Showing posts with label How to engage a CIO. Show all posts
Showing posts with label How to engage a CIO. Show all posts

Monday, November 12, 2012

Why CIOs don't like Jalebi


Happy Diwali to everyone !

Jalebi is an Indian sweet (also eaten as dessert) extremely popular in the northern part of the country though now available internationally in Indian restaurants. It has a complex circular structure; the photo is one such representation of what a Jalebi can look like. In recent times, Jalebi was made famous by a Bollywood actress with the character named Jalebi bai. I have always been fond of Jalebi though in recent times have reduced my indulgence.

The CIO had great expectations when meeting the team from the most popular tablet vendor in the world who were pitching for an innovative solution. The large team comprising tab vendor, sales partner, and solution provider looked brazenly confident and rightly so considering the aspirational value of their product. Rarely were they in situations where they had to discuss the merits and advantages of their device; everyone justified internally why they wanted their solution and they just made truckloads of money

The internal customers were already sold on the device not the solution despite its shortcomings for the specific business need which required significant internal change. The business head had been aligned to the device (not the solution) and the meeting was expected to be a cakewalk. Despite the iconic nature of the device, the technical team was wary going into the meeting; not many enterprises had deployed on the scale that was envisaged and in challenging environmental conditions.

The meeting started well with a summary of the proposed solution, similar deployment in developed markets though on a smaller scale and how they can change the way business is done. The technical lead started asking a few questions which they tried to brush aside. He persisted as the support burden would fall upon him and he had to be sure. With amazing clarity of thought he laid down the questions that would determine the fate of the project in the long-term.

The vendor sales head started to justify the value proposition by talking about how the device has gained popularity globally and caught the imagination of the consumer. Their dominant market share is a validation of how well their device works. The number of solutions available on the device outnumbers all other competitors put together. They have been continuously innovating on making a better device. He went on and on, on the merits of the hardware sidestepping the pointed questions.

The discussion was going nowhere so the CIO intervened and sought specific answers to the specific questions. He clarified that the decision was contingent on the ability of the overall solution including the device to work as expected. If there are no workarounds or ready solutions, then they will have to explore alternatives. The long stories cut no ice, come straight to the point and stop going round in circles. After moments of silence, the meeting proceeded to its logical conclusion quickly.

In the post meeting debrief, many in the room almost in unison associated the past hour spent to the vendor making Jalebi. He avoided giving straight answers to most questions instead preferring to remain vague in his responses. Any love for the vendor by association to the device soon evaporated leaving everyone impatient to get over with the charade. Business does not and cannot accept the nebulous and imprecise when working to solve a determinate problem.

With tolerance levels reducing and options increasing to solve real business problems, vendors have their task cut out for them; the business and the IT teams are working collaboratively to arrive at solutions.  The discussion is focused on what matters, the scenario is the same internally too; no more beating around the bush or running around trees. The Jalebi is great to eat not considering the calories it adds; go on a diet, keep it away from the meeting room.

Monday, November 05, 2012

Stop Selling Part 2 or how to accept a No


The solution expert across the table looked crestfallen; his manager besides him attempted to calm his frayed nerves while the account manager to his right did not know where to look. The CIO had advised them that the solution was not relevant to his future needs and the discussion was over. Breaking the uncomfortable silence, the manager sought to find a silver lining in the cloud, a sliver of hope that there may be a faint opportunity in the future ? Firmly declined the CIO; then things started going out of hand!

The starting point of the meeting was the aspiration of the incumbent solution provider to retain the customer who had decided to move to a competing solution. Over the years that the company had been using the solution, the relationship was managed by vendors’ partners with the principle staying hands off. Challenges with the implementation and support were largely managed by the partner. As the company started feeling the pinch of a suboptimal deployment and support, they sought alternatives.

The alternative solution was not really an alternative but an industry leader with now a dominant local and global market share. After multiple futile attempts to reach across the teams of the incumbent provider, the CIO gave up and started working with layers of his enterprise to gain their support for a disruptive transformation and go with the market leading solution. As the news reached the incumbent, their leaders started arriving in droves to rescue the situation; this was one such meeting.

Unwilling to accepting “No” to his plea the expert started challenging the decision making criterions’ stating his solution was as good if not better than the competing product which had a higher TCO (Total Cost of Ownership). While the number of customers today may be lower, the new upcoming product would compete head on. All other things being equal, why did the CIO not get this ? Why was he insistent on going with the other expensive solution with significantly higher license and implementation costs ?

The exasperated CIO raised his voice a notch and stated that ROI and TCO were not the primary factors for the decision; the company had lost faith in the incumbent solution and the vendors’ ability to support the new business requirements. The company needed a better and globally accepted solution. Their solution has not found favour within the industry after so many years and neither has the vendor engaged with the company in a way that induces confidence; so no point continuing the discussion.

