For too long now, the collective talents of the IT department have been hidden, focused primarily on keeping the lights on. Focusing on making the operational stuff run smoother (and cheaper). This is still important, but my argument is that we’ve reached a point based on the opportunities that present themselves all around us; the economy, the changing workforce, the developing built environment and technology – the changing world of work – where we need to find a better way forward.

The future of our success lies not in making the existing IT run smoother, but it is back where we all began this journey, helping those around us be more successful as a result of their use of technology.

We should be embedded at the heart of every aspect of our respective businesses, providing leadership, guidance and support to those that seek to find a better way.

After all, it is only we that are in a position to be the true enablers of transformation inside any organisation and we simply cannot get there from the confines of the IT Department.

In the next part of our series of posts looking at how the world is changing around us we look at how the work environment is changing around us. With the evolution of mobile technologies and the ever increasing bandwidth that is available to us (in terms of both location and capacity) we are afforded truly different options in how we work.

The Hybrid Organisation studies showed that on average we spend only 45% of our time at our desks – that’s an incredible statistic, not only does it provide a hint at areas that we may make some major savings, but it is also incredibly telling about the way in which we now carry out our professional lives.

We’re moving to a world where the term “work” no longer defines a location, but is centred purely in the activity itself.

Working in this way offers not just greater flexibility for us in how we blend our personal and professional lives, but also provides a great opportunity for us to spend more time outside with our customers, peers and even strangers – all of which combine to make us more successful and more innovative and better still, more effective both at home and in work. The days of the binary work life balance are gone, some people seems to think this means working 24/7 but to me it’s about empowering individuals to choose where and when they want to get things done – equipping your people to be productive wherever they chose (or have to be) is the first big step down the path of success.

In our Dutch office, we reduced office space by 30% effectively pushing our people out into the big wide world – the results – 50% increase in sales and a much happier workforce.

How dull would I be (or rather as my wife reminds me, how much more dull would I be) if all I did was spent my time within the Microsoft bubble? I’m a far richer, more innovative and productive individual if I get out a bit more and spend time with people like you and your teams – even with people who care less about technology, it’s all constructive input and food for thought that goes to make me far more useful and valuable to my employer.

But companies need to change in order to truly get the most from this opportunity, especially in a knowledge based economy, we need to move to a more outcomes based measurement, far too often, we measure people on process not on what they achieve – this alone forms one of the major barriers between those that will taste success and those that don’t.

I’m not going to dwell too much on this as it is a challenge that I know is at the forefront of everybody’s mind, but what is crucial, is that we must never lose sight of the fact that our currently challenging economic climate continues to be one of the most important factors in providing a real, substantive need for radical action.

We know we cannot go on as we have in the past. We know we must save money, but equally we know we must find a way of delivering at least equivalent service if not superior.

The challenge I know you all face on a daily basis is about providing “more for less” an overused slightly tired cliché that summarises the situation. I would argue that we need to move beyond that and embrace wherever possible the challenge posed by the economy and use that as the catalyst for some really innovative thinking that can transform the way in which we do business.

To me, saving money is like being told you need to lose weight – as an individual, I have a couple of choices, I can chop off one of my limbs and voila – even the Lighter Life diet will find it hard to match that kind of weight loss to time ratio… Only problem though, I can only do that so many times or worse still, it leaves me weaker, less responsive and bleeding to death.

Alternatively, I could get myself on a proper diet, endure some regular exercise. Sure the savings will take longer but will put me in a far better place to make further savings for the future and are infinitely sustainable.

The economy is the single biggest reason for us to do what we have been talking about for the last 10 years, transform, I’m talking proper transformation, not some mickey mouse “playing round the edges transformation” that basically means the same stuff just slightly better.

But the economic situation alone cannot get you there, you have to understand the other changes if we are to be truly successful. Over the next few posts we’ll look at these and how they combine to provide the single biggest opportunity for real transformative change that we’ll ever see in our lifetimes.

I was recently involved in a roundtable discussion (first of series) that aims to try and dispel some of the myth that surrounds Cloud Computing and attempts to get the focus away from the technology and more to the business outcomes it affords.  For my part I was asked to write a pre-amble to frame the discussion which I thought some of you may enjoy…

“I signed up for a career in IT because I was a dreamer (and maybe I watched a little too much Star Trek as a kid). My dream was all of the great things that technology could enable in a modern society. 20 years on, I’m still here and I’m still living the dream – great things have happened, massive change has taken place and technology is pretty much a pervasive part of the way we each live, work and play.

