Archive for the ‘General’ Category

Focus, focus, focus and then focus some more

Wednesday, March 30th, 2011

One of the first business books I ever read was “Focus” by Al Ries and it really made an impact on me. I recently came across a quote from Twitter founder Ev Williams that again brought up the concept of focusing:

“Focus on the smallest possible problem you could solve that would potentially be useful. Most companies start out trying to do too many things, which makes life difficult and turns you into a me-too. Focusing on a small niche has so many advantages: With much less work, you can be the best at what you do. Small things, like a microscopic world, almost always turn out to be bigger than you think when you zoom in. You can much more easily position and market yourself when more focused. And when it comes to partnering, or being acquired, there’s less chance for conflict. This is all so logical and, yet, there’s a resistance to focusing. I think it comes from a fear of being trivial. Just remember: If you get to be #1 in your category, but your category is too small, then you can broaden your scope—and you can do so with leverage.”

People tend to find focusing hard in a fast moving, multi device always on world (myself included). A lot of entrepreneurs seem to think that when they want to raise investment they need to have an all signing all dancing product. As you approach your go live date there is a tendency to just add another feature and another until you have a product that does not fit the needs of your market. It is not cool or sexy to focus but it is a powerful concept that you ignore at your peril.

I think the idea of focusing your product has the following benefits:

  • It makes development easier if you focus only key features
  • It helps with positioning and can help you stand out from the crowd
  • It makes targeting customers easier
  • The whole concept of MVP demands that you focus on the smallest number of features possible to get your product released

Day 5: TOGAF 9 Exam

Friday, March 25th, 2011

So today was TOGAF exam day. In just five days I have gone from not knowing much about TOGAF to being TOGAF 9 certified.

I had to book my test on the appalling Prometric website which was a test in itself, there is no map of the test centres, links don’t work and there are no confirmation emails.

The first exam is the foundation exam and you have 60 minutes to answer 40 multiple choice questions and you need to get 55% to pass. It is a closed book exam and really tests detailed knowledge of TOGAF. The second exam is the practitioner exam and here you have 90 minutes to do 8 scenario multiple choice questions, but this time you have access to a PDF version of the TOGAF manual. You get 5 points for the right answer, 3 for the second best, 1 for the third best and 0 points for the distracter answer. You need a 60% mark to pass.

The foundation exam I completed in about 30 minutes and the practitioner exam in about 60 minutes and I got 36/40 in the first exam and 36/40 in the second exam so an overall score of 90%

My top tips for passing the TOGAF exam (in order of importance):

  • Attend a classroom course (distance study will bore you to death)
  • Read the study guides (these were invaluable to me)
  • Check your knowledge with the “test yourself questions” at the end of each chapter in the study guide. It’s a great way to find gaps in your knowledge
  • Make sure you know the phases and key steps in each phase of the ADM like the back of your hand
  • Get a feel for the structure of the TOGAF manual so you can quickly find the sections you need
  • Do some timed practice tests
  • Read the scenario exam questions and try and write your own answers to get inside the head of the examiner

 

Day 4: TOGAF 9 Training

Thursday, March 24th, 2011

Phew the final day of training and my brain has been pushed to the limit this week, we have condensed a 1,000 page manual into a four day course.

It was quite a relaxed day today, closing off loose ends and finishing off the course.

We started the day looking at requirements management, which TOGAF says should be integrated throughout all the phases. If you have ever done any project management this is pretty straight forward. We looked at security which in TOGAF 9 is a bolt on as the materials were written in 2009. Things have moved on a lot and for most people security is integral and integrated into architecture.

Finally we look at SOA and how that relates to TOGAF. SOA maps  very well to TOGAF assuming that you add services as additional types of building blocks. This was a very interesting and frustrating part of the course as it was good to get an overview but it left me wanting to know a lot more.

After lunch we did some scenario based questions and a quick course summary and we were all finished by 2pm. I met some really cool people this week, and I learned a lot from them so a big virtual thanks to everyone on my course this week.

Tomorrow is the exam…

… my plan of attack is to speed read the study guide before bed tonight and then do lots of practice questions in the morning.

Day 3: TOGAF 9 Training

Wednesday, March 23rd, 2011

So enterprise architecture and TOGAF are started to make sense now and things are really falling into place. That being said I am very glad I opted for classroom based study and not distance learning as that would be have been almost impossible!

