From the category archives:

Enterprise Systems

Cloud computing hype has been “deafening” lately, as the Economist puts it plainly. But, is it really hype or is it an accurate vision of the future of enterprise?

Given the straitened times, you would have thought that cash-strapped companies would be jumping at the chance to outsource their computing operations to the Amazons, Googles, Salesforces and Microsofts of the world. Along with others, such providers have been vying to offer their customers access to data-processing and storage capacity, plus all the usual business software running on their own servers, via the internet or more private connections… Yet there have been few takers. What is holding IT managers back is fear about security. // via Tech.view: Cloudy with a chance of rain | The Economist.

I value the opinion of the author of this article, as he brings up valid objections to the technology, but ultimately, I believe that cloud is the future of IT; notwithstanding the security threat belabored above.

Why?

Because history has proven many times that firms that focus on their core competencies survive and thrive. Yes, security is a valid concern for in-house control, but I can envision a world where cloud companies will have more than adequate levels of protection, given the nature of their core competency–the cloud.

Companies that are not enterprise software or consulting firms should let the heavy lifting take place by the pros. It’s as simple as that. Companies should focus on what they do and let the business service firms come in and do what they do: cut costs, optimize, and deliver high performance results.

Beyond that simple business logic, it just makes sense that firms will start putting assets in the cloud. Why maintain systems, clients, software, and enterprise applications when another company can incur those costs and just charge you for what you use? Scalability is key here, and will continue into the future.

Fear

Clearly, firms are scared about security. Rightfully so. They are also scared about up-time and stability. Microsoft and Google have recently dealt with very public issues regarding cloud technology (think Sidekick and Gmail outages). BUT–flexible computing is the future, and you will see, as the technology is slowly adopted, more firms will jump on board. The future is in outsourced computing and the cloud.

In the cloud, a company can contract for redundancy, and why not let the people who specialize in these technologies be in charge of maintaining your data. After all, if you are a baker, you wouldn’t expect to install the ovens and supply your own gas to fire them, would you? You would get a specialist: an oven installer, and contract with a utility to supply the store. Here, the cloud is the utility. They manage the processes that supply your bakery’s pipeline.

The analogy is scalable. If you are in enterprise, you wouldn’t expect to be an expert in implementations of databases and customer relationship management software, so why not let an expert deal with that, so you can focus on what you do best, interacting with your customers. Technology is a partner, and helps facilitate business, it is not the core of your business. And for that reason, the cloud is a perfect solution.

Risk and Rewards

Yes, there is risk. There is risk in everything we do in business. Calculated and managed risk can involve great reward and with technology improving at such breakneck speeds, these risks can be minimized. Redundancy and security solutions can be customized to alleviate any concerns a company may have regarding outsourcing technology and processing information. So, why not let a professional that has expertise in assuming those levels of risk, and manages global security on a holistic scale do that, rather than go it alone when it’s not your forte?

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This week, I was fortunate (and unfortunate) enough to have been by my 88 year old grandfather’s side as he passed away from what Hospice called “adult failure to thrive.”

In essence, he was ready to let go, and did so peacefully and at home with his remaining two children, and two of his grandchildren. He was a kind man, and a devoted United States Marine who was given an Honor Guard at his funeral for his service during World War II. Quite a fitting send off for Sgt. George J. Coppola, Sr. You will be missed.

The hours and days leading up to his peaceful departure were anything but that. I’ll spare the details, but with the blizzard and some emergency work situations that needed my attention, there was not much time left for me to think about packing to go home to see my grandfather.

When I realized that my grandfather was deteriorating at an alarming speed, and the end was near, I rushed home to be with him and my family. In the chaos that led up to my trip, I forgot most of the clothing I would need to wear to the services, viewing, funeral mass and repast that we would be having–the Italian heritage bleeding through.

(I know that in the grand scheme of things, this is quite trivial. And the customer service I received after trying to find something suitable to wear to the funeral to honor my grandfather, was anything but trivial.)

