Chair
Instruction and Curricular Development
Information Technology Programs
School of Continuing Education
Columbia University

Dr. Arthur M. Langer

Good afternoon! Let me first say what an honor it is tocompanies that I've worked with, most of them global enterpris-

have an opportunity to come here today, travel such a long way,es, and show you how technology requires behavioral changes

and to be able to talk about my work, work that is very impor-in the workplace. So let's first start this discussion with what istant to me, and whenever there is an opportunity to talk about

happening with technology in the world. And let me use athat research with other people it is very enjoyable for me. I

quote from my new book, Informational Technology and Or-

have also been able to follow for some time the work of this col-ganizational Learning, "Information Technology represents alege and it's been very exciting for me to see the major en-

broadening dimension of business life that affects everything

hances, particularly the creation of the new graduate school,

we do inside an organization." Let me expand this a bit further.

and I am just delighted to be here today.

When I say "affects everything we do in an organization", itmeans that technology changes behavior and aspects of what

Today's topic is Information Technology and Organiza-

goes on inside an organization. The last time we saw such antional Learning. Some of you might ask, "What does organiza-

impact we called it the Industrial Revolution. Indeed the Indus-

tional learning have to do with Information Technology, andtrial Revolution changed every aspect of life, there was no busi-

why is that an important topic?" It is my position that organiza-

ness, no home, no aspect of education that didn't get affected bytional learning is perhaps the single most important issue that

the Industrial Revolution, and so, today, I will demonstrate totechnology can affect―certainly as technology is used more, it

you that the same is true for technology, which will indeed leadbecomes part of everything that goes on, not only in life, but in

us to the conclusion that technology is another revolution. In or-

all aspects of business as well.

der to discuss this further, it is necessary to look at technology
not as something you just create, a new program, a new capabili-

I'm going to ask all of you to step back a bit from yourty, but let's look at it more as a variable, in other words, you're

technical education, and to consider how the technology you

introducing technology into the world of an organization; what

learned in class is ultimately used in an organization. For I

does it do? I call this variable

think I'll be able to show you today that it is understanding how

and this Dynamism is what's making it so challenging for or-

technology is actually going to be used, how it's going toganizations to assimilate into their everyday operations.

Technological Dynamism,

change the world, is the single most important aspect of what
you do when you provide this technology to an organization.

Let's look at Information Technology as this variable, andlet me now ask you to remember three things that are fundamen-

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The theory that I will talk to you about is called Respon-tal components of Technological Dynamism. I will present thatsive Organizational Dynamism, which I will define shortly. I

these three components are consistently operating within organi-

will share with you my practical experiences with the manyzations, businesses, educational institutions and every transac-

tion that occurs over the Internet. Let's define them:First: we expect technology to accelerate events in ourlives. Let me give you an example: in the educational communi-

tions and events to really provide value. I'll show you today that
if you're not accelerating events, I'm not sure anybody will beinterested in the technology that you are developing.

ty, ten years ago, if a student wanted to talk to me, they would
typically make an appointment, and perhaps two or three days

Responsive Organizational Dynamism, which I refer to aslater they would get to me, and we would have a discussion.

ROD, is a set of integrative practices and responses to theseThree weeks ago I gave a final examination for one of my cours-

very challenges. An organization must be responsive to Techno-

es at Columbia University, and at a quarter of eleven in the eve-

logical Dynamism, and if they are not responsive, they will bening I got eight e-mails requesting responses to questions aboutable to compete in a global economy. Another way of saying

what would be on the exam. So as a faculty member at the Uni-

this is, forget about five year plans. Move quickly, and every

versity, my life has changed as a result of a technological inno-

day you walk into the office, you may have to respond to Tech-vation called

I know I have to respond faster, be

nological Dynamism. Do not be fooled into thinking that Chiefavailable sooner, in the hopes that my institution or organiza-

Executive Officers, Chief Operating Officers, or Chief Finan-tion is capable of handling this acceleration of events. What hap-cial Officers understand this. They don't. The fact that they

pens if I don't respond? If I don't respond to my students, they

don't, is why this is so exciting, because of the opportunity you

will not think of me as a very good faculty member. Therefore,

have to become leaders in technology innovation for years to

institutions that cannot respond quickly to their students―may

come.

e-mail.

lose them.
Second: Dynamic Interactions from technological innova-

So let me give you a template. Let me give you sometions foster the need to empower individuals and groups toguidelines as to how you might consider doing this. There are

make decisions at all times. Now what does that mean? This dy-

essentially two components of Responsive Organizational Dy-

namic interaction means that I really don't know when and how

namism: Strategic Integration, and Cultural Assimilation. Let's

technology innovations occur, they just happen! And they hap-

first define Strategic Integration. It's the process that addresses

pen at different intervals and we need to be prepared as either

the strategic impact of a technology on the organization. Let me

an individual or a department or an organization to respondbe very clear here, the first question we should ask ourselves

quickly to them. So it's not only that technology is accelerating

about a new technology is: Why do we need it? It must havelife, it's very dynamic in the way it behaves.

strategic value to the business. Let me be even more specific.

