The Open Group Philadelphia – Day Two Highlights

By Loren K. Baynes, Director, Global Marketing Communications at The Open Group. Day 2 at The Open Group conference in the City of Brotherly Love, as Philadelphia is also known, was another busy and remarkable day. The plenary started with … Continue reading

6 IT Trends & 15 New Habits for CIOs & Their Teams

The CIO/ITD In Crisis.

Harvard Business Review blogger, Jim Stikeleather, posted recently  The CIO in Crisis: What You Told Us – a few particular points caught my attention:

“The best executives I have met have had a great understanding of how to use technology to gain competitive advantage and improve operations. They also worked with the CIO to help them to understand the business. They worked together to identify the technologies that could improve the company’s competitive advantage versus technologies that were needed to support the business. Once this was done, the executive leadership and CIO focused on implementing technologies that improve the company’s competitive advantage”.

All the parts of the organization have to come together and build a common language to discuss their markets and their enterprise. They need to have a common appreciation of each other’s purpose. The CIO must step up and mentor the C-suite on the potentials, possibilities, threats and opportunities of information technology..”.

If IT and the CIO come to the party talking like engineers, only offer convergent lines of thought(analytical, rational, quantitative, sequential, constraint driven, objective and detailed focus) and don’t offer a more holistic, shaded divergent thinking point of view (creative, intuitive, qualitative, subjective, possibility driven, holistic with conceptual abstractions), then they have missed the point”.

The CEOs were actively aware, concerned, looking at alternatives such as chief digital officers, or creating “not-so-shadow” IT organizations under the CMO”.
For existing CIOs, ask yourself a few questions. Are you generating customer value? Are you (or do you have the potential to be) the best in the world at what you are doing? Are you required to do what you are doing? Using the answers to those questions, what do you need to stop doing, start doing or do differently?..”. [see 15 ways to change the ITD’s habits table later in this post].

In a similar vein, according to a recent CIO event run by Forrester Research: “The IT department of 2020 could disappear as a separate entity and become embedded in departments throughout the entire organization“.
This article posits that the need for change is now undeniable, and that CIOs are looking for practical steps for creating new habits in their teams. These new habits, developed now, will help prove the continuing need for a central Enterprise IT Department.


History & Trends.

The demise of the IT Department is not a new  prediction, it was first suggested in 2004 by Nicolas Carr in his book ‘Does IT Matter?‘ and again in 2007 when Chris Anderson published his ‘Black Wire – White Wire’ article. This post talked about how corporate IT was being over-taken by consumer-IT. Later, in January 2008,  Nicholas Carr famously pronounced “The IT department is dead” referring to the up-take of utility computing since his 2004 prediction. 

Since then, others made further observations about emerging IT trends that appear to strengthen those predictions. Today, around six hard trends are well established. They sit within an umbrella trend we described as ‘Externalization’ back in 2007. Later, in ‘Flash Foresight‘ Daniel Burrus explains how he identified many of the established technology trends and why they are ‘Hard’ trends rather than passing fads. More recently,  in his book ‘Agile Architecture Revolution‘, Jason Bloomberg talks about understanding the enterprise as a Complex System – a System-of-Systems. His book is architectural guide to help IT Departments respond to the Externalization trend and, at the same time, it highlights the need for a change in mindset within the IT community.

In parallel, John R. Rymer of Forrester Research coined the phrase ‘Business Technology’ (BT) to describe the ever-increasing reliance on information technology by businesses of all types to handle and optimize their business processes  and the need for a more integrated & holistic approach to the use of business-embedded information technology.  Here’s what Wikipedia says about BT

The increasing use of the term business technology in IT forums and publications is due to an emerging school of thought that the potential of information technology, its industries and experts, has now moved beyond the meaning of the term. Specifically information is seen by some as a descriptor not broad enough to cover the contribution that technology can make to the success of a business or organization“.

Focus on Externalization and BT.


