Recently, in The New Yorker, Mary Powell, CEO of Green Mountain Power, a small energy company in Vermont, told a story of customer-obsession. Her customer-obsession starts simply: Help customers reduce their energy footprint at no net cost. Green Mountain accomplishes this by investing hugely in the latest and best technology, to pull electricity from the sun, insulate the bejesus out of the house, run massively efficient heat pumps, and micro-manage the draw on the power grid draw. Yes, the capital expenses and labor costs are immense. But when you reduce a home's energy footprint by 85%, you reduce the $250 electric bill by 85% -- or more than $25,000 over 10 years.
Green Mountain Power has a customer-obsessed culture and a customer-obsessed operating model. But it also has become expert in using technology to win, serve, and retain customers. The company is technology-obsessed, often out ahead of even the pundits when it comes to the latest technology. Green Mountain Power unites all three forces to be customer-obsessed: culture, operating model, technology.
The same is true for every company and government. Igniting a culture of customer experience is important. Relentlessly improving the operating model to put customers first is also important. But without the right customer-serving business technology in place, customers will be stuck with ancient web sites, cranky mobile apps, pathetic call centers, and disempowered employees.
There is a scene in the Broadway hit Spamalot in which a peasant jumps up from a cart of corpses and vigorously complains that he's "not dead yet". It's a humorous side-story to the main theme of the search for the Holy Grail. One might be accused of thinking of COBOL in the same way, as a side-story to the current major themes of mobile and web development, or perhaps as a historical footnote to the current narrative. IBM's recent announcement of major upgrades to its COBOL compiler technology provides a good reason to pause in our headlong pursuit of the latest technology to reflect on the value of COBOL applications in enterprise software portfolios.
While mobile and web technologies often garner everyone’s attention, the reality is that most organizations that have been around for more than 30 years still run their core business processes using systems that were written in COBOL. Anything that makes these apps easier to evolve and extend is a very good thing. The reality is that evolution and extension of these apps is critical to business success. In order for the flashy-new-social-networking-enabled mobile and web Systems of Engagement to succeed, the workhorse Systems of Record and Systems of Operation are going to have to evolve apace. This means that they must take advantage of the latest architectures as well as being refactored and modularized to align with a service delivery model.