So when a couple of year ago, we began down the hype curve of cloud computing being "the future of IT" you can imagine my interest, what is this thing that could be so important and yet so elusive to describe, understand and in some cases deliver? I set out on a quest to find out the transformative outcomes that cloud computing would enable.

If cloud really was the future, I wanted it to solve world peace, find cures for major medical problems, save the planet, hell, I also secretly wanted it to give me that hoverboard I’ve been promised in so many late night low budget sci-fi films.

But as you all well know, and as I now understand – cloud computing in itself is not an outcome, it is merely an enabler, a quiet, yet substantial, aid to let us be better at doing what we do.

Starting a conversation with cloud computing is a bit like standing up at the beginning of the movie and declaring "Bruce Willis is a Ghost!". Ultimately that’s the destination, but in itself it’s meaningless. Without understanding the context of where you actually are and, more importantly, really getting underneath the outcome you want to achieve, you’re going to struggle to make sense of why cloud is even relevant, never mind so beneficial that it could completely transform the way you do business.

As technologists, our job is to make technology as transparent as possible, we must resist the temptation to lead with the solution. I firmly believe our job is to ensure that people are focused on the actual task in hand not on how to operate the tools – the less people have to worry about how the technology works, the more they can focus on whatever it is that is important and unique to them.

To do this we really need to stay focused on the (holistic) outcomes that our customers are looking for, and then find the right way to make technology as transparent as possible to ensure their success and in a way, this becomes one of the key strengths of the cloud approach. Like so often in this game, we tend to view everything in a binary manner – all or nothing. When talking about cloud, we assume it’s everything to the cloud or nothing at all. In reality it will actually is much more fluid than that.

There are four key pillars that provide the cloud platform for our success, each are important and relevant, but for different reasons and applications. The pillars start on the far left with the traditional on premise datacentre, next the same but virtualised. For the third we make a big leap out of the organisation to a private cloud and finally on the far right, our old friend the public cloud. The important thing to recognise is that each of these pillars are essential in the delivery of a technology foundation and what is really required is a way of seamlessly moving from left to right as the solutions and economics allow. Public cloud has a lot to offer, by sheer virtue of the economies of scale, at the other end, the on-premise data centre is still important for some who may have more significant demands around control and performance. Many organisations get lost in this discussion, spending countless hours debating where they want to be on the scale. The simple truth is that the economics of each pillar should actually make the decisions obvious. Ideally all the commodity, infrastructure stuff should exist where it’s cheapest and all the complex, unique stuff where you have more control. Ultimately the answer will be that organisations will exist in multiple places, creating the concept of the hybrid cloud.

One of the other common problems stemming from the ambiguity of "cloud computing" is the confusion between infrastructure and innovation in how we procure and design cloud based solutions. I think of cloud computing as a spectrum, at one end there is the infinitely scalable, ultimately agile promise that has received so much of the cloud computing limelight and at the other end, there is the no-frills, black box, commodity service – IT’s equivalent of the electric grid. All too often we see customers trying to be agile and innovative with a no-frills commodity service and ultimately getting frustrated with the results. This is not helpful and it adds to the confusion and concern about the viability of cloud computing in any context. If we identify and separate out the areas where we want basic, commodity vs those where we want the agile and flexibility cloud also affords, we will enable far greater success not just in the use of cloud computing, but in the ultimate outcomes our customers are looking to achieve.

I suspect that in 10 minutes, I’ve not managed to help clear any of the confusion or ambiguity that exists around this critical area, but I do hope that I’ve at least managed to set the stage for what promises to be a fascinating debate.

Finally, all to often when I’m talking about cloud computing I’m reminded of a conversation I had as a kid with my Dad, an engineer of some repute who wanted me to follow in his footsteps but was obviously frustrated at my lack of talent in the key areas of thermodynamics and thrust co-efficients – he used to watch me, bumbling my way around the workshop, hammer in hand looking for things I could hit, he would simply smile and say "Dave, when all you’ve got is a hammer, everything looks like a nail". Cloud computing represents a very powerful hammer – our responsibility as technologists is to make sure it strikes home on the right nails…”

This is a piece originally published by Reuters as part of their Great Debate series, given all that’s happening right now around “finding the 40%”, I thought it might be worth resurfacing…

The British economy may technically be out of recession, but it is still not creating the jobs and growth needed to turn back the clock to the upbeat days of the past. And with a looming fiscal crisis, it’s not hard to see why some commentators are predicting the terminal decline of the British economy. I don’t think the situation for Britain is dire — yet. But if businesses want to regenerate economic engines in the future they do need to change.

