Archive for April, 2008

Café Innovation – Is investing in Innovation a luxury or necessity?

Thursday, April 24th, 2008

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]

I picked up the April 28, 2008, issue of the Business Week the other day and found that the cover story was an intriguing read around the “Most Innovative Companies.” It listed 25 companies as the most innovative ones for 2008 (a Business Week-Boston Consulting Group ranking). While reading this it occurred to me that we should have a discussion around, what can be termed, the Innovation Imperative. Why do companies need to innovate? Is innovation a luxury that can only be afforded by the darlings of Wall Street to better position themselves vis-à-vis the competition, or is it something that should be a key aspect of any enterprise’s strategic plans?

In the above referenced article, Jeff Bezos, the CEO of Amazon.com (ranked number 11) was interviewed, who said that in his view “there’s no bad time to innovate.” Interestingly, he also added that “frugality drives innovation.” To me this means that he has placed a challenge before companies to find ways to embark on innovation “when times are good and when times are tough” thus debunking the notion that innovation is a luxury to be availed of only when there are ample available resources.

So how should a company go about identifying resources to dedicate to innovation initiatives? What does it mean to look for a frugal but prudent approach to innovation? How can an enterprise free up resources to make the investment? What is the winning argument for doing so in an economic downturn? I invite you to join in with your views.

P.S. I will return after the annual SAPPHIRE-ASUG 2008 event in May.

– Puneet Suppal [Enterprise SOA Solutions & Innovation – Capgemini]

Café Innovation – Going beyond IT-Business alignment and integration

Sunday, April 6th, 2008

[Cross-posted from SAP Community Network: Puneet Suppal’s SAP Network Blog ]  

This year the SAP Insider conference on SAP NetWeaver – BI and Portals was in Orlando, and not in Las Vegas. The venue was different but the fervor of the participants was much the same. In the two sessions I delivered (How to Evolve from an IT, Application, or Business Consultant to a Business Process Expert, and A Guide to New SAP NetWeaver Capabilities for Improving the End- User Experience), I found that there was a very strong interest among practitioners and their management alike in furthering a culture that understands the needs of users and focuses on business processes. In my interaction with the attendees, I found an acknowledgement of the fact that the existing IT-business divide in their organizations needs to be bridged for good.

Interestingly, I find, this subject is increasingly gaining traction.

In the March 10 issue of the Wall Street Journal, Amit Basu and Chip Jarnagin speak about the “wall between a company’s information-technology department and everything else,” and that it must go (“How to Tap IT’s Hidden Potential“). The article holds out IT-Business alignment as the key to success. Similarly, in the Best Practice feature of the March 2008 issue of the Harvard Business Review (“Radically Simple IT“), authors David M. Upton and Bradley R. Staats have hit upon some very key aspects with respect to the working dynamics between IT and the Business. I agree with them that IT strategy and Business strategy need to be more closely tied than being merely aligned, and that the interaction between IT and business groups need to be such that “the two sides gradually come to speak the same language.” In my opinion this hints at IT-Business integration of sorts. However, the need of the hour is that enterprises look to push this further. The world of systems implementations will increasingly be characterized by the dominance of services oriented architecture (SOA), and, as I have often said, this demands that more attention be paid to business processes and the people who must deliver them successfully.

For success in the evolving SOA world it is not sufficient that IT and Business groups interact well, and that IT and Business strategies have been forged together. Organizations need to go a step further. They need to go beyond IT-Business alignment and IT-Business integration – they need to focus on assimilation of IT expertise within the business, and the assimilation of business process knowledge within IT. In other words, organizations need to move their workforces toward adopting more holistic views of the technology solutions that aid the end user in operating on a daily basis. This is where the notion of a true business process expert comes in. We have to accept that the business process expert is central to the scheme of things going forward!

– Puneet Suppal  [Enterprise SOA Solutions & Innovation – Capgemini]