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Page 1: Ict Led Business Transformation

Management Development Seminar

ICT-led Business TransformationICT-led Business Transformation

By Lukas Ritzel, April 23 2007

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Conditions for Sustained Viability Conditions for Sustained Viability

Enlightened Corporate Leadership

Ability to guide the organization's culture, governance, strategy, resources, performance and monitoring towards sustainable development

Strategic and Integrated Resources Management

Ability to integrate the management of the organization's financial, technical, human and knowledge resources to develop its human capital

Technology PartnershipAbility to develop a close partnership between people and information and communication technologies to optimize the organization's performance

Interactive Value NetworkAbility to partner with suppliers, competitors, clients and partners at all levels of the organization's activities to create together tomorrow's market

Ergonomic StructureAbility to design the organization structure that offers the most efficient and motivating working environment to employees and partners

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Technology PartnershipTechnology Partnership

POWER-USAGE VIRTUAL WORK

WAYS OF WORKING

TECHNOLOGY PARTNERSHIP EVALUATION

MINDSET

KNOWLEDGEMANAGEMENT

CREATIVITYINNOVATION

REAL-TIMENETWORKING

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Organizations Need an InfostructureOrganizations Need an Infostructure

A Human Capital is created anddeveloped through seamless integration

of knowledge, for a unique value

People on-site canaccess and share

resources withdifferent access

levels

Anybody in theorganization canaccess and share

resources, whereverthey are

External clients canaccess and shareresources, from

wherever they are,within set conditions

The greatercommunity can

access and shareselected resources

Tacit Knowledge

Explicit Knowledge

InformationData

April 2002

S M T W T F S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30

The infostructure is the technological solution enabling this:

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Web 2

ICT Solutions Now Available ICT Solutions Now Available

Enterprise Portal

Localnet

Intranet

Extranet

InternetDatabase

Links

Platforms

ApplicationsLibraries

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Some of 2006/2007 clients evaluatedSome of 2006/2007 clients evaluated

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The Value of your InfostructureThe Value of your Infostructure

Efficiency Effectiveness Reach Structure Opportunity (cost) (Operations) (Boundaries) (Industry) (Markets)

Source: EIU and IBM Global Services“Assessing the strategic value of information technology”

Innovators (11%)

Fast Followers (22%)

Traditionalists (67%)

Infostructure Value

Patterns of Investments

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Portrait of a 3Portrait of a 3rdrd Millennium Employee Millennium Employee

Adaptable, flexible, creative, problem-solver, decision-maker, eager to learn continuously

Multi-linguist Power-user of ICT Generator of economic, social and environmental value

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The Type of People Now Employed The Type of People Now Employed

“Silent” Generation (born 1930-1945) Born with the military technologies that were to lead to analog, digital

and virtual technologies “Baby-Boom” Generation (born 1945-1960)

Born with the analog and space technologies that accelerated the development of digital technologies

Generation “X” (born 1960-1975) Born among analog technologies (telephone, TV), witnessed and

participated in the development of digital technologies Generation “Y” (born 1975-1990)

Born with the first generation of digital technologies, witnessed and participated in the development of networked technologies

… and soon, Generation “e” (born 1990-2005) Consider computers and the Internet as ‘natural’ as telephones and

refrigerators

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Status: Infostructure ManagementStatus: Infostructure Management

Infostructure management mostly forgotten

0% 20% 40% 60% 80% 100%

Back-up

ICT Support

Security

Cost Structure

Contingency

System Cleanup

Capabilities Eval.

Migration Plan

Techn. Factsheets

Performance Mgt

User Manual

Efficient Non-EfficientExistence and Efficiency of ICT

Management Systems 0% can monitor their

infostructure

27% can manage their infostructure’s performance

18% can prepare their infostructure for the future

32% can ensure good contingency plans

13% entrust their ICT Head with strategic role

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Infostructure ComponentsStatus: Infostructure Components

Not cheap, not exploited, not integrated Average spending of US$ 5,159 per employee per year – or 5.25% of gross

revenues Availability of ‘localnet’ 88%, ‘intranet’ 69%, ‘extranet’ 36%, website 64% Only 21% have all ‘intranet’ + ‘extranet’ + website 10% to 40% only assess their platforms’ performance regularly Except for ‘intranets’, platforms are little integrated by themselves and even less

with each other

0% 20% 40% 60% 80% 100%

Localnet

Intranet

Extranet

Website

Regular Sporadic NonePerformance Assessment of Virtual

Sharing Platforms

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Processes IntegrationStatus: Processes Integration

The infostructure is no virtual office

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Financial info and mgt system

