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NOTICE: Proprietary This material is proprietary to R S Tipton, Incorporated and shall not be used, reproduced, copied, disclosed, transmitted, in whole or in part, without the express consent of R S Tipton Incorporated. © 2002 R S Tipton, Incorporated All rights reserved. Some portions © 2002 SBI and Company Top 10 Mega-Issues in IT Robert S. Tipton Managing Partner R S Tipton, Incorporated Effectiveness Coaching: Business; IT; Real-Life 1041 W. Dry Creek Rd. Littleton, CO 80120 303.797.0180 firstname.lastname@example.org www.rstipton.com Differentiation risking competing failing leading Efficiency
R S Tipton, Incorporated © 2002 All rights reserved P2 Agenda #1Looking for Leadership in All the Wrong Places #2Vision: Some Neat Looking Charts and Graphs #3The “Easy” IT Money Has Already Been Spent #4Vendors Love Revolutions in Technology #5Coming to Grips (Gripes?) About e-Business Reality #6Collaborative Commerce: Undergarments Exposed #7Wireless: Full of Hot Air? #8Web Services: “The” New, New Thing? #9Get Smart: Leverage Existing IT Assets #10Business-Competent IT Leaders #11The Last Bullet
R S Tipton, Incorporated © 2002 All rights reserved P3 1 Looking for Leadership in All the Wrong Places
R S Tipton, Incorporated © 2002 All rights reserved P4 Looking for Leadership in All the Wrong Places Economic / Social / Technology Leadership Economic Leadership? Greed is a deadly sin… –One CEO after another succumbing to “5th amendment” protection –Massive lack of trust in institutional integrity Social Leadership? Pump up, pierce, tattoo, “reality?” –Jerry Springer? Brittany Spears? MTV? Fear Factor? Ooh. Technology Leadership? No gravitational pull –PCs -- empowered end-users –Client / Server -- must connect to the corporate data –Y2K -- no ignoring that! –Dot.com -- lemmings literally running up each other’s backs to jump off the cliff –Now what?
R S Tipton, Incorporated © 2002 All rights reserved P5 Looking for Leadership in All the Wrong Places “Dancing with the Bear” Recognizing that true leadership comes from within, and not from a book, a class, a CD or a TV show –End the paralysis –Stop looking outwardly –Be accountable and move forward HUGE difference for IT decision makers –No “wave” to ride –No safety in lemming-like decisions >1988 -- no one got fired for recommending IBM >1998 -- no one got fired for recommending an e-Business strategy Conflagration in the IT industry –Large, destructive fire -- burns everything to the ground –True leadership will emerge, and the cycle will repeat itself
R S Tipton, Incorporated © 2002 All rights reserved P6 2 Some Neat Looking Charts and Graphs
R S Tipton, Incorporated © 2002 All rights reserved P7 EDP Reduce Costs / Control Processes Empowered Individuals Interconnected Organizations Interdependent Enterprises Symbiotic Economies Host/Terminal Legacy Transition Architecture The New Architecture Business Gap Technology and Culture Gap Client/Server e-Business SCM / APS / CRM IT’s Evolutionary Path
R S Tipton, Incorporated © 2002 All rights reserved P8 Fundamental Philosophy>Share>"Profitable mix">Change rules>Networking Environment >Certain growth>Cyclic >Changing conditions >Globalization >Japanese dominance >Internet speed >Online value creation Critical Analysis Experience Curve Portfolio Management Competitive Strategy "Real Time" Strategies Attractiveness Strength Value Impact Resource Change Value Creation Velocity Network Breadth 60s/70s90s/00s70s/80s80s/90s Implications Gain Scale Diversify Risk InnovationCommunity l l l l l l l l l l Cost ($/Unit) Volume Changing Times in Management Science >As the “Interconnected” Economy takes hold of the fundamental economic paradigm, prior tenets are giving way to a “New Era of Strategic Management.”
