leading digital transformation to scale cio agenda 2016 top 10 … · by 2018, 80% of development...

Johan Hallberg

Research Manager, Nordic Services and Sourcing

Leading Digital Transformation to Scale– CIO Agenda 2016 Top 10 Predictions

CIO Trend 2016

Disrupted business models

2

These organization

are natively digital…

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

Most are not!

Digital or dead!?

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 3


“Digitalisering

är en hajp…”

”Svenska banker är inga

sömniga elefanter. Vi

har kommit ganska långt

i digitaliseringen...” Annika Falkengren, vd på SEB. Foto: All over press

Source: IDC

Technology innovation is at the heart of

digitalization


http://uk.businessinsider.com/netflix-

intuit-juniper-go-all-in-on-amazon-

cloud-2016-1

http://uk.businessinsider.com/netflix-intuit-juniper-go-all-in-on-amazon-cloud-2016-1

The cloud has changed

IT infrastructure forever! GE is to become the leading digital industrial company in the

world. General Electric CIO Jim Fowler predicts that by 2020 GE will generate $15B in revenue from software per year.

Key factors1. The people – investing $1B in developers and insourcing!

2. Technology – Build vs Buy, differing software and algorithms that allows us and our customers to run the business differently.

3. Leading partners – Migrating 9000 apps (including 300 ERPs) all into AWS into 4000 apps. Going from 34 to 4 data centres, keeping only mission critical data (the “Secret Sauce”).

For GE – “the Cloud has gone from probable to inevitable”


How will a Tech CxO lead the Digital Transformation?


© IDC Visit us at IDC.com and follow us on Twitter: @IDC

We recognized the need for change . . .

But where do we start?© IDC Visit us at IDC.com and follow us on Twitter: @IDC 11

“Plans are useless

but planning is

Everything!”Dwight D. Eisenhower,

WWII General

US President 1948 – 1953

Next Generation Security & Governance

Changing focus for CIO’s

12

IT Service

Excellence Operation Heroes

Business

Alignment

Business

Partnership

Digital

“Discussions”Digital Innovation

CIOs Possess Critical Skills To Enable their

Organization to Build, Change and Innovate


Justification Experience

Process Knowledge

Technology Insight

Innovate Incorporate

IDC’s DX Leadership Model

Integrate

14

Partner with the business to create digital

innovations

Innovate IncorporateEvolve existing technology platforms by continuously

infusing new skills, techniques and culture

A DX Leadership Model

Integrate

Transition new technologies into stable

business services

: IDC’s Leading in 3D

15

IDC FutureScape: Worldwide CIO Agenda 2016 Predictions

“…a strategic blueprint

for what CIOs, line of

business executives and

IT industry leaders need

to do to in the next 36

months to position for

leadership in the digitally

transformed future of

every industry – the DX

Economy.” TIME (MONTHS) TO MAINSTREAM

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0-12 12-24 24+

Speed&Quality

Security

New digital revenue streams

Strategic Architecture

Data Governance

Leading in 3D

Rationalization

Business Services

DX Collaboration

DX WorkSourceModels

1 2

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5

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8

910

Note: The size of the bubble indicates complexity/cost to address. Source: IDC, 2015

FY16 FutureScape Drivers

1717

DX: Accelerating Business

Disruption from Digital

Transformation

DX: Accelerating Business

Disruption from Digital

Transformation

Cloud Life: The Merging of Real

Life with Digital Identity

Cy-Q: An Interconnected,

Informed, Interactive, Intrusive,

Intelligent & Cognitive Ecosystem

Talent Quest: High Demand for

Next Generation Business/IT

Skills – Scarce Supply

21st Century Battleground: The

Race for Cyber Supremacy

Shifting Gears: The Slowing Pace

of IT Productivity

For additional details on the above drivers, please refer to report:

IDC FutureScape: Critical External Drivers Shaping Global IT and

Business Planning (IDC #258644, September 2015)


TIME (MONTHS) TO MAINSTREAM

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IDC’s CIO Agenda: FutureScape Figure1

2

3

4

5

6

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8

9

10

Through 2018, two-thirds of CIOs will have embraced Leading in

3D, which requires them to simultaneously innovate, integrate, and

incorporate.

By 2018, 35% of IT resources will be spent on supporting the

creation of new digital revenue streams.

By 2017, 80% of global CIOs will initiate a data transformation and

governance framework to turn information into a competitive

business differentiator

By 2018, 70% of silo-ed digital transformation initiatives will

ultimately fail due to insufficient collaboration, integration, sourcing,

or project management.

By end of 2018, 90% of IT projects will be rooted in the principles

of experimentation, speed, and quality.

