Tag: digital transformation

  • Leadership Drives Digital Transformation Success

    Leadership Drives Digital Transformation Success

    When it comes to near-term survival, organizations know they are fighting for their digital existence. Still, despite 80% of organizations moving forward with their digital transformation efforts, very few have experienced the heights of success they hoped. In Digital Transformation: Coming from Behind, we reported consultancy McKinsey & Company found less than one-third of digital transformations are successful.

    What makes for a successful digital transformation? Services provider Fujitsu believes its recent survey has cracked the code. With Fujitsu Future Insights Global Digital Transformation Survey Report 2019, Fujitsu found less than half of the organizations can say their digital transformation efforts have resulted in forward progress.

    The survey, which spanned 900 IT executives across nine countries, also found what Fujitsu believes are the factors of success in digital transformation: leadership, ecosystem, empowered people, a culture of agility, the value from data and business integration. These are all the organizational capabilities Fujitsu identified as necessary for successful digital transformation and calls them the “digital muscles.”

    While there were six digital muscles identified, there’s one essential to strengthening them all: leadership.

    Leadership came on top when it aligned social and revenue goals. When survey respondents expressed what factors would improve their trust in enterprises, 67% said they would trust companies that make a positive societal impact and more enterprises indicated they’re embracing social responsibility as well as revenue. According to the survey, 72% of respondents said their companies have a responsibility to help solve social challenges in addition to the pursuit of profits and 74% said it is important that business goals and social goals are aligned.

    According to the survey, 70% of respondents believe their business leaders practice empathic leadership and most management teams actively communicate with their employees. And 68% said their management readily communicates important information, and their ideas, to their employees.

    Leadership also means enabling staff to do what they need to do to succeed.

    “Businesses have huge unused and latent capacity of their people in their ideas and understanding of business challenges. Many people in a business have a deep understanding of certain issues, like specific customer needs, or understanding the potential of a technology, in a way that the leadership often does not. But people who perform transactional tasks, acting only as business resources, are using a minimum of their potential,” the report stated.

    The takeaway for leadership is to empower employees to develop creativity, empathy, problem-solving and digital skills.

    Leadership in helping employees to achieve work-life balance was believed to be important to 78% of respondents. Additionally, 74% agreed diversity is important, 72% for inclusion and 71% said they encourage their employees to act proactively.

    “Companies that recognize the importance of these factors seem to have greater success in digital transformation,” the report stated. “A good work-life balance enables employees to work with a sense of fulfillment. They can be motivated to transform. Taking advantage of diversity can help companies to attract talent and to form more creative teams, which brings creativity and innovation,” the report continued. “In addition, companies emphasizing inclusion earn the respect of individual employees and encourages greater sharing of ideas and opinions. Creating a corporate culture that motivates employees to innovate will help drive digital transformation.”

    Finally, the report found leadership that helps build their people’s ability enjoys better transformational outcomes.

    From those companies that support a work-life balance and diversity, 41% said they delivered good digital transformation outcomes. However, for those that didn’t place importance on work-life balance and diversity, only 19% and 22% respectively had good digital outcomes.

    “Among companies that emphasize inclusion, 40% said that they had delivered digital transformation outcomes, whereas for companies that do not regard inclusion as important, the figure was only 24%,” the report said.

    The survey shows leadership that primarily focuses on technology transformation and don’t focus on helping their employees enhance their capabilities as part of an organizational transformation, risk falling behind those organizations that do prioritize employees.

    — George V. Hulme

  • Fujitsu: State of Digital Transformation Is…Mixed

    Fujitsu: State of Digital Transformation Is…Mixed

    According to the Fujitsu Future Insights Global Digital Transformation Survey Report 2019, nearly 90% of companies in a recent survey are already deep into their digital transformation efforts. While the survey did find broad movement toward digital transformation, there existed wide differences in the progress of transformation across industries.

    If digital transformation progress were a horse race across industries, financial services and transportation would be running neck and neck. While, overall, companies reported 36% progress in their digital transformations, 47% of financial services firms and 45% of transformation companies said they have moved forward with digital transformations and have delivered positive outcomes. From there, the government reported 35%, manufacturing 32%, healthcare 31% and wholesale/retail 29%.

    Fujitsu’s findings are based on 900 respondents from nine countries. Interestingly, only 13% of those surveyed said their companies have yet to get started with their digital transformations.

    Not surprisingly, online businesses are moving along more quickly with their digital transformations than brick-and-mortar businesses. While online businesses comprised 33% of the survey respondents and brick-and-mortar 67%, online businesses have made more progress in digital transformation. Of the online companies, 91% are implementing a digital transformation, with more than half achieving positive outcomes.

    One of the more concerning findings from the Future Insights Global Digital Transformation Survey Report was the lack of trust toward online data. A considerable 70% of respondents found it difficult to judge if online information is trustworthy, and 59% were concerned that the data they use may have been falsified.

    “Concern about personal data is also high, with 72% of respondents saying that they are worried organizations exploit personal data without their permission,” the report said. “However, more than half of respondents are content to provide personal data to an organization if they can trust the organization and in cases where personal data is used to enhance products and services.”

    In addition to a lack of trust toward data, respondents are also unsure about AI-made decisions. “Sixty-three percent of respondents think that decisions made by AI are fair because AI is not subject to bias. However, 52% of respondents claimed they couldn’t trust AI because data can be incorrect or biased.”

    However, 60% of respondents said they would trust decisions made by AI if the AI shows substantial reasons for reaching the decisions, and 66% indicated they would trust a company that published a code of ethics governing the use of AI.

    “Companies in which management places an emphasis on long-term perspectives, practices empathic leadership by sharing their messages and passion with employees, and empowers their staff tend to achieve greater success in their journeys toward digital transformation,” the survey found.

