The Fire of Technology

The use of fire changed the course of human evolution. When humans learned how to use fire, we exponentially gained a competitive advantage. At the same time, if not respected and used appropriately, fire will burn you; badly. Similarly, technology can add tremendous efficiencies, lower costs and competitive advantages when done right. If done wrong, it can drain internal resources, add additional costs, and erode client value.

Successful companies who have enjoyed growth often find themselves with complex business processes scattered across business units, geographies, products, and services.  These processes are often referred to as their competitive advantage or “secret sauce” and have grown over time to maximize client value and revenue. Although these processes provided significant value, they were not harmonized across the organization as it grew.

As these processes become increasingly more complex and difficult to manage within the organization, companies often turn to or worse, lead with technology to manage or “tame” these processes.  This often results in technology attempting to duplicate these processes versus re-inventing them. Technology overlaid on top of old processes leads to a disruption that de-focuses client value and adds additional costs. As a result, the organization often misses the opportunity to add efficiencies and increase client value.

We have all seen the headlines of the technology implementations that have gone terribly wrong. My personal favorite is the failed ERP implementation in which Hershey was unable to deliver chocolate during the Halloween season.

So how does one use technology to drive efficiencies and more importantly add client value? I would propose at the highest levels, a 3-pronged approach:

1. First, understand and optimize current business processes.
2. Start small and prioritize the use technology to drive client value as opposed to internal efficiencies.
3. Create and implement change management processes to manage the change day one.

Before discussing technology, it is important to understand the current business processes and operating model. How does the company make money? What are the value propositions, partners, key resources etc. There are many tool kits out there to assist companies mapping out a business model. 

Once an understanding is accomplished, I would suggest that the company look to optimize these business processes before having a conversation regarding technology. I suspect that if enough effort is put into the modeling exercise mentioned above, organizations will find some low hanging fruit from which to benefit such as streamlining workflows or improving communications before a discussion of technology even occurs.

Once the businesses processes are fully understood and optimized to drive efficiencies and client value then, and only then, should a company start to have a conversation about technology. My suggestion is too look at the holistic business process and focus on smaller incremental pieces of technology that that can drive additional client value. 

Why? Because technology is disruptive. Anytime you add technology it will be disruptive given the general angst, change (more on that later) and education required. I think by now everyone has given up on the big bang approach to implementations and have realized that a smaller more iterative approach increases success, allows you to adapt and add value in a quicker fashion. And if you have done your homework on the business processes, the touchpoints with clients or partners will provide ample opportunity to add efficiencies, lower costs and client value.

Finally, change management needs to start day one. Communicating to stakeholders (staff, clients, partners etc.) the approach, rationale and reasoning will begin the change management process. Additionally, including staff in the business process mapping will give a sense of ownership and can provide a great deal of insight into current processes leading to some potential low hanging fruit. 

But, beware. This is also an opportunity to jump to conclusions. When you are so close to a problem, you don’t see the forest from the trees which will make the jump to technology really easy. It will take a strong facilitator to stay true to the process, so those attempted jumps are met with a process that first focuses on business process, on a holistic approach, and then technology.

As fire, technology can be greatly beneficial. And the lure of fire can quickly lead to benefits that may be obvious and rational, but if not handled appropriately will take on more risk and potentially create a fire hazard. As someone who has spent my entire career building technology, I’ve seen the value grow exponentially. It’s exciting, but it can also burn you. Going back to the Hershey example, a focus on the business processes, starting slow, focusing on client value, and carefully managing the change management process will lead you to an increased number of chocolates.