Acceptance of the Externalization trend, and a deep appreciation of ‘Business Technology’ theme, provide the canvas, on which, we can sketch-out the ways in which the IT Department must change to survive. Probably most importantly, the CIO needs to find the time to think strategically: from ‘Whac-A-Mole-IT-Management’  to strategic, Business-Technology leadership. Thinking strategically means the CIO needs to develop a deep appreciation of  the various ‘markets’ his/her team serve, as both a supplier, and a broker of services, to those markets. Such markets exists within and outside the enterprise and are made up of customers, suppliers, intermediaries and other stakeholders. All with differing values and requiring different sensitivities to protect and enhance trust relationships.

How to prepare for the inevitable change.

At my current company, we use the ‘BT’ label help position our five-year vision & strategy. It helps frame the discussion about the many areas of change required: cultural, technological, procedural, organizational & regulatory. BT is not, however, a new name-tag for the IT department – it represents the new thinking required across the whole business. It might seem ironic, given the predictions, that it was our CIO who initiated the discussion – I suspect, however, this will often be the case: the CIO is frequently the only C-level executive who has a holistic understanding of both the breadth and depth of the business.

Back in May this year, I posted about the work we were doing to establish a BT Vision. This has since been developing gradually and is gaining acceptance across the IT senior leadership team, but more importantly, with C-Level executives.

Recently, I was invited to share, with a large multinational conglomerate, some of the more tangible changes we’re implementing  Our vision & journey towards ‘BT’, and our response to the the ‘Externalization‘ trend set the context for the discussion. Here’s the list of ‘contrasting behaviors‘ I shared: 

15 ways to change the IT Department’s habits

Old Habits
 New Habits
1.The department of ‘No’
2.Products focus
3.Internal SLAs
4.IT Strategy
5.Cyber security tooling
6.CAPEX-first mentality
7.Solution-focused technology architecture
8.Product standardized IT portfolio management
9.Governance of large IT projects
10.IT Cost Centre management
11.Internal procedures & methods
12.‘Family’ of IT vendors
13.Gadget-focused innovation
14.Periodic, internally-focused, measurement
15.Technology focus
1.The department of qualified ‘Yes’
2.Services focus
3.Services internal/external ecosystem –SLA-chains
4.Integrated BT strategy
5.Cyber security culture
6.Balanced, outcome-focused, investment
7.Adaptive, value-focused,  Enterprise Architecture
8.Principle-led architecture & standards-based integration
9.Company-wide, joined-up,  BT-governance
10.BT services broker, innovation-lead and advisory
11.Internal & external engagement
12.Consumer-driven, ecosystem of suppliers
13.Customer-story-based innovation
14.Constant, external & internal, feedback-loops
15.Focus on information value & risk

We’ve made good progress on many of the 15 points, but I’d say the most compelling for the business are: 1) The department of qualified ‘Yes’,  4) Integrated BT strategy, 5) Cyber security culture, and 13) Customer-story-based-innovation. I’m pleased to see these seem resonate with the observations made in the HBR article mentioned above.


Will the IT department will be dead by 2020?

Will the need for a central IT department go away by 2020? No, not in our case at least, but it does need to rapidly adapt and evolve and  we believe those  that don’t will become side-lined. We are seeing, however, other businesses taking a different view: there does seem to a dangerous, frustration-with-the-ITD, pattern emerging where IT departments are being split-up into LOB sub-teams, without considering the need for, holistic, enterprise-wide thinking.

Maybe the IT Department label won’t exist by 2020, but many organizations will require a team that focus on the value of the digitally enabled world that balances agility, resilience, security and cost across the whole enterprise. For these companies, dispersed and unbridled IT (use of consumer-led technologies and commoditized services) would lead to unprecedented levels business risk: operational, financial, commercial, reputational and regulatory. [post addendum: FUD alert! See my response to Nick Gall’s comment].

My hunch is that, once the hype has died down, the Externalization trend will actually strengthen the need for strategic, less operationally-focused, ‘Office of the CIO’ within organizations. I’m sure, however, such an entity will be unlike today’s ‘Operationally-focused’ IT shop, by 2020.

