The Digital Landscape (2015

& Beyond)

Kapil Dev SinghFounder, Coeus Age

Principal Analyst, Core Quadrant+91 9811771187, kds@kdsnext.com

Digital Landscape, 2015 & Beyond

Digital as a Themeof a deep, broad and sustained research initiative

Building a Digital

Enterprise

Business and IT Priorities, 2014

and 2015

The Jewels of Digital Survey

Digital Landscape, 2015

& Beyond

Enterprise Digital Tracker

The Jewels of Digital, 2015

Images courtesy of freedigitalphotos.net

Enterprise Digital Tracker

Digital as Enterprise Priorityis on the rise

2014 2015

5

1614

24

Top Priority 2nd Top Priority

Base- 142

%

Manufacturing Services Retail & Ors

1116

30

24

3010

Top Priority 2nd Top Priority

Base- 202

Base- 63

Base- 56

Base- 23

Core Quadrant, 2014, 2015

2015 2016 2017 2018 2019 2020

19629 25471 32305 4002149216

58919

130749147877

166805186485

206259225851

SMAC+ Overall IT

INR Crores

Core Quadrant, 2015

CAGR-11.6%

CAGR-24.6%

Digital Spend to Touch 10 B USDshall account for 50% of the growth in IT spend

Enterprise + Government

The Digital Journeyflirting to transformation

Flirting

Building

Converging

Transforming

Enterprise (Digital) Platform

45%

37%

14%

03%

116 Enterprises

First experience with SMAC+ by adopting

on a piece-meal basis. Mostly at the periphery, these are low hanging fruits

and isolated initiatives. The

exuberance, however, is high.

The flirting with individual pillars of

SMAC+ and the resulting experience and learning often evolves into focused build up around one or more pillars. However, the

build up remains largely separate and isolated

The maturity in more than one pillars of SMAC+ and the resulting learning

prompts enterprises to look at converging them

together and with the underlying infrastructure

and applications. E.g. how mobility and social

CRM or cloud and analytics converge

A highly converged enterprise (digital)

technology platform also means that the underlying

IT also has evolved to support it. A new

enterprise platform, a matured IT base, a new

leadership vision, strategy, culture and skills are natural allies for it to

give performance benefits

Source- Core Quadrant, 2014

The Contextual Complexityis on the rise

The CIO Prioritiesare competing in nature

The Enterprise Platformtransition towards a newer paradigm

Old Paradigm New Paradigm

On-premise Hybrid of on-premise and in the cloud

Most of the users within the enterprise Growing number of users based outside the

enterprise

Development and change needs arise

internallyDevelopment and change needs arise at the edge of

the extended platform

Monolithic infrastructure, dedicated to

specific applications

Flexible infrastructure driven by a virtualised and

software-driven layer

Convoluted point to point connectivity Secured public network for optimized connectivity

Applications developed using traditional

methods

Application development based upon modern frameworks

Stability-oriented and slow in responding Change-oriented and agile in responding

Focus- stability, availability, perimeter

security and closeness

Focus- change & agility, user experience, data

security, governance. compliance & opennessSource: Core Quadrant, 2015

The Frameworkof an enterprise digital platform

Core

Catalyst

SMAC+

1. Automation of IT Processes

2. Communication between machines, people, processes & data

3. Embedded play of

Analytics and Big Data capabilities4. Availability of IT Management Dashboards on multiple devices5. Elasticity and Spread6. Openness to other platforms

7. Security & Governance across the spectrum

1. Matching expectations of

user experience (UX)2. Digitized, secured and dynamically

retrievable documents3. Automated, agile, managed, connected, secured and contextualized business

processes4. Integrated, open, managed, optimized, orchestrated and secured

business applns5. Secured, quality and rationalized data, and smooth

data flow6. Agile, governed and

secure IT infrastructureCore Quadrant, 2015

Digital Initiativesthe issues of depth and breadth

Flirting with Many

Converging and

Transforming

Flirting with Few or Lack of Focus

Building or Selective

Converging

Depth

Brea

dth

Low

Low

High

High

Core Quadrant, 2015

46%37%

14%

Mobility

Infra Overhaul

Applications Overhaul

Cloud

Analytics/ Big Data

Social Media

Ecomm

BYOD

Middleware

IOT

65%

61%

61%

54%

47%

42%

35%

27%

26%

24%

Core Quadrant, 2015Base- 295 CIOs

Enterprises’ Twin IT Focusperipheral digital initiatives and core overhaul

The Process Focus of Digital in 2015as an indicator of breadth

Manufacturing Services Retail & Ors

High ModerateLow

High ModerateLow

High ModerateLow

Core Quadrant, 2015

Enterprise Digtial Platformthree evolutionary paths

(Disconnected) Evolution P

C

Co-Evolution

C

P

Revolution

P

C

The Bigger Agendafor digital

As a growth engine

As a management dashboard As a transmission mechanism

As a momentum creatorDigital as a Growth Engine (and More)- A White Paper, Leading Digitally, 2015

Digital Market Place/ Value Chain

The Digital Enterpriseplatform in 3- technology, capability and strategy

Digital Capability (& its Leverage)

Digital Enterprise

Digital LeadershipDigital Strategy

Digital BoundaryDigital Culture

Digital Infrastructure

Enterprise Digital Platform

WhatFunctionalities

Exist?

(Process) Capability PlatformWhat (Process) Capabilities Exist?

(Competitive) Strategy PlatformWhat Strategic Options Exist?

Core Quadrant, 2015

Core Quadrant, 2015

Digital Market Place/ Value Chain

Digital Capability & its Leverage

Digital LeadershipDigital Strategy

Digital BoundaryDigital Culture

Digital Infrastructure

7 Aspects of a Digital

Enterprise

2. Are digital capabilities created

and also strategically exploited?

3. What is the internal preparedness for building the

digital capabilities and exploiting them strategically?

1. What is the organizational response to the emerging digital market place/ value

chain?

Digital Enterprise Framework3 essential questions

The Converged Playand 5 Platform Strategies

Engineered Systems, Unified

Computing, Converged

Infrastructure

Unified Communications, Unified IT Management, Unified Data

Management, Unified

Security, Enterprise Mobility

Marketing Cloud,

Documents Cloud,

Enterprise Marketing

Suite

SAP HANA, Hadoop, Digital

Services Cloud, IBM

Watson

Marketing Cloud,

Documents Cloud,

Enterprise Marketing

Suite

Core Quadrant, 2015

The (Converged) Platform Paradoxconverged vendor platform versus point solutions

Never Considered

Considered but didn't adopt

Considered and Planning to adopt

Considered and adopted

21%

36%

28%

16%

Single or few vendors

One or few main vendors but niche vendors too

Multiple vendors

Do it ourselves, multiple vendors

12%

35%

46%

8%

Core Quadrant, 2014Base- 116 CIOs

Converged Infrastructure Platform…. Single, Few or Multiple Vendors….

1. Set clear priorities, both short and long term

2. Design the enterprise digital platform road-map

3. Lead a digital discourse in the C-suite

Challenge or an Opportunity?the CIOs must rise and take up the challenge

4. Drive internal readiness

5. Develop new leadership competencies

The Digital Landscape (2015

& Beyond)

Kapil Dev SinghFounder, Coeus Age

Principal Analyst, Core Quadrant+91 9811771187, kds@kdsnext.com