HR info and mgt system

Supply chain mgt

Corporate planning

Communication to customers system

CRM system

Order tracking system

Market knowledge

Competitor information

Relevant selection of world news

Supply mgt system

Customer self-service system

Investors relations system Fully Partially

Proportion of Infostructures that Integrate each Management System or Business Process

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Infostructure PerformanceStatus: Infostructure Performance

Unacceptable performance

58%

22%

19%

0%

0% 10% 20% 30% 40% 50% 60%

Not Rated orVery Low

Good in SomeAspects

Daily Tool forUsers

Optimal Infostructure's Current

Performance Level

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Key FactsStatus: Key Facts

Infostructures reflect perception of IT Conservative investment strategies Equipment in good working order, system stable Contents neglected Infostructure management mostly forgotten Infostructure not cheap, not exploited, not integrated Performance unacceptable

But users have something to work with 88% of employees have access to a computer Computers stable, in good working order, replaced every 3 years Proportion of notebooks is growing (22%) Availability of ‘localnet’ 88%, ‘intranet’ 69%, ‘extranet’ 36%, website 64%

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Power Users? Status: Power Users?

Employees unable to become power-users 39% efficient ICT support services 18% efficient user manuals 61% provide only generic technical user training, or none at all 0% provide training/guidance on appropriate use of Internet

20%

25%

30%

35%

40%

45%

50%

55%

None Generic -Technical

Customized -Business

Empowered - BigPicture

General average

Relation Between Type of User Training Provided and Overall ICT

Competitiveness

Source: Prasena’s yearly ICT Competitiveness Surveys

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Time and money wasted through inadequate communication tools

27% support full remote connectivity 10% support synchronous communication tools and virtual conference systems 14% enable users to send and receive faxes from their computer

Status: Communication?Status: Communication?

Most infostructures are at least bilingual; all support an email system, 91% provide access to the Internet, and 87% of organizations provide portable computers to employees on business missions – BUT:

0%

5%

10%

15%

20%

25%

30%

35%

40%

< 10% 10% to 20% 20% to 50% > 50%

Proportion of Re-Inputs Among Daily Data Inputs

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Internal vs. External Users Status: Internal vs. External Users

Better be external partner than employee! Non-technical people are involved in the design, development and maintenance of

19% of localnets, 67% of intranets, 80% of extranets and 70% of websites User feedback is captured before a platform is fully operational for 14% of localnets,

13% of intranets, 75% of extranets and 15% of websites Users can freely and directly upload contents on 62% of localnets, 33% of intranets,

60% of extranets and 23% of websites

15%

20%

25%

30%

35%

40%

45%

50%

None Internet Intranet Int+Ext(passive)

Int+Ext(interactive)

General average

Relation Between Level of Virtual Sharing Platforms and Overall ICT Competitiveness

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Integration? Status: Integration?

Easier to work on the Internet than on internal sharing platforms No infostructure is capable of supporting a fully paperless office – 32% do not even

support an effective storage of digital information 27% support telework, 18% provide good support to virtual teamwork 19% enable users to find information by themselves, 36% enable users to find

information fast, and only 9% enable both

0% 10% 20% 30% 40% 50% 60%

Traditional

Semi-virtual(emails)

Virtual (sharedworkspace)

Internal External

Type of Working Relationships Best Supported by the Infostructure

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Empowerment vs. ValueStatus: Empowerment vs. Value

20%

25%

30%

35%

40%

45%

50%

No Limited Yes

General average

Relation Between Users' Capacity to Find Info by Themselves and Overall ICT Competitiveness

20%

25%

30%

35%

40%

45%

50%

No Variable Yes

General average

Relation Between Users' Capacity to Find Info Fast and Overall ICT Competitiveness

Source: Prasena’s yearly ICT Competitiveness Surveys

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Status: Usage Status: Usage

Employees could work without the infostructure (68%) Only 67% of localnets are accessed daily by all users Only 21% of intranets are accessed weekly by all users None of the extranets are used by all partners 55% of the key business information is available on the infostructure 26% of the data inputted every day are re-inputs Only 33% of the daily transactions are conducted digitally

As long as the organization’s infostructure will be owned by somebody else (fully or partially), as long as the ‘localnet’, ‘intranet’, ‘extranet’, website, databases and

other information-sharing platforms will not be integrated, as long as users will not be able to freely access, upload, download and organize the information they need

to work, the employees will not willingly partner with their computer

Source: Prasena’s yearly ICT Competitiveness Surveys

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Organizations in TransitionOrganizations in Transition

Paper-based Policy driven Past focused Conservative Traditional Little change Ties and uniforms Quiet Disciplined Low tech Slow Male domination

Automated systems-based Concept driven Future focused Progressive Cutting edge On-going change Jeans and T-shirts Noisy Creative High tech Fast Dual gender leadership

Gen Silent Gen BB Gen X Gen Y Gen ‘e’

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Drawing: Cécile Périnelle-Michelet

Old-model stand-alone computer (if

any)

Paper domination (files, binders, trays, books,

post-it, flying sheets…)

Small traditional

desk

Old-model telephone

The employee mainly works with telephone, pen and paper. The

computer is used for word processing, if at all

Working time is

monitored

Hard white light from

ceiling neon lighting

Dress code is strict

(uniform, full suit)

Simple revolving chair, no armrest

Working Environment # 1: Cramped cubicles are separated by 1.80m high partitions; senior managers have larger individual offices behind closed doors.

