Gold Magazine April - May 2013, Issue 25 | Page 63

Gold: It’s surely no secret that companies can improve their performance in a variety of strategic areas by aligning their ICT infrastructure with their business goals. Are there still companies out there that are unaware of this basic idea? Maria-José Sobrini: Although there are very few companies which are unaware of this basic idea, many of them take bad decisions. In general when companies fail, conventional wisdom blames external factors: the economy, regulatory actions, and geopolitical challenges are but three prime culprits beyond the control of decision makers. In reality, however, bad decisions - factors within the control of companies themselves - are what overwhelmingly cause firms to lose their leading positions. Over the past 10 years, 159 of the 500 largest companies globally by revenue have been displaced. And in many cases, company executives may not have realized the impact of their own decisions or they may not have been well informed when they made them. This observation is supported by a survey of 1,028 executives and 993 junior managers and individual contributors conducted by Cisco’s Internet Business Solutions Group (IBSG). Though many of their subordinates begged to differ, 71% of executives rated their performances and decision-making abilities from “good” to “excellent.” These included leaders in financial services, where 439 bank failures since 2008 continue to leave a legacy of economic malaise, and retail executives, who have seen 37 major companies file for bankruptcy protection in their industry since 2010. The good news is that a revolution in decision-making stands to change things for the better. Cisco IBSG calls it Decision-Driven Collaboration. This new model represents a fundamental transformation in the way leaders perceive and manage collaboration in the Those in the IT community need to stop acting like vendors and, instead, focus on helping people solve problems workplace. It is supported by breakthroughs in collaboration tools, including video, mobility, social media, cloud services, and cutting-edge analytics. But it begins with recognition that everyone is a decision-maker. And while the executives still make the final call, expertise from all corners of the organisation is welcomed into the process. The ultimate payoff is millions of better decisions (not just big, critical decisions, but smaller, daily ones as well) that are fact-based, highly informed, and ever more efficient and effective. Gold: Given the speed at which technology is changing and developing, isn’t there a danger that companies may need to be constantly investing in new products rather than in their core business? M.J.S.: Technology should allow companies to concentrate on their core business and it should make business process flow much easier. If IT does its job right, it will be deeply embedded in the fabric of every business process over the next few years. IT and business groups will work together seamlessly. To do this, though, those in the IT community need to stop acting like vendors and, instead, focus on helping people solve problems. We are rapidly approaching an “inflection point” in the industry where we’ll need IT leaders who are experts in business first and IT second. IT needs to become a business partner.  IT professionals and businesses must speak the same language. Businesses must ask how IT can help solve its business goals, and IT leaders must help business leaders achieve their goals. Gold: In your experience, are successful companies generally open to innovation or do you regularly come across a mentality of “we have always done things this way”? M.J.S.: Successful companies are not just open to innovation but most of the time they are leading it. We can see an explosion of new technologies that create new winners and losers in nearly every industry. In an engagement with a major global manufacturer, Cisco IBSG identified three key factors in the product innovation process that companies must clearly understand and be able to orchestrate. They must develop a technology strategy, arrange and manage ecosystem partners, and prepare and execute detailed plans for managing market interactions, from initial introduction through full-scale market management. How well they deliver on this model will help determine whether a company will be a disruptor in its market space or one of the disrupted. Gold: How significant are social networks to business today? M.J.S.: I’ll just mention some numbers and leave the conclusions to your readers. A whopping 90% of young people use their smartphones to help them face the day, often before they get out of bed! Even before a cup of coffee, young people grab their smartphone. They’re checking it for e-mails, texts and social media updates. The phone has become as much a morning ritual as the toothbrush. The gap between my generation and younger ones in how we use technology is getting smaller. Interestingly, as we older folks are getting more comfortable with technology (and seeing its value), younger people are getting less starry-eyed. For example, more than a third of the young people that we surveyed suspect that people present themselves differently online than in the physical world. This year’s study also found that three out of four don’t trust Internet sites to keep their data private, and nearly a