduser(forexample,Office2007)oranorganization(forexample,OfficeSharePointServer2007)anddoesnotincludeusageofthatsoftware—althoughitisobviouslyaprecursor.

3 .2 who should Care About Adoption?

The importance of software adoption depends on an organization’s referencepoints.Forexample:nThe enterprise as a whole is concerned with business and IT

performance and with making sure that its business units and end usershavetherighttoolstogetthejobdone.ItisalsoconcernedwithoverallITcostsandwhetherunitprocesscostsaretoohigh.

1 Beal,GeorgeM.,JoeM.Bohlen,andEverettM.Rogers.“Validityoftheconceptofstagesintheadoption process .” Rural Sociology,22(2):166-168.1957.2 Rogers,EverettM.Diffusion of Innovations . New York, N .Y .: Free Press . 1962 .3 Moore, Geoffrey . Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. New York, N .Y .: HarperCollins Publishers Inc . 1991 .

Business Transformation Through Adoption and Change management

Figure 3

business Transformation

Change Management

adoption

Deployment

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nBusiness unitsareconcernedwiththeirperformanceandwithhavingtherighttools to get the job done . They are also concerned with how much they are payingforITservices,thevaluetheygetrelativetotheircosts,andonlypayingforthingstheyuse.Thus,ifabusinessunitpaysforITservices,itcaresaboutnotonly whether software is adopted but also where and how it is adopted .

niT organizations are concerned with what a typical business unit cares about . Also important are the total cost of ownership of their technology portfolio andwhetherbusinessunitsactuallyusethesoftwareandservicestheyprovide.Inotherwords,ITcaresaboutprovidingitsservicesinawaythatensures adoption and end-user satisfaction .

nend users are not really concerned with software adoption in and of itself . Theycareabouthavingtherighttoolstodotheirjobsandachieveindividualperformance milestones while sustaining the performance of their business unit and the company as a whole .

3 .3 For which software Technologies is Adoption Typically Considered?

CompaniesthatbuyMicrosoftsoftwareareconcernedfirstwithdeployment—gettingthesoftwareouttotheservers,desktops,andmobiledevicestowhichit is targeted—and then with adoption—getting people to use the software and obtainingbusinessvaluefromit.

Toensureproperandcost-effectivedeploymentandtopromoteadoption,Microsoftcustomerstypicallyinitiateavarietyofinterrelatedactivitiestiedtoeachof the following Microsoft technologies:nOperatingsystems(forexample,Microsoft® Windows Vista®)nServer-basedplatforms(forexample,OfficeSharePointServer2007,

Microsoft®Exchange2007,Microsoft®OfficeCommunicationsServer2007)nPackagedsoftwareapplications(forexample,Office2007clients)nCustomsoftwareapplications(forexample,thosebuiltonMicrosoft® .NET and runningonOffice2007clients,OfficeSharePointServer2007,orboth).

AdoptionalsoappliestoMicrosoft’sonlineserviceofferingsandhybridusagemodels(softwareplusservices)inadditiontomobiledeviceusagescenarios.

ThiswhitepaperusesadoptionoftheOffice2007clientandOfficeSharePointServer2007asreferencetechnologies.However,therecommendationsprovidedalso apply to other Microsoft and non-Microsoft technologies .

3 .4 when is software Technology Considered “Adopted”?

Althoughthegenericdefinitionofadoptionmaybevalid,thepointatwhichagivensoftware technology might be considered “adopted”variesaccordingtotheobjectivesandperspectivesofthesponsoring(orreceiving)organizationandthesoftwareproduct or solution in question .

Figure 4

diffusion Theory Bell Curve

early Adopters

13 .5%

early majority

34%

late majority

34% laggards

16%

innovators 2 .5%

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organizational Variation

Say,forexample,ITrollsoutaproductto90percentofanorganizationand55percentoftheenduserswithaccesstoituseaspecificsetoffeaturesrelatedtothenewproduct’svaluepropositionatleastonceperweek.Inthisexample,IT—asthe sponsoring organization—might consider the product adopted if its adoption metricis“percentofpeoplewhohaveaccesstoaproductandwhoarealsousingitatleastonceperweek”andthedepartment’sthresholdvalueis50percent.

