Accelerating Transformation Inside the IT Organization

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 [email protected]

@meredithwhalen