dominando o 'dragão digital' | encontro de cios dti e sucesu minas 27/02/2014

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Dave Aron

Graham Waller

Taming the Digital Dragon The 2014 CIO Agenda

Informed by Gartner's Annual CIO Survey

2,339 chief information officers

From 77 countries

Representing more than $300 billion of IT spending

150 Gartner analysts and executive partners helped shape

the report

2

Percentage of Respondents by Country

Asia/Pac

17%

EMEA

39%

NA

38%

LA

6%

World:

2,339 Respondents

77 Countries

U.S.: 34%

Canada: 4%

U.K.: 7%

Australia: 5%

Brazil: 4%

Japan: 4%

Italy: 3%

France: 3%

Benelux: 4%

Germany: 3%

Switz.: 2%

Nordics: 6%

Africa: 2%

India: 2% Iberia: 1%

China: 3%

Mexico: 1%

Survey Respondents by Geography

39

The Digital Tsunami Is Upon Us "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."

"The IT organization has the right skills and capabilities in place to meet upcoming

challenges."

4

3D Printing Defined

Stratasys/Solidscape Example 3D Systems Project Example Cross-section of bioprinted human liver tissue, 2013 Cool Vendor Organovo

http://www.rhinojewel.com/en/rapid.php

Taming the Digital Dragon: The 2014 CIO Agenda

1. Welcome to the Third Era of Enterprise IT

2. Create Powerful Digital Leadership

3. Renovate the Core

4. Build Bimodal Capability

5. Craft Your Digital Legacy

3

We are here

We Are Entering a Third Era of Enterprise IT

Focus Technology Processes Business Models

Capabilities Programming, system

management

IT management, service

management Digital leadership

Engagement Isolated, disengaged

internally and externally

Treat colleagues as

customers, unengaged with

external customers

Treat colleagues as partners,

engage external customers

Outputs &

Outcomes Sporadic automation and

innovation, frequent issues

Services & solutions,

efficiency & effectiveness

Digital business innovation,

new types of value

IT Craftsmanship IT Industrialization Digitalization

6

We Need a Three-Part Response to Tame the Digital Dragon

Digitalization IT Industrialization

7


Create powerful

digital leadership

• Clear digital roles

• Savvy digital executives

• Digital vision & digital legacy


7


Renovate the core of

IT

Create powerful

digital leadership




• Information

• Cloud/Web-scale infrastructure

• Talent

• Sourcing


7


Renovate the core of

IT

Create powerful

digital leadership

Build bimodal capability




• Information

• Cloud/Web-scale infrastructure

• Talent

• Sourcing

• Agile development

• Multidisciplinary teams

• Innovative partnerships

• New risk/speed trade-offs


7







8

The Chief Digital Officer Role Is on the Rise

Asia/Pac:

11%

No. Am.:

5%

EMEA:

6%

Lat. Am.:

7%

Industry %CDOs

Media 21%

Communications 13%

Services 11%

Banking 10%

Insurance 9%

Retail 9%

Healthcare Providers 5%

Government 5%

Manufacturing & Natural Resources 5%

Wholesale Trade 3%

Education 3%

Transportation 4%

Utilities 1%

"If the CEO asks 'Who is in charge of digital?' and gets multiple responses, then there is no digital leadership."

Baron Concors, CIO of Yum Restaurants International, former CIO and CDO of Pizza Hut

Gartner predicts a tripling of the CDO role by 2015.

Myth: The CDO role is not limited to media or information-intensive industries.

9

The Scope of the CDO's Role Is Broadening, Too

CDO

CEO CMO CIO Other

CDO's Reporting Line

42% 22% 16% 20%

CDO's Team CDO is sole

advisor

Small team of analysts

Resources to pilot

CDO

Substantial devt.

Develop and run

9%

23%

15%

27%

26%

CDO

CDO's Background

Bus. strategy

IT

Marketing

Combination

Other

Don't know

15%

19%

20%

36%

7%

3%

CDO-CIO Integration

Neutral/

Unclear

35% Clear

65%

Mythbuster: The CDO is not, in general, a lone advisor. Most CDOs have a team.

