Business Online Collaboration Dichotomy

The goal of creating a collaborative enterprise might seem like an essential requirement that all forward-looking business leaders would actively support. However, fear of the unknown sometimes makes intelligent people react in ways that, in hindsight, appear totally illogical.

A case in point, Cisco announced results of a global study that found that while 77 percent of IT decision makers surveyed plan to increase spending on internal collaboration tools, company employees believe that their ability to collaborate is constrained by their own employer policies.

That said, more than a quarter of those who work at organizations that prohibit the use of social media applications admitted to changing the settings on their corporate devices to gain online access -- claiming they "need the tools to get the job done."

This new insight was attained by investigating practices at medium to large enterprises -- those with more than 250 employees. The study, conducted by InsightExpress, surveyed 2,023 corporate end-users and 1,011 Information Technology Decision Makers (ITDMs) from 10 countries.

Progressive Use of Online Collaboration Tools
The research found that ITDMs around the world recognize the importance of collaboration tools to the future success of their business, with India and China being the most progressive in adopting the technology.

Consequently, many ITDM respondents said that they are planning to increase their spending on collaboration technologies over the next year, identifying video conferencing, Web conferencing and IP telephony as primary areas of investment.

• Globally, 96 percent ITDMs and end users recognize that collaboration tools have a role to play in the future success of their business.
• Of those surveyed, 77 percent of ITDMs expect investment in collaboration tools to increase between now and October, and 56 percent expect their spending on collaboration tools to increase by 10 percent or more.
• Productivity and efficiency were identified by both end users and ITDMs as the primary benefits of increased collaboration -- with 69 percent of end users regularly using advanced collaboration tools, such as video and Web conferencing, to help them complete tasks at work more efficiently.
  

Why Employees Defy the Policy Restrictions
Employees identified a variety of frustrations with devices and applications at work. These include restrictions set by IT managers on the types of collaboration technologies that can be used at the workplace, a lack of integration among the applications, non-compatible formats (video, data, voice), and the limited number of collaboration tools at their disposal.

• Slightly more than half (52 percent) of organizations prohibit the use of social media applications or similar collaboration tools at work.
• Half (50 percent) of the end users admit to ignoring company policy prohibiting use of social media tools at least once a week, and 27 percent admit to changing the settings on corporate devices to get access to prohibited applications.
  

The study also highlights how end users are clearly motivated by the benefits gained from increased collaboration, but also identifies a need for some enterprises to adapt their corporate processes and organizational culture.

• When asked to identify how collaboration benefits them, 45 percent of the end users pointed to improved productivity and efficiency, 40 percent noted they receive assistance in solving work-related problems, and 31 percent enjoyed accelerated decision making.
• Ease of use (58 percent), the ability to communicate anywhere and at any time (45 percent), and features and functionality (37 percent) are the three most desired attributes of a device or application.
• End users believe that elements of corporate culture can inhibit their ability to collaborate successfully: 46 percent feel that all decisions are made by people at the top of their organization, and 39 percent say colleagues are not willing to share information when it does not benefit their own business unit.
  

The research is the second of a two-part series that Cisco has commissioned to explore the impact of social networking and collaboration in the enterprise. Cisco previously shared findings that explored how organizations use consumer social networking tools to collaborate externally.

Business Social Networking Upside-Downside

Social media tools are entering the workplace, either by thoughtful intent or purely by accident. To date, for those organizations that actually have a plan of action, most tend to focus more on "damage containment" policies for their employees.

Is a protection-centric strategy the prudent approach for concerned -- but otherwise uninformed -- business leaders, or is it shortsighted thinking that undervalues the upside opportunity?

Cisco released the results of a third-party global market study designed to assess how organizations use consumer social networking tools to collaborate externally.

The use of these tools, such as Facebook and Twitter, are connecting organizations with their external stakeholders. On the upside, the tools connect people and information, establish potential new routes to market, and enhance customer intimacy and brand awareness.

According to the third-party researcher, the study findings indicate that we're at the early stages of adoption and in the process of identifying key challenges -- such as the need for increased governance and IT involvement.

Market Study Highlights
Of the organizations interviewed, 75 percent identified social networks as the consumer-based social media tools they primarily use, while roughly 50 percent of the group also identified extensive use of microblogging.

Social networking tools are spreading into core business areas, including marketing, human relations, and customer service. Within marketing and communications, these tools have already become an integral part of early-adopter initiatives.

Small and medium-sized businesses are actively using social networking channels to generate sales leads, but this remains a growth opportunity for larger companies.

Only one in seven of the companies that participated in the research noted a formal process associated with adopting consumer-based social networking tools for business purposes.

Only one in five participants identified any policies in place concerning the use of consumer-based social networking in the enterprise. Within the respondent base, social networking governance typically involves more stakeholders than standard corporate initiatives.

