the cio in 2020: driving innovation and growth - phil carter idc
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The CIO in 2020: Driving Innovation and Growth
Philip Carter
Vice President, IDC European Research
Presentation at the Oracle Iberia CIO Innovation Day,
1st October 2014, Oracle Openworld San Francisco
68% of Iberian organizations
have gone through
a major IT re-organization
in the last 12 months
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IDC Spanish IT Executive Survey. April 2014, n=199
52% of Iberian
organizations have
created a new group
focused on
innovation
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IDC Spanish IT Executive Survey. April 2014, n=199
In 67% of Iberian
organizations,
the business
has become more
involved in IT strategy
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IDC Spanish IT Executive Survey. April 2014, n=199
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Application Modernisation
Legacy Outsourcing Contracts
Data Center Strategies
3rd Platform of IT Innovation & Growth
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ICT Innovation
1985-2005
ICT Innovation
2005-2020+
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The 3rd Platform is a Business Platform that is Transforming Organizations
The transformation of products and services
The transformation of workforce
The transformation of customer relationships
The transformation of business models
Governance, Risk & Compliance
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In 2013, Domino’s Pizza sold £104 million worth of pizza via its mobile platform in the UK and Ireland alone
Managed
Business Innovation
Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Opportunistic
2nd Platform IT
Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Ad Hoc
Core IT
No effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform IT
Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
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.
Opportunistic
2nd Platform IT
Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Managed
Business Innovation
Effective 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 IT
No effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform IT
Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
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.
Transforming to a Business Innovation IT OrgIDC’s Enterprise IT Transformation Maturity Model
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Managed
Business Innovation
Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Opportunistic
2nd Platform IT
Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Ad Hoc
Core IT
No effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform IT
Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
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.
15%
BusinessInnovation
6%
Core IT
4%
BusinessTransformation
Are You Transforming Your IT Org Fast Enough?
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67% of Organizations are Operating at a2nd Platform IT or 3rd Platform IT Transformational Stage
40%
2nd PlatformIT
27%
3rd PlatformIT
Source: IDC's Enterprise IT Transformation MaturityScape Benchmark Study, August, 2014. n-156
Move outside your process comfort zone
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
1 2 3
Accelerating Transformation Requires You to…
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48
Kaiser Permanente
Develop a Multi-Pronged Approach
Source: www.kaiserpermanente.org.
EnterpriseArchitecture #1 Hardest to Hire
How difficult is it to hire suitable candidates?
The 3rd Platform will Create a Skills GapThe Most Difficult IT Positions to Staff
Source: IDC CIO Summit, April, 2014.
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Risk Management Contracts
Run
Build
Buy
Short Term
Transactional Model
2nd Platform Vendor Sourcing Models
Trusted Relationship Contracts
Data Driven Management
Integrate
Acquire Capability
Long Term
Relationship Model
3rd Platform Vendor Sourcing Models
3rd Platform Requires a Different Sourcing Model
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Move outside your process comfort zone
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
1 2 3
Accelerating Transformation Requires You to…
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Urgency, Speed, Time to Market =
The Next Wave of Shadow IT
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%6According to ITPercent of Technology
Spending that is Shadow
Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014
According to BusinessPercent of Technology
Spending that is Shadow
%6 %6IAccording to ITPercent of Technology
Spending that is Shadow
6
Shadow IT: What You Don’t Know Will Hurt You
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How you communicate with the business is just as important as
what you communicate
Source: Magna International
Selling Your Services
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Move outside your process comfort zone
Deliver technology the way the business wants
Cultivate tomorrow’s IT talent today
1 2 3
Accelerating Transformation Requires You to…
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IT-enabled Services
Transforming Business Processes
IT-enabled Business Processes
Automating Business Processes
IT-enabled Products
Creating IT-enabled Products
IT-enabled Products is the End Game
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62%
IT-enabled Products
Creating IT-enabled Products
IT-enabled Services
Transforming Business Processes
IT-enabled Business Processes
Automating Business Processes
18%20%
Moving Outside Your Comfort Zone
Source: IDC 2014
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Best Practices
Need to Evolve
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This is what continuous improvement can get you
Product Enhancements
Innovation
Continuous Improvement Versus Innovation
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The transformation of products and services
The transformation of workforce
The transformation of customer relationships
The transformation of business models
Think innovatively. Think new trajectories.
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