Eliminating the Innovation Disconnect
By Vinnie Mirchandani, Deal Architect
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The MAGIC Framework
So what gives? I have laid out a 5 element framework below which summarizes what I am hearing from CIOs (and the CIO as a proxy for business executives as they look at IT to help them innovate). Also included in the framework is advice on what each element means to software vendor strategy.
- Mashups - In the CIO world, there is a clear recognition that there is no single "silver bullet." Mashups to them means exploring every nook and cranny of the Doblin innovation framework: business model changes, channel optimization, product improvement and more. They want basic building blocks in each area - Web services, RFID, whatever - and then allow their teams perform the mashup.
Advice for Vendors: Curb your enthusiasm. You may think your technology solves world hunger (like many startups do), but few vendors can dream of or service the wide range of innovation CIOs are looking at today. Present your capabilities rationally and understand that your product, individually, is a small part of the CIO's innovation portfolio. Don't go with a 400 percent solution. CIOs are tired of over-featured products that end up as mostly shelfware. - Alpha Technology - A quiet revolution is taking place in CIO budgets. After years of vendor consolidation, the budget share of the top 10 vendors is now shrinking.
CIOs now realize they have to take more risk to deliver innovation and are willing to give younger vendors and technologies more of a chance - but only to vendors of practical, usable technology. What many vendors may consider boring is often delightful to CIOs.
Here's an example. A CIO recently waxed eloquent about the payback from deploying Wi-Fi a couple of years ago across his major corporate campuses. Employees arrive to meetings with their laptops. They access the corporate network without having to go back to their office for some report or to check with a colleague.
The project cost was nominal but the payback from this "institutional knowledge" has been unbelievable. Call it boring if you want - but the CIO defines it as innovation.
Advice for Vendors: The number of patents you have is often not that important. The number of innovations in "release 8" of an established product is equally unimpressive. Early, but usable, technology in the hands of the CIO's team is what counts. - Global Inspiration - While globalization is affecting every business executive, in the last couple of years, I have seen CIOs travel more and become more fascinated with global sourcing. Mobile applications from Korea. Open Source from Scandinavia. BPO ideas from India. Manufacturing innovation from China.
CIOs are becoming global faster than many of their executive peers. And they're global in another sense: they're willing to look outside their own verticals. They do want learn about Web Services at banks, telematics at distribution companies and other innovative applications of technology in different industries.
Advice for Vendors: Historically, every buyer has asked vendors to show them relevant, industry-specific citations and applications. This practice will continue. But you may be surprised at how open CIOs are to new ideas from other industries and countries.
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