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brenda michelson's technology advisory practice

New BEI Podcast: Faisal Hoque on the Power of Business-IT Convergence

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Faisal Hoque, Founder and Chief Executive Officer, BTM Corporation, spoke on The Power of Convergence: Why Bringing Business and Technology Together Matters, at the March 2010 Business Ecology Initiative Symposium in Jacksonville FL.   

Hoque set the stage with the startling fact that only 74 of the original 500 firms remain in the S&P index just 40 years later.  The frenetic pace of business has reduced the enterprise life expectancy.  The response has been a call for agility.  Referencing research of the BTM Institute, Hoque stated that agility is achieved through repeatable management processes.

The components of agility are flexible organizational constructs and behaviors, standards for enterprise architecture, including business architecture, a portfolio investment approach that is structured to balance between stability and agility, and a governance model that facilitates horizontal and collaborative decision making processes.

Of the flexible organizational constructs and behaviors, Hoque focused on business-technology convergence.  Unlike business-IT alignment, which is essentially communicating silos, business-technology convergence features intertwined business and technology activities, dedicated to driving superior financial performance.

With the agility and business-technology convergence context set, Hoque walked through the BTM management practice framework, including the 17 capabilities required to achieve convergence. 

In addition to discussing the practices, Hoque shared metrics and trends from the hundreds of organizations who have utilized the BTM measurement tools over the past 7 years.  A critical finding is a correlation of management practice maturity and corporate growth and financial returns – stock price, earnings and margins.

Click here to listen to an audio recording of Hoque’s presentation and view the slides.

 

[Disclosure: The Business Ecology Initiative is a client of my firm, Elemental Links.]

Announcing 2010 Case Study Contest: Business Agility and Process Optimization enabled by BPM & SOA

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The BPM/SOA Community of Practice (CoP), in partnership with BPTrends and TechTarget, is sponsoring the “Business Agility and Process Optimization enabled by Business Process Management (BPM) and Service Oriented Architecture (SOA)” Case Study Competition. The competition is open to organizations of all sizes, including government agencies, which have successfully delivered business or mission value using a BPM, SOA or combined BPM-SOA approach.

Similar to the SOA Consortium’s contests in 2008 -  2009, the goal of the BPM/SOA Case Study Competition is to highlight business success stories and lessons learned to provide proof points and insights for other organizations considering or pursuing BPM, SOA or combined BPM-SOA adoption. To qualify for the competition, the project must be complete with demonstrated business results.

Entries will be judged on the complexity of the business problem addressed, the ROI/Business Value achieved (Agility/Innovation/Flexibility/Optimization/Resilience/Service Delivery), the level and sophistication of the cross-organizational collaboration (Business/Technical) and the usage of BPM/SOA approaches and supporting technology. In addition to one overall winner, organizations will be recognized by industry/government.

Case Study Competition winners will be announced at the BPM/SOA CoP meeting in Cambridge MA on September 21, 2010 and will be featured on the BPM/SOA CoP website and in October publications by BPTrends and TechTarget.

Visit the contest homepage to learn about the guidelines, peak at the application, and meet the judges.  Submissions will be accepted through June 29, 2010.

 

[Disclosure: The BPM/SOA Community of Practice is a client of my firm, Elemental Links.]

BEI Overview Presentation: Answers to Top 4 Business Ecology Initiative Questions

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The following is cross-posted from the Business Ecology Initiative blog. Not only does it answer BEI questions, but also (indirectly) explains my “quiet period” in late March.

At the end of March, I had the opportunity to present an Overview of the Business Ecology Initiative (BEI) to two important constituencies. The first group was a cross section of BEI and BPM/SOA Community members. The second group was the OMG Board of Directors. The presentations answered four questions:

  1. What is Business Ecology?
  2. What is the Business Ecology Initiative (BEI)?
  3. What is the relationship between OMG’s Practice Area Communities and BEI?
  4. What is the relationship between OMG’s Practice Area Communities and Technical Standards Communities?

Obviously, for individuals already involved in BEI, portions of the first two sections were familiar. However, as our community grows, it is important for everyone to have a shared understanding of what Business Ecology is, and is not, the value of Business Ecology adoption, and the purpose of BEI. The short answers:

1. What is Business Ecology?

Business Ecology is a business-technology imperative focused on streamlining business processes, removing waste from technology portfolios, and adjusting resource consumption, to optimize business operations and foster business innovation.

As the world economy emerges from a painful recession, organizations are confronted with the challenge of retaining bottom-line diligence, while pursuing market sustaining and gaining innovation.

For many organizations, the answer lies in harvesting savings and trapped value from existing processes, resources and capabilities. To accomplish this, organizations are turning to Business Ecology.

Business Ecology is not a one-time fix, but rather a management philosophy concerned with business vitality over time, balancing current conditions, optimization and innovation focus areas, resource allocations, and longer-term business motivations, capabilities and outcomes.

