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Editor's Notes

3 Posts tagged with the innovation tag
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Innovation. Everyone wants it; few achieve it — or at least not easily. That’s a fact I was considering recently when I interviewed Faye Sahai, Executive Director of Innovation and Advanced Technology at Kaiser Permanente, on the topic of “Seeding Innovation.”

 

Fostering innovation-- a topic we have discussed previously in a blog and another here -- is gaining new urgency. Scan the news these days and you’ll see summer camps, professional organizations, governments, and of course businesses in every industry and country, offering awards, incentives, contests and funds for new ideas. They all seem to know that without innovative approaches and fresh ideas, the economy will stagnate and progress will stall. Why, then, is it still so tough to really execute on these goals?

 

One reason, alluded to by Google’s CEO Larry Page last week, is that you have take risks. In response to questions about the company’s innovation model, he was quoted as saying: “When we started doing search, people thought we were crazy.” Clearly, that risk has paid off.

 

Another big innovation inhibitor is funding. Even Google’s Page and other executives — never mind those lower down in the organization — have to defend some seemingly “crazy” investments to nervous boards and investors who don’t see innovation for its own sake as a good business model.

 

Additionally, many experts say that in order to succeed, you have to expect some failures along the way — and that’s not always easy to accept. In fact, at many organizations, corporate culture can become a barrier that restrains innovation. Unless everyone is in sync — and makes innovation part of the way the enterprise operates — it will be tough to pull off.

 

These are all points that Sahai addressed during our interview. Kaiser — one of the nation’s largest not-for-profit health plans with $424.2 billion in 2010 revenue and more than 8.6 million members — seems to have conquered these innovation obstacles, and a long list of awards and accolades demonstrates that it’s on the right track.

 

It certainly helps that Chairman and CEO George Halvorson is on board, as is the CIO, Phil Fasano. But even with buy-in, innovation could get stalled in the discussion phase without someone like Sahai and her team driving it forward every day.

 

As she told me, “Innovation is in the company’s DNA; it’s part of our root and core.” To some, Sahai may have a dream job, with access to internal and external partners and the weight of Kaiser’s Garfield Innovation Center at her disposal. But her own diverse background in both IT and business has helped her to champion ideas and inspire others while aligning with the business every step of the way.

 

With healthcare reform and competitive pressures, she knows that there’s a lot riding on leapfrogging others with new robotics, e-health and predictive analytics, as well as fast delivery of member services. At the same time, she needs the support of the doctors, nurses and providers who are often more concerned about high touch than high tech.

 

Her tactics are to collaborate closely with IT to “operationalize” innovation rather than keeping it in silos. For instance, she uses an internal social media platform to share ideas and expertise among employees “so it bubbles up” through the organization. Additionally, HR rewards idea-generation as part of employee performance reviews. It takes “technology, people and funding,” to put ideas into action, she says.

 

Sahai makes it seem easy to seed innovation — and maybe it is. Her advice? Open the environment to employees and partners; identify a leader and a strategy and fund the efforts, and encourage sharing of both successes and failures.

 

Hey, it’s worth a try …

 

You can find more data on IT innovation in this article on Smart Enterprise Exchange. For more details on Kaiser’s efforts, read the current issue of Smart Enterprise magazine. Also, listen to the full podcast with Faye Sahai and let me know your thoughts.

 

 

 

Paula Klein

 

Editor and Community Manager

 

Smart Enterprise Exchange

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July 2010

 

Although it is definitely possible to see results from smaller, incremental projects, bigger certainly looks better when it comes to most IT innovation. It seems to me that what some CIOs view as “practical” innovation, however, might be far out of reach for the majority of businesses today. As an example, in a wide-ranging conversation about innovation and other topics, two leading CIOs each discussed how they have built their own private cloud networks.

 

To me, these CIOs clearly represent the leading edge of IT, not the mainstream. John Halamka, CIO of Beth Israel Deaconess Medical Center and Harvard Medical School, is well-known as an intrepid early adopter of emerging technologies and an e-healthcare industry leader, as his blog often explains. Speaking with Smart Enterprise Exchange recently for an upcoming podcast about Practical Innovation, Halamka said that the size of his operations has allowed him to host e-health record services for several smaller hospitals.