R S Tipton, Incorporated © 2002 All rights reserved P9 3 The Easy IT Money Has Already Been Spent
R S Tipton, Incorporated © 2002 All rights reserved P10 The Easy IT Money Has Already Been Spent Technology Binge Hangover Panacea-based buying is done –Client / Server-based bill came due –Y2K: appropriately a non-event –Dot.bomb collateral damage ROI-based decisions are back in fashion… –What can IT do to support the business? >Internal excellence >Operations optimization –Technology platform optimization and IT investment protection –Business leaders understand implications of technology spending now… Resume building tactics of IT staffers a thing of the past –Job hopping? Please… –Holding companies hostage for bigger raises? Hmmm… Not that I see. >Too many people hired at 1998/1999 wages
R S Tipton, Incorporated © 2002 All rights reserved P11 Source: AMR, CIBC, Gartner The Easy IT Money Has Already Been Spent >Rational business based buying patterns will characterize 2002 / 2003 Project Characteristics Duration 3-6 Months, No more than 12 months Returns Hard returns 12 month paybacks Buyers Signoff at the highest levels Executive suite relationships needed Solutions Business process optimization led Get more value out of what we already have Price Continued strong downward pressure Risk Caution regarding less proven technologies Incremental -- not replacement Caution using new vendors
R S Tipton, Incorporated © 2002 All rights reserved P12 The Easy IT Money Has Already Been Spent Back to the Basics -- ROI-based IT Staffing Lessons learned… –Too much reliance on highly paid, “whiney” tech heads is a bad thing –Business needs to leverage technology, not the reverse Better technologies need to fill the gaps –Software development >Factory, assembly from component parts –Systems / network administration >“Lights-out” technology architectures >Server-based computing >Massive shift in access appliances –Who’s responsible for IT? Hey, the business! –Outsourcing / ASPs / Contracted resources Much more emphasis on solutions rather than technologies
R S Tipton, Incorporated © 2002 All rights reserved P13 The Easy IT Money Has Already Been Spent >It’s not as if “no” money will be spent… Sources: IDC, GIGA, AMR, ML Services ERP APS CRM eCRM/Portals EAI Operations Excellence Integrated Marketing Growth 4% 6 4 8 10 - Comments Upgrades, extending modules, better use most likely New installs still happening in mid-market Performance oriented, linked to process improvement Continued growth More performance oriented less marketing Added functionality, content/data management Targeted on specific business improvement area Enterprise architecture related Performance improvement, cost reduction Site redesign, marketing campaign specific
R S Tipton, Incorporated © 2002 All rights reserved P14 4 Vendors Love Revolutions
R S Tipton, Incorporated © 2002 All rights reserved P15 Vendors Love Revolutions Hardware / Software / Services: Leverage R&D Sell new products Grow their businesses Don’t chase technology just for technology’s sake This is ultimately a failed strategy for your business and your career Preserve what works, augment with new Have courage AND vision Don’t throw the baby out with the bath water...
R S Tipton, Incorporated © 2002 All rights reserved P16 Technology Speed Bumps Remember These? –CASE –Artificial intelligence –Mainframe downsizing –Pen computing –Virtual reality –Client / Server –Components and frameworks –Thin client –Dot.com What About These? –Wireless –Web services
R S Tipton, Incorporated © 2002 All rights reserved P17 5 Coming to Grips (Gripes?) About e-Business Reality
R S Tipton, Incorporated © 2002 All rights reserved P18 The “Old” New Economy Impatient, Insistent, Internet No time for planning -- 3 months was an “internet” generation... “Good Enough” replaced refinement –Time to market was critical path, not perfection Become an e-Business or file for e-Bankruptcy… e-Business is the beginning of a completely new age of business; as profound as the move to an industrial economy and lifestyle from the agrarian. >IT is a disrupter of business process >Treat your assets as liabilities >Cannibalize or be eaten >Don’t be “amazon’ed!” –Don’t be afraid of the 800 lb. Gorillas, be VERY afraid of upward leaping monkeys...