Ontheotherhand,areceivingbusinessunit(forexample,HumanResources)payingforthesoftwareonacharge-backbasismayhaveahigherthresholdvalue(forexample,60percent)orfrequency/type-of-useexpectation,so55percentutilizationwouldfallshortofthatunit’sdefinitionofadoption.Additionally,thebusinessunit’smetricmaygobeyondgenericuse—forexample,usagethatdemonstratesameasurableimprovement/outcomeinone(ormore)specificbusiness process .

product Variation

Views of adoption as it relates to different types of software can be illustrated by thedifferencesbetweenOffice2007clientadoptionandOfficeSharePointServer2007adoption.

Tosomedegree,theOffice2007clientisadoptediftheaverageenduserutilizesthe basic features of Microsoft®OfficeOutlook®2007,Microsoft®OfficeWord2007,andsoon,whichistypicalformostInformationWorkerswhohaveaccesstothesetools.Muchhigherdegreesofadoptionandvaluearepossible,however,when the following are true:nAdditional,uniqueOffice2007featuresareused(forexample,OfficeSharePointServer2007integrationfeaturesinOfficeOutlook2007,buildingblocksforpreformattedcontentinOfficeWord,richerconditionalformattingin Microsoft®OfficeExcel®2007,newandimprovedeffectsandgraphicsinMicrosoft®OfficePowerPoint®2007,anduseofMicrosoft®OfficeGroove® 2007andMicrosoft®OfficeOneNote®2007,andsoon).

nOfficeBusinessApplications(OBA)areusedtoexposeenterprisebusinessdata to and integrate that data with desktop tools and other applications .

Becausethissortofusagetypicallyhappensoutin“thebusiness,”ITmaynothavethevisibilitytosupportit.Toovercomethisissue,thedepartmentneedstoengagemorecloselywithendusersduringandafterdeploymentifitistohaveabroaderinvolvementinandimpactontechnology-basedbusinesstransformation.

GiventhevarietyofpurposesforwhichOfficeSharePointServer2007canbeapplied across the enterprise, its adoption may be a much trickier issue . An organizationmay,forexample,deployanenterprise-scaleportal,teamsitesforcertain business units, and Microsoft®OfficeSharePointMySitesforallInformationWorkers.Inthisscenario,theorganizationmayhavedifferentadoptioncriteriafor each site type in addition to different measurement methods . The portal, for example,couldtakeoffandhaveacceptableadoptionacrosstheboardwhilethe team sites could take off in some parts of the business but not others . Some organizationsmayalsohavecustomintegrationsandline-of-businessapplicationstiedtospecificbusinessprocessesthatresultindifferentadoptionlevelsandadoption usage patterns .

suCCess CRiTeRiA And meAsuRemenT oF Business VAlueOftenoverlookedinadoption-related programs are the criteria involvedinthedefinitionofsuccessand the ongoing measurement of and reporting against these metrics .

To purchase, implement, manage, and support software on an ongoing basis, companies typically incursignificantcapitalandoperatingexpenses.Assumingthatbusinessjustificationsfortheseexpendituresareperformed,companiesmayalsohaveprojectedreturnoninvestmentfiguresassociatedwithtargetedbusinessbenefitsforthelifeoftheirproject(s).

A key part of tracking progress against these projections is to benchmark baseline data before the implementation and then track current use . Once these data points areavailable,adoptionbenefitscanbemeasuredovertimeastheyrelate to chosen success criteria . This data also can be compared against projected demand and potentialvaluecurvestodeterminethe gap between projected, actual, andpotentialvalueoftheplatform.

Based on this success criteria data—collected and calculated at some frequency—companies can continue to justify operating costs and future programs and, in the meantime,showcasethevaluesoftwareinvestmentsbringtothebusiness . In addition, companies can use the data to both adjust their strategy and reprioritize their efforts surrounding software initiativessotheyarebetterfocusedon desired results .

