Light Bulb Interview Series - Jeff Kennedy - Part 2

Welcome to Part 2 of the the interview with Jeff Kennedy - from the University of Auckland. The 2009 Light Bulb Effect interview series will cover a number of influential Enterprise Architect's focused around 3 key areas:

1. Major Trends in EA - Posted 11-March
   
2. Working in the New Business Climate
3. Hot Topics for EA

Light Bulb Effect Interview
Part 2 - Working in the New Business Climate

MC: A lot has been discussed regarding the new business climate how do you think today's Enterprise Architect needs to adapt?
JK: Positioned as it is between the firmaments and the business, a solid Enterprise Architecture practice has become essential for businesses hoping to survive the tough new business climate. Bear in mind that this tough new business climate is going to start being alleviated by regrowth sometime in the next year or two. Under these conditions, best practice, modern, lean, consultancy-based, framework-light Enterprise Architecture has become completely non-discretionary because assisting enterprises to govern innovation, achieve reuse, promote solution patterns, and exploit new technologies is completely front and centre.

MC: So in the new economy how do organisations need to adapt?
JK: Percentagewise, most organisations spend relatively little on information technology when compared with the cost of labour, the cost of advertising, and the cost of sustaining the supply chain. Here, too, Enterprise Architecture has a huge role to play in identifying opportunities for cost optimisation and in exposing data, logic, and process from existing application assets. Enterprise Architects can also add considerable value in non-traditional domains, simply by bringing an architectural approach to understanding business opportunities.

MC: What considerations need to be made between CAPEX vs. OPEX when designing solutions?
JK: The CAPEX-vs-OPEX distinction is seriously challenged by the sensible rise of agile and iterative delivery methodologies over the acquiescence of forty-year-old waterfall-based methodologies. Waterfall-based delivery of business functionality constantly confuses the essential difference between requests for new features, bug-fixes, and business-as-usual maintenance. This confusion renders the CAPEX-vs-OPEX split meaningless in traditional waterfall-based delivery methodologies. Where there is a true OPEX payload carried by new business functionality (e.g., in association with maintenance-and-support agreements with vendors, or where a new solution requires additional operational staffing) then the OPEX clearly belongs. However, in an environment that is increasingly rooted in the principles of Service-Oriented Architecture, the concepts of reuse are very challenging to traditional models of project funding. Funding from a build-for-change-and-reusability perspective is conceptually very difficult to fund from a build-for-forever-and-single-beneficiary perspective.

MC: What advice would you give to a new IT graduate entering the industry in 2009?
JK: Get started as soon as possible, put your hand up for challenging work, think about the long term, and focus on being the best person there is at being who you are (else somebody else will come along and do a better job of being who you are, and you will be replaced). Most every commentator is offering 2009 as a hard and difficult year, but from the perspective of a new graduate coming into the industry at this time it is a brilliant opportunity-laden year for establishing a solid reputation and consolidating the skills earned through tertiary training.

MC: What skill sets should a new IT Graduate focus on?
JK: The number-one skills to focus on are not necessarily pure technical skills, but are instead based around problem-solving, qualities of communication, and a hunger to learn. Within the IT industry it is unusual to find a job that exercises one's training directly. It's much more important to have solid techniques for analysis, for creating and following patterns, and for designing and coding in increasingly well-socialised and increasing collaborative styles. Innovation, courage, and being full-architecture-stack capable provide the basis for an excellent career.

MC: What changes have you noticed in the IT Eco-system over the last 5 years?
JK: The rise of Service-Oriented Architecture and the rise of virtualisation are the greatest forces of change that have affected the industry in the last five years. The massive social networks based a, round platforms like Twitter and MySpace and the rise of mash-ups and their appearance in the enterprise also offer transformational opportunities.

MC: What changes do you envisage over the next 5 years?
JK: In the next five years there will be massive uptake in and improved models for local-to-the-enterprise and on-demand cloud-based computing. At all levels of the architecture stack there will be much-increased federation, with widely-supported formally-adopted industry standards. Notions of user-centric identity will become much more real, and much more.

End of Part 2.

Once again thank you Jeff. Keep an eye out over the coming days for Part 3: Hot Topics in EA soon...

10 Strategies for Doing Business in a downturn

I was having a conversation with Michael Counsel (Senior Director, APAC Solution Engineering) regarding what advice he would give organisations in the current economic down turn. The view was first and foremost that organisations need to “stay in business”, but what he highlighted was 10 key areas that every organisation should evaluate in this difficult and uncertain economic climate:

1. Acquire Market Share - The number one strategy is making sure you continue to not only maintain and grow market share in your revenue generating business areas or revenue centres, but look for opportunities to acquire market share in new markets during the downturn. Get more customers and in wider markets provided you can sustain supply costs.
2. Look for Acquisition Opportunities - The downturn will drive some companies to the wall. Many become bargain priced for acquisition. If you have the means, this can be an outstanding strategy which can turn medium to large players into corporate giants when the market rebounds.
3. Opportunity to Fix Business Process - Loaded processes are hard to change in confident times and less efficient pieces are hidden in the profit margin and good revenue you enjoyed. This is an ideal opportunity to take what you knew needing fixing in a business process…and fix it. You will not only profit from the operational savings in the downturn, but the increased margin when the market rebounds.
4. Automate the Commodity Operations - Convert commodity operations which require human labour into automated business processes and services. You will need to be careful not to inadvertently wrapper a differentiating or competitive advantage process inside a commodity automation initiative.
5. Offload High Cost/Risk Customers – Analyse and understand your customer base and work out which customers are costing you money. Off load these to your competition
6. Double Investment in Innovation - The worst mistake you can make is cutting innovation in your business. Work out what differentiated you before the downturn and will still be in effect when the market picks up. Harness creative talent in your organisation to adjust and adapt quickly at the next upturn. Organisations that increase their competitive advantage and differentiation have been proven to get earlier and more rapid revenue growth in the next upswing.
7. Watch Your Suppliers - Remember in downturn, your key suppliers may go out of business and Supply chain response time can be deadly on the recovery if you are looking to rapidly get product to market. This time may present an opportunity to vertically integrate and make sure you can meet production levels on the way out of recession. Which in turn build that platform for greater profits
8. Re-platform your IT Operations - Use the opportunity to re-platform IT infrastructure to lower cost platforms and commodity computing. Take an inventory of existing applications and decommission, consolidate and virtualise where possible. Take the opportunity to rebuild and modernise key pieces of infrastructure which creates long term resilience and connectivity, while also improving functionality. Organisations should be vigilant on maintaining software and hardware currency by upgrading disks, servers and software on regular timeframes - not doing this can have disastrous medium to long term impact as outlook improves.
9. Adopt a Shared Services Strategy - Find ways to lower the cost of operations for commodity or corporate services that help you run your business, eg ERP/Back office processing. These are generally not the core business/revenue generating systems. You should attempt to share these operations with other business units or functions in your organisation.
10. Insource Your Key Systems - Outsourcing and Managed Services are good when you want to trade risk for premium pricing and is especially valuable in confident markets in equilibrium. Invest in the future of the business by insourcing the key (revenue) system operations so you can inject knowledge into the future talent pool and have creativity inhouse. Having the revenue systems under your control means rapid response without waiting for a third party.

Whilst some of these seem obvious, the key to success is the leadership and strength to pass the microscope over the organisation and take the opportunity to evaluate the current situation, and develop a plan that provides short-term operations cost savings whist laying the foundation and roadmap to prosperity when the market rebounds

Mike Counsel can be contacted michael.counsel@oracle.com