Schumacher Partners, Business & Technology
Consultants - Business Value by Design Sydney, NSW Australia 2000 - Phone +61
(0) 2
8011 3057 - E-mail infosp@schumacherpartners.net
We blog about interesting BizTech events, new themes popping up and items of interests in the areas that we are involved in as Business & Technology consultants and analysts.
We love to receive your comments or your trackback to our blog posts via the buttons underneath each post. You can also send a message with your comments ⁄ requests or questions via the web contact form.
25 Oct 2006 - Options of documenting business requirements for a new IT system
11 Oct 2006 - Latest development in the online office - Will Microsoft retaliate against Google's move?
09 Oct 2006 - Dialogue Mapping - Facilitation and technology for more effective meetings
06 Oct 2006 - New Competitive Intelligence (CI) online repository
25 Sep 2006 - Guess who's won - My Desktop or the Web?
22 Sep 2006 - Close to adopt the new Managed Funds industry standard
21 Sep 2006 - Organisations grow with the quality of their data
18 Sep 2006 - Schumacher Partners in ZapThink's worldwide SOA consultancy study
Recent comments...
Blogroll - links to other Business & Technology Blogs that we read ourselves...
Schumacher Partners in the Press and on the Web
Sat 1 9 2007 by Wolf Schumacher
The Australian Press recently started to cover our very successful implementation of an administration system for Self-managed Super Funds (SMSF), a project for Australian Superannuation Administrators (ASA). The Aussie IT press picked the story up and produced two interesting articles recently: Computerworld Australia and the Sep 07 Rust Report. Find them here and here. You'll notice that the Rust Report does not have a URL by page and you need to Search for 'Schumacher Partners' on the site to track down the Sep 07 report..
We expect the financial press to follow suit and to soon publish similar articles from a Business perspective.
If you'd like to take a close look at this web based SaaS (one instance, multiple tenants) system and talk to ASA's CEO and his experiences with the system and its developers (us), please just let us know here.
Recently Stephen Alexander delivered a speech at an executive event that was hosted by and performed for the South Australian Government. More than 200 senior executives across Government demonstrated high interest in "Creating Public Value" with their participation. Find details and resources about this important event here.
Please watch this space for more information about our project successes and events we are taking part in.
Our friend and colleague, internationally acclaimed consultant and speaker Mark McGregor has written an interesting article contributing to the understanding of Business Process Management (Definition by BPTrends). Enjoy!
"Given the hype and the publicity that has surrounded the term business process management (BPM) over the past 18 months to two years, there can be few in the information technology industry - whether vendors or users - who have not at least heard of the term. But the mass of information about BPM has, in many cases, led to confusion over what it stands for and what it really means.
The acronym BPM, for example, has been variously used to describe business process modelling, business process management, business performance management and best practice management. The emerging consensus, however, is that the term BPM stands solely for business process management, while the practice of BPM includes process modelling, performance management and best (or next) practice.
From a technical perspective, BPM started out being used to describe a new generation of technologies that could be viewed as workflow++ or workflow 2.0. But like so many elements of the computer industry, that early definition has become blurred.
For instance, it has since been used to describe new versions of everything from document management systems, content management systems, workflow systems, enterprise resource planning (ERP) systems, customer relationship management (CRM) systems and in fact just about anything where the vendor thought they might get greater traction in the market by using the BPM acronym.
But BPM is about much more than just technology. It is very much a management philosophy and is about doing business differently.
Customer focus A key differentiator is that it approaches business from an 'outside-in' perspective rather than mimicking the inward-looking focus of most other approaches to the management of business processes. The main tenet of BPM then is to look at, and to organise, the business from the perspective of its most important element - the customer.
Looking at the business from the perspective of the customer involves much more than merely adopting a 'customer focus' or a fancy mission statement asserting the organisation's 'customer centricity'.
It requires a far more fundamental examination of the business, with senior management asking questions such as: What constitutes success for the customer? And how can the business profitably deliver against those success criteria?
Only once those questions have been answered can the organisation reorganise the way it works accordingly, so that everything is geared to generating more of those successes - and minimising failures.
Of course, it also means questioning other things that the business does and asking, "If it does not contribute to those customer successes, then why do we do it?"
Interestingly enough, experience has amply demonstrated that organisations that take this 'outside-in' view and think long and hard about customer successes first, find it much easier to also drive waste out of their processes and systems.
Furthermore, the resulting cost savings tend to be greater than with a purely cost cutting program alone, and more importantly, such an approach does not risk damaging the very fabric of an organisation - as pure cost-cutting often did and as 1990s style business process re-engineering projects frequently did, too.
All too often, cost cutting and systemisation tends to be looked at from a purely balance sheet perspective, without sufficient regard to the damage that the resulting cuts may cause to an organisation.
By way of example, in times of economic downturn many organisations traditionally look to cut back on their marketing spend. However, it is now well proven that those companies that maintain their spend come out of the downturn much stronger and, in fact, very often overtake those who cut back. Why? Bec-ause, invariably they have started to cut away at the fabric of their organisation.
One example of the benefits of a strong - some would say relentless - customer-focused business is South West Airlines in the US.
The company has posted a profit every year for the past 30 years - when bigger name US airlines have struggled and failed - and is arguably a leaner, faster, better-motivated organisation than all of its competitors.
Why has the company been so successful? Because South West Airlines has a clearly defined strategy that is relentlessly focused on the customers it wants, and the way it keeps those customers happy - flight after flight.
Most importantly, the company has organised itself entirely based on what it takes to deliver on this strategy. South West Airlines has proven that the combination of strategy, people and process make the difference, particularly when placed in the context of customer outcomes.
Old and new For BPM to deliver the biggest benefits, organisations have to look and think differently about their business and its processes. It is in this requirement that BPM differs from the existing workflow and document management systems approaches that companies might already be familiar with. But at the same time, those systems are still likely to be needed to support BPM when it is fully implemented and understood.
In short BPM is not about throwing away those old systems and approaches, but instead it is about ensuring that those systems deliver both the intended benefits and the required benefits in order to maintain a competitive advantage.
Simply putting in a system to reduce costs is of no long-term benefit to the organisation if that system does not in some way deliver greater benefits to the customers.
Perhaps the biggest challenge facing any organisation considering undertaking a BPM initiative is dealing with cross-functionally. To be effective in BPM means breaking down artificial, internal boundaries and instead organising people and resources in the most appropriate way to deliver the goods and services to the customer.
Inevitably the idea of challenging the status quo of traditional hierarchical structures meets with many objects and a lot of obstacles! That is why BPM is not something that can be driven by IT or managers low down in the structure of an organisation.
To be successful, BPM has to have a profound impact on the organisation, which means it will require support and approval from the very highest levels."
You better win the hearts and minds of stakeholders for your projects!
Sat 11 8 2007 by Wolf Schumacher
We are very sorry that we haven't been able to write a blog entry since the 30th of June. We had a few colleagues and friends suffering from the recent bad flu outbreak in Australia (it's Winter here and it shows) and the rest of the crew had to hold the fort in the meantime. Now we're back on our regular staffing level and all of you can expect regular blog entries from now on (unless another event stops us doing so).
For this blog entry we selected a great article by our friend and consulting colleague Bob Lewis, president of US-based IT Catalysts, Inc. Bob uses the right words when he reminds us to win the hearts and minds of those people who are most affected by a new project or any engagement for that matter. Some may call this "Stakeholder Management", which sounds mechanic and is not exactly what Bob had on his mind when he wrote the following piece. Enjoy!
"Carl Sagan told the story of the last question on a biology final exam: "You're part of the first expedition to Mars. How would you determine if there's any life there?"
One essay -- it earned an A -- went like this: "Ask the inhabitants. Even a negative answer would be significant."
Here on Earth, the anthropologist and adventurer Thor Heyerdahl sailed a raft, the Kon Tiki, from South America to Easter Island. His goal: To demonstrate that his hypothesis regarding cultural diffusion from South America into Polynesia was possible.
Prior to Heyerdahl's landing, archaeologists and those who play on the fringes of scientific inquiry had developed a wide variety of elaborate theories to explain how the island's famous multi-ton stone statues came to be erected. Among the more popular: Space aliens did it, presumably as a change of pace from leaving crop circles in the English countryside.
Heyerdahl took an approach to discovering the answer that was, if anything, more daring than sailing his raft across the Pacific ocean. He asked the inhabitants, who happily demonstrated the technique their ancestors had used.
In corporate America, right now as you read these words, there are companies in trouble. The executives responsible for running them don't know they're in trouble, but they are.
The reason these executives don't know their companies are in trouble is that they've never pondered the question of life on Mars, nor the mysteries of Easter Island. Their knowledge of the companies they lead comes from financial reports, information provided to them through the chain of command, and their memory of how things used to be when they were lower in the hierarchy and closer to the action.
Were they to ask the inhabitants -- were they to talk directly to employees and customers -- they would know that:
Recent attempts to cut the cost of raw materials have resulted in deteriorating product quality.
The "successful" system replacement project didn't actually turn off the old system, which means that a third of all financial transactions are posted using unaudited ad hoc patches.
Following the recent offshore outsourcing effort, on-shore employees are spending a quarter of their time translating variable names and comments written in Urdu to English. They charge their time to maintenance so the outsourcing project will look more profitable.
Employee morale is in the sub-basement because, following the significant wage concessions by employees needed to save the company, the top executives received serious bonus packages. Employees drew the obvious conclusion -- that their wage concessions were needed, not to save the company, but to fund the bonuses. (Okay, this last one didn't require talking to the inhabitants. Even the tiniest amount of empathy would have sufficed.)
Many executives have read about the importance of "walking around." And so they do. They walk around, exchange pleasantries with "rank and file" employees and figure they've taken the pulse of the company.
An observation which might or might not be relevant: In my admittedly limited and indirect experience, officers (and former officers) who use the term "rank and file" are also the ones who consider their military forces to be nameless and faceless troops who they blithely send out to be shot at for no valid tactical reason.
They are also more likely to refer to dead civilians as "collateral damage," not as tragedies.
The officers who refer to these same people as "soldiers" or "men and women" are more likely to choose the right battles and tactics. They are also more likely to have real conversations with the men and women who do the actual fighting and know what conditions are really like on the ground.
They listen, that is, to the inhabitants.
Since we're on the subject of military tactics, here's a piece of wisdom that's at least as old as Sun Tzu: The battle is always for hearts and minds.
Taking and holding land certainly matters. It just doesn't matter as much, because if you have the hearts and minds of the men and women who fight for you, and of the civilians who live in the disputed territory, you'll end up with the land. Without their hearts and minds, you'll lose tomorrow the land you took today.
While the stakes are less dramatic, as an IT leader the same wisdom applies to you. Whatever you're trying to accomplish, you first need to win the hearts and minds of the men and women who have to make it happen.
They are the inhabitants. If you want their hearts and minds, talk with them."
Enterprise 2.0 in need of user-centric value verification
Sat 30 6 2007 by Wolf Schumacher
Two weeks have passed since our last blog entry that announced the Enterprise 2.0 conference in Boston. In case you are not fully aware of what E2.0 is all about, read the last blog entry with explanations here.
Wisdom of crowds
"15 months ago when E2.0 started, I thought the IQ of a crowd was only half of the IQ of its dumbest member, now I know the IQ of the crowd is twice as high as the IQ of its smartest member."
Prof Andrew McAfee, 06/07
In the meantime the 2007 Enterprise 2.0 conference has taken place in Boston, MA and it sure was a great conference with lots of new insight, solutions and knowledgabe people exchanging ideas and pieces of experience.
Andrew McAfee, the inventor of the term Enterprise 2.0 delivered a fantastic key note about the state of the meme.
Watch the 24 minute video of Andrew's presentation here.
Andrew's main discussion points were:
Awareness for Enterprise 2.0 worldwide has risen considerably since last year,
The technology progress is excellent, even that Andrew feels he is "drowning" trying to keep up with the evolving toolsets,
Yet communication of the results to interested organisations is still spotty.
The last point caught my fancy. Andrew talks about vendors of E2.0 solutions that bring forward ROI's that are untenable high (e.g. over 100%). If they would be right then organisations should invest in these tools alone and not spend money on anything else. It doesn't help the spread of E2.0 to rely on faulty supply (e.g. vendor) centred value assessments. Yet we see more value models coming through from vendors and those analyst companies that help vendors with their marketing efforts.
At Schumacher Partners we know from experience that vendor centred cost⁄benefit models are not suited for the demand side of IT solutions, i.e. those organisations that potentially deploy E2.0 tools. These models are too simple in assuming that one ROI could be computed for an organisation and don't take stakeholder aspirations and experience into account.
Alternatively, the proven Schumacher & Alexander value framework concentrates on analysing with and for organisations the realistic value that can be unlocked and created for all stakeholders with new capabilities such as E2.0 technologies.
We invite organisations that are about to deploy E2.0 collaborative solutions or other technology for that matter to get to know the S&A value framework and how it can help your organisation to unlock and create value from new capabilities. Contact us here and we will send you information material and references about our S&A value framework.
