Over the past few months I have had the opportunity to spend some quality time with a number of IT vendors such as HCL, Fujitsu, Oracle, and Dell. This has been some time coming, but over the next few weeks I am taking the opportunity to summarize the overall perceptions I have received from these vendors when evaluating them from a CIO perspective - i.e. as a potential partner for your IT organization and your business. Today I'll tackle HCL, and will move onto the other vendors throughout January. The goal of these blog posts is to give an overall perception of the vendors - something that we don't particularly capture so well in a Wave or vendor analysis where we are focusing on one particular capability of a large vendor. I am trying to capture the "culture" or "style" of the vendor, as this is something that is hard to include in a Forrester Wave, but it IS something that makes a significant difference to the partnership in the longer term.
HCL. A company that is comfortable in its own skin.
That is the way I would summarize HCL. They are a company that know where they have come from and know where they are now, and have a pretty good idea that in five years time they will be nothing like they were or are. They don't know what that future is, but they know they have to put the capabilities in place to ensure the organization can effectively morph into that future form in order to achieve longer term success. Employees First, Customers Second is the first step on this pathway, but it is only that. It will not shape the company that HCL is tomorrow, but it will probably provide the groundwork and internal culture to allow the smoother change.
What will business and technology be like in 2020 – and what’s IT’s place in this new world? This is the subject of a teleconference that James Staten and I held for our clients yesterday and also the subject of an upcoming Forrester report.
In this teleconference, we painted a picture of the impact of business-ready, self-service technology, a tech-savvy and self-sufficient workforce, and a business world in which today’s emerging economies dwarf the established ones, bringing a billion new consumers with a radically different view of products and services, as well as in which surging resource costs – especially energy costs – crush today’s global business models.
In the past, when new waves of technology swept into our businesses – everything from the 1980s’ PCs to today’s empowered technologies – the reaction was the swinging pendulum of “decentralized/embedded IT” followed by “centralized/industrialized IT.” These tired old reactions won’t work in the world 2020. Instead, businesses must move to a model we call Empowered BT.
Empowered BT empowers business to pursue opportunities at the edge and the grassroots – but to balance this empowerment with enterprise concerns. Key to this balance is the interplay between four new “meta roles” – visionaries, consultants, integrators, and sustainability experts – combined with a new operating model based on guidelines, mentoring, and inspection. Also key is IT changing from a mindset in which it needs to control technology to one in which it embraces business ownership of technology decisions.
The teleconference chat window was busy as James and I presented our research. Here are the questions we weren’t able to answer due to time.
Microsoft began opening its own retail stores in 2009 and recently began a push into more US cities. A recent post by George Anderson on Forbes.com about Microsoft's new store format prompted me into some late-night analysis. It appears Microsoft's store format strategy is to ride in the draft of Apple by building larger-format stores very near, if not adjacent to, Apple's own stores. As a retail analyst and both an Apple and Microsoft customer for over 25 years, I feel compelled to weigh Microsoft's retail strategy against Apple's (and since I cover retail strategy from a CIO perspective, it feels appropriate to publish here).
Comparing eight success factors
Location: I'll start here, as it was the subject of the original post. Across from Apple may be the only sensible choice for MS, but the challenge MS has is that Apple is a destination store, i.e. people plan to go there for the experience. This makes it less likely they will decide to browse the MS store because it is close. On the other hand, assuming MS does some promotions to attract traffic to its stores, they are likely to also drive additional traffic to Apple. Predicted winner = Apple.
Store architecture: Size isn't everything! Sure Microsoft can copy Apple and go for outstanding store designs and even build them bigger, but Apple architecture is designed to reinforce a consistent brand image: minimalist, clean lines, designer. Microsoft's designs can reinforce many things about its brand, but it's hard to see the consistency in a way that's possible with Apple. Predicted winner = Apple.
Mike Gilpin poses this question in the most recent post to his blog. This question was sparked at Forrester’s Business Process & Application Delivery Forum during a conversation during the session “Using The Next Generation PMO To Promote Innovation.” What’s interesting is that the question came from an attendee -- presumably aligned with their firm’s PMO -- who said that in their firm, strategic investment planning is led by their enterprise architecture team, which is responsible for the strategic planning and business architecture processes.
There are multiple ways to come up with the “best answer” to this question. Nigel Fenwick discusses the answer in terms of the CIO’s responsibility to own strategy development -- and the coordination of functions necessary to carry out strategy. I’d like to answer this from the perspective of “what does it take to have an effective strategic investment planning process?”, examining the value the EA function and the PMO can provide.