Due to the unstructured nature of social networking, companies continue to struggle with policy creation and adoption, as copying an established governance process from other more structured areas often doesn't work for social networking.

Only one in 10 respondents noted direct IT involvement in externally facing social networking initiatives. Although IT typically isn't involved as a primary decision maker, respondents did recognize the need for these tools to scale and properly integrate with existing business processes to reap maximum benefits.

The new study is based on extensive interviews with 105 participants representing 97 organizations in 20 countries around the globe. Conducted between April and September 2009, the research was carried out by leading business schools in the United States and Europe.

Video Communication Applications in Healthcare

Just as architecture has the power to transform a skyline, create new vistas and reshape the horizon -- so technology has the power to redefine healthcare, that's the theme of this year's HIMSS09 conference and exhibition in Chicago, Illinois this week.

Cisco video technology was featured in the AT&T Telepresence Solution booth on the exhibition floor. Visitors to the live video demo described their perspective on potential new applications, and Wendy Bohling, Senior VP at Magpie Healthcare had a more profound point of view. She said, regarding the business impact, "Telepresence changes and differentiates a hospital."

Quest to Improve the Patient Experience
Enhancing communication capabilities in healthcare can be equated to the potential for productivity and cost-reduction benefits, which are clearly valued. However, perhaps the emerging opportunities will now also focus on patient safety and the overall patient experience.

A recent study, conducted by Zogby International, sheds new light on the heavy toll that communication lapses take on patient care, clinical efficiency and the overall ability of nurses to do their job. More than 250 practicing nurses were surveyed. They included those in medical-surgical, emergency room, operating room, and critical care or intensive care unit service.

The Key Survey Findings Include:

Improving "people-to-people connections" offers the greatest potential for progress. The primary issue centered on the opportunity to improve communications among care team members. The time that nurses spend chasing other people to get answers was twice as great as the time they spend locating other resources.

• When asked how many minutes per shift are typically spent "chasing other people to get answers," up to 86 percent of respondents estimated wasting as much as two hours per shift.
• When asked about information needed to improve communication, 48 percent of nurses surveyed said, "care team availability and location" is most needed from a communications device at the point of care.
• In an open-ended question about the most significant challenge that a nurse's communications device could address, 56 percent of nurses said, "better communication between staff."
• About 60 percent of nurses in the study estimate they work up to 10 hours of overtime each week due to time wasted or lost trying to communicate with other staff.
  

If the visitor comments at the AT&T Telepresence demonstrations are an indication of an emerging trend, then the opportunities for hospital administrators, and other healthcare industry leaders, to apply the latest managed or hosted service offerings certainly looks very promising. Clearly, IT transformation is a rising priority.

Updates:
View the Day Two video of additional demo visitor commentary.
More demo visitor perspectives on the Day Three video coverage.

Transforming Healthcare with Creative IT Solutions

Healthcare is constantly in the spotlight as aging populations, technological advances and high-costs threaten the very fabric of the current system. Healthcare providers and insurers are under constant social, political and shareholder pressure to both improve quality of delivery and lower operational costs.

To proactively evolve, forward-looking insurers and providers need to focus on:

• Access -- ensuring that patients are properly insured and the facilities are available to treat them;
• Affordability -- driving down costs across all parts of the system;
• Quality -- ensuring quality and successful treatment outcome;
• Sustainability -- focus on managing labor force resources and green issues.
  

New Approaches to Technology Driven Transformation
Despite being an industry heavily dependant on the use of the latest in medical technologies, healthcare has traditionally been slow to use information technology and services to improve their business processes. Healthcare has some of the most stringent concerns about privacy and security, and regulatory constraints. It is a highly fragmented industry, with over 70% of healthcare typically dispensed by autonomous professionals.

This unique industry structure has resulted in both a lower uptake of technology and the desire for high-cost in-house IT development and operation. Research by Cisco IBSG (the company's strategic consulting arm) reveals that this is beginning to change.

To-date most of the focus has been on using information technology to address the eHealth, or patient records issue, with mixed results. In contrast, Cisco IBSG believes that implementing next generation managed services, outside of the clinical area, can have a significant transformational impact.

Creative Solutions for Challenging Times
We are now seeing both healthcare providers and insurers exploring the potential benefits of managed services to streamline their operations and to improve the overall customer experience. Insurers are eager to encourage competition amongst providers, to drive down costs.

IBSG research indicates insurers are experimenting with using healthcare-specific telepresence solutions to remotely deliver healthcare, reducing costs and improving the overall customer experience.

For example, United Healthcare recently installed a HealthPresence managed service at Cisco's main San Jose, California campus. This allows employees to conveniently access medical support at their place of work, and enables United Healthcare to deliver it using less expensive medical resources in a more streamline process.

