Quest Q and A Spring 2010 : Page 33
FAcing the chALLenge: Business technoLogy convergence Quest’s CIO Forum Closing Keynote Speaker, Faisal Hoque, Chairman and CEO of BTM Corporation, reflects on the challenges facing enterprises today and why Business Technology Convergence matters more than ever. Join Mr. Hoque and our other presenters at this year’s CIO Forum (April 19 in Las Vegas) as they explore the challenges and opportunities facing the “CIO in a State of Change.” There is no quesTion ThaT The business landscape across The globe has changed dramaTically over The lasT decade. only 74 of The original 500 companies in The s&p index were sTill on The lisT 40 years laTer – a morTaliTy raTe of more Than 10 per year. The average life span of an s&p 500 company has sTeadily decreased from more Than 50 years To fewer Than 25. projecTing forward, iT’s likely ThaT only abouT one-Third of Today’s major corporaTions will survive as significanT businesses for The nexT quarTer cenTury. doing nothing is not an option. The changes sweeping over corporations and other organizations will not stop because they make us uncomfortable. The only way to win is to get ahead of these changes and to manage them in your favor. you can’t do that today unless your business and technology are united as one. To create an environment where technology helps to shape – rather than simply enable – strategic choices, leading enterprises are already working to synchronize – rather than simply align – their business and technology decision-making. and in the best-managed modern enterprises, technology and business management will converge completely. convergence occurs when business and technology activities are intertwined and the leadership teams operate almost interchangeably, managing business and technology together. our research since 1999 illustrates what leading organizations around the globe have learned about innovation through business technology convergence and not simply through innovating new technology. These include global 2000 corporations, government agencies, small to medium businesses, and social enterprises. we looked into these organizations to better understand how they create innovative business models – models that can adapt as opposed to suffer from unexpected shifts in the market. This research suggests that leaders who place a focus on converging the business and technology management disciplines of their companies attain far more financial success than those who continue to treat them as silos. There is demonstrable economic value in advancing business technology management maturity, and the payoff is greatest for those enterprises that are approaching convergence. The ability for technology (in its purest sense) to give an enterprise a competitive advantage is limited by the similar adoption and application of the technology across the competitive landscape. our ‘convergence index’ shows that when enterprises place the business strategy and model ahead of technology and use technology as a supporting piece of the strategy, the enterprise will continue to grow faster and with healthier profit margins than competitors who are using the same technology. would any self-respecting executive willingly throw millions of dollars at an investment without knowing how it could affect their business? The sane answer to this question is ‘no.’ a look at failed technology initiatives provides evidence that companies have faced this problem since they launched their first technology project. as the scope and risk of these initiatives increased, the effect of the disconnect did as well. by the time the internet burst onto the scene, the scale of technology projects had increased to the point that the correlation between business/technology convergence and the success of innovation (or lack thereof) became unavoidable. most organizations fail to capitalize on the technologies they already have; and many more are poised to meet this same fate with the next big technology fad. whether it’s wireless, web services, or the latest and greatest in nanotechnology, companies will never get value-real or perceived-without first solving the business/technology disconnects. as business slowly recovers from recession there are increasing signs that the economic crisis is redefining the marketplace and we need convergence now more than at any time in history to make the next generation enterprises thrive. business Technology management (bTm) is a call to arms; a manifesto for making organizations and businesses nimble, agile and able to build differentiated, innovative and adaptable processes that expand their reach and grow revenue even in the most challenging markets and conditions. About the Author faisal hoque is the founder and ceo of bTm corporation. an internationally known entrepreneur and thought leader, faisal has written five management books, established the non-profit bTm institute, and become a leading authority on the issue of effective interaction between business and technology. © 2010 Faisal Hoque 33
Facing The Challenge: Business Technology Convergence
Quest’s CIO Forum Closing Keynote Speaker, Faisal Hoque, Chairman and CEO of BTM Corporation, reflects on the challenges facing enterprises today and why Business Technology Convergence matters more than ever.
Join Mr. Hoque and our other presenters at this year’s CIO Forum (April 19 in Las Vegas) as they explore the challenges and opportunities facing the “CIO in a State of Change.”
There is no quesTion ThaT The business landscape across The globe has changed dramaTically over The lasT decade. Only 74 of The original 500 companies in The s&p index were sTill on The lisT 40 years laTer – a morTaliTy raTe of more Than 10 per year. The average life span of an s&p 500 company has sTeadily decreased from more Than 50 years To fewer Than
25. ProjecTing forward, iT’s likely ThaT only abouT one-Third of Today’s major corporaTions will survive as significanT businesses for The nexT quarTer cenTury.
Doing nothing is not an option. The changes sweeping over corporations and other organizations will not stop because they make us uncomfortable. The only way to win is to get ahead of these changes and to manage them in your favor. You can’t do that today unless your business and technology are united as one.
To create an environment where technology helps to shape – rather than simply enable – strategic choices, leading enterprises are already working to synchronize – rather than simply align – their business and technology decision-making. And in the best-managed modern enterprises, technology and business management will converge completely. Convergence occurs when business and technology activities are intertwined and the leadership teams operate almost interchangeably, managing business and technology together.
Our research since 1999 illustrates what leading organizations around the globe have learned about innovation through business technology convergence and not simply through innovating new technology. These include global 2000 corporations, government agencies, small to medium businesses, and social enterprises. We looked into these organizations to better understand how they create innovative business models – models that can adapt as opposed to suffer from unexpected shifts in the market.
This research suggests that leaders who place a focus on converging the business and technology management disciplines of their companies attain far more financial success than those who continue to treat them as silos. There is demonstrable economic value in advancing business technology management maturity, and the payoff is greatest for those enterprises that are approaching convergence.
The ability for technology (in its purest sense) to give an enterprise a competitive advantage is limited by the similar adoption and application of the technology across the competitive landscape.
Our ‘convergence index’ shows that when enterprises place the business strategy and model ahead of technology and use technology as a supporting piece of the strategy, the enterprise will continue to grow faster and with healthier profit margins than competitors who are using the same technology.
Would any self-respecting executive willingly throw millions of dollars at an investment without knowing how it could affect their business? The sane answer to this question is ‘no.’ a look at failed technology initiatives provides evidence that companies have faced this problem since they launched their first technology project. As the scope and risk of these initiatives increased, the effect of the disconnect did as well. By the time the internet burst onto the scene, the scale of technology projects had increased to the point that the correlation between business/technology convergence and the success of innovation (or lack thereof) became unavoidable.
Most organizations fail to capitalize on the technologies they already have; and many more are poised to meet this same fate with the next big technology fad. Whether it’s wireless, web services, or the latest and greatest in nanotechnology, companies will never get value-real or perceived-without first solving the business/technology disconnects.
As business slowly recovers from recession there are increasing signs that the economic crisis is redefining the marketplace and we need convergence now more than at any time in history to make the next generation enterprises thrive. Business Technology management (bTm) is a call to arms; a manifesto for making organizations and businesses nimble, agile and able to build differentiated, innovative and adaptable processes that expand their reach and grow revenue even in the most challenging markets and conditions.
About the Author
Faisal hoque is the founder and ceo of bTm corporation. An internationally known entrepreneur and thought leader, faisal has written five management books, established the non-profit bTm institute, and become a leading authority on the issue of effective interaction between business and technology.
© 2010 Faisal Hoque
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