Desperation defying logic, the red in the face expert could not face the ignominy and wanted to know what he or his company could do to retain the business. How can he prevent the entry of the competing product and solution ? He was now clutching invisible straws. The account manager wished the earth would swallow him, while the boss-man tried to pacify the agitated expert. The amused CIO simply said “I don’t have to answer your questions; this meeting is over” and walked out of the room.

Selling is an art as much as a science. Peter Drucker postulated “A customer never buys what we sell”. The transaction completes when the need to sell is aligned to a need to buy. In the absence of a balanced equation, the relationship sits on a weak foundation; then the possibility of successful execution is reduced leaving everyone vulnerable. Unfortunately an open dialogue is rarely understood or appreciated today in our target pressures driven by monthly, quarterly or annual budgets.

I believe that vendors should learn to accept “No” as much as they like to hear good news. Every time every one cannot get a favourable deal; someone will be deprived of success. Don’t push beyond the break point lest you end up compromising relationships. The CIO too should not be swayed by these tactics, pressure from other CXOs, or end-of-season sale kind of deals. The relationship is based on demand and supply as much as on trust and respect. Any change in the equation will have an impact.

Monday, October 15, 2012

Stop Selling !


Recently I had interesting discussions with a couple of “technology experts” separately brought in by their respective companies to help us design the best possible solutions. There was no correlation between the two opportunities or the technologies that represented the solutions; the behavior of the experts representing very large companies was indistinguishable like they were twins separated in early childhood but grew up to mimic each other in their approach to providing a solution to an opportunity.

After months of “engaging” on various opportunities to create new innovative differentiators for the enterprise with many vendors, the narrowed down list comprising the two vendors decided to bring in their technology architects. They needed to hear the expectation from the horse’s mouth and clarify the requirement before proposing the solution. I do not believe the problem or the solution is relevant here but the overall approach, methodology and intent is the focus; so I will restrict to the human side.

Now when you have a set of experts in the room, the expectation changes; for the benefit of everyone I repeated the proposition and outlined the need and the want. Everyone nodded and the expert asked a few pertinent as well as tangential questions. Addressing them and moving on to the framework of solution design the patience level of my team started waning until the experts decided to present the final solution using a set of slides. Very quickly the dam broke and …

The experts knew the subject and how their solution works, its limitations in real life situations. The discussion and clarifications were to validate if the solution would fit in, which is fair. Having said this, the direction the dialogue took was totally different. Instead of working with the team to flesh out the solution, the experts started a sales pitch on why we should choose their solution ! Any interruptions were brushed aside with an air of “I know what is best for you and let me tell you why”.

The relationship managers sensed the total disconnect and tried to intervene without success. The experts in overdrive mode bulldozed ahead ignoring body language and voices of protest. It took some effort to close the meeting which was making no sense or headway. Trying some steps in damage control, the account managers separately mentioned that they will revert to the team with options to take the initiative ahead.

With no acceptance or alignment of the solution a discussion on the Bill of Material (BoM) is a sheer waste of everyone’s collective time. The ROI or TCO matters only when the customer acknowledges that the solution is appropriate for the enterprise. You don’t sell until you know that your solution has acceptance and that it meets requirements and business goals. Was the need to sell so desperate that they risked alienating a reference customer or professional arrogance that consummates such behavior ?

In the current economic scenario the pressure to sell is evident on almost every company; that does not condone such tactics and behaviors  their pervasiveness scares me. I believe that vendors need to work with their customers to evolve any solutions and gracefully walk away should there be a stretch to fit their wares. It would be an undesirable situation where their key customer the CIO is not willing to come to the table or shuns these meetings. Maybe it is time to start exploring vendor-IT-business alignment ?

Stop Selling Part 2

Tuesday, October 25, 2011

(Why) Should CIOs be interested in LAN cabling or UPS batteries

I attended a CIO gathering which had an UPS battery manufacturer as one of the key sponsors. The presentation discussed the merits of one battery technology over the other; they offered a promise of higher reliability that matters to any CIO. So I started asking the half a dozen CIOs on my table if they knew which batteries their UPS in the data center or office premises used. Only one knew the answer.

A few days back a senior editor of a respected publication that also conducts small gatherings of CIOs asked me if I would be interested in attending a dinner sponsored by a structured cable vendor. He spoke in jest and wondered if he would be able to gather an audience numbering double digits. I kind of concurred with him as cabling was the last thing on my mind. I don’t remember when was the last time I reviewed cabling standards or attended a meeting with a cabling vendor.

I must have written many times on the new age CIO and the transformation over the last decade. I think that petabytes of information exists on this subject which any search engine will throw up. No event is complete without a discussion on what are or should be the CIO role or priorities. Everyone agrees that the IT leader is a business leader first and technology expert later. As a leader, s/he is expected to demonstrate behaviors no different from the CEO, CFO or any other CXO.

The CIO through his/her team gathers expertise on various technologies and related domains. These teams typically along with principal vendors, external service providers, and system integrators form an ecosystem that provides the basic and advanced solutions that enable and empower any enterprise. In every enterprise the deputies who form the IT Management and Operations team ensure that every day billing happens, manufacturing plants hum, goods leave the warehouse, call centers receive customers, sales people sell, finance teams collate figures, external partners get information due; in a nutshell, the world continues to move on despite random failures that occur at all levels.

