The Agile Enterprise: A Welcome Change

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AIIM INSIGHTSDelivering the priorities and opinions of AIIM’s 193,000 communityThe Agile Enterprise:A Welcome ChangeSponsored by

The Agile Enterprise:A Welcome ChangeAIIM INSIGHTSDelivering the priorities and opinions of AIIM’s 193,000 communityIntroductionToday, in the enterprise, nothing is ever at rest; everything is fast, and getting faster. From criticalbusiness processes, ECM and capture, to human resource management, marketing, or email—everything seems to be running at a breakneck pace. Work is always working, even if we aren’t.Attempts to keep up with the increasing speed of the enterprise by many organizations have,conversely, slowed things down. This is no truer than when looking at information management inisolation. Notably, these organizations apply the same strategies and deployment architectures togovern their data that would have been used a decade ago.How would you best describe your current main ECM/DM/RM system?1N/A, 12.2%In-house developedsolu on set, 8.9%Single-vendor fileshare-and-sync/cloudcollabora on, 3.3%General purposesingle-vendor ECMsuite, 17.8%Integrated set ofbest-of-breedcomponents, 11.1%General purposesingle-vendor suiteplus add-ons,25.6%Sector-specificsupplier, 2.2%General purposesuite specificallycustomized for ourneeds, 13.3%General purpose suitewith produc zed customiza onfor our industry sector, 5.6%For example, recent AIIM research finds that 72% of those polled are using single-vendor generalpurpose suites as their main ECM systems, compared with 13% using integrated best-of-breed. The mainproblem with the most popular configuration, centralized, single-vendor ECM, is that it is not conduciveto changing environments, especially the highly kinetic, dynamic enterprise we find ourselves in today.Even when multiple systems are in place, they remain isolated from each other and from the line-ofbusiness systems they are intended to support. AIIM 2016 www.aiim.org K2 2016 www.K2.comAIIM1100 Wayne Avenue, Suite 1100Silver Spring, MD 209101 301.587.8202www.aiim.orgK2 SoftwareSourceCode Technology Holdings, Inc.5150 Village Park Drive SE, Suite 200Bellevue, WA 98006, USA1-844-452-2777k2.com

The Agile Enterprise:A Welcome ChangeAIIM INSIGHTSDelivering the priorities and opinions of AIIM’s 193,000 communityIntegration and InteroperabilityThe enterprise needs to become more agile, and responsive to customer needs – bothinternal and external. ECM, BPM, and other business critical systems, must be nimbleenough to deal with problems that didn’t exist yesterday, and take advantage of theopportunities of tomorrow. This must be done without massive investment, such as acquiringan entirely new system to gain a minor functionality, or full scale modification of an existingsuite requiring lengthy downtime. The agile enterprise leverages its flexibility for efficiency,finesse and recycled value.With a more agile enterprisebusinesses can:% Leverage existing technologies to solvenew problems through reuse.% Outsource business processes to thecloud.% Improve collaboration among anunbound workforce.% Implement incremental change andoperational improvements across theenterprise.Increasing the agility of the enterprisecan occur in several ways. These include,cultivating and supporting a cultureenabling the mobile workforce, embracingand approving use of the Cloud, AIIM 2016 www.aiim.orgimplementing best of breed ECM tools, andexploring adaptable technologies, such asrapidly developed business app solutions.Business app solutions are the subjectat hand in the following article titled:“Goodbye Enterprise Software, Hello Appswith K2,” created by our underwriter K2. Inthis article, K2 presents, their viewpoint andapproach to business apps in the enterprise.Here K2 discusses the pain points facedby today’s organizations, and how in K2’sview, flexible business applications notonly address these problems, but build amore agile and productive enterprise in theprocess. K2 2016 www.K2.comAIIM1100 Wayne Avenue, Suite 1100Silver Spring, MD 209101 301.587.8202www.aiim.orgK2 SoftwareSourceCode Technology Holdings, Inc.5150 Village Park Drive SE, Suite 200Bellevue, WA 98006, USA1-844-452-2777k2.com