9 | July 2009

In summary, the real question of whether a software technology has been adopted—ornot—dependsontheenterprise’s(andtheconstituentorganizations’,asapplicable)definitionofandcriteriaforadoptionforaspecificproductandany sub-products . It also depends on the enterprise’s understanding of what the technologycandoinsupportofitsbusinessneeds.Adoptiongoalsmayvaryaccordingtogeography,organization,end-usersegment,andworkforcestyles(forexample,whereanindividualexpectsordesirestowork).

Additionally,asshowninFigure4,“DiffusionTheoryBellCurve”(onpage7),adoptionforatechnologyorsolutionmaypeakorwaneovertimeasitsapplicabilityand/orcompetingtechnologiesorsolutionseitherbecomeavailableorexhibittheirownlifecycle.ThisfactisgenerallyanongoingareaoffocusforITaspartofthedepartment’sportfoliomanagementinitiatives.

Tohelpmeettheirobjectives,enterprisescanimplementtargetedadoptionprogramstoaddressthefactorsthatinfluenceadoptionandmeettheirstatedbusinessgoals.Technicalimplementationobviouslyhasanimpact,too,butisoutside the scope of this white paper .

3 .5 Addressing Adoption for the Office 2007 Client and Office SharePoint server 2007

AdoptionprogramscenteredaroundanewversionoftheOfficeclient(forexample,Office2007)typicallyrelatecloselytotheobjectives(suchasincreasedproductivity)andstatedvalueproposition(suchasuseoftheFluentUIornewfeaturesinOfficeOutlook,OfficeWord,OfficeExcel,OfficePowerPoint,OfficeGroove,OfficeOneNote,andsoon)forthenewversion.Theseprogramsalsoincludetrainingonthenewfeaturesandtheeffortstoinfluenceanyfactors known to impact adoption .

TheOfficeSharePointServer2007platformcanbeusedforavarietyofpurposeswithinanorganization(seeFigure5,“OfficeSharePointServer2007AdoptionCycle,”atright).AdoptionprogramscenteredaroundOfficeSharePointServer2007closelyrelatetoboththeobjectivesforeachtargetusagetypeandthestatedvaluepropositionfor each of these types . Such programs may also focus on any requiredtrainingandtheworknecessarytoinfluenceanyfactorsknowntoimpacttheadoptionofagivenapplication.

3 .6 What Specific Factors Impact Adoption of a Given Technology?

Anumberoffactorsinfluencethespeedanddegreetowhichsoftware technology is adopted within an organization . These include functional factors, organizational and cultural factors, and end-user adoptionprofiles.

Functional Factors

nAvailability:Isthesoftwareeasilyavailabletoendusers,bothinitially and later?

nBusiness problem/benefits:Doesthesoftwareaddressaspecificbusiness problem or is it left up to the end user to decide for whatitshouldbeused?Arethebenefitsdocumentedand/oreasy to realize?

Figure 5

Office SharePoint Server 2007 Adoption Cycle AsuserfamiliarityandenthusiasmforOfficeSharePointServer2007grow,divisions,departments,teams,and—ultimately—individualsadoptthetechnology.

Personal My siTesn permanentn personal information n public/private Views

DeParTMenT & TeaM siTes

Division PorTals

ProjeCT TeaM siTes

CorPoraTe PorTals

n permanent n dashboardsn Business intelligence n Business processn Applications management

n permanentn Knowledge mangement n information sharing

n short-livedn Collaboration

n Controlledn Tightly

governedn push

Content

n Ad hocn loosely

governedn push/pull

Content

10 | July 2009

nFunctionality/analogous solutions: Does the software offer unique capabilitiesnototherwisefoundinexistingsolutionsavailableatwork?

nEase of use/training: Does the software require a lot of training or can end users easily access and start using it? If training is required, are multiple modes oftrainingavailabletosuitindividuallearningstyles?

nCompatibility: Is the software compatible with other solutions and processes currentlyinusewithintheorganization?Ifnot,whatmightendusershavetogiveup?