Upcoming 2007 Enterprise 2.0 conference in Boston, MA
Sat 9 6 2007 by Wolf Schumacher
On 31 March this year I wrote about the Enterprise 2.0 phenomenon which is now a little over one year old. Popularized by Harvard prof Andrew McAfee, Enterprise 2.0 is rapidly moving out of the shadow of Web 2.0 and takes more effective forms of online collaboration to the business world where it successfully competes with popular themes such as SOA and BI for acceptance by CIOs and other IT professionals.
Definition Enterprise 2.0 v2
"Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers."
The Enterprise 2.0 conference, which is now in its second year, is a very important event when it comes to professional acceptance. Other than its cousin Web 2.0 which targets consumers, Enterprise 2.0 aims at corporations and governments with its offer of collaborative tools and technologies available to organisations and their participating stakeholders.
This year's conference, from 18 - 21 June 2007, where Andrew McAfee is a prominent keynote speaker, assembles not only academics and start-ups but also established global heavyweights in the IT world, such as SAP, Microsoft and IBM. They sense that there is something important to Enterprise 2.0 that may potentially bite into their customer base if they are not carefully watching the space and contribute to its further development.
Due to important client commitments throughout June and July this year I am not able to physically attend the conference but will follow it as closely as possible via the internet and skyping ⁄ emailing colleagues that are attending. I'll blog, though, about the most interesting events and tools ⁄ technologies and what they mean for organisations in a future entry. Stay tuned and read Andrew McAfee's blog. It is worthwhile and far less academic in style than you may suspect.
The worldwide operating BPM Group took an amazing development. From its humble beginnings at the height of the Business Reengineering movement in the mid 1990s through a strong time of growth with the global awareness of Business Process Management in the last few years to a sudden halt in the last few days.
BPMG has grown to a strong brand with corporate, government and private membership in the Hundred-thousands worldwide. Originally from the UK, its founder Steve Towers (where's Steve now?) took the group to the US and from there around the world. In Australia the BPMG successfully operates local chapters in NSW, Queensland, Victoria and the ACT, but how much longer?
What has happened? Last week we received an email from Terry Schurter, an executive of the BPMG, announcing that he would retire from the BPMG and concentrate on his consultancy Bennu Group (first time I heard from this company). Then the BPMG website www.bpmg.org was redirected to www.bennu.com. The vast BPMG content is no longer visible and with it all, including our, links to it. A short while thereafter an email arrived from BPMG director Stewart Ashton, who said that Bennu, the operator of the BPMG website, had sent an invoice to BPMG which was in dispute and Bennu, not legally justified, had redirected the website. Stewart maintained that the BPMG is solvent and that everything will be sorted out.
This whole episode of the largest BPM practitioners' group at the brink of disaster does definitely not help the cause of Business Process Management. We are not impressed by the quality of the processes handling the problems between Bennu and BPMG and also not by the quality of managerial actions (I hope there is no personal greed involved). We as members and training clients of the group are adversely affected by all this. We sincerely hope, though, that this PR disaster will be rectified very soon. We'll keep you posted via our BizTech Blog.
We have been writing our BizTech Blog since September 2006 and covered a range of themes that interest us. Recently someone said, though, that we could improve on the number of readers if our BizTech Blogs were more focused, i.e. deal with a limited area of knowledge.
We are not 100% convinced that our readers are of the same opinion and ask you to participate in a short poll: "Should we change our style of blogging?". You find the poll here.
This slideshow by our friends from SlideShare may help you to form your own opinion:
Here is our poll. We'd be very grateful for your opinion and will post the results in about a month.
IT costs down and value up on CIO's 2007 list of priorities
Sun 20 5 2007 by Wolf Schumacher
Recently the Australian CIO magazine published their annual "State of the CIO '07" research results.
I particularly like to review items of top priority for CIO's among which there has been one remarkable shift between 2006 and 2007:
2007
2006
Aligning IT and business goals
1
1
Improving internal user satisfaction
2
3
Business continuity ⁄ risk management
3
2
IT- enabled process improvement
4
4
IT staff development
5
6
Controlling IT costs
6
5
Measuring and communicating IT value
7
10
IT governance
8
8
Improving project management discipline
9
9
Regulatory compliance
10
11
Revenue-generating services ⁄ products
11
n⁄a
Internal IT knowledge management
12
7
Scaling IT globally
13
n⁄a
Data privacy
14
12
Even though "Controlling the cost of IT" is high up on the agenda of Chief Information Officers, this goal dropped from position 5 to 6 within a year. This shows that companies can now concentrate on strategic issues with deploying technology. Consequently, and as a case in point, "Measuring and communicating IT value" moved up three places from position 10 to position 7. This is remarkable and shows us at Schumacher Partners that we are on the right track with concentrating our project efforts on the Schumacher & Alexander Value Framework!
Read Stephen Alexander's blog entry from 11 May 2007 to get a basic idea what the Value Framework is all about.
Unlocking value in an interconnected sector (Part 2)
Fri 11 5 2007 by Stephen Alexander
With this second blog entry I will try to explain how our value methodology came about and where it stands now.
Part 1 from March 15 this year explored the problems facing decision makers in both the public and private sector when having to sign off on capital projects within a relatively short time frame.
In particular where the solution requires multiple stakeholders to be interconnected to each other and the proposition itself is based on incomplete data (as is frequently the case) rendering traditional cost - benefit analysis models almost useless.
I realised some years ago that a more flexible and intuitive approach was required for organisations in order to unlock value through innovation whilst staying within excepted boundaries of risk.
This was highlighted when I was asked by Dr Sue Vardon, the then head of Australian Government agency Centrelink (and now chief executive of South Australia Government's Families and Communities Department), to define the organisation's likely end point if it was to acquire the capability to transact electronically in both the back and front office. Through the use of my fledgling Value Methodology I identified the end point that, according to Sue Vardon a few years later, could be achieved in her words "within a millimetre". This was primarely accomplished by getting agreement from all the stakeholders including consumer groups on a set of overarching and interlocking principles for collaboration.
Once established we were, for example, able to determine that Centrelink would become citizen centric in its service delivery model. This in turn implied that citizens would have to choose where they would establish their eligibility (self service or via an intermediary of choice).
This then clearly identified that if the customer feedback was correct then Centrelink would open up a wholesale channel for intermediaries or advocates as well as a self service option.
We could then move on to estimating the value available to each party including customers and policy makers of any value propositions that would assist Centrelink toward this end point and the total accumulative value of getting there.
The Value Proposition
A value proposition should describe how a new capability (e.g. a combination of ICT, collaboration and skills) could be introduced to a described tactical or strategic scenario in such as way as to generate an estimated value to every identified core stakeholder within the interconnected ecosystem; sufficient for them to adopt the proposition and achieve a stated outcome.
The value proposition must also explain how it can contribute towards the organisational end points such as strategic goals.
The person responsible for building the infrastructure and more importantly the e-Transformation journey at the time was Jane Treadwell (most recently the CIO for the Victorian Government Chief Information Officer) with her challenge to evolve the value methodology.
Jane wanted any line manager or strategic planner to have a tool ⁄ method at their disposal that could initially assist in prioritising propositions by virtue of how much value could be unlocked which in my model was a fairly straightforward skill to learn. Then to get in to the more creative art form of generating additional new value and intellectual assets.
This work was started with Hylika De Greve, Jane's business development strategist, who outsmarted many technologists with his profound IT knowledge. We developed our first value trial around the simple proposition that a capability was acquired for Centrelink to collaborate with many charities and non-government organisations to assist citizens with emergency funding in times of crisis, Additionally the capability was tested to communicate and transact in a secure trusted fashion with the consent of the involved citizen. If the hypothesis was tested positively then we could unlock demonstrable amounts of value for all parties.
We were able to estimate the value and then verify the actual outcomes to each party via a simple trial with the Smith Family and a group of large support organisations as observers.
The results were indeed compelling for all, but the most interesting aspect and important lesson learnt was that once the various stakeholders understood the power of remodelling the resp. business processes and were given the opportunity to re-shape the processes (once the implications had been explored in terms of value for each player), then they started to actively participate in simplifying the process which in turn required a less costly technical solution concerning implementation.
The Schumacher & Alexander Value Framework
I struggled for some years to refine the value model until I joined forces with Wolf who had already mastered and developed a set of complementary methodologies where the merging of the two has created a very robust framework.
Together we have now put this into a 5 stage model (see below) and will shortly publish a beginners guide where managers will be able to complete section one, two and five themselves and be better able to manage the more complex middle two sections where they initially need some external assistance (which we are happy to provide).
Our model is now being used in a number of organisations from the Government and Non-Government to Private sectors around Australia, helping them to estimate, predict and verify value generated in an interconnected world.
We will soon start a new specialised blog where aspiring 'Value Soothsayers' will publish their experiences when applying the Schumacher & Alexander Value Framework to their own scenarios.
If you are interested to learn more about the Schumacher & Alexander Value Framework and its applicability to your situation please don't hesitate to contact us.
After a long week spent with clients I was about to write a blog entry about Systems Integration as I came across a brand new article by our friend Bob Lewis of US based IT Catalysts, Inc. It addresses a severe problem that many business processes have: They sometimes switch off brains of those people who are assigned to perform the process tasks:
"I've discovered a new process design methodology. I call it "Six Stupid."
Everyone knows that a group of people is dumber than its least intelligent member. Six Stupid is based on this insight. Unlike the better-known Six Sigma, Six Stupid requires the collaboration of at least six idiots, to design process flows that defy reason and preclude exceptions. To illustrate:
My wife and I ordered furniture on-line from a prominent multi-channel retailer. A few hours later we stumbled upon a better alternative at a much more attractive price.
The first retailer's website refused to cancel our order so I called customer service, where a polite representative told me she couldn't cancel it either. The reason? It had already been sent to the warehouse for processing.
When I suggested she contact the warehouse, she explained that it had no telephone number to call. Really. The only solution was for them to ship the merchandise and for me to refuse the shipment. When it arrived back at the warehouse, they'd restock it and credit my account.
Which is how it happened.
This wasn't a case of customer elimination management. Quite the opposite -- customer service took care of me just fine. No, this was an example of Six Stupid. Even if the merchandise had been picked and was waiting on the shipping dock, anyone with a gram of sense could have figured out that logging the shipment as departed, then rolling it directly to Restocking would have saved paying UPS twice to ship it back and forth. But policy, and the lack of telephone service, made sure everyone Followed the Process.
Then came the blizzard, and with it a Six Stupid airline experience.
It happened like this: I'd bought round trip tickets to New York City. A week after that trip I'd booked a long weekend in Florida.
Then plans changed and I had to stay in New York an extra week, which meant I'd fly to Minnesota Thursday evening so I could get on a flight to Florida the next morning. The fare rules, you see, didn't allow converting two round-trip tickets into one triangle fare.
Then, the day before I was to return to Minnesota, the weather service forecast snow there, and lots of it. The airline cancelled my flight in anticipation and rebooked me for the following morning, to arrive a half-hour after my flight to Florida was scheduled to depart.
I called customer service, explained the situation, and suggested that under the circumstances, routing me directly to Florida clearly made more sense for both of us.
But the fare rules still wouldn't allow it. The best they could do was to rebook my Florida flight to later in the day. I asked the guy on the phone to check with his supervisor, which he did. No-go: She wouldn't or couldn't override the system. "I guess I'd better speak to your supervisor, then," I suggested. He connected me.
"I know you have complex fare rules that mere mortals like me can't fully comprehend ..." I began. Those were the last words I would successfully utter for at least five minutes.
The customer service supervisor scolded me ... that's the only accurate description ... for (1) being disrespectful to the airline; (2) trying to game their fares to get a cheaper flight to Florida; and (3) now trying to cheat to get the best of both worlds.
I confess that by the end of the call I became somewhat testy. Anyway, the next morning I spoke to a different supervisor, described my previous attempt at resolution, and asked if the airline really wanted to fly me in and out of a blizzard zone when a simple and easy alternative was staring both of us in the face.
She told me the first supervisor had placed a red flag in my records. It said that under no circumstances should anyone help me out. She did anyway, routing me directly to Florida.
It was the opposite of the first Six Stupid situation: The airline's process did allow for exceptions. But I caught someone in a very bad mood who insisted on Following the Process anyway.
The point of this week's tiresome missive? There are two.
The first: Don't use the Six Stupid methodology to design whatever processes you're trying to implement. Make sure every process has a process bypass process to handle situations that just don't fit.
And second, make this rule inviolable:
Turning a new process on does not justify employees turning their brains off."
My take on this
People processes are not integration processes which force machines to do things logically. People processes should always be used by people with the brains switched on. That way execeptions can be handled which lead to customer satisfaction, sometimes even to customer excitement...a term by the way, I haven't heard since the heady days of Total Quality Movement in the beginning of the 1990s.
Saying this, I am back to integration...I will talk about that in a new blog entry...integration of people and integration of systems.
Congratulations, you just moved into the CIO chair...
Sun 15 4 2007
Our friend and colleague Bob Lewis is president of IT Catalysts, Inc. We like his regular musings and were granted permission to reprint. Here is his latest article about the things that a newly appointed CIO has to consider. Enjoy!
