Groove Networks CEO Ray Ozzie Says New Collaboration Tools Accelerate Innovation Best In Business Units That Operate Close to Customers

Business Wire, Jan 25, 2005

STAMFORD, Conn. -- In Two-Part Gartner Fellows Interview, Ozzie Says CIOs Support Collaboration Best By Balancing Control and Flexibility in IT

Business experts close to their customers typically create the best applications of new technologies that spur innovation and business growth, not the technologists themselves, according to Ray Ozzie, founder and CEO of Groove Networks.

"It takes a technologist to build it, but it takes business experts to know what needs to happen," Mr. Ozzie said in a two-part interview posted this month on gartner.com. "Moving forward, we have to be able to regard technology as something that can be used by a business unit - tactically and locally - to accomplish an objective. Start locally. Ultimately, the things that should become infrastructure, will become infrastructure."

Mr. Ozzie, a lead programmer of the original Lotus Notes software, is one of the world's leading thinkers about computer-supported cooperative work, or how software can help organizations and workgroups be more effective. He founded Groove Networks in 1997. The company's virtual office software allows teams of people to work together over a network as if they were in the same physical location. The software enables users to bring together the people, information and tools they need to work together in secure, private workspaces where members can share files, instant message, chat, share calendars, and track data with easy-to-assemble forms-based applications.

In the interview, conducted by Gartner Fellow Tom Austin, Mr. Ozzie said many enterprises still struggle with the challenges of balancing the need for standards and individual autonomy in how information technology is used.

"What really disappoints me is that we as technology users keep forgetting the lessons we learn," he said. "There is a pendulum that appears to keep swinging back and forth, and we keep polarizing the issue, when in fact we should have learned that both are necessary. Some problems are best solved centrally, others are best addressed locally."

The challenge is how to best use a mix of centralized and decentralized IT models to accomplish the business objectives, he said.

"The smart CIO embraces both and understands how to weave the two together appropriately within their own environment," he said. "Although central IT continues to play a large role, the most important decisions for the business are made closer to the edge" of the organization where knowledge of the customer is highest.

Other key points highlighted by Mr. Ozzie in the interview include:

--Senior leaders must signal that collaboration across their organization is welcome before people "at the edge" will take more risks. The U.S. Government is a good example, encouraging agencies since 9/11 to share information and conduct joint operations

--With few exceptions, the time has passed when a technology company could convince a corporate client to deploy a new IT product broadly in the client's organization before the product was proven to be materially beneficial to the business

--The benefits of innovation are accruing to smaller organizations, "the little guys", because they have fewer centralized policy restrictions. The tables have turned, and enterprises have become the laggards.

--Microsoft's most significant advantage in its PC operating system is distribution muscle, not necessarily its technical control of the operating environment. Its technical innovations are out of lockstep with customers because most are tied exclusively to the latest OS release. Most customers run a broad mix of prior versions.

--Storage availability is increasing at a more rapid rate at the edge of the organization, in the business units, rather than in the central IT infrastructure. IT administrators should think about how to exploit this trend to reduce centralized costs.

The interview with Mr. Ozzie is available on Gartner's Web site at www.gartner.com.

The Gartner Fellows Interview features Gartner analysts each month in discussions with leaders in technology, business and government on significant industry issues. The Gartner Fellows are 15 Gartner research analysts, distinguished by their reputations as innovators and thought leaders. They collaborate with more than 500 Gartner research analysts worldwide to identify and examine emerging trends and technologies.

About Gartner

Gartner, Inc. (NYSE: IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.