Smart Business - White Paper May-17 - V6 - Softools
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Transcript of Smart Business - White Paper May-17 - V6 - Softools
SmartBusiness©Softools2017www.SofTools.net
DiscussionswithBusiness&Technologyleadersoverthelast12monthshaverevealedaverydifferentsetofchallengestotheprecedingperiod.TheytalkofnewopportunitiesarisingfromemergingtechnologiesandtheincreasinglypivotalroleofITtobusinesssurvivalandgrowth,buttheyalsotalkaboutthecomplexityoftheircurrentinfrastructureandhowinanidealworldtheywouldprefertostartwithablankcanvas.Thisresearchpaperprovidesanoverviewof thekeychallengesbeing facedby those inchargeof information technologytogetherwithaten-pointplanforDigitalTransformationofthebusiness.
Sowhat’sontheCIO’sagenda?
Whilst there are a number of concerns to beaddressed, leadingbusinessestalkaboutfocusingonfour key inter-connected challenges; A: OptimisedBusinessProcesses,B:PerformanceTransformation,C:Digital Eco-system, andD: Application Enablement –removalofnon-coreExcel(spreadsheet)applications.
SmartBusiness
"Ifmoneywasnoobject,84%ofCIOswouldscraptheircurrentITenvironmentandstartagain"
Source:CIOInsight
“OnehalfofCIOssayupto50%oftheirapplicationportfolioneedstoberetired”.
OptimisedBusinessProcesses A
OneExecutiverecentlycommented“Ifyouaskmewhatourprocessisforriskmanagement,Iwouldhavetogiveyoufivedifferentanswers”.Thissummeduptheir frustrationwiththeproliferationoflocalisedbusinessprocesses.Asandwhenaprocessneededtobeputinplace,thelocalteamwouldsimplymakeitupbasedontheircurrentneeds.Thissituationiscompoundedbytwofactors. Firstly,becauseorganisation-wideprocessesareoftenill-definedornotadheredto,functionsoperatewitha‘silomentality’whereloyaltyisprimarilytotheirteamorfunctionwithlittleregardtotheworkingofotherteams–thisleadstodisjointedprocesseswherethehand-offfromoneteamtothenextoftenresultsinabreakdown
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SmartBusiness©Softools2017www.SofTools.net
Secondly, without an effective cascade of KeyPerformanceIndicators(KPIs)alignedtoacommongoal, individuals working within the process areoftenworkingatoddswitheachother. Forthebusiness,the implicationsaresignificant.In the absence of a common approach to keybusinessprocesses,it isalmost impossibletoputinplaceanITsolutionthatwill:
a) Provide thedecisionmakerswith the levelofvisibility, control and confidence they need,and
b) Ensurethatpeopleacrosstheorganisationarefollowingbestpractices.
FunctionalSilos
Disjointed
Processes
Howtooptimisecorebusinessprocessesandalignthemtoagreedbusinessgoals?
Challenge1:
PERF
ORM
ANCE
Performance Fall-Off
Time
SustainableGrowth
BestPractices
DevelopCapability
Visib
ility&Con
trol
CriticalPoint
PerformanceTransformation B
Thesecondchallenge is to findawayoftransformingperformanceacrossallaspectsofthebusiness.Butthisisfarfromstraightforward.Thetraditionalapproachhasbeentoidentifycoreprocessesthatneedtobeimproved–suchasNewProductDevelopment,andthentoworkwithinternalsubjectmatterexperts,coachesandconsultantstodefineanddevelopcapabilitiesandbestpractices. Having ‘fixed’ the problem, busy executives then turn their attention to the next challenge.Typicallyhowever,within6to12monthsperformancehasfallenoff–butwhy?Theansweroftenliesinthefactthatthenew‘bestpracticewasnotlockedintotheways-of-workingorDNAoftheteam,keymembersoftheteammayhavemovedon,andshort-termITsolutionssuchasExcelgetadaptedover-timeandfallintomisuse.OneExecutivecommentedthatthechallengeistofindawaytoembedbestpracticessothatfollowingthemisquickerandeasierthandoingittheoldway.
With a common approach across theenterprise, teamswill then learn fromthe past and learn from each other –somethingthatisinherentlydifficulttoachievewithcurrentITsolutions
Howtosustaintheadoptionofbestbusinesspracticesacrossthe
enterpriseovertime?
Challenge2:
SmartBusiness©Softools2017www.SofTools.net
EmergenceoftheDigitalEco-System C
Thethirdchallengerelatestotheemergenceofalternativeways-of-workingandcompetition.Historically,successfulcompaniesgreworganicallyorthroughacquisition.