 

“If there were a cloud offering available with the security and privacy I need, I’d use it,” he said, “but [my IT operation is] big enough to provide e-health record services for smaller users from our cloud,” he said. Halamka has 5,000 CPUs and “petabytes of storage” available “at low cost for thousands of users in the Harvard community.”

 

Another innovation podcast panelist, Richard Plane, who was until very recently the VP and CIO at Aviat Networks, formerly Harris Stratex Networks, has also built a private cloud for use by the company. Plane said he was looking for a public cloud provider “to seamlessly manage” the private cloud and public offerings. Using only a public network might lower costs, he said, but since most public providers still need to do more work on security, Plane is sticking with the private option for now. He recently joined Harris' Cyber Integrated Solutions as head of solutions development and delivery.

 

Long term, both CIOs expect to show financial savings as well as productivity improvements and better services with their cloud options. In fact, Halamka said that in a hosted private cloud environment, he can cut about 50 percent of the support costs of solution delivery. “Demand for services far exceeds budget growth. We have to cut costs with cloud and outsourcing” options, he said. Moreover, their cloud efforts represent just one innovation among many that these two CIOs' businesses are pursuing.

 

Tom Kendra, Executive Vice President for CA Technologies’ Enterprise Products and Solutions business line, agreed that cloud models give CIOs more choices for delivering services to internal and external customers. CIOs are now “managing a supply chain of options — all driven by technology innovation,” he said.

 

All CIOs may have more options with cloud technology, but as with other emerging technology efforts, the playing field is not level; bigger businesses have far more choices — and therefore, advantages — than others.

 

The full podcast includes discussion about mobile devices, virtualization and alternate IT delivery models as well as Practical Innovation. It will be posted on Smart Enterprise Exchange very soon.

 

Meanwhile, I invite you to share your experiences about funding IT innovation efforts such as cloud computing. Will you develop your own private clouds — or will you be among those who use the services of others?

 

And if you are concerned about cloud security, this month we also feature a Q&A with Nils Puhlmann, co-founder of the Cloud Security Alliance, who (surprisingly?), says that many security concerns are overstated. You can read the interview here.

 


Paula Klein
Editor and Community Manager
Smart Enterprise Exchange

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January 2009 in Editor's Notes

Posted by Paula Klein Jan 15, 2009

Editor's Note

Amid all the sobering headlines and economic news we see daily, it's refreshing for a business leader to offer some optimism — especially when it's backed up with concrete solutions. Judy Estrin is far from naïve about world events or the challenges facing the IT industry. In fact, her long tenure as a Silicon Valley executive — experiencing its highs and its lows — has given her a lucid and long-term perspective.

 

I had the chance to speak to Judy recently on the subject of IT economics for the Smart Insights Q&A we feature this month. I asked her to expand on some of the topics in her recent book, Closing the Innovation Gap (McGraw-Hill, 2008), by advising CIOs on how they can become better innovators and more creative leaders — even in a downturn.

 

It won't be easy, but as she says: "CIOs can facilitate communication, put processes in place, seed small projects and enable ideas to happen. Executives can use the current climate as motivation to move and change the corporate structure; to collaborate better." More than sound advice, her ideas provide a framework for keeping your IT operations moving forward this year.

 

From a technology perspective, many CIOs are strategically adapting their IT infrastructure and data centers to boost corporate efficiency, save money and streamline operations. Among those we profile this month for our Smart Practices report are: Martin Marietta Materials, Arrow Electronics, Wyeth Pharmaceuticals and Nationwide Services Co., where executives are using virtualization and asset management to show bottom-line results.

 

At Nationwide, with 1,500 virtual servers already at its main Columbus, Ohio, data center and 800 more planned, the company expects to save $16,000 per month on electricity costs alone this year. And at a time when some question whether green it initiatives can survive financial scrutiny, Scott Miggo, Vice President of Infrastructure Engineering, says: "This project is enabling us to reduce utility costs and become greener by reducing our carbon footprint."

 

Why is infrastructure agility so important to the business? For Jeff Keisling, Vice President, Corporate Information Services and CIO at Wyeth, it's a way for IT to stay ahead of business changes. When a global business evolves quickly, business leaders expect IT services to do the same, he says. Can your IT department fulfill that mission?

 

Let me know what innovative projects you'll be seeding in 2009...

 

Paula Klein
Editor
Smart Enterprise Exchange
editor@smartenterpriseexchange.com



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