BEYOND “IT” – OPPORTUNITIES FOR THE CHANNEL

BEYOND “IT” – OPPORTUNITIES FOR THE CHANNELHELPING YOUR BUSINESS CUSTOMERS IMPROVE THEIR AGILITY

JIM BURNS – TALKTALK BUSINESSIAN WATT - OVUM

Agenda Today

• The Research findings

• The importance of “Technology Agility” in today’s environment

• Agility Opportunities

Agility

Responsive to change; primed for opportunity; and resolute against risk.

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Enterprise and SME views on ICT agility

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Research sample – larger companies

The larger company sample comprised 235 companies with 200+ employees, half of which had 2000+ employees

Respondents were IT and other senior decision-makers with ICT purchase influence

Almost two-thirds of respondents were in ICT roles

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Research sample – smaller companies

The smaller company sample comprised 310 companies with 10-200 employees, half of which had 50+ employees

Respondents were IT and other senior decision-makers with ICT purchase influence

Almost half of respondents were in ICT roles

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LARGER COMPANIES

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A majority of respondents feel their organisation’s approach to agility is suboptimal

How would you describe your organisation's approach to agility?

Roughly a third of respondents felt their organisation struck the right balance on agility.

However, over 40% felt their organisation to be held back by the ICT technology currently used

A further 10% felt their organisation overlooked agility completely

10% felt their company’s ICT solution was over-engineered for agility, with a range of options rarely or never used

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Legacy systems coupled with budget constraints are seen as the main obstacles to agility

Which of the following factors do you believe currently restrains your

organisation from becoming more agile?

About a third of respondents regarded the main barriers to agility as budget/value issues and over-reliance on legacy systems resulting from under-investment

This view was particularly strong among IT decision makers in the largest companies

Skills gaps, lack of coordination between different departments, and compliance issues were also seen as significant barriers

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A majority of respondents are dissatisfied with the speed of their organisation’s responsiveness

How satisfied are you with the 'rhythm of change' and the time needed by IT to turn

'request to results' within your organisation?

There was a significant level of dissatisfaction with the organisations’ responsiveness (request to response time), with over two-thirds of respondents only somewhat satisfied or worse

Dissatisfaction was stronger in the largest companies

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Most respondents believe that allowing employees to contribute to strategic IT decisions is good for agility

'A business that empowers its employees

to provide input into strategic IT decisions can be more agile than one

that doesn't.'

The vast majority (90%) of respondents agreed or strongly agreed that broadening ICT decision-making to ‘front line’ roles could result in a more agile business

Although this view was most strongly held by non-IT respondents, it was also widely held even by IT decision-makers

Almost two-thirds of respondents felt that control should still be retained by the CIO

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Increased commitment of senior management and simplicity are seen as the main game changers for agility

The biggest game changer to your

organisation's ICT agility agenda would be...

Among the largest companies, about a third of respondents in the largest companies regarded increased commitment to ICT agility among senior management as most important in increasing ICT agility

Among other large companies, the emphasis was more on encouraging decision makers to embrace the ''less is more'' school of thought

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Managed services providers and systems integrators are seen as well-placed to support agility

Which type of ICT provider/partner/supplier/vendor do you believe can best support your

overall agility strategy?

About a quarter of respondents saw managed IT service providers as being best placed to support companies’ overall agility strategy, with systems integrators also seen as well-placed

Inevitably, in-house IT departments were seen as well-placed, particularly amongst IT decision makers

Few respondents saw telcos as best placed – this probably refers primarily to the incumbent telco i.e. BT

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In terms of restraints to agility, retailers tend to be more concerned about budgets; financial institutions more about compliance

Which of the following factors do you believe currently restrains your

organisation from becoming more agile?

Over 40% of respondents from large retailers were concerned about the impact of under-investment and/or the perception that IT departments deliver under par systems and applications

Almost a third of respondents from large financials believed compliance (defined as security, business continuity, regulatory and related concerns) were too big an obstacle for their business to be agile

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Dissatisfaction with the ‘rhythm of change’ is highest amongst financials

How satisfied are you with the 'rhythm of change' and the time needed by IT to turn

'request to results' within your organisation?

40% of respondents working for large financials were either dissatisfied or extremely dissatisfied with the time needed by IT to turn 'request to results’

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Operating stability is most important among financials

Maintaining operating stability is our biggest priority.