Around 11p two days before I would need my suit, I noticed it was not with me. How could I forget that I didn’t have a suit for the funeral? I was agitated at myself for such a simple mistake. As a Marine, he always made sure the grandkids were dressed, and his funeral would be no exception.

I had to make a quick decision, and I remembered reading an article in the New York Times about CEO Mickey Drexler and his retake on American suiting at J.Crew, and how well received it had been. I felt that my best bet, for a properly fitted, last minute suit, would be through their brand.

No Solution.

I called the 800 number, already agitated, and explained my situation to the call center agent. I thought that I was speaking with one of their “personal shoppers” which I receive weekly postal-mail about, and special “front-of-the-line” phone numbers to call. (Marketing!)

I said that I had an emergency and that I am without a suit but I need one by tomorrow afternoon. I explained I could not get it online, but that if the agent could let me know what stores carry men’s suiting, I would be able to see if they had my size, and problem solved.

The young lady told me that the online store doesn’t have that type information, and I would have to call each individual store to see if they carry men’s suiting, or I would need a particular part number and she could find out if it was a retail part.

What?

I was thoroughly confused. J.Crew has been over advertising their “white glove” personal shopping service, and for me to get the response I did, I was dumbfounded.

Conveniently, J.Crew lists a 24-7 email address that I sent a brief but specific query to. I needed my suit for an emergency situation, and I needed it the next day. I just wanted help in finding a store that would meet my needs.

J.Crew Customer Care

Within 10 minutes, at 11:40 that evening, a representative from J.Crew called my cell. I realized that I didn’t provide my cell in my email, which I’ll speak to later. The agent offered her apologies for the mix up, explained the process, asked for my sizes, and said she would be back to me within 30 minutes or so. Either by email or cell.

At 12:15a, I received another phone call, and they had located a grey suit for me, and they were placing it on hold. They also had just sent me pictures and the details to my email address with this information. The following morning, just after 9a, another agent called and said he had already talked to the personal shopper at the store, and everything will be ready for me to pick up when I get there.

My WOW Moment

I was blown away by a few things about this experience. First their customer service was exceptional. I wasn’t expecting a return phone call, and yet, had one within minutes. I didn’t even give them my phone number, so they used their relationship manager to uncover my past “contacts” and called me at the most likely number I would be reachable at.

I then wasn’t expecting to have them find a suit for me, and yet, they did, but what was most impressive, was that the technical ability for them to do such a thing would not have been possible without a proper CRM system in place, and the training of their more veteran staffers to take care of unique and unfamiliar situations.

For them to take my size from me at midnight, find a store nearby that they were certain would have it in stock, and then place it on hold without anyone in the store was remarkable.

This is why I love working in technology. Take a situation like the one I was in, and from a systems stand point, J.Crew did an amazing job at repairing a relationship that would have caused me to bring my business elsewhere. It worked out so well for me, that I’m spending time writing about this, and sharing my fondness for the relationship management systems they have in place and training they provide for their people.

Job well done J.Crew

Glad systems integration is truly having an impact on your customer’s lives.

Update (03/04/10 9p)

I’ve had some comments from friends relating to the fact that what transpired was “people” related, as opposed to technologically related, but I will gladly elaborate on why I feel this is a win for technology, without downplaying the people piece.

Yes, it was a phone call that initiated this exchange, and a return phone call that made me think twice about the customer service that I received from J.Crew. But, it was a CRM package that allowed the rep to contact me in a matter of minutes when my email came through the generic “24-7@jcrew.com.” It was a CRM package that gave the rep my cell phone number when my email failed to list one. It was an ERP package that allowed the rep to track down inventories at closed locations, and place them on hold for me, and it was a CRM system that triggered a follow-up phone call the next morning.

The processes that are in place and the technologies that are integrated into said processes, are what enabled the “people piece” to work flawlessly. The training systems, the exceptional customer service levels, and the quest for client satisfaction are all filters that firms use to transform mediocre experiences into those of the exceptional variety. But, to have these experiences on a global level with the sheer volume of transactions that take place, it absolutely requires incredibly integrated systems just to handle the simple workload, let alone, keep track of the progress of each customer “touch.”