"As the new Chief Information Officer you spend the requisite month listening instead of talking, making no commitments, figuring out what's going on. You find a department that operates through oral traditions and improvisation. It needs, in other words, a healthy dose of process.
What's your next step?
Here's what the answer isn't: Design and implement great processes.
One of the stranger aspects of organizational change is that you can't often fix a problem by trying to fix the problem. At least, you usually can't fix problems directly, for two reasons. The first is that most of the problems you see are the symptoms of other, less apparent issues you don't see. The second is that the number of levers you can pull and buttons you can push to influence the behavior of the organization you lead is surprisingly small.
If an organization is underperforming, its processes aren't working as well as they should. This is a matter of definition: Process means how employees do their work.
That doesn't mean you can fix an organization by fixing its processes. Far from it. If you want stronger processes, starting with process design doesn't work very well. The buttons and levers lie elsewhere. Among the more useful:
Changing the business culture, to encourage a process state of mind. If you need an organization that's more orderly -- one that operates through well-defined, continuously improving processes -- begin with culture change. Otherwise, everything else you try to do will wither and die, killed through the passive resistance and malicious obedience of employees who just don't see the point and who like the less-bureaucratic way things are right now.
Educating process managers in the niceties of process management. Just as employees, left to their own devices, generally prefer informality to well-defined processes, process managers, left to their own devices, often prefer managing the work to managing the processes that manage the work.
Nor is this necessarily a bad attitude. You can, in theory, manage processes by watching key performance indicators, dashboards, and exception reports without once interacting with a live human being. To manage the work you have to interact with the people who do it.
If you want process to happen, process managers must learn the discipline of process management. If you want process to happen without doing more harm than good you'd better make sure they understand that process management isn't an alternative to leading people -- it's a complement.
Fixing the policy manual, most often by throwing out most of your policies. If the policy manual is thick it almost always means compliance has replaced strategy as the force driving the company.
It also means that whenever anything goes wrong, most managers instinctively try to prevent recurrence with a new rule. The result: A stifling, choking bureaucracy in which following the steps, filling out the forms and above all following the rules matter much more than achieving anything that resembles a useful result.
Once you've finished clearing out the policy underbrush, institute one new policy: Whenever possible, institute a guideline instead of writing a policy. Guidelines do the same sort of work that policies do, but they leave enough flexibility to get the job done.
Reorganizing. Many executives reorganize the way Correge models change attire -- frequently, as the mood takes them, to stay in fashion. Doing so has, as the saying goes, much the same effect as rearranging the deck chairs on the Titanic. A roll of duct tape would be more useful.
One reason the tool of reorganization is so often used incorrectly is that organizational structures are mis-represented whenever anyone draws them. Showing them as a hierarchy does a fine job of presenting reporting relationships. It fails to depict something far more important: An organizational structure is a set of boxes packed within bigger boxes set within even bigger boxes.
The rule for business processes is straightforward: Processes break in proportion to the number and height of the organizational barriers they have to cross. The challenge for organizational designers is that however you organize, the total number of boxes ... and therefore the number of barriers ... won't change very much.
So when you reorganize you aren't going to remove the barriers to all processes, because you can't.
All you'll be able to do is to decide which processes you improve, and which you make more difficult.
Choose carefully."
On another note:
For all of you who are waiting for Part 2 of the Business Value article by Stephen Alexander, this is due to be published at the beginning of May 2007.
We love Easter. In Australia it is the time after a hot summer and marks the beginning of autumn but it still has around 24 lovely degrees (Celsius that is). It is a time for celebration and relaxation before the project work has us in its grip again.
We thought we start Easter by giving you, dear readers, something to laugh about. The video shows a somewhat disturbed relationship between a computer geek and a business person; we find it hilarious.
Have fun and see you after Easter !
Fun aside, watch this truly inspiring video featuring Bill Clinton in the spirit of Easter:
You may remember that we blogged in January about the annual TED 2007 conference to be happening in March
this year.
Today, Good Friday 2007, TED published videos of outstanding speeches given recently in Monterrey, California.
Watch and listen to Bill Clinton giving his acceptance speech of the TED 2007 award for his accomplishments with the Clinton Foundation.
This is powerful stuff as William J Clinton is a dedicated and passionate humanitarian today. He is very
successfully helping to make our world a much better place with social responsibility, business acumen and great
The internet is no longer just a bunch of fancy online marketing brochures, repositories of downloadable documents and e-business applications. It has further developed into a communication platform, sparked by new technology commonly summarised with the term "Web 2.0", the second generation of the internet.
In short, Web 2.0 can be classified as technology that allows people to easily communicate (i.e. read, write, speak, watch) over the web. The hurdles are low and almost everybody can do it; a real challenge to professional communicators such as journalists and professional web designers.
In Nov last year we blogged that Web 2.0 already spilled over to the business world. First mover CEO's and company members write weblogs (blogs), companies set up wikis and entrepreneurs form online communities using social networking platforms. The media sometimes classifies this development as "Web 2.0 for enterprises". Last year Harvard Professor Andrew McAffee coined "Enterprise 2.0 (or E2.0)", a term which has been widely accepted since.
In contrary to Web 2.0 the adoption of Enterprise 2.0 has proven not to be an easy ride. There are a number of concerns attached to its further adoption in organisations of the private and public sectors, a few of which are:
Legal issues
Companies have to be sure that blogging employees represent their organisations in proper ways in openly accessible blogs and wikis. Since blogging became widespread, there have been several cases where people disseminated confidential information about their employers and clients.
One way how to deal with this issue is, to set up blogging policies (e.g. similar to our own) and train employees in communication and compliance behaviours as well as the proper use of blogs and wikis.
Issues of alignment between IT and business
Enterprise 2.0 is user driven, in that employees know Web 2.0 applications from their private use of the internet and request similar capabilities in their work environments. Traditionally, though, IT departments under the leadership of the CIO drive the selection and implementation of enterprise applications.
With Enterprise 2.0 this is going to change. Business users assemble tools, even put together applications themselves without IT involvement. This includes personal starting pages such as Pageflakes and Netvibes, or application builders such as Coghead and Teqlo. These tools don't require much IT know-how and are relatively easy to set up.
Commercial IT vendors already respond to this trend and provide tools for end-user development; e.g. IBM recently released QEDWiki. Find a list of white-label social networking applications that organisations can deploy with their own brands here.
Organisational hierarchy issues
Enterprise 2.0 doesn't know of any hierarchies, it is an even playing field. All users have the same right of writing about or comment subjects they are passionate about. This can present a not always welcomed trait of the internet for more hierarchically oriented organisations. The history of intranets has this story to tell: Typically there is not much communication going on on the intranet; yet the same people working for the organisation privately blog passionately and communicate regularly on social networking sites such as MySpace and Facebook.
Prof Andrew McAffee says that the E2.0 technologies really are something new under the sun. "They’re not extensions or enhancements to previous generations of corporate tools for collaboration and knowledge management; instead, they’re radical departures from them". They offer new communication opportunities with all stakeholders to organisations:
What if organisations would activate their people's passion for communicating via enterprise 2.0 tools with their colleagues about matters that concern their companies and the sector they are in?
As a practical example, what if Australian corporations would encourage their employees to use Enterprise 2.0 communication tools to start or further their engagement for Corporate Social Responsibility (CSR) ? How much money could be saved, business processes improved and positive PR generated ? Given the current public discussion about climate change this would definitely improve on communication within the organisations and across company boundaries.
A related, more personal, example: Two years ago I purchased a small fuel efficient car and financed $3,000 of the purchase price with a discount earned through my credit card sponsored by the manufacturer of the car. That was the only reason why I kept on using the card even that their interest rates are considerably higher than their competitors'. I am ready to replace my car now, but surprisingly received a note from the card company that they've decided to grant the full rebate of $3,000 from next month only to the large sized cars of the manufacturer. What's interesting is, that the card company is eagerly pursuing a corporate social responsibility program through public ads.
How handy would an E2.0 social networking platform come into play where I could discuss the issue of them promoting larger less fuel efficient cars via their credit card benefit program.
The more people that apply the new communication capabilities Enterprise 2.0 has to offer, the better they get at communicating with one another about company matters and the better the new tools are being actively applied. This will definitely affect organisations' bottom lines positively sooner or later.
Unlocking and generating value in an interconnected sector (part 1)
Thu 15-3-2007 by Stephen Alexander
I have been aware of a new milestone of the digital evolution creeping upon us over the last 18 months and increasing in its intensity since everyone returned from the Christmas break:
Concentrating on the public sector, I will address this development in two blog posts, starting with the challenge of interconnected services and with a further post by presenting ways how to unlock and generate value for stakeholders involved.
The digital evolution - ladder of adoption of internet technologies
For the first time in my internet oriented consulting career I have seen a downward pressure on senior business managers and CEO’s to comprehend the strategic threats and opportunities of becoming interconnected to everyone else within the sector they operate in.
Unlike in the past, where IT departments or middle ranking e-zealots were often the driving force for the adoption of new technology, this time it’s coming from the very top; in the private sector from the board of directors and in the public sector directly from the ministers and their advisers.
With this blog post I specifically address readers from the public sector, though the subject certainly may interest readers from the private sector as well !
Senior managers frequently experience external advisers directly influencing those who assess the value and relevance of their organisation’s worth. In the public sector we see this trend where for example government agencies are being introduced to the dreaded notion of contestability...if they can not meet new expectations to deliver better services using interconnectivity then they can suffer major budget cuts or even see their agency stripped of responsibilities.
I have seen this battle over the last year in Canberra from the front row with the reorganisation of the Human Services sector. Widespread rationalisation is now occurring driven initially by the previous Minister who had a very good grasp of consumer trends and expectations of on-line service delivery.
The conundrum business managers now face
How does a financial manager get multiple independent stakeholders to agree to pay for and then adopt an interconnected solution without the ability to predict if enough value would be realised to overcome barriers and inhibitors (e.g. lacking skills) and to justify their own commitment?
If they can’t offer a convincing qualified explanation then it’s very likely that they will not get the funding. So why is this happening now and what are the drivers?
Well my take on this is that as organizations find themselves part of an interconnected sector, where a critical mass of adoption of e-transactions between multiple parties has occurred, a new expectation will burden managers with potentially career-stunting consequences, unless they can identify and articulate where the end point is and how to get there using rapid incremental cost-justifying steps.
This is because for the first time corporate board and Government Cabinet members have worked out for themselves a few basic rules. I am sure this is motivated by the countless excuses given to them as to why greatly anticipated cost benefits from very costly projects, they signed off on, did not eventuate.
New rules and principles demand change
The first rule I noticed boards apply was the newfound ability of sharing services in a network; the expectation is to share them rather then fund yet another one, which currently is a big issue with State Governments in Australia.
The second rule is based on the initially vague but growing comprehension that it is possible to streamline business processes and attain real cost savings from greater productivity.
But the real challenge has come from the realisation that once the organisation links up to other parties using infrastructure and networks (like the internet) that is outside of its direct control then it can not (in the case of Government) mandate these changes.
Corporate board members have also been quick to realise that getting 3rd parties to adopt new services in this ecosystem environment requires something new and compelling: A tangible, measurable and meaningful value using specific criteria for each core stakeholder. They have also started to realise that the implications of not achieving the anticipated adoption will have major strategic implications for the organisation's market position and for corporations, even its share value.
An interconnected sector brings about a situation where a new set of rules and principles will be ignored by managers at their own peril. For example, in a business ecosystem everyone becomes dependent on each other to some degree. So the notion that adoption of any offering can be mandated or induced by traditional means is nonsense, as many managers have already experienced.
Importance of business value propositions
Regardless of the costs incurred and often hidden by the organization most attempts to generate sufficient adoption without a meaningful value proposition, that can be understood and trusted by all the parties to the business process, are frustrating and often thwarted.
So unless senior business managers can confidently predict the value of a proposed service, through acquiring a new capability, to each party then they risk to be seen by their superiors as driving blind.
There is a growing interest in the use of value frameworks and methodologies and the use of business process simulators as prerequisites to predict the outcomes of any value based proposal. Some of these tools can also export the structure of an agreed process directly to a new breed of aggregation exchanges saving months of work from teams of analysts and code writers.
But hanging all this together for aspiring CEO's without drowning them in confusing layers of complexity is the key to achieve a top down strategic approach to the migration of businesses in the digital environment.
Outlook...
The next blog post will offer practical recommendations based on a range of case studies on how to coach an organisation along this transformation pathway in small incremental self justifying steps. (stephen@alexander.name)
Yesterday I came across this funny and insightful piece on how we read books, papers and webpages. David Young of Wizard of Ads, an international advertising and marketing consultancy, wrote it. Enjoy!
"People who think that the internet is just print in a different medium are wrong. (Is your brain rejecting that statement?) Here's my little 'a-ha' demonstration
You are reading a book: read - read - read - backup to re-read a difficult passage - read - read - lick thumb to turn page - read - read - read - and so on.
You are reading a newspaper: scan - scan - read - read - scan - read - turn to page 8A - read - back to page 1 - scan - read - turn page - scan - continue.
I am reading a newspaper: find the comics - scan - skip - read (just the funny ones - why do they call the boring ones 'comics'?)
