Tag Archives: Innovation
Six ideas for CIOs in 2015 to put the innovation back in CIO
For most, the “I” in CIO stands for Information. But what about that other “I”, Innovation? For many IT organizations, 60-80% of IT spending continues to be tied up in keeping the IT lights on. But innovation matters more than ever to the business bottom line. According Geoffrey Moore, “without innovation, offerings become more and more like each other. They commoditize.” (“Dealing with Darwin”, Geoffrey Moore, page 1). Geoffrey goes on to say later in “Dealing with Darwin” that commoditization will over time drop business returns to “the cost of capital”. So clearly, this is a place that no CIO would want their enterprises to consciously go.
Given this, what is the role of the CIO in driving enterprise innovation? I believe that it is a significant one. Without question, technology investment has been a major driver of enterprise productivity gains. At the same time, IT investment has had a major role in improving business capabilities and the business value chains. And more recently, IT is even carving out a role in products themselves as part of the IoT. So how can CIOs help drive business innovation?
1) Get closer to your business customers. CIOs have said to me that their number one priority is connecting what the IT is doing to what the business is doing. Given this, CIOs should make it a real priority for their teams to get closer to the business this year. According to Kamalini Ramdas’ Article in Harvard Business Review, “to succeed at innovation, you need to have a culture in which everyone in the company is constantly scanning for ideas”.
2) Develop internal design partners. When I have started new businesses, I have always created a set of design partners to ensure that I built the right products. I tell my design partners to beat me up now rather than after I build the product. You need, as Kamalini Ramdas suggests, to harvest the best ideas of your corporate team just like I did with startups. You can start by focusing your attention upon the areas of distinctive capability—the places that give your firm its right to win.
3) Enabling your IT leaders and individual contributors to innovate. For many businesses, speed to market or speed of business processes can represent a competitive advantage. Foundationally to this are IT capabilities including up time, system performance, speed of project delivery, and the list goes on. Encouraging everyone on your team to drive superior operational capabilities can enable business competitive advantage. And one more thing, make sure to work with your business leaders to pass a portion of the business impact for improvements into a bonus for the entire enabling IT team. At Lincoln Electric, they used bonuses by team to continuously improve their products. This arch welding company shares the money saved from each process improvement with the entire team. They end up getting the best team and highest team longevity as teams work improves product quality and increases cost take out. According Kamalini, “in truly innovative culture, leaders need to imbue every employee with a clear vision and a sense of empowerment that helps them identify synergistic ideas and run with them” (“Build a Company Where Everyone’s Looking for New Ideas”, Harvard Business Review, page 1).
4) Architect for Innovation. As the velocity of change increases, businesses need IT organizations to be able to move more quickly. This requires an enterprise architecture built for agility. According to Jeanne Ross, the more agile companies have a high percentage of their core business processes digitized and they have as well standardized their technology architecture (Enterprise Architecture as Strategy, Jeanne Ross, page 12).
5) Look for disruptive innovations. I remember a professor of mine suggesting that we cannot predict the future when discussing futures research. But I believe that you can instead get closer to your customers than anyone else. CIOs should dedicate a non-trival portion of IT spend to germinating potentially disruptive ideas. They should use their design partners to select what gets early stage funding. Everyone here should act like a seed stage venture capitalist. You need to let people experiment. At the same time, design partners should set reasonable goals and actively measure performance toward goals.
6) Use analytics. Look at business analytics for areas of that could use IT’s help. Open up discussions with design partners for areas needing capability improvement. This is a great place to start. Look as well for where there are gaps in business delivery that could be drive better performance from further or improved digitization/automation. And once an innovation is initiated, analytics should actively ensure the management of the innovation’s delivery.
There is always more that you can do to innovate. The key thing is to get innovation front and center on the IT agenda. Actively sponsor it and most importantly empower the team to do remarkable things. And when this happens, reward the teams that made it happen.
Recently I ran across an article from INSEAD (self-described as “The Business School for the World”), articulating a concept that they call “The Innovation Premium.” Essentially, it is “the premium the stock market gives a company because investors expect it to launch new offerings and enter new markets.” This is documented in detail in their recently published book, “The Innovator’s DNA”, co-authored with Clayton Christensen, noted professor and author of two previous books on innovation: “The Innovator’s Dilemma” and “The Innovator’s Solution.” (more…)
Many of us read reports from industry pundits as well as the latest industry rags and hear the “experts” describe the latest trends. A lot of these for the most part, don’t come to fruition. The most unfortunate part is that our bosses and internal customers read these reports as gospel and we spend our time debunking a lot of the myths.
An area that is much hyped is the Cloud. The question is whether or not this is fact or fiction. Today, I will focus on SaaS in particular, as even the word Cloud conjures up conflicting images. In my world, SaaS is real. The most compelling metric is that in 2010, the number of Cloud apps exceeded our on-premise apps, and the impact on our business and IT has been profound. Let me repeat, SaaS exceeds on-premise apps! (more…)
We are getting very excited about the arrival of our Marketplace!
When we announced it a few months ago people contacted me to ask if this was for real, and how it was going to work. My reply was “Think iTunes or AppExchange for Data Integration”. Of course, at the time we had a pretty good idea of what we wanted to build and why it would be important. However, there is no better way of answering these questions than to go live and allow you to look at and use it.
The Marketplace is nearly here and I wanted to share a few thoughts to prepare you for the day it goes live:
The Marketplace is for you, our customers:
- As my colleague Judy Ko commented in her blog, The Informatica Marketplace: Tapping The Power of the Crowd, it provides a forum through which the Informatica community can share best practices. For our customers it will help to drive down development costs since you will be able to tap into the community to find and re-use components – both simple and complex – to help you achieve your goals. Why re-invent something when it has been done many times before by different people? (more…)
With much amusement I read a blog entry the other day entitled the 10 commandments of data integration. Of course, I wish I’d thought of it myself. Great idea which got me thinking about something witty to respond with! So, how about the 7 deadly sins of data integration! Lost in the midst of time and as a reminder, the 7 deadly sins are gluttony, lust, greed, envy, wrath, sloth and pride. So here goes … (more…)
About a year ago, I wrote a whitepaper entitled CIO’s Guide to Achieving Information Management Excellence. Back then, the US economy was somewhat shaky but we had no clue as to the impending major shift about to face the global economy. Fast-forward to 2009. According to the March International Monetary Fund (IMF) forecast, global activity is expected to decline by around ½ to 1 percent in 2009. Gartner and IDC also revised their IT spending forecast down to reflect the changes from last year.
So I asked myself, “Do I also need to revisit the paper from the information management perspective?” I sought the counsel of our clients and partners. The answer was, no. The proven practices and methods are still valid, and even more crucial for organizations leading the next chapter of innovation.
There is a greater force at play in IT distinct from the financial restructuring currently taking place. It is the technological maturation making innovation possible for the masses, not just for the elite few. Google’s Chief Economist Hal Varian put it this way: (more…)