nComplexity:Isagivenbusinessprocessmoreorlesscomplexbecauseofthesoftware? Is that process easier or harder to complete with the software?

nMobility: Does the software meet the needs of mobile users?

organizational & Cultural Factors

nExecutive/business sponsorship/mandate: Is the technology mentioned and used by senior leaders within the organization? Does leadership mandate the use of the technology?

nIncentives/penalties for non-use: Areend-userincentivesinplacetoencouragebroaderusageofthetechnology?Alternatively,aretherepenaltiesfornotusingit?Willtheexistingtool/solutionberetiredorwillitstillbeavailableasafallbackoption?

nUsage by peers/teams/thought-leaders: Do peers or people in the end-users’teamsutilizethetechnologyand/orinfluenceotherstouseit?Doknown thought-leaders use it?

nAwareness/communications: Are potential end users aware of the technology? Do they understand where it can be applied to address their business/role-basedneeds?Dotheyunderstandhowtogetinformationontrainingandsupport?Andbeyondsupport(consulting),towhomcantheyturntoacceleratespecificusecasesthatwilllikelyincreaseuptakeandadoption? How well are successes showcased within the organization to furtherimproveawarenessofthetechnology?

nSupport:Isapplication,online,andhelpdesksupportavailabletousersandeasy for them to access?

nConsulting:Istherein-depthhelpavailableinternallytoaddressspecificbusiness needs?

End-User Adoption Profiles

Organizational,businessunit,rolespecific,geographic,technographic,psychographic, demographic, and other factors, all affect an end user’s adoption profile,whichinturncanbeusedtodefineanend-usersegment’spropensity,speed, and usage patterns related to adoption .

3 .7 Change management

Changemanagementisastructuredapproachtotransitioningindividuals,teams,andorganizationsfromacurrentstatetoadesiredfuturestate.ForanITinitiative,changemayaddressbothend-userandorganizational-leveltransformationstobetter meet business goals .

Change management is a structured approach to transitioning individual,teams,andorganizations from a current state to a desired future state .

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Like adoption, which has implementation and deployment as prerequisites, true changemanagementthatleadstoparticularbusinessoutcomesfirstrequiressuccessfultechnologyadoption.Assuch,adoptionisakeyfirststepintheoverallchangeandbusinesstransformationprocesses.Adoptionprogramsprovidethetrainingprograms,materials,services,andorganizationalcapabilitiestobuildindividualproficiencyonthenewtechnologyand,therefore,ensurethatproperhabitsareadoptedwithrespecttothenewlyavailabletechnology.

Following(orinparallelwith)thefirststepofensuringadoptiontoacceptablelevels,changemanagementprogramscanthenaddresssubsequentlevelsofchangebyinfluencingbehaviorandculture.Forexample,howindividualscommonly use the technology to manage their working relationships and collaborate in a way that results in business transformation .

Similartohowadoptionprogramsareoftenoverlookedorunderfundedrelativetostandarddeploymentandoperationalinvestments,theimpactofchangeonpeople and organizations may be neither properly addressed nor addressed at all—especially in economically challenged, resource-constrained times . The result isITinitiativesthatfailtoachieveexpectedbusinessgoals(seeFigure6,“HowAdoptionLevelsAffectBusinessResults,”below).

When change management programs are aligned with IT implementation, deployment,andadoptioninitiatives,thefollowingbenefitsarepossible:nDesiredbusinesschangehappensfasterandmoreefficiently.nBusinessresultsoftheITinitiativereachhigherlevels.Thepotentialoutcomeisraisingperformancelevels,reducinglearningcurves,anddrivingtheorganization through the transition to the new situation with less disruption and at a lower cost .

3 .8 when do Adoption and Change need to Be Considered in the iT lifecycle?