By 2016, 70% of IT organizations will shift their focus to advanced

‘contain and control’ security away from a perimeter mentality.

By 2016, 75% of CIOs will have to revive rationalization initiatives

to simplify the IT environment and enable innovation.

By 2017, 60% of digital transformation initiatives will not be able to

scale due to a lack of a strategic architecture.

By 2018, 80% of development organizations supporting DX will

incorporate collective genius and crowd sourcing into their projects

as a regular practice.

By 2017, 40% of services managed by IT will be business services

oriented to augmented experience and smart products

Speed&Quality

Security



Data Governance

Leading in 3D

Rationalization

Business Services

DX Collaboration

DX WorkSourceModels

12

3

4

5

6

7

8

910


Colors

Incorporate

Innovate

Integrate

CIO Agenda – PredictionsHighlights

1. Through 2018, two-thirds of CIOs will have embraced Leading

in 3D, which requires them to simultaneously innovate,

integrate, and incorporate.

2. By 2018, 35% of IT resources will be spent to support the

creation of new digital revenue streams.

3. By 2017, 80% of global CIOs will initiate a data transformation

and governance framework to turn information into a

competitive business differentiator.

7. By 2016, 75% of CIOs will have to revive rationalization

initiatives to simplify the IT environment and enable innovation.

8. By 2017, 60% of digital transformation initiatives will not be able

to scale due to a lack of a strategic architecture.

19

Innovate

Integrate

Leadership

Integrate

Incorporate

20Leading in 3D

Through 2018, two-thirds of CIOs will have embraced Leading in 3D, which requires them to simultaneously innovate, integrate, and incorporate.

1

IT Impact IT will serve as the transformation engine – from old to new, from unstable to stable, from experimental to operational.

IT Leadership will take place along three dimensions:1. Innovate: as a partner to the business in fostering

IT-enabled agility and innovation2. Integrate: as the owner of the processes that

transition new platforms to become stable business services

3. Incorporate: as a reliable and secure service provider for the established suite of IT-based products and services

Guidance Focus on critical business challenges to deliver speed, robust technology platforms, and cross-functional leadership to drive change

Build a roadmap for an organization that enables the business to thrive in the midst of digital transformation

Focus on the continuum of innovation, integration, and incorporation with strategic planning of capabilities for short, medium, and long term

Leadership

IDC’s CIO AgendaTop 10 Predictions



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Speed&Quality

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Data Governance

Rationalization

Business Services DX WorkSourceModels

1 2

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910

DX Collaboration

Leading in 3D

Innovate: New digital revenue streams

IT Impact New digital products and services will represent the growth area for enterprises and IT

Organizations must shift their focus from operational concerns to innovation and integration

A robust foundation and information framework will be required to sustain product development, delivery, quality, and growth

Cost, complexity, and inconsistency will result in failed products and lost opportunities if IT does not step up to deliver early

21

By 2018, 35% of IT resources will be spent to support the creation of new digital revenue streams.

IDC’s CIO AgendaTop 10 Predictions

Guidance Start acquiring new talents and capabilities. The old excuse ‘we don’t have time for that now’ just doesn’t cut it anymore. Make time for it now, get started immediately, or it won’t matter in a few years

Cultivate and train internal talent as a way to shift skill sets to those that are needed to support digital transformation

Build a solid architectural foundation of plug and play services that enable new digital products and services. Be the "enterprise broker" of internal and external services

Innovate



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Data Governance

Rationalization


1 2

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DX Collaboration

2

Leading in 3D

22Integrate: Data Governance

By 2017, 80% of global CIOs will initiate a data transformation and governance framework to turn information into a competitive business differentiator.

IDC’s CIO AgendaTop 10 PredictionsIT Impact Information is key to digital transformation

Information must be integrated consistently across multiple sources and provided to analytic and cognitive systems

Information value must be developed and realized. Governance and stewardship determine information value

Information management is core to sharing knowledge and providing flexibility and agility

Guidance Create an information governance framework assigning accountability to the business executives

Design a harmonized approach to both the old world of business intelligence and the new word of big data and analytics

Assess future needs and build bench strength in skills like data science, that enable data transformation

Integrate



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Data Governance

Rationalization


1 2

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DX Collaboration

3

Leading in 3D

23Incorporate: Rationalization

By 2016, 75% of CIOs will have to revive rationalization initiatives to simplify the IT environment and enable innovation.

