robert m. reeder, senior vp & cio (retired) april 2011 tela
TRANSCRIPT
Robert M. Reeder, Senior VP & CIO (retired)
April 2011TELA
• Alaska Airlines Quick Facts• Breakthrough Timeline
Alaska’s Quick Facts
• First to sell tickets on the Internet
• First to successfully use airport kiosks
• First check-in from home or office
• First airline to offer wireless check-in
What does Breakthrough mean?
A sudden advance, especially in knowledge or technique
A sudden advance, especially in knowledge or technique
From Innovation to Breakthrough
Adoption
The Breakthrough Timeline
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
Breakthrough!
Adoption
The Breakthrough Timeline
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
Front end Development Commercialization
Adoption
The Breakthrough Timeline
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
Compress
Getting Started
Premise• A business process is a logically related
set of activities that define how specific tasks are performed*
• Every business can be seen as a collection of business processes that support a business model*
* Management Information Systems Laudon & Laudon
ImpactThe potential impact of a business initiative
(Innovation) is directly proportional to one or more of the following:
– The extent of change in business processes or the business model
– The commitment of capital– The resulting organizational change – The scope of change for customers– The scope of change for employees– And, perhaps, the scope of the technology
* Management Information Systems Laudon & Laudon
Return
Risk
Impact
Initiatives that have smallimpact probably havesmall returns
Return
Risk
Impact
Return
Risk
ImpactHelping people perform their tasks more efficiently and effectively
Can be foundational for an objective that has a greater return
Gartner calls this “Stay in the Race”
Automation
Automation• Updating an existing transaction system• Creating a data warehouse• Improving the automation of a business function• Changing an output from paper to on-line• Catching up with a competitor
Return
Risk
Impact
Automation
ChangingProcesses
Processes are created, streamlined, combined, or eliminated
Business model may change
Gartner refers to this as “Win-the-race”
Changing Processes• Modifying processes to take advantage of a new
system• Boeing - 777 on line CAD (CATIA)• Boeing - 737 assembly line• Alaska - Customer Care call center integration
• FoxMeyer Drug – ERP
Return
Risk
Impact
Rethinking the nature of the business, new business model, or changing the very nature of the organization
“Change-the-rules”
Automation
ChangingProcesses
ChangingParadigm
Changing Paradigms• Amazon.com• NetFlics• alaskaair.com• Alaska – airport kiosks• iPad
• Boeing 787 supply chain – modular construction?• Spud?
• Home Grocer / Web Van
Return
Risk
Impact
Automation
ChangingProcesses
ChangingParadigm
Return
Risk
Impact
Automation
ChangingProcesses
ChangingParadigm
Getting StartedVisionary LeadershipTalent hits a target no one else can hit, genius hits a target no one else can see - Schopenhauer
• The right idea, right time, right plan
• The right people who can get it done
• Clear, consistent, supportive leadership
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Compressing the TimelineThe potential impact of a business objective is directly
proportional to one or more of the following:• The extent of change in business processes or the business
model• The commitment of capital• The resulting organizational change• The scope of change for customers• The scope of change for employees• And, perhaps, the scope of technology
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Compressing the Timeline
The sooner you identify and address the needs of the various stakeholders, the shorter the path will be to adoption and Breakthrough
Adoption
Time
Imp
act
Idea
“What if we?”
Innovation“Let’s try this” “Leverage
the success”
Percentage of Sales on alaskaair.com
0
5
10
15
20
25
30
35
40
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Adoption
www.alaskaair.com
Time
Impa
ct
Idea
“What if we?”
Innovation
“Let’s try this” “Leverage
the success”
6/95 - 12/95 v1 12/95 - 9/99 9/99 - present“We’re going to be 1st!” Channel conflict “Let’s hit 50% by 2005”
Organization change 9/99
SummaryBest practices for success• Create a balanced portfolio of projects• Find people with vision and passion for change• Augment them with people who can finish• Early in the cycle, address changes to:
– Business Process– Business Model– Organization– People– Capital– Customers
SummaryIT’s role in changing the business• Know the business• Help people see the possibilities• Develop solid executive support• Use iterative development with short cycles• Develop expertise in process improvement• Identify and involve all stakeholders - early• Use project management
• Go the extra mile to make it happen