In today’s world where most technology components (be it hardware, software, or connectivity) find it difficult to differentiate approaching commoditization, choices are influenced by existing long-term relationships between enterprises or people, or a significant price difference. Quality of Service is the only other determinant factor. New disruptive paradigms in the last few decades have kept every CIO on his/her toes to keep the enterprise competitive and current. But then there are some who haven’t.

So coming back to our battery vendor and the cable manufacturer, are these critical and high on the list of priorities of the CIO to demand his/her attention ? Should s/he undertake strategic meetings with the Management or Board on kind of cabling is being laid or the merits of one battery technology over the other ? What would happen if the battery bank failed and servers went down or storage disconnected due to a loose patch cord ?

I believe that the IT Infrastructure Head and his/her team under the CIO are tasked and are or should be empowered to deal with this. The ball however always stops with the CIO being answerable. But then every CXO depends on their teams to deliver and does not necessarily get down to micro-management. On an analogous note, is the CMO in trouble if lights on an outdoor hoarding go off ?

Monday, September 12, 2011

The Elastic CIO

Last week I happened to be in a panel discussion with some CIOs who were expected to debate on “Improving Enterprise Efficiency”. The sponsor management personnel on the table listened attentively and sometimes also asked intelligent questions to the CIOs. The expert moderator balanced the discussions well jumping from one to another keeping everyone engaged. Unfortunately the enticing headline inevitably focused on server virtualization, private cloud, and VDI as the key theme.

How do you create a link between responsive IT systems to Enterprise efficiency and Business IT Alignment ? The question had everyone stumped and the answer emerged as the lack of responsive systems would imply time wasted by the employees; thus response times are important to efficiency. Intuitive and elementary, so what is the debate ?

Taking another element of research over the last decade on significant portion (estimates vary from 50 to 90%) of IT operating expense is expended on maintaining the lights on or business as usual. So reducing this piece of the pie will presumably shift the budget towards innovation and not as savings. This shift of expense to investment if prudent and allocated to virtualized servers will improve the efficiency of the enterprise. And we will all live happily ever after !

If through some magical process or non-empirical derivation two unrelated pieces of research can be correlated, then as suggested by the Chaos theory, anything can influence the outcome of what the IT organization creates, manages or improves upon. It could be sun spots, or a butterfly in eastern Asia; or global warming might provide insights.

Above is just a sample; simplistic evaluation models defined to justify generic technology investment have almost become the norm. Even when the specific context may not apply, the push to sell is discomforting and creates an auto pushback. Confused, the CIOs have been struggling to divert the discussion to their technology team which is better equipped to discuss alternatives and how they align to enterprise architecture.

The elasticity of hypothesis amuses and at the same time frustrates. Nowadays the headline proposed at any event or by a consultant or vendor speaker has rarely any connect with the subject. The stretch of imagination belies conventional and sometimes unconventional wisdom. However, despite repeated occurrences, the bait still works in getting CIOs excited to come and participate.

The elasticity expected from the CIO goes against the business aligned IT leader with a dialogue that is expected to straddle server provisioning or data centre cooling to improving customer service with process redesign using video analytics, or complex transport management. The diversity of expertise with deep levels of understanding creates a superman like persona who is discussing code optimization with the programmers and engaging the board on shareholder value.

The latter is still rationale and achievable with some hard work, some help and coaching, but the former in which unconnected factoids create an opportunity for specific technology breaks the rubber band.

Tuesday, August 23, 2011

Language curriculum for CIOs or ...

The Chairman of the Indian entity of a leading global IT vendor addressing a gathering of CIOs stressed on the (now so obvious) fact that CIOs should speak in business language. Everyone in the audience agreed and appreciated this repetition like the fact that “sun rises in the east”. The senior statesman then went on to present a dozen slides on why virtualization and consolidation should be on the CIO agenda.

A group of CIOs visited an international event hoping to learn from interactions with their global peers and gain different perspectives. While the IT vendor companies represented in the event were somewhat similar considering the global nature of the IT industry, the speakers were different providing a local flavour of the country. Majority of the sessions stressed on the same fact “sun rises from the east”, I mean CIOs need to speak the language of the business. They however presented in complex detail the technology solutions that they wanted the CIOs to buy.

Excuse me ? Did we (the CIOs) miss something? No, we did not doze off during the presentation and neither did we see you skip some slides in your presentation which may have connected to the obvious fact. We were attentive and so was everyone until the tech stuff started. There were many messenger, text, and email messages flying in the room to check that we were all in hearing the same thing. Excusez-moi or should I say Entschuldigen Sie, maybe if you like I can try another language. But where is the connection ? How many of the CIOs in the room were part of your sample size ?

