

|
|


|

|

|

|
 Peter Sondergaard, Research Executive for Gartner in Europe |

|
|

|
Mastermind Keynote:

Focusing the Lessons of Gartner Symposium/ITxpo 2002
Thursday, 7 November 2002
Four days, more than 120 presentations, about 100 vendor exhibits, analysis ranging from product detail to enterprise strategy - how do you put it all together and let attendees leave with solid lists of specific things to do?
Supplying final action lists was the aim of the closing keynote presentation at Gartner Symposium/ITxpo 2002 in Cannes, France on Thursday. Peter Sondergaard and Steve Prentice, research executives for Gartner in Europe, reviewed the main themes of the Symposium and summed up the key points.
Making Time for Real-Time
Steve Prentice began by reminding delegates that they have themselves to blame for the acceleration of business. And, he said, there should be no illusions - it will impact each and every delegate attending Symposium and therefore, the Gartner notion of the Real-Time Enterprise has very real meaning.
He reminded them of the definition of the Real-Time Enterprise:
The RTE competes by using up-to-date information to progressively remove delays in managing and executing its critical business processes.
Prentice reminded delegates that the definition does not include the word “technology because RTE is neither a technology nor even a specific set of technologies. It may emerge as one or more markets for technologies, but the point is that it exploits various technologies of the Internet era for business benefit.
With the RTE as a business improvement capability, Gartner is calling attention to the need to base enterprise rejuvenation not only on monetary measures of operational revenue and cost, but on time-based transformations of leadership and management as well as of operations.
By shrinking major cycle times as a repeating pattern of behavior, enterprises can expect dramatic time - and, consequently - cost savings.
Building a New Enterprise Architecture
To embark on such programs of continuous reductions in cycle times, enterprises will need to create new architectures to provide the framework for the new ways of doing business in a connected world. Peter Sondergaard then took up the story.
Again, there are many definitions of architecture. The word is now used beyond its traditional concern with buildings. In the IT and business concept, one definition is:
Architecture is an organized, conceptual framework to enable descriptions of complex systems and guide how to build more systems.
Sondergaard said an architecture can describe the system, rules, principles, styles and even reference models used in constructing complex systems of people, processes, businesses and interactions with other entities.
Often overlooked are issues of governance. Sondergaard listed five relevant action area:
1. Re-think how operations are performed to introduce and embrace access and co-working by other enterprises
2. Re-think how business and IT managers should work within shared governance contexts
3. Re-kindle interest in IT performance with an integrated performance management system
4. Plan for accommodating a multi-enterprise architecture
5. Understand how experience and culture will determine the success of an architecture
Business processes occur with architectures that are best designed with business and IT leaders working together.
Demonstrating that IT has Business Value
Prentice then said that for IT to continue to make a contribution to business it has to very clearly demonstrate the business value of IT. To do this, business and IT people need to go back to basics and take stock of where and how IT really is contributing to the business. For many years, many managers have oversold IT benefits and used that atmosphere to overbuild the facilities. Now business managers have emerged with a good understanding of IT.
Companies want to leverage the IT that they have rather than simply buy or build more. They know that money is tight and that IT costs are significant and rising. So prioritization will be key and business managers will want to influence those decisions.
Key action points over the next six to 12 months include:
- Prioritize new projects according to whether work can be stopped and then restarted without loss
- Rebalance project portfolio with focus on short-term returns
As conditions improve:
- Rebalance portfolio for longer-term returns
- Allow higher risk projects to join “sure thing” projects
- Re-examine staffing and funding levels.
The themes of Symposium, Prentice concluded, will mean that IT and business managers have the opportunity to share a common purpose while coherently managing change. As enterprises develop traditional themes of process improvement into the capabilities of the Real-Time Enterprises, so they should be able to realize a 15 percent to 25 percent improvement in earnings.
Otherwise, executives might find themselves in the position of Captain Smith who is reported to have said, "I cannot imagine any condition which would cause a ship to founder. I cannot conceive of any vital disaster happening to this vessel. Modern shipbuilding has gone beyond that.” His vessel was the Titanic.
Jonathan Green-Armytage Gartner Staff
|

|

|
|
|
|