    While respondents to this survey indicate moving forward toward their digital transformation objectives, as we recently covered in Digital Transformations Fall Short, Survey Claims, the Kony Digital Experience 2019 Index Survey concluded that businesses are “still missing the mark” with consumers despite nearly $5 trillion in digital investment. The report didn’t distinguish how the $5 trillion was being spent and in what areas of the business the investments were made.

    That report found that said organizations in banking (54%), retail (59%) and utilities (51%) are keeping pace with their expectations but are not delivering differentiated digital experiences. The big laggard was health care, with only 48% keeping pace and 20% being behind respondents’ expectations.

    — George V. Hulme

  • Relentless Automation: The Roadmap to Success

    Relentless Automation: The Roadmap to Success

    As digital transformation continues to shape organization-wide initiatives, CIOs are recognizing the benefits and value of automation in reducing errors and process variability, leading to lower operating risks and faster execution and innovation. In fact, according to Gartner’s recent report, by 2023, 40% of I&O teams will use AI-augmented automation in large enterprises, resulting in higher IT productivity.

    Despite this future uptick, many organizations are currently automation deficient as a result of complex infrastructure, fragmented task automation and tool sprawl. A renewed focus on automation will put I&O teams in the driver’s seat as cloud-like capabilities become the norm. To achieve the highest ROI, CIOs should audit their organization first in order to determine the level of need for automation as well as which specific areas to automate.

    Having a clear mandate is essential for any organization to be able to implement automation at scale. CIOs need to ask the right questions of their organization to determine a baseline for automation. These core questions include: Where is the organization experiencing business issues as a result of a lack of automation? What is preventing the organization from automating more? Does the organization have the right foundation of standards, people and processes on which to automate?

    From our experience, on the journey to mature automation, companies typically fall into one of following five stages:

    Stage Zero: Reactive

    Organizations in the reactive phase do not understand the demand for IT services and the importance of measuring IT service results. Their customers don’t have a well-established way of requesting services nor an understanding of the status of their request. Requests are obtained from various sources, completed inconsistently and process documentation is typically piecemeal. Difficult requests are often directed to individuals who have assisted with similar requests in the past, and tooling is procured by teams without strategy or direction.

    Stage One: Focused

    Focused organizations know the limitations of existing IT automation and actively create initiatives to improve service delivery on a small scale. In this stage, customers have a formal method of requesting services, but it isn’t fully followed or enforced. These organizations have limited processes and tools, and are still highly reactive, relying heavily on a specific individual’s knowledge. Automation is defined and repeatable with possible consistent results, documentation exists for all common services and there is awareness that tooling and coding is inconsistent.

    Stage Two: Established

    Organizations in the established stage are more proactive, and provide IT services with a formal approach to processing service requests with an automated triage capability. Workflow is measured for completeness, and tasks-to-complete services are well-understood, with a gap analysis on which automation has not been completed. In this stage, at least one primary IT service has been automated. There is an automation backlog with prioritization in place. Tooling is standardized and the process for code management is uniform across all teams. Though there is an agreed-upon vision for automation, integration into broader services, such as DevOps, are still incomplete or inconsistent.

    Stage Three: Accelerated

    Accelerated organizations actively deliver new services based on input from the business. Service levels and quality metrics are captured and improved upon, and IT has a catalogue of services available to all business units. Over half of the major IT services have been automated, and developers have integrated standard tooling into pipelines with defined outcomes. In this stage, organizations are focused on process execution and excellence, but KPIs are centered around IT, instead of the business as a whole.

    Stage Four: Optimized

    Optimized organizations have a mature and continuous service improvement program with an established cadence for enhancements. The entire suite of IT services has been automated and aligned with business initiatives, directly affecting business outcomes. Service offerings have various options to ensure automation is being utilized, there are teams in place to deliver applications and software, and IT services have comprehensive documentation and adoption of standardized processes with seamless integration.

    Achieving Relentless Automation

    A focused, cross-functional team should be assembled to effectively assess and define the automation roadmap for an organization. The cross-functional team will bring relevant perspectives to IT service offerings with the intent to automate. Once a baseline for automation is established, CIOs should monitor the progress of their automation efforts, including potential for growth and barriers the organization is experiencing within the zones of infrastructure, operations, application development, service delivery and enterprise service management.

    As CIOs begin to implement automation at scale, they will see reduced operational costs and time to deliver on critical, strategic products and offerings. As a result, organizations could recognize increased revenue, boosting their organization’s bottom line and driving them closer to total digital transformation.

    — Derek Wise

  • Aim to Be a Top 12% Global Testing Team

    Aim to Be a Top 12% Global Testing Team

    We know that you’re thinking, “Really? Another fluff post about the top people in my profession and what I need to do to be just like them?” Listen, we hear you, but this is not some fluff piece with vague ideas of what might (or might not) work.

    In case you missed it, on May 27th, the 2019 State of Automated Visual Testing was released. Based on independent research sourced from over 350 testing teams around the world, we learned 12% of you are getting much better results than the other 88%. We’re talking four times more successful as measured by the things you (and your boss) really care about–test coverage, release velocity, application quality, overall R&D teamwork and cold hard cash. This is not our opinion. It’s not subjective. It’s objective data and information. Data and information that came from you and your peers.

    In other words, we’re not asking you to take our word for it; we’re asking you to take your word for it.

    What Separates the Top 12% from the Other 88%?

    Digital Transformation. Two words that have been baked into our world over the past 20 years. To such an extent it may be fair to call it fluff? Fluff or not, IDC forecasts worldwide spending on technologies and services that enable digital transformation will reach $1.97 trillion in 2022, per the (IDC) Worldwide Semiannual Digital Transformation Spending Guide.

    That’s a lot of fluff! When your bosses’ boss is spending that kind of cash, it’s always worth paying attention. It could be good for your career. As it turns out, 12% of the world’s testing teams did pay attention, and it’s their approach to managing the challenges of digital transformation that have set them apart.