An important enabler of Business Ecology is the use of technology beyond automation. Business Ecology practitioners employ technology to identify, measure, model and drive business change.

2. What is the Business Ecology Initiative?

The Business Ecology Initiative provides education, advocacy and member programs to enable organizations to achieve Business Ecology success, employ Actionable ArchitectureTM, and carve a path to business-IT integration.

For the longer answers to questions 1 and 2, see this Business Ecology: Optimization for Innovation post, and/or, the presentation deck on slideshare.

3. What is the relationship between OMG’s Practice Area Communities and BEI?

Starting with the founding of the SOA Consortium in 2007, OMG has been actively managing and promoting Practice Area Communities. In general, these communities, or CoPs, are advocacy groups comprised of practitioners, service providers and technology vendors, dedicated to promoting the business value, and enabling the successful adoption, of specific, key business-technology strategies, by the Global 1000, major government agencies and midmarket businesses.

Currently, the OMG has four Communities of Practice (CoPs). Two, BPM/SOA and Green CIO are established communities. Two, Event Processing and Cyber Security, are newly forming.

Each of these CoP topic areas – BPM/SOA, Green CIO, Event Processing and Cyber Security – are enablers of Business Ecology. [see diagram] Thus, the CoPs are Practice Area Communities of the BEI. By federating the Practice Area Communities under BEI, members can benefit from, and contribute to, a common Business Ecology body of knowledge, including a federated practice collection.

4. What is the relationship between OMG’s Practice Area Communities and Technical Standards Communities?

Since the BEI and Practice Area Communities (CoPs) are managed by OMG, we receive this question a lot. The Practice Area and Standards Communities have common interests and do interact. However, the CoPs have NO role in standards creation. As well, activities of the CoPs are not bound by OMG standards.

The interactions are as follows:

  • Practice Area Communities may consume OMG standards
  • Practice Area Communities may surface the need for new OMG standards
  • OMG Task Force members (standards creators) may solicit requirements from Practice Area Communities
  • OMG Task Force members (standards creators) may provide standards information and education to Practice Area Communities
  • Practice Area Communities and OMG special interest groups (not standards creators) may share topical interests

The full presentation deck, including details on the individual CoPs, is available on slideshare. Please note, as a result of community discussion, the Business Ecology Context diagram used throughout the presentation was revised. The most recent version is above, not in the March 23, 2010 slide deck.

If you have any questions on Business Ecology, BEI or the CoPs, please let me know.

[Disclosure: The Business Ecology Initiative is a client of my firm, Elemental Links.]

Counterintuitive: Creative Agency + ISO 9000 = Creativity Increase

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The Van Halen brown M&M anecdote wasn’t the only interesting piece in the March issue of Fast Company.  I also found a good example of "optimization for innovation”, which I first wrote about on the Business Ecology Initiative blog.  The article, entitled Partners in Time, describes how Partners & Napier, a Rochester, NY based creative agency, streamlined its processes at the request of Kodak, resulting in increased productivity, billings and creative time for the agency, as well as cost savings for its clients. 

How did they do this?  By mapping out processes, to identify and remove wasteful steps and interactions.  According to the article, Partners went “all in, applying for and earning certification in ISO 9000, a quality-management system akin to Six Sigma that’s normally used by manufacturing companies.”

Initially, the idea of applying process rigor to a creative business was met with skepticism:

"A creative embracing quality management may be unusual, but it also may be the model for how to handle clients’ increasingly stringent ROI demands.  When Kodak first asked us to do this, people worried that no one understood how long it takes to get to a great idea," concedes Partners’ CEO Sharon Napier. Chief creative officer Jeff Gabel says the opposite has happened. More often than not, Gabel says, creative work resembles a "giant hair ball." And that’s fine with him. "You don’t want to straighten it out," he says. "It’s nonlinear, illogical, and often occurs at unpredictable hours." But, he says, if the time allotted to a project could be rejiggered so more time went to creating great ideas — and less against the job’s ancillary grunt work — then he was game to try.”

The certification process and initial results:

“The certification process took six months and required each step of an assignment, from developing a brief to reviewing final work with the client, to be documented. It cost roughly $20,000 out of Partners’ pocket, but it revealed some surprising inefficiencies, including a lot of time wasted in back-and-forths for approvals of briefs, concepts, ideas, and directors. Partners was able to trim the time on a job from eight weeks to three, save the client approximately 40%, and boost productivity by 3.5%.”

The on-going impact:

“…its creative output seems to have blossomed as a result, as the agency is increasingly turning out higher-quality work, it says, in significantly less time.”

“Partners has been so happy with the results that it now uses the same approach with other clients. It’s winning more business because it can jump on opportunities once dismissed due to time constraints. Its billings have grown 300% in the past five years.

Still, the process is not without its flaws. All that hyper-efficiency can be exhausting, Gabel admits: "You’ve removed your slop factor."”