You are reading engaging a web site designed by someone who believes that web sites are just like print: scan - scan - read - look for nav link - look some more - click - scan - wrong page click back button -find another nav link - click - scan - read - click - back to search engine.
You are engaging a web site designed by someone who believes the web is different: scan - read - click - scan - click - scan - read - read - click - scan - click - type - click - type - click - wait for UPS truck to deliver merchandise."
You may remember, we wrote several BizTech Blog entries about Australian CEO's not participating enough in the blogging phenomenon. As one of the reasons we identified missing technical know how; yet there is not much technology to pick up for starting to blog. It is all pretty easy for someone familiar with Word and Excel which, I assume, most business executives including the CEO would be. There is some tricky techie stuff, though, that could potentially deter someone from participating; e.g. the RSS feed format and blogrolling are certainly among tools not widely known outside the blogosphere. Again, it is pretty straightforward to teach someone the use of these tools.
OK, but what about the business itself, doesn't it require knowledge about business technology by its leaders? Shouldn't CEO's master some level of IT knowledge that allow them to make sound decisions involving Business Technology ? As we mentioned in earlier blog posts, modern organisations depend on technology for day-to-day operations and sometimes for their survival. But, stop, what about Chief Information Officers; isn't it their task to look after technology and provide proper advice to their CEO's ?
"Throughout my career I have watched the 'odd couple' of the chief information officer (CIO) and the chief executive officer (CEO) try to live together. Their paths rarely crossed; the CEO didn't think much of technology and the CIO rarely interacted with executives beyond his boss, the chief financial officer (CFO)."
George F. Colony, CEO of Forrester Research 27 Feb 2007
George F. Colony, Chairman of the Board and CEO of global Forrester Research corporation, recently looked at this issue and released a highly interesting article titled "My View: The CIO and the CEO". He cites a Forrester survey targeting 75 global CEO's satisfaction with the performance of Information Technology (IT) ⁄ Business Technology (BT) and thus their satisfaction with their CIO's:
Only 60% of CEO's are satisfied with IT⁄BT, i.e. their CIO's overall performance.
In comparison, if this was the CEO's rating for their Chief Financial Officers (CFO) these would be sacked, as not tolerable for their companies, right away. With CIO's it's different. The CEO's satisfaction rate for CIO's overall performance with 60% is low, because both hardly talk to each other, in some cases even speak different corporate "dialects". CIO's try to accommodate that by trying to speak the business "dialect", but only to get in trouble with their own technical people who may feel alienated. A case in point: Recently a bunch of software people complained about their CIO to be too far removed from network developments. Consequently, CIO's should not try to outdo business execs in their fields but rather stick to their own turf and make that comprehensible to business stakeholders.
George F. Colony proposes a recipe for upgrading the overall performance of the CIO in the eyes of the CEO: The CIO's should transform themselves into coaches, i.e. educate CEO's and other business executives to understand the world of IT⁄BT better. This is most likely true as CIO's rarely make it it to the top of organisations. Therefore CEO's, that frequently hail from accounting and other non-technical areas, typically don't have the knowledge required to deal with business decisions intertwined with technology. The quality of their business decisions that involve technology would profit greatly from coaching efforts by their CIO's.
Once CEO's have a more profound level of understanding business technology issues they will begin to see technology investments differently. They will begin to see business value potentials rather than only short-sighted cost aspects. But this will be the subject of another blog post.
Two messages in the online Australian IT from today woke me up. The first one said: "BlueScope kills green screens in $60m overhaul" and the second one read: "Coke refreshes systems" and the article explained further "...this project will cost Coca-Cola Amatil at least $50m and will last seven years".
As consultants we regularly come across a number of these types of projects, where organisations don't like their dated systems any more and instead turn to replacing them, sometimes with new types of legacy systems.
What we find amazing is the big Dollar figures that are traded with these system changes - $50m or $60m sound more like IT projects in the 70's, 80's or 90's than nimble and agile business solutions that can be had these days. Additionally, project lengths of 5 years and longer conjure up the likelyhood of failing projects. Specialised researchers such as The Standish Group certainly can testify that.
We fully understand that companies are unhappy with old systems. The programmers that developed the systems are retired, the old user interfaces are nowhere near as attractive as new web based or modern desktop screens and batch access to the databases can be sluggish and the methods of retrieval are not very sexy. But the old systems ran the companies' data brains successfully for a very long time and contain most of the business logic which is not easy to transpose into new systems.
As Terry Ragon, the founder, CEO and owner of InterSystems International Corp. convincingly said in June 2006 before the United States Senate Committee on Commerce, Science and Transportation:
"A key dilemma facing many organizations today is "How do I move forward with new technology when I have to live with existing systems that are already embedded in the organization and are doing an effective job of running the business?" As the new millennium approached some 7 years ago, many organizations rushed to "rip-and-replace" all of their legacy systems with a single new system. A high percentage of these projects were failures, either admittedly so or in fact. Companies learned first hand that they had no choice but to live with their existing systems – even as they endeavored to move forward and modernize."
These are some of the reasons why the "rip-and-replace" method does not work:
The know-how keepers of the old systems and business processes have walked out the door, often without having been asked to pass on their know-how to the new generation.
The expectations towards the new systems are typically very high and hard to fulfil.
The external and internal promoters of the new system typically overpromise future availabilities.
Users hope that the new systems will solve their specific business process challenges because of the promises that everything will be better in the future.
Attention is centered on new IT solutions and away from the more pressing business challenges.
If "rip-and-replace" does not work, what is an alternative and better path for organisations to modernise their business system environments?
Our first advice is: Concentrate on the business itself. Learn to understand the value that the existing systems bring to the business and its stakeholders (e.g. customers). Then assess the value that the future business processes should bring to the business and its stakeholders. To be able to do these value assessments it is necessary to map out the future business processes on a high level, starting with real stakeholder expectations and strategic objectives of the business.
The next step is to prepare the business for the amalgamation of the existing legacy systems with new system support. The most effective way to do that is to take the maps from the high level business processes, refine them further and translate the outcome to an application and database exchange platform which is able to link to the old legacy systems and new emerging applications. The platform should allow for accessing all data (old and new) via modern interfaces (web and⁄or desktop) in real time and be able to route data and logic using an attached or built-in business rules engine. This will also serve as a conduit to make old legacy systems redundant over time.
Ensemble from InterSystems is an affordable exchange platform that we suggest as a cure for clients' stifling legacy woes. For more information please contact us.
Yes, Australian CEO's should blog ! - Results of our recent poll
Sat 3-2-2007
At the beginning of this year we ran a short poll among the visitors of our blog. We asked the question: "Should Australian CEO's publish weblogs ?" This question was triggered by our recent blog about the sorry state of the Australian Corporate and CEO blogging scene (i.e. public blogs outside the firewall).
Our un-representative yet with 54 votes statistically relevant poll showed that more than 70% of all visitors want Australian CEO's to blog, i.e. share their opinions about their businesses and private matters via a weblog with the world. Almost half (44%) say, they would like to know what the CEO's personally stand for, in times of job losses and unprecedented climate change a very relevant position. Another 20% concurred with CEO's blogging, as it is the primary task of executives to openly and timely communicate with people and stakeholders from the marketplace, employees and business partners.
A minority (22%) has a negative opinion, though, and believes it is not the task of the CEO to blog and should leave that to PR people (9%) or better concentrate on running the firm (13%). Three out of four visitors commenting as "Other" (7%) disapprove as well. Find their comments in the box below.
The result of this poll confirms our own position. We believe, it is the duty of the CEO to share his or her view of things with the world and that blogging is a fantastic way to do just that. It will reduce the amount of spin resulting from massaging corporate messages through PR departments and spokes persons.
We are keen to find out if ASIC will follow the US Security and Exchange Commission's example and encourage Australian CEO's blogging about company matters with financial relevance.
What "Others" said (7% of votes)
No, CEO shouldn't mix fun and work. Yes, but only if they have something interesting to say. They're too busy and have other things on their mind. No, I don't think they can write
So, what is the best way to get CEO's and other executives started in writing their own weblogs?
Our best advice for starting corporate and CEO blogs is: "Just do it!"
The tools are here and the process can be easily established. If you want to set up a project or a workshop ask us.
Further information regarding Corporate and CEO Blogs
Debbie Weill, the US based "guru" of Corporate and CEO blogging currently has an online survey live which will yield much more insight as what we could produce through our brief poll. You find it here.
To sweeten the task of filling out Debbie's online questionnaire, you can win her "Bible of Corporate Blogging".
It is one of the biggest and most important events the world knows - the Annual World Economic Forum (WEF), this year from 24-28 January, in Davos⁄Switzerland.
An increasingly large crowd of the world's most powerful political and business leaders gather for a few days in the famous skiing village in the Swiss Alps to discuss world matters in an almost private atmosphere with Dr mult Klaus Schwab, a Swiss professor of German origin, social entrepreneur and holder of numerous academic titles and honours for initiatives in the global public interest.
Klaus Schwab initiated the WEF thirty years ago and still oversees it to this day. The annual meeting has grown almost out of proportion because the town of Davos, formerly only known for its healing benefits to TB patients (Thomas Mann wrote his famous novel "The Magic Mountain" about this), can only hold that many people. Many of the more than 2,000 participants find temporary accomodation in neighbouring towns such as Klosters and other quaint skiing villages.
Klaus Schwab is very much in favour of bloggers and video bloggers as he claims the WEF has always been at the forefront of technology to communicate with the world. Podcasts are one new way to use technology to spread the Forum's messages which Klaus Schwab this year summarized in "The shifting power equation" - i.e. from the center of power to the periphery.
Consequently in Davos Bloggers sit side by side with the international media and Jeff Jarvis even invited fellow bloggers to use uTube to voice their questions and answers via video during the forum and after:
Forrester recently proposed a new IT research category that combines Systems Integration and Business Process Management technology into a new category, which they dubbed "Integration Centric Business Process Management" (IC-BPM)". This is an acknowledgement by a leading IT research house that the BPM-SOA convergence discussion is no longer just simmering along. The market begins to take note of products that allow organisations to integrate business processes from the design level right through to execution.
As you may have noticed, at Schumacher Partners we have been saying for quite some time that BPM and SOA are two sides of the same coin. BPM as a business process technology helps to define and orchestrate business services and SOA is about implementing and executing business services. One needs the other. An organisation's business architecture that recognises this technological dependency definitely is in good shape.
As Business & Technology Consultants we believe it is our obligation to give sound advice that helps executives to make sustainable decisions regarding their choice of integration technology to support their businesses.
BPM+SOA integration products that forward looking organisations should turn their attention to
So what is our general advice to organisations which want to take a step forward into the bright new world that BPM+SOA promise for the integration of systems? (Please note that you need custom advice if you want to be certain regarding your organisation's specific situation.)
You've guessed right, we do provide this type of advice, please contact us here. If you reside outside OZ⁄NZ we can recommend competent and reliable partners⁄colleagues in your part of the world.
We advise organisations to turn towards integration solutions that are (1) agnostic to infrastructures, and (2) allow for the seamless integration of existing and new systems from the business level (BPM) to the execution level (SOA).
Regarding (1): It is a pain to be required to amend business solutions following the massive change of an underlying infrastructure. Anybody who has lived through e.g. moving legacy applications from mainframe to client-server environments or from one operating system to another knows what we are talking about.
Regarding (2): Many BPM technologies today have been derived from workflow systems, i.e. they were conceived pre-SOA. They were not built with automation of business processes in mind and typically only help in human workflow design situations. Any BPM product that does not support the full output of business processes to BPEL belongs to this category. BPEL, short for "Business Process Execution Language", is a standard language based on XML that enables process execution systems.
Not considering the specific situation of an organisation, our general advice is to:
select an integration solution that is agnostic to infrastructures
select a BPM solution that allows graphical design and output to BPEL
select an integration solution that drives process execution via BPEL
The Ensemble and Bonapart integration products
Based on our experience and product research we recommend Ensemble from InterSystems International Corporation as the Business Process Integration Solution of choice. It has it's own BPEL graphical designer and lots of prebuilt adapters for integration with 3rd party solutions ⁄ environments ⁄ databases and tools. It also has its own application development environment, a business rules engine as well as the high performance database Caché built in.
What Ensemble doesn't have, though, is a simulation engine that would allow for simulating new business processes as to their effect on resources (e.g. manpower, time, cost) before commitment to execution. The best tool that we've found and used is Bonapart. This BPM software tool was originally designed at the University of Berlin by Prof. Krallmann following Petri Net principles. Bonapart, which is heavily used in American military information architectures as well as selected large European organisations, allows for simulating business processes taking inputs and their priorities in consideration before commitment to execution. Through BPEL Bonapart can be fairly easily integrated into Ensemble BPM+SOA implementations.
Lastly, Bonapart most likely accomplishes (confirmed today by Gay Anne Wood-Albrecht, an experienced Bonapart consultant from Tucson, Arizona) what our colleague Roeland Loggen was looking for in his recent blog about the following advanced simulation capabilities, which he misses in other BPM tools:
"Working days and working hours
For realistic throughput and cycle time, especially in financial organizations, it is essential to be able to model working time (9:00 - 17:00) and working days (no weekend, no vacation days).