    The Testing World’s Digital Divide – Digital Transformation Quantified.

    You can quantify it for yourself with some simple math and see how you compare to other R&D and testing teams around the world. Got that calculator ready? Here we go…

    How many applications do you have in production today? (Don’t forget those native mobile apps, they really add up).

    How many pages or screens do you have in production on average for each of these applications? (Single page applications can be tricky but give it your best guess).

    How many viewport breaks do you support? (The market average is six if you are not sure).

    How many human languages do you support? (We’re talking about localization here–English, German, Spanish, Chinese, Japanese–not coding languages in case you’re wondering).

    Now, multiply those four numbers together. Congrats! You have just quantified the digital footprint of your business. People can write about digital transformation all they want, but you’ve just transformed all that fluff into something quite real. It’s probably a big number. Over 90,000 for a typical company and over 624,000 for the largest 30% of companies in the world. Here’s the kicker. You and your R&D team are responsible for managing the visual and functional quality of every single one of those pages and screens.

    When functional test automation first emerged way back in 1989 with the launch of Mercury Interactive XRunner, it was a much different time. Browsers didn’t even exist. Since then, the browser wars have come and gone, and standards are now in place. Applications have grown far more complex with native mobile, dynamic content, single page applications (SPA) and responsive design now an everyday reality. Digital transformation for any size company is officially past tense. We’re not transforming, we’re transformed. And now you have to deal with it, but how?

    What Defines a Top 12% Global Testing Team?

    Top 12% teams have overcome the massive challenge posed by digital transformation. Like any technical challenge we have ever faced, it started with someone on the team who felt the pain and set out to solve for it. And when they did, good things happened:

    • Test coverage increased by 60%
    • Release velocity became 2.8x faster (even though coverage increased 60%)
    • Visual and functional quality improved 3x with far fewer escape bugs (even though they release 2.8x times faster)
    • R&D teams are 4x more satisfied with their visual and functional quality outcome

    All of this despite the 12% of testing teams were managing applications 2.2x larger than the other 88%. In all likelihood, they felt the pain before most of us, and have now led the way for the rest of us. We just need to follow.

    Today, successful continuous management of application visual quality creates competitive advantage. Business leaders know this and are paying attention. As a result, testers are in a better position than ever to be heroes respected by their R&D teams for driving huge value for the companies they work for.

    — James Lamberti

  • Digital Transformations Fall Short, Survey Claims

    Digital Transformations Fall Short, Survey Claims

    What is the nature of digital transformation? Is it a permanent shift in the digitization of business processes, or a race to a known destination? Should organizational investments in data analytics, continuous software development, business processes, culture, machine learning and shifting enterprise technology from a perspective of ownership and control to consumption be judged from the eye of the consumer?

    The answer seems straightforward. Eventually, the market is the ultimate arbiter of digital transformation success. However, many organizations today are busily investing in technologies they hope will serve them well in the years ahead, and some of the largest investments are not immediately visible to consumers.

    According to the Kony Digital Experience 2019 Index Survey report, businesses are “still missing the mark” with consumers despite nearly $5 trillion in digital investment. The report didn’t distinguish how the $5 trillion was being spent and in what areas of the business the investments were made.

    “As companies race toward digital transformation, their leaders might want to hit the pause button and reassess their efforts. The significant investments by companies around the world to transform their business to become more digital has had very little impact on consumer experience,” according to the report.

    Perhaps—or, perhaps, many organizations are laying their groundwork and it’s way too early to make such a call.

    According to the survey, customers (65%) are more satisfied if their digital experiences feel effortless (who wouldn’t?) and 63% of customers said they would spend more money if their digital experiences feel effortless. Of course, history is full of surveys detailing consumers stating how they’d act but consequently end up acting entirely differently; people are notorious for answering surveys how they think they should answer or how they wish they would act rather than how they do act. Famous examples include surveys on privacy, security and personal finance.

    The findings of this survey are based on 1,600 respondents across the U.S., Europe and Asia. According to Kony, 800 were participants or leaders of digital transformation initiatives in organizations with 500 or more employees.

    The study focused on business investments and customer experiences within the banking, retail, utilities and healthcare industries.

    Interestingly, respondents said organizations in banking (54%), retail (59%) and utilities (51%) are keeping pace with their expectations but are not delivering differentiated digital experiences. The big laggard was health care, with only 48% keeping pace and 20% being behind respondents’ expectations.

    The study concludes businesses are not listening to—or understanding—the evolving needs of their customers because only 28% of enterprise digital transformation initiatives are started specifically with customer needs as the priority.

    “Improvements in costs and efficiencies are always welcomed and clearly important to project funding, but the real returns and real impact of digital starts and stops with its impact on the customer experience,” said Thomas E. Hogan, chairman and CEO of Kony Inc.

    That’s an incomplete way of looking at what is happening when it comes to digital transformation and the scope of technological change underway. That figure and comment are based on the survey findings that 68% of digital transformations were business process-centered, 4% employee experience-centered and 28% customer experience-centered.

    My take: In most cases, business leadership knows what they need to do and where they need to place their primary focus. And it’s a tough call to broadly state businesses are missing the mark without looking at how specific businesses are choosing to invest, as well as their stated objectives. Such information was not available in the survey.

    In many—if not most—cases, businesses are focusing on what they need to do, such as eliminating technical debt, automating business processes with robotic processes, streamlining their development pipelines and more. Of course, it’s essential to provide quality experiences to customers, as the survey found 47% of consumers will consider switching providers if their current provider doesn’t deliver the digital experience they demand and expect.

    That said, it’s not always true that digital transformation begins and ends with the customer. Large enterprises have decades worth of technology investments they must manage, and successful digital transformation isn’t a set finish line that enterprises are rushing toward. Rather, it’s a never-ending continuum, and those enterprises that are investing in the removal of technical debt, modernizing their software delivery methods, machine learning and streamlining their businesses to be more cost-effective and agile are building platforms that will sustain their businesses and provide exceptional digital experiences over the long haul.