Over the years, IT was nudged, pushed and coerced to discard techno-speak in favour of what everyone else speaks in the enterprise; the quick compliance and transition surprised many and helped bridge the perception about individual and team capability. Projects were no longer about the next big technology or the latest versions of the fancy devices, they embodied holistic discussions around internal process and external customers. On the other hand for some reason the industry refuses to acknowledge the change continuing to cite examples of a shrinking minority of change averse IT leaders.

So how can this perception be changed ? How do CIOs ensure that what they say is what the IT vendors and consultants hear ? I believe that it is time to start challenging the well-wishing speakers to cite examples when they talk about the language course CIOs need and not hide behind the global research reports of named companies to justify their spiel. Can they speak more from personal experience ? For them to be heard, maybe they need to talk business, unless this is a ploy to hide their inability to speak the new language of the CIO.

For the CIO, the sun indeed rises in the east, but maybe just maybe it needs to rise from the west for the vendors and consultants to notice that the CIO has passed the language course with flying colours; maybe it is the vendors and consultants who need the course after all !

Monday, June 27, 2011

Do you have one big message ?

Earlier this month, I was in a conference of retailers discussing how IT can contribute to growth within their business and to the industry at large. The event had its usual bevy of IT vendors who had availed of speaking slots as well as many deciding to exhibit their products/solutions to target potential customers with their offerings. Attendance being large with representation across retailers, it was a great opportunity for the sponsors to engage.

Now this was one conference that was crafted together by a panel of CIOs and vendor representatives in conjunction with an industry body. The panel engaged with the sponsors through the planning process defining expectations and providing the suggested format of their participation in the event. Vendors presenting the traditional way using slides were expected to send their presentation to the Committee of CIOs to validate the context aligned to the theme and to ensure that it made sense to the participants. Thus, the agenda, content headlines and topics (de-jargonized by the CIOs with some catchy titles) were fairly relevant to the audience comprising of a mix of business and IT representatives across the layers of management.

Every marketing executive when provided with the opportunity to deliver an address to a captive audience attempts to put in everything that the company does whether it makes sense to the target audience. The result is that anyone listening is more confused than s/he was prior to sitting through the presentation. Charts and multiple boxes with bullet points are the norm. Animations and pictures add to the already crowded slides.

With a few exceptions, the changes to the pitch comprised of slashing the number of slides to fewer than 20 and making them readable even to people sitting in the back of the room. The clear message to everyone was what is the one big message you want to leave with the audience in your allotted 30 minutes ? Can you engage and provoke thought rather than outline the menu of options your company has to offer ? Given the task of reviewing 3 presentations each and ensuring that the changes are in line with expectations, the CIOs were a harried lot by the time they got into the conference. Few still escaped censorship by either citing unavailability of global speaker slides or by simply not responding.

The end result ? Few chose the case study route to deliver the benefits of their product or services; the compliant presentations created a wow for almost everyone, visible from the crowd outside their stalls. Vendors who did their own thing found the audience twiddling with their smartphones, chatting to their neighbours, dozing off, or simply walking out midway. If I was the speaker, it would be totally demoralizing for me.

In the day end debrief with one such vendor, he insisted that there is no other way to inform the audience of what his company has to offer. If the customer is not aware of the entire spectrum of offerings, how and why will s/he think about his company ? According to him, when he puts across 10 points, a few will be remembered. He refused to believe that his speech was delivered but not received.

Sigh ! some people don’t learn.

Tuesday, December 21, 2010

Why do vendors sponsor CIO events ?

It is a general belief that CIOs are a pampered lot, with every vendor equipped with a marketing budget vying for time of the CIO wining and dining them, or taking them to exotic locales under the aegis of a larger event organized by, say an IT publication. A destination’s lure or the fine dining opportunity is what the vendors believe attracts their audience to accept these invitations.

Now, the CIO is usually attracted by headlines promising to transform the business, strategies to enhance business value, getting ahead of competition or additions to the corporate bottom line, to just name a few juicy titles. It does not matter what product or service the IT company offers the titles are very similar in their stated intent to help the CIO in being a winner. Expectation mismatch?

The reality is more on the lines of a captive audience, subjected to what can be described as Auschwitz style torture by presenting presumptuous facts of a micro-segmented market that has no correlation to the reality (of the audience). They then propose the same old solutions around data centers, storage and server virtualization, wrapped on cloud computing enabling the business statements using logic defying rationale.

Recent times have seen the gas chamber (read conference room) pumped with cloudy trends and solutions suffocating CIO prisoners and adding to the confusion. The CIOs’ silent cries are lost in the din of the collar-mike-d speaker who avoids eye contact with the victims, so as to not be cursed by their souls. Sighs escaping occasionally are drowned by the amplified voice of the person standing a head above the rest (on the stage). Basic decency and courtesy prevents the CIOs from walking out; a few regularly pass out, even as their snoring disturbs those who seek solace.

This cycle repeats endlessly, with the CIOs hoping in vain that IT vendors have probably taken their last feedback. That they have changed their way of using the precious face time with a group of decision makers. But no, it is as if the basic principles of customer engagement have been thrown to the winds. Forget the customer or his needs, sell what you have; it does not matter whether the customer needs it or not. Twist the message adequately to make the square peg fit into a round hole.