10

A Digitally Savvy CEO Gives You Wings

CIO POWER

CIO POWER

IT EFFECT.

IT EFFECT.

USER SAT.

USER SAT.

BUS.

PERF. BUS.

PERF.

8% of Enterprises Have CEOs Whose Digital Savvy Is Very Weak

7% of Enterprises Have CEOs Whose Digital Savvy Is Strong

Growth Focus

"We believe it's important to embed digital in the role of every key executive."

Willem Eelman, global CIO, Unilever

Growth Focus

12

Look to Close Digital Talent Gaps

Talent Area Description

Digital Design The ability to design compelling customer experiences in a digital

context, including consideration of the capabilities of mobile and

other devices, with a flavor of simplicity rather than complexity

Data Science The ability to analyze large volumes of data; to mine social,

multimedia and unstructured data; and to conduct near-real-time

data analysis

Digital

Anthropology

The ability to understand how information and technology interact

with human behaviors

Startup/SMB

Management

The ability of larger and more mature organizations to work with

much smaller and less mature organizations for mutual benefit

Agile

Development

The ability to develop solutions in a much more iterative and

collaborative manner

"Digital is different, and I think that less than a quarter of my team is ready and able to make the transition."

Anonymous CIO 25

Build Enterprise Digital Savvy From the C-Suite Down

"[Our leadership] have set it as a goal and objective for everyone in the company to become digitally enabled."

Bill Ruh, vice president of Global Software Center, GE 13






14


Technology Priorities Represent Two Complementary Goals

Ranking Based on How Many CIOs Cited Each as a Top-Three New Spending Priority for 2014

15

Renovate the Core

Increased adoption of public and

private IaaS, PaaS, SaaS,

BPaaS

Use of SMBs/

startups; new

categories of partners,

e.g., mobile, design,

analytics

More federated ERP, multi-

enterprise, cloud components,

mobile support, embedded analytics

Hybrid Cloud Volume/velocity/

variety; in-memory; advanced analytics

16

The Future Still Looks Increasingly Cloudy

When will more than half of

your business run on public*

cloud infrastructure +

SaaS?

2011: 1,993 respondents; 2014: 2,252 respondents

*2011 survey asked about cloud; in 2014, specified public cloud

% of 2011 Survey

Respondents

% of 2014 Survey

Respondents

In 2011 and 2014, 23% said

"Never"

19

The CIO Golden Rules for Approaching Public Cloud

I. Whatever your plans, test public cloud quickly and safely to dispel myths; also, elevate executives' and the IT staff's understanding, as well as the internal dialogue.

II. Manage internal and external expectations and concerns: Focus on issues and concerns around performance, control and innovation.

III. Understand and communicate your primary goal: Is it innovation, agility, cost or something else?

IV. Consider public cloud for multiple uses: long-term cost-effective agile capacity, interim capacity during periods of change, and as a tool to test.

V. Plan for a hybrid architecture based on economics, performance/agility needs and regulatory/security/privacy considerations.

VI. Don't get stuck with websites only; don't discount mission-critical systems on the public cloud out of hand.

VII. Ensure that you have the right partner: Focus on reliability, configurability, granularity of pricing and availability of tools.

VIII. Retain the ability to exit a cloud partnership — gracefully — with your data intact.

20

Sourcing: Time for Change

70% will change their technology and sourcing relationships in the next 2 to 3 years for a variety of reasons:

"IT sourcing

strategies must

be structured to

enhance IT

agility and

address the

needs of digital

businesses.

Organizations

that don't adapt

their strategies,

and the

competencies

required to

execute them

effectively, will

fail to achieve

the value

opportunities

presented by a

highly digitalized

future."

