Milking the value out of your enterprise architecture

Milking value blog

One of the big complaints that you find with business executives, and even IT executives, with regard to enterprise architecture and strategic planning organizations is that it takes a long time to get to value.  There is a definite perception that these types of organizations and their associated methodologies and tools take a really long time to develop. Consequently, they take a very long time to get to value.  I don’t believe that it has to be that way.

It may take a long time to develop the maturity to churn out a daily return on investment, which is the promise of so many enterprise architecture organizations or strategic planning groups, but it doesn’t have to take a long time to get to value.  You just have to be a little bit more tactical about how you approach the types of information you’re going to bring into the organization and the type of decisions that you’re going to support. You’ll also have to spend a little time doing some explicit planning around delivering value throughout the maturation process. That way you’re not only delivering value at the end of the process when you’ve pulled together all the threads of the enterprises.

A great example of this is the accelerator program that we run on top of, Troux.  One of the things that it enables you to do is take a fixed period of time like 60, 90 or 120 days and really focus in on specific decisions that the organization wants to support. It enables you to find the information to support those decisions and pull together a representation of that information that facilitates decision making. I think that not only is this of obvious value to the organization because it helps support those decisions but it’s of value to the strategic planning or enterprise architecture organization. It helps show that there is a return on your effort for these types of organizations and that you can get value early in the process. I think this is a huge step towards getting buy in from executives in the business. That in turn is the type of thing that enables you to sustain a program so that you can get to that more mature state where you’re delivering daily value, on the basis of informing lots of small business decisions every day.

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

Unlocking the full value from a change initiative

unocking blog 6-18

I had another conversation the other day about the value landscape.  I’ve talked about this before and I wanted to touch on it a little bit again because I think it’s applicable to almost any type of project that you do, especially around business intelligence and anything within the analytics realm. I’m going to use Troux for this example. Troux, for those of you that don’t know, is an enterprise portfolio management software. It’s got a lot of specific use cases that help organizations get a fairly rapid return on investment. So an organizational command will acquire the Troux tool. They’ll get involved in specific programs to achieve their goals and pretty soon they’ve made this great progress. What happens as time goes on is they sort of lose a little bit of steam. The low hanging fruit that was there at the beginning goes away and then they start to wonder, “Well how come I’m not still getting the same benefit that I was getting before?”

I think that one of the things that organizations run into is that they haven’t thought a lot about how to take that information and use it to make a lot of incremental returns. What I mean by that is one of the big use cases organizations have for Troux is to look at their IT portfolios and figure out

  • Where do I have redundancy
  • Where do I have things that I can consolidate

So at the beginning there’s this huge value for a lot of organizations because it’s a unique way of looking a problem they haven’t seen previously. They get all this value really rapidly and then they start to slow down because they use the tool to make these big decisions but they’re not embedding that intelligence into their ability to make smaller decisions. That intelligence they use for the big decisions can also help them be able to make decisions farther down within their organization. It will get them that same return on investment only distributed out amongst more folks. This happens all the time.

I’m using Troux as an example because it’s easy to talk to but I think almost any business intelligence activity that goes on within an organization has this problem. It’s usually the impetus, some big problem that you’re trying to solve, some particular thing you’re trying to get insight into and there’s this big bang value proposition that goes out. Then unless the organization takes and figures out how to leverage that information within their processes, they stop getting that same big return. I think this is one of the biggest missed opportunities that we have within modern organizations.

We’ve got one of the most highly educated work forces that we’ve ever had and we’ve got all these capabilities to do advanced analytics and yet we haven’t really taken advantage of any of that to the degree that we could. In this example of having analytics that maybe get used by an executive but they’re never driven down into the business processes and to users who are probably quite capable of leveraging those to make decisions. They’re either unavailable or the processes don’t dictate that they leverage them. There’s this huge opportunity to capture value that is currently not being executed on and it’s simply because we’ve brought the capability into the organization to make better decisions but we haven’t built our processes to take advantage of that. I think it’s something that as you go through large change initiatives you need to really look at:

  • What are the phases of  this
  • How is this going to drive value in our organization
  • Where and when am I going to get ROI
  • Really think about what happens when I’m in my post implementation world

I wrote a blog post awhile back about living in a post-Troux world but I think it’s just as applicable to any of these large systems that you implement that are supposed to give you greater insight into what you’re doing. You have to build it into your processes if you want to get all the value from it.

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

Troux Worldwide Conference 2013: Day 1

Unfortunately due to some travel issues I missed some of the morning sessions at the Troux Worldwide Conference and apparently I missed some absolutely spectacular presentations. They  included: “The New Normal” by Peter Hinssen and “The Journey to Business Value” by Bill Cason, but I did get there in time to catch some really good presentations. So I wanted to run you through some of the highlights of what I did get to see.  I got into the conference about noon, just in time to grab lunch.  It’s being held at the Four Seasons in downtown Austin which is just a spectacular venue and I can’t say enough about how nicely put together the event is. Added to that, the quality of the presentations alone really makes it well worth coming.