The vendors’ defense is typically on the lines of, “Listen to the customer? How can I do that when I have only 45 minutes of stage time? I have to tell them my story (the story that my company wants to propagate). I will read the slides, take a few minutes longer than the allotted time, so that there is no time for questions”. After all, I have spent some hard money to sponsor the event.

Over the last year or so, many CIOs have started excusing themselves from these excursions and invitations, in many cases at the last minute, citing business exigencies. This number is growing, and such opportunities will just wither away unless the model changes to encompass “Engagement, Listening, and Empathy”.

Is anyone listening?

Monday, December 06, 2010

Mr IT Vendor, grow up

A few weeks back, I was at a round table discussion organized by one of the big IT vendors which focused on “Virtual Desktop Infrastructure”, amongst other things. A gathering of about 15 CIOs was invited to explore the adoption of desktop virtualization, its associated merits, challenges and opportunities. It was an opportunity to engage, that once again failed to engage the IT leaders.

The group had a fair representation across industries from manufacturing, banking, insurance, retail, IT enabled services, and some more. The agenda was fairly simple, with the expectation to understand how different industry segments view VDI and what has been the journey thus far. Of course, it was about market sizing and qualifying leads that could result in some business from the vendor’s perspective.

Discussions started off with differing perspectives on filters that every CIO applied to their business operations to determine the suitability of desktop virtualization in their environment. Some amongst them included the kind of work undertaken (task, analytics, office automation, and graphics intensive work), volume of desktops per location, type of applications used, and not the least, ROI on such an initiative. In the same breath, challenges were also debated listing cost and resilience of connectivity (specifically in the Indian context), licensing impact, cultural issues, and again ROI.

Within some time, it was evident that the vendor and CIOs were talking different languages; the former talking about the technological innovation, and the latter focusing on business benefit. With no translator or moderator, the two conversations found it tough to converge on common ground. Thus, the anchor closed the discussion after about 90 odd minutes with some CIO doodles labeling VDI as Vendor Driven Initiatives or Very Dumb Idea!

Post panel networking had an interesting insight shared by the vendor CEO with the anchor; the CIOs today are not willing to discuss technology anymore. This is making the task of selling to them a lot more difficult as compared to what it was. For sales persons to get into the customers’ shoes and then have a discussion requires different skill sets than currently available.

My rebuttal to that is “Mr IT Vendor, what else did you expect from the CIOs?” Over the last decade, expectation levels from the CIO have shifted from a technology advisor to a business advisor. CIOs have seized this opportunity (not challenge) and many have gone over the tipping point to take on incremental roles in business. To expect this level of discussion from the same vendors who always have “IT business alignment” as one of the top 3 priorities reflects that they too need to embrace the same change that they have been preaching so far.

The IT vendor evolution is a paradigm that I think CIOs have to start contributing to, else they will continue to be at the receiving end of inane discussions and presentations around technology, not winning with the business. Get started and do your good deed of the day, so that the next CIO they meet will not go through the same pain.

Monday, October 04, 2010

Strategic vendor meetings, slip between intent and execution

I met the CEO of a global market leading hardware and services vendor recently – he’s from an organization which has been engaged with us for many years. He was earnestly seeking customer feedback on how is his company contributes to the success of customers and what is required to sustain or improve the mutual value. My submission to him was that all is well and hunky dory; we think of their company when we needed something. Once the transaction is over, the Account Manager as well as my team part ways until the next requirement comes up.

As a purely transactional arrangement, this works well, but many other value added opportunities get missed as this vendor is not our first recall. The CEO was aghast and promised to remedy the situation quickly through a strategic meeting with solution heads and domain experts; this was to be repeated every quarter, or on demand.

Six months passed, and nothing happened. Another chance meeting, and this time the CEO turned crimson on hearing the progress. In the interim, some more business went to their competitors. The chastised managers began the chase attempting to fix this meeting, which materialized after another three weeks. Time requested and granted — 1½ hours, scheduled start 2:30 PM.

D-day arrived, and this is how events unfolded:

2:30 PM came and went with no sign of the delegation; No call, no SMS, nothing. The audience comprising of the CIO and a few General Managers waited with some concern and amusement.

3:00 PM: Account Manager turns up. After 10 minutes, the second person ambles along. Meeting starts at 3:15 with a presentation on how the vendor sees the current market. They shared their beliefs about our challenges, and thus the opportunities for engagement. He talked about services that we have tried unsuccessfully with the vendor as the key unique selling points.

3:30 PM: The Sales head joins the meeting while the discussion was on an organizational matrix—a model that would support us in the collective quest to take engagement to the next level. As we started tabling issues, the vendor team had reasons for all that had nothing to do with them. An ERP upgrade, change in account managers, shift of support personnel, I am sure you get the point. But there were only fleeting regrets that they did not update us on open issues or orders despite multiple reminders.