    — George V. Hulme

  • Digital Transformation Drives C-Suite Discord

    Digital Transformation Drives C-Suite Discord

    In the sport of rowing, each crew member has to row in synchrony or the boat risks undesired turns and even potential tipping. It takes practice, communication and discipline for each crew member to raise their oar to the appropriate height and apply the appropriate power. Obviously, those crews who work best together are more likely to win.

    When it comes to winning at digital transformation, the same is true for the executive crew or C-suite. However, the drive to  digitally transform enterprises rapidly puts a strain across C-suite relationships.

    That’s the main takeaway from a new report published by the Financial Times Focus and business management software provider Apptio, “Disruption in the C-suite.” The report is based on a survey of 555 senior executives, about half in CxO roles and from Australia, Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, Spain, Sweden, the UK and the U.S.

    The survey found considerable uncertainty regarding the IT department’s ability to be effective. In fact, 51% of respondents said they have concerns about IT’s ability to govern cloud adoption. And, surprisingly, less than one-fifth of companies using agile have defined performance indicators they use to track their results.

    Further, 47% of leaders surveyed agreed digital transformation has blurred work responsibilities throughout the C-suite. And the same number of respondents admitted digital transformation has exacerbated strategic differences among finance and IT leaders. In fact, 71% of finance leaders said the IT function needs greater influencing skills to deliver the change their business requires.

    According to the survey, while the CFO was the least deeply aligned member of the C-suite crew with the CIO, the lack of deep alignment with the CIO’s office and other C-level executives was shown to be disturbingly common. Only 56% of CEOs reported being deeply aligned with the CIO, the survey found.

    There are signs of hope. Eighty-seven percent of respondents in the U.S. said digital transformation has increased collaboration across C-level executives when it came to developing new products and services.

    Still, 63% of those surveyed said the IT function needs greater influencing skills to deliver the change their business requires.

    That lack of influencing skills—and lack of defined metrics to measure progress—has taken its toll. About one-third of CFOs said there is a lack of consensus among CxOs when it comes to how to measure the impact of new technologies.

    It’s interesting, 56% of respondents said they shift their IT strategy continuously as their technology leaders receive input from the business and customers. That’s hopefully advantageous, but with so much digital transformation discord among technology and business leaders within organizations, it’s a coin flip whether that’s good stewardship or blind steering.

    It’s absolutely vital that organizations get their digital transformation efforts right, and to also be able to do so successfully at the necessary speed. As we covered in the recent story, “Digital Transformation Vital for Business Survival,” 78% of organizations believe their company’s primary industry is evolving rapidly and digital transformation is necessary to survive the changes underway.

    Those businesses cited enhanced customer experience and customer relationship management, the ability to maintain competitiveness, enabling new ways of doing business, increased productivity, cost savings, increased revenue generation and enhanced product development.

    Few would doubt the accuracy of that assessment, nor that the entire C-suite crew must be in synchrony, understand each other’s roles and objectives and know where the entire team is heading. Otherwise, the entire effort is likely to veer off course.

    — George V. Hulme

  • Collaboration Inside and Out for Innovation

    Collaboration Inside and Out for Innovation

    Across all industries today, organizations increasingly are migrating their infrastructures to the cloud in a bid to boost agility, lower the cost of IT ownership and reduce the risk of outages.

    Firms are under more pressure than ever before to innovate new products to keep up with newer, more agile firms. But before they can reap the benefits that come with going totally serverless, organizations must deal with the immediate challenge of meeting the ever-growing expectations of today’s digital-first customer.

    For newer firms, this is arguably a much easier undertaking, as their IT infrastructures will have been built using modern programming languages, technologies and software development practices. They also will most likely have adopted an agile approach and be highly adaptable to changing business needs. Conversely, older firms typically have a large body of IT that lives in an entirely different world. With infrastructures made up of a patchwork of interdependent legacy applications, built on top of monolithic architectures, these firms struggle to innovate customer-facing applications at pace. But if they are to compete, established players must adopt a similar approach to their more agile counterparts.

    Don’t Hate the Players

    It is completely natural for technology to evolve. The problem faced by many organizations that were pioneering in their use of technology is that they have now become victims of their own success. Take the world of financial services as an example. Banks that began building out their IT infrastructure decades ago have had to adapt gradually to new technologies. But it’s only in recent years that digital transformation has become a key business objective. In the not-so-distant past, banks may have been able to get away with taking their customers for granted, as the competitive landscape lacked any real diversity. But today competition abounds, with challenger banks and fintechs bringing innovative new products and services to markets traditionally owned by the banks.

    If the banks are to compete, they must seek to collaborate with the fintechs. Cloud-based open platforms that focus on open APIs are the most effective means of achieving this. By providing fintech partners with access to core systems via open APIs, the banks get to concentrate on their core operations while innovation from the outside helps them to deliver new applications to their customers.

    Historically, the banks would have been fiercely protective of their IP and core systems, but in collaborative environments, it is exactly this IP that can be used to create value in a safe and secure way. This is why banks increasingly are seeing fintechs as partners rather than poachers, as they are above all technology providers that are eager to have their services leveraged by large financial institutions. Similarly, banks understand that they must become more agile and entrepreneurial to deliver what their customers want. So, working with third parties that embody these characteristics is the most effective means of doing so.

    Embrace Internal Collaboration

    As well as overcoming legacy systems, legacy culture must also be addressed if true digital transformation is to be achieved. The first way to do this is to align application development with business goals, showing how a focus on the former helps to achieve the latter. Here, the adoption of a DevOps mindset can bring about the right culture for increasing innovation within. Though not entirely applicable to legacy systems, which must be evolved at a much more gradual pace using a waterfall approach, DevOps can be applied when it comes to systems of differentiation—which include decision-making, pricing, analytics and risk management tools in the middle office, as these tools will need updating more often to accommodate changing business practices or customer requirements.

