Organization Structure to Support Digital Business – What to Consider

digital-business-image-1

By John Dick

Central to the changing landscape of IT and business is the proliferation of devices and Internet of Things; by 2020, more than seven billion people and businesses, and at least 30 billion devices, will be connected to the Internet. This interaction leads to the evolution of digital business, and with that evolution is the need for companies to think about how to organize their most important asset – people – in a way that best supports the delivery of their products and services in this new digital business structure.

We have been giving advice to companies on how to thoroughly think about the role of people and organization structure within this evolving and complex equation of people, process, and technology. I have captured some of our leading points around structural questions to consider and critical success factors related to the organization of a company’s technology engineering and delivery groups below. In turn, this blog will lead to a future post outlining digital business organization structure, and guidelines around your company’s infrastructure readiness.

First, there are some questions to consider in thinking about digital business, technical engineering and delivery organization structure.

The first deals with how your company is organized, because it is probably organized the way it is for a reason, such as to most optimally support effective product sales and delivery.  Also, that structure is the eco-system in which you will need to co-exist.

Important Company Structural Questions and Considerations

  • What is your company’s approach to centralization vs. decentralization of responsibilities and structure?
  • Does your company impose structure through traditional functions, product, process functions, or technical expertise?
  • How does your company think about direct line vs. dotted line reporting and to whom?
  • Do you fit the technology organization to the business requirements or to the people?
  • How do you handle regional | international units?

Understanding the relationship of your organization within its larger context is critical to how you organize your group. For example, if your company is decentralized, it will probably be important to understand why your organization is also decentralized. What are the key reasons your business is decentralized? How will you provide digital support to the decentralized units in a meaningful, personal manner? How will you understand unique customer regional requirements? What if it has aspects of both? A carefully crafted hybrid solution may then become necessary.

From here, we offer key initial points to consider toward optimizing your organization structure for success.

Once you’ve thought through and understand how your company is organized for success around its products and services, you’ll want to transition to what are the critical success factors for your technology associated group. That, once aligned with the rest of the company structure, will assist in developing success criteria.

Critical Success Factors

  • Aligning organization with business strategy and function
  • Allowing organization to keep pace with company growth and changing business dynamics
  • Providing effective decision support and related performance | scorecard tracking
  • Integrate organization approaches within company culture

While the first three points are a common theme and well accepted, I believe the last point is often overlooked. All companies have some aspect of company culture in their environments. If your organization is not organized or motivated within that context, success could be difficult. A good way to support this is to subtly develop success criteria that is natural to your environment.

With new roles other supporting or catalyst roles will emerge, and CXOs will need to develop digital leadership capabilities in order to execute an effective digital strategy.

In the next post I will delve further into what this means and how to think about your company’s infrastructure readiness to complete the picture.

ERP – To the Cloud

Enterprise Resource Planning System CRM in word tag cloud

By Ken Crafford

Part I

ERPs are strategically important as a “must-have” capability for most companies. They are a major investments, and a large component of total IT spend. CIOs know that getting the ERP aligned with business drivers, while remaining efficient and cost effective, is imperative to a company’s long term strategy and financial success. And they understand the importance of being nimble and keeping up with the constantly evolving needs of their business customers.

Historically, ERPs have been large and complex and expensive to implement and maintain – think Oracle and SAP legacy ERP systems. While they may be hosted or running in the cloud, you still have to maintain and upgrade them, and with that comes significant risk and cost. Keeping ERP’s current and adapting to new business requirements also consumes significant portions of IT spend.  And, if your business is changing quickly, it is very difficult to be keep up with those changes when you are running these very sophisticated, and accordingly, very complex software products.

This leads to the question of what are the alternatives?  Many of our clients are looking to the cloud for solutions that can meet their requirements for functionality, cost, and flexibility.

Solutions are indeed emerging, but with some caveats.  As we have seen in other areas – CRM being a primary one – there are great platforms for delivering top tier solutions.

However, before ERP in the cloud would be ready for prime time, both the applications and underlying platform technology must be rock solid.

The platform architecture and capabilities are critical to how the product will scale to meet your demand, how the vendor can add functions and features over time, how you can add enhancements that don’t break when the vendor updates the core product, and the extent of the ecosystem of supporting solutions that run on the same platform.