People&Processes
M&A
Suppliers Customers
Virtual&MobileOps
Source:Gartner,2017CIOAgenda
“Leadingbusinessessharestandardizeddigitalplatformsacrosstheireco-systemstoachieveamutuallybeneficialpurpose”.
Wehavealready noted thatun-governedprocesses causeenoughdifficultiesduringorganicgrowth,butacquisitionscanpresentevengreaterchallenges.Fromday1theywillhavedifferentprocessesandsystemsthatneedtobereconciled.Wheresolutionsaresubsequentlyimposedon theacquired business, a degreeof short-termconformity canbeachievedbut thisoftencomesatacosttomoraleandlossofthe‘entrepreneurialspirit’–whichisoftenthethingtheacquiringorganisationisaimingtosecure. Thispictureisthencompoundedbytheemergenceofthevirtualorganisationwherecustomersandsuppliersareviewedaspartoftheextendedenterprise–orwhatGartnerrefertoasthe‘DigitalEcosystem’. Whatcompanydoesnotclaimtobe‘customer-led’andwhatbusinessdoesnothavea‘supplier-led’innovationprogramnowadays?Butmakingsuchprogramsworkiscomplicatedbyalackofcommon systems and processes. Such issues are then further exaggerated through theincreasinglymobileorvirtualnatureofteams–operatingawayfromtheirbasebutstillneedingaccesstocoresystemsanywhere,anytime.
Howtojoin-upandoptimiseallpartsofanextendedenterprise?
Challenge3:
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SmartBusiness©Softools2017www.SofTools.net
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OPTIMISEDPROCESSES+APPLICATIONENABLEMENT+EMERGENCEOFDIGITALECO-SYSTEMS
=PERFORMANCETRANSFORMATION
4
CriticalChallenges
Tofilltheoperationalvoid,businessunitsturn to Excel, and in all large enterprisestherearenowthousandsofspreadsheetsbeingusedtomanagewhatarebusiness-critical operations. Unfortunately, whilstExcelcanappeartobea‘free’short-termfix, it is rarely the answerwhenworkingacross teams of eco-systems includingcustomersandsuppliers.Typicalproblemsquoted include: lack of governance,modification by local users (adding rowsand columns), inability to run real-timereportsandduplicationofdatainput.
TeamA
TeamB Team
C
ERM–SAP-Oracle
HowtodramaticallyconsolidateandoptimiselegacyandExcel-basedapplications?
Challenge4:
ApplicationEnablement–removaloflegacyandExcel-basedApplications
D
Finally,andperhapsthelargestofthefourchallengesisthereliance(orwhatonebusinessleadercalledthe‘over-reliance’)onERPsolutionssuchasSAPandOracle–“whilstaneffectiveERPsystemisanecessityofmanaginganylargeenterprise, it isoftenusedpurelyforadministrationofthebusinessasafinancialandresourcemanagementtoolanditrarelyaddresseswhatareincreasinglyseenascoreprocessessuchasriskmanagement,innovationormajorbidmanagement”.Giventhis scenario, is it any wonder that most operational heads look elsewhere for operationalsolutions?
SmartBusiness©Softools2017www.SofTools.net
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Theyareclearlynotstandingstill,andhaverecognisedthat‘doingnothing’isnotanoptioniftheyaretosurviveandgrow.Acrossallsectors,theyareintroducingradicallynewways-of-workingbasedonexcitingnewtechnologies,andtheyaredoingsoinawaythatdrivescompetitiveadvantageandoperationexcellence.Herearefoursimpleexamples:
WhatareSectorLeadersdoing?
However,whilstITingeneral,andsoftwareappsinparticulararenottheonlyanswertosuchbroadrangingchallenges,it isobviouslythepriorityfortheCIO,anditisincreasinglyacceptedasthecriticalenablerbyCEOs.TheescalationofITuptheagendaasthebusinesstransformationdeliverycapabilityiswelcome,buttheapproachtodatehashitonsignificantobstacles:
01
Thefailureoftraditionalsoftwaresolutionsto address the real needs of the business.Historically solutions have been based on whattechnology can do – not what processes orbehavioursneedtobesupportedinpractice.Forexample,over-enthusiasticsoftwaredevelopmentteams create project resource managementsolutionsthataretoocomplexfortherealworld.Historically such developments have clearly notbeencustomerorperformancedriven.
02
The failure of dashboards and businessintelligencesystems.They lookgreatbutareoftenreportingonpoorqualitydatapulledfromamyriad of systems where the underlying datacapture processes are just not in place. Suchgraphicaldashboardsmaybeprecise,buttheyarefrequently accurate. They give a false confidencewhich results in less critical challenge and whichultimatelycanbeworsethannodataatall.
