More on the Real Time Enterprise

The real time enterprise or RTE is a profound phenomena.  It’s THE critical thing in business today.  Ignore this at your own risk.

What is it exactly?  There’s a host of material out there to educate you.

Go here, and here, and here, and here.  Read up – the RTE is coming and it will hit your industry and your company will go down one of two paths – become an RTE or go bankrupt.  It’s that simple.

This is critical – there are only two choices:  Become an RTE or file for bankruptcy. 

What’s my quick definition of an RTE?  It’s a maniacal commitment on the part of a company to become real time in all business processes.  It’s a passionate drive to remove all low value human touch points from a business and improve the high value human touch points in place (intelligent workflow does this).  It’s a rigorous commitment to invest in technology’s to make all computer systems interconnected – real time – to enable the flow of information seamlessly across an organization (think service oriented architectures and XML standards and concepts like an enterprise information bus). 

It’s a commitment to business intelligence and business analytics – not for the hell of it but for enabling real time monitoring of a business distinctly for the purpose of improving materially the business operation.

If you become one – you’re either leading your industry (good for you) or becoming the first RTE in your space or you’re reacting to a company that has become an RTE in your space (this isn’t good – you’re reacting but it’s better than not reacting or reacting too late and then filing your bankruptcy).  If you’re first in your industry to do this – prepare for more market share.  If you decide not to become one – prepare to say goodbye permanently to your market share.

Dell put Gateway into bankruptcy and will do it to HP unless HP rigorously and quickly becomes an RTE.  Trust me – HP screwed it up by not reacting or reacting too late.

Wal-Mart put K-mart into bankruptcy and will do it to Sears unless Sears passionately and immediately becomes an RTE.  This isn’t likely.  I think it’s all over for the Sears boys.

Wal-Mart – in deciding to become at RTE years ago did something else in their industry.  They forced similar behavior in Target.  This is an interesting relatively unnoticed impact of one company in an industry becoming an RTE:  they force others to invest in similar technologies and processes and skill sets.  Target had a choice – do what Wal-Mart did or do what K-Mart did – become an RTE or file their bankruptcy.  Target also carves space in their market that makes them brand-wise different than Wal-Mart.  Ultimately though – the big blue box will make life harder for Target.  But at least Target has their RTE investments on their side.

If one of your competitors becomes an RTE – I suggest you act with a level of urgency and focused commitment that is equal to a one armed bartender working the St. Patricks’ Day no-cash bar at family reunion weekend at the Kennedy compound (thank you -Dennis Miller).

If one of your competitors becomes an RTE before you do – then they are arming to take market share like no one else has since your market started.  And you better prepare or your movie is over. 

If none of your competitors are an RTE and you’re not – why not lead the pack?  Why not take what is potentially yours for the taking?

This beginnings of this battle is currently happening in the Auto industry and GM’s CIO – Ralph Szygenda is systematically shaping and chiseling and scraping and dragging GM into becoming an RTE.  When Ralph is done – he’ll have gotten GM there first.  The result will be that GM will be a transformed company. 

They’ll know what’s in their production line faster then their competitors. 

They’ll know what’s selling on their Dealer’s lots faster then their competitors. 

They will be able to accelerate and decelerate production better and more efficiently then their competitors. 

They will be able to decide faster and move faster and sell faster and fix faster than anyone else they compete with.

They will be able to grow in the BRIC nations sooner then their competitors and do so more profitably and efficiently.

GM’s quality in their vehicle will rise because intelligence in the system will materially improve decision making.

GM’s partners – their dealers will benefit – because their franchise will operate more efficiently and more profitably and overall – just better.

Finally, as a result – other Automakers will be given the choice – become one too or prepare for the worst.