Ian Marriott,

Gartner

Research VP

57%

Price/

Price Structure

55%

Service

Quality

52%

Flexibility

46%

Ability to

Partner

45%

Innovation

28%

Scale

46% need to work with new categories of partners, e.g.: Mobility

Big Data

Cloud

Analytics

Digital Agency

Social 21

CIOs Do Not Feel That the Innovation Will Come From the Usual Suspects

Gartner annual CIO Survey, 2013; percent of respondents mentioning each brand; 1,305 respondents (last 10 years)/1,255 respondents (next 10 years)

Oth

er

Which technology company has been most influential over the past 10 years?

Which will be in the next 10 years?

22

The CIO Golden Rules for Working With Smaller Partners

I. Build a competency center around working with smaller companies; recognize that it is much more than a procurement exercise.

II. Consider a broad range of partners: startups, incubators, universities, crowdsourcing, local SMBs, citizen development.

III. Design the relationship for win-win: Don't try to push smaller companies into accepting the minimum price/maximum delivery — they might say yes because they want to work with you, but it might kill them.

IV. Keep the legals light and focused on intellectual property. Don't focus on the liabilities if they fail.

V. Expect to put a project management/delivery wrapper around small partners — let them focus on and bring what they are good at.

VI. Think about the partner's cash flow as well as its profit; you may need to adapt your payment processes (lower latency, higher frequency).

VII. Develop the ability to do quick, lightweight audits of potential small partners. (Neither you nor they can afford to do slow, heavy ones.) Focus on the people and their capabilities.

VIII. Make every effort not to constrain partners in terms of methodology, tools or approach. Focus on the outputs.

IX. Don't try to lock small partners into working only with you. Manage intellectual property issues in conventional ways.

24






26


Bimodal IT Offers a Way to Get Unstuck

Waterfall development

Known vendors

Strong governance

Minimized risk

Technology teams

Traditional Mode Nonlinear Mode

Myth: The second mode of IT is not only applicable where speed is needed, it is not only applicable for experiments, and it is not only applicable for non-mission-critical initiatives.

Stuck in the middle

"Fit for no one"

"The reality is that

you do have to

operate at two

speeds, and some

of that you do by

creating dedicated

teams for each.

Focusing on the

big systems,

making them run

smooth, while at

the same time

having disrupters

to innovate,

together with

marketing and the

customer,

exploiting digital."

Willem Eelman,

global CIO,

Unilever

Agile dev.

Small/ innovative partners

Lightweight

"Just good enough" governance

Managed risk

Multidisciplinary teams

27

NON LINEAR

needs:

Absorb disruptive

new business

Models

React Fast to

capture business

moments

Flex painlessly to

support innovations

Explore and evolve

solutions that are

surrounded by

uncertainty

Almost Half of CIOs Have Begun the Bimodal Journey

45% of CIOs currently have a second fast/ agile mode of operation.

Myth: Nonlinear is not only about software development.

But most have not exploited all the facets of bimodal:

47% operate separate teams.

43% partner with small businesses.

8% use crowdsourcing/innovation marketplaces.

28

To Compete in a Digital World, We Need to Complete Our Bimodal Capability

CIO

Functional/

Process Silos Run Grow/

Change

CIO

OOCIO

D

CTO

CDO

Run

CIO

OOCIO

D

CTO

P&L Owners

Multi- disciplinary

Product Teams

CTO

CDO

OOCIO

Run

Grow/

Change

Chief technology officer, acting as chief operating officer of IT

Chief digital officer, acting as digital change agent

Office of the CIO, running IT as a business (strategy, governance, security and risk, etc.)

Run = every aspect of IT needed to keep the business running

Grow/change = every aspect of IT needed to execute on growth and change

Demand management = internal demand/relationship/account managers facing off to BUs

IT Craftsmanship IT Industrialization Digitalization

29

D

The CIO Golden Rules for Building a Bimodal IT Organization

I. Be clear and create principles of what goes into conventional IT, and what goes into nonlinear. Default criteria: need for speed, need to innovate, high levels of uncertainty.

II. Design all components to form a consistent nonlinear environment: structure, staffing, sourcing, governance, metrics, tools.

III. Apply lightweight architectural governance to ensure that nonlinear mode initiatives don't make a mess, but governance shouldn't be too heavy/slow.

