Monday, January 11, 2016

No predictions for the New Year 2016, just a list of unhappenings !

At an event in a large gathering of CIOs and vendors, many were interested in the future, some attempted to predict it, a few thought that they can create it, while the rest barring the uninterested wondered what the New Year holds for them. The debate thus started, took interesting turns with the usual set of trends around SMAC dominating the discussion. Digital was a given with finally convergence of definitions and interpretation. Everyone loves to make predictions, good, bad, they catch attention for whatever they are worth.

When a group approached me, I was caught unawares, but decided to play the game; so I challenged them on the efficacy of making predictions at the beginning of a calendar year. Was it because of convenience so that they can be labeled and catalogued by the year number ? Or did they make sense since the majority probably received new budgets to invest/spend and thus fueled the innovation furnace ? Or that people come back from an extended holiday fresh to get started and thus need some markers.

Either way, everyone has lists of all kinds for the year, resolutions, tips for a better life, predictions and goals they want to achieve. Technology providers push their new products with aggression portraying them as new trends; Consultants attempt to predict what will happen, rarely going back to review whatever brand of snake oil they promoted; Economists and other professionals oscillate between doomsday and optimism while the cautious lot stays non-committal taking a safe path and cynics raise eyebrows at everything.

The first time I attempted to predict the future was in 2004 which I revisited in end 2013; the last time I made technology or technology impact to CIOs and business predictions was almost 4 years back; then in the beginning of last year my participation in many discussions – online, offline, in conferences, with some of the self-proclaimed consulting type futurists – they nudged me hard enough to issue a rebuttal to their claim that the CIO shall perish which was followed by a viewpoint and tips on thriving in the new world.

I am taking a different path and putting my neck out with a contrarian view of the world as I see it. The list is not definitive, but representative of broader trends that I see impacting individuals, IT, CIOs, Enterprises and the ecosystem that supports technology led business outcomes. There are many predictions of what may happen and that is why I choose to create one that attempts to wean people of the hype curve or whichever quadrant or wave enamors business and IT decision makers and influences their actions.

1.      Death of monolithic ERP: it shall survive all attempts of appification sustaining core business
2.      Demise of email: enterprises and individuals will continue to use email for formal communication
3.      Blockchain adoption: interesting use cases, lots of investments, few real life implementations
4.      End of laptops: touch will become standard, tablets aspire to replace them, corporate workforce will not let them go
5.      (Free) Mobile Internet: will continue to struggle with disconnects and seamless, consistent speed of access for meaningful engagement or work.
6.      Cloud domination: remains a desire, enterprises, governments and hardware providers will find ways of retaining data centers
7.      Value versus cost: majority will tilt towards cost rather than value as tactical savings attract pat on the back for a job well done with budgets remaining flat
8.      Talent retention: big challenge for everyone with head hunters going aggressive on anyone who has demonstrated success (real or perceived)
9.      Big Data insights: investments will continue, insights will elude most
10.   Insecure enterprises: Cybersecurity will demand attention and budgets, breaches will increase
11.   BYOD: will be controlled with containers, boundaries, restrictive solutions, employees will accept the new way of working
12.   Internet of Things: keep talking, discussing, debating until internet access (point 5) is solved
13.   Individual privacy: personal data will keep popping up surprising individuals of their vulnerability
14.   Technology treadmill: people and companies will get off and not run after the next new device, release or trend will diminishing returns making it unattractive

That is my list for now, take it for what it is worth; during the year or maybe the end you may turn around and find that none of these happened in your life. That is quite possible though I believe that the trends will play out in a large section of people across geographies. I promise that at the end of the year I will review the reality as it happened. Until then all the best !

Monday, January 04, 2016

Fixed bid or Time & Material contract ? Choices gone awry benefit vendors

This is a continuation from last week, please click here for the earlier part

After prolonged discussions, debate and extensive negotiations, the project was signed off with the final vendor in a proclaimed win-win scenario with a fixed bid for the defined scope. The project was complex, audacious and mammoth in its attempt and intent to deliver functionality with breadth and depth that had never been attempted before. The customer and vendor were equally excited with the casting if successful would leapfrog both into elite league of customer case studies and success stories.

The project got off to a great start with participation from the leadership teams from both sides solemnly offering their unstinted support promising to leave no stone unturned towards success. The team brought together from various business streams as well as different locations represented the able and willing though not necessary the best. They understood the challenge and opportunity in front of them, daunting and exciting, they believed with support from the leadership team they can climb Mount Everest !

First milestone achieved within the defined timeline boosted the morale and charged the team to start believing that they could indeed pull it off. Aside from the congratulatory back slapping there was a renewed energy towards every task and adoration for the CIO who kept the team together with a balance between coaching, mentoring, critiquing decisions and helping find a better solution. The first milestone was important though not critical; they knew it and the journey was about to get tougher and daunting.

Time flew after that with rush of activity taking its toil; they missed the next milestone creating a sense of urgency and pressure to make up time. The vendor started getting edgy as every creeping day added to the cost and reduced profitability for the project. Reports moved from Green to Yellow and then Red quickly with escalations that resulted in frayed and short tempers. The management instead of looking at what needed to be fixed started asking who was at fault thereby undermining team and leadership credibility.

Each decision was challenged and hypothetical exception conditions were cited to demonstrate ineptness of leadership. The noise reached a crescendo demanding change to rescue the project which was critical to the company with large investments committed. The team rallied behind the Project Manager and CIO providing a vote of confidence which was brushed aside; convenient scapegoats, the duo were replaced by a wannabe CIO and dozen experts who visibly formed a coterie.

In the large unparalleled project, the new team out of depth agreed to vendor’s every point turning status from red to green within a fortnight. The vendor seized the opportunity to push in cost escalation due to reasons attributable to the customer; after all they had replaced their team members while the vendor had retained the entire contingent. Some of the business team members sensed an opportunity to prove a point and pushed through large set of customizations to retain existing process.

Score and more programmers descended bringing with them further extension to scope and project timelines. What was thus far a controlled project running to defined specifications and timeline was now a free for all – change this and change that – because other change was accepted. The project bore no resemblance to the disciplined approach that was the hallmark of the earlier team which had a purpose and direction to where they were headed and what would be the outcome at the end of the project.

By the time the original go-live deadline arrived, the project had transformed into a massive custom development factory using the product only as a foundation. The fixed cost model was converted to time and material since no one knew the end point. The management and specific CXOs who had taken a tough stand against the earlier IT leaders accepted the new situation with lame justification that the solution would now be well tailored to enterprise processes though they had lost on best practices, cost and time opportunity.

Business patience elasticity was tested to its limits until opportunity loss started hurting market share and murmurs of dissatisfaction could not be controlled. Additional experience and grey hair was brought to the rescue; with 100% cost overrun, 80% slide in timelines, and 40% reduction in scope the project was eventually declared live. No one celebrated the event, no joy left in the milestone that was a molehill to the aspirational Mount Everest. Life had gone round dishearteningly and disorienting the disappointed expeditioners.

What about the original PM and CIO ? They had quit happily on the suggestion of the management early on around the time of the original go-live milestone !