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2 Posts tagged with the kaiser 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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I love the Dilbert comic strips because they point out the humorous side of our daily business lives. They can be biting at times, and certainly they exaggerate enormously, but like a lot of humor they are funny because they often ring true.

 

IT has received its fair share of attention from Scott Adams, the creator of the strip, over the years and that seems to be stepping up recently as the disruption accelerates. In just the past week or two, for example, Dilbert’s world has poked fun at IT monitoring employee Web sites, the proliferation of passwords, and inattentive tech support. It’s good to laugh at these caricatures sometimes and see the light side of the bureaucracies we inadvertently create. At the same time, we should be careful that life doesn’t imitate art in this case — and that IT is solving business problems, not creating new ones.

 

Oddly, perhaps, I thought of Dilbert when I read a recent white paper published by Accenture’s prestigious Institute for High Performance, which raised a very serious question: Can Enterprise IT Survive the Meteor of Consumer Technology?

 

It’s an excellent position paper that lays forth several premises about the consumerization of IT — something we have all heard about and are experiencing daily. Fundamentally, Accenture says: “As consumer technologies become ever more powerful and useful, IT leaders face difficult questions about how to adapt. While definitive answers are elusive for now, they must be grappled with today if enterprise IT is not to be pushed completely to the sidelines in the next few years.”

 

I would include cloud computing along with the consumer technologies that line of businesses are adopting on their own, often circumventing traditional IT purchasing processes.

 

Accenture is not alone in considering these issues, of course. In a report late last year, McKinsey also concluded that “fully networked enterprises are not only more likely to be market leaders or to be gaining market share, but [they] also use management practices that lead to margins higher than those of companies using the Web in more limited ways.” Smart Enterprise Exchange has featured companies that are implementing these practices, as well, such as Procter & Gamble’s e-commerce efforts, and Schumacher Group’s dive into mobile technologies this year.

 

Yet Accenture’s paper seems most significant to me because it focuses on the CIO and the IT department transformation that’s taking place. Its analysts pose very provocative and direct questions when they ask: “Is it inevitable that IT will become irrelevant over time? For that matter, is it possible that the CIO has already lost the control he was fighting so hard to keep?”

 

Smart Enterprise magazine and the Smart Enterprise Exchange community will be taking an in-depth look at these critical IT issues in the coming months. Specifically, how are collaborative and consumer platforms disrupting business and repositioning IT in the enterprise, and how can CIOs get ahead of the curve?

 

We will speak with CIOs at businesses such as Kaiser Permanente, CorePLUS and JetBlue Airways who are not only embracing consumer technologies in their global enterprises, but are finding ways to use them for competitive advantage, revenue-generation and customer satisfaction — exactly the IT topics that Dilbert and others have criticized in the past. Perhaps it is by seizing the opportunities new platforms represent that IT will not only maintain its relevance, but grow even more important to the enterprise.

 

In addition, we’ll highlight the results of two in-depth, global research studies that CA Technologies conducted with IDC. The first, with more than 1,000 consumer-tech user responses describes “the booming adoption of mobile and online/cloud technologies for personal and business use and consumers’ expectations of much higher usage going forward.” The second, surveyed more than 800 enterprise IT executives to get their perspective and strategies in light of the rapid pace of consumer tech usage. The key recommendations? Offer support and focus on automation, management and security. [See related article here.]

 

We also invite you to help lead our online discussion and offer your experiences, opinions and solutions foryour peers.You can begin by taking this poll and also by leaving a comment on this blog. You can also create a discussion thread on the site’s Web 2.0 in the Enterprise Group or on our Linked In group.

 

 

Paula  Klein

Editor and Community Manager

Smart Enterprise Exchange



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