Consumerization 2.0: IT's Only Road To Relevance - InformationWeek

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Consumerization 2.0: IT's Only Road To Relevance

Consumerization 1.0 was "we don't need IT." Today, we need IT to bridge the gap between consumer and business tech.

It's also because of the practical apps on the device. A cloud-based browser app shows the technician's appointments. A routing app called CoPilot provides audio directions integrated with those appointments -- the Note's screen is blacked out while the vehicle's moving to keep the driver focused on the road. There's even an augmented reality app that links to the Dish satellite in orbit and uses the Note's camera to show a virtual image of the dish on a roof -- handy for explaining to a new customer why a dish can't go in a certain place on the roof, say if the line of sight to the satellite is blocked by a tree.

The apps are all HTML5 browser-based, and critical ones such as the appointment calendar work offline, since wireless connectivity can be spotty. The browser approach also lets Dish contractors with their own devices access apps such as job assignments. Even the gadget's case is a business/consumer hybrid -- a standard Otter Box design customized with the Dish brand's distinctive red color.

Dish's Galaxy Notes sport consumery hardware and useful apps.
Dish's Galaxy Notes sport consumery hardware and useful apps.

Not a consumer app free-for-all
Smart IT leaders now understand that consumer tech will drive the pace of change and that business IT must be humble enough to learn from what employees use. "Isn't it incredible that it took Dropbox to get all of us thinking about that?" says Avnet CIO Steve Phillips, referring to simple online file sharing. "There's a real need for that file-sharing capability."

But being open-minded doesn't mean it's a consumer app free-for-all. Avnet, a $26 billion-a-year electronics distributor, blocks employee access to the consumer version of Dropbox, for example. But having seen the employee demand for simple file sharing, Avnet now gives employees access to the enterprise-friendly (i.e., auditable) Box service. (Dropbox has its own enterprise version, with administrative controls and audit features.)

Think of Box, Dropbox, and other consumer-to-business application suppliers as filling the "app gap," says Wells Fargo software analyst Jason Maynard.

In that gap is all the unstructured, everyday work employees do that falls outside of conventional ERP, CRM, HR, and supply chain management applications. The people who do those jobs are the ones who really understand how the work gets done, and it's up to IT to give them room to experiment with new tools to help them do that work. Do they need Skype to talk with certain customers? A screen-sharing app like Screenhero? A tablet or smartphone?

Avnet also was an early adopter of bring your own device five years ago, giving employees a stipend to buy their own phone and service contracts. The biggest benefit has been financial: a 30 percent drop in cellphone costs. The savings came from setting "hard but reasonable" limits on data plans, Phillips says, and ending the orphan phones that stay on the bill after employees leave the company or stop using them. The BYOD program also cut IT support and repair costs, since employees own the phones but also are responsible for them if they break.

An intangible benefit of the program is that Avnet now has a more engaged and mobile workforce, while employees like having a choice of smartphones. Back in 2008, about 700 Avnet employees had company-issued smartphones, all of them BlackBerrys used mostly for email. Today, Avnet has about 7,000 company-managed smartphones, of which only 1,000 are BlackBerrys, and those devices access not only email, but also Concur expense reports, Workday HR apps, and some custom-built apps for order management and shipping as well as price and availability lookup. Avnet also provides some custom smartphone apps for its sales teams.

Avnet will ban consumer apps for two reasons: security (to keep confidential data from leaving the company) and bandwidth (which is why it blocks most streaming video from its network). But again, Avnet IT must keep an open mind to new application demands. The latest is Skype, for which Avnet opened up access because employees made a strong business case for it -- certain clients want to talk via Skype. "This consumerization of IT and the grassroots feel of 'here's a useful application' -- that's something to be encouraged, not repressed," Phillips says.

Speed means sharing control
Celestica's employees in 18 locations worldwide, mostly in Asia, use the enterprise version of Google Apps for email and collaboration. How can a factory team in Malaysia share its success with new soldering techniques with a team in Spain, given the language barriers? Google Translate, a consumer tool built into Google Apps. "Soon people who had never talked with each other were solving problems," CIO Gendron says.

Celestica's IT teams have developed their own apps on the Google platform, like one for conference room registration and another that automated several steps for six top executives to sign off on quarterly results. The alternative was to buy those apps off the shelf, but every time you do that "you hear cha-ching, cha-ching," Gendron says.

Celestica's next step is to let tech-savvy employees build some of their own applications using a development framework called OrangeScape that sits on top of Google Apps, in a process closer to configuration than coding. For governance, a committee meets as needed to monitor apps and their use, but the bias is toward change. "When I think of Google, I think of speed," Gendron says.

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User Rank: Strategist
11/19/2013 | 11:30:50 PM
Enterprise grade content management - Need of the hour!
Thanks for the great insight to the next phase of consumerization Chris. Completely agree that IT should be in the front driver seat to provide guidance and the right tools/gear to increase business productivity, which increases their relevance at the same time. When IT bans consumer grade services such as dropbox, they should offer an enterprise grade solution that is easier to use and at the sometime offers the required security controls. As Chris further pointed out, data content management and content collaboration are the next areas where IT can influence. Accellion offers enterprise grade content management and collaboration solutions. Check out for more info.
User Rank: Apprentice
11/19/2013 | 1:19:13 PM
One More "Defining Characteristic of Consumerization 2.0"
Hey Chris, great insight. I'd add a fifth defining characteristic of consumerization 2.0 and that's the greater role that DevOps will play in IT moving forward. I can see that as creating even more relevance for IT. You mention "speedy delivery" and "integration with enterprise apps and data," and with that combination and the tighter integration the LOBs will have with IT to develop the mobile apps that support their business processes, a more sophisticated DevOps approach will not only improve the quality of IT delivery for the business, but also boost the relevance of IT in a Consumerization 2.0 world.
User Rank: Author
11/18/2013 | 4:12:17 PM
Celestica's Approach
I love Celestica's approach:give tech-savvy employees a simple app dev framework and let them experiment on their own. But don't give them the keys to the kingdom--thus this planned governance committee to keep track of those apps. It'll be interesting to see how that goverance committee manages things. It sounds like a good idea, but will it quash the grassroots energy at the company around app development?
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