Timed batches
The possibility to define a batch. A process instance comes to a certain point, and then needs to wait for the night batch to continue. The batch can be modelled as a resource, that will execute one of more tasks from the process instance (but then I need to be able to allocate a resource availability!). After these steps, again, the process should wait until the next working day, to continue...
Process instance allocation of a shared resource
In certain processes, there are resources that have their own schedule and maximum size.
As an example - let's assume we have a process that produces plates. Plates need to be painted (activity by a resource), and then placed in a drying room. A drying room has a certain capacity, and will take up to X plates (aka process instances, each for a certain plate). Again, I need to feature to model this resource, that is able to pickup a set of process instances, execute an activity (dry) in each of them, and then release them....
Grouping of process instances based on certain shared elements
Factories usually have production schedules, where certain tasks are combined (first we do all the products XYZ, then ABC), to minimize machine setup and improve efficiency⁄focus. Again, where is the possibility to do this.
Machine maintenance and setup
In more factory setting processes, we will have machines (resources), that will need setup time (when processing a certain process instance that is for a new type of product). And these machines need maintenance, leading to downtime. So, when triggered for use, a resource as a machine, should be able to take out time from the waiting process instances, due to setup time and maintenance time.
More advanced resource selection and allocation
All types of features to be able to select resources (people, machines) based on business rules, driven by (random) data in a process instance (type of product, level of investment, etc)...."
The theme of integrating systems following the BPM+SOA path is close to our hearts and minds and keeps us busy throughout many of our consulting days and nights. If you would like to learn more, please give us a buzz.
Roeland Loggen, a fellow consultant from Holland, writes a great Blog. He freely shares his thoughts and experiences about business transformations via BPM and SOA and the New Web with the world. I feel in tune with Roelands musings and present one of his recent posts to you which provides a fresh and uncluttered look at Business Process Management. It goes to the roots of the concept and positions BPM like this:
"1) Organizations do not exist. What does exist are legal units (paper), and groups of people performing work, to achieve their own objectives, and⁄or working together to achieve a (part of) group objectives.
2) Processes do not exist. What does exist are people that perform activities. And sometimes these people perform activities in such a way that a pattern seems to appear. Through interventions these patterns can be more enforced, so that the chance that the pattern reappears, grows. Interventions can use a process (model) as one of the ways to reach this.
3) Processmodels are not the process. A model is always less than reality (unless it’s a beauty contest model…). So a processmodel will miss certain aspects of reality. Processmodels, as used in interventions have therefore limited value, and can also be inappropriate.
4) In many organizations much of the work done, is not recognized as a (shared notion of a) “process”.
5) Process-knowledge is often not explicit. It is stored in people’s head, and sometimes in IT systems. The same is true for business rules.
6) Every process effort (modeling it, discussing it, measuring it, trying to influence people to alter their "patterns", introducing⁄changing technology) can be called "Business Process Management".
7. BPM is a set of tools for human intervention. To try to make people follow certain patterns, which comply better with the (perceived) organization's or manager's goals and ambitions. Not more, not less."
What I particularly like about Roelands piece is that it looks at the basics of work, how it evolves into patterns, from there into processes, that can be further refined, altered and standardised.
Sadly, too often BPM is a purely technical event of designing processes far away from the business reality. If BPM is understood that (wrong) way companies are prone to loosing knowledge and, sometimes, their identity. A case in point are a few publicly discussed BPM projects with the goal of outsourcing processes to overseas operators. No wonder BPM projects sometimes receive mixed reactions by members of the workforce when consultants step into an organisation for the very first time.
Well done Roeland. Keep up the good work (i.e. your great blog).
Dear readers, looking forward to receiving your comments. (Wolf S.)
Recently I came across a highly interesting interview which ZDNet's CIO Sessions' Dan Farber held with Giddeon Sasson, the Executive Vice President and CIO of International Brokerage and Banking giant Charles Schwab.
Very unusual in the world of publicly tight lipped Financial Services Giddeon talks openly about mistakes his company made during the days of the dot-com bust. Interestingly during those days they had an office in Sydney (Martin Place) as well and have since left Australia.
Giddeon says a lot has changed to the better at Charles Schwab since then. He maintains today the company is focused on clients' needs and IT is more closely aligned with the business. As a CIO he oversees a change of the IT culture towards business enablement as well as continues process improvement and talent development. He says IT is now working towards the business agenda, i.e. help to serve the clients and not towards a completely separate IT agenda any more.
To serve the business well, Charles Schwab's IT organisation under CIO leadership pursues five strategic objectives:
Productivity (e.g. Charles Schwab managed to improve by 30% since introducing their new way)
Simplification (e.g. Charles Schwab simplified from 3 brokerage systems to one)
Business partner satisfaction
Availability
Employees engagement and development
In order to meet these objectives, IT and business people are organised in a new way, closer together, listening to clients and serving clients.
A related insightful article written by Sue Bushell also caught my fancy. Sue wrote about the relationship between IT and Business where she says the pressure is on for CIOs to finally translate proposed IT initiatives into business terms ... when projects go awry it's usually because there's too much focus on technology, and not enough on business outcomes and associated change.
My conclusion:
The time is ripe to no longer propose IT projects driven by technology, even if it is as attractive as SOA and Enterprise 2.0. New projects should start out with well formed business requirements (during the project refined with methods of agile development) which enable companies to reach demanding business objectives by deploying the most suited technology available ! (Wolf S.)
If you haven't yet heard of TED, this is an amazing get-together of more than 1,000 thinkers, movers and shakers who gather annually for four days of learning, laughter and inspiration in scenic Monterrey, California. Take a look at the list of thought provoking speakers and performers in 2006 here.
This year's TED, sponsored by BMW, will be from March 7-10. Find the program and list of speakers here. To participate you need to be invited.
Recently they made a few past events available over the web. The TEDBlog is a very worthwhile read and has the potential to help you get outside the thinking box you may be in. It does it for me and therefore it is in our Blogroll.
Watch and listen to Richard St.John of the St.John Group talk about ways to success in this video taped Feb 2005 in Monterrey. (Wolf S.)
It's this time of year when everybody is on holiday and we can read up on things we didn't have time for throughout the year.
My theme over the holidays was corporate blogging and in particular weblogs written by business executives.
I was triggered by a post last year which I wrote about the US Security and Exchange Commission getting interested in the corporate blogging phenomenon.
What is public corporate blogging all about?
Debbie Weil, the self-confessed Mona Lisa of Blogging and author of the "bible" on corporate blogging which you find on page 4 of our bookshelf, has the best answer to this question:
"Corporate blogging is a communication and marketing channel, but with a twist - it's two way...This channel connects to a noisy, ragged, global conversation - the blogosphere."
Size of the Blogosphere Worldwide 60-80 Million Blogs Australia 120,000-350,000 Blogs
Seth Godin, a prominent marketing specialist and active blogger himself, isn't happy with CEOs blogging, though. He maintains CEOs should concentrate on making money for their companies and not contribute to marketing fluff.
I was wondering if ASIC, the Australian equivalent to the SEC, was exploring the issue of CEOs talking publicly via weblogs about company matters. A search on the ASIC site for "blogs" and "blogging" yielded no results, though.
How about the blogging activities of Australian corporations and their executives? The last mention of such blogging activities which I could find is here. It looks like there is not much going on or the activities of Australian corporate bloggers are invisible on the internet. Consequently, in 2005 Sydney and San Francisco based consulting CEO Ross Dawson blogged about the sorry state of Australian corporate blogging. To me it looks like Australian bloggers are mostly not from the corporate world but are geeks and cash-strapped people who prefer to make money through ads on their blogs.
Interestingly, in Australia bloggers from the national media are the most visible. For example, at last count, the "Sydney Morning Herald" had 52 blogs across all sections of their website, thereof 3 business blogs written by the paper's journalists. "The Australian" publishes eleven (non business) blogs written by political journalists. No mention of business blogs at all on the websites of the leading Australian business papers "Financial Review", "BRW" and "Money Management", although a few of their journalists may be blogging.
So where does that leave Australian corporate bloggers ? Should they regularly get together in virtual and pub meetings with other (more geeky) bloggers or do they need more information, to be convinced of carrying on or to get started:
Some of the benefits of corporate blogging
The company can set the agenda for new themes on the web
More visibility through Search Engine Marketing
The publication of new content is much quicker and cheaper than through traditional media and PR
Effective (online) dialogue with customers and prospects
Effective dialogue with the interested public, i.e. establish⁄improve business contacts online
Effective (online) dialogue with employees and business partners
Quickly retaliate against negative trends or rumours concerning the company and its products⁄services
As you probably know, we started our BizTech Blog in September this year. It was not an easy start as we decided not to use one of the existing blogging frameworks but to add the blog as a page to our web site. This turned out to be a good decision as we had to establish everything from scratch and we learned a lot along the way:
A good blog keeps a web site fresh and interesting (to the reader and the writer)
Genuine content is king
One person has to drive the blog otherwise it is not going to happen
It is easier to comment something than to come up with something completely new
Blogging is about text not pretty pictures
Writing good copy gets easier and takes less time with each blog
Reader comments add valuable content to the blog (e.g. the current year-end flash backs and predictions for the New Year)
Sadly, negative comments increase over time. We chose to allow comments but eliminate the real bad ones, which are like spam
The technology space is so dynamic that our BizTech posts tend to address technology more than business matters
With blogs and wikis the internet is finally turning towards what its inventor Tim Berners-Lee always wanted it to be; a common information space in which we communicate by sharing information and not just publishing fancy brochures in a different format
Someone else always has a more insightful and better blog. We can all learn from each other, all the time
Finally, take a look at this !
We wish you a very happy 2007 !
We'll keep on blogging all through 2007, so come back often, grab the RSS feed or email notification above
Send us your comments here or underneath each blog post...
I know I should but I can't really concentrate on Christmas now, as I have the urge to write this blog post to stop my mind wandering off to a highly interesting client project coming our way in early January 2007: We have been commissioned to help build an online community around a unique business venture.
Although we can't talk about the client or the industry they are in, we can and would like to share the process of building the community with you.
In 1993 Howard Rheingold published a book about Virtual Communities which pioneered the idea of fostering communities of people over the evolving web. His book, still freely available here, uses The Well, an online community existing since 1985, to make the benefits of the internet convincingly transparent.
Twenty years later we finally have the tools (blogs, wikis, portals, forums) and speed (ubiquitous broadband) available to make Rheingold's ideas and dreams a reality for consumers and businesses alike. Consumers very early jumped on the evolving bandwagon and there are loads of e.g. wikis available on the web today. Take a look at the WikiMatrix comparison tool.
As we explained in our blog post on Enterprise 2.0 the tools of the New Web are slowly spilling over to the enterprise, mostly because people in the business get to know them in their private lives and are keen to apply them to their work environments. Mostly security concerns have since stopped blogs, wikis, etc. to move more quickly into widespread use in the business space.
When our client considered the establishment of a virtual community a promising way of winning over new customers, stay in touch with existing ones and get suitable vendors and partners on board to participate in the community, it was time to start the development of the business web community.
We suggested to our client and will use the following steps, within our consulting approach, to develop a business web community:
Step 1 - Discuss with client management a fundamental understanding about the future online community. This includes definitions, concepts and available models.
Step 2 - Develop a business requirements plan for the online community, covering aspects of functionality and non-functionality.
Step 3 - Study the available technology for community building in detail. We already have a short list of portal software and wikis which lend themselves to the task. An extremely critical issue will be the availability of interfaces to existing legacy solutions, as the future community is not only about communication between members of the community, but also about business transactions between them and others.
Step 4 - Study and test the scalability of the preferred solution(s) which potentially should support several thousand members.
Step 5 - Pilot implementation, gradually grow the community and learn from the experience.
These steps will be performed partly in parallel and partly consecutively as the project evolves.
Drop us a line here, if you'd like to receive a free white paper which explains the project in more detail.
Now I can go back to celebrating Christmas with my family. Merry Christmas to you! (Wolf S.)
This week Potsdam, an East German city near Berlin, hosted the first German IT summit an event closely monitored by the German media. Chancellor Angela Merkel, the German equivalent to Australia's Prime Minister John Howard, oversaw the summit. As a physicist and tech buff she is well known for her weekly video podcasts to the German public. In comparison, John Howard is a talk-back radio fan and new ALP leader Kevin Rudd loves to join the Channel 7 team for breakfast.
Consequently, the search for the German IT summit in the Australian media and even on Google.com.au didn't yield a single mention.
Potsdam is a lovely University town where, after the fall of the wall, SAP co-founder Hasso Plattner set up an elite IT institute linked to the university. This institute meanwhile is well known to international ICT academics (inc those from Australian universities) who frequently attend high-profile events there.
The IT summit which was held this week assembled academics, industry captains and top politicians to discuss the advancement of Information Technology in society, politics and industry. IT is an important industry in Germany, roughly comparable to the size of the internationally acclaimed German automotive industry. Whereas brand names like Porsche, BMW and Mercedes Benz roll quickly over everyone's lips, one has to think longer and harder when it comes to naming German IT brand names: SAP, Software AG, IDS Scheer,... These are all software companies, there's hardly a hardware manufacturer left in the country.