    Creating cross-functional teams that include business analysts, developers, data scientists, QA, UAT and compliance experts means there is collective focus and responsibility for the delivery of applications. It also enables more agile development so that applications can be pushed through to the production environment continuously, rather than simply throwing a finished product over a wall with little care as to how it performs.

    In recent years, IT increasingly has been seen as a business driver. As software development methodologies and practices that rely on a collaborative culture continue to mature and further prove their value, partnerships between larger organizations and disruptors will be viewed in much the same way.

    — Mitesh Soni

  • The Bumpy Rise of the Tech-Savvy CFO in Healthcare Organizations

    The Bumpy Rise of the Tech-Savvy CFO in Healthcare Organizations

    The good news? The working relationship between technology leadership and financial officers in health systems organizations is improving. The bad news? Chasms between finance and IT remain, and they are common throughout health systems providers.

    Market Research firm Black Book Research recently found, in its “2019 Black Book CFO & Financial Leadership Survey,” that chief financial officers (CFOs) are no longer prioritizing cost-cutting and are becoming more aggressive in their technology spending. Interestingly, 52% of CFOs reported that they are shifting their priorities to financial technology investments, such as the implementation of advanced analytics, as well as 44% who cited increased spending on broader distributed ledger technologies.

    This is a dramatic change over previous years, where financial technology in many healthcare organizations witnessed negligence and budget cuts. “Ninety-one percent of CFOs surveyed agreed that their past organizational CIO and senior IT management did not support a culture where financial technology upgrades and acquisitions were prioritized as initiatives that impacted enterprise health system strategy,” the report found.

    The survey found that 90% of financial leaders and management strongly agreed that CIOs and IT management undervalued the needs of financial digital transformation and their financial tools. Technology leaders instead prioritized and convinced their boards that their electronic health record vendor-related offerings were the best investment going forward.

    The result? When it comes to finance technology in healthcare organizations, the world has become quite bifurcated. Consider this: Ninety-four percent of marginally performing hospital CFOs nationally claimed that they are not prepared to handle new healthcare delivery and payment models with their current financial software. Comparatively, 89% of the top financially performing hospitals in the country report having the organizational technology tools to address modified payment strategies.

    There’s also no rest for the weary financial officer, the survey found. While senior financial officers struggled with the pressures of smaller operating incomes, rising labor and supply costs, shrinking volumes, reduced reimbursements, declining patient volumes and changing healthcare delivery models, 83% report that in the past fiscal year that they received add-on responsibilities that included organizational productivity, strategic technology and innovation growth initiatives.

    “In a noticeable shift since the acquisition of enterprisewide EHR systems led by CIOs, CFOs have become the executive charged with digital transformations to improve competitive advantages, strategic growth and innovation across all customer touch points, while measuring the technologies’ ROI,” said Doug Brown, president of Black Book.

    Indeed, there has been a huge shift in CFO involvement in recent years. In fact, 88% of CFOs report having increased involvement in their health system IT agenda since the implementation of their enterprise EHR, as compared to 14% in 2015.

    But this dramatic rise hasn’t been without friction:

    • 85% of all respondents stated that their current organizational structure prevents enhanced CIO-CFO collaboration. Eighty-nine percent of CEOs interviewed disagree with this statement.
    • 82% of CFOs stated that they have an insufficient understanding of IT issues as the barrier to them not being included in technology selections and approvals prior to 2014.
    • 84% of CIOs surveyed in Q4 2018 claimed the processes and tools in finance are incomparable to IT functions and remain a significant barrier to mutual understanding.
    • 90% of all respondents agree that the absence of key performance indicators that link IT agendas to financial performance greatly limits their success.
    • 98% of respondents strongly agree that it’s the healthcare CFO’s job to ensure their organization fully realize the benefits of technology investments, not the CIO’s job, in 2019.

    While the CFO’s role in technology has grown, largely due to the substantial impact of EHR adoption—and this has caused significant stress between the CFO and CIO in many health services organizations—the working relationship is showing signs of becoming stronger and more collaborative. The report found that the continuing lack in understanding on both parties to converge on strategies, investment mindsets, healthcare customer experience, business models and agendas continue to keep the barriers high for many.

    — George V. Hulme

  • Developers Have More in Common With Marketers Than They Think

    Developers Have More in Common With Marketers Than They Think

    Marketing professionals and developers together are critical in advancing customer experience

    More than a decade ago, in the early age of digital transformation, industry analysts and insiders began discussing the need for an increased focus on the collaboration between CTOs, CIOs and CMOs to achieve business goals. It was determined that CMOs would spend more on technology than their technical c-suite counterparts, thus creating an increased need for cross-functional alignment and cooperation.

    Today, we find the same kind of alignment is still required, but on an even deeper technical level—between developers and marketers. They are charged with the day-to-day operations of highly scaled and complex marketing operations driven by increasingly complex martech stacks. Companies across industries and markets are becoming more digitally oriented, so the need for seamless collaboration between business functions is mission-critical.

    There are many reasons for the perception that marketers and developers share completely different business priorities—from the trope of left brain versus right brain to completely different modes of operation, it has been assumed that marketers are practitioners of soft science and developers are entrenched in code. However, when you consider the nature of today’s modern marketing technology, you realize that both skill sets and sets of expertise are crucial to engaging, retaining and growing a company’s customer base.

    To marketers, developers can come across as unapproachable or highly focused internally on technical tasks that distance them from customers. To developers, marketers may seem less technically savvy and unsympathetic to the time requirements in technical projects and the juggling act and trade-offs that ensue for competing priorities. The result is an environment and dynamic in which one party often can feel the other has more control and say over the other. However, what we’re learning is that most of these sentiments are exaggerated or are changing as the business landscape continues to evolve. The truth is, marketers and developers have a lot more in common than they think.