IV. Provide sufficient focus on the ability to refactor/industrialize nonlinear mode into conventional mode IT, and to unleash conventional systems into the nonlinear world when the need arises.

V. Consider skills and cultural aptitude (e.g., neophilia, tolerance for risk/uncertainty) in staffing the nonlinear mode organization.

VI. Be brave about the need for new people/skills/culture in nonlinear; don't set yourself up for failure with the wrong people.

VII. Don't use placement in the nonlinear mode organization as a reward for your best staff; they may not be a cultural fit.

VIII. Manage communications so that conventional and nonlinear mode IT are seen as important and exciting places to work.

IX. Manage the cultural distance of the nonlinear mode team from the core of the company — not too near, not too far.

32






33


In This Time of Transition, CIOs Are Reflecting on Their Lasting Impact

"Solutions for our country: payment system, digital signature system and

economic solution systems that our citizens need."

"I will transform education from paper-based with siloed data to digital

information provided in real time that impacts students,

teachers, parents and administrators."

"IT will be the experts, but technology will be everyone's job."

"The people I have trained and mentored wherever

they may apply themselves."

"IT generates revenue."

"Enabling a workforce for the next generation that

sees business for the first time via a digital lens, and has the tools to operate

without borders."

"Collaborative digital leadership."

"Cloud infrastructure with digital services."

"Increased patient empowerment through digital health solutions."

"Using digital technologies to personalize content and create better engagement

opportunities."

34

Craft Your Digital Legacy

35

Recommended Gartner Research Overall/Digital:

"Hunting and Harvesting in a Digital World: The 2013 CIO Agenda," Mark P. McDonald, Dave Aron (G00248536)

"Let's Get Digital: A Template for Digital Business Strategy," Dave Aron, Lee Weldon (G00257724)

"The Gartner Travel Guide to the First Digital Decade," Lee Weldon, Jeffrey R. Cole, Mark P. McDonald, Stephanie Woerner (G00255443)

"CEO and Senior Executive Survey 2013: As Uncertainty Recedes, the Digital Future Emerges," Mark Raskino, Jorge Lopez (G00247308)

Digital Leadership:

"CEOs and CIOs Must Co-Design the C-Suite for Digital Leadership," Mark Raskino, Dave Aron, Patrick Meehan, Jennifer S. Beck (G00258536)

"Does Your Business Need a Chief Digital Officer?" Dave Aron (G00238298)

"Toolkit: Chief Digital Officer Job Description," Dave Aron, Diane Berry, Lily Mok (G00249735)

"Early Trends in Recruiting Chief Digital Officers," Ken McGee (G00258352)

"The Three Types of Digital Business Leader," Dave Aron, Laura McLellan, Yvonne Genovese (G00251979)

Renovate the Core:

"Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond," Alexander Drobik, Nigel Rayner (G00252735)

"Hybrid Cloud Is Driving the Shift From Control to Coordination," Daryl C. Plummer, David Mitchell Smith (G00252934)

"Use Web-Scale IT to Make Enterprise IT Competitive With the Cloud," Cameron Haight, Daryl C. Plummer (G00250754)

"Approaching cloud services strategically helps Banco Bilbao Vizcaya Argentaria simplify platforms and processes while enhancing productivity," Dave Aron, Mark P. McDonald (G00231037)

"The Art of Innovating by Partnering With Small Companies," Dave Aron, Nick Jones (G00239799)

Bimodal Capability:

"Innovate Like a Startup: The CIO's Front Office Toolkit," Leigh McMullen, Richard Hunter, Jeffrey R. Cole (G00254272)

"Toolkit: Pace-Layered Application Strategy Starter Presentation," Bill Swanton (G00249808)

36

Next…

35

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

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Taming the Digital Dragon The 2014 CIO Agenda

dominando o 'dragão digital' | encontro de cios dti e sucesu minas 27/02/2014

Technology

express written permission

chief digital officer

cio golden rules

intended gartner audience

nonlinear mode organization

digital dragon renovate

digital savvy

digital dragon