APPINCUBATOR
Appsbuiltbynon-ITSubjectMatterExpertsonzero-code
platforms.ThisgivestheCIOthegovernanceandcontrolthey
require,butminimisestheimpactonscarceITdevelopment
resources.
ERPBOLT-ONS
AppsthatextendthefunctionalityofthecoreERPsystem,butthatarebuiltoutsideinamoreagile
environmentandlinkedinviaAPIs.Thisdeliversenhanced
functionalityatafractionofthetimeandcost.
DIGITALSTRATEGY
Appsthatsupportthedigitalenablementoftrainingandconsultingfirmsorinternal
functions.Thisallowsthemtodelivercompletelynewservices
whichdrivesignificantvaluetothebusiness.
IOTSOLUTIONS
Appsthattakereal-timeorsampleddatafeedsfromdevicesacrossbusinessoperations.ThisprovidesExecutiveswithreal-timeperformancedatawhichenhancesdecisionmakingandcriticalaction
planning.
SmartBusiness©Softools2017www.SofTools.net
01 Customerdrivenstrategy cascadingKPIsacrossallteams
Start by creating a strategic framework whichclearlyarticulatesshort(lessthanayear),mediumandlong-termgoals(beyondthreeyears).Ensurethese directly support high emphasis and highgrowth targetmarkets. Then translate each goalintotangibleKeyPerformanceIndicators(KPIs)andtargets,andcascadethesedownthroughalllevelsoftheorganisation.
UseaBalancedScorecard/KPITrackerapplicationtoalignallteamstocommoncustomer-drivenbusinessgoals. CIOAgenda:
02 Commonbusinesstools basedonbestpractice
IdentifythecoreprocessesacrossthebusinessthatarenotcurrentlymanagedinanERPtool.Thiswillinclude processes being managed in third partyapplications, in-house developments and themyriad of Excel based applications. Then groupthem together by type (i.e. risk managementsolutions),andrankthemfromhightolowintermsofusernumbers.Next,focusoneachapplicationinturn,startingwiththemostimportantbyuser
andbusinessimpact,andpulltogetherinternalSubjectMatterExperts(SMEs)andexternalconsultantswhereappropriatetodefinewhatisbestpracticeforyourbusiness.Finally,captureanddeploytheseprocessesinaweb-basedplatform.
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Sowhatcanbedone?ThereisnodoubtthatthecurrentrevolutionintheITindustrycallsforaradicalapproach.Whilsteachorganisationisunique,discussionswithCIOsacrossallindustrysectorsandregionshaveidentifiedten‘buildingblocks’forsuccess.
10
BuildingBlocks
SmartBusiness©Softools2017www.SofTools.net
Useasimpleeasy-to-useapplicationplatformrunninginasecurewebenvironment.
CIOAgenda:
Source:GCMarshall
“Useafourstepprocessforevaluatingcurrentprocess-applications:KICK. Keep,Incentivize,Consolidate,orKill”.
03 Real-timeperformancedashboards linkedtorealdata
Havingestablishedclear team-basedKPIs linkedto business goals, and implemented a commonsetofprocess-applications,focusnextonlinkingthe two together and on reporting on processperformance through real-time reports anddashboards. Think about what information isneeded to drive decisionmaking at the regular(weekly, monthly, and quarterly) performancereview meetings [PRMs]. Performancedashboardsshouldbethenaturaloutputofyourbest practice processes and not something thathastobemanuallyconsolidated.
Implementsimple,web-based&mobiledashboardsthatpresentkeyinformationtoeachoftheregularperformancereviewmeetings.
CIOAgenda:
04 FlexibleStructures
goingvirtual,goingmobile
Therealityofthemodernbusinessisthattoday’sstructure andway-of-workingwill be redundanttomorrow,sobuildflexibilityintoallyoursystems.Thisneedstocoverusernumbers,andapplicationaccess, but increasingly it must enable virtualteams and mobile working based aroundanywhere-anytimeaccess.Thisdoesnotmeanthateverythingneedstogomobile, but each team will have selective datathat needs to be available at the ‘point-of-use’.Startatthetop–issuetheExecutiveTeamwithtabletsandsmartphonestomonitorandcontrolperformanceinreal-time.
Ensurethatsystemsallowforremoteormobileoperations.