Addendum

Since posting, I was asked where VPEC-T fits in the context of the move towards BT. VPEC-T is a tool for the sense-making of complex systems-of-systems. It deals with the complexities of plurality (e.g.multiple value systems and multiple types of event). Moreover, it is used for sharing stories about such systems which helps: reach common understanding, ensure completeness and make trust explicit. These considerations will be increasingly important in the diverse and emergent world of BT. It’s most applicable to ‘New Habits’ 5,7 & 12-15.
Here’s an example of the preparation for a VPEC-T workshop based on a real session I ran earlier this year – it might help explain plurality need.

6 IT Trends & 15 New Habits for CIOs & Their Teams

The CIO/ITD In Crisis.

Harvard Business Review blogger, Jim Stikeleather, posted recently  The CIO in Crisis: What You Told Us – a few particular points caught my attention:

“The best executives I have met have had a great understanding of how to use technology to gain competitive advantage and improve operations. They also worked with the CIO to help them to understand the business. They worked together to identify the technologies that could improve the company’s competitive advantage versus technologies that were needed to support the business. Once this was done, the executive leadership and CIO focused on implementing technologies that improve the company’s competitive advantage”.

All the parts of the organization have to come together and build a common language to discuss their markets and their enterprise. They need to have a common appreciation of each other’s purpose. The CIO must step up and mentor the C-suite on the potentials, possibilities, threats and opportunities of information technology..”.

If IT and the CIO come to the party talking like engineers, only offer convergent lines of thought(analytical, rational, quantitative, sequential, constraint driven, objective and detailed focus) and don’t offer a more holistic, shaded divergent thinking point of view (creative, intuitive, qualitative, subjective, possibility driven, holistic with conceptual abstractions), then they have missed the point”.

The CEOs were actively aware, concerned, looking at alternatives such as chief digital officers, or creating “not-so-shadow” IT organizations under the CMO”.

For existing CIOs, ask yourself a few questions. Are you generating customer value? Are you (or do you have the potential to be) the best in the world at what you are doing? Are you required to do what you are doing? Using the answers to those questions, what do you need to stop doing, start doing or do differently?..”. [see 15 ways to change the ITD’s habits table later in this post].

In a similar vein, according to a recent CIO event run by Forrester Research: “The IT department of 2020 could disappear as a separate entity and become embedded in departments throughout the entire organization“.
This article posits that the need for change is now undeniable, and that CIOs are looking for practical steps for creating new habits in their teams. These new habits, developed now, will help prove the continuing need for a central Enterprise IT Department.


History & Trends.

The demise of the IT Department is not a new  prediction, it was first suggested in 2004 by Nicolas Carr in his book ‘Does IT Matter?‘ and again in 2007 when Chris Anderson published his ‘Black Wire – White Wire’ article. This post talked about how corporate IT was being over-taken by consumer-IT. Later, in January 2008,  Nicholas Carr famously pronounced “The IT department is dead” referring to the up-take of utility computing since his 2004 prediction. 

Since then, others made further observations about emerging IT trends that appear to strengthen those predictions. Today, around six hard trends are well established. They sit within an umbrella trend we described as ‘Externalization’ back in 2007. Later, in ‘Flash Foresight‘ Daniel Burrus explains how he identified many of the established technology trends and why they are ‘Hard’ trends rather than passing fads. More recently,  in his book ‘Agile Architecture Revolution‘, Jason Bloomberg talks about understanding the enterprise as a Complex System – a System-of-Systems. His book is architectural guide to help IT Departments respond to the Externalization trend and, at the same time, it highlights the need for a change in mindset within the IT community.

In parallel, John R. Rymer of Forrester Research coined the phrase ‘Business Technology’ (BT) to describe the ever-increasing reliance on information technology by businesses of all types to handle and optimize their business processes  and the need for a more integrated & holistic approach to the use of business-embedded information technology.  Here’s what Wikipedia says about BT

The increasing use of the term business technology in IT forums and publications is due to an emerging school of thought that the potential of information technology, its industries and experts, has now moved beyond the meaning of the term. Specifically information is seen by some as a descriptor not broad enough to cover the contribution that technology can make to the success of a business or organization“.

Focus on Externalization and BT.