Over half of respondents working for larger financials ranked ‘maintaining operating stability’ as the most important aspect of the core ICT network

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SMALLER COMPANIES

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Almost two-thirds of SME respondents regard ICT agility as common sense/sound management practice

What does ICT agility mean to you?

62% of smaller company respondents believed ICT agility to represent sound business management

13% regarded ICT agility as a key source of competitive advantage

12% regarded ICT agility as representing investment underpinning the long-term validity of the business

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Half of respondents feel their organisation’s approach to agility is sub-optimal

How would you describe your organisation's approach to agility?

Roughly half of respondents felt their organisation struck the right balance on agility

But about a third felt their organisation was held back by the ICT technology currently used

A further 14% felt their organisation overlooked agility completely

6% felt their company’s ICT solution was over-engineered for agility, with a range of options rarely or never used

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Legacy systems coupled with budget constraints are seen as the main obstacles to agility

What restricts you most in moving towards

becoming more agile from a technology

perspective?

Almost half of respondents regarded the main barriers to agility as legacy technology resulting from cost constraints

This view was particularly strong among smaller companies

Poor IT literacy and lack of affordable choices were also seen as significant barriers particularly among smaller companies

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Affordable technology is seen as the main game changer for agility, particularly among smaller companies

The biggest game changer to your

organisation's ICT agility agenda would be...

Among smaller companies, about half of respondents regarded affordability as most important in increasing ICT agility

Among medium-sized companies, affordability was seen as most important by over a third of respondents

This supports the hypothesis that SMEs are only as agile as their technology choices allow them to be

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A majority of respondents agree that SMEs have to choose between paying too much and receiving too little

'Small and medium-sized businesses are limited to two choices:

Use costly and complex enterprise-grade solutions or affordable but feature-light consumer-grade technology. There is very little in-between.’

Almost two-thirds of respondents agreed that SMEs are limited to two choices: using costly and complex enterprise-grade solutions or affordable but feature-light consumer-grade technology.

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Agility and the SME

A rock and a hard place

Beta state of mind

Less is more

Agility and the Corporate/Enterprise

Less is more

Agility with an anchor

“C” Suite buy-in

Outside In, Inside Out

Being Agile allows you to cope with

change !

84.4%GROWTH IN MOBILE TRAFFIC

YEAR ON YEAR

1/3 OF TRAFFIC

Now VIDEO

44x

GROWTH IN NETWORK TRAFFIC IN NEXT 10 YEARS

Bandwidth Growth Sept 2012 – Sep 2013

Average traffic Sept 2012 385Gb Sep 2013 850Gb – 120% increase

Peak Traffic Sept 2012 415Gb Sep 2013 950Gb – 130% increase

Total network traffic on TalkTalk Next Generation Network

400

200

800

600

Performance

82% have experienced networkoutages that have had an impact on business

Business Continuity

64% have experiencedsome form of disruption/compromise due to bandwidth restrictions

Security & Mobility

53% say their networks either don’tpermit or don’t support BYOD

Monitoring & Maintenance

64% feel they can easily makechanges to their network where needed

Check out http://www.talktalkbusiness.co.uk/solutions/network/

5 Technology Agility Opportunities?

Tip 5 : Understand their long term strategy

Key considerations:How far out does their strategy go?How will their network underpin their future needs ?

BYOD

Collaboration

Flexible Working

Wi-Fi

On-Line

Mobile

Tip 4 : Speed Up their Internet

Key considerationsHow dependent are they on the internet & online?What will they & their own customers use it for in the future?

Tip 3 : Get them hosted

Key considerationsWhich applications will be improved in the cloud?How do you build the business case to make the move?What about the connectivity to support?

Tip 2 : SIP their voice

Key considerationsWhat are their voice requirements now and in the future?How can SIP support more flexibility and cost savings in their business?

Tip 1 : Position yourself as the right supplier and review their network ongoing

Key consideration:How do you make yourself the right supplier?

And of course, a bit about TalkTalk Business

Powering British Business

50 x Capacity increase

500,000+B2B Broadband lines

16,000+ Ethernet lines

3 Billion+mins/m VoIP

37

Next generation networkin

g

Data connectivity

Voice convergenc

e

Data, media & service hosting

THANK YOU

ANY QUESTIONS?