the function of it in business transformation

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The Function of IT in Business Transformation New Research Findings on Roles, Risks,

and Rewards

InnoTech Austin

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The discipline of “business transformation” has the power to invigorate the organization. In this era of the “digital enterprise,” IT has the opportunity to become a key contributor to revenue and business improvement. In this session, new research will benchmark best practices so that astute leaders will be able to prioritize projects, measure improvements, and link business successes.

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Agenda

•  Your IT Organization Should Benchmark Business Transformation •  Research Discovery Benchmarks

o  Size of company o  The influence of other executive stakeholders

o  Your role o  Your relationship with vendors

•  Recommendations

•  Q&A

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Your IT Organization Should Benchmark Business Transformation

IT in Business Transformation

Get the research report for free at: headspring.com/innotech-bt

http://headspring.com/innotech-bt

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IT is at Risk of Losing Relevance

“Digital dexterity” is bulldozing expectations of IT’s relevance in the digital enterprise:

•  Digital workplace strategy

•  Change management

•  Shadow IT

•  Bimodal IT infrastructure

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AppDev is Business Transformation

•  The “digital enterprise” requires that every LOB leverage technology systems in the quest for business improvement (profit, efficiencies, experiences)

o  Every business is a digital business

o  Your business can change only as fast as your technology

o  The structure of today’s solution determines tomorrow’s speed of change

Source: Forrester Research, April 2015

•  Technology leaders are inundated with buzzwords and “trends” that have diluted the urgency

o  And there’s real urgency – for example, 86% of multinational company CEOs identify a clear vision of how digital technologies can create competitive advantage as a function of their role

Source: PwC, January 2015

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New Primary Research – June 2015

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General Findings

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Overarching Conclusions

•  Business transformation is a priority

•  Business transformation is not only a concern of the IT organization

•  “Losing credibility and customers” is a bigger threat of not implementing business transformation projects – even more than “losing revenue”

•  All business transformation project types are a priority (or conversely, no project type is a priority)

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Benchmarking the Impact of Company Size IT in Business Transformation



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Company Size & Business Transformation Priorities

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Company Size & Third-Party Resources

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Key Conclusions

•  Smaller companies (less than 1,000 employees) are seeking to minimize costs while stretching their resources by picking their business transformation projects

•  Midsized companies (1,000 – 10,000 employees) struggle to prioritize

•  Large companies (more than 10,000 employees) leverage more maturity in business transformation prerogatives o  Larger budget o  More clearly defined business transformation role and directive o  More trust and reliance on partner resources (vendors) o  Stronger focus

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Takeaway: Roadmaps & Prioritization

Business’ ability to adapt to market- and consumer-driven changes is increasingly constrained by their ability to bring technology solutions to bear more quickly, and at larger scale. At the same time, the number of places within their business where they can apply technology solutions to effect transformation are also increasing.

The biggest challenge right now for decision makers is to determine

which of all the possible initiatives to take

on first.

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Benchmarking the Impact of Role IT in Business Transformation



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The Role of the Executive

•  The higher up you are, the more likely you are to say decisions fall on you

•  CEOs are most influential in both smaller and the largest companies

•  CEOs of large companies are road mapping the connection between digital investments and business objectives

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Disconnect Between Executive & Contributor

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Disconnect Between Executive & Contributor

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Key Conclusions

•  The CEO exercises similar roles in small and large companies (but in totally different scale)

•  Executives are enthusiastic about business transformation – They think they can plan all types of projects (contributors, not so much)

•  Contributors believe they can achieve business transformation independently (executives, not so much)

•  Contributors feel the need to validate

•  Contributors are closer to stakeholder pain

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The Importance of Addressing the Disconnect

Individual contributors and line managers are convinced that they’re able to bring business transformation initiatives into fruition – but at the same time, executive stakeholders are convinced they need to go outside their own companies to drive the change they really need.

It’s incumbent on IT leaders to invest in their

teams -- not only to bring them up to speed on the wave of digital

technologies -- but on a new way of interacting

and serving their business stakeholder’s

needs.

