Performance Management for the Digital Transformation
Author: Jean Vieille
TECHNICAL REPORT n°69427/01 - PDF File
Tuesday 20th December, 2016
4P-Factory E-Laboratory: the factory of the future
IT Transformation, Performance, Management, Investment, Entropy, Complexity, Viable System Model, Fractal Enterprise, Behaviour control, Conflict resolution
Increasing dynamics of industrial production (supply chain volatility, new products, re-engineering of facilities and organization) is both caused and addressed by information technologies. The IT world keeps inventing new technologies; analysts publish alarming maturity benchmarks; obsolescence is exacerbated by security concern, spare parts and skills shortage. Industrial IT needs to follow this ongoing transformation of enterprises and to take advantage of new IT technologies.
Digital transformation has become a well-established motto that is often presented as a comprehensive IT re-engineering project. In reality, CEOs and CIOs are less enthusiastic considering the risks, cost and feasibility of such a big-bang approach. They perceive myths and hypes behind so-called new technologies, but wish to leverage real opportunities to provide the best informational support to operations and development of their enterprise given their available means.
Shifting back the digital transformation project paradigm to an ongoing IT development process will make room for guiding efforts to support enterprise success and implement new technologies pragmatically and efficiently. In our thesis, performance management can help rationalizing this process if it links digital transformation process metrics to global enterprise achievement. Properly managed digital transformation performance shall help to prioritize requirements, set appropriate budgets based on acceptable latency of IT requirement fulfilment - digital/enterprise transformation ratio.
This article describes a method for realizing this linkage by leveraging relevant systems, information and management theories: Control Chain Management Reference Model, Viable System Model, Performance cybernetics, Overall Interactional Effectiveness encompassing 6 Sigma, Lean management and Theory of Constraints.
This article features a partial use case while this work is supported by limited implementations. It needs more experiments and developments to become a fully actionable.