NITCoF Intro short

Custom to CommodityBusiness & IT in the 21st century

What is happening?

Businesses face:

• Accelerating pace

• Business & IT convergence

• Significant opportunity for IT-enabled organisations

IT blamed:

• Slow, unresponsive, don’t “get it”

• Bogged down in maintenance

• Increases costs, reduces value, holds back the business

Commodity IT – the promise

• Low cost, no hassle

• Flexible, scalable implementation

• Easy to swap-out

Examples

• Office 365

• Google Apps

• iOS application suite

What is Commodity IT?

Handy investor’s definition* :

• An item should satisfy 3 conditions to be a commodity:

1. it must be standardized and, for agriculturaland industrial commodities, in a "raw" state;

2. it must be usable upon delivery; and

3. its price must vary enough to justify creatinga market for it.

(Potential) examples of Commodity IT?

• Various XAAS (SAAS, PAAS, IAAS).

• Consumer devices (laptops, tablets, smartphones, etc.)

• Big Data

• Identity carriers, e.g. ID-cards

• Sensors and components for robotics and IoT

• Robotics

• IoT

• Virtual reality, en andere “immersive” technology

• 3D-printing, Printed electronics

• Virtual currency (zoals bitcoins)

3

* http://www.investinganswers.com/financial-dictionary/commodities-precious-metals/commoditization-2343

Why are we still stuck with custom IT?

Road blocks

• Vendor lock-in

• Systems complexity

• IT department objections

• Security & privacy concerns

• Internal

• Knowing where to start

Outside assistance may help

• Third party as intermediary

• Mileage – seen it, done it before

• Specialist expertise– Security & privacy

– Supplier management

– Organisational change

– IT system interfacing

• Market insight

One slide says it all

Base

Build-up

Organisation as is, organically grown

Old World

IT custom built to follow

The Challenge

• Change the organisation• Stick to commodity IT• Connect old and new world IT

Drawbacks

• Business stuck in legacy IT• Costly maintenance

New World

IT as is, a commodity

Our Solution

• Market insight• Independence• Dedicated specialists

Organisation to adapt

Benefits

• Agile business• Low cost

About us

• Mission: maximise the performance of organisations throughthe effective use of commodity IT

• Our difference: Focus on organisational change to facilitate commodity IT

• We are an experienced young firm– Experience in IT, Management Consulting and organisational change

– Cutting edge expertise in the change domains vital to Commodity IT: • security & privacy

• supplier management, negotiations and governance

• organisational change

• IT integration

• Permanent presence in the Netherlands and United Kingdom– Delivery where needed

Generic approach

Discovery; opportunity scan for Standard IT

Impact analysis: required work practices

Change strategy

Business Case

Go / No-Go

Implementation plan

Implementation execution

Copyright No Consulting Firm BV

We mix and match our services to meet

our clients needs

Benefits of Commodity IT with our help

Benefits of commodity IT

• Cost reduction

• Shift Capex to Opex

• More agile business

Risk Reduction

• Security & privacy

• Project failure

• Cost overrun

Roadblocks neutralised

• Supplier resistance

• Vendor lock-in

• IT department objections

• Internal politics

Next steps – decisions to take

What’s next?

• Can you afford to ignore commodity IT?

• Do you have the expertise with the bandwidth to take it on, alone?

Decisions

• Shape project: target, scope and outline

• Define No IT Consulting Firm contribution

• Go

Additional information

Discovery; Opportunity Scan for Standard IT;

Wardley Mappingcc

• We spot opportunities for commoditization

• Wardley Mappingcc as a tool

• Which components can move to the right?

CC Creative Commons Simon Wardley (CSC LEF)

Evolution

Step 3

Evolution

Va

lue

Ch

ain

Change strategy; Matrix of Change *

We work with you to plan the change

• How to implement work practices

• Holistically

• From existing to target practices

*Erik Brynljofson a.o. 1996

• We help bridge customer-supplier gaps– External suppliers need special attentation

• Majority of an organisation’s activity is in suppliers (78% *)

• Commoditization puts business critical activities in the hands of suppliers

• Commodity suppliers are remote and not directly controlled

– Internally, two worlds inside the organisation through commoditization may cause friction

• Standard, no exceptions, internal supplier (Wardley right side)

• Custom, innovations, demand (Wardley left side)

• Tool: Relationship Spectrum© for customer – supplier collaboration

* Proxima Consulting Group© Contrasticon

Supplier management: Relationship Spectrum

Pivotal values and culture

• Zeta Process© highlights values and culture that hinder as well as help transition

• offers advance notice of key areas to address to ensure strong and swift engagement

• implications for leadership

Current behaviourCurrent behaviour

Necessary future

Values and Beliefs

Necessary future

Values and BeliefsCurrent Values and

Beliefs

Current Values and

Beliefs

Desired future

behaviour

Desired future

behaviour

Implementation plan

We work with you to plan realistic implementation• Establish PMO• Work practices to detailed specification

– Defined standard products and services– Required non-standard changes (org, process, ..)

• Product & Supplier strategy• Organisational change, security strategy• Define baselines (finance, org assessments, IT performance, ..)• Roadmap, Planning• Finance

Implementation execution

We execute implementation, reliably

• Set baselines (finance, org assessments, IT performance, ..)

• Product & Supplier selection, contracting, collaboration

• Execute system & org changes– Activate standard products and services

– Implement non-standard changes (org, process, ..)

• Organisational change (interventions, monitor)

• Programme mgt (Roadmap, Planning, Finance)

• Security and Risk management