2013: The Year of the CIO

CIOs stand at a crossroads as we head into 2013. Many of them have a choice to make. They can retreat to the back-office or reach out to business units and began to partner with them on customer-facing innovation and revenue generation. Many CIOs I know will choose to breakout of the IT department mindset – or already have. However, they have a lot of changes to make to cultivate the relationships and acquire the […]

Generative Transformation :- System is the Method

Simple View – Cognition Multi-Lateral View – Cognition System is the Method:- Cognition – result of social observation Where each social unit employs relevant symbols to capture the knowledge and each of these knowledge could be a different level of abstraction. Enterprise or System Architecture as a architecture is sum of several architecture abstractions (various […]

Flying in the Cloud by the Seat of Our Pants

In the early days of aviation, when instruments were unreliable or non-existent, pilots often had to make judgments by instinct. This was known as “flying by the seat of your pants.” It was exciting, but error prone, and accidents were frequent. Today, enterprises are in that position with Cloud Computing. Continue reading

Business Network Optimization

Some @ATKearney consultants have written an interesting article on Business Network Optimization

“Anyone thinking about rationalizing a network would naturally ask whether so many nodes are really necessary. Networks are a great deal more complicated than that, and managing them requires expansive strategic imagination.”

A simplistic accountancy view of a network looks at the direct contribution of each node. From this viewpoint, some nodes may not produce enough direct value to justify their continued existence, and there will be calls for these nodes to be closed or merged with their neighbours.

For example, there are several proposals currently under consideration within the UK National Health Service to rationalize Accident and Emergency provision by closing some hospital departments and relocating staff. These proposals are based on arguments about the optimal size of an Accident and Emergency unit, and on claims that smaller units are unlikely to deliver value for money or clinical  excellence.

Opponents of these closures point to the indirect effect of these closures, including the likely consequences on non-emergency healthcare services at those hospitals that will lack accident and emergency provision, as well as the wider social impact on the local community.

The example given in the A.T. Kearney article is the French postal service, and the authors assert the indirect value of the village post office, using an almost untranslatable French term l’animation du territoire, the “animation of the territory”.

The Kearney article identifies three types of business network, which it calls Production, Service and Distribution, and eight elements of network management which must be optimized together. It calls these KNOTs, which stands for Kearney Network Optimization Tools, and asks us not to think of them as merely a laundry list of best practices used to build an optimal network. 

The eight elements of network optimization (KNOTs)

The article illustrates the concept of indirect value in terms of the cross-over between physical and online retailing. If a customer views a product in a physical store and then orders it online, the physical store is providing some indirect value to the retail operation as a whole. It is therefore makes sense to optimize the entire online/offline network as a whole, rather than regarding them as two separate networks. See my post on Showrooming and Multi-sided Markets (December 2012).

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Maybe the Mayans were Right after all

If you believe the popular media, 2013 was never supposed to happen. The Mayan culture had this all figured out, or maybe their Strategic Planning Group got axed due to budget cuts. Either way – 2013 was supposed to end in December of 2012. As it is,…

Lean or Six Sigma?

<p><a title=”Lean Management” href=”http://www.bizzdesign.com/consultancy/lean-management/” target=”_blank”>Lean Management</a> (Lean) and Six Sigma are getting more and more popular. These methods were developed in the industry, but have proven to be very powerful for service organizations as well. They use the approaches and instruments to systematically work on process and quality improvement. With the large challenges many service organizations face (cost cuts, quality issues, increasing customer demands) these improvements are more than welcome. But which method is best?</p><p>Like always, this depends… Both methods have their advantages and disadvantages. Let’s take a look at the methods from an ‘instrumental’ point of view.</p><p></p><div class=”captionImage left” style=”width: 600px;”><img class=”left” src=”http://www.bizzdesign.com/assets/BlogDocuments-2/lean-six-sigma-what-is-best.jpg” alt=”lean six sigma” title=”lean six sigma” width=”600″ height=”400″/><p class=”caption”>lean six sigma</p></div><p>An important strength of <strong>Lean</strong> is the fast implementation.  Lean aims at standard solutions to standard problems. Lean is focused at customer value and waste. By applying Lean best practices organizations can quickly streamline their processes and remove waste. Quick results can work as a catalyst for further Lean implementations and Lean successes. <br/> But what if your problems are no standard problems? In this case Lean won’t (completely) resolve them. You might need ‘something stronger’.</p><p><strong>Six Sigma</strong> is a method for analyzing and resolving complex problems. Based on measured facts a dedicated improvement team will use powerful (statistical) techniques to really understand the specific problems. Symptoms, problems and causes are identified, enabling the team to fundamentally improve processes. <br/> But Six Sigma comes at a cost. Setting up the program and training the team members is expensive. Also, the method achieves improvements by resolving ‘problem by problem’. With a typical Six Sigma project taking about three months, it will take a lot of time (and costs) to come to a big impact for the organization.</p><p>So both Lean and Six Sigma are powerful. It all depends on the problems you have and the fit of the techniques with your organization. If we look at service organizations, we usually see lots of opportunities for improvement. They all face challenges like customer focus, quality and processing speed. Lean offers easy to use, common sense techniques to tackle these issues. Six Sigma is powerful as well, but for many organizations a bridge too far. The complexity of the method could draw away the attention from what it should be all about: improving processes and achieving results. Many organizations that experimented with Lean and Sigma also came to this conclusion: initially remove waste and streamline processes with lean; secondly use Six Sigma for specific complex problems.</p><p>Besides the instrumental viewpoint on Lean (and Six Sigma) there is also a cultural viewpoint that might be even more important. Organizations that are successful in systematically improving processes don’t only use the techniques, but they ‘live them’. There is a drive to ‘do the work every day a little bit better’. Lean becomes part of the culture.</p><p>Good luck with <strong>Lean</strong> and <strong>Six Sigma</strong> in your organization!</p>

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The Curious Case of the Courts’ CIO: How ACM Solves the New Service Delivery Challenge

“Let’s start 2013 by considering how the CIO function can deliver new solutions to your enterprise when as much as 80 percent of the IT budget goes to just keeping the lights on, maintaining your current systems. With market conditions forcing increased cost cutting, and a distinct trend to place more of the technology decision making and buying power in the hands of the business, the mystery of successful delivery is getting harder for the CIO to solve.”

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Data Governance: A Fundamental Aspect of IT

Underlying both SOA governance and Cloud governance is a fundamental aspect that we have been dealing with ever since the dawn of IT—and that’s the data itself. Let us challenge ourselves with a few questions. Consider them the what, why, when, where, who and how of data governance. Continue reading