Accelerating Transformation Inside the IT Organization
Meredith Whalen
Senior Vice President, IT Executive
Industry and Financial Research
IDC
The 3rd Platform is a Business Platform
1/3rd of leading businesses will be
disrupted by 3rd platform
competitors.
The 3rd Platform allows businesses to:
• Build deeper relationships with
their customers
• Innovate around new products and
services
• Improve their own internal
operations
Innovative Industry Solutions
Customer Relationship
Transformation
Workforce
Transformation
Business
Transformation
Transforming to a Business Innovation IT Org
IDC’s Enterprise IT Transformation Maturity Model
Optimized
Managed
Repeatable
Opportunistic
3rd Platform IT
Ad Hoc
2nd Platform IT
Core IT
No effort between business
and IT to coordinate or
incorporate 3rd Platform
technology
Uncoordinated efforts
between business and IT
around 3rd Platform
implementations; limited
progress toward 3rd
Platform adoption
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
Coordinated efforts
between business and IT
around 3rd Platform
implementation allow
organization to keep pace
with peers in 3rd Platform
adoption
Business Transformation
Highly orchestrated
interaction between
Business Innovation
business and IT around 3rd
Platform implementations,
Effective partnership
enabling a world-class
between business and IT
organization with lasting
around 3rd Platform
competitive advantage
implementations allows
driven by 3rd Platform
organization to outpace
competitors through the use transformation and an
organization that has
of 3rd Platform
embraced it.
Transforming the IT Organization is Multi-Faceted
2nd
Business
Innovation IT
Platform IT
IT is a Business Defining Investment
Strategy &
Innovation
IT Talent Supports Business Innovation
Talent
Management
Vendor
Management
Data Driven Performance Management
Improved Business Decision Making
Enterprise
Architecture
Service
Management
Technology Delivered as the Business Wants It
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
Strategy &
Innovation
Talent
Management
Vendor
Management
Enterprise
Architecture
Service
Management
Are You Transforming Your IT Org Fast Enough?
Optimized
42%
32%
Managed
Repeatable
Opportunistic
3rd Platform IT
Ad Hoc
2nd Platform IT
Core IT
6%
No effort between business
and IT toCore
coordinate
IT or
incorporate 3rd Platform
technology
Uncoordinated efforts
between business and IT
around 3rd Platform
implementations; limited
progress
toward 3rd
2nd Platform
Platform adoption
IT
Coordinated efforts
between business and IT
around 3rd Platform
implementation allow
organization to keep pace
with peers in 3rd Platform
adoption
3rd Platform
IT
Business Transformation
Highly orchestrated
interaction between
Business Innovation
business and IT around 3rd
Platform implementations,
Effective partnership
enabling a world-class
between business and IT
organization with lasting
around 3rd Platform
competitive advantage
implementations allows
driven by 3rd Platform
organization to outpace
competitors through the use transformation and an
organization that has
of 3rd Platform
embraced it.
15%
5%
Business
Innovation
Business
Transformation
74% of Organizations are Operating at a
2nd Platform IT or 3rd Platform IT Transformational Stage
Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May 2014. n=225
Accelerating Transformation Requires You to…
1
2
Move outside
your process
comfort zone
3
Cultivate
tomorrow’s IT
talent today
4
Deliver
technology the
way the
business wants
Manage
suppliers with
a data driven
performance
approach
The CMO’s Agenda
2014, Top Drivers of Technology Investments within Marketing
Increase revenue
Reduce costs and streamline operations
Customer acquisition and retention initiatives
Branding/awareness building
Employee productivity / training
New sales/channel expansion or capabilities
Support Mergers, acquisition or sale of a business unit
Expand operations globally
Partner / business ecosystem productivity
Expand operations nationally
0%
10%
20%
Source: IDC's 2014 Line of Business Survey – May 2014. Question: What business initiatives will technology address this year? n=75 product management
30%
40%
50%
60%
IT-enabled Products is the End Game
IT-enabled
Business Processes
IT-enabled
Services
Automating Business Processes
Transforming Business Processes
IT-enabled
Products
Creating IT-enabled Products
Moving Outside Your Comfort Zone
%
62
%
20
%
18
IT-enabled
Business Processes
IT-enabled
Services
IT-enabled
Products
Automating Business Processes
Transforming Business Processes
Source: IDC CIO Summit, April, 2014.
Creating IT-enabled Products
Accelerating Transformation Requires You to…
1
2
Move outside
your process
comfort zone
3
Cultivate
tomorrow’s IT
talent today
4
Deliver
technology the
way the
business wants
Manage
suppliers with
a data driven
performance
approach
The 3rd Platform will Create a Skills Gap
The 10 Most Difficult IT Positions to Staff
For each role, indicate how difficult it is to hire suitable candidates
More
Difficult
to Hire
Easier
to Hire
Enterprise
Architecture
Business
Intelligence
& Analytics
Source: IDC’s 2013 IT Staffing Survey – Jun 2013 n=131
IT
Management
and
Executives
Security
Mobile
Development
Social
Developers
Social
Community
Admins
Data
Service
Project
Architecture, Management Management
Management
and Storage
This is Who You are Competing Against
Build an IT Workforce…
…Based on Your Future Needs and Future Workforce
Kaiser Permanente
Source: www.Genentech.com; www.kaiserpermanente.org.
Bank of America
Genentech
Accelerating Transformation Requires You to…
1
2
Move outside
your process
comfort zone
3
Cultivate
tomorrow’s IT
talent today
4
Deliver
technology the
way the
business wants
Manage
suppliers with
a data driven
performance
approach
Shadow IT: What You Don’t Know Will Hurt You
6
%
6 I6
%
%
According toAccording
IT
According
to IT
to Business
Percent of Technology
Percent of Technology
Percent of Technology
Spending that is Shadow
Spending that is Shadow
Spending that is Shadow
Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014
Selling Your Services
How
you communicate
with the business is
just as important as
what
you communicate
Source: Magna International
Accelerating Transformation Requires You to…
1
2
Move outside
your process
comfort zone
3
Cultivate
tomorrow’s IT
talent today
4
Deliver
technology the
way the
business wants
Manage
suppliers with
a data driven
performance
approach
3rd Platform Requires A Different Sourcing Model
By 2015, IDC predicts 80% of large
%
80 firms will use outsourcing
2nd Platform
Vendor Sourcing Models
3rd Platform
Vendor Sourcing Models
Transactional Model
Relationship Model
Short Term
Long Term
Buy
Acquire Capability
Build
Integrate
Run
Data Driven Management
Risk Management Contracts
Trusted Relationship Contracts
Data Driven Performance Management
Sellers of technology and
the buyers of technology
are both customers of
the vendor and sourcing
management office.
—Sena Kwawu, SVP, State Street
Vendor Management and Sourcing Office
Are You Asking the Right Questions?
Your VMSO Should Provide You with the Following Insight
Can I survive a
compliance
software audit?
How are my suppliers
performing against my
business goals?
What exposure
do I have with my
existing suppliers?
Who are the emerging
suppliers I should be
evaluating?
Continuous Improvement Versus Innovation
This is what
continuous
improvement
can get you
Innovation
Product Enhancements
Customer Relationship
Transformation
Partnerships
Workforce
Transformation
Talent
Business
Transformation
IT Services
Think innovatively. Think new trajectories.
Meredith Whalen
Senior Vice President, IT Executive, Industry and Financial Research
mwhalen@idc.com
@meredithwhalen