Goodbye Enterprise Software,Hello Apps with K2

Listen up, executive leaders, IT professionals,software developers and business managers.The era of enterprise software dominance ismercifully nearing its end. Business apps — fast,flexible, easy-to-build applications that streamlinework and pull your information and systemstogether — introduce an entirely new way to deliverviral efficiency.For better or for worse, enterprise software hasexpanded its footprint at a staggering clip overthe past few decades, reaching 308 billionin 2015. This number includes enterpriseapplication software totaling 137 billion (ERP,CRM, BI, etc.), as well as infrastructure software(database management systems, middlewareand custom application development) totaling 171 billion. These two markets behave almostsymbiotically — each fueling the other’s growth anddependency on one another.Packaged enterprise applications are inherentlyinflexible — they place a stranglehold on importantdata and leave business processes constricted. Inthe meantime, custom application development,while bridging process gaps within organizations,is expensive, inefficient and often hugely painful tomaintain — especially as technology and softwareenvironments change.All hope is not lost, however. There is a realitywhere innovation and efficiency, power withflexibility, and integration with simplification canco-exist. The future of enterprise software is madeup of fast, flexible business applications that deliverno-compromise solutions for a new world of work.To get there, we need a solid understanding of where we’ve come from,where we’ve been and where we’re going.Forecast: Enterprise Software Markets,Worldwide, 2013-2020, 1Q16 Update.Gartner. MARCH 17, 20161GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K22

A Look BackDuring the ‘90s, computing power expandedexponentially while hardware prices droppeddramatically. It was the perfect storm that enabledenterprise software to make great strides.Enterprise software’s roots are in manufacturingand aim to drive efficiency and cost savings insupply chain logistics. The realized benefits werenear immediate for organizations with low to nosoftware automation.While early enterprise software was designedwith the noble goal of “facilitating the flow ofinformation between all business functions insidethe boundaries of the organization and to managethe connections to outside stakeholders,”2 theoutcomes didn’t always deliver.Enterprise software had ballooned into ahodgepodge of acquired technologies, andintegration required extensive infrastructureservices and customization. Instead of creatingbridges, enterprise software systems had createdwalled gardens.³IT organizations were faced with a dilemma.Should they centralize and standardize theirenterprise software architecture at extensive costand time commitments? Or should they opt forbest-in-class line-of-business (LOB) systems andcustom software that require costly maintenanceand fragment data and systems?Bidgoli, Hossein, The Internet Encyclopedia,Volume 1, 2004John Wiley & Sons, Inc. p. 707.23Digital Business Design Is the New Integration.Forrester. NOVEMBER 8, 2012.GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K23

Cracks EmergeMost organizations opted for a center-heavy model, but inherent issueswith this topology proved to cause problems — massive, in some cases:IN 1999Hershey Foods’s problems with its 112 millioninvestment in SAP’s ERP, Siebel CRM andManugistics supply chain applications preventedit from delivering 100 million worth of Kisses forHalloween and caused the stock to dip 8 percent.IN 2008Select Comfort’s multi-module implementationof SAP’s ERP, CRM, supply chain and other appsresulted in eventual shareholder pressure to putthe 20 million project on hold.4These failings were the result of a grossunderestimation of the challenges andcomplexities in delivering organizationwide change management software.Unfortunately, the challenges in theseexamples were not unique. Enterprisesoftware adoption is often painful andslow, integration is expensive, and theend result is a rigidness that can stifleagility and innovation.7IN 2012the U.S. Air Force pulls the plug on it’s ERP projectcalled the Expeditionary Combat Support Systemafter it racked up 1 billion in expenses but failedto create “any significant military capability.”10 Famous ERP Disasters, Dustups andDisappointments. CIO. MARCH 24, 2009.4The Scariest Software Project HorrorStories of 2012. ComputerWorld.DECEMBER 10, 2012.5Avon’s Failed SAP Implementation a PerfectExample of the Enterprise IT Revolution. Forbes.DECEMBER 17, 2013.6IN 2013Avon’s new management order system disruptsregular operations and is so difficult to usethat Avon representatives left the company in“meaningful numbers.” Avon was forced to writedown between 100 million and 125 million.6The Evolution of Enterprise Software:An Overview. ZDNet. MAY 1, 2013.7GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K24

