Showing posts with label return on investment. Show all posts
Showing posts with label return on investment. Show all posts

Wednesday, June 22, 2011

Enterprise 2.0 Conference, Day 2: Ming Kwan of Nokia

It was good to actually have a woman presenting a keynote at the general session.  There hasn't been good gender balance here (she is one out of six presenters in this first tranche).  Her presentation focused mostly on how employees can obtain actionable information through internal collaboration, and share that through external social channels.  I wish there had been a few more concrete examples.

Nokia want to get the right information into the right hands at the right time.

They also want to make it actionable.  What can employees do with all of that information?

Their principles include transparency across the organization.  Their company works in 120 companies.
Another key principle is accountability, by having people take ownership and recognition.  
Taking action is another principle.  It's not about the volume of interactions, it's the qualtiy.

Return On Investment

Nokia developed a "social marketing KPI" framework.  It starts with awareness, then moves to appreciation, with highest level of engagement is engagement (action, purchasing for instance). 

Having a set KPI framework gains clarity around the business's performance.  Ideally the new information leads to awareness that leads to action. 

Third Ecosystem

Nokia wants to create a "third ecosystem" with Microsoft (beyond those of Apple, and Google, although she didn't say their names).  In order to do that they will need to collaborate effectively with their partners, including agencies and suppliers.

Nokia's "visualizers" helps managers identify what different teams are talking about (I didn't understand the value of having managers somehow be aware of what are no doubt thousands of conversations going on internally).  Nokia's "Socializer" based on Headshift technology include tasking and pinging. 

Nokia has had internal idea crowdsourcing for a while.  They recently opened up crowdsourcing to the public. 

Enterprise 2.0 Conference, Day 2: Spontaneous Association and Tom Kelly of Moxie and Tony Martins of Teva Canada

Tom Kelly from Moxie Software is presenting with Tony Martins of Teva Pharmaceuticals (disclosure:  Teva is a client of my law firm's.). 

Tom Kelly

Tom Kelly first spoke in somewhat repetitive fashion about how he thought businesses should approach implementing social software. 

The most exciting companies to work at were the one where people are engaged.  The speed at which things are moving has changed in tennis and football just as in our businesses.

Three key elements of any social platform are simple design (simplicity), knowledge, and thought leadership. 

Knowledge is the key part of what we are trying to accomplish.  Knowledge is about sharing what different people know to accomplish a given goal. 

How do you design software for how people work?  People work in groups, on projects.  It must have an interative process to bring innovative ways for people to work.  It should not bankrupt company. 

We do need to integrate into existing systems.  Like Facebook and Twitter, you can add something simple that will let people connect. 

We can change from ""push" model of major enteprise software changes every 18 months to doing something simple (he keeps saying that!). 

Tony Martins

Tony Martins runs the supply chain for Teva Canada.  He started exploring social business in 2005, with Wikinomics. 

The key ingredient is "spontaneous association."  Human beings have an amazing ability to combine their skills to resolve problems.  We are born that way, and can do it as long as we are allowed to.

Teva has used this in the organization. 

There are many changes in regulations, consumer behavior, and the world around the company.  The challenges they are confronting are not what they expected would happen.  For instance, managers at Teva were spending more than half of their time addressing unexpected events. 

A small group of people can come up with solutions much faster than a traditional command-and-control approach where problems are kicked up the organizational chart. 

Provide environments where people can bring their skills together quickly.  Spontaneous association has to happen somewhere.  Over time, Teva found that virtual collaboration spaces (based on Moxie Software) worked well. 

What happened in those spaces was becoming aware of those problems, and leaving it up to the people involved to address.

His most recent experience with business value of this approach was that between January and April of this year (2011), manufacturing cycle time was reduced 40% and reduced face-to-face meetings by 50%. 

He'll be presenting in a workshop later today (with Sameer Patel). 

Enterprise 2.0 Conference, Day 2: Lee Bryant on Social Business Intelligence

I was not able to attend Day 1, except remotely via the live stream.  Today I'm in person at the Hynes Convention Center in Boston, my hometown and base for the Stanley Cup Champion Bruins (sorry, had to slip that in here somewhere). 