EnsuringvaluethroughadoptionandchangeinitiativesisimportantthroughouttheITlifecycle(seeFigure7,“AdoptionandChangeInitiativesRemainKeyThroughout the IT Lifecycle,” on page 12) .

projects

Whenconsideringand/orimplementingITinitiatives,ITdepartmentsandsponsoringbusinessunits(asapplicable)needtodothefollowing:nConsider potential adoption when making abusinesscaseforaparticularinitiative(forexample,targetingthepotentialnumber,location, and types of end users) .

nPlan for and implement adoption programs that allowtheITinitiativetoscaleouttothebusinessinthemostcost-effectivemannerthatalsoensuresbusinessusageandbenefitsrealization.

nConsider the potential change management required to realize potential business transformation .

how Adoption levels Affect Business Results

Figure 6

business Transformation

Change Management

adoption

Deployment

higherlower

higher lower

BusinessBenefit

Typicalinvestment

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Thefollowingexamplesshowspecificadoptionandchangeconsiderationsastheyrelate to projects:

Business Case nEnd-useradoptionprofiles:Identificationofwhowouldpotentiallyusewhat

aspects of the candidate offering and what their adoption patterns are likely to be .

Planning and DevelopmentnTechnology planning and implementation: Inclusion of the right technical featurestomeetcontextual,end-user,andbusiness-specificneedsbasedonestablished end-user and business requirements .

nAdoption/changemanagementplanningandreadinessdevelopment:Inclusionoftherightelements(forexample,communicationsandtraining)todriveadoptionandthedesiredchange.

nGovernanceplanningandimplementation:Settinguptherightgovernancestructure to ensure adoption success .

Roll Out nTechnology deployment: Roll out of technical features according to a plan that

ensures successful adoption . nCommunications: Communication of launch dates, training, Web sites supportingtheinitiative,andsoon.

nTraining:Alternativemethodstoensuresuccessfuladoption(forexample,computer-based training [CBT], Web-based information, workshops, and so on) .

nSupport:Embeddedwithintheapplication,Web-based,andavailableviaatraditional helpdesk set up to address end-user needs .

Ongoing OperationsnAdoption measurement:

Measurement of initial and ongoing usage based on system analytics,surveys,andsoon,versusbaselinemetrics.

nAssess and address recalcitrant employees or processes: Measure and modify adoption programs to address these obstacles and meet goals .

nQuantifybenefits:Calculatebenefitsbasedonregularmeasurement to justify future supportandinitiatives.

4 AdopTion BesT pRACTiCes

The goal of collaboration and communication technology is to helpindividualsandgroupsshareinformation about business goals

Adoption and Change initiatives Remain Key Throughout the iT lifecycle(MOF=MicrosoftOperationsFramework)

Figure 7

PLAN

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n Business/iT Alignmentn Reliabilityn policyn Financial management

portfolio

n envisionn project

planningn n Buildn stabilizen deploy

project plan Approved

ReleaseReadiness

n governance, Risk, and Compliance

n Change and Configuration

n Team

policy & Control

n operationsn service

monitoring and Control

n Customer servicen problem

management

service Alignment

operational health

BusinessCase

project(s)

Rollout

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morefrequently,meaningfully,consistently,andefficiently.(Forexample,thistypeoftechnologycanhelpclosedealsfasterandmorecosteffectively,producemarketing programs faster, and produce products faster .) It can be a challenge for thesesameindividualsandgroupstokeepupwiththeirday-to-dayworkstreams.However,makingchangestocollaborativebehaviorsmaybedifficult,unlessthebenefitsofusinganewtoolorprocessareimmediatelyobviousandthesolutionitself does not appear to require more work on the part of end users . Thus, when software technology is deployed, additional effort is often necessary to ensure adoption and use for business purposes .

WehaveseenthefollowingbestpracticesforpromotingadoptionacrossMicrosoft’s base of enterprise customers:nSelf-maintaining “collaboration communities of practice”n“Horizontal” adoption enablement programs and organizational structuresnShowcasepilotsthatdemonstratethevalueof“vertical”solutionsforhigh-valuebusinessprocesses

Eachbestpracticevariesinitsdevelopmentandmaintenancecosts,overallcomplexity,reach,andperceivedvalueorcapabilitytocreateawarenessofvaluewithintheorganization(seeFigure8,“AwarenessofValue,”below).

