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The relentless pursuit of efficiency no longer
yields the profits it once did because it requires a level of business
predictability that no longer exists. In our high change, global economy
responsiveness now trumps efficiency. The agile enterprise is an organization
that uses responsiveness to make profits from a hundred small adjustments every
day and from occasional big wins as opportunities arise. Soon, those companies
that cannot make money from a hundred small adjustments and some occasional big
wins will hardly be profitable at all.
Learn the three key operating processes employed by the agile enterprise and see
how they work together to deliver the responsiveness that generates profits in a
high change economy. See strategies for the innovative and pragmatic use of
people, process and technology that enable the agile enterprise to emerge. Case
study examples from the author’s own experience are provided to illustrate a
proven and practical approach for organizations that wish to become agile and
the benefits they will reap from doing so.
What they are
saying about this book
This book
is a must read for anyone considering changing the project or development
paradigm in their company to be more responsive. Mike Hugos provides simple,
straight forward ideas, concepts, examples and exhibits that have you nodding
your head in agreement page after page. Each time you finish a section you are
asking yourself “why aren’t we doing more of this?” He not only gives you very
concise steps and actions that will help you attain both IT and business
agility, but makes it clear that you need to create a mindset and culture shift
that is absolutely attainable. His practical approach and methodologies to
attaining agility is actually agile in itself.
--Frank W. Enfanto, Vice President,
Blue Cross Blue Shield, Massachusetts
In today’s global marketplace, the emphasis for any organization must be on
responsiveness to changing market conditions. Ignore this fact and your
organization will be in a race to the bottom. With this book Michael succinctly
describes the challenges facing businesses today as they struggle to adapt to
the dynamic global economy. He provides a clear roadmap for becoming more
responsive, agile, and ultimately better positioned to deal with the one
business constant we all face, change.
--Ken Burbary, SVP, Campbell Ewald, Inc.
Preface
This book
is the product of years of reading, thinking, doing, talking with others, and
more doing. My aim is to create a concise and highly readable discourse on the
topic of business agility.
In a hyper-competitive global economy such as the one
that is now emerging, the relentless quest for efficiency will work for only the
two or three most efficient players in any industry. What then will all the
other companies in those industries do to survive and even thrive? The answer
for them is to be “efficient enough,” but then concentrate, instead of just on
efficiency, on responsiveness, for that’s where real competitive advantage lies
in the 21st century.
By being responsive to the needs and desires of
specific groups of customers, companies can wrap their products and services in
a blanket of value-added services to consistently earn an additional two to four
percent (and sometimes more) in gross margin than they would otherwise earn for
the product or service alone. This customer and market specialization is the
most promising and the most sustainable source of profits in our fluid,
real-time economy.
I have had the opportunity to put many of the ideas in
this book to actual use in business situations and found out what works and what
does not. The material presented here is a mix of both theory and practice based
on real world experience.
Michael Hugos
Chicago, Illinois USA
Table of Contents
Chapter
1. A Most Amazing Innovation 11
Definition of the Agile Enterprise
· It’s Already
Happening · Efficiency
Versus Responsiveness ·
The Great Game of Business ·
The Promise of Business Agility
Chapter
2. Theory of the Agile Enterprise 35
The Roots of the Idea
· Who’s Agile and Who’s Not
· The End of Control As
We Know It ·
Responsiveness Trumps Efficiency ·
Toward an Agile Operating Strategy ·
Use People and Computers Each for Their Strengths ·
Agile Systems for Agile Operations ·
A Key Competency for Business Executives
Chapter
3. Becoming Agile 67
Structure of the Agile Organization
· It’s Often
Counterintuitive at First ·
Networks Foster Agility ·
Visibility is Your Friend ·
Leadership for the Agile Organization ·
Strategically Focused, Tactically Agile
·
Serious Games
Chapter
4. Real World Examples 93
Agility and Innovation in a Three-Step Process
· Show
Them the Money – The Extra Few Percent ·
Agility in Action – A Story of Customer Service ·
The Robust 80% Solution ·
The 30-Day Blitz
Appendix A: Measure Your Agility 121
About the Author
Michael
Hugos is a principal at
the Center for Systems Innovation. He recently spent six years as Chief
Information Officer at Network Services Company, an $8 billion distribution
cooperative. He guided development and rollout of a suite of e-business and
supply chain systems that changed their business model from an old-line
distributor to a value-added provider of products and supply chain services.
In 2003 and 2005 he was awarded the CIO 100 Award for this work and in 2006
he was awarded the Premier 100 Award for career achievement. Prior to this
he was a practice director in e-business and supply chain management for
Covansys, a global IT services provider.
He is a regular columnist for Computerworld and CIO magazine. His other
books include: Building the Real-Time Enterprise: An Executive Briefing;
Essentials of Supply Chain Management, 2nd Ed.; and CIO Best Practices:
Enabling Strategic Value with Information Technology. He holds an MBA from
Northwestern University’s Kellogg School of Management.
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