    A recent survey of 500 marketers and developers at companies of all sizes uncovered the real truth behind this relationship and understand its inner workings. We looked at identifying their priorities, challenges and where they see success when it comes to their working relationship. Two things in particular stood out:

    1. Business alignment is overwhelmingly the key objective that both parties agree they need to effectively achieve to succeed.
    2. Customer experience is by far the highest priority where the two overlap.

    Broken down, 79% of marketers and 83% of developers agree that being aligned on business goals and priorities is a huge factor in being able to succeed in their roles. Developers cultivate this partnership in large part by recognizing that the work of marketers is becoming more data-driven and technical—a fact that 73% of marketers report being true.

    Meanwhile, customer success serves as the factor bringing marketing and DevOps closer together. Customer experience represents a critical driver to the success of any business, and on that, both marketers and developers passionately agree. Somewhat surprising, more developers (89%) than marketers (86%) agree with the notion that every touchpoint and interaction with a customer resolutely matters.

    The area where marketers and developers face their greatest disconnect is time. Forty-three percent of marketers feel they cannot get requests done promptly, while an overwhelming majority of developers (86%) are confident in their ability to deliver work within a requested time frame. When it comes to the development of new products or software, this is the biggest pain point for both, leaving each side equally frustrated when trying to appease the demands of the other. But with strategic marketing efforts, better collaboration and a more innate understanding of each others’ roles, marketers and developers can drive powerful business results.

    Here are just a few simple tips that can foster a more harmonious relationship between marketers and developers that results in real business value:

    • Marketers should involve developers in software evaluations as early as possible.
    • Developers should communicate the work required to accomplish a given request and any trade-offs that need to be made to curb marketers’ expectations.
    • Both parties should reconnect outside of specific projects to frequently share context about their goals, challenges and opportunities.

    That last tip is key, as the survey results show marketers and developers are more aligned on those factors than they realize. As the role of marketers continues to evolve in digital organizations and developers take note of this shifting tide, the two have the potential to wade each other through this massive wave of digital disruption. All it takes is walking a mile in each others’ shoes and realizing that both pairs fit.

    — Len Shneyder

  • DevOps Chat: ‘War, Peace & IT’ With Marc Schwartz

    DevOps Chat: ‘War, Peace & IT’ With Marc Schwartz

    Marc Schwartz is one of those rare individuals who is not only a great IT exec, but he also can analyze what works and doesn’t work and write it up in a way that helps others. His “A Seat at the Table” is still one of my favorite DevOps books.

    Marc’s new book is called, “War, Peace & IT.” You can download an excerpt of it here: dl.orangedox.com/WarPeaceITExcerpt

    In this DevOps Chat, we speak with Marc about the book and some of the lessons behind it. Have a listen and check out the book ASAP.

    As usual, the streaming audio is immediately below, followed by the transcript of our conversation.

    Transcript

    Alan Shimel: Hey, everyone, it’s Alan Shimel for devopsy.kinsta.cloud, and you’re listening to another DevOps Chat. I’m really delighted to have as my guest on DevOps Chat today none other than Marc Schwartz. Marc, if you don’t know, is an AWS executive, multiple author on some of the greatest books on DevOps you’re gonna read—”A Seat at the Table” is still one of my all-time favorites—and I think as he’s described in the latest blurb on IT Revolution, an iconoclastic CIO.

    Marc, welcome to DevOps Chat.

    Marc Schwartz: [Laughter] Thanks. I’m glad to be here.

    Shimel: So, Marc, what is an iconoclastic CIO?

    Schwartz: [Laughter] I like to question assumptions. You know, I find that, very often, people are frustrated. There are obstacles to what they’re trying to accomplish, and the problem is that they’re constrained in all sorts of ways, and if you don’t question the assumptions and knock away some of those constraints, they’re gonna continue to be frustrated—so, that’s what I’m all about.

    Shimel: Yep. I agree. So, I don’t want to spend a lot of time, but Marc, we mentioned you’re from AWS, but I didn’t really mention a role. Just so our audience, who may not be familiar—what currently is your role with AWS?

    Schwartz: They call me an enterprise strategist, and what means is, I’m part of a small team of ex-IT leaders, many of us ex-CIOs or CTOs of large enterprises who did digital transformation, moved to the cloud, and what we do now is, we work with executives from large enterprises to help them overcome some of the challenges that they face as they’re trying to do a transformation.

    So, often, it’s things like cultural change, or organizational change, or organizational structure, financing models, people skills, things like that. And we speak at conferences, we write books and blogs and we work with individual customers.

    Shimel: Very cool. No, let’s jump in, Marc. You’ve got a new book, just recently came out. It’s available on Amazon, by the way, in case anyone is interested, as well as Barnes and Noble, 800-CEO-READ, Indiebound, BAM and any other place where you can find decent books. It’s called “War and Peace and IT: Business Leadership, Technology, and Success in the Digital Age.”

    Marc, share with our audience—what’s the book about?

    Schwartz: Well, the book is essentially an answer to a challenge that people gave me after they read “A Seat at the Table.” Because, in “A Seat at the Table,” it was written primarily for IT leaders, and throughout that book, I made the argument that we needed to get rid of this business versus IT distinction, you know? The way we talk about the business and IT as if it’s two separate things, the way that we see IT as taking requirements from a business and executing on those requirements, but that way of thinking is no longer effective. We need to find a way to bring IT into the business itself.

    And people responded very well to that message in “A Seat at the Table,” but they said, “This doesn’t work unless somebody tells the business folks the same thing, you know? [Laughter] We can’t just change the relationship ourselves. So, somebody should write a book for the business executives to explain to them what you’re talking about.” And I realized that that same book, if I could write it, would also help a lot of the executives that I was talking to as part of my job who were facing impediments to their transformations.