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Drawing: Cécile Périnelle-Michelet

Reasonably recent desktop with

sound, connected to LAN

Paper is used but controlled

Spacious L-shaped desk, adapted to computer work

Modern wireless telephone with speakerphone

The employee mainly works with telephone, paper, fax and

computer.

Offices are equipped with printers and fax

machines

Natural light supplemented with halogen

lamps

Dress code is business

elegant (suit with no vest, no uniform)

Working Environment # 2: Glass-walled offices for 1 to 4 people (those for one person also have a small comfortable sitting area).

Comfortable revolving chair with armrest

Mobile phones are sometimes

used

Personal touch (family photos…)

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Drawing: Cécile Périnelle-Michelet

Recent multimedia notebook,

connected to intranet

Hardly any paper except mail and reference books

Mobile phone with headset

The employee mainly works with portable computer and

telephone.

Office is equipped with printer/fax/scanner/copy

machine

Natural light supplemented with halogen

lamps

Dress code is business casual (suit with no vest

and tie, no uniform). Hairdo code is liberal

Working Environment # 3: Open landscaped working area for all, modern ergonomic working stations (not always permanently assigned to employees)

Ergonomic revolving chair

PDAs are sometimes

used

Conference room for large meetings

and private conversations

R&R area with TV, video and CD/DVD

facilities

Banners stressing corporate values

Comfort features (coffee machine,

food, plants)

Children and pets are allowed in the

office

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Drawing: Cécile Périnelle-Michelet

Latest notebook, connected to

Internet

No paper

The employee works virtually (teleworker)

Virtual work tools (webcam, speaker,

headphones)

Natural light or whatever

preferred light

Total freedom in dress code, hairdo

code, furniture, working position,

working hours

Working Environment # 4: Home or anywhere else, as the employee chooses.

Virtual conference room with text and voice chats, video

and visuals

Friendly family or other environment

Mobile phone serving as modem,

PDA

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Virtual Work Tool Virtual Work Tool

Write and read

Talk and listen

View and browse

Participants can:

This is the replica of your conference room – in the cyberspace

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Value-Added PresentationsValue-Added Presentations

The physical location of the speaker is of no importance

Participants connected through the portal can Follow the presentation slide

by slide and read notes Ask their questions to the

speaker in writing at any time Exchange views with other

participants on the session Browse through the

presentation as they wish Get additional information

(speaker’s bio, related websites or materials)

Download immediately the materials they like

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School NetworksSchool Networkshttp://www.ccc.edu/

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eLearningeLearninghttp://www.alado.net/hpu

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Online Public ServicesOnline Public Serviceshttp://www.alado.net/usps

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Communities of PracticeCommunities of Practicehttp://www.alado.net/webheads

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Lukas Ritzel, Swiss, managementLukas Ritzel, Swiss, management

Professional Details: Mr. Lukas Ritzel currently is Manager ICT with DCT International Hotel & Business Management School, responsible for all virtual and collaborative technologies on campus, as well as faculty lecturing on different management topics.  

Mr. Ritzel has been in international management since over 20 years, has done workshops and presentations in 40++ countries in 4++ languages.

Further; Mr. Ritzel is Cofounder of Change Management consulting company Prasena (www.prasena.com), his company got in 2004 the Purple Cow award of companies who "make a difference" from the FAST company.

Mr. Ritzel is a specialist in Creativity, eLearning, Management of Change, Learning Organizations and Knowledge management . His own teaching site is at http://www.dct.ch/ict/dct.htm.

Mr. Ritzel is Switzerland chapter President of the Digital Workforce Education Society (www.digibridge.org).

Mr. Ritzel has been speaker (in real as well as virtual) at many international conferences, some of his best presentations can be seen at Prasena's Virtual_U (http://www.prasena.com/public/virtual_u.html). Google "Lukas Ritzel" for more digital footprints.

Mr. Ritzel can be reached at [email protected] or through Skype (skypename: lritzel). Mr. Ritzel is Swiss and see himself as a Cyber citizen! Online CV available at http://www.prasena.com/public/cvlor.htm