CIOAgenda:
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SmartBusiness©Softools2017www.SofTools.net
05 ExtendedEnterprise
linkingallpartsofthesupplychain
Businesses no longer see acquisition as the onlymeans of extending their influence and controlover other parts of their supply chain or newmarkets. Increasingly companies seek tocollaborateorpartnerinordertogaincompetitiveadvantage without incurring the complexity andcosts associated with acquisitions – sometimesreferredtoastheireco-system.
Establishsecureremote-hostedprocess-applicationsthatallowselectiveaccesstoexternalstakeholders.
CIOAgenda:
Lookforopportunitiestoengageyourstrategicpartnersinactivitiesthatimproveperformance.Forexample,sectorleadingbusinessesnowhaveSupplier-ledInnovationprograms.Thissoundsobvious,buttomakeitreallyworkputinplacesecuresystemsthatallowselectiveopenaccesssothatexternalteamscancontributefreely.
06 OperationalExcellence andacultureofContinuousInnovation
Having set up best practice process-applicationsacrosstheextendedenterprise,createacultureofcontinuousinnovationwhereteamssystematicallylooks for performance transformationopportunities.Consider introducing a formal OperationalExcellence programme – perhaps based on theprinciples of Lean-Six Sigma, and ensure that itreflects a combination of rational (performanceagainstKPIs)andcreative thinking. Toavoid theprogrammefallingflatonitsface,ensurethataneffectivegovernanceandimplementationprocessisinplacetodealwithnewideas.
Createtoolsthatstimulatecreativethoughtindailyactivities,andcaptureandevaluateperformancetransformationideas.
CIOAgenda:
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SmartBusiness©Softools2017www.SofTools.net
07 ConnectedSubjectMatterExperts(SME) &CommunitiesofPractice
Mostbusinessesaredependentfortheirsurvivaland growth on having expertise in a limitednumber of areas or topics. Think about whatthesewouldbeforyourownorganisation. OneCEOcommentedthattheprocessofcreatingalistof the relevant business key words for herbusinesswasagreatwayofsettingstrategy,asherlist contained all high emphasis products andmarkets, relevant technologies, core capabilitiesandeventheirsourceofcompetitiveadvantage.
Createweb-basedspaceswhereSMEscanoperateasanetworkorcommunityoutsidetraditionalfunctionalsystems.
CIOAgenda:
Thenidentifythe2to3(internalorexternal)SubjectMatterExpertsSMEsineachofthesekeyareas–whoarethey,aretheyreallyexperts,anddoyouhaveanygaps?Finallylookforwaystogetthiscross-functionalgroupofSMEstostartworkingtogethereffectively–shareknowledge,andlookforbusinessinsightsthatwilldrivecompetitiveadvantage.
08 BusinessIntelligence &KnowledgeManagementthatworks
HavingidentifiedSMEsinallkeyareas,findawayofcapturingtheirknowledgeandinsightssothata)thiscanbeaccessedbyyourbroadeco-systemasandwhenrequiredwithoutneedingtocontactthe experts directly, b) it can be protected as ausefulsourceofcompetitivedifferentiation(e.g.as IP, patents or trademarks), and c) that thebusinessislessdependentonthepossibilitythattheSMEmayleaveorsimplynotbeavailable.Donot assume that mining data will solve thisproblem–youwillneedtochangethestructure
Createweb-basedknowledgecubesthatcapturestructuredinsightsbytopic(orkeyword)andtype,andmakethemavailableanywhereanytime.
CIOAgenda:
ofwhenandhowknowledgeiscapturedinordertomovebeyondso-calledbusinessintelligencetotruebusiness insight. Avoid thepossibility that theknowledgewillnotbeusedby classifyingallinsights by type (reflecting varying learning styles) and topics (keywords) – this will dramaticallyimprovethelevelofsearchandre-use.
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SmartBusiness©Softools2017www.SofTools.net
09 Exploitrelevanthardwaretechnologies
Thefocussofarhasbeenonprocess-applications;nowlookforopportunitiestoimproveallaspectsofyourcurrentinfrastructure.Over 75%of CIOs stated that theywere activelyexploring the potential of emergent newtechnologies such as the Internet-of-Things IoTthatallowsdevicesinthebusinesseco-systemtoshare data in real-time. However, do not startdownthisjourneyuntilyouhaveconsolidatedandaligned your core business processes andsupporting applications as this will define yourinfrastructurerequirements.