3:45 PM: “What are your priorities and projects for the next 12 months?” and we quipped “To explore new and alternative vendors”. My colleague whispers that this meeting is worth a mention on Oh I See. Saving grace for them came in the form of an urgent phone interruption.

4:00 PM: The reception announces arrival of the last person who was to join the meeting. I get up and walk out of the meeting.

I wonder whether the vendor realizes what they (did not) achieve with the strategic meeting scheduled by their CEO with intent to enhance business with our company. Why does the IT vendor fraternity not teach its sales force to listen, engage, empathize and show some patience – the four tenets of retaining your customers? All of them (except a handful) are interested in talking, or presenting the great slides provided by their local or global HQ with inane survey data that normally has no connect in the local dynamics of business. Like every other business, retaining customers is all about creating a differentiated experience, unless you always compete on price.

Monday, May 10, 2010

Food for thought or snack gone bad: Data centers drive business agility

In the recent past, I attended a few seminars conducted by large IT solution providers with a tantalizing subject line, “How to achieve business agility” (or something on similar lines). The invite’s text appeared to offer a ready-to-eat snack with all the good tidings of fruits, fresh vegetables, salads, and everything that’s healthy. Since it sounded like the formula for fitness in a week so, CIOs obviously turned up in large numbers—only to realize the old adage that if it’s too good to be true, it probably is.

Almost all the organizers wanted to focus on how to improve data center efficiency, utilization, management and agility in provisioning new servers. According to all of them (without exception), the delay in provisioning a new server can lead to compromises in business agility, thereby adversely impacting the outcomes. Each vendor’s formula for success revolved around their solution for virtualization and (or) management tools, which allow quicker provisioning of virtual machines—allowing the IT organization to bring up a new application within hours, as compared to the days when physical servers were in vogue.

I find this unpalatable, as it presupposes that everyone in the IT organization is only focusing on the infrastructure, with no communication with the team members who create or buy applications. Or that we have a scenario where the applications team does not tell the infrastructure team until the last minute that they require some compute and storage resources to deploy their test, development, or production environments. The assumption is that the two factions are not on the same page on projects or timelines, which results in delay.

Agreed that virtual machines can be provisioned quicker than physical machines—CIOs will also agree with this, but that’s only part of the story. If not enabled with policy, it can also lead to innumerable virtual machines (with limited or no use), thereby blocking resources and creating inefficiency. Virtualization continues to remain at the periphery of deployment, with core and large package providers as yet to certify their applications on virtual servers.

Typically, IT organizations are more organized in nature, with visibility of planned deployments and requirements of licenses or hardware. Dependencies are well known, and irrespective of the physical or virtual environment that the enterprise may prefer, this is rarely a cause of delay (or lack of agility).

In my observation, project delays are more to do with scope creep, signoffs or even indifference from business. It’s a subject that deserves a longer discussion on another day.
So has the data center become the cause of business angst? Well, I’ve never heard of such a scenario in the recent (nor the distant) past!

Coming back to the event under discussion, presenters sheepishly agreed to counterviews from the attending CIOs, and attempted to justify their stance by stating that their global research data had indeed given them such insights. Talk about assumptions!

My view is that vendors should refrain from such titillating titles to attract the audience. At the end of the day, vendors end up with the realization that most participants badly want to leave. The CIOs stay back only out of sheer decency and respect. As a result, vendors run the risk of alienating their key customers by continuing this play of words.

Coming back to the ready-to-eat snack, it was stale, oily and very unhealthy—causing heartburn and acidity. Most of the CIOs required gallons of liquor to drown the symptoms of disbelief and utter boredom.

Tuesday, April 13, 2010

(IT) Security and the CIO

Last month, many CIOs (including me) were subject to a barrage of security events—as if the world suddenly needed a lot more protection than it had in the past! CEOs, senior vice presidents and thought leaders suddenly seem to have descended upon the CIO, challenging the security postures of enterprises.

Questions challenging the efficacy of currently deployed solutions were very similar across almost all vendors. Many data points from a multitude of surveys were bandied around in an attempt to make CIOs succumb to the FUD (fear, uncertainty, and doubt) factor.

A typical session begins with “Top 5 technology priorities”, and since the presentation was being made by security vendors, IT security figured prominently in these lists. To the hapless CIO, statistics reveal a scary world full of crackers and nefarious elements (who want to take away customer data, send spam, phish users, attack end computing devices, and sniff network traffic). It did not matter if the audience agrees with these or not. Irrespective of whether the displayed data is from the same geography or industry, the ground is set for discourses on why your enterprise is not secure if it hasn’t deployed the specific vendors’ solutions.

Almost all cases are built upon the premise that data is only stored electronically, and leakage can only happen in electronic forms. The exercise of data classification is touted as the starting point—except that beyond a point, this classification becomes irrelevant, as the imposed controls make conducting business a painful task. Mobile workers appear as the villains who will lose a laptop or connect to unsecured wireless networks compromising valuable data.