The real stars, though, in German IT are developers of embedded software, i.e. software moving cars, engines, electronic equipment of all sorts. Mostly SMEs are providing these products of German ingenuity. Sadly, SMEs were not present at the summit, which Prof Scheer, the founder of internationally successful IDS Scheer AG mentioned with deep regret at the conference. He demanded small agile IT companies operating like speedboats among a fleet of large vessels.
The announcement of future substantial government subsidies for the IT industry wasn't received without criticism. For one there is the realistic fear that big players will gobble up these subsidies and leave only breadcrumbs for the small innovative players. These may subsequently be swallowed by international companies with a hunger for new ideas and solutions which are then marketed worldwide.
What lessons can we learn from the German IT summit here in Australia? Do we need a similar national IT summit and secondly, what products and ideas can we pick up from the Germans, particularly in the fast developing software space of the New Web.
Luckily, here at Schumacher Partners, German is a language that a few of us speak well and keep in touch with developments on the continent for interested clients and partners. Contact us here.
During the last days of the year we traditionally look back on what has happened during the year and dare to forecast what we expect for the coming year.
The second generation of the web, aka Web 2.0 (The web as a platform) is what we would like to talk about. As we recently said, business is now embracing Web 2.0. This development has been coined Enterprise 2.0 along with Office 2.0, which we also blogged about. We believe that the "2.0" generation of the web will not yield another scary "Dot.com" bust, but will rather lead into a better understanding of the collaborative nature of the web for personal and business use.
Recently, industry pundits discussed what comes after Web 2.0, even that we don't yet fully understand and apply what Web 2.0 encompasses. "Web 3.0" already covers a few headlines, but in our understanding there is not much substance there yet. Most people are still fully committed to absorbing Web 2.0, which will keep us busy throughout 2007.
We don't want to go into much detail about the Web 2.0 state of the art and future expectations here. Read the excellent Read⁄Write Web report instead.
Another hot issue is SOA and how it relates to Web 2.0. Dion Hinchcliffe wrote (as usual) an excellent article (from a Web 2.0 perspective) about this issue. The "official SOA world" didn't address this with real applications or enterprise ready toolsets yet. We are confident, though, that this will start to happen in a big way in early 2007.
In preparation of these developments, noted SOA researchers such as Phil Wainwright, ZapThink and David Linthicum discuss an imminent marriage of SOA and lightweight (adhoc user driven) web application composition tools with pushing the term "Enterprise Mashup Services" which obviously Phil Wainwright first coined. Startup JackBe released the first products and is committed to play a dominant role in this evolving space.
What we talk about here is happening in a big way in the U.S. and Europe. Australia is catching up, though. Hopefully we are going to see functioning Australian Web 2.0 and Enterprise 2.0 web sites popping up in the near future. We'll do our best to help drive these developments. Luckily, one of our main development tools InterSystems "Caché" is now fully Ajax enabled.
These days, presentations to any audience without PowerPoint slides are almost not thinkable. The slides are guides through condensed knowledge and can make dull presenters appear lively.
Funny enough, some colleagues are so happy about mastering Microsoft's PowerPoint program that they plaster each slide with Copyright notices, even that contents have been pinched from someone else.
In the middle of these random thoughts arrived the following piece about "Powerpointing" by our dear colleague Bob Lewis, president of scenic Eden Prairie, Minnesota based IT Catalysts, Inc.:
"PowerPoint is no different from speaking - if someone's point is foolish, either will make the fact more public. So the first rule of good PowerPointing is the same as the first rule of speech: First, think.
Many bytes have been expended providing other PowerPoint guidelines. Some have provided marvelous self-referential warnings -- dull and poorly constructed presentations explaining how to avoid creating dull and poorly constructed presentations.
Most of the "rules" are, by the way, contextual. For example:
PowerPoint Rule: Never use anything smaller than a 16 point font. It's terrific advice, when you're building a presentation that will (a) be projected in a large room, (b) to an audience that has not received printed copies of the presentation, and (c) won't have access to a version that can be scrutinized later on.
Let's start over. PowerPoint and its competitors are more than packages for developing presentations that will be projected in a large room. They're general-purpose communications tools. Presentation software and word processing software differ in one important respect: Presentation software enforces a discipline of telling a complete story on each page.
That, in fact, is the only hard-and-fast rule of using presentation software correctly: Make each page tell a story.
A few other thoughts and notions:
Respect the tool. Presentation packages provide sophisticated facilities for helping you achieve consistent formatting. Take advantage of them. Use the Title placeholder to contain slide titles, the built-in, automated slide numbering feature instead of manually placing slide numbers at the bottom of each slide, and tab stops or separate text boxes instead of the space bar for fine positioning. Among the advantages: When you change templates, your slides will require less clean-up.
Don't use clip art to liven up slides. Inserting clip art of a detective with a magnifying glass onto a slide whose title is "A closer look," is something less than highly original. It was hokey the first time and hasn't improved since.
Do use illustrations to tell your story, instead of simple bulleted lists. A list of bullets is a fine way to present a handful of parallel ideas. A graphic gives you the opportunity to show their interrelationships as well. If, for example, your bullets present the sequence of seven steps you'll follow to complete an assignment, place seven boxes on the screen, positioned diagonally from upper left to lower right. Connect them with arrows -- right-angled ones that descend from the bottom mid-point of each box to the left-side mid-point of the next one. Label each box with one of the steps.
Have too much to say about each step for this format to work? Create a row of seven block arrows across the top of the slide and label those as the steps. Below each position a rectangle and put bullets in each to explain the specifics for each.
Use small fonts for fine points. Complex slides will sometimes require 10-point type. That's okay, so long as you provide print-outs to your audience. They can read the big-fonted labels on the screen to keep track, and the fine-pointed details on the printed page.
Don't just read your slides, except when you do. When a slide contains more than three bullets, say, "I want to focus your attention on a few points on this slide," and then do so. If it contains a complex graphic, all of which matters, say, "This slide is complicated. Let me walk you through it."
Sometimes, stop referring to your slides altogether and just talk to your audience. Your presentation is there to assist you, not to imprison you.
Use agenda slides. The first occurrence lets your audience know what to expect. Repeat it at transitions, bolding the upcoming topic. Doing so helps your audience keep track.
Never, ever apologize for your slides. If a slide contains a typographical error, your audience might find it mildly distracting. By apologizing you interrupt yourself, which is much more distracting.
Here's what matters most: Excellent PowerPoint presentations are, before anything else, storytelling. Good presentations have a narrative flow. Each slide follows naturally from the one that precedes it and leads naturally to the next one."
I hope you liked Bob's piece. If you intend to dive deep into Powerpointing, take a look at the great book "Beyond Bulletpoints" by Cliff Atkinson on our bookshelf, second page."
Ed Yourdon posted an interesting blog about Powerpointing and Mindmapping here
Great ZapThink SOA practitioners' conference in Sydney
Sun 10-12-2006
The internationally highly influential SOA research company ZapThink has made their way down-under. The two leading ZapThink analysts Jason Bloomberg and Ron Schmelzer were in Sydney last week to present their view of "Service Orientation" to about 40 Aussie "SOA aficionados" at the Darling Harbour Sheraton. According to both analysts, this was their seventh international SOA practitioner's conference.
The ZapThink presentation style is unparalleled and a joy to watch. Jason and Ron appear on stage in an Abbott & Costello style, amusing but very informative and insightful at the same time. Their's was the best presentation of all and worthwhile the day long event. The other presenters were representatives from Australian sponsors and a few clients of theirs: GlobalSoft (Australian partners to ZapThink), Software AG, Oracle, Opes Prime (First Project), HP Mercury (Systinet), Japara Solutions (Amber Point), Commonwealth Bank (Commsee Project).
All presenters made sure that SOA is an issue relevant to business people but there were mostly IT people in the room and most presentations were clearly targeted at an IT audience. A case in point was Jason Bloomberg's answer to a question from the audience regarding where BPM (Business Process Management) stands in relation to SOA: "I recently presented at a SOA ⁄ BPM conference, where half the audience went to the BPM lectures, the other half attended the SOA lectures; and people didn't intermingle. Interestingly the presentations were about the same business issues." SOA indeed is an IT theme concerning Business, but business people are not fully aware how SOA can help them. Business people don't really care what acronyms help them solve their problems. They gladly accept any help.
ZapThink emphasised that SOA is ITs answer to the need of businesses to be flexible. Companies urgently require business agility, i.e. respond quickly to change and use change for competitive advantage. SOA allows IT to deliver flexible business processes. Some vendors concentrate too much on middleware, though, which doesn't really help business processes, even makes them more complicated.
The comparison between traditional computing and SOA inspired computing went like this:
Traditional computing
SOA inspired computing
Designed to last
Designed to change
Tightly coupled
Loosely coupled
Code oriented
Metadata oriented
Homogenous technology
Support heterogenous technology
ZapThink advises companies to create standards for themselves as there are many different approaches to implementation. There is and will be no SOA wizard; which is bad news for vendors who carry "SOA products" in their portfolio. SOA is more a state of mind (sharing = reuse), a way of thinking in "Lego block" architecture when building new systems. Building systems as solutions for business problems should be done iteratively, i.e. build value one application at a time. The quality of an enterprise architecture shows when it supports this principle. The architecture helps to consider all ramifications regarding the organisation; technical and non-technical issues alike.
SOA - Governance was an important theme at the conference, i.e. the art of maintaining valid services at design time and run time. This theme was covered by the governance solution vendors Systinet (HP⁄Mercury) and Amber Point reseller Japara Solutions.
After lunch ZapThink delved deep into architectural issues and named their presentation accordingly "Architectural Deep Dive". They reminded the audience of thinking of software functionality as services, thinking of services as mechanisms of sending and receiving messages and thinking of integration as a byproduct of service composition.
The unavoidable service granularity question came up, i.e. how granular (small vs big) a service should be. Clever, as they are, Ron and Jason compared that to the search for the best Lego blocks.
ZapThink see Enterprise Architects undertake the agility requests of the business. They define how the organisation defines service contracts. The service contracts themselves are defined in meta-data for functional and non-functional requirements.
In conclusion this was a great conference and well worth the time spent. The sponsor presentations could have been a little shorter, though, and the Commonwealth Bank presentation of their Commsee solution was maybe a little bit too technical and Dot.Net specific.
Now that the holiday season has begun, we have a little more time to review our toolsets. As we reported in earlier blogs in September and October this year, we were testing the capabilities of Online Office software as a replacement for MS Office. We started out with testing the Google solutions for Excel and Word replacements: Docs & Spreadsheets is a compelling solution for both, yet don't replace Excel and Word completely. Since it is a completely online solution without any local desktop involvement, the response times can be sluggish at times; particularly overnight, when Australia is asleep and America and Europe are awake and sitting in front of their computers. The Google solution is fantastic, though, for small tasks and its capabilities of easily sharing the documents and spreadsheets with remote friends and colleagues. It doesn't yet offer a solution for editing presentations.
Therefore we were also testing Zohoshow as a Powerpoint replacement. We slowed this small project down, though, when we re-discovered ThinkFree. This is the closest one can get to MS Office or Open Office on the web. Additionally it offers interesting features which MS Office 2003 doesn't have. For example, easily sharing documents, spreadsheets and presentations online. The ThinkFree solution comes with 1024 MB free space and let's users easily up- and download files from the desktop⁄server to the web and vice versa. It runs on both the Windows and Mac platforms which is good news for some Mac users who only use their old Windows machine to be able to run Powerpoint. The Mac Powerpoint version is not truly compatible with the Windows version.
After importing five huge Powerpoint presentations from our desktop⁄server to ThinkFree we found not one hitch. All original features were there, inc. all Powerpoint animations; of the sort "move text slowly⁄fast in from below, enlarge pictures on click", etc. The macros worked as well. With large presentations, though, it is advisable to download (one click) a Java applet which utilises the computing power of the desktop⁄client and makes editing a snap. For smaller jobs, the online only version is fully sufficient.
Concluding we have to say that the Web 2.0 ⁄ Enterprise 2.0 "movement" is really producing worthwhile software products, such as aforementioned ThinkFree for office tasks or Projity, a potential online MS Project replacement which we start looking at next.
The only drawback of spending time with some Web 2.0 ⁄ Enterprise 2.0 online products is that you sometimes lose time with a non-productive tool. If you would like to know which ones you shouldn't touch (or which ones you can rely on) or if you would like to share your own experiences, please Contact us
Business Analysts - the bridge between system requirements and implementation
Thu 30-11-2006
It is always good to hear business executives speak about their IT project successes. First, it shows that they care about IT and second that they know about the value of IT for the business.
Last night I was lucky enough to hear Geoff Kelly, a former bank senior executive, speak at an IIBA event in Sydney. Geoff talked about "The Value Business Analysis brings to the organisation - case studies and experiences". Geoff convincingly demonstrated his vast experience with system projects in financial services environments.