My colleague Craig Symons, who is Forrester’s expert on IT governance, defines effective governance as ensuring the best answers to these questions:
Many clients have suggested their PMO mission is already elevated to this level. They now focus their efforts on everything from guiding business leaders through building a business case for the investments they want to make, to guiding decision-makers through selection from the portfolio of investment proposals, to tracking benefits realization and ROI after the fact. PMOs with this kind of business-focused, strategic mission have greater business impact and are often close partners with executives leading their firm.
With Halloween just around the corner, it’s time to get creative about how you can scare the pants off of the people in your IT organization. I’ve been attending a fair amount of CIO events recently, and in the spirit of Halloween I put together a few costumes that I can guarantee will keep your CIO up at night.
A Storm Cloud. While “The Fog” might have scared your CIO in 1980, thirty years later it's the cloud that is scaring him. Despite all of the hype around "as-a-service technologies" over the past two years, Forrester has found 48% of IT decision makers still say they are “not interested” or “have no plans to adopt” software-as-a-service -- a number that rises for other cloud-based offerings. Why the lack of interest? Security, integration, and lack of customization top the list of key SaaS concerns. Yet, as the cost savings and purchasing flexibility benefits becomes increasingly obvious, IT professionals know they have to get comfortable with their fears to reap the cost-saving and flexibility benefits that cloud-based offerings provide. (Extra costume points: Grab a lunch tray and say you are a cloud-based “server”. A full 59% of IT decision-makers say they are not interested or have no plans to adopt infrastructure-as-a-service.)
There has been a lot of negative press and commentary regarding the recent Queensland Health Implementation of Continuity Project (SAP HR and Payroll), which recently experienced a very public failure as many employees were not paid due to multiple points of failure in the project. The recent Auditor-General's Report on the process is damning, spreading the blame across multiple agencies and the systems integration partner, IBM. I make no claims to be familiar with the intricate details of the process, but I have read the report and feel I have a clear understanding of the (many!) points of failure.
While this project did seem to be a monumental failure, I would suggest that we consider two important facts:
Applications development people can't stand the Luddites in the operations group, and ops people hate those prima donas in apps dev - at least that's what we are led to believe. To explore the issue, two of my colleagues who write to the infrastructure and operations (I&O) role - Glenn O'Donnell and Evelyn (Hubbert) Oehrlich - invited me to participate in an experiment of sorts. They arranged a joint session for the I&O Forrester Leadership Board (FLB) meeting, and I was the sole applications guy in the room - a conduit for I&O FLB members to vent their frustration at their apps dev peers. For those who aren't aware, FLBs are communities of like-minded folks in the same role who meet several times a year to network, share their experiences, guide research, and address the issues that affect their role.
We infused the session with equal parts education, calls for joint strategic planning across all IT work, and a bit of stand-up comedy - Glenn noted that as representatives of our respective roles, he and I were actually twin sons of different mothers. I noted that in that context that our parents must have been really ugly. Once we opened the session for discussion, the good folks in the room wasted no time in launching verbal stones my way. Now, I'm no IT neophyte: I've been in the industry since 1982, and I'm no stranger to conflict - I grew up with 3 older brothers, and we all exchanged our fair share of abuse as siblings will. Still, I wasn't quite prepared for the venting that followed. To summarize a few of the main points, I&O sees apps folks as:
During Interop, I've been bouncing around between the tracks, going to sessions in both the data center and the virtualization tracks. I’ve learned a lot of interesting stuff that I would like to share with you all! The first data center session of day one was: Bridging the C-Suite Gap: How To Build The Business Case For Data Center Transformation with Brooks Esser, Worldwide Lead, CIO Agenda at HP.
Brooks started out by demystifying the role of today's CIO for infrastructure and operations professionals. CIOS are measured in three ways:
Accelerating business growth.
As much as they are technologists, CIOs are now also business people… they need to understand the business, management, and technology priorities:
Their goals in the business are to improve operations and process.
In management, their objectives are to link IT and the business and to reduce ops costs.
It's become the job of the infrastructure and operations professional to take those technology priorities and link them back to the priorities of your CIO and their business priorities.
"As soon as you can talk about management and business priorities, you can talk to the CIO about the technology projects you want to drive."
HP has a defined methodology for building any business case, which has three simple steps:
The thing is, I wonder how many CIOs see themselves as social evangelists. You’re a CIO...
Are you on Twitter?
Do you have a full profile on LinkedIn?
How about Facebook?
Do you understand how your marketing organization is leveraging social media?
Do you have a role as social advocate in the organization?
I believe one important role of the CIO is to help peers in the business to better understand just how transformational social media can be to helping increase growth and/or drive productivity to improve the bottom line.