Yet another cry is a ban on social media. This does not acknowledge the fact that business also uses these channels for connecting with customers. The mantra is “you cannot trust these gullible ignorant employees, they are the weakest link”.

Yes, people are indeed the weakest link in security compromises; but they can also be the strongest. The biggest tenet of any business operation is trust. If the enterprise cannot trust its employees to be prudent in their usage of various communication modes or protect the data that matters, then I don’t believe that a technology solution is the answer.

Information security can be effective with help of education, continuous reinforcement by the management, a “zero tolerance” policy towards adverse incidents, periodic reviews, and finally the technology stack which is dependent on the business operations. Exception management is fraught with danger, and should be aggressively discouraged. Many mature organizations have found that making an example of truant employees enhances levels of security, and builds trust with customers in the long run. Attempts to hush such cases, or not taking strict action which may already be defined in the policy sends a message of tolerance, which can significantly compromise the enterprise.

Vendors need to listen as they engage (see Irrelevance of vendor presentations) the CIO in discussions on how they can help their customers in sustaining and improving their information security postures. This has to be based on an assessment, and not based on inane survey data that may be far removed from reality for the audience. Else, they face the risk of alienation from their prime customer, the CIO.

Tuesday, March 30, 2010

Flood of invites, Tsunami of events, and a drowning CIO

It is fairly evident that the economy’s achieved a turnaround. Most key indicators (including inflation) are heading north. The IT industry is also seeing an upswing, and increased spending from customers. So vendors are now back with fresh marketing budgets. In their endeavor to woo CIOs, the number of seminars, events, offsite workshops and entertainment has suddenly increased manifold.

Levels of noise have reached such a crescendo that if the CIO were to accept every invite that came his way, he’d probably spend a couple of days every month at work. To add to this, the assorted freebies and writing instruments given away at each such a gathering would fill up available office space.

The question is, are there no other ways to engage the IT decision makers?

Typical event invites have eye catching headlines interspersed with buzz words like “Cloud Computing” or “Green” (the hot favorites for now), which is enough to entice the CIO’s participation. The content has rarely any connection to these across most events. However, since there still remains fuzziness about interpretation of these, the poor IT Heads end up hoping to gain some insights about what these really mean for them in real life. The cycle continues with almost every vendor, irrespective of whether they are software players, hardware vendors or just service providers. Another noticeable trend has been to couch the topic in business terms like “Agility” or “Profitable Growth”. CIOs start wondering if they would miss some key trend, and again end up disillusioned within the first hour.

Most events are scheduled for the evening, and start with a technology discourse—supposed to be presented by a thought leader. Poor last minute substitutions are becoming the norm (unavoidable circumstances, reminds me of the “technical glitch” with airlines), with a Sales or Marketing person who ends up reading through the presentation. This is followed by the panel discussion with a set of clueless speakers.

A frustrated audience sits through the ordeal out of sheer decency. A few end up catching up on email or leave with their cell phones glued to their ear, citing exigencies that need their attention. Those who do stay until the end find the networking damp, the time spent a sheer waste, and promise themselves not to attend another event.

Give us a break—respect the CIO!

Marketing budgets thus spent rarely provide value to the IT companies. I believe that the IT industry needs to evaluate ROI models used while planning such forays. While I agree about the need to engage decision makers in discussion and dialogue, other alternatives can be used with greater efficacy. Unearth real life business problems, and explore how the offered solution can practically solve it. Use case studies, customer speak, and focused discussion around the issue.
Don’t get upset when 10% of confirmations turn up for the event; ‘regrets’ are the enlightened ones who have suffered similar gatherings. The ‘no shows’ have probably spoken to CIOs who declined your requests, or found another interesting venue (at the courtesy of a different IT vendor).

So consider accepting substitutions from the next layer of participating IT personnel. These participants are more likely to engage in a technical discussion than the CIO. But this will not happen for too long, since they’ll also evolve towards becoming business savvy, and get flooded with invites.

Monday, February 15, 2010

The evolving IT service provider

IT service providers are evolving, and at quite a rapid pace. To take a case in point, I was invited to a gathering of more than 100 IT service providers and channel partners to talk to them about “How to sell to a CIO”. This is not the first time that I have spoken on this subject; earlier, it was to sales teams of large Indian and global IT companies, but it was different this time. The group comprised of mid and large sized companies who vie for business from the small and medium enterprise (SME), as well as large enterprises. This segment has to balance between different types of businesses — right from owner driven organizations with no formal IT organization as such, all the way to CIOs of large companies. And a lot of such service providers classify the SME business in terms of people, revenue and process.

It was interesting to observe that the audience comprising largely of CEOs and heads of sales (or service), listened with rapt attention. It was eerie in a way — there was absolutely no cross-talk, buzzing of mobile phones, or anyone getting up during the hour long talk (I am used to, and also guilty of, such behavior during conferences). The audience could associate with most references to vendor behavior — their wins and losses, joys and frustrations, ups and downs. It was as if their lives were being subject to scrutiny, at a scale never done before.

