11.2 Clearing the Decks: Core Versus Context

11.2 Clearing the Decks: Core Versus Context

The first step of incrementing to simplicity requires separating core and context functions. In a keynote presentation at Storage Networking World, the industry's premier conference event, Geoffrey Moore outlined his approach to clearing the decks as a means to create competitive advantage. Moore argued that by managing non-core business functions defined as context, companies free time to focus on business functions that build and sustain value. This section covers the key points of that presentation.

11.2.1 Success via Differentiation and Identification of the Core

Ultimately, companies succeed or fail based on their ability to create value for customers above and beyond what can be delivered by competitors . Competitive differentiation can be created in areas such as operational excellence, particularly in commoditized markets, or product leadership, where performance measures dwarf other offerings. In each case, companies succeed by identifying differentiation points and intensely focusing on their delivery.

Business functions and processes that directly impact differentiation create sustainable advantages and are classified as core . All other functions that support corporate commitments are classified as context . For any young business to succeed, its core must be differentially better than its competition. As such, younger companies spend more time, talent, and money on core functions. As these businesses grow, supporting functions explode and resource allocation shifts towards context instead of core, as shown in Figure 11-1.

Figure 11-1. Context buildup. (Source: The Chasm Group)

As competition gets wind of new core functions, they replicate them to the point where any core function eventually becomes context. Without continually expanding and focusing on core functions, domination by context is inevitable. In the data storage industry, new capabilities may start out on the top of the food chain as core functions, but slowly migrate downward to where they become context. Since the context functions still require management and resource attention, higher core functions may become missed opportunities due to lack of focus, as shown in Figure 11-2.

Figure 11-2. Core functions eventually end up as context. (Source: The Chasm Group)

11.2.2 Storage Infrastructure as Competitive Differentiator

For many companies, limited external visibility of the data storage infrastructure makes it hard to put storage on a list of core functions. More often than not, storage is a supporting function within the organization and better classified as context. However, since a preoccupation with context detracts from an intense focus on core, the connection may be closer than realized. Therefore, limiting the managerial attention and resources for routine data storage functions can positively increase the organization's ability to develop core functions.

Classifying data storage application across core and context initiates a planning process for managing human and capital resources, and ultimately setting organizational policies for storage. As shown in Figure 11-3, each quadrant of applications has varying operating philosophies and goals. For mission-critical core applications, such as those in the military, the operating philosophy is, "Be safe and effective," and the operating goal is to do "whatever it takes." At the other end of the spectrum, for applications such as internal Web sites and email, the operating philosophy is, "Be frugal and efficient," and the operating goal is cost savings.

Figure 11-3. Storage classification including operating goals (italics) and applications. (Source: The Chasm Group)

As shown in Figure 11-3, the most common storage investments exist in context- related applications such as enterprise resource planning, customer relationship management, email, and internal Web systems. The buildup in context results in management allocation towards those functions and, ultimately, a risk-averse strategy with little innovation.

Recapturing the time and attention to devote to forward-thinking core functions requires taming context. This is exactly the message resonating through the storage community about complexity of the storage infrastructure. Too many IT administrators are spending more time on storage as it grows as opposed to less as they get better able to manage it. The difficulty in achieving simplicity holds everyone back.