This month's installment of CBR takes a look at a trend that we see emerging, even though it may not be a reality (yet) for many of our readers. This topic, that my colleague Rick Watson and I call the “digital data genesis capability,” represents the notion that organizations must, in order to stay competitive in the future, develop the ability to embed digital computing equipment and IT in organizational processes to serve goals other than transaction processing, thus creating data in digital form and capturing it at its inception.

Dynamic capabilities are often considered to be the factor that justifies the different degrees of success that organizations in turbulent environments experience.1 For example, the capability to develop new products can make the difference between a commercial success and an utter flop. Unfortunately, many organizations have trouble developing dynamic capabilities. This knowledge gap bereaves managers of a set of tools and methods to improve the performance of their organization, which is particularly important during economic downturns.

The economic upheaval that began in 2008 has created a business environment like no other. To survive, companies must reduce costs in every aspect of the business -- no expense can go unexamined. Many departments will suffer drastic reductions, but those that are well managed and deliver results are more likely to go unscathed. IT, with its not insubstantial budgets, is still one of the most difficult functions to measure for its impact on the business and will likely see unprecedented scrutiny.

This installment of CBR was an experiment. Rather than following our standard process, we decided to write about an emerging topic, that of digital data genesis (DDG). While the economic value of data and information has been recognized by both academics and management for quite a while now, organizations typically focus on analyzing data that emerges as a byproduct of other processes. That is, the norm is to analyze data, typically transactional data, captured by transaction processing systems -- almost as an afterthought.

SURVEY DEMOGRAPHICS

Are you computing in the clouds -- working with a constellation of computing resources accessed via the Internet? If not, you will be sooner or later. Cloud computing, touted to be the next big thing in IT, promises to offer utilitylike availability of huge computing resources and is attracting lots of interest among the IT community and businesses.

Are you computing in the clouds -- working with a constellation of computing resources accessed via the Internet? If not, you will be sooner or later. Cloud computing, touted to be the next big thing in IT, promises to offer utilitylike availability of huge computing resources and is attracting lots of interest among the IT community and businesses.

Like electrical service, computing has now become a utility. You can draw on your required computing resources -- hardware, software, storage, applications, and infrastructure -- when and where you need them and in the amount you need.

Like electrical service, computing has now become a utility. You can draw on your required computing resources -- hardware, software, storage, applications, and infrastructure -- when and where you need them and in the amount you need.

You only find out who is swimming naked when the tide goes out.

-- Warren Buffet, chairman of Berkshire Hathaway

In Warren Buffet's parlance, the financial tide is now well out, revealing a plethora of companies that decided to go skinny-dipping. One reason for so many companies' nudity in the current financial climate has been the massive failure in enterprise decision making with regard to risk, unintentional as well as intentional. A few vignettes illustrate the magnitude and depth of this failure.

ERM has received its share of the blame for the current financial mess. While there are some problems with current practice, it needs a bit of fixing, not wholesale renovation.

As currently practiced, ERM is useless at best and creates increased enterprise risk at worst. The role of ERM in organizations requires a complete rethinking.

ERM has received its share of the blame for the current financial mess. While there are some problems with current practice, it needs a bit of fixing, not wholesale renovation.

As currently practiced, ERM is useless at best and creates increased enterprise risk at worst. The role of ERM in organizations requires a complete rethinking.

In the introduction to this issue, Guest Editor Bob Charette asks whether we need to rethink enterprise risk management. We need to do some rethinking all right, but risk management practice is the least of our problems. All of our risk management models, frameworks, theories, and templates will continue to fail, no matter how elegant, sophisticated, integrated, or beautifully drawn they are.

In the introduction to this issue, Guest Editor Bob Charette asks whether we need to rethink enterprise risk management. We need to do some rethinking all right, but risk management practice is the least of our problems. All of our risk management models, frameworks, theories, and templates will continue to fail, no matter how elegant, sophisticated, integrated, or beautifully drawn they are.

Effective risk management is difficult. While our theoretical understanding of risk management and decision theory continues to evolve, the practical implementation of that theory in the real world has been an uphill battle with frequent setbacks. While most executives are quick to acknowledge that risk management is an essential enterprise practice, few can honestly point with pride to the broad accomplishments and sustainability of those efforts.

Effective risk management is difficult. While our theoretical understanding of risk management and decision theory continues to evolve, the practical implementation of that theory in the real world has been an uphill battle with frequent setbacks. While most executives are quick to acknowledge that risk management is an essential enterprise practice, few can honestly point with pride to the broad accomplishments and sustainability of those efforts.

Organizational politics presents a risk not often accounted for by risk models. It creates one of the many components of risk management risk -- that is, the risk that the risk management process itself is inadequate.

Organizational politics presents a risk not often accounted for by risk models. It creates one of the many components of risk management risk -- that is, the risk that the risk management process itself is inadequate.

The recent meltdown on Wall Street and in other financial centers serves to highlight the flip side of opportunity and potential. On 29 September 2008, following some modest sell-offs in stock markets in Asia, the Dow Jones Industrial Average plunged by 778 points, a 7% drop over the course of a single day. In just over six hours, more than $1.2 trillion was wiped off the value of US industry -- the first time a daily loss exceeded $1 trillion and the blackest day since the 1987 Wall Street crash.

The recent meltdown on Wall Street and in other financial centers serves to highlight the flip side of opportunity and potential. On 29 September 2008, following some modest sell-offs in stock markets in Asia, the Dow Jones Industrial Average plunged by 778 points, a 7% drop over the course of a single day. In just over six hours, more than $1.2 trillion was wiped off the value of US industry -- the first time a daily loss exceeded $1 trillion and the blackest day since the 1987 Wall Street crash.

You only find out who is swimming naked when the tide goes out.

-- Warren Buffet, chairman of Berkshire Hathaway

You only find out who is swimming naked when the tide goes out.

-- Warren Buffet, chairman of Berkshire Hathaway

The need for a new type of professional has quietly emerged below the radar and onto the project landscape.

Systems development, business analysis, and project management are now very mature, as are the lifecycles that support them. We have Scrum, RUP, Feature-Driven Development (FDD), and several others.