Understandandexploitrelevantemergingtechnologiessuchas:IoT,MachineLearning,KnowledgeBots++
CIOAgenda:
10 Oneteam,oneplatform
Finally,taketimetostopandthinkradicallyaboutyour current software environment. Forwardthinking CIOs have identified three genericapplication types that could potentially address99% of the software requirements: 1) anEnterprise Resource Planning tool (such as MSDynamics, Oracle or SAP), 2) a content & filemanagement tool (such as SharePoint linked toMicrosoft 365), and 3) a web-based processoptimisation platform (such as Softools,SalesForce.comorServiceNow).Thispanaceamight sound idealistic,but scalableandflexibledatabaseslinkedwithadvancedweb-applications mean that this dream is quicklybecomingareality.
Useadvancedweb-platformstodeliverasinglebusinessoptimisationsolutionacrosstheentirebusinesseco-system.
CIOAgenda:
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SmartBusiness©Softools2017www.SofTools.net
Sohowisallthislikelytoimpactonthebottomline?Thereisnodoubtthatimplementingeachof the 10 Building Blockswill have a dramatic impact on business performance, but the extent of thetransformationwilldependonthegapbetweenthecurrentstateandyourfuturevision.However,businessleadersidentifythefollowingwaysinwhichbusinessperformanceandprofitabilitywillbeaffected:
PerformanceTransformation
IncreasedExecutivevisibilityandcontroloverbusiness-criticaloperations>improved,rapiddecisionmaking
Transparency
Consistentadoptionofbestpracticesacrossoperationalteams>better,faster,cheaperexecution
PerformanceFocus
Adoptionofaone-teamapproachacrossBusinessUnitsandtheextendedenterprise>joinedupthinking,fewergapsoroverlaps
Alignment
Increasedconfidencethatstandardsarebeingadheredto>reducedoperationalandcommercialrisk
Compliance
Leverageduseoftheweb-platformandSaaScommercialmodel>dramaticreductionsinthetotalcost-of-ownershipacrossallapplications
Cost
Exploitationofaconfigurableplatformwithapplicationprototypingandzerocoding>dramaticreductioninspeed-to-marketanddevelopmentcostscombinedwith100%reliability
Risk
Reducedhardwarefootprintcombinedwithcloud-basedflexibility&scaling>lowerCapExandOpExinfrastructurecosts
Overhead
Platformconfigurationbynon-technicalSMEs>zeroorminimalimpactonstretchedinternalITresource
Resources
Easeofdevelopment&useofoff-the-shelfapplications>adramaticreductioninthenumberandcomplexityofapplications
Complexity Useofasingleweb-platformforallprocess-applications>dramaticimpactontheupgradeprocess,versioncontrol,databack-upandsupport
Dramatic
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SmartBusiness©Softools2017www.SofTools.net
About
SOFTOOLS
Softoolsseekstooptimizetheperformanceofbusiness-criticalprocessesthroughtheuseofadvancedwebtechnologies. OursolutionsarecreatedusingthecoreSoftoolsPlatformand integratedAppsthatdeliversasimple,scalableandsecureenvironment,andthatcanbedeployedatspeedbasedonthelatestprovenMicrosoft Azure platform.Our client base includes global corporations such as Coca-Cola, IBM,Vodafone, RBS and Public Sector organizations including Government departments, as well asentrepreneurialteams. Softoolsweb-applicationplatformdeliversbusinesstransformation:
Operations span theglobe, andwenowhaveapresence inall regionsof theworldand industrysectors.WhereverthereisanoperationalproblemtoresolvewhereExcelcannolongercope,companiesare increasingly looking to put in place the Softools platform and associated process-applications thatdeliverthevisibilityandcontrolrequiredbytheleadershipteam,andestablishacommonwayofworkingbasedonrecognisedbestpractices. TheSoftoolsplatformhasalsobeenadoptedbymanyoftheworld’sleadingorganisationstoembedbest practices into the DNA of the business in specialist areas such as: Strategic Change, InnovationManagement, New Product Development, Payer Value Proposition [PVP], Stakeholder Management,EnterpriseRiskManagement,SalesPipelineManagement,KeyAccountManagement,Project&PortfolioManagement[PPM],Issue&OpenItemManagement,KPIScorecards&PerformanceManagement,JobTracking, Contract Tracking, Cost Reduction, Benchmark calculations, Bid Price Calculation & BidManagement,InternalAudit&Compliance.
BESTPRACTICE Businessprocessappsdirectlyfocusedonstepchangeinbusinessperformance
ZERO-CODE Theeasiestto
Configure,Deploy,andUse
SCALE Unlimitedusers
selectingfrom100sofoff-the-shelfapplications
SPEED Minimumtime-to-deploy–‘ideato
implementationwithin24hrs’
SECURE Absoluteconfidencein
datasecurity
Formoreinformationvisit:
www.Softools.net [email protected]. OR