The third variable, and perhaps one that may disturb many

What competitive advantage does this technology provide for

IT professionals, is that technology is rather unpredictable inthe business? Does it establish new markets? Does it support

terms of the way it eventually gets implemented in organiza-

better service? And if you're thinking of having a series of meet-tions. If you are uncomfortable with the word unpredictableings which may take a few weeks in order to make that deci-

as technology people, then perhaps we can settle on the wordsion, forget it! The organization may likely need to make a deci-"uncertain." For example, how many of you really think thatsion much sooner than that! Why?―because in today's world a

Steve Jobs from Apple thought that the Macintosh was de-delay of a few days could mean missing a crucial market oppor-

signed to be used as a desktop publishing system? He likely hadtunity. How's that for acceleration of events? Now let's talklittle or no notion of that at all. It just turned out that way. So

about Cultural Assimilation, an equal partner of this dilemma.

what I ask you to think about with point number three, un-

Cultural Assimilation is the ability of the organization to inter-predictable or uncertain outcomes, is to think of one word: risk.

nally use a new technology. This includes the role of the IT department, how the technology will be assimilated within the or-

So here's the world that you're confronting. I'm asking you

ganization as a whole. This means that it's one thing to have a

to live every day in an organization, dealing with an accelera-technology that you know has value, it is another to be able totion of events that requires change in a dynamic way. And theimplement it in the existing organization. One without the otherreality is that you're not really sure what's going to happen, anddoesn't work.

you have to take a risk, every time you create a new piece ofsoftware or every time you come out with a new type of hardware.

Let me give you some examples. If you implement a newtechnology, it may create new roles and responsibilities for peo-

Remember though, that if you are developing new prod-

ple in the organization. It may eliminate an existing job! And it

ucts for your organization that they must be accelerating transac-

may indeed create new jobs! And when do I need you to assimi25

late this cultural change? Now! What organizations and corpora-

Let me define that as a person who manages a day-to-day opera-

tions are challenged with today is that both of these variables

tion. If you don't have their support, if they're not involved in amust work together, and if they don't, it doesn't work. In otherproduct like SAP, you will fail.

words, you may have great strategy, but you can't implement it;

Business events accelerate transformation. Now, what door you might be able to implement a technology, but yourI mean by this? It means if I present a learning opportunity thatstrategy makes no sense.

will have a clearly defined beginning and end, then I will beable to show results from an effort. There is nothing more effec-

I did a three-year study where I met with over 40 Chieftive to create change in behavior, than to ask an employee to try

Executives from different types of corporations. I spent a mini-

something different and guarantee an experience within a specif-

mum of one hour with each of them, and here's what my result

ic period. People who work in a warehouse are typically fo-shows. One: technology is not consistently applied in firms andcused on their job, which is to process and ship things, as op-

not regularly linked to strategic business events. Two: execu-

posed to developing new vision; that is, they only have time fortives are unclear on how to manage technology. Three: operat-

results. If you show someone in this situation a new technolo-

ing departments and individuals are disjoint on how to use tech-gy, and ask them to experiment for a specific time period―andnology. And finally, technology lacks best practices.

guarantee they will be able to see a result―good or bad, you
stand a better chance of changing behavior and organizationalLet's talk a little bit more about best practices. What do I
mean by that? Well, let me give you an example. If you wanted

development. It's nothing more than trial and error and results,
but you must be able to do this very quickly.

to be a doctor, or you wanted to be an attorney, or you wanted
to be an accountant, it would require a process where you need

I will now introduce the concept of reflection as an effec-

to obtain a license to practice. In technology, no such licensing,tive method to promote change and integration of technology.

or as I would call it, governance, even exists. Think about it.

