Monday, March 4, 2013

Big Bang theory - not just for astronomors

Big Bang

Kodak is having a rough ride. Founded in 1888 by George Eastman it's "Kodak moment" came in 1976 with a 90% monopoly. By the 1990s a slow response to digital cameras saw it's finances deteriorate.

TomTom is down over 66% in the 3yr since the first smartphone with a built-in GPS.

Business wants rapid change, but IT introduces change .. slowly... with disruptive upgrades. And creates incremental "value" with integrations and reporting.

Cloud solutions are changing that - NOW. Changes are deployed weekly even daily. Platforms used by millions. Faster innovation at dramatically lower costs.

Alternatives

Carry on: Slow upgrades. Committee evaluation of new solutions.High cost operations.

Outsource: Move non-core solutions out. Short term financial gain - long term benefits elusive.

Centralize and Standardize: Evaluate long term TCO. Run out of the box. Value accrued by maximizing utilization with good enough fit methodology.

SaaS: Select a specialist, evaluate based on experience and scale. Value in faster innovation.

Implications

Doing nothing is not an option. Competitors are evaluating lower cost solutions and startups are testing  disruptive business models.

Review options and form realistic alternatives that avoid an unexpected Big Bang.

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