And so the crux is not just whether cloud ERP products have the functions and features that you need – you must also look at the underlying technology platform and the ecosystem of products and services that are part of the complete solution.

Fortunately, the market is evolving very quickly and we are seeing some solid cloud ERP products emerging that are based on great technology platforms, and provide a solid foundation for a product that you will probably be using for the next 10 years.

In future posts I will be calling up some examples of these solutions and how they can be leveraged.

Stay tuned.

 

Information Security Training: Merritt College Enters Its Third Year

 

Merritt College logo

Merritt College in Oakland, CA will start its third year of classes this Friday, August 26.

We’re excited to be entering the third year of this program, having graduated our first set of students this past June 2016. The Merritt College Applications and Infrastructure Security program (as a reminder) is a fully accredited A.S. degree with majors in Applications and Infrastructure Security.

This program results from partnership with the CISE CIO Organization, Merritt College, and CIO’s/CISO’s from leading San Francisco Bay Area companies. These groups have given their time and expertise toward building up this program from its inception. Donations from the CISE CIO group now amount to $130K, and with this amount, we have developed the current curriculum and put a new cybersecurity lab in place.

This program and its impact couldn’t be more timely, given that one of the biggest threats to companies is a lack of trained cybersecurity professionals.

You can find an overview of program here.

We are also looking to place our recent first class of June graduates into Information Security roles with leading companies and organizations. Please contact Mark Egan you are interested in hiring our students to improve your Information Security programs.

StratraFusion – Values

Values balls

 

The pace and evolution of enterprise technology more than ever calls for strategic advice on how best to use this technology to optimize your business.

We formed The StrataFusion Group as a unique technology and business consulting practice based on knowledge gleaned from practitioners and their years of in-house “hands on” leadership and experience. Our Partners have driven technology and business strategies in disruptive Fortune 500 companies and fast-growing enterprises and firms, and they bring years of practical knowledge into solving each opportunity in its complexities and challenges.

We advise and assist our clients on how to leverage their technology investments to increase revenue, and improve customer satisfaction while reducing risk and cost.

We originally conceptualized and founded The StrataFusion Group to provide expertise ”for CIO and CTOs, by CIOs and CTOs.” The practice has, unlike many other technology consultancies, continued to emphasize the personal operational experience of our Partners. This expertise is then applied directly to your problems and issues by our Partners — not inexperienced stand-ins. You receive our personal attention and commitment to efficient and effective engagement management.

Our passion is to empower companies to be business innovators by combining leading-edge insights with significant experience-based knowledge of markets, technologies and industries. We focus on adding client value, delivering ultimate professionalism, applying team cohesion to expand experience and focus success, with respect for individual values and goals. We truly seek to earn the “Trusted Advisor” status. When you have a serious technology problem we want you to think of StrataFusion, not Ghostbusters!

We offer proven solutions for the most difficult business challenges, focusing on these practice areas:

StrataFusion Practice Areas

  • CIO / CTO Advisory
  • Information Security
  • Digital Transformation
  • Big Data / Cloud Analytics

As we go forward and continue to build on our consulting practice areas, how we were formed, our foundation and core values continue to drive how we approach each company with their unique set of of challenges. Underlying all of our work is our set of guiding principles:

StrataFusion Guiding Principles

  • We challenge and reinvent the vision
  • We create through teamwork
  • We nurture the independent, entrepreneurial spirit
  • Our personal and operational competence and professionalism is clear and at our clients’ disposal

We look forward to working with you.

John Dick, Partner and Co-Founder, StrataFusion

Measuring What Matters

Measuring stick

By Maureen Vavra

Our clients often call on us at StrataFusion Group to help with Business Intelligence projects to validate and monitor major corporate initiatives. BI and Big Data have become fundamental in managing profitability and improving efficiency for business today. Managing with data can also make a big difference in smaller internal change management or projects, too.

It doesn’t need to be too complex, and the payback is clearer understanding up front and a better grasp of what an initiative needs to accomplish to be successful. I find that working with clients to identify a few key measures is a good way to quantify the level of change they want and can realistically achieve.

For projects or initiatives, define success before you start – which needle do you want to move?