IDC’s CIO AgendaTop 10 PredictionsIT Impact Data, applications, and infrastructure rationalization

are key to reducing complexity

Cutting cost via rationalization also allows increasing speed of change and accelerating innovation

3rd Platform and security requirements force many existing products into premature obsolescence and early retirement

Shift to IaaS infrastructure provides rationalization opportunities

M&A activities demand economies of scale

Guidance Create a strategy for data rationalization, a critical step to enable companies to focus on what matters or present the best opportunity of value

Launch or revive a rationalization initiative to address the new challenges

Establish a continuous maintenance process to establish the rationalizing effort as a needed component of agility



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Data Governance

Rationalization


1 2

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DX Collaboration

Incorporate

7

Leading in 3D

24Integrate: Strategic Architecture

By 2017, 60% of digital transformation initiatives will not be able to scale due to a lack of a strategic architecture.

IDC’s CIO AgendaTop 10 PredictionsIT Impact Strategic architecture is the means to coordinate and

integrate key components supporting the digital transformation of the enterprise

Uncoordinated projects and sourcing will lead to redundancy, inconsistency, and an inability to create interoperable, transformative solutions

Business will go to IT because it is the best option, not because they are told to

Guidance Do not expect business units to understand architecture or necessarily be motivated to make enterprise tradeoffs

See that architecture assists the business in sourcing services by educating on the true costs and acting as a broker for internal and external services

Ensure that IT is competitive in terms of cost, speed, and availability, and have a streamlined process for bringing new services in-house and into the catalog Note: The size of the bubble indicates complexity/cost to

address. Source: IDC, 2015


OR

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Speed&Quality

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Data Governance

Rationalization


1 2

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910

DX Collaboration

Integrate

8

Leading in 3D


Disruption Requires World Class Technology Leadership on 3 Fronts

Visionary leadership

Risk seeking

Agile development

Business analysts

Leading the ‘Innovate’

Agenda

Change leadership

Managing risk

Agile and waterfall

PMOs, architects and DevOps

Leading the ‘Integrate’

Agenda

Sustaining leadership

Risk and reward

Waterfall development

IT operations

Leading the ‘Incorporate’

Agenda

Want the details

and more?

Here is our gift to

you!

IDC FutureScape:

Worldwide CIO

Agenda 2016

Predictions


Want more on Leading in 3D?Related Research IDC PeerScape: Practices for Successfully Integrating Digital Innovation Groups with

Traditional IT Operations (Forthcoming)

Leading in 3D: Becoming a Digital Business (IDC #US41012216, February 2016)

IDC MaturityScape Benchmark: Leading in 3D in the United States (IDC #US40995716, February 2016)

IDC MaturityScape: Leading in 3D (IDC #US40933616, January 2016)

Leading in 3 Dimensions (L3D): Critical Issues for Digital Transformation (IDC #US40706315, December 2015)

IT Strategy and Innovation: Leadership in 3D — Beyond Two-Dimensional IT Thinking (IDC #256593, June 2015)

IDC MaturityScape: Leadership Digital Transformation (IDC #255709, May 2015)

IDC MaturityScape: Digital Transformation (IDC #254721, March 2015)


CIO Agenda – PredictionsPart I

1. Through 2018, two-thirds of CIOs will have embraced Leading in 3D,

which requires them to simultaneously innovate, integrate, and

incorporate.

2. By 2018, 35% of IT resources will be spent to support the creation of new

digital revenue streams.

3. By 2017, 80% of global CIOs will initiate a data transformation and

governance framework to turn information into a competitive business

differentiator.

4. By 2018, 70% of silo-ed digital transformation initiatives will ultimately fail

due to insufficient collaboration, integration, sourcing, or project

management.

5. By end of 2018, 90% of IT projects will be rooted in the principles of

experimentation, speed, and quality.

29

Innovate

Innovate

Integrate

Leadership

Integrate

CIO Agenda – PredictionsPart II

6. By 2016, 70% of IT organizations will shift their focus to advanced

‘contain and control’ security and away from a perimeter mentality.

7. By 2016, 75% of CIOs will have to revive rationalization initiatives to

simplify the IT environment and enable innovation.

8. By 2017, 60% of digital transformation initiatives will not be able to scale

due to a lack of a strategic architecture.

9. By 2018, 80% of development organizations supporting DX will

incorporate collective genius and crowd sourcing into their projects as a

regular practice.

10. By 2017, 40% of services managed by IT will be business services

oriented to augmented experience and smart products.

30

Incorporate

Innovate

Incorporate

Integrate

Incorporate

For additional details on the above predictions, please refer to report:

IDC FutureScape: Worldwide CIO Agenda 2016 Predictions (IDC November 2015)

leading digital transformation to scale cio agenda 2016 top 10 … · by 2018, 80% of development...

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