R S Tipton, Incorporated © 2002 All rights reserved P19 The New “Old” New Economy ;-) Huge switch of context just in 12 months: From Gee Whiz to ROI-based decision making Speed to market replaced with smart business decisions Are we “making money” with e-Business? What’s the payback, and how long will it take to be realized? >History tells us there’s only ONE thing that drives a free market economy: Profit >We forgot about that for a couple of years during the “dot.com” boom years >Human nature changes much more slowly than technology >A digital signature is no substitute for a look in the eye and a handshake… –Personal touch once again becoming differentiator >Many industries weren’t, and still aren’t “ready” for transactional transparency and inter- business process integration
R S Tipton, Incorporated © 2002 All rights reserved P20 Another Way to Look at It… CISCO’s Disco… Wealth rewritten -- during 2000 CISCO (on 3/27/2000) was the largest market cap company ($555B) -- they didn’t ship their first product until 1986... NASDAQ about 5200 Day trading, Internet IPO, 5 Million more Millionaire households in the past 4 years -- a few less today… Wealth rewritten -- during 2001 / 2002 CISCO (on 9/9/2002) = $95B market cap -- just a LITTLE smaller… NASDAQ at about 1300 GE -- March 2000, about $500B market cap, 9/9/2002 : $286B
R S Tipton, Incorporated © 2002 All rights reserved P21 CISCO’s Disco
R S Tipton, Incorporated © 2002 All rights reserved P22 CISCO’s Disco
R S Tipton, Incorporated © 2002 All rights reserved P23 CISCO’s Disco
R S Tipton, Incorporated © 2002 All rights reserved P24 Differentiation risking competing failing leading Efficiency New Promises, Old Realities 98% of all businesses won’t succeed beyond 5 years… Markets can be created overnight Markets fail overnight Established brands can be at risk New threats surface every day New competitors are emerging New channels are born Leading means constant innovation e-Business just compressed 20 years worth of entrepreneurial start-ups into 5 years Economic “Darwinism” on Crystal Meth
R S Tipton, Incorporated © 2002 All rights reserved P25 6 Collaborative Commerce: Undergarments Exposed
R S Tipton, Incorporated © 2002 All rights reserved P26 Collaborative Commerce: Undergarments Exposed >Fewer Dollars to Spend Brings Added Pressure for Collaboration
R S Tipton, Incorporated © 2002 All rights reserved P27 Collaborative Commerce: Undergarments Exposed Yes 26% No 74% Have you deployed a supply-chain management application? Yes 47% No 53% If no, do you plan to do so in the next 12-18 months? January 2002 Study Yes 15% No 85% Yes 28% No 72% March 2001 Study Source: Baird CIO Study
R S Tipton, Incorporated © 2002 All rights reserved P28 Collaborative Commerce: Undergarments Exposed >Collaborative commerce combines improving the effectiveness of customer / vendor touch points with collaborative selling optimization. Overall Collaborative Commerce Goal The optimal deployment of people, technology and processes in order to maximize the interaction between an enterprise, its customers and selling partners. Company Goal To actively engage and service customers in order to maximize the number of buyers, repeat buyers, and increase the size and quantity of each transaction. Solution Goal To automate collaboration between manufacturer or retailer and its customers or selling partners in order to make transactions as easy as possible for the end customers.