We finished off the phases of the ADM today:

Phase B: Business Architecture. This extends the high level architecture that was developed in the phase A. This phase is centred around business process modelling that forms the basis for the later phases. You need to model the baseline and target architectures and perform a gap analysis. Like any gated process the final step is to get formal stakeholder review.

Phase C: Information architecture and phase D: technology architecture are almost the same as phase B but instead of focusing on business architecture you focus on data, application and technology architecture.

Phase E: Opportunities and solutions is very much about finalising your architecture plans and passing them over to the project/ implementation team.

Phase F: Migration planning is all about creating the transition architectures, creating projects and work packages from the program of work.

Phase G: Governance and implementation is governing and watching over the project teams as they build from the plans you have developed.

Phase H: Architectural change management is monitoring changes in the business, technology and architecture and then implementing changes. ITIL is a good lead for this phase.

We also did some case studies and some exam technique which was very useful. We did some practice multiple choice questions and also some exercises for the scenario based questions. The exercise was to read a scenario question and then write four answers to get inside the mind of the examiner, like the exam we had to write the perfect TOGAF answer, something that was almost right, something that was off base and then one answer that was totally wrong.

I am off to do some more practice questions now ready for my exam on Friday!

Day 2: TOGAF 9 Training

Tuesday, March 22nd, 2011

I had recovered slightly from the bombardment from yesterday and some of the TOGAF concepts were starting to make sense and fall into place in my head.

Today was more engaging we covered a lot of ground again but it was more pragmatic then yesterday.

We started with architectural governance which is something that I am well versed in these days. TOGAF positions architectural governance itself sitting across corporate, technology and IT governance. It also gives some good checklists and ideas on how to run a governance function.

We then covered risk management and compliance which again seemed closely related to the risk management skills that I have learned in project management (Prince2 and APMP).

We then covered the first two stages of the architectural development model (ADM) which is the main core of TOGAF. The preliminary phase defines the enterprise, identifies key business drivers, key stakeholders, defines the business requirements for the architecture work and defines the architecture principles. As with any stage in the ADM there are inputs, action and then outputs. The main output of this stage is the request for architectural work.

We then moved onto phase A – the architectural vision. This sets the high level picture, validates the findings from the preliminary phase and formalises the requirements and project plan. The main outputs from this stage are:

  • Approved statement of work
  • Refined statements of business goals and drivers
  • Architectural principles
  • Tailored architectural framework (remember you need to tailor TOGAF)
  • Architectural vision

Finally at the end of the day just before my brain gave up we covered phase B – business architecture. The objective of this stage is to refine the architecture vision from phase A focusing on the business architecture. Using business process modelling tools you need to map the baseline business architecture. The outputs from this stage are:

  • Refined architecture vision
  • Draft architecture document
  • Draft architecture requirements
  • Business architecture components of an architecture roadmap
  • Target baseline architecture version 1

More to come tomorrow.

Day 1: TOGAF 9 Training

Monday, March 21st, 2011

As I have a week off from my MBA I thought that I would push my brain to it limits by taking some professional courses instead of relaxing.
Today was the first day of my TOGAF 9 certification training with Enterprise Architects.

To be honest it was quite a boring day full of introductions to concepts, definitions and architecture models. Again it was drilled into us that enterprise architecture is not an IT process rather a business process. Enterprise architecture is the process of optimising, mapping and integrating business processes and TOGAF gives you a framework and tools to do that.

One thing that I really liked was that TOGAF has a standardised vocabulary so that all EA know what each other are talking about. A lot of EA seems to have a lot in common with project management; stakeholder analysis, requirements, benefits realisation, governance frameworks etc. Some people argue that 60% of EA is portfolio management.

Hopefully I will have something more positive to report tomorrow!

The power of talking business not technology jargon

Thursday, March 17th, 2011

After a meeting this morning my client said “it’s so nice to come out of a technology meeting and actually understand what was said”. The comment struck we as quite odd, after all this was a meeting of senior stakeholders in a large technology project, but often these are not technology people.

I pride myself in not talking technology jargon (unless I am talking with a techie) as it seems rude and quite often people dread talking to techies. Technology is part of business so it is polite to talk in business terms otherwise you can isolate yourself from the business leaders in the company.