Astute business leaders know that dramatic social, economic and political changes — in addition to changing workforce demographics, globalisation and rapid developments in social and business technologies — are now fusing together. Ultimately, they will affect every aspect of UK private enterprise – and competitiveness.

Having spoken to prominent industry figures and the Institute of Directors, I am more convinced than ever that the solution to this change is a move to a “hybrid” business model. That means UK businesses need to change their thinking, structures and operations and adopt a more flexible approach or lose out to more nimble competitors in the future.

A looser hybrid model has many benefits, although it isn’t without challenges. In the hybrid business, fixed office space is rejected in favour of giving staff access to shared space in bureaus. Such structural changes have huge benefits, including increased profitability (reduced rental overheads), greater responsiveness to shifting demand and more intense collaboration between workers – not to mention improved agility as businesses quickly spot and exploit market opportunities.

It’s not all sweetness and light though: less fixed office space can put off employees and create a sense of insecurity. But it’s become clear over the last few years that the notion of the office is changing and employees want a flexible approach to work. There is a noticeable move towards sharing in cities such as London, Manchester and Birmingham where office space — as well as coffee, light and power — are shared.

A hybrid approach to business is far more employee orientated. In my view, it recognises the blurring demarcation between work and home life. That involves recognition from businesses that as part of expecting staff to be on call 24/7, they must also be able to access modern communication tools — such as social networks and online shopping tools — in the office at all times.

This is liberating for workers, and it makes easier for employers to retain them amid a highly competitive global pool of talent. Company loyalty — not to mention control over the various workers operating from multiple locations — will remain an important aspect of business. There is a danger that an overemphasis on flexibility could actually lead to chaos, lack of creativity, miscommunication and ultimately poor service.

An overemphasis on flexibility is a real danger – one that all companies seeking to implement a hybrid model should be keenly aware off. But it is a risk worth taking because the harsh reality is that whether you like it or not, our foreign competitors are already implementing aspects of the hybrid model. From Shanghai to Seattle, workers are increasingly diffused, IT systems are being accessed via the cloud for a fraction of the cost, and businesses are moving quicker than ever before to exploit new opportunities.

In short, determined foreign competition means that unless we change with the world, the overall competitiveness and agility of UK plc will suffer. I don’t want to see Britain relegated to global economic irrelevance, which is why I passionately believe a move in this direction is a good move for our businesses, economy and society.

A few months back, I was approached by a colleague that had been thinking about the collision of a number of key events: the turbulent economic environment, political uncertainty, changing workplace dynamics and the consumerisation of IT – individually, these topics have all been visited here at the Envisioners and yet the bleedin’ obvious had, until now, escaped us – what happens when you bring all of these events together at once?

We know that each one of these topics is enough on it’s own to start a conversation around how the business world needs to change (in both public and private sector) and yet here we are, presented with a once in a lifetime opportunity (I hope) where the convergence of compelling events in each of these areas create the mother of all incentives to become more agile and effective in the way we live work and play.

The Hybrid Organisation work comprises of three studies by distinguished thought leaders in their field; Prof Michael Hulme on the impact of current social change, Philip Ross on the opportunity provided by changes in the “built environment” and finally Ken Wood from MSR and myself on both the current and future potential offered by technology.

Alone, each one of these studies mark an incredible insight into each specific area, yet combined they create an incredibly compelling view of how organisations, leaders and individuals need to change in order to take advantage of the opportunities being offered and more importantly, how to stay relevant and competitive in our changing world.

To help organisations and individuals understand how to make these changes happen, we’ve created a final summary report which outlines the key themes from each of the papers and outlines 20 things every organisation should do on it’s journey to becoming hybrid.

I know all the cynics out there will be rolling your eyes and saying, “we’ve heard all this before” and that it doesn’t matter – well two things spring to my mind:

1. The unprecedented convergence of the recession, the election, workplace demographics and IT consumerisation is something that _cannot_ be ignored.
2. Read the reports and judge for yourself – Look at the 20 point plan and ask yourself (honestly) where you and your organisation stand…

I’ve just come from a really fascinating roundtable discussion (sponsored by Dell and hosted by Bryan Glick from Computer Weekly) about the "Efficient Enterprise in 2010". The meeting was well attended by a bunch of Enterprise customers and Partners, with the context for the discussion being a presentation from Robin Johnson, Dell’s Global CIO.

