InformationWeek

June 21, 1999

Part 3 of the E-Business discussion
Integrate The New With the Old

Legacy IT groups can help develop business solutions

Walter Curd,
IT director, Fujitsu Microelectrics

Glover Ferguson,
co-director, E-commerce program, Andersen Consulting

Chris Hanan,
VP of business development, E-Steel

Gene Moses, director of technology operations/strategic services, E-Steel

Gary King,
CIO, Barnesandnoble,com

Lisa Richard,
VP of strategic business planning, Toshiba America

Chris Sorensen,
director of business development, Art.com

Richard: One of the challenges many innovative E-commerce managers must face is dealing with a legacy IT organization, which may be concerned about the new technological direction you are developing. How can you gain support from an IT group that's protecting mainframe turf? It seems E-commerce managers tend to spring from business development or strategic groups, rather than from IT. Many companies are not fully successful at steering IT into this new technological area. Or, is it that E-commerce just lends itself to development that's closer to the users and customers?

Curd: At Fujitsu, it has been the IT group that has put in the infrastructure for E-commerce and been the drivers for moving forward in new directions. However, as the "legacy" IT person, the easiest way to get us to do something is for someone to attempt to partner with us. We have state-of-the-art systems and we know what the capabilities are. Approach us with a problem, not a solution. I'm not talking about a technical problem or a requirements definition--just spend 30 minutes to an hour discussing the business problem and objective, and then give us a week or so to come back with some alternatives, costs, and timelines. Once you have settled on a plan that works, you can execute it with a team approach.

The worst approach is to find a solution and say "here it is, now implement it." E-business without integration is not E-business. If the recommended approach does not produce results, then maybe you need a new IT approach.

King: IT as it exists today in most companies is held accountable for the quality and timeliness of operations and development. This leads to techniques and methodologies that ensure on-time, at-cost deliveries and to predictable and reliant operations.

Web development operates more like a publishing than an IT environment--which means a decision needs to be made at 5:45 p.m. about what will be on the 6 p.m. news. Only after the decision is made will the results be known. This need to act and act fast is the main difference between Web development and traditional IT. Development time is compressed and therefore the tools, technique, and culture are different from traditional IT.

Richard: You can not be a strategic E-commerce manager and expect to gain support from a legacy IT group unless you know what you are talking about and can make a case for technology in their language. So learn as much as you can about the technology you're proposing, and be prepared to defend it.

Another good approach is to explain the importance to the business. In other words, be prepared to say to your IT group, "Is there any other way you propose that is cheaper/faster/more service-oriented/more competitive than what I'm proposing?" If you've done your homework properly, the answer is an unequivocal "no."

Gain support from your senior management, and recruit assistance in addressing the issues with your IT organization. And I do not mean in any intimidating fashion, but in a positive, forward-thinking manner.

My tips for IT workers: Don't be afraid to learn as much as you can about the businesses you support. See it from the ultimate customers' point of view. And don't be afraid of the new stuff, even if it changes an IT model you've been used to for years. In fact, it can be dangerous to resist too much--change can be tough to stop once there is momentum, and it's always better to be in the front of the effort rather than lagging behind.

The key for both groups: Clearly identify the risks involved in any new strategy initiative, and make sure your senior management clearly understands the risk-vs.-benefit trade-off. Do what you can to mitigate the risk, and it can truly be a joy to dive off into the deep end.

Return to the first part of this discussion, "Altered Relationships"