What I mean by reflection is the ability to look in the mirror

What becomes a standard in the technology industry? Why are

and admit, "Maybe I'm not doing this task the right way. Maybe

most of Microsoft's technologies considered standards? Be-

there's a better way." What can give me quicker results if I ex-

cause they are the leaders in technology, thus, might makes

periment with something new? What can I use, in a trial and er-right in technology, not necessarily what is best. So we haveror way, which will help promote change in behavior? What arethese two powerful variables: Strategic Integration and Cultural

the common factors that help promote such change? The most

Assimilation, I don't have lots of time, I've got to change things,

reliable project that has defined beginnings and endings are

and our research shows that we're inconsistent, we don't know

technology projects. Technology provides measurable out-

how to manage it, we have no best practices, and we're disjoint.

comes! Either the technology worked or it didn't work! Either

The question is, is there anything we can do about it? The an-

we got orders out faster or we didn't. That's a wonderful way toswer is yes. IT departments must integrate themselves betterreflect and see if a new process is valuable to me as a worker orwith the cultures of their organizations. This can only be accom-

not.

plished through changes in behavior. Behavioral changes do not

Unfortunately, we know that the technology profession

occur from technology. They occur from learning, from reflect-does not have official best practices. Therefore, we need to em-

ing, from looking at things differently, and being able to adopt

power our organizations to experiment with technology certain-these technologies and assimilate them.

ly because we know projects end one way or another. So this isa perfect way of engaging an organization to embrace change

Let's take a very popular product called SAP. SAP is anfrom innovative technologies. So what does this mean? One:

enterprise management product, we all know this type of soft-the days of the IT department being all alone, doing what itware works, yet 50 percent of the time SAP implementations

wants, are over. You must be an integrated organization within

are unsuccessful. It doesn't fail because there's something

the rest of the community. So, making technology integrated iswrong with the technology, it doesn't necessarily fail because

your challenge.

it's not strategic; rather it fails because a particular organization

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cannot integrate the technology in their organization. They can-Here is what IT should accomplish to be successful. You

not integrate SAP because they fail to change the behavior ofmust implement a means of establishing technology integration

their people. The people who provide the most impact in this

into the actual business processes. Also, stay away from techni-change and assimilation are what I call business line managers.

cal methodologies. Every organization is unique; every cultureis different. Therefore, in each case, you have to find what

nue, what are you expected to do? You're expected to be daring.

works in that culture. The position of IT not being responsible

You're expected to engage in higher risk oriented operations.

for the business is faulty and unacceptable. If technology is not

You behave this way because you're expected to get monetary

part of the everyday business function, it cannot succeed. Execu-

returns for the business. So those organizations and depart-tives spend money on technology so that it will provide strate-ments that are Drivers must take risks―and this risk is the

gic performance and competitive advantage to the firm. If you

norm―it's expected. How many of you have ever been in mar-have a technology that doesn't do that, why are you implement-

keting? Did you think that salespeople sell every day? Did theying it?

not have a win/loss ratio? You can't bat, as they say in baseball,

Perhaps the most difficult issue for organizations to deal

a thousand. How many technology projects have you been on

with is to recognize that change resulting from emerging tech-where this concept is discussed? How then do we determine

nologies is more the norm. Every business research study has

what a Driver technology is? It is dangerous to define a technol-

shown that organizations do not like to change. That's reality.

ogy Driver as something that must generate revenue, because

So we have a clash. We have organizations that won't change,

we know that not all technology products can generate direct re-

and we have a variable that says, not only do you have toturns. So let me step back for a minute and give you somethingchange, but you have to change dynamically, in an acceleratingthat will make it easier to determine whether your technology isway, and at an unpredictable pace. How many people do you

a Driver. To do this, I will refer to a simple definition of a mar-know in organizations that are willing to do this everyday? An-

ket. A market is defined as a relationship between a buyer and aother way of stating this is that you've got to be change ready.

seller. Rather than think of a technology Driver as somethingthat generates revenue, think of it as something that changes therelationship between the buyer and the seller where your organi-

So I've spent the first part of this lecture telling you thezation represents the seller. So if you want to put in a new e-

problem. I think it's now time to offer some solutions, and themail system, it must change the relationship between the buyer

good news is that there are solutions to this dilemma. There are

and the seller. There better be something that your customer

essentially two dimensions of technology. This became evident

will get out of this. If not, why are you doing it? So when you

to me after many discussions, reviews and consultations withcreate the latest and greatest technology, don't walk into thecorporations, and understanding that they saw IT in only one di-

CEO and tell him/her how good the technology is, rather tellmension.

the CEO how it changes the relationship between your customers. And if you cannot do that, your technology is less valuable

So what I ask of you now, is to think of these two IT di-to the organization. The impact of whether you are a Driver ormensions in terms of two words. One: are you a Driver? Two:

not a Driver means little unless you understand the other dimen-

are you a Supporter? Because depending on which one you are,sion: Supporter.