People will respect you a lot more if you speak business and do not try and show off with techno babble. Rant over!

The top five mistakes when hiring people

Tuesday, March 15th, 2011

A recent HR lecture outlined research showing the top five mistakes that employers make when hiring:

  1. Filling the position automatically
  2. Not using your network
  3. Rushed decisions
  4. Halo effect (being blinded by one aspect of an individual)
  5. No reference checks

What are the most important CIO competencies?

Friday, March 11th, 2011

Leadership

  • Driving the organisation forward in the use of IT
  • Creating a set of value expectations shared across all areas of the business in relation to it
  • Influencing key stakeholders
  • Growing and developing the leadership team

Visionary

  • Envisioning options and opportunities (both operational and strategic)
  • An advocate for new technology

Strategic thinker

  • Holistic view of business
  • Contributing the strategy discussions

Relationship builder

  • Expressing empathy, listening and being passionate

Diplomat

  • Collaborating with colleagues to achieve and “win-win”
  • Building the personal networks across the organisation
  • Creating the right impression

Deliverer

  • Achieving credibility with both business and technical people through successful delivery of projects and programs
  • Maintaining cost efficient IT operations and services
  • Managing risk
  • Meeting expectations

Reading the market

  • Using the marketplace appropriately for sourcing
  • Commercial acumen
  • Understanding risk
  • Networking externally with piers

Source: Unlocking the Performance of the CIO by Joe Peppard, California Management Review Summer 2010.

Analysing Zara’s business model

Thursday, March 3rd, 2011

Who is the customer?

Zara’s target market is young, price-conscious, and highly sensitive to the latest fashion trends. They have an advantage over traditional retailers because they do not define their target by segmenting ages and lifestyles giving them a much broader market.

They segment their product line by women’s (60%), men’s (25%) and the fast growing children’s (15%) department.
Zara started operations in Spain in 1975, and now operates in 74 countries worldwide.

What is the value proposition?

Fashionable, affordable clothes
Zara’s strategy is to offer cutting edge fashion at affordable prices by following fashion and identifying which styles are “hot”, and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for sale within 30 days (where as most retailers take 4-12 months). This is made possible by controlling almost the whole garment supply chain from design to retail.

Large choice of styles
Zara produces around 12,000 styles per year (compared to the retail average of 3,000), which means that fresh fashion trends reach the stores quickly. A typical Zara’s customer visits the store 17 times a year compared to the average of 3 times per year. This high number of styles also means that the commercial teams have more chances to find a winning style.

Scarcity
By reducing the manufactured quantity of each style, Zara creates artificial scarcity and lowers the risk of having stock it cannot sell.

Scarcity in fashion increases desirability, which means shoppers need to buy quickly as the item may not be available next week.
Lower quantities also mean there are not much to be disposed when the season ends; Zara only discounts 18% of its stock in sales, which is half the industry average.

Prime locations
Zara spends relatively little on advertising (0.3% of revenue) compared with traditional retailers (3-5%), instead they reach their target market by locating their stores in prime town-centre locations.

How do they deliver it?

Most retailers outsource production to low cost Asian countries. In contrast Zara is vertically integrated with the majority of production carried out in owned or closely controlled facilities in Spain. This gives a lot more flexibility and speed however it means higher costs.

Stores place orders twice per week and the supply of finished goods is matched to store demand. Production is then increased or decreased in the flexible production facilities. Demand based production means there is very little inventory in Zara’s supply chain, which results in much lower working capital requirements.

Deliveries typically arrive one to two days after ordering with most deliveries arriving by truck from the Spanish factories. Clothes are then put straight onto the sales floor and are available to purchase.

Business model risks

Just-in-time manufacturing relies heavily on production in Northern Spain. Any weather, labour or terrorist disruption to the area will have a serious impact to sales, as there are no alternative supply centres in Europe.

As production is carried out in Spain where average wages are higher than low cost Asian countries so factory wage costs will be higher than competitors, which will affect margins.

Zara is also vulnerable to financial vulnerabilities in the Euro as most of its cost-base is denominated in Euros.

Finally increased oil prices will affect profits as twice-weekly deliveries means higher transportation costs.