unlocking the power of digital transformation: freeing it from legacy constraints

© 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION

May 2016

Unlocking the Power of Digital Transformation

2

Unlocking the Power of Digital Transformation: Freeing IT from Legacy Constraints

A global study from Brocade that identifies businesses are missing opportunities to unlock innovation more quickly and more effectively due to legacy technology and historical misperceptions about the role of IT departments.


© 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 3


“For two decades, legacy IT infrastructure has held back businesses from innovating on their terms. The IT department has found itself having to say ‘no’ to new business opportunities far too often. It wasn’t supposed to be that way.

“Modern New IP technologies unlock the power of the network as a platform for innovation and put the IT department in the business of saying ‘yes’ to the kinds of business opportunities that surface almost daily in today’s era of digital transformation.

“The network is the critical key to unlocking the power of digital transformation and freeing the IT department from the legacy constraints that are currently blocking innovation.”

Christine Heckart, Chief Marketing Officer at Brocade


Unlocking the Power of Digital TransformationOverview of findings• IT leaders and teams are under unprecedented pressure to deliver

tangible business benefits—from increased competitiveness and innovation to productivity and revenue

• However, these IT teams are under a range of constraints, from dealing with legacy technology to historical misperceptions about the role of IT departments

• These are blocking them from delivering the benefits of Digital Transformation

• .As a result businesses are missing opportunities to unlock innovation more quickly and more effectively and IT decision ,makers are feeling frustrated

• This is in turn having a negative effect on competitiveness, productivity, innovation and revenue



• Digital Transformation and Success• Challenges for IT• Opportunity for IT• Conclusions

Four sections in the report


Digital TransformationAdoption of Digital Transformation Strategies

87%ITDMs say their organization are

adopting

94% say their CIO and IT managers feel it is

important in order to achieve business

objectives

79%state that their organization is

restricted in its ability to support digital transformation


Digital TransformationInnovation key reason for transformation IT Departments vital

97%recognized IT as

important to enabling the organisation to innovate and grow

44% say that the innovation

of IT services and42%

say the introduction of new technologies are the most important

factors in their IT team’s KPIs


Challenges for the IT DepartmentWhere the time is currently spent

This restricts the time available to digitally transform their organization.

73%maintaining data security

63% maintaining

legacy systems


Challenges for the IT DepartmentThe main obstacles to Digital Transformation

49% lack of budget

43% security concerns

26% inflexible legacy system

9% nothing is delaying

26% not having the right skill sets

22% other priorities

19% legislative restrictions

14% lack of board support

14% lack of board

understanding

21% lack of innovative attitude

within IT

28% internal policy restrictions


Challenges for the IT DepartmentLeading to frustration in, and with, IT

84% believe that the CIO and IT management in their organisation feel limited in how much they can innovateAlmost half (46%) state that their IT department is perceived as not being able to deliver on some business needs 91% report that there are issues preventing their IT department from delivering on current business demands immediatelyNearly three quarters (72%) of ITDMs feel frustrated that they cannot readily deliver what is demanded by the business

Challenges for the IT DepartmentA world of missed opportunities


7%

33%

47%

13%

All employees think IT always say 'no' by de-faultMost employees think IT always say 'no' by de-fault

88% state that there have been situations in the last year where their IT team has had to defer or decline requests that would have clearly benefitted the business53% say that these situations resulted in missing short-term benefits—and even more, 72% missed long-term benefitsThree quarters (77%) report that IT leaders in their organization get frustrated with saying ‘no’ or ‘not yet’ to the business


The Opportunity for IT if More FlexibleThe benefits of a ‘yes’ from IT

IT downtime would reduce

Security risks would be reduced

We would be more competitive

Revenue would increase

Better business analytics

Skills could focus on innovation

IT staff satisfaction would rise

Shadow IT would be eliminated

A more iterative approach to IT

IT team resources would be freed

Non-IT staff satisfaction would rise

No more incompatible data silos

Non-IT team resource would be freed

We would not expect any benefits

36%36%36%

34%32%31%

30%30%

27%27%

22%20%20%

2%

98% of respondents would expect to see benefitsOne third (36%) would expect the business to be more competitive31% expect skills to be more focused on innovation30% expect the elimination of shadow IT


The Opportunity for IT if More FlexibleImpact on the bottom line

12% INCREASE IN REVENUE OVER THE NEXT 12 MONTHS

72%believe they could

increase their revenue

70% say it could allow them to decrease their costs

10% decrease in costs over the next 12 months


• Brocade knows from experience, and this report confirms, how critical IT is to enabling innovation

• But too many businesses are restricted in their ability to adopt digital transformation and drive this change

• It’s clear that if IT departments could spend less time ‘keeping the lights on’, then they could devote more time to creating value, reducing costs, and increasing revenues

• Organisations need to be more fluid with their uptake and deployment of technology to secure future business success

Conclusions• As companies move to

digitize their businesses they need an underlying network infrastructure that allows them to innovate quickly

• The network must become a platform for innovation to develop, deliver, and secure applications

• This is best achieved through implementing network architectures that are software-centric, open, and agile, such as the New IP


Methodology630 IT decision makers were interviewed in March 2016

• Respondents came from across the globe:– US: 200 interviews– UK: 100 interviews– Germany: 100 interviews– France: 100 interviews– Australia: 80 interviews– Singapore: 50 interviews

• To qualify for the research, respondents’ organisations could be from any sector, excluding the ‘Other public sector’ and their organisation had to have at least 500 employees

• IT decision makers were interviewed using an online methodology and a robust multi-level screening process was used to ensure only appropriate respondents participated in the project


Thank you

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