Lean IT: Optimising the use of IT
The fast-moving new economy requires agile and adaptable enterprises: organisations
that sense what is happening in the market, use knowledge assets to learn from that and innovate
new products, services, channels and processes, then mutate rapidly to bring innovation to
market. Companies have become progressively more reliant on information technology to achieve
this. This has developed to such an extent that IT processes and infrastructure now play a
key part in delivering competitive advantage.
Improving the overall efficiency and effectiveness of IT to better meet business
needs can bring significant bottom-line benefits. However, most organisations have failed to
take stock of the existing environment and apply innovative ideas to improve the role of
IT in the enterprise. Several issues prevail:
- Inability to support new/changed products or services quickly enough;
- The resilience and robustness of IT systems;
- Failure to recognise and grasp opportunities or mitigate competitive threats quickly and
effectively enough;
- Shortage of appropriate IT skills or resources;
- Escalation in the overall cost of the IT function;
- Development backlog and difficulties in meeting project deadlines;
- Uncertainty over why/how to automate business processes;
- Failure to identify clearly and agree the critical IT priorities for attention.
The Lean IT concept
One of the most revolutionary developments for business over the last few decades
has been the adoption of "lean" concepts including just-in-time, error-free work and
continuous-flow processing.
Knowco consultants have successfully applied lean concepts to the IT function,
enabling organisations to move from basic technical excellence to the ultimate goal of the
lean IT organisation. The objective is to cut waste, eliminate backlogs, reduce errors and
increase the speed at which IT delivers value to the business and ultimately to the customers
and shareholders. Lean IT looks at the entire value chain from computer technicians
to business users.
Our approach is founded on a four-stage model which considers technology,
service, process and knowledge. As we move up the stages we see a transition from
technology and cost issues to business and value.
Benefits of our approach
The benefits of Lean IT include the following:
- Cost reduction — By identifying unnecessary processes and sub-processes we can redesign
tasks so that they become more efficient and consequently absorb less resource;
- Increased value — As well as costs we also identify the value streams to which
IT contributes This allows IT managers to pro-actively participate in value
enhancement initiatives;
- Best practice — Our approach is based on industry standards combined with our
own experience in this area;
- Reduced waiting — A key principle behind the transformation to Lean IT is the
elimination of hold-ups, bottlenecks and systematic delay.&NBSP We design processes aimed to
reduce these as much as possible, taking into consideration the culture and people profiles
to see what organisational change is required;
- Error reduction — One of the important results of streamlining processes and
reducing waiting is the subsequent reduction in errors;
- Job enrichment — Although some staff will be reluctant to change, the overall
improvement programme creates a better working environment This is due
partly to the increased value with which IT is regarded and also the positive
reinforcement of reduced waiting times and error-free work;
- Planned and effective staff rationalisation — There is a danger that changes
may result in loss of key staff and low morale and any cuts may soon be
reversed. Our approach incorporates ways of overcoming these potential problems.
How Knowco can help
Our services for delivering Lean IT are based on an established
and proven method that divides into three key strands:
- Value Analysis — Helping clients assess the investment potential of an improvement programme in
order to gain senior management commitment. It combines best practice in building
business cases with a detailed project management approach and knowledge management techniques;
- Lean IT Process Model — The four-stage model is backed up with strategies,
techniques and templates that allow us to rapidly implement the improvement programme. Our
consultants will help identify which processes are to be replaced, improved, kept or
outsourced. Once a set of proposed changes has been established these are validated
through workshops and piloting sessions to iron out any issues;
- Knowledge Management — Staff knowledge is an asset, which has to be managed in an effective
way. Our knowledge management approach helps clients protect this investment.
Knowco Lean IT White Paper
A white paper on Lean IT is now available
from Knowco. Please email us at
knowledge@knowco.co.uk
for a copy of this white paper.
For more details of Knowco Lean IT consulting services please email us at
knowledge@knowco.co.uk
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