Forthebestresults,manyofourcustomersfirstinvestincommunitiesofpractice(COP).Later,manyofthemfollowwithhorizontaladoptionprograms.Severalcustomersalsoaddverticaladoptionprograms,althoughcostandoverallalignmentwithobjectivesobviouslyinfluenceinvestmentdecisionsineacharea.For the highest reach at the lowest possible cost, Microsoft recommends that customersemployaCOPataminimum,followedbyhorizontalandverticaladoptionprograms,respectively.

4 .1 Communities of practice

Communities of practice are commonly used in large organizations to bring together interestedindividuals,typicallyonavolunteerbasis.Thegoalisto engage in and contribute to the practice of their community, withtheultimatebenefitofincreasing social capital through the knowledge that is shared and learned within that community . In a highly functioning COP, peopleconnectatvariouslevelsand across departments without the constraints of a formal organizational structure . As community members connect with each other, they are able to share theirexpertiseandlearnfrom other members .

Figure 8

higher

lower

higher

lower

lower higherCost

Com

plex

ity

perc

eive

d Va

lue

= Reach

sphere of Influence

Community of practice

Cop

horizontal Adoptionprograms

Vertical Adoptionprograms

sphere of Influence

App 3

App 2

App 4

App 1

Awareness of Value

14 | July 2009

Because communities of practice can be self-maintaining once established, they tend to be low cost .

Thefollowingareamongthepotentialbenefitsofcommunitiesofpractice:nProblemsolvingnDevelopmentofnewcapabilitiesnStandardizing,capturing,andleveragingbestpracticesnTraining on new capabilities

Companies employing communities of practice typically do so in a semi-structured fashioncenteredonpredefinedtopicareas.Forexample,onecustomerwithwhichMicrosofthasworkedverycloselyforthepastthreeyearsonOfficeSharePointServer2007deploymentandadoptionhasappropriatedapreexisting“InformationManagement”COPtoshareOfficeSharePointServer2007knowledgeandbestpractices . Among its membership are participants from the IT team that is building andmaintainingtheOfficeSharePointServer2007capability,businessunitrepresentativeswhoareinchargeofOfficeSharePointServer2007sitecollectionadministration within their organizations, and other interested business users .

AcrossatypicalOfficeSharePointServer2007deploymentandusagelifecycle,inclusionofaCOP(suchasonemanagedwithinanOfficeSharePointServer2007teamsite)willvary.However,thefollowingarecommonusesofaCOP:nPostingofoverviewpresentations,timelines,administrativeguides,andend-

user training materials by IT management .nManagement of monthly or other recurring meetings in which agendas,

presentations, and meeting minutes are shared .nPostingofbestpractices(forexample,siteconfigurationguidelines)and“tips

and tricks” by business unit administrators or end users .nDiscussion of pertinent topics and general question and answer sections .

TypicalcomponentsofaCOPorientedaroundOfficeSharePointServer2007within a team site may include the following:nAnnouncements(fromCOPownersormanagement)nCalendarofevents(forexample,COPrecurringmeetings,internal/external

training, and so on)nRecurringmeetings(usingarecurringmeetingsub-sitetemplate)nShareddocuments(organizedintofoldersorcategoricalviewsandproviding

separate places for administration and training guides, tips and tricks, frequently asked questions [FAQs], and so on)

nQuestion and answer discussion forumsnIssue trackernLinkstorelatedinternalorexternalresourcesnMembershiplistings,withcustomfieldsforexpertiseandotherrelevant

community information nSub-sites for special focus-group areas such as deployment, adoption, and so on

Because communities of practice can be self-maintaining once established, they tendtobelowcost.Inaddition,enduserscancontributetoandbenefitfromCOP-derivedinformationwithouttoomuchinterruptionintheirday-to-dayworkstreams.Communitiesofpracticecanprovidesomescalebyincludingknownthought-leaders,whohaveinfluenceintheirorganizationsandcandisseminatecommunityknowledgetoalargersphereofinfluence.BecauseCOPactivities

15 | July 2009

bynaturecanbevirtual,democratic,andself-supporting,thebenefitsofthesecommunitiesmayflyundertheradarofmanagementandthusachievelittleornoawarenesswithintheorganization.Asaresult,theperceivedvalueofacommunityofpracticemaybelowrelativetomoreovertadoptionefforts,suchasformaladoptionprogramrolloutsandverticalsolutionshowcases.

