Accelerating Transformation Inside the IT Organization
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Accelerating Transformation Inside the IT Organization
Meredith WhalenSenior Vice President, IT Executive
Industry and Financial ResearchIDC
The 3rd Platform is a Business Platform
Innovative Industry Solutions1/3rd of leading businesses will be disrupted by 3rd platform competitors.
The 3rd Platform allows businesses to:• Build deeper relationships with
their customers• Innovate around new products and
services• Improve their own internal
operations
BusinessTransformation
WorkforceTransformation
Customer Relationship
Transformation
Transforming to a Business Innovation IT OrgIDC’s Enterprise IT Transformation Maturity Model
Managed
Business InnovationEffective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Opportunistic
2nd Platform ITUncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Ad Hoc
Core ITNo effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform ITCoordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
Business TransformationHighly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.
Opportunistic
2nd Platform ITUncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Managed
Business InnovationEffective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
Ad Hoc
Core ITNo effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform ITCoordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
Business TransformationHighly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.
Transforming the IT Organization is Multi-Faceted
2nd Platform ITBusiness
Innovation IT
IT is a Business Defining Investment Strategy & Innovation
Strategy & Innovation
IT Talent Supports Business InnovationTalent
Management
TalentManagement
Data Driven Performance ManagementVendorManagement
VendorManagement
Technology Delivered as the Business Wants ItService Management
Service Management
Improved Business Decision MakingEnterprise
ArchitectureEnterprise
Architecture
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
Are You Transforming Your IT Org Fast Enough?
Managed
Business InnovationEffective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Opportunistic
2nd Platform ITUncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Ad Hoc
Core ITNo effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform ITCoordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
Business TransformationHighly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.
74% of Organizations are Operating at a2nd Platform IT or 3rd Platform IT Transformational Stage
32%
2nd PlatformIT
42%
3rd PlatformIT
15%
BusinessInnovation
6%Core IT
5%Business
Transformation
Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May 2014. n=225
Manage suppliers with a data driven performance approach
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
Accelerating Transformation Requires You to…
Move outside your process comfort zone
1 2 3 4
The CMO’s Agenda2014, Top Drivers of Technology Investments within Marketing
Source: IDC's 2014 Line of Business Survey – May 2014. Question: What business initiatives will technology address this year? n=75 product management
Expand operations nationally
Partner / business ecosystem productivity
Expand operations globally
Support Mergers, acquisition or sale of a business unit
New sales/channel expansion or capabilities
Employee productivity / training
Branding/awareness building
Customer acquisition and retention initiatives
Reduce costs and streamline operations
Increase revenue
0% 10% 20% 30% 40% 50% 60%
IT-enabled Products is the End Game
IT-enabled Services
Transforming Business Processes
IT-enabled Business Processes
Automating Business Processes
IT-enabled Products
Creating IT-enabled Products
62%
Moving Outside Your Comfort Zone
IT-enabled Products
Creating IT-enabled Products
IT-enabled Services
Transforming Business Processes
IT-enabled Business Processes
Automating Business Processes
18%20%
Source: IDC CIO Summit, April, 2014.
Accelerating Transformation Requires You to…
Manage suppliers with a data driven performance approach
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
Move outside your process comfort zone
1 2 3 4
The 3rd Platform will Create a Skills GapThe 10 Most Difficult IT Positions to Staff
Source: IDC’s 2013 IT Staffing Survey – Jun 2013 n=131
EnterpriseArchitecture
BusinessIntelligence& Analytics
ITManagement
andExecutives
Security MobileDevelopment
SocialDevelopers
SocialCommunity
Admins
DataArchitecture,Managementand Storage
ServiceManagement
ProjectManagement
For each role, indicate how difficult it is to hire suitable candidates
MoreDifficultto Hire
Easierto Hire
This is Who You are Competing Against
Kaiser Permanente GenentechBank of America
Build an IT Workforce… …Based on Your Future Needs and Future Workforce
Source: www.Genentech.com; www.kaiserpermanente.org.
Accelerating Transformation Requires You to…
Manage suppliers with a data driven performance approach
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
Move outside your process comfort zone
1 2 3 4
%6According to IT
Percent of Technology Spending that is Shadow
Shadow IT: What You Don’t Know Will Hurt You
Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014
According to Business
Percent of Technology Spending that is Shadow
%6 %6IAccording to IT
Percent of Technology Spending that is Shadow
6
Selling Your Services
How you communicate with the business is just as important as what you communicate
Source: Magna International
Accelerating Transformation Requires You to…
Manage suppliers with a data driven performance approach
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
Move outside your process comfort zone
1 2 3 4
3rd Platform Requires A Different Sourcing Model
Risk Management Contracts Run
BuildBuy
Short TermTransactional Model
2nd Platform Vendor Sourcing Models
Trusted Relationship Contracts Data Driven Management
IntegrateAcquire Capability
Long TermRelationship Model
3rd Platform Vendor Sourcing Models
80%By 2015, IDC predicts 80% of large firms will use outsourcing
Data Driven Performance Management
Sellers of technology and the buyers of technology are both customers of the vendor and sourcing management office.
—Sena Kwawu, SVP, State Street Vendor Management and Sourcing Office
Are You Asking the Right Questions?Your VMSO Should Provide You with the Following Insight
Can I survive a compliance
software audit?
What exposure do I have with my existing suppliers?
How are my suppliers performing against my
business goals?
Who are the emerging suppliers I should be
evaluating?
Continuous Improvement Versus Innovation
This is what continuous improvement can get you
Product Enhancements
Innovation
Think innovatively. Think new trajectories.
IT ServicesTalentPartnerships BusinessTransformation
WorkforceTransformation
Customer Relationship
Transformation
Meredith WhalenSenior Vice President, IT Executive, Industry and Financial Researchmwhalen@idc.com
@meredithwhalen
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