Business Technology Roundtable by David Deans
October 22, 2008
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The structured approach of Business Technology Management (BTM) is a proven methodology that seeks to unify business and technology decision-making at every level within a company.
Originally conceived to address the needs of large enterprises, there are now very apparent benefits for both small and medium sized businesses. Let's consider the growing body of evidence that supports that business case.
Put simply, BTM is applied to ensure that a company's business strategy can be realized by the technology it deploys. This approach is used by business leaders to align, synchronize and even converge technology and business management for the purpose of ensuring better execution, risk control and profitability.
The Path of Total Convergence
Clearly, these are the type of guiding principles that should transcend all businesses, regardless of their size. Let's explore the meaning of those three states of progression.
Alignment is defined as a state where technology supports, enables, and does not constrain the company's current and evolving business strategies. It means that the IT function is in-tune with the business thinking about competition, emerging threats and opportunities.
Synchronization implies that business technology (BT) not only enables execution of current business strategy, it also anticipates and helps to shape future business models and strategy. In this state, BT leadership, thinking, and investments may be ahead of business needs.
The state of Convergence includes both alignment and synchronization, with technology and business leadership willing and able to operate simultaneously in both spaces. Essentially, the disciplines have merged in both the strategic and tactical senses. A single leadership team working together to orchestrate one intertwined agenda.
A Business Impact Case Study
Does this seem like an academic exercise? Consider the following facts, and then you decide.
According to the BTM Institute, in research covering 50 industries, companies with a more converged business technology management exhibited superior revenue growth and net margins relative to their peer group:
- 12% average annual revenue growth vs. 4% for their industry groups.
- 36% average annual earnings per share growth vs. 7% for their industry groups.
Not only did these companies grow at a faster pace than their peers, but they also exhibited consistently greater returns than those of their competitors:
- 6% higher EBITD margins than those delivered by their industry groups.
- 4% average higher return on equity, 8% average higher return on assets and 14% higher return on investments.
Therefore, perhaps the most important question is not whether you should strive for BT convergence, but how will you be able to compete with those companies that have already evolved to that state? It's something to think about, as you consider your next steps.
Source: Business Technology Roundtable
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October 16, 2008
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Without a doubt, the reason why most business decision makers consider an out-tasked solution -- based upon a managed service offering -- is still primarily the need for cost-reduction.
Clearly, that's a valid motivation for any business leader. But, it's only a part of the inherent benefit that can be attained by choosing to play this particular game with a very different set of rules.
Ask yourself, if your IT organization can rarely find the time to invest in meaningful business innovation activity, then shouldn't you consider the common reasons why -- and seek out the proven methods to proactively apply an alternative approach?
Innovation stuck in a holding pattern
According to a Forrester Research market assessment, a fundamental "lack of time available to invest in innovation" is one of the main reasons given by CIOs and their staff to explain why they're unable to participate in substantive new business impact activity.
In reality, they're consumed by routine IT operations and associated voice and data network management work. Better project management practices can ease the load, since adding new headcount to the team really isn't an option for many companies.
However, tweaking the current model rarely delivers significant results, because most IT teams have diligently squeezed every single ounce of efficiency from their daily routines.
Granted, sometimes the only way to gain a quantum leap in effectiveness is by applying a totally different model. Also, we already know what the typical "wait and see" attitudes will likely deliver. Enough said.
A profound new way of thinking
Therefore, people who have chosen to deploy a managed service solution have, in essence, taken themselves off the treadmill of perpetual drudgery by applying swift and decisive action.
No longer victims of legacy-thinking about how their IT role should function, they've evolved. Now, they're on a new path of creative Business Technology (BT) enlightenment, by choice.
Imagine what your traditional IT team could accomplish, if only they had the time. Better yet, now take the first step towards enabling them to gain the freedom to fuel their business technology innovation ideas that have been placed "on-hold" for way too long.
Source: Business Technology Roundtable
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September 14, 2008
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Today, the application of technology is an integral part of most businesses – in some shape or form.
However, while many decision makers are now primarily concerned with using technology to pursue new business opportunities, and gaining business-related capabilities is their main objective, the vendors and suppliers that they encounter sometimes don't speak the same language.
Matching buyer's business needs with technology vendor's offerings is sometimes referred to as the business/technology alignment chasm. Filling that void with substantive information, meaningful guidance, and compelling "how-to" storylines is the charter of the Business Technology Roundtable (BTR). We seek to shed light where there has been an apparent absence of editorial illumination.
A business technologist -- perhaps a new term to some -- should be focused on driving business technology adoption, rather than purely the acquisition of new systems.
They should also value delivering business results promptly, instead of merely applying inventive product features and functions. Once informed, they'll likely crave low-cost integration into existing business processes, pay-as-you-go pricing, and efficient knowledge transfer.
Given this backdrop, new business technology adoption is often more dependent upon changing behavior than the common prior scenario -- changing underlying technology.
Within this new scenario, the insights and recommendations of trusted peers and independent subject-matter experts supersede all others in the process of choosing a justifiable approach, and supporting key business decisions.
As the co-authors of BTR, we will be on the lookout for resources -- plus proven and repeatable processes -- to speed-up the shift to subscription-based business technology offerings. We'll also highlight the competencies required to enable the facilitation of adoption education and acceleration.
A Call to Action
We invite you to join us in an exploratory dialogue about managed Business Technology services, and welcome contributions of your ideas and associated expertise, as we embark upon this journey together.
Business Technology Roundtable
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