Healthcare providers are using managed services to address the cost and quality impacting issues. A hospital wide wireless RFID solution allows caregivers to quickly locate wheelchairs, trolleys and critical equipment, saving not just time and money, but often someone's life. Similar examples exist with locating doctors, identifying their availability, and across other parts of the medical supply chain.

Healthcare providers need to compete on service quality and loyalty. Providers are turning to next generation managed services as a means to enhance their offerings. For example, hospitals are using telepresence kiosks to create in-house concierge services to aid both patients and visitors to improve their overall hospital experience.

Transforming healthcare is going to require radical change. Managed services outside of the traditional clinical area have great potential. However, service providers must work with both insurers and healthcare organizations -- across all aspects of their business -- to develop unique IT solutions that help them to deliver lasting business advantage, and reduce operational costs.

About the author: Stuart Taylor is a Director in Cisco IBSG. Stuart leads thought leadership and engagements with key Service Providers in managed services. He has over 15 years of experience focused on strategy, corporate development, business unit strategy, M&A and operational improvement with large mobile and wireline operators and high technology clients.

Can Managed Services Rescue Financial Services?

Turmoil and struggles in the financial services sector are splashed daily on the front page of newspapers around the world. The industry faces a number of monumental challenges that are threatening and shaping its future. To remain competitive, forward-looking firms need to:

• Reduce costs
• Improve cross-sell and up-sell results from existing customers
• Shift capital expenditures to operational expenditures through variable costing and on-demand capabilities
  

Progressive companies in the financial services sector are aggressively using managed services technology to address some of these current challenges.

Serving Market Growth
The financial services sector currently spends more than 2.5 times more on technology than other industries. The way they can attack challenge number one is to shift the management of desktops, data centers, and call centers to a managed services model. Companies are using this option not just to reduce costs, but as a way to reallocate investment into growth initiatives.

One regional U.S. bank came to Cisco ISBG (the company's strategic consulting arm), wanting to quickly enter a new niche market faster than a competitor and increase its market share. Its tactic: deploy an end-to-end managed service, including both technology and business processes.

The economics of managed services lower the barriers of entry to niche markets that might not have been economical before; it also helps them determine success or failure more quickly, and act accordingly.

Managed Services Increase Customer Ties
In developing markets, companies are looking to use managed services to target customers who might not have used banks at all previously. A managed service that offers the underlying network infrastructure, including phones, provides them with an on-demand and scalable service that they can roll-out ahead of competitors.

To increase the amount of business conducted with customers, financial services firms are looking beyond the traditional world of financial transactions and services. One large bank we're working with wants to expand its relationship with its small and mid-size customers by providing them with essential services as payroll, procurement, and human resources.

Because the bank wants to roll out these services quickly, they will be created, delivered and managed by another entity through a managed services model.

Next generation managed services offer a real opportunity to transform the financial services sector. But success will require creative thinking, as well as both the development of strategic partnerships with managed services providers and proper governance models.

About the author: Stuart Taylor is a Director in Cisco IBSG. Stuart leads thought leadership and engagements with key Service Providers in managed services. He has over 15 years of experience focused on strategy, corporate development, business unit strategy, M&A and operational improvement with large mobile and wireline operators and high technology clients.

Exploring Managed Services - Key Performance Indicators

All business has become global. Companies of any size can now market products and services worldwide over the Internet. At the same time, competition has intensified because customers can investigate global competitors with ease.

To compete effectively in the global networked economy, companies need new capabilities:

• Global procurement and sales 24 hours a day.
• Integrated internal and external business processes.
• Up-to-the-minute access to sales, order processing, production, and other business critical information required for informed decision making.
• Flexible processes that can adapt dynamically to changes in the business climate.
  

The application of Business Technology is now a primary enabler of strategic advantage. However, chief executives have become impatient, as their companies have failed to keep pace with these advances. There are alternatives, for those who choose to act. The managed services model can be applied to accelerate this much needed change.

Review the following common business needs to decide if managed services can provide benefits to your business. If you answer yes to these key performance indicators, then perhaps there are areas where out-tasking could help drive change.

Are you a candidate for managed services? Consider these scenarios.

Our business is facing challenges:

• Staffing IT professionals.
• Staying up-to-date with evolving technologies and IT skill sets.
• Managing and maintaining current infrastructure, hardware, and software.
• Securing data, transactions, and communications.
• Responding quickly to time-to-market demands.
• Remaining flexible enough to maintain competitive position.
• Reducing network overhead costs.
• Operating in real time in order to meet 24-hour demand.
• Delivering services to branch offices and remote workers.
  

