what going digital really means to it

What going digital really means to IT

SpeakersRoss Mason, Founder & VP of Product Strategy, MuleSoftBill Briggs, Chief Technology Officer, Deloitte Consulting LLP

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Today’s agenda

1. Our customers’ need for digital transformation

2. Global survey data on how CIOs and ITDMs are currently managing digital transformation

3. Digital defined

4. Understanding the forces and challenges present in the digital revolution

5. How businesses are overcoming these challenges

6. Q and A

Ross MasonFounder & VP Product

Strategy, MuleSoft

Bill BriggsChief Technology Officer, Deloitte Consulting LLP

Our speakers


Meet one of our customers

6,000applications

10,000interfaces

500IT projects a year

Each project reinvents the wheel


Biggest challenge: IT cannot go fast enough

Dem

ands o

n I

T

Time

Today

IT delivery capacity


IT’s absolute imperative to change

Dem

ands o

n I

T

Time

Today



What are ITDMs doing about this?

8

MuleSoft surveyed 802 global IT decision makers about their progress towards their digital transformation goals.


Everyone is doing digital transformation

9

96 percent of ITDMs say they are undertaking or will soon undertake digital transformation initiatives.


But they are missing the “transformation” in digital transformation

10

82% of ITDMs associate digital transformation with

“going paperless.”


IT is on the hook for digital transformation, but…

11

65% A majority of ITDMs (65%) believe IT

has the central role to play in digital transformation.


Very few organizations have mastered it

12

But only 18% think they can actually get it

done.


Failing to meet goals will negatively impact the business

13

Two-thirds of ITDMs say that if digital transformation isn’t completed, it will have a negative impact on business revenue within 6 months.


The single biggest challenge to digital transformation

ITDMs say the single biggest obstacle to achieving their digital transformation goals is misalignment between IT and the rest of

the business.


While the business is expecting faster delivery…

15

57% said the expected time to complete IT

projects for the business was six months or less.


IT is spending its time keeping the lights on

16

More than half of ITDMs say maintaining legacy systems is a “very important priority.”


The focus is not on transformative initiatives

17

Most ITDMs are spending their time incrementally improving business processes rather than delivering

innovative experiences.


Top Takeaways

18

IT teams misunderstand digital transformation

IT and the business are misaligned on digital transformation goals

The business wants IT to deliver faster, but obstacles are holding IT teams back

What Going Digital Means to IT andthe Bottom Line

Bill BriggsChief Technology Officer Deloitte Consulting LLP@wdbthree


DIGITAL defined

Business leaders are grappling with

unprecedented change – growing

connectivity, competition and consumer

power. Disrupt others before you are

disrupted means new products,

organizations, business models, and

ecosystems

Growing competition and consumer

power has eroded traditional product-

based advantages, forcing companies to

shift to a new battlefield: Customer

Experience. This requires integrating the

entire business to demonstrate value at

each and every customer touch-point

Digital acceleration focusing all efforts on

breaking new ground or quickly expanding

into new space created by a new category.

An exceptional front-end strategy must be

supported by an exceptional back office,

requiring new expertise, processes and

systems, and potentially a new operating

model

Digital at the CoreIntegrated Front & Back Office

Digital ExperiencesEngaged Customers & Employees

Digital TransformationBusiness Reimagined

SHIFTINGMARKET

Extended Ecosystems Exploitation

Competitor “First-Mover” Advantage

Customer ExperienceExpectations

Globalization

CHANGINGTECHNOLOGY

Information Technology: Digital, Cloud, Analytics,

Core Modernization, IT Delivery Model Transformation

Science and Exponentials: Artificial Intelligence,

Robotics, Bots, Synthetic Biology, Additive

Manufacturing, Nanotech, Quantum Computing

Cyber Attacks/ Security Threats

Macro-economic Tides

Risk & Regulatory Requirements

RISKS &REGULATIONS

YOU INC.THE MARKETPLACE

THE WORLD

Copyright © 2016 Deloitte Development LLC. All rights reserved.


IT transformation

Procurement and sourcing

Finance management

PROCESS

Vendor and contractmanagement

Solution shaping

Stakeholder communications and expectation management

DevOps

Leadership

Talent

Mindset/culture

ORGANIZATION

Organization structure

Incentives

Master data integration

Building to run

Design as a discipline

ARCHITECTURE

Micro-services


Five forces

ECOSYSTEMS

Digital transformation requiring dynamic configuration of products, offerings, and services across organizational boundaries

DESIGN

Shift from vertical and process focus to individual outcomes and capabilities

API ECONOMY

Business services requiring modernizing underlying interfaces and next-gen orchestration layer

RISK

Security, privacy, regulatory, compliance, safety, quality, ethics, and morality


The challenges facing DIGITAL today are ubiquitous

*DU Press 2015 CIO Survey

*DU Press 2015 CIO Survey

http://www.forbes.com/sites/gilpress/2015/11/10/transform-or-die-idcs-top-technology-predictions-for-2016/#743852ea7cec *DU Press 2015 CIO Survey


Overcoming digital challenges

Businesses are under increasing pressure to deliver more—better, faster, and cheaper.