In his case studies on building a global market trading system for a major bank, Geoff started out with an As-Is schematic of the system architecture, a mind-boggling picture of function boxes, core applications, related databases, risk measurement tools and reporting systems, in total around 50 interconnected sub-systems. There was only a handful of people at the time at the bank who fully understood all aspects of the various components of the trading system. The project was about transforming this into a more streamlined and better performing To-Be system - a massive task.
The role of the Business Analyst, in this demanding environment, was at the centre of Geoff's speech. A profession which was not really established at the beginning of the project which took two years to fully accomplish.
Geoff found out that good Business Analysts (BA's) can be best recruited from existing Subject Matter Experts (SME's). With their intimate knowledge they could best win the trust and respect of the dealers at the centre of using the global trading system. Supplementing the SME's with accomplished BA's and technical people helped develop the credibility of the overall team. This was even taken a step further by the bank appointing project champions with their main task of establishing trusted relationships. Geoff used the Sydney harbour bridge icon as a symbol for demonstrating the role of BA's for developing system requirements and pass them on to the implementation stage of the new trading system.
A lot of lessons could be learned on this bridging journey for BA's which Geoff shared with the audience of current and future BA's:
Establish business intimacy
Demonstrate knowledge and engender trust
Demonstrate value add by use of BA's, their skills and tool sets
Be pragmatic and practical in approaches to requirements and solutions
Use good interviewing techniques which keep the interviewees interested in the project
Maintain good relationships
Escalate what you can't control
Geoff also shared what should be avoided in similar project situations:
Dictate solutions before analysis is done (sometime happens under vendor pressure)
Similarly, no quick fix ("window shopping syndrome")
Overemphasis on governance, process and documentation ("tick the boxes")
Not concentrating on making the outcome happen
Failure to adapt to new circumstances
In summary, this presentation showed clearly the important role BA's could and should play in the transition to new business systems. IIBA is committed to showing Australian organisations the way forward in developing Business Analysts (through training, experience and certification) to a respected and "standardised" profession.
Why is business writing often bloated, boring, and pointless?
Wed 29-11-2006
Our colleague Bob Lewis, president of scenic Eden Prairie, Minnesota based IT Catalysts, Inc., did it again. He wrote a great article about business writing skills that we love to pass on.
BTW, if you live around Sydney⁄Wollongong, our friend and colleague Graeme Philipson, an experienced analyst and high-tech journalist, is offering business writing classes among many other professional services. Find GP here.
Here's Bob's grab-bag of mostly easy techniques that can help business writers (including ourselves) improve.
Avoid the passive voice. Of all the egregious sins of business writing, the passive voice is the most pervasive, and the most damaging. Sentences like, "A project will be chartered," are common, and awful.
Beyond their utility in inserting dullness, they compound the damage by preventing accountability: Everyone knows someone must charter the aforementioned project; use of the passive voice allows all readers to leave the doing of it to others.
This characteristic of the passive voice is, undoubtedly, what makes it so popular.
Support your statements. Follow assertions with at least three supporting facts or arguments, because: (1) doing so provides a compelling reason to agree; (2) even for those who disagree, three supporting statements demonstrates that those who agree aren't simply sheep; and (3) your ability to provide three separate reasons to accept the proposition demonstrates your clear-headedness.
See?
Avoid etc. When following an assertion with three supporting facts or arguments, don't make "etc." one of them, because "etc." doesn't support anything. It's equivalent to saying, "trust me" -- the favored phrase of those who sell used cars. Every time a writer uses "etc." to end a list, readers have every right to infer that he or she is intellectually lazy. If you find yourself tempted and can't simply stop the comma-separated list with its last concrete entry, replace "etc." with something more informative, like "... and other bits too numerous to mention."
Differentiate "less" and "fewer." Few among us really care if you say, "Less people use good grammar than bad," instead of "Fewer people use good grammar than bad." Nonetheless, getting this right makes you appear to be a clear thinker to just about every listener or reader, and with very little effort. The choice is easy: If the items are countable, use "fewer," otherwise use "less."
It's a minor point, (another is to never modify "unique" -- if you do, you should have said "rare" in the first place) whose primary value is what it helps you say about yourself.
Use your vocabulary. "Thing" appears far too often in the average business report, and only because the writer was too lazy to think of a more specific noun. The same can be said of "do" as a verb, and "good" and "bad" as adjectives. Careful word choice gives you the opportunity to make careful distinctions. Take a new application for example: Designing it is different from either describing it or engineering it.
So take the time to find the right word. It's an easy thing to do.
Avoid superfluous modifiers. Whenever possible, choose nouns and verbs that require no adjective or adverb to clarify them. When you do use a modifier, ask yourself if it adds information, or just length.
Keep paragraphs short. It's easy to get lost in a long paragraph. The blank space that separates paragraphs provides a visual marker that helps readers keep their place. The practical result: Readers only read the first few sentences of a long paragraph.
Order your thoughts. Streams of consciousness are self-indulgent. They give readers the impression that you're either unable to think clearly, too lazy to organize your thoughts so as to make them clear to others, or simply indifferent as to whether anyone else should care what you think. They say, "Here are a bunch of random notions I've had. It's up to you to make sense of them, although the only reason you should assume there's sense to be made of them is your personal affection for me."
No matter what you're trying to say, presenting your ideas in a logical order makes them credible. Failing to do so makes you, not incredible, but non-credible.
Organize your presentation. And use formatting to help readers follow the organization. Bullets keep separate, parallel thoughts separate and parallel. Headings and sub-headings help readers find what they're looking for. Boldface and italics isolate the most important ideas.
Every communication you produce serves two purposes. The first is its overt reason for existence -- to inform, persuade, or both. The second is to present yourself. This is more than exhibiting your talents in the best light. Each e-mail, memo or report is an opportunity to project whatever image you wish others to have of you. Creative, analytical, informed, imaginative, bold, careful ... the way you write conveys an image.
The Sydney Chapter of the BPM Group had to change the venue for a meeting on Thursday this week to accommodate for the enormous popularity of the topic of Business Process Architecture. The many Sydney based BPM practitioners, consultants and academics attending the meeting were not disappointed and there was a lively discussion during and after an insightful presentation by David Thompson and Joanne Mitchell from Oakton.
We start this blog with a definition of Business Process Architecture (BPA): "BPA is a subset of Enterprise Architecture (EA) which is the practice of applying a comprehensive and rigorous framework for describing a current and⁄or future structure and behavior for an organization's processes, information systems, personnel and organizational sub-units, so that they align with the organization's core goals and strategic direction."
It was argued that Business Process Management is a driving force within an Enterprise Architecture in that business executives acknowledge process advantage as a fairly sustainable competitive advantage. Business process advantage is even patentable as recent examples from Amazon (one-click-ordering) and the Bank of America ("electronic piggybank": automatic transfer of card purchase roundups into savings accounts) show.
The proprietary EA framework presented was not directly derived from or related to the Zachmann and TOGAF frameworks which are popular with enterprise architects. It is also not related to established BPM frameworks such as BPMGs 8 Omega or Martyn Ould's Riva. Nevertheless it seems to be a framework which makes practical sense and works as an architectural blueprint for Oakton and their clients. Interestingly, the Business Process Architecture presented did not drill down into reusable business services but to tasks which are situated at a lower hierarchical level than services. Consequently we did not discuss the BPM⁄SOA connection with BPM as an orchestration of business services which would have let into more technology specific themes.
At length, though, participants discussed the challenge of involving consultants and people at the coalfront to map out business processes in the "as-is" and "to-be" stages. This is what BPM professionals feel comfortable with discussing. Olivera, an academic from the University of Sydney, mentioned the interesting trend of linking process aware Business Intelligence (BI) features, something which several BPMS vendors currently add to their tool offerings. Read this related Forrester article.
An important insight from this event was that Business Analysts should be aware of the "whole picture", i.e. they should not just limit themselves to defining certain business requirements, but more broadly look at end-to-end processes across department boundaries. It is the task of senior management to support this to happen.
There is an additional raft of themes that spring to mind when business process architecture is being discussed. This is due to the fact that BPM, SOA, Rules, BI as well as other practice areas (e.g. ad-hoc processes through Enterprise 2.0) are increasingly coming together. Follow-up meetings should touch upon that. BPMG certainly offers a friendly environment for interested practitioners, consultants and academics to present and discuss this in the future. Lastly, it was mentioned by some participants that the "how-to" should also find its place in the chapter, i.e. vendors should be encouraged to present their solutions.
Read BPMGs Mark McGregor's article on BPM and enterprise architecture here.
Enterprise 2.0 - consumer centric Web 2.0 spills over to business
Tue 14-11-2006
In a visionary article in the MIT Sloan Management Review "Enterprise 2.0: The dawn of emergent collaboration", Andrew P. McAfee coined "Enterprise 2.0" as a collective term for web-based business communication tools. Such tools are in heavy use in the consumer world (aka Web 2.0) and are known as Blogs, Wikis, RSS feeds and other communication tools. People using these tools privately obviously have no qualms using them for business purposes as well, yet security concerns have been preventing their widespread usage in the corporate world. A recent breakthrough, though, changed this:
Intel took over responsibility for releasing the SuiteTwo suite of Enterprise 2.0 tools. It allows for web-based communication, employing a raft of interconnected products from five providers of blogs, wikis, RSS feed publishing, feed reading and integration services.
The main benefits of deploying this Enterprise 2.0 suite include improved communication and participation which in turn are the basis for revenue growth and cost reduction. The times of overflowing email inboxes may soon be over, giving way to more participative methods of communication and direct involvement in company matters.
SEC encourages company CEOs to use blogs for disseminating company information
Mon 13-11-2006
The Chairman of US Securities and Exchange commission, Cox, recently invited avid corporate blogger Jonathan Schwartz, chief executive of SUN Microsystems, to share his vast experience and talk to the commission about how company executives could use blogs or wikis to disseminate important financially relevant corporate information to the public. This is a breakthrough in the still rather young business blogging space.
Traditionally, official company information is distributed by company PR departments and spoke persons, very rarely directly by company CEOs. In the advertisement field it has become very obvious, however, how important utterances directly from CEOs mouths are. Why not extend that to business executive blogs covering financially relevant corporate information. We are wondering if and how ASIC and the Australian corporate world will pick up this new trend.
BTW, have a read of Jonathan's great blog, it looks at business & technology from a SUN and personal perspective: blogs.sun.com⁄jonathan⁄
Bob Lewis is president of scenic Eden Prairie, Minnesota based IT Catalysts, Inc. and a great guy and colleague. We like his regular musings about technology and business and are particularly fond of this recent one:
Jared Diamond's brilliant bookCollapse: How Societies Choose to Fail or Succeed analyzes five ancient societies that imploded horribly, attempting to find insights useful for the modern, increasingly interconnected world.
Diamond identified five factors that lead to collapse. Always, the unsustainable overuse of environmental resources was one, and the society's failure to appropriately respond to early symptoms was another. They were sometimes coupled with climate change, the loss of a critical trading partner, or the presence of hostile neighbors -- singly or in combination.
Businesses being societies too, I thought it would be worthwhile trying to apply Diamond's conclusions to the world of business (did you wonder how I was going to justify the tax write-off for this book?).
Unsustainable overuse of environmental resources
Easter Island was the home of a thriving society that relied heavily on its extensive forests. Diamond asks, "What did the Easter Islander who cut down the last palm tree say while he was doing it? Like modern loggers, did he shout 'Jobs, not trees!'? Or: 'Technology will solve our problems, never fear, we'll find a substitute for wood'? Or: 'We don't have proof that there aren't palm somewhere else on Easter, we need more research, your proposed ban on logging is premature and driven by fear-mongering'?"
Now that you're either offended or delighted (depending on your political proclivities), take a step back and apply the question, not to global warming or depletion of the world's oil supply, but to the company in which you work. In business, the unsustainable use of environmental resources can take several forms.
For forest products and mining companies it's obvious, and part of the strategic plan (I hope!). It's just as real for companies that build growth on information technology that's inexpensive but can't scale. When too many customers overload it, the company gets a bad reputation and its customer base collapses.
It also fits the U. S. steel industry, which collapsed in the 1970s from failing to maintain and modernize its factories.
Climate change
One reason the Norse colony on Greenland failed is that the Norse settled Greenland during an abnormally warm and hospitable period. They based their society on the expectation that it would continue. When it turned cold, they were over-extended for the new conditions.
How many businesses only work in a hospitable economic climate, and collapse when it cools?
Loss of a critical trading partner
Pitcairn and Henderson islands hosted thriving societies for centuries. They depended on trade with each other and another island, Mangareva. For complex reasons the trade stopped and both societies died, unable to sustain themselves without it.
I'm reminded of the advertising agency responsible for the original "Speedy Alka Seltzer" campaign. The agency lost the Alka Seltzer account and failed. I've known systems integrators that suffered similar fates.
Companies that have outsourced IT, which has a high switching cost and lengthy transition, are also vulnerable. Imagine how many would die if EDS (for example) were to close its doors.
Presence of hostile neighbors
Hostile neighbors didn't cause any of the collapses Diamond documented, but contributed to some. In Norse Greenland, for example, the Norse worked hard to make their relationship with the Inuit hostile, and persistently failed to learn anything from them about how to build a sustainable society in Greenland's difficult environment. When the climate cooled, the Inuit were attackers instead of trading partners, contributing to the elimination of the always-small Norse population.