    So, I wrote a book that essentially said, “One of the big impediments to your transformation is that the relationship between the business and IT is not the right relationship, and here’s how you can change it, and here’s why it will make a big difference for you.”

    Shimel: Excellent. So, you know, I think you laid it out pretty well there, Marc, for people. You know, I’m just back—we were talking offline and I told you I was at a KubeCon + CloudNativeCon in Barcelona last week and it was another great event, 7,500 people.

    And what really kinda hit me square between the eyes was the fact that though this is a fairly technical event, right? We’re talking about cloud native and a lot of open source software programs and ops procedures, the business angle of it, the amount of business people who are there trying to get smart about what’s the latest trends, what’s the wave, if you will, in IT, and how could they leverage things like serverless or Kubernetes and some of these newer things to make their business better, not necessarily because it’s cool or, you know, shiny trinket syndrome or anything like that.

    But really, how does—when does rubber meet the road with this technology? And, you know, I can’t help—I mean, I’m heartened by it, Mark, but I still don’t know if business executives are all bought into that.

    Schwartz: Yeah.

    Shimel: Your thoughts?

    Schwartz: Well, I don’t think it’s about the cloud, per se, or DevOps or whatever it is. What really is important is how the cloud and DevOps and new ways of doing IT empower businesses to do new things that they couldn’t do before. And I think that’s what the non-IT business executives need to learn about what’s possible now that was not possible before.

    And the reason why they have to, why it’s an urgent matter is because their competitors are, you know? Whatever tools you have available to you, your competitors also have, and if you’re not using them, and your competitor is, then you’re at a business disadvantage. And I think mostly, it comes down to a question of speed, one way or another. So, using the cloud well, using DevOps well, lets you move at a much faster pace to get IT capabilities to change your business.

    And that pace is important not just for the obvious reasons that you need time to market, you need to get first mover advantages, you need to respond quickly when you competitors disrupt you, but also for more subtle reasons, because we now use speed as a way to test out ideas quickly and see if they’re gonna work, and manage our risk by testing out ideas before we fully commit to them, and we use speed to get feedback from customers and users and alter our product offerings based on what we’re able to learn, and we use speed to mitigate risk to improve our security posture, to improve our availability of systems.

    So, speed becomes a really important factor, and the cloud, DevOps, you know, their technical implementations, but they happen to help companies achieve speed, and that’s the important message, I think, that executives need to take away.

    [su_pullquote align=”right” class=”do_blockquote”]I don’t think it’s about the cloud, per se, or DevOps or whatever it is. What really is important is how the cloud and DevOps and new ways of doing IT empower businesses to do new things that they couldn’t do before.[/su_pullquote]
    Shimel: I agree. But, you know, there’s an old saying—speed can kill. Great speed kills, too, right?

    Schwartz: [Laughter] Well, if you’re using the right model for speed, it doesn’t kill, and the reason for that is that the models that use speed usually also use automated controls or guardrails. So, what you want, and the idea is, you want to be able to move really quickly, but within the boundaries of guardrails that enforce compliance, enforce security, enforce quality and it’s possible to do both. We always thought, in the past, that there was this trade-off between speed and stability or speed and quality, and it turns out that, in this DevOps world, in this cloud world, speed—increased speed actually increases quality, resilience, availability, security and all of those things. It’s a question of learning how to use speed for those purposes.

    Shimel: Yeah. And that’s really—I mean, tongue in cheek, speed kills. What I was really trying to get at is, speed for speed’s sake alone is, you know, speed has to be wielded—with great power comes great responsibility, right?

    Schwartz: [Laughter] Yes. You have to achieve the speed for competitive reasons and for business model reasons, as I was saying before. So, it’s not really an option, but you do, at the same time, have to learn how to use that speed as a way to reduce risks and improve the quality of what you’re offering.

    Shimel: Exactly, exactly. So, what’s the reception been, Marc? What kind of feedback have you been getting from people?

    Schwartz: Well, the book was just published a couple of weeks ago, really. Where are we? Yeah, May 14th was the publication date, so a couple of weeks. And people seem to be enjoying it. I was a little bit playful in writing the book, and I think there are some aspects of it that are entertaining people, and that makes me feel very good.

    But from the feedback that I’ve been getting, people are seeing it as the successor to that previous book, just as I had hoped. You know, this is the way of looking at a similar message, but very much from the point of view of non-IT business executives. You know, how should the CFO be thinking about the new world, the new digital world, how should a CEO be thinking about it, how should the board of directors be thinking about it? And I’m very happy that people see it as valuable on that front, and a lot of people are saying, “Well, I’m gonna have my entire executive team read this, and it’s gonna stimulate some great discussions,” so I’m very happy about that.

    Shimel: That’s fantastic, great stuff. Let me bring in another aspect of it and get your thoughts on it, Marc. You know, we’ve heard a lot over the last, I’ve heard it maybe over the last year or 18 months—DevXOps, right? We have DevSecOps, DevBusOps, DevHROps—DevWhateverOps, right? DevXOps. And I think there’s a little bit of a reverse equation, here. Business leaders have to be more involved in IT and have to learn how to harness IT to further their businesses’ goals and delight customers, as you say, right?

    At the same time, we can take lessons from IT and things we’ve learned in IT with things like DevOps but not only DevOps. But IT has had, in a relatively short period of time, had a rather torturous road of self-improvement and of learning new things and evolving to things like DevOps that we see. What can businesses do—not harnessing IT, per se, but maybe saving some idiot taxes?

    Schwartz: [Laughter]

    Shimel: You know, from mistakes and lessons learned from IT and apply them to general business?

    Schwartz: Yeah. I think—I also joke about DevOps, DevSecOps, DevSecBizOps, DevSecFinBizOps—you know? You can keep adding to that.