Below are my notes for the first set of keynotes.

Lee Bryant of Headshift is first up.

"Social Business Intelligence:  The Future of Listening"

He's talking about data-driven business improvement, the subject of a recent study by Andrew McAfee

The term "Humanizing" the enterprise predates the term "Enterprise 2.0."  All those using wikis, blogs and so forth are generating lots of data.  How can this data be leveraged to help the business?

Some at this conference have already talked about "Big Data" "activity streams" "actionable insight" and mapping social activity to key business KPIs. 

Social business is not just about direct collaboration with others.  We're also interested in using signals and filters to share "ambient intelligence"  

Lee's colleague Dave Gray is a "visual thinking" guru.  He calls small teams with a high degree of autonomy "pods."  Amazon is an example of pods.  No team should be bigger than what you can feed with two pizzas.

Data is not just about aggregate measures, it's about specific insights into how teams behave.

We can leverage the analysis strategies that companies are using to look at consumer web behavior.  The practice of social media monitoring in the past has been too narcissistic--"Do you love me" "Do you like my brand in this place" etc.  We'll see a move to a more intelligence-driven approach.  We should be looking at things the business can change. 

People have been hiring "quants" primarily so far to "get people to click ads."  This is not ideal.  

Google person says that they have the data to predict divorce two years in advance based solely on spending (searching).  It's not about showing off the size of your data (insert NY U.S. Congressional Representative joke here). 

We can learn lessons for approaching data from sports.  Two Red Sox championships were driven by "Moneyball."  People are also starting to map soccer data.  They track kilometers run "at top speed" versus "total amount run" because the former correlates with goals scored.

We need to immerse ourselves in the data.  Insights too often stop at the marketing department, although they might not be in a position to make the changes required.

We need to move to machines that generate signals of key events, and pipe them around the organization, making sense of them with social analaysis.

Social analysis is applying "many eyes" to the data.  How can we stimulate people to take action based on information derived from socially derived information.

Nothing motivates people more than feedback given in the course of the workflow.

He  talked at a very abstract level.  I wish there had been more concrete examples of social business intelligence and analysis in action. 

Tuesday, August 26, 2008

CIOs on IT Payoff and Project Management

Formal Title, Session Link and Slides: CIO Roundtable - Challenges in Demonstrating IT Payoff

Description:

Being asked to demonstrate the business value of IT to your firm management? Join an international group of CIOs from three ILTA member firms for an interactive discussion on how IT service value may be evaluated when compared with leading financial performance indicators. Examples and ideas on determining key performance metrics, measuring and tracking trends, working with firm management to develop financial performance indicators, as well as mapping existing technology to key business processes will be explored.

Speaker(s):

Janet Day - Berwin Leighton Paisner
Peter Bier - Osler, Hoskin & Harcourt LLP
Brent Snow - Baker & McKenzie
David Cunningham - Managing Director, Baker Robbins & Company

The main lesson of this excellent sesssion, moderated by David Cunningham, was that CIOs can use project management implementation to greatly reduce the amount of time and money that they and their staff spend on infrastructure, basic support, and other "plumbing," and should use the resources thus freed up to concentrate on areas that more directly benefit the firm such as business process improvement and lawyer efficiency. In corporate terms, they should try to move from "keeping the lights on" to "Research & Development."

Model of IT Advancement

David lay out a basic framework, adopted from Carnegie Mellon's Capability Maturity Model Integration (R) or CMMI, of five-stage legal IT development. The slides at the presentation and as attached above were essentially illegible, but the basic idea is that IT can be ranked in the areas of people, programs, technology, and facilities, along a sophistication scale. The lower the rank, the more reactive and less proactive the area is. The higher, the more sophisticated the IT business processes and project management implementation. Law firms typically are not above stage three. Most are at stages 1 or 2 in these four areas.

Baker Robbins has surveyed is that law firms fall into three categories. One-third have a “low-cost, high-risk” approach. Only one person knows how to do things, little project management, and so forth. Low cost would be ~$6,300 per employee, a high cost would be ~$14,000.
A second third spends a lot more but is still high-risk because they spend a lot on operations.