On the flip side, the participants had many questions on why CIOs ignore them, and at the same time want the CEOs to visit even for a small transaction. According to many, the CIO egos were a big put off. There were also many questions around the lack of transparency in decision making, the inordinate negotiation timeframes, and then expectations of how the services, goods or solutions should be delivered in super crunch time.

As I made an attempt to answer some of these concerns, it was evident that the CIO’s evolution is still an ongoing process. Not every CIO has evolved to a level of maturity where almost every business transaction is a win-win situation (or every interaction is looked forward to). There are no universal answers that can be applied to every situation, since the CEOs agreed that there is a serious need to impart skills within their teams in order to more easily manage the situation.

Governance applied to IT procurement was another heatedly debated aspect. While vendors like to work with the CIO towards long-term relationships, being the lowest price vendor is not the best criteria for selection in such a scenario. According to the vendors, value additions offered as proof of concept, training and education, post implementation handholding, and technology advisory should be given due weight while taking a decision on awarding the business. The channel partners also expect clear decision making cycles, so that they do not end up in the hands of “purchase departments” who measure only on the basis of savings over the initial offer or budget.

The relationship between IT service providers, channel partners, and the CIO is at best, symbiotic. We need each other to be successful, in our quest for achieving our objectives. A partnership built on shaky ground will not withstand the travails of time and pressure from internal as well as external forces. Trust has to be built upfront and sustained, for each others’ success. To quote my favorite management thinker (at least in 2010), “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself” – Peter Drucker.

As the IT service providers and channel partners evolve to understand their customers, the industry in which they work, the opportunities open to their customers, and work towards creating success for the CIO, it will be a challenge for some CIOs to now engage with them at a new plane of maturity and understanding. It the CIOs fail to achieve this, they may alienate themselves into a situation that will make success difficult.

Are CIOs up to the challenge? It still remains to be seen.

Tuesday, February 09, 2010

Irrelevance of vendor presentations

Let me start with a quote from Peter Drucker — “There is nothing so useless as doing efficiently that which should not be done at all.”

Last month, I was invited to a a marquee publication house’s three day offsite CIO event to discuss the coming year’s IT agenda. Topics on the agenda looked good, the attendee list was glowing, and a long standing relationship with the Editor propelled me towards attending this event. So I packed my bags and decided to give it a shot.

Almost all such events invite a couple of CEOs and thought leaders to share their insights and provoke some thought within the audience. And the CEOs did not let down on that promise. They had the audience eating out of their hands, listening with rapt attention to every word, absorbing it, taking notes, discussing with their neighbors, and in the end asking a lot of relevant questions. The act was a tough one to follow, but the CIOs were charged.

As a result, they (the CIOs) did not mind a few vendor presentations. To their credit, the CIOs did attempt to follow these sessions, but it was a difficult proposition to keep the lids from drooping.

The following days had everyone unanimously wondering what hit them. The torture began with inane presentations ranging from the usual suspects — virtualization, green data centers, cloud computing, outsourcing, intelligent cabling systems, network rationalization, and so on. A few consultants tried to revive the audience by raising questions about CIO reporting and their efficacy. The audience was too numbed to be provoked, and let it go with a mild reprimand similar to “Don’t disturb my sleep”.

The icing on the cake was a presentation on “What is a Data Center”. Yes, men are from Mars, and in a predominantly male crowd, by association CIOs could be classified to belong to Mars. But telling a CIO about what a data center is like is rather akin to teaching Michael Schumacher how to ride a car! I wanted to insert an analogy on Golf, but decided against it.

Without exception, every sponsor had a slide deck (with a minimum of 30 slides) to be displayed to the captives. They ranged right from very basic elementary stuff and all the way to one which wanted CIOs to learn how to move virtual partitions across servers. To be subject to such a score of presentations over two days beats the torture that even the famed Nazi inflicted on their poor captives.

Despite being advised against it by the organizers and post event feedback by the audience, it beats me as to why vendors insist on subjecting CIOs to repetitive presentations with nothing new to talk about, and preach their version of religion. To top it all, these activities are dished out by sales and marketing folks, who are not even subject matter experts (these people could potentially be challenged by the listeners).

The last straw (in a few cases) is the substitute junior staff member reading out slides with no eye contact with the audience. Such a person is typically in a hurry to get off the stage in order to avoid any cross-questioning from the few members who suffer from insomnia. I would rather withdraw the slot than be the subject of “How to reduce your exposure to this vendor”.

Has the IT vendor become a slave to these habits? Has their thinking has become clouded (a side effect of cloud computing?)? Is the scene so bad that IT vendors are unable to explore alternatives to engage their prime customers — the CIOs? Whatever happened to good old case studies, panel discussions, and interactive sessions in the form of a Q&A? Are vendors unable to stand tall without the crutches of slide decks which no one wants to see? Why do vendors continue to alienate themselves from their customers?

I guess it’s time to get back to basics. To quote Peter Drucker once again, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Will a publishing house donate some Peter Drucker books to all the Marketing Heads of IT companies?