- 1 - copyright 2008 freeform dynamics ltd progressive it, sourcing and architecture selected...

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Copyright 2008 Freeform Dynamics Ltd

Progressive IT, sourcing and architecture

Selected findings from primary research conducted by Freeform Dynamics. 202 UK respondents, March 2008

Matt Deacon andJon Collins

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Future of IT – Hypotheses

1. IT sourcing is moving from an Outsourcing to a Multi-sourcing model

2. Sourcing/Service providers will deliver services at increasingly fine levels of granularity/specialisation

3. Services will be as provided both on and off-premise models

4. Emerging approaches, adoption mechanisms and architectures such as SOA, SaaS are driving this transformation

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Progressive IT, sourcing and architecture

• What is progressive IT?

• The progressive view on:– Software as a Service– Development outsourcing– Service Oriented Architecture

• Hybrids and the integration imperative

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At a high level, what kind of role does IT play in relation to the business? (Organisation size)

0% 20% 40% 60% 80% 100%

10,000 or more

1000 to 10,000

250 to 1000

A strategic function which is seamlessly integrated with the business at all levels

A close partner to the business, separately run, but with good two way collaboration

An autonomous internal service provider, delivering services according to requests

A servant of the business that does what it is directed to do

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At the highest level, how would you say IT is viewed by senior management within your business? (Organisation size)

0% 20% 40% 60% 80% 100%

10,000 or more

1000 to 10,000

250 to 1000

As a source of business advantage in its own right

As an important enabler of business advantage

As a cost centre

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At the highest level, how would you say IT is viewed by senior management within your business? (Stock market growth)

0% 20% 40% 60% 80% 100%

Large increase

Increase

Decrease

As a source of business advantage in its own rightAs an important enabler of business advantageAs a cost centre

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Business and IT...

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Chicken and Egg ...

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The V-Word

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How familiar and comfortable are you with the term ‘Software as a Service’, or ‘SaaS’ for short?

Haven't heard this term before

16%

Heard the term but don't really know what it

means23%

Familiar with the concept, but not the

practicalities32%

Very familiar and

comfortable29%

*

* Excluded from remainder of interview

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Use of SaaS, to any degree in any context(Picture derived from detailed responses to a range of specific questions relating to if and how SaaS is used)

0% 20% 40% 60% 80% 100%

10,000 or moreemployees

1000 to 10,000employees

250 to 1000employees

Use SaaS at least somewhere in the organisation

No use of SaaS anywhere in the organisation

Don't know (unable to answer SaaS related questions)

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0% 20% 40% 60% 80% 100%

Organisations in which IT is regarded as asource of business advantage by senior

business management

Organisations in which senior businessmanagement regard IT as primarily just an

enabler of advantage

Organisations in which the IT department islargely viewed as a cost centre at senior

business management level




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Organisations outsourcing at least some activity within the application development lifecycle

0% 20% 40% 60% 80% 100%

10,000 or moreemployees

1000 to 10,000employees

250 to 1000employees

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Average outsourcing index by Senior Management view of IT

0 1 2 3 4 5 6 7

Where IT is viewed as a source ofbusiness advantage in its own right

Where IT is viewed as an importantenabler of business advantage

Where IT is viewed as a cost centre

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How much would you agree with the following phrase: “We are committed to adopting service oriented architecture as we continue to evolve and modernise our IT systems”

Strongly agree28.7%

Agree20.8%

Neutral17.3%

Disagree29.2%

Strongly disagree

3%

Not answered0.5%

IT decision making audienceIT decision making audience

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Again at a high level, what kind of role does IT play in relation to the business? (Organisations committed to SOA)

A strategic function which is seamlessly integrated with the

business at all levels33%

A close partner to the business,

separately run, but with good two way

collaboration27%

An autonomous internal service

provider, delivering services according

to requests23%

A servant of the business that does what it is directed to

do17%

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0% 20% 40% 60% 80% 100%

Those committedto SOA

Others




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The Integration Imperative

In-house

Outsourced

Managed

SaaS

CloudIT S

ER

VIC

ES

BU

SIN

ES

SS

ER

VIC

ES

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Meanwhile, the hybrid approach: “How familiar are you with the approach I have just described?”

Don't really know what you are talking

about24%

Hadn't heard about it until you just told me

16%

Heard about it, but didn't know what it

was until you described it

28%

Familiar with the concept, but not the

practicalities15%

Very familiar and comfortable

17%

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Use of hybrid architectures to any degree in any context(Picture derived from detailed responses to a range of questions relating to if and how the hybrid approach is used)

0% 20% 40% 60% 80% 100%

Organisations in which IT is regarded as asource of business advantage by senior

business management

Organisations in which senior businessmanagement regard IT as primarily just an

enabler of advantage

Organisations in which the IT department islargely viewed as a cost centre at senior

business management level

Use Hybrid/S+S at least somewhere in the organisation

No use of Hybrid/S+S anywhere in the organisation

Don't know (unable to answer Hybrid/S+S related questions)

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Getting progressive – a view from the garden

• The IT organisation needs to get the basics right

• Create a common language between business and IT

• Establish a peer relationship between business and IT

• Work towards co-ordinated goals and objectives

• Manage IT as a business-driven portfolio• Foster relationships with key IT suppliers

- 1 - copyright 2008 freeform dynamics ltd progressive it, sourcing and architecture selected...

Documents

freeform dynamics

soa slide

transformation slide

integration imperative

organisation size slide

jon collins slide

remainder of interview

use of saas