dbs2016: analyst insight


Jan Erik Aase – Director of Research and Principal Analyst

Analyst InsightRethinking IT as a Service Broker


Agenda

1. IT’s Change Imperative

2. The Digital Agenda

3. New Business Model Drivers

4. IT4IT enables the Service Broker model

5. Seven Habits of the new IT

(What is the cost of bad or no action?)IT’s Change Imperative


IT’s Change Imperative

Change or die. Technology is now the product/service. IT has direct interfaces with the client. There are consequences – good and

bad. Value comes through collaboration. IT4IT leads to efficiency and agility.

(Who is the business calling?)The Digital Agenda


Analytics/Social

Mobility/Social

Robotics

Internet Of things

Augmented Reality

67%

71%

100%

100%

100%

The Business Digital Agenda

Source: IAOP/ISG State of the Industry Survey - 2016

Implementing Digital Projects 65% of clients leverage services providers

to implement their projects 35% only leverage interal IT Augmented Reality, IoT and Robotics are

100% outsourced Mobil and Analytics still have heavy

reliance on outsourcing


Enterprises will extract business value through their digital fabric in four main fields.

The Business Digital Agenda

Change of staff structure (skills management)

Installation/enhancement of security management

Increase systems integration capabilities

Development / improvement of the transparency of IT´s business

value

Development / adjustment of a technology roadmap

Restructuring of the business process landscape

22%

22%

29%

36%

38%

52%


New skills are needed Clients lack capital to move entirely to

a new service architecture Incumbents are challenged to move

from T&M to outcome based Incumbents are not proactively

redesigning “out with the old and in with the new”

(How will they be leveraged)New Business Model Drivers


The Pyramid

The hyper market

Access over ownership

The Freemium Model

The Market Place

The Experience Model

The Free Model

Omni Channel

The Ecosystem

The Subscription Model

The On Demand Model

3% , e.g. Amazon

4% , e.g. Amazon, Zalando

5% , e.g. Zipcar, ParkCirca

5% , e.g. Dropbox, LinkedIn

6% , e.g. eBay, Al-ibaba

8% , e.g. Apple,Tesla

8% , e.g. Google, Facebook

12% , e.g. Starbucks

17% , e.g. Apple, Google

23% , e.g. Netflix, Kindle

29%, e.g. Uber, TaskRabbit

The Business Digital Agenda?




Business Model Drivers

95% of clients are aware of the new business models

Biggest challenge is setting up an application eco-system

Complicated by a growing diversification of application environments

(Can they demonstrate the value?)

IT4IT Enables the Service Broker Model


Enable the Service Broker Model

Value Streams: The new “IT Factory” Strategy to Portfolio: IT

investments are prioritized for business demands

Requirement to Deploy: Build or buy and then integrate

Request to Fulfill: Delivered via service catalogs and self service

Direct to Correct: Always onSource: ISG Insights - 1928 PGI Leadership Insight

(Is value being delivered?)7 Habits of the New IT


Seven Habits of the New IT

2 Sell products and services “by-the-drink”

4 Own the Value Chain

5 Enable the marketplace for buyers and sellers

6 Leverage crowdsourcing 2.0

Embrace platforms as a product

1

7 Sell what the market wants, as they want it

Rationalize products for synergy

3

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