The Next Big Thing
Posts about next generation technologies and their effect on business.

Strategy and abundance?

 

business questions.pngMcKinsey had an interesting article titled: What strategists need: A meeting of the minds. In the article, various strategic thinkers expressed their concerns and views on what will affects corporate strategy efforts.

 

Tthe views on strategic frameworks and goals were enlightening, but it felt to me they were too scarcity focused and not embracing the shift in what is abundant around them. It may be that they view those shifts as tactical in nature, or too simple a foundation for strategy – but I see them as low hanging fruit for organizations to consume. It creates options that can be used to advantage quickly.

 

A point made in the article I’ve seen played out over and over:

“while analysis is very important, developing strategies is ultimately a people-centric process fueled by conversation. Each player brings his or her experiences and biases to the table, and the job of crafting a strategy is to navigate those in a way that is productive. The key is the good questions, and any advice on how to improve questions would be really helpful.”

 

It is often better questions, not better answers that makes the difference in strategic efforts, often those questions can be scarce.

 

Blindsided by strategy?

strategic questions.pngI’ve mentioned before the relationship of abundance, scarcity and their role in strategy. As I was catching up on my reading this weekend, I came across the post: Where Are the Sinkholes in Your Strategy? Which touched on many of the same points I was thinking about but with better examples.

 

One great point brought out in the post was:

“Strategy is a lot like IQ for many people: to challenge their strategy is to question their intelligence.”

 

In this dynamic world, we need to bring in diverse viewpoints on a regular basis, because our assumptions of what we’re good at and what can differentiate us can be easily overcome by events. That doesn’t mean we can’t have strategy. We just need to validate its foundations more often.

Facilitating a session on the Next Generation CIO

CIO.pngThis past week, I facilitated a session at a CIO conference in LA. The focus of the session I facilitate was The Next Generation CIO. Before we got started I had a brief introduction about the changes taking place from my view as a chief technologist perspective.  Here is a summary of my kick-off comments:

 

It seems today that you can’t pick up an IT magazine or listen to a conference keynote without someone lamenting the state of the relationship between the CIO and the business or IT’s capabilities to generate new value for corporations.

Let’s face it things have changed in recent years. For the past few decades we've been successful deploying and maintaining the systems of record that have been the backbone of decision-making for organizations. We’ve built up layer upon layer of successful projects to the point where we’re calcified by our own success. Unfortunately this means that it is common to hear people talk about having 80% of their budget consumed before the year even starts (just keeping the lights on) with little to nothing left over to add new business value. It may be as important what we stop doing as what we can start.

 

Having stated that we’ve had all this success, it is good to recognize that almost all the solutions in production today were built with a scarcity assumption. There was never enough data, storage, network or computing capacity.

In many cases, those limitations have been overcome and we live in a world of abundant IT capabilities. We now can take that abundance of data and computing capacity and use analytic techniques to perform complex tasks like context recognition and sentiment analysis – tasks that just a few years ago were the domain of human knowledge workers. We can now begin to recognize ‘normal’ situations and automate them, freeing up people to focus on the anomalies and turn them into opportunities.

 

 

Infrastructure as a Service is an example of a business process we're all familiar with. At its core it is the business process of instantiation and monitoring of virtual machines. Today, it has been automated to a large extent. What we can do today is just the tip of the iceberg of change headed our way as even greater IT capabilities allow us to take these techniques and apply them throughout the business. Instead of automating VM instantiation, we should be able to automate hiring personnel or even most of the middle management role in some organizations.

 

This abundance perspective can fundamentally shift how value is generated and the role of IT within organizations. If we don’t understand and capitalize on these technology shifts to address the business shifts underway, others will come in and eat our lunch.

 

With this as a starting point, we had a very active discussion covering a wide range of topics some of which were:

  •          Can is really be called Shadow IT if the CIO helps the business by applying their expertise to help steer, rather than running alongside and trying to slow it down?
  •          What can we do to help our people transition from traditional IT to a newer more flexible and business centric approach? Unfortunately, not all of them will be able to make the transition.
  •          What do CIOs need to do to sharpen the sword, for themselves and their people? One of the key points of this discussion was spending time with the business. Live it.
  •          Don’t strive for perfection – be flexible and enable the business to adjust as needed.

I had to draw the session to a close when time ran out but afterward there were a number of clusters that were still talking – and that discussion was likely more important than the discussion of the bigger group.

Scarcity, abundance and innovation

 

empty.pngRecently, someone pointed out a video from McKinsey that is talking about how Technological advances can not only improve resource productivity dramatically but also spark the next industrial revolution. I had to laugh a bit since this concept is something that we’ve talked about since the very first blog post (almost 10 years ago) and for our strategy work years before. The abundance of IT can drive innovation in almost any industry.

 

Understanding the interaction between scarcity and abundance is an important part of any enterprise strategy effort. If an innovation can’t be understood from its effects, it probably can’t be used for that particular organization. Just being new, interesting or exciting isn’t enough. Adoption can’t be assumed but needs to be built in the mind of those who should adopt (and adapt).

 

In some situations like the service space that has been traditionally built on access to people and process, the ability to remove people through automation can shake the foundation of how an organization approaches the market. The same could be said about the concept of middle management. Once you shift your view to the default perspective of “Prove that we need them” rather than “We’ve always done it that way”, real chance can happen.

 

I am on my way home from a couple of weeks on the road. Hopefully, I’ll have some time to sit back and think about some of the things that I’ve seen recently and follow my own advice.

 

Contemplating trend intersections – HP’s global technical conference

Recently, a friend from ISSIP sent me an article from Forbes asking Can LED Advances Help Vertical Farms Take Root? I found it interesting because I grew up on a farm, but also because it is an example of the intersection of technical and business trends.

 

The abundance of capabilities in one space (LEDs) can address a scarcity in another space (arable land). An important part of strategic thinking going forward is looking for these relationships as they are today and for trends that will cause them to shift, as well as the organizational change management implications.

 

This week, I am participating in HP’s internal Global Technical Conference. I’ll be looking at the innovations from this scarcity and abundance perspective as well as  meta-drivers that impact innovation value generation.

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About the Author(s)
  • Steve Simske is an HP Fellow and Director in the Printing and Content Delivery Lab in Hewlett-Packard Labs, and is the Director and Chief Technologist for the HP Labs Security Printing and Imaging program.
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