12 Supplier Capabilities: Part I

Mary Lacity, David Feeny, Leslie Willcocks
INTRODUCTION

As the IT and BPO markets mature, customers expect more ambitious outcomes from suppliers beyond cost savings on baseline services. Customers want suppliers to completely transform their back offices: they want slick shared service facilities; superior services; reengineered business processes; integrated technology including self-serve, Web-based applications; highly empowered back-office leadership; and motivated back-office staff. Some customers even expect suppliers to commercialize their back offices once the transformation is complete.


Selling Blades Instead of Razors

Tom DeMarco, Cutter Business Technology Council, Cutter Business Technology Council, Cutter Business Technology Council
Domain

IT industry

Assertion 152

The current prevailing mechanism of software pricing is doomed; what will ensue is a period of chaos followed by the emergence of a services model in which supplying free or nearly free software is the price of doing business.


Selling Blades Instead of Razors

Tom DeMarco, Cutter Business Technology Council, Cutter Business Technology Council, Cutter Business Technology Council
Domain

IT industry

Assertion 152

The current prevailing mechanism of software pricing is doomed; what will ensue is a period of chaos followed by the emergence of a services model in which supplying free or nearly free software is the price of doing business.


Selling Blades Instead of Razors

Tom DeMarco, Cutter Business Technology Council, Cutter Business Technology Council, Cutter Business Technology Council
Domain

IT industry

Assertion 152

The current prevailing mechanism of software pricing is doomed; what will ensue is a period of chaos followed by the emergence of a services model in which supplying free or nearly free software is the price of doing business.


Embedded Systems

Tom Welsh

How often have we been told that "85% [or 90%, or whatever] of the world's computers run Windows"? In fact, the PC market, which Windows dominates, is just the visible tip of a computing iceberg. The world's most widely used operating system is ITRON, a real-time kernel for embedded systems (ES) standardized in Japan [5]. Part of the even bigger TRON initiative launched in 1984, it runs inside huge numbers of phones, cameras, CD players, and other portable devices. As of 2003, ITRON was deployed in an estimated three billion microprocessors.


Embedded Systems

Tom Welsh

How often have we been told that "85% [or 90%, or whatever] of the world's computers run Windows"? In fact, the PC market, which Windows dominates, is just the visible tip of a computing iceberg. The world's most widely used operating system is ITRON, a real-time kernel for embedded systems (ES) standardized in Japan [5]. Part of the even bigger TRON initiative launched in 1984, it runs inside huge numbers of phones, cameras, CD players, and other portable devices. As of 2003, ITRON was deployed in an estimated three billion microprocessors.


The Future of Business Intelligence Is in People, Not Technology

John Berry

The old saw about business intelligence (BI) technology is that it was only as effective as the data it analyzed. True but incomplete. The trend today is for an increasing number of organizations to discover that BI technology is as effective as the ability of the targeted user to meaningfully interpret what the software's front end presents from that high-quality data store. What trends and impacts around this class of technology might emerge out of this recognition? They might have more to do with people than actual technology.


The Future of Business Intelligence Is in People, Not Technology

John Berry

The old saw about business intelligence (BI) technology is that it was only as effective as the data it analyzed. True but incomplete. The trend today is for an increasing number of organizations to discover that BI technology is as effective as the ability of the targeted user to meaningfully interpret what the software's front end presents from that high-quality data store. What trends and impacts around this class of technology might emerge out of this recognition? They might have more to do with people than actual technology.


The Maturation of Risk Management

Robert Charette

In 2002, Cutter Consortium conducted its first comprehensive survey of the state of risk management practice in the IT community [1]. The survey found that some 86% of organizations responding claimed they were practicing risk management, and 51% of those were practicing it in a disciplined, formal manner. From reports in general software literature, surveys on risk management and its relationship to capturing lessons learned, anecdotal experience, and so on, the practice of risk management seems to have grown both generally and in formality over the past four years.


Management's Performance Levers

Jim Highsmith

Over the last four to five years, I've worked with a significant number of product companies (software, hardware/software, and software services, for example, on-line banking) in implementing agile development and project management practices. More often than not, these agile transitions are viewed by management as a "development" transition and not a management transition.


Outsourcing: Not As Bad or As Good As IT Seems

Lou Mazzucchelli, Tim Lister, Tim Lister, Tim Lister

Cutter Consortium recently surveyed 132 organizations worldwide to explore interest in and adoption of various relatively new IT technologies. Cutter Fellows Tim Lister and Lou Mazzucchelli analyzed the data on IT Trends in 2006, and here are their thoughts on the topic of outsourcing:


Outsourcing: Not As Bad or As Good As IT Seems

Lou Mazzucchelli, Tim Lister, Tim Lister, Tim Lister

Cutter Consortium recently surveyed 132 organizations worldwide to explore interest in and adoption of various relatively new IT technologies. Cutter Fellows Tim Lister and Lou Mazzucchelli analyzed the data on IT Trends in 2006, and here are their thoughts on the topic of outsourcing:


Software As a Service

Mike Rosen

One of the reoccurring themes in the press these days is SaaS or Software-as-a-Service. And, like most hot new buzzwords, it means different things to different people.