So the first presentation I was able to attend was “Enterprise Delivery of EA Services-Cargill’s Revised Approach” put forward by Michael Dockham, an enterprise architect at Cargill. On a side note, what’s amazing about some of these speakers is not just the success that they’re having leveraging Troux to achieve business goals and to help do enterprise portfolio management, but it’s in the scale of the organizations that they’re able to achieve this with such speed. Take Cargill for instance. If Cargill were a publicly traded company, it would be the 12TH largest company in the world. If you want to talk about complexity, they have 75 business units, they are in 65 countries, they’ll have been in business for 150 years in 2015, and they’ve got more than a 1000 locations.  As Dockham was running through some of these statistics and I was thinking about what it takes to get an organization that large to adopt and get value from something, it’s a truly daunting and difficult task.

It was interesting to hear him talk about their history with enterprise architecture which really got rolling in 1994. It gives you a sense of the degree of complexity and the level of effort required to be successful in a large organization, but it’s also mind blowing when he talks about their pace of progress. He talks about the last few years and the speed at which they were able to get to value and especially in the last year, as they went through the Troux implementation and what it meant for their organization. He went on about just how transformational this technology could be within their organization, how this massive increase in capability happened in just one year in an organization that’s been working at this EA since 1994.

I thought some of the really important insights that he had were around business value. They have a CIO that comes from the business side, who has been in charge of food services and just recently, one of the largest SAP implementations in the world. He talks about his keys to winning, being driven by business value, being trusted by the business, and being an organization of choice. This organization of choice idea was, to me, a really nice way to talk about providing enough value to your business side customers so that they want to come to you. That was one of the things that he kept coming back to in talking about the various portfolios.  They’ve got technology portfolios, application portfolios, business strategy portfolios, and their ability to link those things together and really provide the ability to make decisions faster and with a higher degree of confidence, which is clear business value.  He made it his business to have people coming to him to do that.  So with this in mind, he gave a to do list for EA leaders. One of the things it included was not discounting the effort it takes to populate the data, which I thought was a great point. It’s something that people spend so much time thinking about, their method, or their approach, and their technologies. He highlighted that a lot of the real effort is in stitching together the information you’re going to need to be able to make ongoing decisions. You need to focus on the results.

He also talked a lot about capturing data at the right level to answer stakeholder questions, which presumes you know what questions they’re going to ask. Another point he mentioned was having a communications pro to be able to communicate out the type of information that you have. There’s so much specialized language and methodology and approach in EA and they help you deal with the complexity of the business problem that you’re facing. All the value you can create for your organization is nothing if it is not understand by your business.

Another great talk I attended was given by Klaus Isenbecker who is an IT architect for Bayer, which was entitled “The Secret Ingredients of Success.” To build on what Dockham was saying about the importance of communication to the business side, he made a very similar point. He said that oftentimes EAs get very impressed with their own information and complexity of it and things then get lost in translation.  He mentions having this “Aha!” moment when he saw the light of EA and what it could do for the business. He then made the mistake classic of going and grabbing somebody on the business side, telling them his revelation, and then getting this blank look from them. He said it was a lesson learned because the person that he spoke to didn’t really care about all of that EA stuff, what he cared about was the answers that he needed to know and that was it. I thought it was a really great point. I think sometimes there’s a tendency to be overly impressed with your own cleverness, with how exciting it is to be able to connect all these dots, and I think for a great many people, especially in these great big organizations they don’t really care about all that. They care about if you can you answer their questions and that’s it.  Klaus’s talk was probably one of the least focused on Troux itself that I’ve seen at one of these conferences but it was incredibly valuable from[JC1]  the standpoint of providing insight into what are the soft side skills required to enable transformation.

The final presentation from day 1 that I want to highlight is, “See the forest from the trees!….Shifting IT’s focus toward Investment Planning,” by Julie Standley, who is the Director of IT Demand Management from American Electric Power. This was yet another absolutely insightful talk.  American Electric Power is an older company, 106 years old, 15 billion dollars in revenue, and 57 billion dollars in assets. There’s a lot of complexity brought on by the fact that it’s both in the regulated space and a competitive space. She talked about having to maintain two very separate sets of plans for people, processes, and technology within the organization to help manage the differences in those business models and what it means for managing those types of large IT portfolios that are required to run a very large power business in the US. She also discussed being a CIO in that organization in a circumstance where there’s one large pot of money and there’s a lot of masters out there that need to be served. So how do you manage all that priority and how do you do investment planning in that environment? You have to be able to work down the chain from strategy to the technologies enabling that strategy, and really using Troux, and management, and architecture, and investment portfolio planning as a way to bring the company silos of operations together. It’s really a unique vantage point for through which to view the organization because for most of the rest of the company, the view is very dependent on the particular silo in which they reside. So it was really very exciting to listen to her talk about how the organization was able to use Troux to bridge the gaps between those silos and facilitate information flow to help the entire organization perform better, but also to manage the type of compartmentalize complexity that is required by the regulatory environment that they exist in.

