why enterprise digital strategies must drive it modernization

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Copyright © 2014, Intellyx, LLC 1 Why Enterprise Digital Strategies Must Drive IT Modernization Jason Bloomberg President [email protected] @theebizwizard

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Why Enterprise Digital Strategies Must Drive IT Modernization Today's Digital Strategies face a potentially crippling trend: the separation of the Digital Transformation effort from the day-to-day running of the Information Technology (IT) shop. The lure of this bifurcation is unmistakable. CIOs have their hands full simply keeping older systems of record up and running, while the Digital effort is entrepreneurial, fast-moving, and deals with customer-facing systems of engagement. It's as though they are two separate worlds, with different priorities and different ways of operating. Don't fall into this trap. Remember, those crusty old systems run the business, as they have for years. They contain invaluable data, institutional knowledge, and support for the core business processes that drive the bottom line. Only those organizations who properly leverage their deep IT assets will prevail with their Digital Strategies long term. The good news: the Digital Transformation effort can -- and should -- drive modernization in IT. The secret is to take a flexible, business-driven approach that takes modernization one step at a time, and focuses on what's important. Attendees of this session will: * Gain a better perspective on the role IT can and should play in Digital Transformation initiatives * Understand why "old ways of doing things" with technology won't work, and why * Learn a straightforward, practical approach for facilitating successful change within IT in support of Digital Transformation goals

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Page 1: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC

1

Why Enterprise Digital Strategies Must Drive IT

Modernization

Jason BloombergPresident

[email protected]

@theebizwizard

Page 2: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC2

About Jason Bloomberg

• President of Intellyx• Global Advisory Firm focused on Digital

Transformation & Business Agility

• Write for Forbes and Wired on Digital Transformation

• Run the Bloomberg Agile Architecture Certification Course around the world

• Buy my newest book, The Agile Architecture Revolution

Page 3: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC3

Digital Transformation

What are you transforming?

Digital Transformation = Business Transformation

Customer Experience

Technology

Internal Organizatio

n

All of the Above

Page 4: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC4

Optimization Pitfall

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The Problem of Local Optima

Page 5: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC5

Optimization vs. Innovation

InnovationDisrupt status quo

to allow human creativity to

flourish

OptimizationEstablish

feedback loops that maximize

business outcome

Page 6: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC6

Innovativeness

• The ability to introduce change into the business environment in order to achieve a strategic advantage– New products or services– Expand market share– Enter new markets

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Page 7: Why Enterprise Digital Strategies Must Drive IT Modernization

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Business Agility

• Responsiveness– Tactical value

• Resilience– Risk mitigation

• Innovativeness– Strategic value

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Ability to respond to change in the business environment and leverage change for competitive advantage

Page 8: Why Enterprise Digital Strategies Must Drive IT Modernization

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Innovation Requires Disruption

• External Disruption– Competitive pressures/new

entrants– Globalization– Regulation

• Internal Disruption– Digital Transformation

efforts– Innovation initiatives

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Page 9: Why Enterprise Digital Strategies Must Drive IT Modernization

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Disruption Introduces Risk

• Optimization without disruption stifles innovation

• Disruption without optimization is an innovation crap shoot

• Optimize what you can & disrupt what you must P

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Mitigate risk with resilience

Page 10: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC10

Resilience

• The ability to respond quickly and efficiently to negative change in the business environment– Managing risk– Bouncing back from

adverse events– Disaster recovery

• Tactical business driver

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The opposite of brittleness

Page 11: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC11

How do You Manage?

• Each Line of Business/Division has its own goals & business outcomes

• LoB Management drives toward optimizing those outcomes

• Maximize shareholder value/profit/revenue

• Better-Faster-Cheaper, then repeat

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Page 12: Why Enterprise Digital Strategies Must Drive IT Modernization

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The Problem with Better-Faster-Cheaper

• Digital BFC pushes technology to its breaking point

• Technology team must focus on dealing with failure

• Resilience becomes top priority• Requires holistic view of organization because

weakest link could be anywhere

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Recipe for Agility

Page 14: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC14

Mistake #1: Focusing Digital on Technology

• Easier than changing organization & culture• Leads to “tone deaf” Digital efforts

– Unresponsive Mobile– Social Media that put off or anger customers– Customer “service” snafus

Page 15: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC15

Mistake #2: Shifting Digital Away from IT

• Leads to Digital efforts disconnected from IT

• ‘Legacy’ systems of record act as limitations

• No effective cooperation between Digital & IT (CDO & CIO for example)

• Leaving legacy behind moves organization away from business agility

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Page 16: Why Enterprise Digital Strategies Must Drive IT Modernization

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There is no Shortcut!

• Common wrong turns– Migrating legacy apps to

the Cloud– Big Data strategies without

a coherent strategy for collecting new information

– Mobile app interfaces to existing Web apps

• Remember, Digital Transformation isn’t about the Digital, it’s about the Transformation!

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Page 17: Why Enterprise Digital Strategies Must Drive IT Modernization

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Organizing for Innovation

• Move from high connectivity to low connectivity– Provide flexible technology– Autonomous, self-

organizing teams– Teams must cut across

organizational silos

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Problems of Organizational Silos

• Every line of business, department, functional area has its own requirements, its own way of doing things

• Must invest in specialized technology for narrow purposes

• IT must integrate everything, increasing cost, complexity, & brittleness

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Page 19: Why Enterprise Digital Strategies Must Drive IT Modernization

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Silos on Top of Silos

• Organizational silos– Lines of business,

departments, geographic locations, etc.

• Application silos– Different apps for

different departments• Infrastructure silos

– Various data centers & rooms, heterogeneous platforms, & Cloud!

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Page 20: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC20

It’s Time to Take Down the Silos!

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Page 21: Why Enterprise Digital Strategies Must Drive IT Modernization

Copyright © 2014, Intellyx, LLC21

Better Way to Manage

• Build cross-organizational teams• Understand when to

optimize and when to innovate

• Embrace disruption• Encourage resilience• Give people the tools

they need and get out of their way

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Page 22: Why Enterprise Digital Strategies Must Drive IT Modernization

Jason Bloomberg

President, Intellyx

[email protected]

@theebizwizard

Thank You!