As you consider optimization opportunities in your organization, don’t limit yourself to traditional operational areas and boundaries.  Nor, fall victim to the “optimization = automation trap”.  Think about your creative types, strategists, and knowledge workers.  How can their work time be “rejiggered” to focus on value creation activities?

 

[Disclosure: Cross-posted from the Business Ecology Initiative (BEI) blog.  The BEI is a client of my firm, Elemental Links.]

BPM and SOA: Connected for Business Optimization

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Ok, I admit, the only person who thought I wouldn’t be continuing, in some capacity, with the merged BPM / SOA Consortium was me.  Apparently, I was wrong.  In addition to writing and advocacy for OMG’s Business Ecology Initiative, I have a new consulting relationship with the practice area communities, including the BPM / SOA-C, and two more to be announced.  [Here’s a hint on one.  As if I could say no!]

Anyway, moving on topic.  Since January, the BPM and SOA Consortiums have been working together to formalize the merged consortium’s mission, goals and objectives, identify some early projects, plan the March Symposium, and combine web properties. 

The results of that work, cross-posted from the newly combined (and spiffed up) BPM / SOA Consortium Insights, follow.

Who is the BPM / SOA Consortium? 

The BPM / SOA Consortium is an advocacy group comprised of practitioners, service providers and technology vendors dedicated to promoting the business value, and enabling the successful adoption, of Business Process Management (BPM) and Service Oriented Architecture (SOA) by the Global 1000, major government agencies and midmarket businesses.

The BPM / SOA Consortium is a practice area community under the Business EcologyTM Initiative (BEI).  BEI provides education, advocacy and member programs to enable organizations to achieve Business Ecology success, employ Actionable ArchitectureTM, and carve a path to business-IT integration.

Business Ecology is a business-technology imperative focused on streamlining business processes, removing waste from technology portfolios, and adjusting resource consumption, to optimize business operations and foster business innovation.

The BPM / SOA Consortium is a newly expanded community, connecting the members and sponsors of the SOA and BPM Consortiums, to focus on business optimization.

Why did the BPM & SOA Consortiums merge?

The 2010 merger of the SOA and BPM Consortiums is based on the following premises:

  • When the SOA Consortium began, Service Oriented Architecture was more of a fringe methodology that only a few organizations were doing with any great success, rather than an accepted part of an overall business strategy. Three years later, corporations large and small use the principles of SOA to enhance their overall business and technology strategies.
  • A well-implemented Service Oriented Architecture leads to streamlined technology portfolios, improved resource sharing, better defined business capabilities, and ease of capability introduction or change.
  • A well-implemented Business Process Management initiative leads to greater business agility, faster productivity and improved customer interactions for all stakeholders.
  • The combined use of Service Oriented Architecture and Business Process Management results in an optimized business environment that is change-friendly, and poised for business innovation.
  • Business and information technology professionals must collaborate to realize the highest yielding benefits of Business Process Management and Service Oriented Architecture.
  • Enterprise and government practitioners would benefit greatly from a vibrant practitioner community to exchange insights on use cases, challenges and techniques, related to Service Oriented Architecture and Business Process Management, used individually, or combined.
  • Business Process Management and Service Oriented Architecture, individually and combined, enable Business Ecology.

And now, the go forward organization.

BPM / SOA Consortium Mission

Promote the value and adoption of Business Process Management and Service Oriented Architecture as a means for organizations to optimize business operations, increase agility and streamline portfolios.

BPM / SOA Consortium Goals

The BPM / SOA Consortium is working to achieve the following goals by 2013, that:

  • 75% of the Global 1000 and 50% of mid-sized businesses combine Business Process Management and Service Oriented Architecture to optimize business operations, streamline portfolios, and create a change-friendly business-technology environment.
  • 75% of Major Government Agencies combine Business Process Management and Service Oriented Architecture to optimize mission operations, streamline portfolios, and create a change-friendly business-technology environment.

BPM / SOA Consortium Objectives:

  • Shift the conversation from competing strategies to combined business value (business optimization)
  • Provide education on business analysis, process design, governance, performance measurement and implementation techniques to combine Service Oriented Architecture and Business Process Management for business optimization
  • Showcase Business Process Management and Service Oriented Architecture success stories, benefit realization, best practices and lessons learned
  • Raise the Business IQ of information technology professionals and Tech-Savvy of business professionals to realize the greatest business value from Business Process Management, Service Oriented Architecture and business-technology
  • Create a vibrant practitioner community for the exchange of insights on use cases, challenges and techniques, which will assist in value attainment, and spur broader, industry-wide Service Oriented Architecture and Business Process Management adoption.

Visit our website to learn about BPM / SOA Consortium membership and sponsorship.  Check out the agenda for our upcoming public symposium in Jacksonville Florida.

 

[Disclosure: OMG, via its Business Ecology Initiative and practice area consortia, is a client of my firm, Elemental Links]

Brenda M. Michelson

Brenda Michelson

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