it dramatically makes a difference on how you will use technology and value it. My most recent studies that involved Chief

Supporter functions are units that do not generate obvious

Executives, Chief Operating Officers, and Chief Financial Offi-

direct revenues, but rather support Driver units. Supporter de-cers made it clear that presenting technology as either a Driverpartments, by their very nature, are evaluated on effectiveness,or Supporter was the most effective way to get these executives

efficiencies, economies of scale. That is, do it cheaper andto understand the dimensionality of IT. What is also importantcheaper and cheaper. Any executive that looks at IT as a costis that if these executives understand Driver and Supporter thencenter only sees a Supporter role. And indeed this is what mostthey will implement it. Whether a technology is a Driver or achief executives see. They need help. They need your help.

Supporter relates to the behavior and contribution that a technol-

Chief executives need to understand that there is another dimen-

ogy can make to the goals of the organization. So this is thesion of technology. This technology Driver comes with un-time to sit back and say am I a Driver, or am I a Supporter?

certainty. We're going to have to take a risk, and you know

One is not worse than the other, or better. It is very important

what? We may have to throw it away sometimes. This is not fic-

for you to understand that.

tion. For example, the former CIO of the Americas for Siemens
Corporation; his name is Dana Deasy, had a 90 day concept. Eve-

Let's first start with defining a Driver. A Driver depart-ry 90 days they would review major new technology projects.

ment is defined as a unit that engages in direct revenue generat-

Some went forward. Some got canceled. Some had major chang-

ing activities. You're driving revenue. If you are driving reve-es. New technology projects did not bat a thousand. Incidental27

ly, if you think that this cannot be done in a large organization,

based on efficiency and economies of scale.

Siemens Corporation has over 450 employees in 139 companies. That means 139 Chief Information Officers. Yet they real-

Let me provide you with two examples. Ten years ago, if

ized five years ago that if they were going to be able to compete

you came to Columbia University, and I told you I had e-mail,in this world, they had to adapt to a Driver technology concept

you would say "what an advantage." Today, you would likely

and they had to have technical people who understood how thatsay: "So what? So does everyone else." So email went from be-worked throughout their organizations.

ing a competitive advantage for attracting new students to an expectation―an expectation that every college provides email―

Another way of seeing a Supporter is measuring it likethat's a commodity!

you would any commodity product. That is, cost is the only is-

Second example. An international company called thesue. So if you are a programmer, and all you do is support

Leading Hotels of the World. They are an organization that pro-work, then you will be judged solely on your technical abilities.

vides luxury vacations for wealthy people. Eight years ago,

But if you have the ability to also do Driver activities, that is,

wealthy people picked up a phone when they wanted to go

the ability to talk about new innovation, to understand how thatsomewhere fancy. Five years ago, the Leading Hotels of theaffects the business, now you've really got my interest! You

World implemented a new technology that provided an auto-see, a Driver is never a commodity. So let's look at this: is IT amated reservation system. It was a competitive advantage. It

Driver or a Supporter? The answer is yes! It's both. And that is

was a Driver. What do you think the competitive advantage to-the heart of the difficulty of understanding how to manage it.

day of having an automated reservation system is. Probably

Let me put this into further context. All initial IT initiatives

ZERO! Your customers assume you have one. Here, again weshould start out as a Driver and then eventually become a Sup-see a Driver technology transform into a Supporter technology.

porter. What we're talking about here is a description of a tech-

Therefore, IT can drive business strategy, and yet support it at

nology life cycle that transforms in risk and value over time. So

the same time. Fundamental, but yet few people actually under-

here it is, and you should write this down, if you have a new

stand it. The way to imagine this dual role is to understand thattechnology, and it doesn't change the relationship between thetechnology starts out as a Driver. If you're not a Driver, don't

buyer and the seller, there's no reason to use it; simply becauseeven invest in the technology. At some point we re-evaluate

it has no strategic value to the business. However, all Driver

this technology like Siemens did, because we are taking a risk

technologies will eventually become Supporters. I guaranteewith any new technology, and we are not sure how it's going toyou, all technologies eventually become commodities. So whenwork out. Eventually the technology matures and is operating

you first implement technology, you're a Driver, you take risks,

in the business. And then, there may be what I call these mini

you're not sure the way it's going to come out, you've got to beloops, which are enhancements made to the product over somechange ready. Once you implement the technology will eventu-

period of time. Although during this phase it is still a Driver, it

ally lose its competitive edge, and then you look and measure it

will eventually mature and become a Supporter which means it
is no longer a competitive edge for the business!
This means that your competitors have the same
technology. And, when that occurs, we willmeasure the technology in economies of scale,and it can either be replaced, or it's a candidate
to be outsourced. However, you would never,
ever outsource a Driver technology.
Another way of understanding this concept
is to relate it to an s-curve in marketing, where a
new technology or a new product introduction
continues to grow in sales, but at some point, itslacks off. That slack means it's now a Supporter. Sometimes, product enhancements can rejuvenate and prolong the life of a Driver because
the enhancement provides new competitive advantage. In this case, you've just modified the28

life cycle of a piece of technology.

