Friday, April 3, 2009

Why IT Solutions Are Never Simple

via Susan Cramm by Susan Cramm on 4/1/09

Without concerted effort, what was once neat and tidy becomes marred and messy. Just finding something in the garage feels like an archaeological expedition. Periodically, when someone dies, or relocates, or becomes disgusted, there's a whirlwind of activity to purge and reorganize. This cathartic experience is followed by a brief period of exhilaration, until time passes and entropy exerts itself once again.

So of course the airlines didn't intend to build "multiple old computer systems that don't share information well." When these systems were initially constructed (in the 60s and 70s), they were neat and tidy. Application requirements were defined from the point of view of a department and the needs of the people within it. The approach to programming reflected a simple and static world where it was the norm to embed data and business rules together with the logic necessary to support a business function — for example, to book and manage reservations. No one conceived that customers would book their own travel, that airlines would merge and spin off, that competing airlines would sell seats through code share agreements, or that competition would become so fierce as to necessitate greeting them by name and remembering their favorite drink.

To respond to these demands in a timely manner, IT did what we all do. They packed as much as they could in the existing "application" garages. When it became impossible to enter them without breaking something, they built new ones to store additional, but redundant, data, business rules, and logic. In an attempt to coordinate these applications to support business processes, they built a myriad of point-to-point interfaces between the applications. As a result of these seemingly efficient but short-sighted approaches, the systems architecture of the average 20+ year company looks something like this (aptly named, the "scare" diagram):

scare-diagram.JPG

Because of this complexity, many companies don't have a definitive understanding of their customers, products, and performance and have difficulty modifying business processes in response to new opportunities and competitive realities. Furthermore, they devote the lion's share of their IT spend to maintaining existing systems rather than innovating new capabilities.

This isn't new news, of course. During the 1990's, we started to realize that IT systems often inhibited rather than enabled change. Since then, IT and business leaders have been working hard to increase agility by replacing systems and using new approaches to promote integration and commonality. Along the way, we have learned that:

  1. Across-the-board "scrape and rebuild" of systems usually doesn't make sense because often the gain isn't worth the pain. This approach is like knocking down your garage and throwing out everything in it. There's a lot of good stuff in your existing applications and there is no guarantee that the new systems will be that much better, less complex, or cheaper than the old ones.
  2. Hiding existing systems complexity using a "layer and leave" approach makes it easier to use and integrate existing systems, but doesn't reduce the costs of supporting inflexible and redundant systems. This approach is like hiring a garage "concierge" to find things and put them away. Unfortunately, you have to pay for the concierge service as well as the costs of maintaining the garages.
  3. The best way to manage complexity is to "clean as you go". This is a combination of the two approaches — implemented on a project-by-project basis. Each project is defined in a way that moves the enterprise closer to the desired "to be" architecture. Using our garage analogy, to move something in, one or two things must be reorganized or moved out. This approach includes layering, but also extracting critical data and functionality out from applications and rebuilding them so that they can be managed as an enterprise asset.
"Things alter for the worse spontaneously, if they be not altered for the better designedly." To be altered for the better requires that everyone agree on what "better" is. "Better" for the enterprise over the long term is often at odds with short-term business goals and profitability. The "clean as you go" approach will always entail additional time, effort, and resources.

IT isn't alone in the need to simplify. As Rosabeth Moss Kanter pointed out, "Companies sow the seeds of their own decline in adding too many things — product variations, business units, independent subsidiaries — without integrating them." Keep in mind that, since IT architectures mirror the inherent complexity of the businesses that they support, it's impossible to have a truly agile and cost-effective technical architecture without simplified business architecture.

It's hard to say "no" to the extra product line, merger, reporting package or, for that matter, bicycle. Simplicity's just not that simple. How are you doing getting there?


Monday, March 23, 2009

change management

One of the most important elements of project management, especially in Pakistan is to manage change and expectations. Expectations is something which I feel is up to the PM on how he or she does it considering the overall organizational culture, but change management is something which can be learned a lot from existing theories. Propably on of the best books I have read on it is Kotters: Leading Change. Its a materpiece in my opinon and a must read for all proffesioanls, especialy those who are into intense IT projects which will dramaticaly change the working culture and exising processes.




Friday, March 20, 2009

Karachi the new flag store

A lot has changed over the past few weeks in Pakistan. The ineligibility of the Sharif brothers to the rise of the long march and ultimately the restoration of the chief justice not to forget the popularity of Nawaz Shareef as the hero and savior of the nation (damn it..why does history repeat itself)...one thing which I have personally noticed a lot in Karachi especially when driving down on Share e Faisal, is the new concept of using street light stands as flag polls. Over the months, I have seen various political parties and religious groups trying to portray their strengths on the street of Karachi...which to be honest looks very dirty. I can't understand that at one place our city Nazim Mustafa Kamal comes on television and compares us with the west and says that they have gone to the moon and we still have no civic sense bla bla and on the other permits these groups and parties to display their strength by putting flags pretty much everywhere. Why can’t he see that these flags on the street of Karachi just don’t look very clean, not to forget it portrays the intense group culture in the city...is this something we should worry about?

Wednesday, March 4, 2009

Milking It To The Max

milking-it-to-the-max-dp
Engro Foods is a 3-year old company and started in 2006 with one brand of Olper’s. In a market space where Nestle was ruling the world and Haleeb was very close behind, the company started off as a local group with all the energies possible. In a short span of 3 years, Olper’s captured over 30% of the packaged milk market share and rapidly climbed to number two in the market.

How does a company having such limited experience in the food business, manage to pose such a challenge to the market leader? There’s quite a story about the role technology has to play in making this local ‘multi-national’ the company to watch out for ........

http://ciopakistan.com/2009/03/milking-it-to-the-max/

Monday, February 2, 2009

ROI for a blog

Over my short career I have seen that any technology project taken to a board or management committee without sufficient financial backing is as dangerous as going for a roller coaster ride without a seat belt. One of the most critical element within the financial package is IRR or ROI part. I personal feel that finding a financial justification to most technology projects is very very difficult. For instance, in one company the Manager IS wanted to replace an older version of Maximo with a newer version, but failed to convince the board because he did not have an ROI, even though from the technology perspective it made perfect sense. All my sympathy for the person ... now this whole problem bought me to think that currently companies (in the west) are making a lot of effort to create official blogs or get involved in social networks so that they can get closer to there consumers who are actually living on the web. How does a CIO convince a board who are hungry for numbers and financial justification that they should be out there on the web interacting with there consumers in one way or the other. Li and Bernoff book, groundswell gives a very interesting insight on how to do it . According to them, blogging is a modern concept of PR relations. Many scholars over the years have tried to find ways to justify having a PR department by finical means, and a lot of them have been successful beinggirl.com being one of them. Considering, we take it as a PR tool, the following CAPEX, OPEX and value addition heads could be defined:

CAPEX:

- Web site creation this would include an agency for art works etc
- Hosting
- dedicated personnel to monitor or scan the web and promote blog

OPEX:

- annual hosting charges


Quantifiable Benefits:

- Reduction in classical PR cost
- Saving from standard research tools
- Saving from standard marketing campaigns


There is one benefit which i cant figure out how it can be quantified, and i.e. conversion of traffic to sales. Feel free to add more on the quantifiable benefits, and lets see how many heads can we make?