Acceptance of the Externalization trend, and a deep appreciation of ‘Business Technology’ theme, provide the canvas, on which, we can sketch-out the ways in which the IT Department must change to survive. Probably most importantly, the CIO needs to find the time to think strategically: from ‘Whac-A-Mole-IT-Management’  to strategic, Business-Technology leadership. Thinking strategically means the CIO needs to develop a deep appreciation of  the various ‘markets’ his/her team serve, as both a supplier, and a broker of services, to those markets. Such markets exists within and outside the enterprise and are made up of customers, suppliers, intermediaries and other stakeholders. All with differing values and requiring different sensitivities to protect and enhance trust relationships.

How to prepare for the inevitable change.

At my current company, we use the ‘BT’ label help position our five-year vision & strategy. It helps frame the discussion about the many areas of change required: cultural, technological, procedural, organizational & regulatory. BT is not, however, a new name-tag for the IT department – it represents the new thinking required across the whole business. It might seem ironic, given the predictions, that it was our CIO who initiated the discussion – I suspect, however, this will often be the case: the CIO is frequently the only C-level executive who has a holistic understanding of both the breadth and depth of the business.

Back in May this year, I posted about the work we were doing to establish a BT Vision. This has since been developing gradually and is gaining acceptance across the IT senior leadership team, but more importantly, with C-Level executives.

Recently, I was invited to share, with a large multinational conglomerate, some of the more tangible changes we’re implementing  Our vision & journey towards ‘BT’, and our response to the the ‘Externalization‘ trend set the context for the discussion. Here’s the list of ‘contrasting behaviors‘ I shared: 

15 ways to change the IT Department’s habits

Old Habits
 New Habits
1.The department of ‘No’
2.Products focus
3.Internal SLAs
4.IT Strategy
5.Cyber security tooling
6.CAPEX-first mentality
7.Solution-focused technology architecture
8.Product standardized IT portfolio management
9.Governance of large IT projects
10.IT Cost Centre management
11.Internal procedures & methods
12.‘Family’ of IT vendors
13.Gadget-focused innovation
14.Periodic, internally-focused, measurement
15.Technology focus
1.The department of qualified ‘Yes’
2.Services focus
3.Services internal/external ecosystem –SLA-chains
4.Integrated BT strategy
5.Cyber security culture
6.Balanced, outcome-focused, investment
7.Adaptive, value-focused,  Enterprise Architecture
8.Principle-led architecture & standards-based integration
9.Company-wide, joined-up,  BT-governance
10.BT services broker, innovation-lead and advisory
11.Internal & external engagement
12.Consumer-driven, ecosystem of suppliers
13.Customer-story-based innovation
14.Constant, external & internal, feedback-loops
15.Focus on information value & risk

We’ve made good progress on many of the 15 points, but I’d say the most compelling for the business are: 1) The department of qualified ‘Yes’,  4) Integrated BT strategy, 5) Cyber security culture, and 13) Customer-story-based-innovation. I’m pleased to see these seem resonate with the observations made in the HBR article mentioned above.


Will the IT department will be dead by 2020?

Will the need for a central IT department go away by 2020? No, not in our case at least, but it does need to rapidly adapt and evolve and  we believe those  that don’t will become side-lined. We are seeing, however, other businesses taking a different view: there does seem to a dangerous, frustration-with-the-ITD, pattern emerging where IT departments are being split-up into LOB sub-teams, without considering the need for, holistic, enterprise-wide thinking.

Maybe the IT Department label won’t exist by 2020, but many organizations will require a team that focus on the value of the digitally enabled world that balances agility, resilience, security and cost across the whole enterprise. For these companies, dispersed and unbridled IT (use of consumer-led technologies and commoditized services) would lead to unprecedented levels business risk: operational, financial, commercial, reputational and regulatory. [post addendum: FUD alert! See my response to Nick Gall’s comment].

My hunch is that, once the hype has died down, the Externalization trend will actually strengthen the need for strategic, less operationally-focused, ‘Office of the CIO’ within organizations. I’m sure, however, such an entity will be unlike today’s ‘Operationally-focused’ IT shop, by 2020.