More broadly, history is filled with examples of societies that failed to anticipate the possibility of invasion: The Aztecs, for example, had no idea Spain even existed. A business parallel: How many hardware store chains failed because they never envisioned the type of competition that Home Depot and Lowes would create, and could not figure out how to respond to it?
Not to mention what's currently happening to Red Hat.
Societal response
Every Collapse is a story of unsustainable growth -- growth built on habits that led to the over-harvesting of one or more resources, reducing productivity while the society's success and population growth increased demand. All are also stories of clinging to invalid assumptions -- a failure to adapt to the necessities of the situation, often because of leaders who were distracted by the need to maintain their levels of privilege and demonstrations of prestige.
Some other societies -- Iceland, Japan and New Guinea, for example -- did develop sustainable societal solutions. The small societies worked "bottom-up." The larger ones were driven by leaders who took a long-term perspective.
The business parallels are too obvious to require explanation...
We all remember the Dot.com era and the subsequent bust around the turn of the century. At the time expectations were over hyped and people with comparably little business and technology experience could make a lot of money, even turn millionaires in weeks and days, just by announcing the float of new internet ventures. Punters inc many mums and dads lost a lot of money, though, by believing in the boom and investing in companies with little substance.
Meanwhile, the internet has recovered. The job market is up and big takeovers in the space make headlines. The last remarkable one was the sale of the video website YouTube to Google, that by itself is a remarkable internet success story, having survived the first internet bust unharmed, same as Yahoo, Amazon and a few other well known online brand names. Now the word in the street is that we have to expect a new internet crisis, assuming that takeover prices paid for companies like YouTube (US$ 1.65 bn) are inflated.
YouTube was not the only recent takeover target. Tristan Louis, a BizTech blogger, recently published a list of major corporate takeovers in the internet space. He concluded, and we agree, that a new internet "bubble 2.0" is not looming.
Here are the major reasons why we believe that the current growth of the internet is sustainable:
The drivers of the internet are different in 2006 than they were in 2000. The web has become an important part of the business world, it no longer is just the centre of over hyped expectations and a playground for geeks. These days for a small business (SME) its web site has become more important than print brochures as a source of first information for clients. Nobody is interested in a company's fax number on its business cards anymore, instead it is its web site address and email addresses.
Even more important is the rise of web applications in recent years. For many companies the web is no longer just used as a brochure, but has instead turned into a key component of their business architecture.
A few examples: 43% of Americans bank online, 63% buy or make a travel reservation (source Pew research). Recently we could book and even produce the boarding ticket for a Virgin Blue flight from Sydney to Melbourne.
Companies don't limit their internet usage to services they provide to customers but increasingly turn all their internal processes and those with suppliers, distributors, etc. into crucial online transaction engines and repositories. With the growth of BPM and SOA we expect to see even more business processes moving to the web.
Real business is driving the internet now. Unfounded speculations no longer drive the valuation of internet companies. Business decisions by professional investors and experienced VCs drive corporate takeovers and financing of promising technology that help to make the web even more relevant to business (e.g. web 2.0). Let us show you how new and amended web applications could help your company.
Options of documenting business requirements for a new IT system
Wed 25-10-2006
In a discussion with a large IT outsourcing company recently we realised how little known state-of-the-art methods of capturing business requirements are. The company basically uses Excel and Word to document client requirements. As a case in point, recently we received a RFP for a major system, completely written in Word, which was transmitted as a PDF file of 185 pages. It's a pain to wade through these requirements, let alone provide an answer to the prospect in a reasonable time-frame.
We thought we'd use the opportunity to discuss better methods of documenting business requirements with this blog. Please contact us if you'd like more information from us.
There are basically three state-of-the-art methods to document business requirements for new systems:
1) Use an SIPOC diagram as used by Quality professionals.
SIPOC stands for "Suppliers, Input, Process, Output, Customers". Typically a business analyst first starts with the process, describing it in e.g. five high level steps. Find a practical example here. Via a collaborative process the diagram is filled with data, from top to bottom, covering all aspects of the business requirements for a new IT system.
2) Use a Requirements Management desktop software program to capture business requirements.
There is a large number of software packages available that assist in documenting business requirements in an organised way. The results can typically be exported to Word or Excel. Click here for a good overview over available packages.
3) Use a Requirements Management web-based solution to capture business requirements.
The benefits of this is that the online systems allows a remotely operating project team to have read and edit access to system requirements, which is of great value e.g. in outsourcing situations. At Schumacher Partners we are currently testing Lighthouse, which is a complete project lifecycle system with an embedded requirements module. So far the results are promising. We can load e.g. RFQs from Word documents into Lighthouse, edit and maintain as well as monitor the requirements throughout the life of a project. Please stay tuned as we will report on the results of our test at a later stage of the resp. project.
Dialogue Mapping - Facilitation and technology for more effective meetings
Mon 09-10-2006
Who doesn't complain about too many ineffective business meetings? Discussions dragging on for hours seem to go nowhere and minutes distributed afterwards do not or only partly reflect what was said. And worst of all, no decisions were made and postponed to the next (ineffective) meeting.
We've found a great solution to this problem. It is a methodology and group-technology that has been around for a number of years in the scientific world (US⁄UK based unis, Nasa, scientific companies) and which is now at a stage where it has been successfully applied in the commercial world. We use it for the collaborative definition of business requirements.
At the heart of the methodology is the IBIS argumentation system which, in a unique way, promotes innovative discussions among the participants of facilitated meetings.
A software program is part of the methodology: Compendium (former QuestMap) allows the facilitator to document the progress of a meeting in real-time and visible to all participants.
The benefits of the Dialogue Mapping methodology include quicker, more effective meetings and real-time minutes. Please get in touch with us if you are interested to find out about our facilitation services for one of your next project meetings.
New Competitive Intelligence (CI) online repository
Fri 06-10-2006
As members of the CI practitioners network in Sydney we regularly experience very interesting CI sessions. For last night's get-together our host Babette Bensoussan invited IBISWorld Australia to present their new competitive information website. This repository of information contains analyst reports for more than 500 industries within 18 industry segments in Australia. IBISWorld draws the data from internal and external sources and their own and contracted industry analysts put together the industry reports available online.
Subscribers can search through the online database to find information and insight on companies. IBISWorld advises CI professionals to download search results to their own computers e.g to compare competing companies side by side. To benchmark competing product areas of companies, though, e.g. for the telecommunication industry between Telstra and Optus regarding the mobile sector, subscribers or their advisers need to set up a benchmarking framework by themselves before being able to compare downloaded data from the website. A lively Q and A session between all participants and the IBISWorld presenters concluded this highly interesting event. A few questions evolved around the cross-industry search capabilities of the website. IBISWorld had intelligent hands-on answers to all questions people had.
In summary we think this new website is highly relevant to the many existing and new commercial subscribers to the IBISWorld competitive information repository.
For years I have been using MS Office for writing documents, spreadsheets, presentation slides and keeping my calendar on Outlook. Lately, though, my use of MS Office 2003 is reduced to Powerpoint slides.
For spreadsheets I find myself using spreadsheets.google.com more often than Excel, for documents I begin to prefer www.writely.com over Word and for my calendar I switched to calendar.google.com. Only Powerpoint stays solid for now in my tool box. But I already detected zohoshow.com. Chances are, I will give this online presentation tool a good work out and, when convinced, switch.
Why do I start to prefer the Web tools over desktop bound Office? BTW, Open Office for me is in the same category as MS office, only more affordable with slightly less functionality.
With the Web tools I can share my spreadsheets, my docs, my calendar, and maybe in the future my presos with my colleagues and our clients directly over the web, which is quicker and safer than sharing my files (back and forth) via email. I don't even touch on the tricky subject of document version control. Try out the web tools for yourself, you'll be amazed. (Wolf S.)
Thur 11-10-2006 - Latest developments in the online office. Will Microsoft retaliate against Google's move?
Google announced, it will bundle its online office offering (spreadsheet and writely) into one Google docs and spreadsheets package to be accessable through one user name (gmail account) and password. It will be interesting to follow if and how Microsoft will retaliate with an online office offering (MS Works online?). ...back to index
|
Close to adopt the new Managed Funds industry standard
Fri 22-09-2006
In conjunction with the current development of a custom Self Managed Superannuation Fund (SMSF) administration solution Schumacher Partners explore the opportunity to join forces with financial planning software developers IWL and COIN (and other software vendors) to access standardized data feeds of investment and superannuation platforms and import the data into the new SMSF administration software. Schumacher Partners welcome the strategic move by software vendors IWL and (Macquarie Bank owned) COIN to help advisers and accountants (regarding SMSF) to obtain low cost access to standardised client investment⁄ superannuation data. It is very likely that Schumacher Partners will adopt the emerging industry standard in its new Caché and Ensemble based software for SMSF administrator Self Fund.
Organisations grow with the quality of their data - Business Intelligence (BI)
Thur 21-09-2006
Today I attended an excellent conference which concentrated on Business Intelligence (BI). It reviewed the status of BI, named leading vendors in the space and provided a good view into the future of BI for the participants from various companies, government agencies and consultants like myself. Drawing from recent market research undertaken recently, BI is now worldwide subject number one in the eyes of CIOs, having supplanted other areas of interest such as security issues and service oriented architecture (which is still growing, though). BI, which has grown last year at a rate close to 5%, is expected to be heavily influenced by other trends, such as improved BI software tools which open themselves up to end-users, a glut of data produced by new operational enterprise applications which drive the need for BI and a general need for more and better management reporting capabilities. On the other hand, growth limiting factors will be seen diminishing, as the BI skill levels are improving and dropping costs of BI solutions.
Judging from our own experience as consultants I find companies, regarding their BI efforts, frequently require assistance. Larger companies, often vendor-driven, embark on big data warehouse projects, only to later finding themselves in a situation, where hardly anybody is actively using the "graveyards" of data.
Others, typically small and medium sized enterprises, not having invested in BI infrastructures, rely on the magic of Excel and Powerpoint. How many presentations to company boards have been given with numbers assembled in Excel worksheets that haven't been derived from an underlying "one truth" database with high quality data. It is simply too easy, by accident or on purpose, to manipulate Excel worksheets and present false data (unknowingly) on nicely looking and static Powerpoint slides.
At Schumacher Partners we assist our clients with BI consulting. When devising and implementing BI solutions we typically incorporate the powerful Caché development and Ensemble platform tools from InterSystems International Corp., well integrated with the operational systems companies have built or will be building. Please read this InterSystems paper on BI enablement and this user report, both published recently (2006).
A medium sized client company asked us to help select a browser based BI reporting tool. LogiXML, during the software selection stage, outperformed all other contenders due to the breadth and width of the capabilities of their suite of BI software tools. Interestingly, their LGX turbo engine is powered by the high performance Caché database. The base tool, the feature-rich LGX managed reporting product, is available for free. The LGX ad hoc report builder is meant for non-technical users and there is an OLAP reporting module as well. LogiXML is a well rounded, web based suite of powerful BI tools which we recommend to clients who want to start small and continually upgrade their BI capabilities. ODBC and JDBC interfaces to a multitude of data repositiories, including Caché, are provided. Additionally, the new LogiXML information portal offers a wealth of BI background information, not only about the LogiXML toolset.
Schumacher Partners in ZapThink's worldwide SOA consultancy study
Mon 18-09-2006
In July 2006 Schumacher Partners participated in a worldwide survey of consulting organisations advising companies on Service Oriented Architecture (SOA). This area has risen dramatically in importance over the last year and subsequently a relatively big number (58) of companies participated in this research by U.S. based renowned SOA researchers ZapThink LLC. As it turned out, Schumacher Partners was the only Australia based consultancy participating, that is active in the area of SOA, apart from International consultancies with local offices that have SOA in their consulting portfolio.
The final report (29 pages) was published this week (author: Jason Bloomberg) and presents interesting insights, the highlights of which are:
Few enterprises are buying SOA by name. Instead, business buyers are paying for solutions to business problems, and more consulting firms than ever are leveraging Service Orientation best practices to provide those solutions. The main buyer of such initiatives are shifted toward the non-technical, business part of the enterprise.
The clear pattern with today's SOA projects is that they are increasingly business focused. Many consulting firms integrate SOA best practices into a broad differentiated offering that is not necessarily specific to SOA.
Many ostensible SOA efforts are little more than middleware shell games. Product vendors often distort the true message of SOA to best fit their product offerings. Similarly, the core mistake that some consulting firms are making is in confusing architecture with implementation.
ZapThink expects the percentage of IT projects overall that leverage Service Orientation best practices to continue to grow over time, and those best practices will soon become ubiquitous.
ZapThink expects the percentage of IT projects that are named SOA projects to reach a maximum in the 2007 timeframe, and then gradually decrease as Service Orientation best practices become an expected, routine part of IT projects more broadly.
We find that at Schumacher Partners we are on the right track with our client SOA projects, because of our unique combination of competitive analysis, consulting and implementation services focused on solving business problems involving technology, as well as the exchange of ideas and experiences with peers, such as ZapThink.