Posts Tagged ‘agile’

Charity Closing over IT Problems

Thursday, November 19th, 2009

Yesterday’s report by Civil Society that charity IBS-STL UK is trying to sell off its operations and wind itself up after the failed implementation of a new supply chain IT system underlines the importance of managing IT system implementation and the resulting business change very carefully.  IBS-STL UK includes Christian bookshop Wesley Owen and had a £38m turnover.

Their UK general manager is quoted as saying “the implementation of the ERP caused all kinds of problems with inventory and it was just as the recession hit.  Those two things together gave us serious problems.”

IBS-STL UK’s failure isn’t the first such IT led change programme to go wrong (Sainsbury’s supply system problems in 2004 resulted in a £256m write off for example) and I’m sure won’t be the last.

However, as mentioned in a previous blog, using an agile approach with incremental change (complemented with sound project and change management, and thorough testing) can significantly reduce financial exposure and risk.

Business Transformation without the Fright Factor

Thursday, July 9th, 2009

Being told that your business is going to be transformed sounds scary. Transformation is the sort of word that sounds frightening and fraught with risk when you’re told it is going to happen to you, … and celebratory looking back at your achievements.

When broken down into a sequence of small steps, though, it can be achieved with little risk.

Take The Guardian for example. The Guardian wanted to transform its business by moving the Guardian Unlimited news website onto a new content management platform to provide a more attractive offering to users, provide them much more flexibility in managing their content and give them improved opportunities for advertising.

A similar story is true at the Association of Accounting Technicians (AAT). 5 years ago, as Jane Scott Paul, the AAT’s Chief Executive said recently, they set out a plan to transform themselves into an organisation that is attractive to their target audience - their members - to enable them to access the vast majority of information and services online.

In both cases, rather than take a “big bang” approach to transformation, they have approached it in a series of small, incremental steps. The advantage of this is that the financial exposure and general risk is significantly reduced and there is early assessment of the real business benefits.

So, the key to business transformation without the fright factor is incremental implementation. This reduces both financial exposure and risk, and allows the transformation to be validated (and adjusted if necessary) throughout the process - a classic application of agile techniques.