There were a number of really compelling things that came out from both the presentation and the ensuing discussion:

1. Understand the Opportunity Cost of any savings you make.
   OK, so you lot know I already get that one, but wow, Dell apparently are able to plough around 50% of their savings back into strategic IT (and when you’re making a $160m saving p/a, that’s a big deal). Read on to find out how they get away with that -especially at a time when most CFO’s want every penny they can get – and then some.
2. Use the Time:Cost ratio as the pivotal argument, not simply Cost savings alone.
   Robin (and the group) talked about the difference in motivating the "business" when you factor in the time to market for IT solutions rather than simply talking about cost savings alone. It sounds simple when you say it like that, but it’s a hard won position with many CFO’s/Steering Boards. If people understand the difference in time to market that more complex IT makes, it makes it easier for them to support you in making it simpler.
3. Pursue "Ruthless Standardisation"
   Driving a standards based architecture is a pretty tall challenge, no point in doing it then if you’re only going to go halfway. It’s tough, but if you’ve done the above, you can make it happen. Dell have only _2_ images for their 22,000 server estate. That’s pretty ruthless, but it enables them to do a lot more.
4. Create a path of least resistance
   The Dell guys talk about the "Happy Path" vs the "Unhappy Path" when it comes to IT Architecture and solutions design. Follow the "happy path" (i.e. use standard tools/architecture etc) and you will get your solution in place more quickly and more cost effectively. It is possible to walk the "unhappy path" but it’s hard work so only those that are committed take it.
5. "Good enough" is good enough
   It was in fact, the great Dash (from Disney’s Incredibles – see how I spare you no cultural expense on this blog that said (and I paraphrase) "When everyone is special, it actually means no-one is". Nowhere is this more true than in the internal IT vs Business debate. The more special we allow different groups/departments to be unique and special the more expensive their IT solution. This recession will force organisations and departments to come to terms with this (I hope)
6. Rigidly define flexibility
   Oxymoronic at first blush, but it simply means, leave a little wiggle room, so people still feel empowered and part of the solution. Avoid "doing things" to people, collaborate with them instead.
7. Finally (and another of my favourite topics) be cognisant of the effects of "Consumerisation"
   Robin talked about the "Sunday Night/Monday Morning" concept, whereby people have a great IT experience on Sunday night as they catch up on personal tasks on-line, then go into work the following morning to receive a comparatively poorer experience. This isn’t about embracing the millenials, but about providing a range of service that suits a range of generational stereotypes.

Although the discussion was mostly business focussed, there were a couple of key technological points that I felt we worth calling out:

1. Power consumption is the new gold
   Based on the granularity of their server provisioning approach (smallest unit of MIP "currency" is a 2U box), Dell reckon that it is now power consumption that drives their hardware refresh cycle. Robin currently reckons that a 3 year refresh cycle will provide sufficient financial savings in power consumption alone to pay for the refresh.
2. Virtualisation alone is not enough
   Although it took a record breaking 60 minutes into the discussion before anyone mentioned the "c" word (Cloud, that is), what was clear that a big part of Dell’s success in the rationalisation of their data centres was the automation of the server provisioning. This is a topic that we’re beginning to see again and again, a virtual server is still a server, it still needs to be provisioned and patched. You only get the big savings, when you can automate that process sufficiently (and model it so you know what you’re doing is right).

We’ve collectively been reducing IT costs in organisations for years, and it is the obvious default state for most organisations, regardless of the current prevailing economic climate.

The easiest thing to do when looking to reduce costs is to spend less, trying to maintain current service levels. In my experience, this rarely works. At best, you maintain your current service levels, but slowly, the organisation begins to asphyxiate as it is unable to keep up with changes in conditions, demand and technology.

The challenge of course is that, as Bill Gates once wrote, “… if you’re too focused on your current business, it’s hard to look ahead and even harder to make the changes you need to …”

The real opportunity of course, is to think about the potential of tomorrow whilst being realistic about the savings of today.

Increasingly, (and because we’ve seen the “Cost Saving” movie more times than the Wizard of Oz) significant savings are becoming incredibly hard to identify and achieve and this, coupled with the increasing pressure for us to do more to change the way in which we do business is leading us to the _only_ way forward – Transformation.

Transformation is the cornerstone of the current CIO’s dilemma, get it right and you can have your cake _and_ eat it. Get it wrong and your organisation will begin to lose effectiveness and in your case, relevance as you struggle to keep up.

The good news however, is that the gateway to Transformation are controlled by attributes that are really strong cultural values in your organisation that you have great pedigree in exhibiting. I’ll cover these in more detail later, but ultimately it’s about your ability (both as an individual and an organisation) to be innovative and agile.