    The real point is cross functional teams, right? DevOps meant we’re gonna have a cross functional team that has dev skills and ops skills, and at some point we realize that that set of skills is not quite enough, they also need to have security skills and you can keep adding to that infinitely, because the bottom line is that functional silos don’t work very well in a fast moving environment like we have in the digital world today. Functional silos slow down your response, they slow down your ability to innovate and grasp new opportunities and respond to change and things like that.

    So, that’s really what was behind the DevOps, DevXOps concept. And I think businesses find this, in general, that when you have functional silos and they operate as silos, you introduce waiting time when you pass things from one silo to another. You reduce innovation because each silo thinks of itself as having its own responsibility instead of joint responsibility for results.

    So, the lesson that I think everybody can take away from what’s happened in IT is that, to respond quickly in an environment where you need to respond quickly, you have to do away with silos and instead focus on cross-functional teams that [Background noise] objective. At least, that’s my biggest takeaway.

    Shimel: Sure, sure. [Background noise] I’m sorry, my machine’s—uh oh, here we go. You know, I’m on my, I’m not gonna give you the brand of the surface I’m on. There’s only one company that makes surfaces.

    Schwartz: [Laughter]

    Shimel: It’s on a roll of reminders.

    Schwartz: Excellent sound effects.

    Shimel: It doesn’t shut up, here. Look at this, this is—

    Schwartz: That’s okay, we could use some background music.

    Shimel: Yeah, I guess so. It’s happening—I don’t know if I like the rhythm, but anyway. [Laughter] So, Marc, a good question is—look, you’re globetrotting around the world evangelizing your AWS role and everything. And yet, you know, over the last, let’s say, three years, four years, you know, this is the third book, actually, isn’t it?

    Schwartz: Yeah. It’s the third one, and I’ve started to work on a fourth.

    Shimel: Can you give us a sneak preview of the fourth, or it’s too premature yet?

    Schwartz: Well, it is too premature. It can go in lots of different directions, but I can tell you what I’m thinking a lot about right now, which is bureaucracy and how to overcome it on the one hand, but even more than that, I think you can harness it in many ways, if you are trying to become a digital organization.

    And, you know, I think that fulfills my role as an iconoclast. I think bureaucracy is one of those words that people have a very strong negative reaction to. But, of course, in my role before AWS as a government CIO, I, of course, witnessed, experienced a lot of bureaucracy and developed strategies for coping with it that I think would be useful to a wide audience. So, I think I’ll probably write something that has to do with that.

    Shimel: Okay, pretty cool. And you know what? We mentioned “A Seat at the Table” and, you know, there’s nothing like your first book, but I feel amiss if we shouldn’t also mention the title of the second book, right, and that is “The Art of Business Value,” right?

    Schwartz: Yeah. “The Art of Business Value” was sort of my initial train of thought. You know, I said to myself, we’re talking a lot about business value and how important it is to guide what you do in the IT world by delivering business value and how you should make prioritization decisions by business value, and it occurred to me that nobody was really talking about what that meant, you know? What is business value, exactly?

    And when I looked into it, I realized that people were not really interpreting it, in many cases, in the best way, and that if you thought a little bit more deeply about that, it would change the way that you practiced IT.

    So, that was what drove that first book, and in that book, I introduced the question of what does a CIO have to do with figuring out what business value is? How does a CIO make sure that he or she is delivering business value? And I realized that that was a good topic for a second book, actually. [Laughter] Something that I really needed to dive more deeply into. So, that’s what generated “A Seat at the Table.”

    And then, as I said before, once I had written “A Seat at the Table,” it was sort of clear to me what the next thing had to be. It had to be the book that I hope will speak to non-IT business leaders. So, that explains the sequence of the three books in my head.

    Shimel: Very cool. So, Marc, is there a tour going on with the book? Are you out speaking—I mean, are you gonna be, for instance, at DOES: London, coming up?

    Schwartz: I will be there. I speak at a lot of conferences in my role with AWS, and so, I’m on a permanent tour, essentially. [Laughter] I speak all over the world, and of course, I write blog posts and I’ll be writing some more books. And it all ties together with my role at AWS, where I’m part of a team that’s trying to lead enterprise executives into the future. You know, here’s the way that we see things developing, here’s how you can take advantage of what’s going on with the cloud and with DevOps.

    And so, I don’t have a speaking tour specifically about my book, but a lot of the topics that the book touches are also the topics I talk about for AWS.

    Shimel: Great. Great, great, great. Marc, we’re about out of time. We mentioned you can get the book on Amazon. Up on devopsy.kinsta.cloud, I think we have a link to a, I don’t know if it’s the first chapter or an excerpt of the book. We’ll put that in the show notes.

    Look, man—first of all, congratulations on what sounds like another great book. I’m actually, I’m gonna be on the road a whole bunch in June, so, I’m gonna have a chance to catch up on my reading on planes and stuff, so I’ll get a chance to read this one. And then maybe we can circle back, maybe at the end of June in London, and we can talk a little bit more in depth about it.

    Schwartz: Uh huh. Sounds great.

    Shimel: Great. Hey, Marc Schwartz—iconoclast, CIO, or iconoclastic CIO as well as multiple award winning author, a real DevOps expert. His newest book, “War, Peace & IT,” you can find out more, get an excerpt from it on devopsy.kinsta.cloud, you can get it on Amazon or any number of good quality book sites.

    Hey, Marc, congratulations, and thanks for being our guest on DevOps Chat.

    Schwartz: Thank you very much.

    Shimel: Alright. Enjoy your day and we’ll be in touch.

    Schwartz: Thanks.

    Shimel: Alrighty. Bye bye. This is Alan Shimel for DevOps Chat and devopsy.kinsta.cloud. Have a great day.

    — Alan Shimel