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Benchmarking the Impact of Vendors & Partners IT in Business Transformation



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Impact of Partners & Vendors on Priorities

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Impact of Partners & Vendors on Projects

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Key Conclusions

•  Organizations that do not leverage external partners are more often fighting market-share battles rather than wholly transformative operational improvements

•  Organizations seeking third-party vendors are more likely to be looking for support on inward-facing projects

•  Organizations already in a relationship with a resource expect precise execution and greater contribution to the strategic plan

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Takeaway: Find a Transformation Ally

“Reinvent or die in a ruthless world” Raconteur Magazine Business Transformation Issue, April 2015

The most successful IT organizations will be those who recognize

the challenges in front of them and are willing to seek outside help to

meet the changing demands of their

stakeholders.

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Recommendations IT in Business Transformation

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(1) Increasing Organizational Maturity

•  Improve focus of business transformation priorities; strategic efficiencies and client experiences

•  Increase transparency and communication of executive goals; leadership need to embrace the project as much as the “vision”

•  Partner with third-party resources that bring hindsight and expertise; establish a trust that can survive the long-term

•  Follow the natural evolution of business transformation projects; don’t get stuck in a comfort zone

The inaugural research highlights pragmatic maturity benchmarks

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(2) Focusing on Repairing the Disconnect

•  Executives and budget makers need to open up to the rest of the organization regarding what's in their "transformation portfolio"

o  Identify / fix when you know you are playing it “too close to the chest” o  “Manage up” to improve transparency and visibility specifically on how certain projects

have been designed to achieve business transformation goals

•  Mobilize your PMO to establish clear charter, funding, resourcing, and post-project benefit tracking to ensure business transformation initiatives can both start, finish, and be graded

•  Identify an outside partner to be your "transformation ally” o  Your in-house team will not meet the demands that are coming o  The sooner you build trust; the more capable both your internal and external teams will be

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(3) Prioritizing Projects Strategically

•  Accelerate procurement of new skills -- cloud, mobile, analytics -- these are going to be in huge demand and be the primary technology enablers of every transformation initiative over the next 5 years

•  Apply ROI-based analysis of your potential portfolio to identify the right attack order

•  Set real priorities around transformation initiatives (everything can’t be top priority)

•  Organize around "whole" teams o  There's no business transformation initiative that's 100% IT only

-- Likewise, there's also no initiative that can get done without IT

o  Consider a project leader or champion who's outside of IT for the duration of the project

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Thank You! Questions? IT in Business Transformation

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Introductions: Research Team

Kerry Raminiak, Research & Analysis

•  Manages the development of product and marketing research within the purview of enterprise IT and application development and delivery (AD&D) best practices

•  Similar roles for the past 12 years, within major enterprise application suite and as owner of communications firm that specialized in messaging for software, web-based applications, and other technology niches

•  Kerry has a BS in Communications from Towson University Maryland, and an MA from Pepperdine University

Glenn Burnside, Executive Vice President Operations

•  Ensures the successful, “zero-surprises” execution of all client projects through Headspring’s unique ROI-driven delivery model (RDDM™)

•  Has been delivering software projects and leading development teams for over 14 years, ranging from high-speed data acquisition libraries to global e-commerce solutions, as well as enterprise products for both the medical and financial industries

•  A graduate of Texas A&M University

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Introductions: Headspring

Headspring is a business transformation catalyst with a unique and accelerated planning and delivery model that aligns software application portfolios to enterprise business goals – providing the best ROI in the industry via:

•  A 98.2% project success rate

•  100% onshore technical collaboration

•  Rapid delivery model

•  Value-based, fixed-cost bids

•  3 Texas offices; Austin, Dallas and Houston

Objectives

Data Collection

Analysis

Value Case

Roadmap

Portfolio Rationalization

Strategy

Development

Optimization

Mobile Strategy

Development

Re-platform

Cloud

Modernization

Consolidation

Retirement

Greenfield

Application Development

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