Pipeline Publishing, Volume 5, Issue 6
This Month's Issue:
IMS: the Way to True Convergence?
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Governing Transformation

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large performance bonuses or other back-end completion payments. And you can have someone take personal responsibility for the project on both the service provider side and also on the SI side. But how will these individuals be able to make informed, strategic decisions?

What is the successful template for guiding combined NGN, IMS and NGOSS projects? It is clear this is a huge undertaking with large commitments of capital and significant risk. Such business transformation projects should not be entered into lightly or allowed to proceed without guidance and accountability.

Strategic and Operational decisions should not be made by debate or, worse, by argument.


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Strategic and Operational decisions should not be made by debate or, worse, by argument. You do not make strategic decisions by engaging in meeting discussions where opinions are expressed and weighed by personal judgment. While this approach may provide valuable insight, it often provides no clear evaluation of the best choice of action. Those responsible for the project must rely on consensus or their own experience for making judgments calls.


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Strategic Decisions

"Business transformation is all about gaining business process effectiveness to attain strategic goals and the way forward is by reviewing and optimizing the agility and the efficiency of the underlying enterprise architecture and production models. The main challenge for each company remains in finding the best path to follow for their own business transformation. The core issue of this challenge will be to bridge the gap between strategic and operational management of the transformation as most "pioneers" in this domain can confirm," says Serge Garcia of Edelweiss Service Consulting.

How do you determine if you are on the path desired and the way forward? Strategic decisions are reached after careful analysis of the facts at hand, the options available, the probable outcomes from possible actions, and the probability of reaching desired conclusions. Many formal methods exist for assessing strategic implications and reaching strategic decisions. What is important is that one of these formal methods is used. Discussion occurs when gathering facts and requirements and later to understand the results of the strategic assessment. When a proper strategic analysis is performed, the result is analytical. At worst, decisions are informed. Usually, the best decision, given the information at hand, is apparent to all.


Scientific studies show that emotion can affect risk-taking. For example, fearful people tend to be less willing to take risks, while angry people seem more willing to undertake activities with significant risk. Both gender and culture also influence decisions. When deciding to attempt a risky project, women are less influenced by fear or anger and more influenced by familiarity and taste. Cultures (either national or corporate) that are historically stable are more cautious in undertaking risky projects. One must be concerned about decisions in meetings that are made based on opinions or "measured assessment" which might be just gut personal experience. Business risk can be computed, and aids for analytical decision exist.

For example, one strategic decision method is Decision Analysis. Decision Analysis allows the creation of decision outcome trees with probabilities expressed at each branch. Usually, decision analysis is used to compute the relative likelihood and value of reaching envisioned project outcomes. Germane to us now, what Decision Analysis also shows is the value of concrete information at any decision point. The value of ‘tipping' information is the alternative cost of proceeding down the wrong choice to an undesired outcome. Frequently, decision makers undervalue accurate and meaningful information. If a fact, status, or alternative choice becomes known, could this alter a decision? Accurate

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