Our business is in transition:

• We need to upgrade, refurbish, move, or relocate existing infrastructure.
• The scope or scale of current business operations is changing.
• A merger, partnership, or acquisition is altering operations.
• We need to increase the range and level of service.
• Our growth targets depend on implementing new technologies.
• We are expanding into new markets.
  

Our business must increase profitability:

• We prefer to dedicate resources to our core competencies and mission critical processes rather than network support activities.
• We view managed services as a good strategy for gaining efficiencies and reducing costs.
• We need to implement a global network service but lack internal global resources.
• We are concerned with our ability to keep up with the latest security threats and to meet privacy or security regulations.
• We are experiencing dynamic business growth while undergoing downsizing and hiring freezes.
  

Initiate a dialog with a managed service provider, and you can begin to explore the possibilities of how to effectively adopt Business Technology as a Service.

IT Financial Management - Now is the Time

I've heard many excuses, during my years as an ITIL consultant, as to why a client did not want to start IT Financial Management -- the business is not ready, we don't have the tools, we don't know where to start, etc.

However, in these troubling economic times, it is imperative that IT adopts IT Financial Management in order to respond to the increasing pressure to reduce costs.

IT can reduce costs through service-based cost transparency and charge-backs. This method does not mean IT is a profit-center; it just means that IT is educating the business on the cost to provide the services.

With this knowledge, the business can adjust their consumption to better manage their budget and ensure spending is aligned with the value of the service they are receiving. Contrast this with a nebulous IT overhead charge which does not incent the business to use scarce IT resources wisely.

A Roadmap to IT Financial Management
The secret to successfully starting IT Financial Management is to develop a roadmap with increasing levels of maturity.

For example, in Phase 1, pick four to five key services for consumption based costing, e.g. number of servers, storage consumed, network bandwidth consumed, etc., then allocate the remaining costs (i.e. Service Desk, data center operations, etc) as a surcharge against this base price. In Phase 2 and subsequent phases, continue to expand the number of services covered by consumption-based charge-backs.

Another dimension of maturity is the approach to charge-backs. In Phase 1, you may want to just publish costs (i.e. cost transparency with no dollars changing hands). In Phase 2, you may want to provide invoices that show consumption and a hypothetical charge-back amount but stop short of consummating the transaction.

Finally, in Phase 3, implement the actual charge-backs. This gradual approach will allow the business to adapt and prepare for a new way of interacting with IT.

By establishing and communicating a roadmap, you can start IT Financial Management today and be better positioned to manage the IT budget.

About the author: Reg Lo is the VP of Technology Solutions at Third Sky Inc. He has over 14 years of IT consulting experience in ITSM/ITIL consulting, research compliance and healthcare, and custom solutions. He is a frequent speaker at itSMF and HDI events and a contributor to "The Forum", the offical newsletter of itSMF USA.

The Business Case for BT Convergence

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.

The Quest for IT Service Management Excellence

In the highly-charged economic environment facing organizations today, competition is fierce and any competitive advantage needs to be identified and maximized to ensure survival.

Increasingly Business Technology service providers, whether internal or external, are reaching out to the growing discipline of IT Service Management (ITSM), particularly as expressed in the "IT Infrastructure Library" or "ITIL (®)" to provide the critical competencies needed to create that competitive advantage for their organization.

ITIL recognizes the need for IT departments to think of themselves as Service Providers to their business, providing technology-based services that are critical to the mission of the larger organization. In support of this mission they must, like their own suppliers in turn, meet challenges such as:

• Providing services that are selected and positioned correctly for their internal "market"
• Delivering real value to the business to ensure satisfaction and value
• Working efficiently to maximize the value received from resources and capabilities
• Prioritizing investments to manage and grow the function, in sync with their market
• Adopting and adapting flexible work methods, and support service provisioning in an ever-changing business and technology environment.
  

The good news is that ITIL provides guidance on industry-tested approaches to addressing all these challenges and more. The ITIL v3 core guidance is organized around a service lifecycle, with a set of five books describing guidance on each of the five phases or stages: Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement.

To spread the word on ITIL specifically and ITSM in general, a global practitioner organization has grown up in the form of the IT Service Management Forum or "itSMF" with an International body as well as national chapters across the world.

Members actively share ideas and develop the methods of ITSM through national conferences, regional events, and the work of local interest groups and specialty interest groups.

itSMF takes an important and active role in the development and maturity of the actual content of ITIL, contributing many authors, reviewers and leaders to continual improvement of the materials and qualifications programs.

In future posts we'll explore ITSM practices and how they can be applied to the challenges of service provisioning and service excellence.

About the author: An IT Service Manager and ITIL v3 Expert with over 20 years of experience in service industries, Ms. Hunnebeck is the VP of ITSM Vision & Strategy at Third Sky Inc. Her passion for improving how we work led Ms. Hunnebeck to IT Service Management from a background of process consulting, training and Service Management systems consulting.