The panel is more in the last third, where as firms get more into Levels 2 and especially 3, the IT costs per employee start to come down. Then IT can start focusing on projects. As technology companies mature, PM and quantitative skills start to be more valuable. Reskilling happens more than dropping total head count. They are fighting fewer fires. IP people start to move from infrastructure skill sets to business analysis or Project Management roles.

Janet Day

Janet's firm has very strong business process management. They have binders and binders full of documentation of their business processes and projects. Project management include rigorous change management and measurement of return on investment. Her bailiwick is a little larger than a typical IT director's, and extends to such functions as facilities, know-how (KM), and copying.

The extensive documentation extends to people. Each IT staff person has a publicly exposed career development framework.

These rigorous processes have led to clear documented savings. One example she gave was an office move from one city to another in a foreign country. Where it might have required several IT staff to be present for a few weeks before, now they only had to be onsite for three days, because everything they needed to do was mapped out in advance. Another documented success was the implementation of time entry through mobile devices, which broke even after "29 days" where she was expecting it to do so after six months. ROI there included the 12 minutes (0.2 hours) each attorney had to spend to learn how to use the new system.

She is assisted in measuring ROI by her staff accountant. She also obtains sign-off for large project's proposed ROI from the finance chief.

Peter Bier

Peter ran a professional services firm in the technology space before coming to his current law firm. The IT organization had been focused 95-99% on operations / plumbing. He runs the project management office, which is a separate organization, as well as IT.

He is trying to work at role definitions. The wrong mentality is “I sit at my desk until I get a call.”

He sold the idea of having a chief architect as part of his interview process. He hired one to set up a good process, and develop longer-term vision for IT. His information architect looks at issues like data in more than one place and overlapping functionality. He wanted to make sure that all of the designs were being reviewed by one person. It was harder to sell the position to the rest of the IT team than to get the position approved. It’s a risk management issue for him.
They had data centers in each office, but are centralizing them. People information was scattered in 25 silos, may have been inaccurate in some of them.

They’ve split off some people into a project services team. Some IT staff will be more applications experts, some will become project experts. The project people develop the requirements first and then later get the high-powered tech people involved. People can’t all be involved in all the projects.

He has taken over the intake process on projects. He was able to start pushing back on projects that IT couldn’t do or that didn’t have business value. Some projects are clear & simple to do. It’s better to get out in front of what attorneys are asking for. They have some Microsoft project software. It manages intake, review, approvals, and status reporting after project is complete. They are progressing in IT, but the business side of the firm is moving a little slower.

He’s had to sell the concept that projects are a way of adding value to the organization. People take a long time to get this, and are used to working in the old reactive way.

He thinks that law firms are behind corporate America in incorporating architecture and project planning into their work.

All the managers and directors have been sold on project management skills, and took 5 2-to-3 hour project management classes (10-15 hours).

The Project Management Office is one person. Project Management is embedded in every project. Each “large” project has a dedicated project manager.

Brent Snow

The global Baker & McKenzie operations does an audit of each area every few years. They’ve centralized information management on a global basis. It has worked really well.

They are using Sharepoint to develop workflows. Staff intake and departure processes are both getting set up in Sharepoint.

He gave as a sample facilities project their server virtualization project that started in January 2007. (They moved from a level 2 to level 3 on the CMMI scale). They needed to scale up staff to support virtualization, and hired staff with experience in that process and invested up front in lots of training. It was hard to measure time-based ROI because the “virtual” servers are all mingled together on hardware. There were clearly saving financial benefits and attained a 10:1 server ratio, whatever that is.

Another benefit was 83% power savings. They develop data on carbon footprints, but Brent couldn't reveal how the calculations were made.

His office virtualized every server but those for Elite and DMS. They have virtualized their SQL databases.

Brent developed his own office's project management complete with dedicated project coordinators. Project sites set up in Sharepoint. Things are centralized in one place. They’ve sent all management staff to project management training. PM is getting pushed onto IT. One person oversees tracking of all projects, but the project coordinators are responsible for the projects.

This was an outstanding session, with real CIOs talking about real issues they faced and overcame. I called my firm's resident project manager into this session from another one, and he was quite happy that I did so, even though he only caught the last 40 minutes.