A Sea Change for ITOn June 29, 2007, Apple introduced its firstgeneration iPhone. The compact power of thisdevice, combined with a sleek user design andintuitive interface, helped spur rapid adoption.Less than one year later, Apple’s App Storewas unveiled.At the same time, the Web was erupting withpowerful SaaS-based applications that came withlow barriers to entry and highly useable interfaces.Suddenly, employees were sharing files on GoogleApps and Dropbox and storing content in Evernote.Technology consumers, rather than IT, werebringing technology into the workplace, and enduser expectations of technology had established anew baseline — one that was beyond what most ITorganizations were capable of delivering.Business units and business owners were callingthe shots, and IT was losing control. Gartnerpointed out in 2012 that just 12 years earlier,technology spending outside of IT was just 20percent of total technology spending; that numberwill become almost 90 percent by 2020.8 In2016, more than 100 billion dollars worth of IToutsourcing contracts will be renegotiated, saysISG partner Stanton Jones.9There was little doubt that traditionalIT would never be the same. The newrole of IT would be that of an enablerto and collaborator with business unitswho creates new value.Gartner Says Every Budget is Becoming an ITBudget. Gartner. OCTOBER 22, 2012.810 Outsourcing Trends to Watch in 2015. CIO.JANUARY 5, 2015.9GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K25

Enter the Rise of the Business AppBy 2015, the iPhone had gone to work.Seventy-five percent of enterprises had a BringYour Own Device (BYOD) policy and 70 percentof enterprises were using two or more appsbeyond email.10Business applications were filling the gaps whereenterprise software fell short. They moved manualprocesses to autopilot, eliminated barriers andgave access to the real-time information neededin order to make optimal business decisions.Plus, they enabled an enterprise to keep up withconstantly evolving customers, competitorsand technology.Business apps enabled a new reality wheretechnology solutions are imagined and built bythe people who need them, and then reimaginedand recreated as business needs change.THE ANATOMY OF BUSINESS APPLICATIONSForrester calls business applications“the technology heart of today’s enterprises”and the lynchpin of “digital business design.”11Modern business applications:Are inherently agileLeverage the power of existinginvestments without the pain of customsoftware developmentAllow for rapid and collaborative compositionof process-driven solutions that are highlycustomizableCan be applied to nearly any typeof business processMeet the varying needs of unique environmentsAre designed with the end user in mindGive real-time access to offsite andonsite users alikeAchieve seamless integration with existinglob applicationsRetain the security and integrity ofunderlying sources of information10Mobility Index Report. Q3 2015.TechTarget. NOVEMBER 2014.11Forrester defines Digital Business Designas “[a] business-centered approach to solutionarchitecture, implementation, and integrationthat brings business and technology designtogether by placing design priority on user roles,business transactions, processes, canonicalinformation, events, and other business aspectsthat embody a complete definition of a business.”GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K26

A Smarter AppBut it’s still not enough for data to be surfaced,accessible and coherent. In order to truly impactbusiness change and drive process improvement,data must also be made useful, and in order to dothat, it must be put to work.Business process management (BPM) softwarehas historically filled this role, but falls well short ofthe needs of today’s organizations. Forrester hasdefined an entirely new category of software called“smart process applications” (as an extension oftraditional BPM)12 to describe technology that willallow companies to act fast, alter course quickly,and empower their people to collaborate, makequick and informed decisions and make theadjustments necessary for business to succeed.Analysts at Research and Markets predict thismarket will reach 43.28 billion by 2020 and thatthe growth expected comes at the expense oftraditional custom software development.13That’s because software development, whiledelivering the most custom-fit solutions forenterprises, is slow and costly, and it comes witha high burden of ongoing support andmaintenance. When the software environment isupgraded or changed, the code must be alteredto fit the new customizations. Good developertalent is hard to find and retain, and there isoverhead associated with aligning businessrequirements to development timelines.Smart process application platforms circumventthese impedances by allowing apps to be builtquickly and without code. Business analysts andtraditional developers alike are able to buildpowerful applications and roll them out fast.Moreover, smart process applications areintrinsically designed with agility and flexibilityin mind. Because they are made up of pre-defineddata objects, form views and actions, subsequentapps can be assembled even quicker than thefirst — and they can be changed on the fly withoutimpacting application design or infrastructure.They also put people at the center byeliminating the need for end users to accessmultiple applications and interfaces to get workaccomplished. A single interface, that is purposedriven and customized to the specific task anduser at hand, enables more efficient transactionsand eliminates waste and bottlenecks withina given business process.12Smart Process Applications Fill a Big BusinessGap. Forrester. NOVEMBER 5, 2012.13Smart Process Application Market by Solution,by Service, by Deployment Type, by OrganizationSize, by Verticals, & by Region— Global Forecastto 2020. Research and Markets. APRIL 2015.GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K27

