application management in a digital world

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including information storage and retrieval devices or systems, without prior written permission from Information Services Group, Inc.

Prashant Kelker, Global Lead – Digital Advisory Services

Preparing for a Digital JourneyApplication Management in a Digital World

™

© 2016 Information Services Group, Inc. All Rights Reserved 2

Applications are at the heart of digital transformation.

Demands for innovation clash with the current application portfolio.

Current RealityISG Research reveals:

►10% of Application Development in enterprise IT is spent on innovation.

►Mainframes will be around for a while.

►Shadow IT is growing more than 60% annually—encouraged by SaaS.

►App Spend is growing at 6 - 8% compounded annually.

DevOps

PaaS

Value-basedpricing

DigitalBusiness

Agile Dev

Software-defined

everything

SaaS

Templates

ContinuousDeployment

WebServices

IoT


IT is too slow!We need to be

digital and haveno time to

lose!

Let’s callSalesforce

directly – I hearthey are fast!

We need to bepart of the business!!

Get ready for agile,and release your

best teams.

But we are busywith our legacy

environment andconstantrequests.

We saved costs onApp Support. Nowhow do we tackle

App Development?

Can’t we getbetter at

RFPs for projects?We reinvent the

wheel everytime.

IT departments are struggling to reposition themselves.

Enterprise application development is feeling the pressure. It is not fast enough, not agile enough and miles away from digital.

Head ofMarketing Head of

PurchasingCIO

Head ofApplication

DevelopmentHead of Sourcing

Shadow IT is growing while IT is being left behind to manage the legacy.

CEO

Business conversation Sourcing conversationIT Conversation


Current views on application services are disconnected from reality.

The world of Application Management is getting verticalized.

Application Operations

Application Maintenance

Application Development

Fail fast – Digital Minimum Viable Product

Application Retire

Agile

DevOps

Digital Product

or ServiceSaaS

Micro services


Applications are not born equal.

Do we really have only one model to manage applications?

Source: Category Maturity Lifecycle by Geoffrey Moore

Organizations manage individual applications in one of two modes

Appl

icati

on U

sage

Gro

wth

Time

InnovationPortfolio

Indefinitely elastic middle period

A

BGrowthin usage

CMatureusage D

Decliningusage

End of life

E

Fault line!

Explore new application Exploit proven application

Differentiation Portfolio

Standardization Portfolio

Application adoption life cycle


Platforms are on the rise. Where does this leave applications?

Platform everywhereContext-Aware Computing

Users apps IoT machine intelligence deep learning context-aware digital services….

The rise of platformsCloud Computing

Millions of apps & microservices + cloud + social + big data billions of users

Distributed applicationsDistributed Computing Interconnected apps

networked users

Many applicationsStandalone Computing Many apps

many users

What happens to existing definitions of Application Management?


Let’s not even start talking about cybersecurity.

Thanks to microservices and digital interfaces, cybersecurity went from an “edge topic” to permeate the complete enterprise landscape.

Source: Tweet from @nicoleperlroth


Enterprises are trying to come out of local optimization in silos.

What happens when the development cycle runs 2,000 times a day?

Software Development

Lifecycle(Plan-build, agile,

Lean, Kanban, release planning …)

Operations(orchestrating,

monitoring, metering, KPIs,

analytics)

Product Portfolio Management

(Business case, requirements, target

architecture …)

Value delivery

Value Realization

Value Identification

TCO


Enterprises are trying to come out of local optimization in silos.

What happens when the development cycle runs 2,000 times a day?

The head of applications is trying to:►Move from local optimization to lifecycle thinking►Manage the application portfolio and footprint►Manage business ideas product retirement►Think “service“ instead of “application“►Decide whether to buy vs build vs use►Create flexible price per business service►Conduct A/B testing instead of a test factory►Build blue/green environments and canary testing►……


DevOps is paving the way for outcome-based contracting.

This has deep implications for all aspects of the client-provider relationship.

Source: TSIA B4B Model, ISG SaaS Research, ISG DevOps Model

Today DevOps Way

New IP from partners gives flexible release options.

Old IP throttles ability to release

Exposed inefficiencies and costs in value chain allow partners to introduce process innovation.

Splintered value chain with multiple partners

Reduced risk/performance delay allows contract partners to reduce risk buffer.

Increased risk through gap between event & reaction

Faster reaction times allow immediate opportunities to remediate mistakes.

Slow patch release & deployment

Increased ability to orchestrate, monitor and meter—partners’ products merge with their services.

Manual services seen as separate to products

The DevOps services world

starts to sound like

Software-as-a-Service


How fast can an organization take a concept to cash?

Lean / agile / waterfall = brownfield queue management

Requirements

Func Spec

Design Spec

Construct

Test

Rollout

…..

Project 1

Application XY Application YZ

Project 3ProviderA

ProviderB

Requirements

Func Spec

Design Spec

Provider

C

Construct Construct

Test Test

Project 2ProviderA

ProviderB

Requirements

Func Spec

Design Spec

Construct

Test

Rollout

…..

Project 3ProviderA

ProviderB

Requirements

Func Spec

How fast do I go from idea to production with my vendor?Production

Purchase Order


If multimodal IT is that easy, why are organizations finding it hard?

DevOps ideals are clashing with architectural reality on the ground.

Agility

Stability

Talking DevOps with enterprise IT without an agile architecture will not work.

• The problem does not lie only in culture, process and motivation.• Multi-Modal IT sounds good until you get into details.• Legacy architecture can bring the best intentions to a grinding halt.

Digital Innovation Applications

Digital Differentiation Applications

Applications of Record

Data exchange / Interface

Data exchange / Interface

Change 10 times a day

Change once a week

Change?


IT organizations are focusing on technology and service brokerage.

The future of internal IT in Application Management:

Sources: ISG Research, Disrupt IT – Ian Cox

Identify need/ opportunity

Design solution with partners

Select/source components

Create initial solution

Release solution iteratively

Review, refine

& enhance

Engagement: Develop and maintain internal and external relationships.

Advisory: Provide technology advice and consultancy.

Research: Investigate new technologies and trends, pilot/prototype potential solutions.

Standards: Define and manage standards for enterprise architecture, data, integration, security, etc.

Governance: Monitor and manage service and vendor performance.

Consultant/ analyst vendors

System integrators

Subscription of components / services

SaaSvendors ……..


Final Takeaways: Application Management Services need a reboot.

IT providers that go beyond the digital buzz to solve the real issues will seize the moment.

DevOps enabled outcome-based

services

Platform Management

Services

Life cycle sensitive services

Frameworks for Dev Queues Solutions for

verticalization


Thank you for joining us today. What’s on your mind?

Prashant KelkerGlobal Lead Digital Advisory Services

@prkelker

[email protected]

http://www.isg-one.com/connect/

http://www.isg-one.com/connect/

www.isg-one.com

Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 900 employees and operates in 21 countries.

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application management in a digital world

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