So all in all it was just an absolutely great day. I can’t say enough about how much you can learn in something like this because they’re all talking about, at least in cases of most of these presentations, trying to solve the same problems that other large organizations are solving. You can learn a lot because there’s no marketing to speak to these issues. These are your own peers, in their own words, describing how they’re solving their problems. I think it’s just if you happen to be in this business, that it’s something that’s worth coming to see. I’m not saying that you can’t learn a lot by talking to the people that sit within any sales organization or engineering organization that you might be dealing with, but Troux is a great example of having a lot of great practitioners who also happen to be great sales folks, great engineers, and all that sort of stuff and it’s always nice to hear it from customers mouths. That’s the big focus of this event, bringing together those people or at least that’s my take away from it, so hope you enjoyed and I’m off to enjoy another great day today. Hope to see some of you here in the future.


 

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

Tomorrow’s Webinar: Think big, start small, scale fast

Back in December, I interviewed General Dale Meyerrose about organizational transformation and leadership. I posted the three-part interview here, here, and here. When asked about his approach for managing change, General Meyerrose answered with “Think Big, Start Small, Scale Fast.”

Tomorrow, Dale is going to be giving a free webinar on the subject of Think Big, Start Small, Scale Fast in conjunction with MB&A Academy, the eduction arm of my company, Millsapps, Ballinger & Associates.

Date: Friday, February 1, 2013
Time: 12:00 – 1:00pm, EST

To register for the webinar, click here

 

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

Webinar Recap: Here Comes the Next Big Thing: Adopting New Technologies is Inevitable, Doing So Successfully Isn’t

I’m so excited that my company’s Webinar Series is becoming more established. We received a lot of positive feedback on our last one.  Instructor Bob Daniel gave an extremely perceptive explanation of why “Adopting new technologies is inevitable. Doing so successfully isn’t”.  Every day new, “latest, greatest” technologies are announced and organizations, whether from within or without, are driven to adopt them. Unfortunately, the all-too-common experience is that the anticipated benefits never materialize. Typically, the focus is entirely on “successful” installation and vendor training. While important, these steps simply aren’t enough to assure you’ll get the return on investment you want (and need). Bob began his Webinar diving into these issues.

In this Webinar, Bob Daniel discusses the motivations driving the adoption of new technologies, the factors that disrupt adoption, and what you really need to do to be successful. Drawing from decades of experience in new technology adoption with both private and public sector clients, Bob will highlight real-world adoption pitfalls and provide practical means to avoid them, as well as to recover from them.  At the end of the hour, you’ll have a framework and set of tools you can use to build success into your technology adoption programs.  Check out the following clip to get an idea of the full range of advice covered in this Webinar.

If you missed Bob’s Webinar and would like access to the full video please e-mail me at josh.millsapps@mbaoutcome.com. Also, don’t miss out on our next Webinar where the Honorable Dale Meyerrose will give us insight into his problem solving techniques honed over years of experience in leadership, cyber security, information technology, intelligence and military matters. Click here to sign up!

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

SAAS and a tropical vacation- Their surprising similarities

SAAS and a tropical vacation

SAAS-Like a trip to the beach without the travel headaches

Over the past few years Software as a Service (SAAS) and cloud offerings have become more and more prevalent in our recommendations to our clients, particularly when clients are coming to us to help them look for cost savings. In both the public and private sector cost has become the single most cited reason for clients requesting our services.  However for clients, particularly those coming to us from the “business” side of the house as opposed to the technology side of the house, there is something especially scary about capabilities that reside “off-site.” I think for many people there is comfort in knowing that they own the hardware, software, and even the building in which their capability resides. To my mind, this is representative of old-world thinking that simply won’t be sustainable as we move forward. The economics of multi-tenancy “where a single instance of the software runs on a server, serving multiple client organizations (tenants),[1]” is simply too powerful to be ignored for long. I’ve told clients that it’s like taking a vacation to Jamaica without having to endure the travel time. You get the same results. You end up in a nice sunny, warm place with great beaches—but you get to avoid the travel time, skip the long lines and bypass the cramped seats. SAAS and cloud offerings give you all of the benefit minus many of the headaches. You don’t have to procure and manage the hardware/software, in fact you avoid most of the “other” distractions and costs that come along with owning your software capabilities.

