Presentation Transcript

1. The Future of IT Services

   Bryan Britz Managing Vice President June 2014
2. Torrential Changes and a Confidence Crisis will Reshape Service Provider Landscape 70% "My business and its IT organization are being engulfed by a torrent of digital opportunities. We cannot respond in a timely fashion, and this threatens the success of the business and the credibility of the IT organization." CIOs will change their technology and sourcing relationships in the next 2 to 3 years for a variety of reasons. 46% 51% Agree Need to work with new categories of partners, e.g.: Mobility Cloud Digital Agency Source: Gartner December 2013) n = 2,339 Big Data Analytics Social Taming the Digital Dragon: The 2014 CIO Agenda (G2643926)
3. The 3rd Era of Enterprise IT IT Craftsmanship IT Industrialization Digitalization
4. Top Trends Privacy and Security Awareness Cloud Cognitive Automation Anti-Globalization Policies and Protectionism Internet of Things Gen Y Leaders Analytics Economic Fluctuations and Rise of Emerged Emerging Markets Mobile Social Portfolio Rationalization Business Buying Center Shift Just-In-Time Service Supply Chain Ecosystems Crowd Sourcing Consumerization Digital Business Transformation Reducing Labor Arbitrage Advantage Business Outcome-Based Value and Pricing Models Disruptive New Competitor Types Magnitude of impact Re-Insourcing 3
5. New World Providers will Win Industrialized Outcome-based Consumption NewWorld CapabilitiesAccess Social Mobile Digital Business Transformation Consumerization Information Unexpected Sources of Growth Cloud Contracted for Effort OldWorld Dedicated Assets Labor-Based
6. CIO’s Top Technology Priorities in 2014 Continue to Bridge Old and New Worlds Ranking Based on How Many CIOs Cited Each as a Top-Three New Spending Priority for 2014 Renovate the Core Exploitthe New Source: Gartner December 2013) n = 2,339 Taming the Digital Dragon: The 2014 CIO Agenda (G2643926) 15
7. Bi-Modal IT Emerges Agile development Innovative partners Lightweight "Just good enough" governance Managed risk Multidisciplinary teams Waterfall development Known vendors Strong governance Minimized risk Technology teams Stuck in the middle "Fit for no one" Traditional Mode Nonlinear Mode 27
8. Service Providers Must Expand their Sphere of Influence and Impact 38% of IT Spending is Decentralized; 62% is Centralized Source: Gartner (June 2013) n = 1,523 IT Metrics: A Critical Evaluation of Decentralized IT Spending and Digital Enterprise Readiness (G2529215) 7
9. Physical “things” exploding growth into 2020 Installed “things” by 2020 Assumption: The component cost of IoT-enabling consumer things will approach $1, and "ghost" devices with unused connectivity will be common. Internet of Things 30B Personal Devices 7.3B
10. Digital Business Scenario: The Car Crash 6. Estimates for repairs sent to smart phone from different companies. Negotiations ensue to get best price and delivery. 8. Smart phone notifies next of kin via text messages and Facebook. 1.Smart Phone detects sudden deceleration. 9. Smart phone sends information portfolio to law firms for assessment. 2. Smart phone interrogates passenger clothing for vital signs. 7. Meanwhile, smartphone interrogates nearby video cameras to collect digital evidence of the car crash as it occurred. 3. Smart phone sends information to medical emergency first responders and opens up communications lines for survivors.. 4. Smart phone interrogates vehicle systems for damage report. 5. Damage report sent to fire, police, towing, and insurance companies.
11. Service Provider Approaches to Digital Business Digitization through technology Nexus of forces applied to add value Evolution of “Renovate the Core” from a technology perspective Run to Digital Transformation Evolutionary approach to business transformation Renovate the core to achieve business operational improvement to improve profitability of business operations Advise to Digital Transformation Business strategy transformational approach to Digital Business Top down redesign of entire functional areas to achieve competitive business differentiation and grow revenue 10
12. Digital Use of "Crowds" as an "Accessory" By 2017, over half of consumer goods manufacturers will employ crowdsourcing to achieve fully 75% of their consumer innovation and R&D capabilities. Consumer goods companies in touch with customers Better crowdsourcing technology Affinity for culture and style of the consumer Increase in crowdsourcing applications in online consumer goods platforms in 2014 Crowdsourced revenue boost Flags Why? What to do? CIOs must focus on building the right culture to support bottom-up contribution. Without it — and without employees who care — these initiatives are likely to fail. Authors: Don Scheibenreif and Michael Shanler
13. Digitalization's Effect on Labor Grows By 2020, the labor reduction effect of digitalization will cause social unrest and a quest for new economic models in several mature economies. Another "Occupy Wall Street" type of movement by the end of 2014 Bartering-based systems and voluntary roles rise by 2015 in areas such as patient care. Digitization <> more jobs Kodak's 130,000 people versus Instagram's 13 Lower labor Content Lower pay per hour Flags Why? What to do? CEOs and boards must avoid using old economic models in the new digital reality. Authors: Gregor Petri
14. Service Industrialization Meets Consumerization Added Benefits Enablement 2 3 5 7 Pm Au Ai Pe Process Maturity Automation Advanced Insights Personalization Cost Reduction Enablement
15. Prevention-Based Mass Configurability YourNeeds 2 3 5 7 Pm Au Ai Pe ? ? ? ? ? ? Process Maturity Automation Advanced Insights Personalization ? ? ? ? ? ? ? ? ? ? ? OthersLike You May WeSuggest
16. The Next “Next Gen” of Managed and ProfessionalServices Next Generation Industrialization Future Advancements in the Next, Next Gen 2 3 11 17 Pm Au Dp Sb Process Maturity Automation Dynamic Pricing Sub-branding 5 7 13 19 Ai Pe Jt Mt 2008 Advanced Insights Personalization Just in Time Supply Micro-transactions 2013 2018 2025