Insummary,althoughacommunityofpracticemayprovideoneofthekeyelementsofasuccessfuladoptionprogramatalowcost,amorecomprehensiveadoption and change strategy may still be required .

4 .2 horizontal Adoption programs

CustomersdeployingMicrosoftInformationWorkersoftware(forexample,Office2007clients,OfficeSharePointServer2007,andOfficeCommunicationsServer2007)havesignificantopportunitiestoderivebusinessvaluefromitsuse.Insomecases,however,organizationsmayfacebarrierstoadoptionandbenefitsrealizationthatrequirethedevelopmentof“horizontal”adoptionprograms.These programs are focused on enterprisewide uptake of a deployed technology platform(versusuptakeofspecificapplicationsbuiltontopoftheplatform).

Thefollowingarebestpracticesrelatedtohorizontaladoptionprograms(seeFigure 9, “Horizontal Adoption Best Practices,” below):

envisioning

nAdoption goals and strategy: Set adoption goals and determine measurement strategy . Benefit:Ensuresthatadoption-relatedinvestmentsandactivitiesarebasedonsoundobjectivesandaplanforachievingstatedgoals.

nRequirements assessment: Assess adoption-related business and end-user requirements .Benefit: Reducesriskoflowadoptionbyensuringthatcontextual,business-specificuserequirementsaretakenintoconsideration(forexample,certainbusinessesneedtoprovidetoolsformigratingcontentfromthird-partyrepositories) .

nAdoption readiness review:nWorkforce readiness assessment: Before rolling out new capabilities to end

users, it is important to assess the readiness of the workforce to accept the introductionofnewtools.Usetoolsandmethodologies(forexample,Factor44,personas,anduserprofiling)todocumentthepotentialaudience(s)andestablishend-useradoptionprofiles.

4 http://www.factor4index.com/us/productivity.aspx?ln=en-us

horizontal Adoption Best practices

Figure 9

envisioning: Define objectives and what needs to be built

to achieve business transformation .

planning & implementation: detailed planning and

implementation of deliverables required for business transformation .

Assessment & optimization: Usage and benefits audits, ongoing measurements, and recommendations to achieve objectives .

16 | July 2009

Benefit: Allows targeting of offerings for both the technology and any adoption-relateddeliverables,therebyreducingtheriskofshelfwareandoverallcost(forexample,ITversusManufacturingversusSales;eachhasdifferent training and enablement needs) .

nOrganizational readiness assessment: Establish a readiness baseline for thepotentialtargetaudience(s)relativetogoalsandtheimplementationtimelineoftheinitiative(s).Benefit: Creates an understanding of the organizational change required toensureadoption(forexample,institutingaline-of-businessITfunctiontooverseeusagewithineachmajorbusinessunit).

nChange assessment: Document change management implications of the initiativeanddevelopachangestrategy(seeFigure10,“DevelopaChangeStrategy,” below) .Benefit:Understandwhatitwilltaketoachievechangesinworkbehaviorsand cultural and business transformations .

planning and implementationnAdoption and change management plan:Definesthedetailedcomponentsrequiredforsuccessfulrealizationofbenefits,includingorganizationalcapability(forexample,ITconsultingservices,line-of-businessITservicefunctions, business liaisons), PC-based or Web-based information and training, livetraining,provisioning,migration,changemanagement,communications,sponsorship,andcontinuousimprovement.Benefit: Ensures that the typically underestimated amount of work related toadoptionandchangeiswelldefined(basedontheEnvisioningwork)andspecified,suchthatmultipledevelopmentstreamscanbemanagedefficientlyandcosteffectively.

n Adoption and change “product” development: Implementation of the adoption and change management plan entails building and rolling out the technology, tools, and organizational capabilities required to meet adoption and change goals .Benefit:Concerteddevelopmentandrolloutofspecifiedenablement products ensures that overallgoalsaremet.

