Competing with IT- breaking through to enable business innovation

Colin AshurstAlison Freer15th March 2013

Creating value for stakeholders by exploiting ongoing innovation in IS / IT

Connecting the first PC to the internet

19..?

7

8

9

10

11

12

13

What opportunities will current innovations in IS/IT provide organisations?

Where next?

The problem… high failure rate

Huge spend on IT– “The UK public sector alone has spent an estimated £12.4 billion on

software in the last year and the overall UK spend on IT is projected to be a monumental £22.6 billion,”

High failure rate of IT projects

– “We looked at a range of studies showing that only around 16 per cent of IT projects can be considered truly successful.”

– “Billions of pounds are wasted every year on new IT systems”…..British Computer Society report The Challenges of Complex IT Projects – 22 April 2004

Its not just the public sector!

The major gains come from “doing the right things.”

IT & Change PortfolioStrategic

may be important

in achieving future

success

critical to existing

business operations

valuable but

not critical to

success

critical to

achieving strategic

objectives

Core Operations Support

Exploratory

Based on McFarlan 1981

Improving the current business

Transformational change / doing new things

Driving forces

20CORE OPERATIONSCORE OPERATIONS

Improved performance ofexisting activities (effectiveness)

Integration/rationalisation tospeed up business processes

Industry Legislation

STRATEGIC

Perceived marketrequirements

Competitive pressures

Achievebusiness changes

Innovative business idea

New technologyopportunity

Create change

Cost reduction and

efficiency improvements

through automation

General Legislation

SUPPORT

EXPLORATORY

Strategic

C

D

IH

AJ

B

G

K

L

M E

F

Setting PrioritiesExploratory

Core Operations Support

Size of circle represents use of resources on applications A - M.Diagram could show:• Money or people• Development or Maintenance or both• Current system, work in progress (ie a current project) or possible future

project

Innovation Debate

• What are the challenges to successful innovation in your organisation?

• Examples of good practice?

Case Studies

How do we maximise our R&D Investment?

•Global business

•Multiple suppliers with expertise

•High competition

•Time critical

How do we maximise our R&D expertise?

• Entrepreneurial leader• Innovation Days• Won over hearts & minds • ‘Open Innovation’ campaign with suppliers =

90 new ideas

How do we turn data into Information?

• NHS organisation• 115 days to transfer patient activity data into

management reports• Slow, cumbersome planning

How do we invoice accurately?

• Global IT services business – 90,000+ staff• Push to maximise cost efficiency• Multiple teams, locations and time-zones

How do we invoice accurately?

• Used ‘Ideation’ as “21st Century Suggestion Scheme”

• 3000 staff contributed to a 6 week Ideation event

• Ideas adopted yielded $64M increase in cash-flow

eLearning case study

The university has a core eLearning system used by 90% of its 20,000 students. It is reliable and effective. However it looks dated and does not provide Web 2.0 features.

A professor in Computer Science has developed a new eLearning system. Usage is gradually growing in other departments. It looks up to date and it has some clear functional advantages over the core university system. The system is hosted on a server under the professors desk. It is becoming unreliable and no one other than the professor can provide support.

Action:Use the IT & Change portfolio to assess the current situation and develop options for action

Successful Innovation Engages the Crowd

Successful Innovation Requires a Toolkit

Successful Innovation is Enabled by IT

• IT & Business strategies aligned

• Open Innovation Platforms

• Scope for exploration & experimentation

Successful Innovation has Clear Sponsorship

• Idea Portfolio Manager• Global Head of Collective

Intelligence• Chief Growth Officer• Chief Innovation Officer• Chief Inspiration Officer• Chief Imagination Officer• Chief Detonator• Chief Lizard Wrangler

Successful Innovation Requires Diversity

•Demographics•Personalities•Experience•Cultures•Sectors•Life

Successful Innovation Requires IT Leadership

• Envisioning Future Trends

• Experimentation

• Engaging with users

• Embedded in strategy

• Empowered IT Teams

$$

$

R & D project toexplore potentialvalue and cost

- fund from R & Dbudget

Risk money.

Enable theachievement of

business objectivesvia explicit

CriticalSuccessFactors

Net costreduction through

quantifiedsavings

$

Disadvantage / Riskif it is not done

(Critical Failure Factors)& / or

quantifiedperformanceimprovement

$ extent to which benefits can be justified financially

Investment justification

SUPPORTCORE OPERATIONS

EXPLORATORYSTRATEGIC

Thank you, questions or comments?

• colin.ashurst@ncl.ac.uk• alison.freer@leadtransform.co

The benefits ‘toolkit’ – linking theory and practice

Bridging the knowing-doing gap: building the business transformation capability

IT Strategic Management

Leadership & Development

Evolving Transformation

Capability

Knowledge into action

Transformation toolkit

Learning by doing

Individuals & teams using the toolkit to contribute to benefits

realization

Shared language / mindset: focus on benefits &

transformation

How would you approach a xxxx1 project….

• Consider:– Lifecycle: stages / deliverables / milestones– Role of sponsor– Style / skills of project manager– Resourcing– Approach to budget / timescales– Attitude to risk– Use of package software– ‘Agility’

xxxx1 – can be Strategic / Exploratory/ Core Operations / Support

Your project…

• Where does it fit on the investment portfolio?

• What are the implications for how you sell the project?• What are the implications of the portfolio for the

management of the project?• How appropriate is the current management framework for

the project?

What examples of good practice for portfolio management can you share?

How has the practice contributed to improved realization of benefits from your portfolio?

How can you use the portfolio to build engagement with colleagues and build the capability of your organization to realize benefits from IT?

Using the portfolio….

• Setting priorities• Strategic alignment• Investment justification• Project strategy• Governance• Resourcing / sourcing

Common language