While I was reading the last article by Ephraim Schwartz, InfoWorld on ecommercetimes.com, and combining it with Kathy Sierra new proposed discussion on the best model of innovation, I have been wondering how those two main streams can be connected or related?
The new IT Trends
Schwartz elaborates on two current trends in IT with diametrically opposed points of view. The first is shared services, wherein the IT organization becomes the internal service provider to the rest of the company. The second is combined business process and IT outsourcing all done under one roof — although, of course, that roof is somewhere other than at the company.
In a shared-services environment, common IT functions are consolidated rather than spread across an enterprise in siloed systems. This environment allows companies to analyze the value of services that are provided to internal customers, in order to change or optimize them, says Joachim Frank, vice president of the enterprise infrastructure practice at HP Services.
Carrington, who leads Capgemini Outsourcing North America, believes, on the other hand, only outsourcing can make a company truly accountable for performance. As he sees it, IT departments and the various organizations that create business processes within a company are all separate silos, each with their own management teams and budgets. There is no incentive to reduce someone else’s budget. When they bridge all of the silos under common ownership, Carrington says, companies see tremendous savings.
HP’s Frank and Capgemini’s Carrington believe that choosing between a shared-services model and an outsourcing model is a philosophical decision, but both staunchly defend their models.
The new innovation model
On one of his latest post, P. Tsarchopoulos redirect us on a post of Kathy Sierra. Kathy argues that Professionals in any field come in two flavors: Knowledge Sharers and Knowledge Hoarders. The hoarders believe in the value of their “Intellectual Property”(IP). The products of their mind must be carefully guarded lest anyone steal their precious ideas. But let’s face it–if our only “strategic advantage” is our ideas, we’re probably screwed. It is mostly the case that ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.
The combining point
By reading those two mentioned above posts, becomes even more evident the case of the proposed open model for innovation development. See the brainstorming map If everybody keeps their knowledge – ideas in silos than it will be very difficult to utilize and value that knowledge. This post is not an argument on free knowledge its and argument in favour of sharing and transferring the knowledge – ideas.
- Shared Service Model or Outsourcing – Which Is Better?
- Creating Passionate Users: Mosh Pit as Innovation Model
- P. Tsarchopoulos post on URENIO