Addendum

Since posting, I was asked where VPEC-T fits in the context of the move towards BT. VPEC-T is a tool for the sense-making of complex systems-of-systems. It deals with the complexities of plurality (e.g.multiple value systems and multiple types of event). Moreover, it is used for sharing stories about such systems which helps: reach common understanding, ensure completeness and make trust explicit. These considerations will be increasingly important in the diverse and emergent world of BT. It’s most applicable to ‘New Habits’ 5,7 & 12-15.
Here’s an example of the preparation for a VPEC-T workshop based on a real session I ran earlier this year – it might help explain plurality need.

For Who The Heck is Enterprise Architecture Not?

While thinking of ideas discussed in this blog, have been probing the tenants that creates the fundamental characteristics of the system such as :- Division Of Labor – the most important idea that revolutionized industrialization and for rise of capitalism Commodiitization vs Specialization Production of cost by Economy Of Scale by Division vs Multiplexing (manual […]

Bringing ‘IT’ All Together

bg outlineBy: Ben Geller, VP Marketing, Troux

 
          “Any darn fool can make something complex; it takes a genius to make something simple.”
             
                  ~ Pete Seeger

For any global, highly diversified Fortune 500 enterprise, providing reliable and cost-effective IT solutions that support company growth objectives requires a great deal of planning and foresight. For companies that have multiple subsidiaries and disparate business groups with different priorities and infrastructure requirements, the IT support challenge can quickly escalate from complex to overwhelming.

describe the imageTroux customer Bayer Corporation knows this challenge all too well. With more than $36 Billion in revenue and 110,000 employees worldwide, the German chemical and pharmaceutical company is comprised of 283 subsidiaries representing three major business areas — CropScience, MaterialScience and HealthCare — each of which has distinct, yet overlapping, IT and application needs. While each business group had previously experimented with Enterprise Architecture, as the company continued to grow it became increasingly clear Bayer needed a comprehensive strategy for managing its expanding application portfolio and IT assets.

In an effort to more effectively support the business goals of each group while simultaneously reducing IT complexity and costs, in 2008 Bayer began working with Troux to implement an EA strategy that would enable it to be more agile and strategic while positioning the company for future growth.

As with many EA projects, a core objective for Bayer was developing a common language and understanding concerning IT infrastructure across the entire organization to improve collaboration and ensure stakeholders were invested in achieving the same goals. Another critical and ambitious project Bayer tackled with Troux’s support was revamping the manner in which the IT management team tracks, monitors and reports on the overall health of technology assets, key services and resources. Like many organizations, traditionally this information was silo-ed in a collection of Excel and PowerPoint documents and updated inconsistently, making accurate reporting a near-impossible and time-consuming challenge. By managing information through Troux’s platform, the IT department is easily able to retrieve answers to questions and quickly push updates to stakeholders across the business to aid in decision making.

If you’d like to read more about Bayer’s approach, you can access the full case study here at the link below.

Creating a Global Community: Bayer IT unites multiple business segments using Troux

Categories Uncategorized

Why Configuration Management Is Not a Priority

If we can agree that Configuration Management is at the core of the service-centric IT universe, then why aren’t more companies jumping at the opportunity to implement the solutions required to properly facilitate it? While most companies profess…

Categories Uncategorized

The Open Group Philadelphia – Day One Highlights

By Loren K.  Baynes, Director, Global Marketing Communications at The Open Group. On Monday, July 15th, we kicked off our conference in Philadelphia. As Allen Brown, CEO of The Open Group, commented in his opening remarks, Philadelphia is the birthplace … Continue reading

Devoted to Dawn

This post is my devotion to the love of my life, my wife Dawn
The post Devoted to Dawn appeared first on Enterprise Architecture in Higher Education.

What is culture and how does it affect the practice of Enterprise Architecture?

As Architects we often spend countless hours working toward delivering great artifacts, including a future state, current state and roadmap to assist our customers in developing a vision and plan toward transformation or maturity. This work is often completed and finds its place on the CIO’s bookshelf or the Lead Architect’s desk with little action or even a second look. Why is this work not actively embraced by many organizations beyond the IT walls or even within the IT organization?