So, yes, it was ultimately a personal experience between myself and many service reps at J.Crew throughout their store and their personal shopping center, but it was the technology working behind the scenes and systems integration of those technologies that made it all possible. At least, in my biased opinion.

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I’m a bit surprised that this is just beginning to be a trend… but nevertheless…

A recent survey of business leaders, conducted by the Economist Intelligence Unit and commissioned by Accenture, revealed what those IT and business leaders are discussing in their closed-door budget meetings. The results hint at one thing when it comes to IT: strategy.

via BlueLock - IT to go “strategic” in 2010.

In fact, when discussing technology and the role of IT in an organization, strategic partnerships with the other functional areas should be a primary goal, as technology can directly influence behavior in the organization and more importantly revenue streams.

For example, technical oversight via systems processes can ensure proper and legal behaviors of the staff, integration between business models can influence collaboration and timeliness, and an IS&T strategy can ensure that the functional roles and tactical behaviors of employees are focused on clear value added jobs and responsibilities.

IS&T can also affect customer behavior and employee attitudes towards customers when they have a clear view into each interaction between the firm and those respective customers through proper CRM implementation and how the customer has responded through business intelligence and analytics.

Proper implementation and strategy of information technology and systems is one of the primary strategic goals that any global Fortune 100/500  firm can implement in order to ensure sustained competitive advantage, even if they are focused in other areas for profit.

One reason why this may not have been a trend until recently, is I that it can be incredibly difficult to identify the causal relationship of IT to behavior in an organization and most if not all will be anecdotal. That can cause problems for many ‘quants’ out there.

I would guess — while I believe these systems can and do impact tangible returns like an increase in revenue and a decrease in expenses — there is really no way that you can eliminate (at least in a real business climate) the variables that affect behavior.  But with enough anecdotal evidence, you can piece together a proper idea of the effects of information technology on said business climate.

If we look at a case in which an industry that is primarily driven by other means, such as the Banking sector, one can’t imagine an environment where technology wasn’t a strategic asset. Banks certainly can’t focus on their trading and asset management without a proper IT strategy, and it needs to go to the heart of the organization so that it influences individual behaviors and roles. Otherwise, focusing on any other opportunity or strength is in vain, and the firm is destined to fail regardless. This can be related to any number of industries including the energy sector.

And when they fail at IS&T it can be disastrous for the firm, and should be noted when determining any future strategy.

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The current landscape of the enterprise information systems sector is one with a vast selection of software vendors armed with a seemingly endless number of proprietary software applications. In the typical business model, the users of these applications are charged large sums of money for licenses to run the programs, and at times, even larger sums of money for maintenance contracts. For many, the proprietary software model works well. We have seen exponential growth in companies like Microsoft, Oracle, and SAP to name a few.

Their enterprise software application divisions are hugely profitable and their support networks mean that long after a system is designed, configured, analyzed, tested and released, the vendors (and consultants) have been well compensated. And for good reason: the software is often times difficult to implement, extremely complicated, and typically needs proper configuration to meet the needs of most large-scale enterprises.

Note: This is in contrast to the standard application service provider (ASP) model, which can also be called SaaS or Software as a Service. In looking to the future, I believe the real evolution of software lies in cloud computing, and more information can be found here.

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SaaS gives SMEs the power to ride out recession

29 June 2009 Enterprise Systems

Software as a service (SaaS) could be the panacea for smaller business, according to research published today.
Investing more in software as a service (SaaS) and enterprise resource planning (ERP) could help smaller businesses lower their operating costs and help them grow in spite of the recession.
So claims a report released today by Ardent Solutions, […]

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How to Support Your IT Innovators

17 June 2009 Enterprise Systems

The key to freeing IT up is to increase the “IT smarts” of your team. In my previous post, “Find the IT Innovator Within” I recommended creating an “IT gifted and talented” program for the lead (or power) IT innovators on your team by elevating the relationship with IT from supporting existing technologies to supporting […]

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