Building an IT Scorecard

NOW THAT WE ARE PERHAPS BEGINNING TO SEE SOME RELIEF FROM OUR
current economic woes, it might be a good time for CIOs to focus on how
they would like to be measured during and after the recovery.Performance
measurement is a complex issue because it both drives and constrains behavior. As
the old performance-system design aphorism goes,“You’ll getwhat you measure,so
measure what you want to get,” and examples of the unanticipated consequences
that can arise from poorly aligned though technically correct measurement systems
abound. Nevertheless, a well-designed measurement platform can motivate both
customers,whether internal or external,and staff to perform better and build more
effective relationships.CIOs who want a say in the future investments their companies
make in business automation will almost certainly be required to show that
these investments will generate effective returns.
Balanced scorecard models are a good way to think about the tricky issues of performance
measurement, because they explicitly call out the different but related
areas where measurements are important and help to decide what measures are
relevant in each area.But what should a “recovery scorecard for IT”look like? The following
whiteboard has been put together by Capgemini’s John Parkinson as an
approach to an IT-focused measurement framework. It has been “tested” at least
conceptually at a number of Capgemini’s largest clients and found to be a good basis
for CIOs who want to adopt a performance measurement platform and build an
effective performance measurement system for their organizations.

ceo increased complexity

With globalisation comes increased complexity. Complexity
can be good when it involves commercial activities that add
value. It can also be bad when it involves geopolitical forces
that are beyond the CEO’s control. Respondents to the
survey understand the difference but are unsure of how best
to manage complexity when it is positive and to reduce
complexity when it is not.

Collective Strategy is the attempt of organizations

Abstract
Collective Strategy is the attempt of organizations to manage their interdependence
by substituting contractual for competitive interconnectedness,
creating a partially endogenous social environment. This paper
discusses the concept of Collective Strategy and applies it to the collaboration
of firms in an industry, which have the objective to reduce
competition within the collective in order to increase firm value. It is
argued that a collective strategy can be a useful and sometimes necessary
complement to traditional strategies that attempt to create a
competitive advantage on the firm level. Like for an individual firm,
industry-attractiveness and the competitive position vis-à-vis rivals are
determinants of a collective’s ability to increase firm value; both can be
addressed by collective strategies. Collective strategies are discussed in a
new strategic context, which is characterized by lower transaction costs,
reduced barriers to entry, hypercompetitive tendencies, and increased
uncertainty. Some of its characteristics make collective strategy more a ttractive
and practicable, whilst others increase the particular coordination
problems typical of collective action. The distinctive incentive
problems that result from the prisoner’s dilemma nature of the payoffs
from collusive collective strategy are analyzed; solutions are evaluated
with respect to their likely effectiveness in the new strategic context.
Based on the discussion of the attractiveness and feasibility of alternative
structures of collusion, suggestions as to the optimal design of
collusive collective strategy are made.

Business Strategy for the BBC

“I think there will be a fundamental shift in the way that people consume
content. They will be looking to consume content on their terms, and in
forms and shapes and platforms that suit their needs. I think this will take
a long time and that different parts of the population, or social groups,
will move at very different speeds.” Richard Halton, Controller of Business Strategy for the BBC

Media & Entertainment practice

“This is just the beginning for a rapidly changing landscape where the
media content environment grows more fractious and the user gains more
control and power. Traditional, established content providers will have to
adapt and develop new business and monetization models in order to
keep revenue streams flowing. The key to success will be identifying new
forms of content that can complement their traditional strengths.”
Gavin Mann, digital media lead for Accenture’s Media & Entertainment practice

The Revolution Will Be Televised

“Technology will continue to alter the distribution landscape, allowing
people to access content on their own schedule, wherever they are, in all
kinds of ways. Current technologically-driven distribution channels will
expand and new ones will open. But without compelling content, every
new platform is an empty shell. Companies that can combine world-class
content with powerful national and local distribution will have the
competitive advantage.” Leslie Moonves, President and CEO of CBS Corporation

Web 2.0 space

• However, despite the perceived
threat, 68% of respondents believe
that they will be able to harness
user-generated content to create
revenue within one to three years.
• Nearly 80% of those surveyed
believed that there was no bubble in
the Web 2.0 space, with 70% of
respondents also observing that social
media was a natural, “evolutionary”
progression for media (versus 25%
calling social media “revolutionary”
and 5% calling it “a fad”.) As a
reflection of this upbeat perception,
over 90% of the executives said that
their companies would become
involved in social media over the
next 12 months.
•Half of executives indicated that
advertising could grow to become
the most prevalent business model in
the industry within five years, with
digital advertising driving growth.
• Content remains king (according to
37% of respondents), although the
crown is under attack by technology
companies (26%) and telecommunications
players (9%).
• Critically important is the need for
digital readiness and a future technology
road map. Only by transforming
their organization and capabilities
can media and entertainment expect
to maximize the opportunity that
digital offers. This includes increasing
reach (through multi-platform
distribution), engagement (through
social media and interactivity) and
monetization (through digital
advertising). See “Implications” section
for more detail.