EXPLOITING THE BUSINESS VALUE OF ADVANCING TECHNOLOGY

by Ian S. Hayes

 

One of the many roles of a modern IT organization is finding and introducing new technology that enhances its parent organization's business objectives. When properly executed, this role enables IT to bring real bottom-line value to its parent by enabling breakthroughs in products, services, operational effectiveness, and/or competitive differentiation. To be successful in this role, the IT organization must have:

  • A strong understanding of its business, to recognize opportunities that could be served by advances in technology
  • A working knowledge of available and developing technologies
  • An ability to think "outside the box" to apply technology ideas in new, creative ways

Unfortunately, with some notable exceptions, most IT organizations perform unremarkably in this important assignment. A combination of conservatism, lack of research capabilities, and incremental thinking serves to limit IT's ability to extract the full value of new advances. In addition, when they do invest in technology research, IT organizations tend to focus on the "nuts and bolts" of new technology (for instance, should Java be the standard for new development?) rather than the application of that technology to specific business opportunities. As a result, innovation is left to startups and technology companies, and IT organizations play a perpetual game of technology catch-up.

Given the potential business benefits offered by new technology, IT organizations can significantly raise their value and standing in their companies by enhancing their technology evaluation capabilities.

Gain a New Perspective on Technology Evaluation

View new technology from a business perspective rather than an IT delivery perspective. For example, each breakthrough in wireless capabilities provides mobility to a new range of business functions. Which functions would benefit most from this mobility? In addition to monitoring new, unforeseen advances, proactively seek ideas that will become possible in the future through expected advances. For instance, when third-generation wireless technology arrives, its greater bandwidth will allow a company to offer its sales force real-time access to customer information during sales calls. Planning for that capability in advance allows faster rollout when increased bandwidth becomes available and enables a company to realize benefits well ahead of its competition.

Create an Applied Technology Research Group

Capitalizing on the business capabilities offered by new technology is too important to be a part-time assignment. Although IT organizations already have resources dedicated to examining the implications of technology on standards, formal architectures, and development processes, these groups are IT focused and technically driven. Launch a separate group focused on researching the business implications of the technology.

Staff the Group with Open-Minded Business and Technical People

To be successful, the group must be unafraid of challenging the status quo. Mixing deep business skills with technical expertise increases the likelihood of identifying major value-adding opportunities. Make sure to select individuals capable of high-level thinking.

Develop Breakthrough Thinking Skills

Although many great ideas arise from fortuitous realizations, learning and applying "breakthrough thinking" techniques will increase the odds of having these realizations. Overexposure to corporate politics and societal limitations leads people to unconsciously apply artificial constraints to problem solving. As shown by the recent Internet revolution, breakthroughs come from individuals willing to think outside the box.

Invest in Research

In an era of high-technology complexity coupled with information overload, it is increasingly difficult to sift through an overwhelming volume of articles, brochures, and vendor presentations to identify promising advances. All too frequently, hype exceeds actual capabilities, challenging the group to find technologies that will work in practice. Although information is freely available over the Internet, quality and (unbiased) analysis are not. To ensure all bases are covered, the research group must invest in a combination of analyst research, conference attendance, and development of its own analysis skills. Techniques for effectively conducting research will be a topic for a future Advisor.

The potential business value of an applied technology research group is almost impossible to overstate. Imagine if Barnes and Noble had launched online book sales ahead of Amazon.com, the *New York Times* had developed a portal before Yahoo, or Christy's had decided to offer online auctions ahead of eBay? Technology advances will create many more opportunities in the future. Will your organization be ready to capitalize on them?