  • Any big effort has to boil down to a few quantifiable outcomes, usually along the lines of the project management mantras of cost/schedule/performance. Define your outcomes and your tolerance for variance. Make it all explicitly clear.
  • For any change, the Performance area is the most important. Before you start to plan a project or a major change, define the outcome, and what success looks like. Make sure you can measure impact.
  • Keep a close eye on the business imperatives you don’t want to adversely impact – and reward people for maintaining their high standards. It’s called “managing multiple priorities.”

Measure what matters – don’t spend a fortune on reporting in the early stages

  • Ask the people doing the job or receiving the service what really matters.
  • If any effort is monitoring more than 4-5 key measures, you have overthought it.
  • On a “replace functionality” project, cut the number of reports you generate in half (even if you just did that.)
  • Think about metrics as if you’re driving a car – how many dials can you watch and still get somewhere?

Got a problem or roadblock? Value the naysayer

  • Vocal employees are saying what others are thinking. Examine the barrier: real? big? how can it be tackled? Make it a measure you knock down.
  • Accept it: good employees who are negative about a new project or change usually have a point – get them to quantify why they think something won’t succeed and help turn it around.
  • Challenge critical thinkers deliberately: to suss out what could go wrong, develop risk mitigation tactics, and help quantify and test the system for failure points.

Take a victory lap that boosts morale

  • Set solid milestones for internal initiatives, monitor and acknowledge when they are met. Recognizing specifically what worked, why something is more efficient, provides better job clarity.
  • If something fails and you catch it early, credit your measures for giving you an early warning – that’s a major value add.
  • Tie your measures to the bottom line, saving or making $, improving quality, increasing Customer Sat – it keeps the CFO happy.
  • People like to be rewarded for specifics, to know what to do to succeed – show them that something they did made a difference.

Finally, once a change management initiative or project completes, having quantifiable data can be invaluable in assessing key learnings and planning for follow-on activities as well.  If there is a larger BI or reporting effort required, the foundation has been set.

Lessons Learned

Lessons Learned green image

In our recent StrataFusion Partner leadership meeting the topic of lessons we have learned, or the ‘big mistakes’ we have made, with our subsequent learnings, came up in our discussion. Lately there seems to be a proliferation of these learnings, and we thought it would be a good time to present some of ours.  Below our Partners have recapped some of their biggest lessons learned.

Maureen Vavra:

  1. Focus on building relationships with the business leadership and aligning with their goals at the beginning of a new consulting relationship.
  2. On projects: Have a defined sponsor and a clear set of measurable business objectives before you allow a project to start.

Mark Egan:

  1. Be proactive with low performing staff, putting an improvement plan in place, before waiting too long to take any action, with hope that things would improve.
  2. Gage and focus on projects that help the company build high quality products/ services or sell products/services.

Reed Kingston:

  1. Stay focused on critical projects. Verify constantly.
  2. Let projects be led and driven by data and facts instead of “enthusiastic hopes,” hanging on to some projects/initiatives/products too long.

Doug Harr:

  1. Taking too long on a termination believing the person in question could be coached to success.
  2. Make the timely effort to establish a great relationship with the peer customer on your management team to reap the benefits of great communications and emotional deposits🙂

Ken Crafford:

  1. Cement the approval and support from all executive stakeholders before engaging in large, critical projects.
  2. Understanding that managing up the organization is as critical as managing down the organization.

 

Improve Your Information Security Program and Give Back to the Community

Merritt College Cybersecurity Students In Action

We are very excited to announce that Merritt College in Oakland, CA has graduated its first Information Security class. Merritt College serves the San Francisco Bay Area Central East Bay School districts, which include students from less advantaged backgrounds. The Merritt College Information Security program is a fully accredited A.S. degree with majors in Applications and Infrastructure Security. This program has been two years in the making and results from the partnership with the CISE CIO organization, Merritt College, and CIO’s/CISO’s from leading San Francisco Bay Area companies.  Please find a fuller summary of the program below:

  • Courses are designed and delivered by security thought leaders from leading companies including Symantec, Wells Fargo Bank, and McAfee
  • Security program includes 30 credits of Information Security classes, hands on labs, and internships with Bay Area companies
  • Class projects include forensics of a pharmaceutical organization that suffered a security breach, securing systems on Amazon Web Services, and developing Information Security strategies

We are now looking to place these graduates into Information Security roles with leading companies and organizations. Contact Mark Egan if you are interested in hiring our students to improve your Information Security programs.