The role of digital should evolve from providing customer support to enabling

customer experience and business growth.

• Siloed organizational structures

• Underinvestment in IT modernization

• Complicated legacy systems

• Business and IT agility

• Data – master data, content, and context

• IT talent gap

COMMON CHALLENGES

DIGITAL ORGANIZATION

OF THE FUTURE

Responsive & Intuitive

Infrastructure

Business Empowerment

Champion

Aggressive Capability

Enhancement

Value Delivery in Days &

Weeks

Amplified Solution Delivery

Enabler Of New Digital Disruptions


DES

IG

N

BU

ILD

RUN

IT OPERATING MODEL

DATA

APPLICATIONS

INFRASTRUCTURE

STRATEGY

BUSINESS

CASE

BENCH-

MARK

ROADMAP

ADMINNOVATION

FOUNDRY

REPLATFORM

REMEDIATE

NEXT-GEN

PLATFORMS

USER

EXPERIENCE

ARCHITECTURE

INTEGRATION

IT OPERATING MODEL• IT org design/strategy• DevOps/Agile transformation• Agile transformation

DATA• Data management strategy/implementation • Core analytics transformation• Analytics COE

APPLICATIONS• App/Code Refactoring• SAP S/4HANA• Oracle ERP Cloud• Hybrid Strategy

INFRASTRUCTURE • Cloud strategy/migration• Data center modernization• Infrastructure ops modernization

DIG

ITA

LEX

PER

IEN

CE

TR

AN

SFO

RM

ATIO

N

O&M

IT modernization stack


Approaches to core modernization

Replatform Remediate Revitalize Replace Retrench


Introduce differentiation that turns IT into an enabler, rather than simply a cost center. Getting the right governance and process in place is key.

Business

Product

Product enabling technology

Matu

rit

y

Time

Traditional IT

Business

Product

Two-speed IT

Business

Product

Right-Speed IT

Communication and collaboration models change as the IT operating model evolves.

Transforming your IT org and delivery speed

IT delivery now needs to

occur at varying speeds,

with very different change

cycles: what we define as

a Right-Speed operating

environment

Foundational IT

Digital IT

EnterpriseIT

Right-Speed Tech Functions

INTERACTIONS

CHANGE CYCLES & PROCESS


2 Create agileexecution

Learn to develop and try

ideas in short iterative

sprints with empowered

teams. Treat digital

initiatives like R&D.

1 Think exponentially

Set bold goals to achieve

factors of 10X impact.

Defeat incrementalism

within your organization.

Allow failure.

3 Shift theculture

Acquire and hire edge

teams to bring design

thinking, mobile, digital,

creative, and disruptive

ideas.

4 Protect the people

Insulate digital teams from

layers of bureaucracy,

policies, or other

compromises not found in

a start-up culture.

6 Find new ideas

Look for new ideas to solve

old industry issues and

customer problems. Don’t

be limited by the status

quo.

5 Put the customer first

Focus on the customer

experience. Make customer

value and delighting the

customer the #1 priority.

7 Use design thinking

Design is the new

differentiator in digital.

Diverse teams led by design

thinking will create an

amazing impact.

8 Focus on value

Don’t get distracted by all

the digital shiny objects.

Focus on revenue, key

metrics, and follow the

money.

Shift the mindset: eight great traits of a digital business

What we are learning fromsome leading enterprises


IT’s absolute imperative to change

Dem

ands o

n I

T

Time

Today



Enabling IT to support business transformation

Dem

ands o

n I

T

Time

Today



Define some organizational paradigms



reuse of access

reuse of services


build connections as needed

reuse of services

reuse of access




Define simple abstractions

reuse of services

reuse of access




Define simple abstractions

reuse of services

reuse of access

complexity should go down, not up



The application network

A seamless network of applications that…

… is organized around focused,well-defined units of value

… is recomposable

… emerges bottoms-upvia self-service

… where visibility, security andgovern-ability are built in

… bends, not breaks

… where each node adds value to the whole network


Enabling a new IT operating model

Production

Agile Development, SDLC, DevOps, Microservices, APIs

publish reusable assets

Central IT or LoB IT

Consumption

Community enablement, asset discovery, self-service

feedback and

metrics

LoB IT, SIs, App Dev


Every role in the business transforms

IT delivering projects → directing projects, ensure quality, reusability, security

architects architecting every project→ shaping patterns across projects

line of business

requesting projects → self-serving and moving fast to deliver

systems experts

needed for every project → make core data available once, self-service

Q and A


A partnership enabling truly transformative outcomes

42

Connecting business to possibility.

Contact us to learn more >


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Copyright © 2016 Deloitte Development LLC. All rights reserved.