I stated in my last article that an adaptive enterprise—or, as this customer likes to call it now, an extended enterprise—is built, not bought. It is a transformational process, and every enterprise arrives at the task of transforming itself with a different history and different goals, priorities, and needs.
Articles Tagged with transformation
A critical factor in achieving speed of execution is being clear about who gets to make which decisions. Governance is about establishing a framework to ensure that all decisions are made by the right person or persons, according to the importance of the decision and the expertise and organizational responsibilities of the parties to the decision. Decisions with large financial impact must be made by senior managers as part of an ongoing management process, while those with lesser impact are more efficiently made by those who are accountable for executing the decisions.
This Field Notes series chronicles my experiences with a major transformation project I’ve been involved in for the past eighteen months. I have worked on almost every aspect of this project, from application rationalization to portfolio management to reconstructing business processes and aligning and synchronizing IT with the business.
Companies are still facing an era of unprecedented and continuous change. In fact, perhaps the most striking feature of today’s business environment is its dynamic nature. While change is often unexpected and disruptive, companies that adapt quickly can gain a competitive advantage. I’ve said this many times in the past, and it still rings true today. It’s been awhile since my last post, and just when I thought it was safe, they pull you back in again. If you don’t recall, I’ve been heavily engaged in a massive IT transformation project for a very large multinational corporation for the past year and a half. This corporation has multiple business areas with multiple business units under those areas. This creates an environment where the very idea, or mention, of change is extremely scary for a lot of the executives I’m dealing with. I’m finding out quickly that the concept of portfolio management is not a widely grasped concept and is relatively new to many.
I recently spent four months mired knee-deep in a large enterprise transformation project, analyzing and working directly with the customer on a bloated application portfolio rationalization. This isn’t easy, especially with a very large, diverse enterprise. Companies of this type have multiple business areas, some of which in turn have multiple business units, each with its own complexities and quirks. These areas and units each have their own versions of shadow IT. Further, in the name of being more productive, they may choose to use applications that aren’t known or supported by the central IT organization.
The use of the cloud is not governed by technology so much as it is governed by cost: the cost of on-premises management, support, expertise, and environment vs. the cost of cloud services and outsourced expertise, management, etc. The cost differential must be high enough in the short term to allow it to become valid in the long term. There are lots of cloud calculators out there. Since Apple, Dropbox, and others have changed clouds or moved to their own data centers, what does this tell us about the future of cloud?