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The unheralded innovations CIOs may overlook

The unheralded innovations CIOs may overlook

By:  Vinnie Mirchandani  On: 30 Aug 2010 For: CIO Canada Creator

In an exclusive excerpt from his new book, a former Gartner analyst shows how a new kind of polymath is creating a renaissance in the possibilities around IT -- for those companies smart enough to recognize them

The CIO is presenting about the exciting opportunity for his public utility with the coming trend of "smart grids " and other industry innovations.

Unfortunately, his back - office system was designed for manual meter reading every 30 to 60 days. In the new world of smart meters, communications with customers would become much more real time. The meters would facilitate consumers selling surplus energy from their solar panels and wind turbines back to the grid, as is already common in Germany.

That is a good reason to upgrade your customer systems. The CIO has done the numbers, and the cost of custom modifications to his old "Shouse " would have been expensive on its own. The packaged solution from SAP is a less - risky decision.

He then presents a slide that draws attention. It shows Accenture would need 40,000 person - days to implement the system. Some back - of – napkin numbers show the project would cost $150 million to $200 million over the next few years, considering what the company would pay SAP, Accenture, its infrastructure provider, and its internal staff.

The expensive back - office investment would likely smother the benefits offered by the smart grid. Over the last couple of decades, companies around the world have spent more than $2 trillion on similarly well – intentioned SAP projects that would not meet most definitions of " innovation. "

Can you imagine what China could deliver for $2 trillion as it redefines time and economics in its rush to develop bullet trains and wind farms while we have been investing it in back - office systems?

We are not just picking on SAP and Accenture — both are also innovating.

Or consider the opportunistic behaviour around sustainability. Terrachoice has been surveying brands for several years and concluded, in its 2009 report, that 98 percent of " green " products are committing at least one of what it calls its " Seven Sins of Greenwashing. " Those sins range from false claims to irrelevant statements on product labels. It defines "greenwashing" as "the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service."

Let us note that there is innovation and then there is innovation by association — "spray-painted" innovation. Fortunately, as we describe next, there is also plenty of unheralded innovation going on.

Less Visible Signs of
Our New Renaissance

Most people have heard of the iPhone. Many of us have seen a DIAD but probably cannot recall what it is. It is the device that helps UPS drivers in their brown trucks deliver 22 million packages a day during the peak holiday season. It was introduced back in 1990, way before the iPhone. Now in its fourth generation, it does many of the things an iPhone does. And its battery lasts much longer than the iPhone’s.


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vinnie mirchandani Vinnie Mirchandani is founder of Deal Architect, a former technology industry analyst with Gartner and author of The New Polymath: Profiles In Compound-Technology Innovations, available now.

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Comments (1)

Ryan
by Ryan 8/30/2010 1:11:31 PM

Shift happens. When a market shifts, how quickly does it take for the early adoption rate to spill over into mainstream? Sometimes not as long as you think.

http://bit.ly/dcA0pN

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