Disruptive technologies are not for the faint hearted - and need a top-down commitment
AirCargo archive stories issue #237
Thursday, 11 June 2015
COMPANIES that intend to use disruptive technologies will have to step outside their comfort zones and take some risks in order to reap the potential rewards, according to Australian business consultancy UXC.
UXC says success depends on minimising those risks where possible by taking a staged and carefully considered approach and working with a technology partner that understands their business, its challenges and its goals.
Cris Nicolli, managing director UXC said while disruptive IT projects carry a certain amount of risk, it is possible to reduce this risk by following eight key steps.
1. Create the business case. There are three main disruptive technology costs: Financial, time and perception and organisations must understand not all projects will run smoothly or achieve the planned outcomes.
The business must clearly articulate and analyse issues including costs and develop a strong business case for investment before taking the next step.
Innovation and disruption are unlikely to be valuable unless they are properly resourced and strategically targeted.
2. Understand and agree on the business requirements up front. Most firms implement technology in order to fulfil customer and organisational needs more effectively.
They therefore must clearly articulate the business requirements/outcomes sought before deciding on the technology to be implemented.
3. Engage key stakeholders.To bring stakeholders including employees and end users on board, they must understand how the project fits the broader business goals.
To make them fully engaged and enthusiastic about it, there needs to be clear, consistent ongoing communication including updates from the executive leadership and the project team to the rest of the stakeholders.
4. Secure executive sponsorship.Executive support is an indication that the entire company is committed to making the technology implementation work.
Without it, project teams can lose sight of the organisation’s strategic goals and failure becomes more likely.
5. Choose the right technology.While disruptive technology may look attractive, it is not necessarily the right choice. On the other hand, if a disruptive technology is the one most likely to deliver business benefits then organisations should not be dissuaded by the potential risks.
As long as the organisation has done appropriate due diligence, has a strong risk management regime in place and knows it is making the right solution, it should be well placed for success.
Choosing the right technology requires businesses to review a variety of parameters including: Depth of functionality; industry-specific features; ease of support; future development path; flexibility to adapt to the changing business model; integration with existing/future systems and scalability.
6. Future-proof the decision.By selecting a technology that maps closely to the current and future state of the business, risks are reduced. It also often is advisable to choose a solution that does not require a large amount of customisation, as this can add to ongoing running costs and future upgrade complexity. Choosing a technology that offers maximum functionality and scalability at the outset will reduce the need for constant upgrades over time. Effective organisational change management also plays a role in future-proofing the decision. 7. Demand post-implementation support.An implementation project does not end once the technology goes live. It is vital to have effective and well-resourced support in place. This will help ensure the system is fully operational, delivering value to the business and improving the productivity of those using it. 8. Implement effective governance. Corporate governance is essential for an organisation’s ongoing success and this extends to technology implementations. The greater the level of governance and scrutiny, the lower the risk of a project not succeeding. Effective governance includes the oversight of the project itself, from high level aims to detailed tactics, to ensure the project stays on track. The level and intensity of governance should be scaled to match the level of complexity of a project and the size of its investment.
Disruptive technologies are not for the faint hearted - and need a top-down commitment
AirCargo archive stories issue #237
Thursday, 11 June 2015
COMPANIES that intend to use disruptive technologies will have to step outside their comfort zones and take some risks in order to reap the potential rewards, according to Australian business consultancy UXC.
UXC says success depends on minimising those risks where possible by taking a staged and carefully considered approach and working with a technology partner that understands their business, its challenges and its goals.
Cris Nicolli, managing director UXC said while disruptive IT projects carry a certain amount of risk, it is possible to reduce this risk by following eight key steps.
1. Create the business case. There are three main disruptive technology costs: Financial, time and perception and organisations must understand not all projects will run smoothly or achieve the planned outcomes.
The business must clearly articulate and analyse issues including costs and develop a strong business case for investment before taking the next step.
Innovation and disruption are unlikely to be valuable unless they are properly resourced and strategically targeted.
2. Understand and agree on the business requirements up front. Most firms implement technology in order to fulfil customer and organisational needs more effectively.
They therefore must clearly articulate the business requirements/outcomes sought before deciding on the technology to be implemented.
3. Engage key stakeholders.To bring stakeholders including employees and end users on board, they must understand how the project fits the broader business goals.
To make them fully engaged and enthusiastic about it, there needs to be clear, consistent ongoing communication including updates from the executive leadership and the project team to the rest of the stakeholders.
4. Secure executive sponsorship.Executive support is an indication that the entire company is committed to making the technology implementation work.
Without it, project teams can lose sight of the organisation’s strategic goals and failure becomes more likely.
5. Choose the right technology.While disruptive technology may look attractive, it is not necessarily the right choice. On the other hand, if a disruptive technology is the one most likely to deliver business benefits then organisations should not be dissuaded by the potential risks.
As long as the organisation has done appropriate due diligence, has a strong risk management regime in place and knows it is making the right solution, it should be well placed for success.
Choosing the right technology requires businesses to review a variety of parameters including: Depth of functionality; industry-specific features; ease of support; future development path; flexibility to adapt to the changing business model; integration with existing/future systems and scalability.
6. Future-proof the decision.By selecting a technology that maps closely to the current and future state of the business, risks are reduced. It also often is advisable to choose a solution that does not require a large amount of customisation, as this can add to ongoing running costs and future upgrade complexity. Choosing a technology that offers maximum functionality and scalability at the outset will reduce the need for constant upgrades over time. Effective organisational change management also plays a role in future-proofing the decision. 7. Demand post-implementation support.An implementation project does not end once the technology goes live. It is vital to have effective and well-resourced support in place. This will help ensure the system is fully operational, delivering value to the business and improving the productivity of those using it. 8. Implement effective governance. Corporate governance is essential for an organisation’s ongoing success and this extends to technology implementations. The greater the level of governance and scrutiny, the lower the risk of a project not succeeding. Effective governance includes the oversight of the project itself, from high level aims to detailed tactics, to ensure the project stays on track. The level and intensity of governance should be scaled to match the level of complexity of a project and the size of its investment.
Cris Nicolli, managing director UXC said while disruptive IT projects carry a certain amount of risk, it is possible to reduce this risk by following eight key steps. 
