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Home Best Practices Finance Humor Rants Observations IT Procurement Transformation Trending The Beat, Emerging Tech: Cost Reduction's New Landscape (Part 3) - Implementation

Faris Jebara on Thursday, April 12, 2018 Best Practices, Finance, Humor Rants Observations, IT, Procurement Transformation, Trending, PART 3: Emerging tech's new landscape on cost reductions has seen a major impetus... Implementation. We are tending to see loads of unrealized value in new technology, not because of  the skills gap or because of there being no foreseeable application/value etc etc. But because we fear the implementation....

Key Industry Trend:  Digital Trends Polled  Corporate IT Groups and found on average that there is a 45% spread between the proclaimed value on a technology and the implementation of the said technology.  Stating: “  big data, for example, 90% said it was relevant to their business, 64% said it was being applied in their industry, but only 39% reported it being implemented in their own business. Artificial intelligence was ranked as relevant by 50%, applied in their industry by 25%, but implemented in their own companies by only 8%. The Internet of Things had 70% saying it is relevant, with 50% citing industry applications, but a mere 30 % use it in their own business.”
Moreover, Operations/Procurement groups advised that “83% of those surveyed believe digitization will profoundly impact their business, only 5% have highly automated processes in place.”

Somewhere along the lines there is a massive gap, between the factors of value, current industry application, and implementation, at Source One we like to call this the Negative ROI gap. <Risk of Implementation>, also very closely related and I think the first cousin of CYA, Covering your own A**.. While we need more of the Michael Scott's office mentality (the office reference where ever possible.. always) in us, IT leaders seem to think “you don’t miss any shots if you don’t take any” Who can argue with that -___-.  Other than anyone who has started anything, ever.
We get it, it’s comfortable, and you do not need to do anything different, just continue to lose market share through decreased profitability and lack of innovative optimized revenue streams. No. Big. Deal.
An organization that is more risk averse and sits on a conservative 3 to 5 year review on technologies, faces the Negative ROI Syndrome which comes with resounding defeats or tie games; such would a soccer team with 11 defenders. And in business if you’re not winning, you’re losing.
Current Soccer Positions for the Vast Majority of Organizations: Defenders, IT Directors: Maintaining Current Processes and Systems. And more Defenders: Out of Sourcing and Finance, reacting to the requests whether budgetary or technologies/service providers.
Ideal Organizational state:
Your only defenders should be in IT Daily Operations.

Forwards: The most crucial role, decide where the change occurs, how it occurs and what we might change to. Meet your Sourcing Professionals and IT Management, these folks need to sit outside of  IT daily operations, making sure that the new technological initiative propels forward and will position toward a more productive and efficient environment utilizing these very technologies with perceived value, otherwise there is risk of bias’s.

Mid Fielders: These players create balance, playing both defense, for the way things currently are, and offense, asking the question simply, should change occur? Meet your Corporate Finance Professionals/FPA folks, assessing the practicality of the new technologies via their financial instruments.
Simple enough concept: it takes both the defense and the offense to win the game, attain "the save/efficiency increase in productivity etc, to be more competitive in the respective industry...or conference ;).




 Faris Jebara



