Over several decades computerised systems have driven operational productivity improvement. Computers can do certain tasks much faster than humans. They can transmit information at the speed of light, they are maths geniuses and, in general, they don’t make mistakes.

As a result, the days before mobile phones, email, electronic banking and social media were, in many ways, the dark ages.

The speed of innovation is breathtaking but does it translate to our daily experience?

Speed Differentials

Technology is innovating at a rapid rate. The latest breakthrough enables computers to generate content, allowing them to conduct simple verbal conversations with humans.

And yet the systems that are used to run many operations were designed years ago. Like most products, they were designed as a whole entity, with options providing pre-defined choices to extend market and specific customer preferences. The product’s development embedded the available technology and conventions of the time.

Software is expensive to develop so commercial viability was only possible when the same product was bought by large numbers of customers and those customers committed to use it over long periods.This suited customers who were happy to write down their investments over long periods of time to minimise disruption and improve their reported numbers.

So there is a differential between the speed of innovation and the speed of change envisaged for operational systems.

Productivity Lock

The differential in the speed of innovations and the planned life cycle of operational systems has important consequences.

Organisations invested heavily in operational systems which, naturally became embedded at both technical and human levels. Often, where operational needs were not quite matched, add-on or bespoke software bridged the gap.

These met a need but sat outside the core of the operational system, requiring additional support arrangements. They changed how humans used the system but, once onboarded, processes and procedures were adjusted and they became part of ’how we do what we do’.

Most organisations’ operations have a status quo based on their own ‘how we do what we do’. It applies to systems (which embedded the technology and conventions available when they were designed) and humans (lets face it, few like change). This becomes a status quo which ‘keeps the lights on’ but is also a barrier to innovation.

We think of this status quo as a Productivity Lock. Its why productivity stalls

Rock and a Hard Place

The consequences of Productivity Lock put organisations in a hard place.

While matching the speed of product innovation can be seen as ‘nice to have’, following the innovations in:

• the threats facing organisations (cyber crime)
• the innovations in customer service (remote self-service)
• the regulatory framework

Are ‘must do’ items for ambitious organisations. This is their hard place.

They have invested in systems that have become deeply embedded and are very difficult to change. They cannot do nothing. Replacing their legacy systems is expensive, high risk and requires a length transition period.

Ouch!!