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Accelerating Transformation Inside the IT Organization

Accelerating Transformation Inside the IT Organization. Meredith Whalen Senior Vice President, IT Executive Industry and Financial Research IDC. The 3rd Platform is a Business Platform. Innovative Industry Solutions.

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Accelerating Transformation Inside the IT Organization

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  1. Accelerating Transformation Inside the IT Organization Meredith Whalen Senior Vice President, IT Executive Industry and Financial ResearchIDC

  2. The 3rd Platform is a Business Platform Innovative Industry Solutions 1/3rd of leading businesses will be disrupted by 3rd platform competitors. • The 3rd Platform allows businesses to: • Build deeper relationships with their customers • Innovatearound new products and services • Improve their own internal operations

  3. Customer Relationship Transformation Workforce Transformation Business Transformation

  4. Transforming to a Business Innovation IT Org Optimized Optimized IDC’s Enterprise IT Transformation Maturity Model Managed Managed Business Transformation Highly 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. Business Transformation Highly 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. Repeatable Repeatable Business Innovation Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform Business Innovation Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform Opportunistic Opportunistic 3rd Platform IT Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption 3rd Platform IT Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption Ad Hoc Ad Hoc 2nd Platform IT Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption 2nd Platform IT Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption Core IT No effort between business and IT to coordinate or incorporate 3rd Platform technology Core IT No effort between business and IT to coordinate or incorporate 3rd Platform technology Source: IDC, Enterprise IT Transformation Maturity Model, 2014

  5. Transforming the IT Organization is Multi-Faceted Business Innovation IT 2nd Platform IT IT is a Business Defining Investment Strategy & Innovation Strategy & Innovation IT Talent Supports Business Innovation TalentManagement TalentManagement Data Driven Performance Management VendorManagement VendorManagement Improved Business Decision Making Enterprise Architecture Enterprise Architecture Technology Delivered as the Business Wants It Service Management Service Management Source: IDC, Enterprise IT Transformation Maturity Model, 2014

  6. Are You Transforming Your IT Org Fast Enough? Optimized Managed 42% Business Transformation Highly 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. Repeatable 32% Business Innovation Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform Opportunistic 3rd Platform IT Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption Ad Hoc 2nd Platform IT Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption 15% Core IT No effort between business and IT to coordinate or incorporate 3rd Platform technology 6% 5% Core IT 2nd PlatformIT 3rd PlatformIT BusinessInnovation BusinessTransformation 74% of Organizations are Operating at a2nd Platform IT or 3rd Platform IT Transformational Stage Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May 2014. n=225

  7. Accelerating Transformation Requires You to… 1 2 3 4 Move outside your process comfort zone Cultivate tomorrow’s IT talent today Deliver technology the way the business wants Manage suppliers with a data driven performance approach

  8. The CMO’s Agenda 2014, 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

  9. IT-enabled Products is the End Game IT-enabled Business Processes Automating Business Processes • IT-enabled • Services • Transforming Business Processes • IT-enabled • Products • Creating IT-enabled Products

  10. Moving Outside Your Comfort Zone 62% • 20% • 18% IT-enabled Business Processes Automating Business Processes • IT-enabled • Services • Transforming Business Processes • IT-enabled • Products • Creating IT-enabled Products Source: IDC CIO Summit, April, 2014.

  11. Accelerating Transformation Requires You to… 1 2 3 4 Move outside your process comfort zone Cultivate tomorrow’s IT talent today Deliver technology the way the business wants Manage suppliers with a data driven performance approach

  12. The 3rd Platform will Create a Skills Gap The 10 Most Difficult IT Positions to Staff For each role, indicate how difficult it is to hire suitable candidates MoreDifficultto Hire Easierto Hire EnterpriseArchitecture BusinessIntelligence& Analytics ITManagementandExecutives Security MobileDevelopment SocialDevelopers SocialCommunityAdmins DataArchitecture,Managementand Storage ServiceManagement ProjectManagement Source: IDC’s 2013 IT Staffing Survey – Jun 2013 n=131

  13. This is Who You are Competing Against

  14. Build an IT Workforce… …Based on Your Future Needs and Future Workforce Genentech Kaiser Permanente Bank of America Source: www.Genentech.com; www.kaiserpermanente.org.

  15. Accelerating Transformation Requires You to… 1 2 3 4 Move outside your process comfort zone Cultivate tomorrow’s IT talent today Deliver technology the way the business wants Manage suppliers with a data driven performance approach

  16. Shadow IT: What You Don’t Know Will Hurt You 6 I 6 6 6 % % % According to IT Percent of Technology Spending that is Shadow According to IT Percent of Technology Spending that is Shadow According to Business Percent of Technology Spending that is Shadow Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014

  17. Selling Your Services How you communicate with the business is just as important as what you communicate Source: Magna International

  18. Accelerating Transformation Requires You to… 1 2 3 4 Move outside your process comfort zone Cultivate tomorrow’s IT talent today Deliver technology the way the business wants Manage suppliers with a data driven performance approach

  19. 3rd Platform Requires A Different Sourcing Model 80% By 2015, IDC predicts 80% of large firms will use outsourcing 2nd Platform Vendor Sourcing Models 3rd Platform Vendor Sourcing Models Transactional Model Relationship Model Short Term Long Term Buy Acquire Capability Build Integrate Run Data Driven Management Risk Management Contracts Trusted Relationship Contracts

  20. Data Driven Performance Management • Sellers of technology and the buyers of technology are both customers of the vendor and sourcing management office. • —SenaKwawu, SVP, State Street Vendor Management and Sourcing Office

  21. Are You Asking the Right Questions? Your VMSO Should Provide You with the Following Insight Can I survive a compliance software audit? Who are the emerging suppliers I should be evaluating? What exposure do I have with my existing suppliers? How are my suppliers performing against my business goals?

  22. Continuous Improvement Versus Innovation This is what continuous improvement can get you Innovation Product Enhancements

  23. Partnerships Customer Relationship Transformation Talent Workforce Transformation IT Services Business Transformation Think innovatively. Think new trajectories.

  24. Meredith Whalen Senior Vice President, IT Executive, Industry and Financial Research mwhalen@idc.com @meredithwhalen

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