dynamic behavior, unpredictable outcome, fosters the need forWhen we look at value from a Driver, we have to be care-organizations to change on an ongoing basis. Organizations doful. In the case of the reservation system example, one could

not like to change, but technology requires organizations to re-see the direct returns, because the system allowed customers toinvent themselves, and evolve new cultures that are what I callmake more reservations, which could be easily allocated to addi-change ready. So let's move through the survival guide. One:tional profit. Another type of return is known as Hybrid Direct,

you must address operational weaknesses in the organization inwhere we know the technology is participating in the benefit ofterms of how to deal with new technologies, and how to better

monetary returns, but it's very, very difficult to pinpoint exactly

realize business benefits. If you've got places in an organization

how much it is, so we apportion it in some way―sometimes us-

where this is not being done, your organization and your busi-

ing an algorithm. An example of this can be seen when technol-

ness is going to be in trouble. Provide a mechanism that both en-

ogy is used to support stock markets where we know the tech-ables the organization to deal with accelerated change caused

nology is an important component of generating revenue, but

by technological innovations, and that integrates them in a new

not the only part. Yet another method of measuring value iscycle of processing and handling change.

calledIndirect.

That is, there are no related direct benefits,

but yet the firm understands that there is a related benefit. A

This lecture is not about "this would be nice to do if wegood example of indirect benefits is a customer help line. Is it

had the time," this discussion is about "survival and an ability

really generating revenue? No, but it's generating a strategic

to compete in a new world." We don't have time for weekly

benefit called customer support. Finally there is a very common

meetings. The meetings have to be dynamic. The people in-

IT value that nobody ever likes to use called none. If we put

volved in IT and non-IT have to be working seamlessly togeth-a desktop computer on an employee's desk, am I going to waste

er. If there are communication problems and gaps they have totime to determine whether it's a Driver or a Supporter? That ob-

be taken care of. You must constantly monitor IT investments,

viously makes no sense. Simply put, we call this type of invest-

like Siemens did, and you must have practices that require

ment a cost of doing business. If you're going to be in busi-

everyone in the organization to be strategic, including program-ness, you've got to have desktop computing. If you're going tomers, network people, and technology managers. I recognize

be a school, you have to have a podium, you have to have pro-that we cannot do this alone. Executives and managers need tojectors. You can't really apportion that.

step up to the plate and be educated. They must allow IT and
non-IT to work together. They must educate all levels of theirThus far we have established the problem and the solution. The third and final step is: how do we do it?
Integration is the fundamental key. IT and non-IT must be-organization. They must understand Driver/Supporter, theymust participate in this life cycle, and they must be championsof a change ready organization.

come almost invisible in the way they work together. We're becoming a society of specialists. Notwithstanding what depart-

So I leave you with this: don't be an advanced technologi-

ment we happen to belong to, IT and non-IT contribute to all

cal company, be a mature technological company, and don't con-business units and all IT specific issues. Let me be more specif-

fuse the difference between advanced and mature. A mature

ic: value what non-IT people know about technology. They

technology organization is one where technology is evaluatedknow more about technology than you think they do, because

based on strategic value. Strategic integration of technology

they look at it from a different perspective. At the same time, in-must always be evaluated based on the ability of the organiza-vite your technology people into meetings. It's amazing howtion to assimilate it. Assimilation goes beyond the staff, themuch they know about your business. Show me an organization

warehouse, it means everyone. And finally, where we started

that has this type of structure and I will show you an organiza-

this discussion, whatever that process is, it better deal with ac-tion that can respond dynamically to changes. And those of you

celerated pressures to respond, dynamic changing behaviors ofthat are considering a technical career only, do not think you're

your customers, and the unpredictability inevitably of whatgoing to be exempt from participating in these discussions. You

you're trying to implement technically.

won't be!
So, what is technology then? It is our most significant
agent of change. We finally have an agent that demands organi-Thank you again for the honor of being able to be here to
speak today, and for being such a wonderful audience.

zational change. There's no choice. If you don't change, you
won't be around. To summarize these three issues, acceleration,(June 10, 2005)
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