R S Tipton, Incorporated © 2002 All rights reserved P29 Collaborative Commerce VisionAccelerator helps the organization prioritize transformation efforts by identifying areas that are most urgent and are likely to provide the greatest ROI Collaborative Commerce Continuum Partner Information as a Strategic Asset Measure Partner Ongoing Value Identify Partner Expectations Align Strategy with Partner Value & Expectations Integrate Across Business Units Manage the Partner Experience Ratings 5Leading 4Optimizing 3Practicing 2Developing 1Aware 5Leading 4Optimizing 3Practicing 2Developing 1Aware 5 4 3 2 1 Current Desired Best In Class Collaborative Commerce: Undergarments Exposed Collaborative Commerce VisionAccelerator: Source: SBI and Company
R S Tipton, Incorporated © 2002 All rights reserved P30 Collaborative Commerce: Undergarments Exposed Source: SBI and Company
R S Tipton, Incorporated © 2002 All rights reserved P31 Collaborative Commerce: Undergarments Exposed Are You Ready for Some Collaboration? Yes, if you have… –Significant supply chain complexity, inefficiency or opportunity –A few trading partners that are critical to your business and have close relationships with them –A highly competitive environment with some industry players doing collaborative commerce –High costs for attracting and retaining customers –The strategic objective to leverage a unique trading partner network for competitive advantage –A history of adopting and mastering new business models and technologies –No fear of being “seen” in your underwear…
R S Tipton, Incorporated © 2002 All rights reserved P32 7 Wireless: Full of Hot Air?
R S Tipton, Incorporated © 2002 All rights reserved P33 Wireless: Full of Hot Air? Lion’s share of opportunity is in the commercial sector This chart shows only the numbers -- not the “spend…” Real ROI-based opportunities for business can be significant
R S Tipton, Incorporated © 2002 All rights reserved P34 Wireless: Full of Hot Air? Wireless? What are we doing with it? Really, it’s just another connectivity option New levels of convenience and function New opportunities for technical complexity and frustration! ApplicationsDevicesConnectivity Mobile Middleware Integration Points CRM SCM ERP Outlook Inventory Vertical Pocket PCs Laptops Palm OS Win CE RIM EPOC Wireless Wireline Dialup VPN RAS Data Sync Email Sync Systems Management Personalized Content Database Servers File and Web Servers Exchange, Domino, etc.
R S Tipton, Incorporated © 2002 All rights reserved P35 Wireless: Full of Hot Air? Potential Benefits –Increased sales / decreased costs –Improved customer service –Competitive advantage / Rapid ROI Potential Problems –Coverage: distances, network technology, geographies –Reliability: wired and wireless, sync vs. real-time –Standards: G3? G2.5? Bluetooth, etc. –Security: Oh, this is a fun one… –Speed: expectation management –Cost: feature creep, keeping up with the Joneses –Multiple devices, networks, integration points and applications Gotta Watch Human Nature as Well –Wireless devices have been successful when they provide a more convenient way to do old things >Cell phones didn’t revolutionize human connection, etc.
R S Tipton, Incorporated © 2002 All rights reserved P36 8 Web Services: “The” New, New Thing?
R S Tipton, Incorporated © 2002 All rights reserved P37 Web Services: “The” New, New Thing? Amorphous, loosely coupled software stuff… Loosely coupled, reusable software components that semantically encapsulate discrete functionality and are distributed and programmatically accessible over standard Internet protocols. Whew! This is from The Stencil Group… It’s for programmers, that’s for sure, and the term Web Services is a problem… Emerging Standards of a Conceptual Model Layers of Maturity Business Rules Web Services Flow Language (WSFL) Universal Description, Discovery and Integration (UDDI) Web Services Description Language (WSDL) Simple Object Access Protocol (SOAP) Extensible Markup Language (XML) Common Internet Protocols (TCP/IP, HTTP, etc.) Business Rules Web Services Flow Language (WSFL) Universal Description, Discovery and Integration (UDDI) Web Services Description Language (WSDL) Simple Object Access Protocol (SOAP) Extensible Markup Language (XML) Common Internet Protocols (TCP/IP, HTTP, etc.) Emerging Core
R S Tipton, Incorporated © 2002 All rights reserved P38 Web Services: “The” New, New Thing? Software vendors and consultants LOVE this stuff Oodles of new stuff to worry about, including new tools and software needed to purchase –Oh, and then there’s the education curve, and the implementation requirements… –Again, many vendors (IBM, Microsoft, Sun, etc.) would love for Web Services to become “needed by the market” What about the ROI, though, buddy? Geez -- there’s that pesky need to justify technology again… –Real businesses aren’t running to Web Services in a big way >Market conditions are causing companies to look inward, not outward >“Foundational” projects are back-burnered in favor of real returns, real quick >Collaborative commerce roadblocks hamstring B2B Web Services efforts Quiet acceptance, slow progress -- who knows?