Of course you don’t really avoid the costs, they are simply bundled into the solution you are receiving. Ideally this is happening in a manner that enables the vendor to take advantage of large economies of scale resulting in better performance at the same or a lessor price point. Of course it isn’t all benefit. It does require some reskilling for IT professionals in order to enable your organization to get maximum value. You need to be able to “shift from delivering IT solutions to brokering business capabilities.[2]” You also need to be able to understand the security, data implications, access and other factors that will affect your corporate data. This area deserves a much richer treatment than I can give in this blog post but for those interested a great place to start is with the recent MIT Center for Information Systems Research (CISR) paper “Embrace the Inevitable: Six Imperatives to Prepare Your Company for Cloud Computingby Mooney, Ross and Phipps. For the purposes of this post, suffice it to say that the concerns most people have center around security, access to data, and flexibility. These are all real concerns, which is why you still need great technologists available within the organization in order to help you develop solutions that meet your specific business requirements. However, I will say that sometimes these concerns are overhyped.

I will use security as my example. I believe that with many SAAS and cloud vendors capability in this area probably far exceeds what you may currently have in house simply because the impact of a breech would have such negative consequences. Salesforce CEO Benioff talks about the importance of security to his offering because companies like Dell and Cisco are putting some of their most important data, their customer data into the solution. The ripple effect of a loss of confidence in their security model would have enormous ramifications for the business. Therefore they are incredibly focused on delivering in a secure fashion. I personally find it hard to believe that given the combination of the reduction of the importance of security to the business model and the more standardized technology architecture that SAAS and cloud vendors don’t have an easier time securing their solutions. Think about it like this—the Department of Agriculture has more than 700 applications all with different architectures. How much more difficult is this to secure than a SAAS vendor with 700 clients all using the same application on a standard architecture and with an overriding business imperative to be secure or risk losing all of those clients in rapid fashion. I’m not saying the SAAS vendor will be more secure, I just think the design forces favor them. What do you think? Most of us have gotten used to the SAAS service delivery model in our personal lives and transact business and interact via social media using these services everyday. Are you ready to make the leap to take your organization there?


[1] http://en.wikipedia.org/wiki/Multitenancy

[2] Embrace the Inevitable: Six Imperatives to Prepare Your Company for Cloud Computing, Mooney (2012)

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

How to sweat the small stuff without ending up stinky

how to sweat the small stuff without ending up stinky

Small steps can be just as important as the big ones

Business process re-engineering doesn’t have to be a boil the ocean approach to transforming your business. I don’t have any scientific evidence to support this but I believe that the most missed opportunities to improve are the little ones we have in front of us everyday. I’m not advocating against “Thinking Big,” I’m just saying that you shouldn’t be so focused on enterprise transformation that you miss the 1% improvements that add up over time. I believe that many managers miss out on maximizing their value proposition to the organization because they aren’t able to execute on small change initiatives in a meaningful way. These smaller 30, 60 or 90 day initiatives include re-engineering internal workflows, automating internal processes, and course corrections to major programs. The dollars are generally small and the rewards for any one won’t get you an award at the annual holiday party, but over time these are the types of improvements that move the needle for an organization as a whole. Here are 5 things to think about before you decide to move out on that small change effort you’ve been thinking about.

  1. Take the big picture or system view: I know this post is all about little improvements—just remember the big picture and try not to work against it. Thinking big picture helps you ensure you don’t miss the really important thing that happens just before the process you are focusing on.
  2. Think about the data: In most organizations, everything else changes faster than the data. People, technology, and processes—they all change fairly quickly. Understanding information requirements around a process improvement opportunity often gives you a chance to think about it without the confusion of technology and other factors. In the end, many of the improvement opportunities you will find in any organization center on more effectively moving, manipulating, or otherwise acting on information that has been used for years to support the business.
  3. Remember the human factor: Ever sat in a place and wondered how it was possible that nobody had fixed problem “x” yet? You’ve been on site for five minutes and you can tell right away what’s wrong. Most of the time there is a reason that obvious improvement opportunities go unexploited. Many times it’s a people issue. Many times an unwillingness to change comes from a fear or uncertainty about the effect of change. People are often the biggest obstacle to change and you often need to be prepared to sell people on why they should change, even when the existing process seems so obviously broken to you.
  4. Beware scope creep: Little improvements have a way of morphing into massive programs over the course of a cup of coffee. The temptation to keep pulling on the thread of an improvement opportunity until you have completely re-organized the company is hard to resist.
  5. Remember you still need to manage change: Little improvements can go a long way, but one of the downsides to smaller improvement efforts is the costs of change management isn’t anticipated and the effort falls short because there is no money to update the SOP, provide training, etc. The bells and whistles that get included with major transformation efforts often get left out. Informal or small programs still need planning to ensure that there is documentation, training, etc. Without these, the value of these small changes is severely limited.

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.