New IT Operating Models

1. New IT Operating Models Edward G. Happ Global CIO March 2014

2. Traditional IT Operating Model • “Plan/Build/Run is a mantra espoused by IT research firms as the ideal operating model for successful IT shops.” --Mark Settle, chief information officer at BMC Software* • *Mark Settle, “Broker/Integrate/Orchestrate: The New IT Operating Model,” Forbes, 14 May 2012. • http://www.forbes.com/sites/ciocentral/2012/05/14/brokerintegrateorchestrate-the-new-it-operating-model/

3. Control of the IT Stack has Changed • “Historically, IT has not only controlled the hardware and software in the data center, but also the delivery channels for connecting end users to data center resources.” --Mark Settle

4. Innovation at the margins Historical IT – all components provided Local innovation is more likely and sustainable at the outer layers of IT delivery Current Era – Users bring their own devices and apps Future Era – Users bring their own networks Standard core – it is unlikely users will have or should have their own Finance, HR, Supply Chain, and Legal applications and data External crowd-sourced data is pushing the internal data paradigm

5. Legacy Competencies • “Employing a Plan/Build/Run model to deploy critical business systems in the 21st century is a little like employing horse cavalry units to fight battles in World War II. These legacy competencies are simply not relevant in a world of virtualized business applications, ubiquitous personal devices and infrastructure-as-a-service.” --Mark Settle

6. A New IT Operating Model? • “Broker/Integrate/Orchestrate” • Brokering will replace Planning.“In the new world, software and infrastructure service vendors will offer preassembled capabilities that can be inspected or tested at the convenience of the planning team.”

7. A New IT Operating Model? • “Broker/Integrate/Orchestrate” • Integrate will replace Build. “Progressive IT shops will adopt cellular manufacturing models in which security engineers, data warehousing specialists and SOA technologists work in concert to integrate new SaaS and IaaS capabilities into the fabric of a company’s business systems portfolio.”

8. A New IT Operating Model? • “Broker/Integrate/Orchestrate” • Orchestrate will replace Run.“Successful IT shops of the future won’t have as many internal assets to monitor, so they will be forced to do a better job of monitoring end user experience (which, ironically, is what end users have wanted them doing all along!)”

9. Sounds Like the NSKD Secretariat Model • Broker > Mediate/Coordinate • Integrate > Consult/Advise • Orchestrate > Convene/Assure/Amplify

10. How do we organize to deliver this shift? • IF… • Plan > Broker • Build > Integrate • Run > Orchestrate • THEN… • What does the IT organization look like? • Does the ISops, ISapps, ISplan, SDesk model make sense?

11. “The Future is Already Here, It’s Just Unevenly Distributed” –William Gibson • “Many small start-up companies have no internal data centers, licensed software or custom-built applications. They rely almost exclusively on SaaS tools and infrastructure providers such as Amazon.com and Rackspace to support their daily business operations and product development activities.

12. A “Think Week” Question • “If we started with a clean slate of no technology, what would we create that would be new or different, and what would we do the same? How far could we get for free” • Use what is readily available • Rent all infrastructure and SaaS apps so that we pay for what we need when we need it • Take advantage of world class technology managed by organizations whose business it is to do so. • Cut customization 80% • modify business processes to match apps with best practices from a broad customer base; • reduce app size to specific functions. • Focus on 80% solutions instead of 98% solutions