Hello, Business Apps with K2Business applications have the power to span anorganization, drive business outcomes and delivertrue competitive advantage. They can be rapidlybuilt, easily adapted and are powerful enough toscale across siloed business systems and data.With K2, more than 1.5 million users in over 84countries, including 30 of the Fortune 100, areturning complex work into powerful businessprocess applications.These organizations use K2 to rapidly build anddeploy low-code business applications that areagile, scalable and reusable. Modern processesthat quickly and easily connect people, data,decisions and system are the new reality.K2 empowers enterprisesto Build, Run and Future-Proofbusiness processes.Bidgoli, Hossein, The Internet Encyclopedia,Volume 1, 2004, John Wiley & Sons, Inc. p. 707.23Digital Business Design Is the New Integration.Forrester. NOVEMBER 8, 2012.GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K28

BuildBuilding a business process app can be comparedto building a car — first comes the frame, then theengine, connectors and, of course, the fuel to runit with. When building a robust business process,workflow is designed and structured, then aprocessing engine that can power that workflowmust be identified. This processing engine willfuel the business by connecting to the systems ofrecord, assembling the information and deliveringit to the right people.Just as cars are not built for traffic-less roads, abusiness process must span people and systemsif it is to be effective. According to Gartner, anenterprise organization has over 2,000 applicationsto support their business. Connecting these silosof systems and data is daunting and often results ingridlock. Recognizing this, K2 was founded on thebasis of automating business processes by:Reaching across siloed systems and peopleto create comprehensive workflows withlittle or no coding — from small, departmentalapproval workflows to complex, mission-criticalapplications that span an entire organization, onpremises or in the cloudAssembling apps with extensive out-of-the-boxevents and tasksSaving workflow steps and common functionsas a template for sharing and reusing acrossmany applications and departments.

RunA business process workflow may automate backend systems, but without incorporating the people,processes and information that drive it, a workflow ends up feeling like a car body frame that lacks its engine.Streamlined and simplified processes effortlessly connect the right parts that make a business process runlike a fine-tuned engine that starts whenever a driver needs to get to a destination quickly and reliably.Business processes than run quickly and reliably, and can be built quickly and reliably, are crucial forenterprises that need scalable solutions to fit continuously changing business needs. K2’s patentedSmartObjects and SmartForms allow an enterprise to connect once and fuel the whole business tomaximize ROI — from basic routing to complex solutions with policies, rules, escalations and exceptionhandling that enables processing millions of transactions across multiple systems and thousands of users.With K2’s SmartObjectsan organization can:Build an app once and reuse components inmultiple new applications, reducing cost and timeAccess disparate data (including in-house LOB)using a real-time, intuitive connectionCreate and publish business entities, processes,forms and report designsFully and flexibly use existing securitymechanisms without codingSeamlessly share a SmartObject entity withexisting web service apps and tools, providingfull extensibilityIntegrate with databases such as SQL andOracle; LOB systems such as SAP, Salesforce,Dynamics CRM; content repositories likeSharePoint, Box, DropBox; web serviceconnectors such as SOAP, REST, OData;third party connectors for DocuSign, Adlib,Accusoft; and newer social platforms usingRESTbroker — Facebook, Twitter, Yammerand Chatter.With K2’s SmartFormsan organization can:Create mobile-ready, responsive electronicforms that are built once and deployedeverywhere — from a mobile device to an internalemployee, to a third party applicationCreate views that are built once and re-usedacross multiple forms and processesIntegrate forms within third-party applications,such as Office 365, SharePoint, SAP, Salesforce,Box and any other system that supports HTML5With K2, users benefit from these robustcapabilities without having to learn to work witheach of the individual systems and their schemas.Across the enterprise, employees work where theyare most comfortable without jumping betweenapplications. K2 matches with how an organizationdoes their business.GOODBYE ENTERPRISESOFTWARE, HELLOAPPS WITH K210

Future-ProofAs noted previously, setbacks are often horrifyinglypublic and can reveal a company’s weaknesses.To protect the integrity of workflows and business

2 Bidgoli, Hossein, The Internet Encyclopedia, Volume 1, 2004 John Wiley & Sons, Inc. p. 707. 3 Digital Business Design Is the New Integration. Forrester. NOVEMBER 8, 2012. During the ‘90s, computing power expanded exponentially while hardware prices dropped dramatically. It was the perfect

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