Don’t misunderstand my position, I believe all of the work completed during an iterative EA process that outputs the artifacts I mentioned above add value, although if the organization is not “culturally” ready to embrace the work and transform then the effort is for not.

Culture is defined in many ways by many scholars, although I find it easiest to define culture as interactions and relationships between members of an organization or unit within that organization. This assumes there is an organizational culture and sub cultures within that organization. With this said, it is important that we as architects focus on the overarching organizational culture to better understand whether our customers are ready for an EA engagement.

Our first priority is to ensure we are engaged with the highest level of sponsorship within the organization. For instance, developing physical architectures with the platform division does not constitute Enterprise Architecture, but rather a Technical Architecture and will only have an effect on that sub culture within the organization. EAs need to ensure they are seated alongside the CIO, CFO, COO or even the Chief Executive to ensure efforts toward cultural transformation can be enabled via strong sponsorship.

In the public sector this can be a difficult task as most executives are focused on business related practices and often see the CIO and vendors as “IT focused.” It is critical for our communication during initial contact to be business focused. Conversations about technology are not held until key items, like capability modeling, guiding principles and governance structures are embraced by the organization as a result of cultural change. Once these cultural elements are embraced and socialized technology decisions will be easily facilitated with little debate or power struggles. Remember, the “sponsor” understands how important organizational transformation is at this point in the evolution and will help sub groups understand the vision. Communication and vision are critical elements at this point in the journey toward transformation.

Once we have commitment from the sponsor it is critical for the sponsor to understand the partnership needed between the EA Team and Executive Team. The EA Team is not chartered with creating mission, vision, strategy etc. but rather with understanding the Executive Team’s goals and objectives for the organization and aligning the technology investments with these goals and objectives. Every investment decision made is a direct representation of how the organization’s culture is manifesting itself physically.

What is culture and how does it affect the practice of Enterprise Architecture?

As Architects we often spend countless hours working toward delivering great artifacts, including a future state, current state and roadmap to assist our customers in developing a vision and plan toward transformation or maturity. This work is often completed and finds its place on the CIO’s bookshelf or the Lead Architect’s desk with little action or even a second look. Why is this work not actively embraced by many organizations beyond the IT walls or even within the IT organization?

Don’t misunderstand my position, I believe all of the work completed during an iterative EA process that outputs the artifacts I mentioned above add value, although if the organization is not “culturally” ready to embrace the work and transform then the effort is for not.

Culture is defined in many ways by many scholars, although I find it easiest to define culture as interactions and relationships between members of an organization or unit within that organization. This assumes there is an organizational culture and sub cultures within that organization. With this said, it is important that we as architects focus on the overarching organizational culture to better understand whether our customers are ready for an EA engagement.

Our first priority is to ensure we are engaged with the highest level of sponsorship within the organization. For instance, developing physical architectures with the platform division does not constitute Enterprise Architecture, but rather a Technical Architecture and will only have an effect on that sub culture within the organization. EAs need to ensure they are seated alongside the CIO, CFO, COO or even the Chief Executive to ensure efforts toward cultural transformation can be enabled via strong sponsorship.

In the public sector this can be a difficult task as most executives are focused on business related practices and often see the CIO and vendors as “IT focused.” It is critical for our communication during initial contact to be business focused. Conversations about technology are not held until key items, like capability modeling, guiding principles and governance structures are embraced by the organization as a result of cultural change. Once these cultural elements are embraced and socialized technology decisions will be easily facilitated with little debate or power struggles. Remember, the “sponsor” understands how important organizational transformation is at this point in the evolution and will help sub groups understand the vision. Communication and vision are critical elements at this point in the journey toward transformation.

Once we have commitment from the sponsor it is critical for the sponsor to understand the partnership needed between the EA Team and Executive Team. The EA Team is not chartered with creating mission, vision, strategy etc. but rather with understanding the Executive Team’s goals and objectives for the organization and aligning the technology investments with these goals and objectives. Every investment decision made is a direct representation of how the organization’s culture is manifesting itself physically.