Effectively Communicating IT'S Business Impact to Business Executives

Bob Benson, Tom Bugnitz, Tom Bugnitz, Tom Walton, William Walton, William Walton, Kaleb Walton

We often encounter CIOs with a common complaint: business executives demand more business impact and less cost from IT. When we explore the issues with these CIOs, we discover that the problem is more fundamental: the IT organization has been incapable of communicating IT's business impact to business executives. That is, other than IT's cost (the cost of IT borne by the business units), the IT organization has not (credibly) communicated the impact and value of what they do to the business executives who pay the bills.


Business Rules as a Service

Curt Hall

No doubt about it, the software as a service (SaaS) model has taken on a life of its own. It seems that hardly a day goes by without some vendor announcing some sort of new service offering. Even the business rules management system (BRMS) vendors are jumping onto the SaaS bandwagon.


Outsourcing, Minus the Spin

Steve Andriole

There have been a lot of "studies" on job migration and outsourcing over the past five years that try to position outsourcing as something political: outsourcing creates jobs; outsourcing is the inevitable consequence of globalization; outsourcing will destroy the US labor force. But what's really going on? How do we avoid the spin that proponents and critics of outsourcing present every time the topic comes up?


100 Major Threads

Ken Orr

This is, by my records, my 100th Trends Advisor (O.K., I'm compulsive about some things). Over the last four years or so, I have weighed in on a large number of topics, so this seems like an auspicious time to look at the bigger picture: what are the major threads (concepts/trends) that are affecting the business/IT world today? Here's my short list:


100 Major Threads

Ken Orr

This is, by my records, my 100th Trends Advisor (O.K., I'm compulsive about some things). Over the last four years or so, I have weighed in on a large number of topics, so this seems like an auspicious time to look at the bigger picture: what are the major threads (concepts/trends) that are affecting the business/IT world today? Here's my short list:


Pathways to the Future

Robert Charette, Scott Stribrny

Fifty years ago this month, on 30 June 1956, there was a mid-air collision between a United Airlines DC-7 en route to Chicago from Los Angeles and a TWA Lockheed 1049 Super Constellation en route to Kansas City, also from Los Angeles, over the Grand Canyon, that killed 128 passengers and crew (for more details, see the complete story).


Pathways to the Future

Robert Charette, Scott Stribrny

Fifty years ago this month, on 30 June 1956, there was a mid-air collision between a United Airlines DC-7 en route to Chicago from Los Angeles and a TWA Lockheed 1049 Super Constellation en route to Kansas City, also from Los Angeles, over the Grand Canyon, that killed 128 passengers and crew (for more details, see the complete story).


May You Live in Interesting Times: An Agile Approach to Risk Management

Donna Fitzgerald

A recent discussion on the NewGrange list server [1] began with the question, "Is there really anything that a project manager does that is more important than risk management?" As the discussion unfolded, there was a general consensus that a risk-centered perspective would definitely stand any project management in good stead. With that in mind, I would like to suggest a few risk-centered activities that are in keeping with an agile risk management.


Certification of Knowledge Transfer in BPO

John Berry

Knowledge transfer represents a critical stage in the transition phase of a business process offshoring (BPO) project. Often, the offshore service provider (OSP) staff, although skilled, might lack specific expertise unique to the specific business processes they will oversee.


Certification of Knowledge Transfer in BPO

John Berry

Knowledge transfer represents a critical stage in the transition phase of a business process offshoring (BPO) project. Often, the offshore service provider (OSP) staff, although skilled, might lack specific expertise unique to the specific business processes they will oversee.


Automating Compliance with Business Rules Management Systems

Curt Hall

Compliance applications have become a major driver for organizations to apply business rules management systems (BRMS). By externalizing rules from critical processes and applications, organizations can create a centralized repository of compliance rules that they can apply across different departments, divisions, and channels, thus helping to standardize and coordinate company-wide strategies for meeting company and governmental regulations such as BASEL II, Sarbanes-Oxley, and Do-Not-Call.


Perspectives on Implementing Knowledge Management

Karl Wiig

The reasons why enterprises pursue systematic knowledge management (KM) are clear: they wish to make people -- and the whole enterprise -- act intelligently to operate more effectively and satisfy their stakeholders better. However, practical issues of how to approach, introduce, or expand KM practices are complex. When KM practices are implemented in an enterprise, the efforts become continual processes that will go on for years.