R S Tipton, Incorporated © 2002 All rights reserved P39 9 Get Smart: Leverage Existing IT Investments
R S Tipton, Incorporated © 2002 All rights reserved P40 Get Smart: Leverage Existing IT Investments Looking for ways to produce REAL business value? Data warehousing projects can make IT departments into heroes –Keep your DBAs as far away as possible... –This is not rocket science, nor are we waiting for “finished” technology >Excellent tools are available now –Don’t attempt if IT is an expense category... >This is a strategic, ROI-based project >High cost of entry >Business benefits can be HUGE! Training on existing systems >Amazing how much institutional knowledge is lost as staff positions turn over… >Also, many are asked to do 1.5-2-3 jobs these days -- surviving, not excelling at anything >Training on what’s already there can bring massive savings to development budgets, and shrink “back-logs” dramatically
R S Tipton, Incorporated © 2002 All rights reserved P41 Get Smart: Leverage Existing IT Investments Point Solutions in Integration Internal supply chain –Trust your own data -- operational excellence >Procurement >Vertical integration Application integration –Desktop applications integrated with web applications –Document management solutions Server-based integration –EAI-lite >No need for massive projects, hugely complex “solutions” >Link functions that need to be linked >Get in, get out, get on with your life EDI / XML / Industry Portals –Just do it. And soon.
R S Tipton, Incorporated © 2002 All rights reserved P42 Data ExternalData Operational, Web-based and Historical Data Extraction Transformation Transportation Relational Tools OLAP Tools Applications Storing Feeding Using Meta Data Get Smart: Leverage Existing IT Investments
R S Tipton, Incorporated © 2002 All rights reserved P43 10 Business Competent IT Leaders
R S Tipton, Incorporated © 2002 All rights reserved P44 Business Competent IT Leaders Creating business results is the only thing Effectiveness versus Efficiency –.Net vs. J2EE perpetuates the wrong thing IT leadership for the business requires courage and decisiveness –Do you know how to support your business effectively? Mutual accountability is the first step toward “mature” IT solutions IT management today means understanding business issues like never before Technocrats are unemployed Technology spending is scrutinized by everyone IT-savvy business leaders have been “burned before”
R S Tipton, Incorporated © 2002 All rights reserved P45 11 The Last Bullet
R S Tipton, Incorporated © 2002 All rights reserved P46 The Last Bullet Beware Siren Songs, Quick Fixes, and Analysis Paralysis Don’t replace “just say yes” with “just say no” –Business leaders need to continue to be bold -- and technology still represents one of the best ways to improve productivity and reduce cost –Don’t hide behind impossible ROI –Remember, times of strife are also times of opportunity –Leadership is vital -- find it within Don’t underestimate the need for exceptional business processes and IT practices –Technology makes good and bad things happen faster Everything eventually digresses into reality –Business success needs vision, courage and capital –That’s been true for 10,000 years
R S Tipton, Incorporated © 2002 All rights reserved P47 The Last Bullet Back to the Future Be Efficiently Effective, Not Just Efficient Non-IT Leaders Must Understand IT Risk/Reward Ratio –Security, Integrity, Reliability, Scalability -- each of these issues is just as important as the “killer application” Understand Your Corporate Culture –Make incremental changes as needed –Understand that constant change is the only way to remain competitive today Things Like e-Business Will Be Expectations Entrepreneurship 101 Still Applies –But beware and be aware of “where” it will be expected
R S Tipton, Incorporated © 2002 All rights reserved P48 Thank You R S Tipton, Incorporated Effectiveness Coaching: Business; IT; Real-Life 1041 W. Dry Creek Rd. Littleton, CO 80120 303.797.0180 email@example.com www.rstipton.com
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