Assessment and optimizationnAudits: nAssessment workshops: Assess

the current implementation in terms of current usage versuspotentialusage,assessuserexperience,andidentifyadoption barriers . Benefit:Providesanefficientway to assess the current implementation and identify roomforimprovement.

develop a Change strategy

Figure 10

Change management

strategy document

1 . Assess barriers to change

2 . potential change impacts

3 . Change management best practices

4 . Change management performance objectives and baseline

5 . Recommendations to mitigate change impacts

software initiative Capabilities and deployment plan

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nBenefitsrealization:Establishanend-userbaseline,trackusageandvalueovertime,andreport.Benefit: Allowstheorganizationtoreportonrealizedvalueandperformanceagainsttheplantojustifyfutureexpenditures.

nRecommendations for change: Created based on results and established enterprise priorities .Benefit: Ensurescontinuousimprovementbasedonenterprisepriorities,benefitsreceived,andcostconsiderations.

nAdoption acceleration: Removehigh-impactbarriersfortargetgroupsandaddressend-userexperienceissues.Benefit:Addressesissuesspecifictocertainendusersandgroups.

4 .3 Vertical Adoption programs

Formanycustomers,akeycomponentofrealizingthepotentialvalueoftheMicrosoftOfficeplatformisusingittosolvespecific,“vertical”businessproblems(seeFigure11,“RealizingPotentialValue,”below).

Often,thisapproachrequiresbuildingcustomapplicationsusing,forexample,OfficeSharePointServer2007integratedwithotherMicrosoftandISVapplicationsandwiththeOfficeclient.Assumingthatacustomer’sOfficeSharePointServer2007andOfficeclientplatformgovernance(andtechnicalinfrastructure)allowsdevelopmentofcustomapplicationsofthistype,customerswillneedtoidentifythehighestprioritybusinessprocessesthatcanbenefitfromautomationusingtheOfficeplatformandperformbusinessprocessassessmentsandsolutionenvisioning,businessvalueassessments,prototyping/piloting,andadoptionplanning and implementation .

An approach to address these needs may include the following components:nProgram Briefings:Introducecustomerbusinessgroups(forexample,Human

Resources, Finance, Manufacturing) to the potential benefitsofindividualsolutionworkshopstargetedatspecificbusinessprocesses.

nSolution Workshops: Determine how, ideally, customers desire a process to work, understand their current state in this regard, and help them identify potential improvementsinabusinessprocessthroughsolutionsbuilt on top of the platform . Customers should focus on the following areas:nBusiness process assessment—current state and

desired statenSolutionenvisioningnBusinesscasedevelopmentnAdoption and implementation planning

Realizing potential Value

Figure 11

Office SharePoint server 2007

offeringFuTuRe

enablement of extensibility Features

potential Value

Business demand

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5 ConClusion

nBusiness and IT need to align around a common understanding of the reasons and measures of change and how technology can support this change .

nITneedstonotonlyimplementtechnologicalchangebutalsoprovidetheenablingcapabilitiestopromotebasictechnologyadoptionandtheservicestopromotebehavioralchangeandensuretruebusinesstransformation.

nThe importance of adoption depends on the organization’s reference points (forexample,enterprise,businessunit,IT,orend-userviews).

nDifferent adoption strategies, or a combination thereof, need to be employed fordifferenttechnologies.Measurementofadoptionsuccessmayvarywithdifferent technologies .

nFunctional,organizational/cultural,andend-useradoptionprofilefactorsallaffect adoption of a technology .

nConcerted change management efforts can affect business results .nMultiple points in the IT lifecycle may be impacted by adoption efforts .nBest practices for adoption, change, and business transformation include avarietyofsolutionstrategies.Thesestrategiesrangefromlow-cost,self-maintainingcommunitiesofpracticetomoreformalhorizontalandverticaladoption programs .

For more information, please contact the authors of this white paper at iwbscinf .com .

Best practices for adoption, change, and business transformation include avarietyofsolutionstrategies .