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1
IT IN 2020 & THE
CIO LANDSCAPE
VERNON TURNER
SVP & RESEARCH FELLOW
IDC
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IMAGINE AN ECONOMY WHERE…
70%
The Success Rate Of New Product Introductions
Is Improved From Today By 70%
75% Of All Same Day
Consumer Deliveries Are
Fulfilled By Demandbased, Socially-linked
Delivery Networks
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Autonomous
Vehicles Displace 2nd Car
Ownership, Decreasing
Congestion By 10% In
Served Cities
25% Of CPG Retail
Shopping Is Conducted In
Omni-channel Commerce
Marketplaces
3
WHAT IS DIGITAL TRANSFORMATION (DX)?
Organizations Adapt To Changes In Their Ecosystem By Leveraging Digital
Technologies To Create Digitally Enhanced, Customer Centric Business Models
Create New
Customer
Experiences
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Improve
Operational
Efficiencies
Generate
New Revenue
Streams
Rapidly Respond
To Changing
Conditions
4
THOSE WHO THRIVE IN THE
DIGITAL ECONOMY WILL NEED TO
IN RETURN, THEY WILL
Develop And Execute A Vision For Digital
Transformation
Return Greatest Shareholder Value
Take An Ecosystem-first Approach To
Delivering Products And Services
Gain The Greatest Market Share
Manage Information Effectively
Create New Revenue Streams
Create Flexible And Reliable Human
Resource Model
Win The Talent Wars
Optimize Business Processes For Speed,
Efficiency, Quality, And Agility
Increase Profitability
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IDC’S DIGITAL TRANSFORMATION MATURITYSCAPE
DIGITAL TRANSFORMATION IS THE APPROACH BY WHICH ENTERPRISES DRIVE CHANGES IN
THEIR BUSINESS MODELS AND ECOSYSTEMS BY LEVERAGING DIGITAL COMPETENCIES
Optimized
Managed
Digital Disrupter
Repeatable
Digital Transformer
Opportunistic
Digital Player
Ad Hoc
Digital Explorer
Digital Resister
Source: IDC, Digital Transformation Maturity Model, 2015
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MOST ORGANIZATIONS ARE JUST BEGINNING
THEIR DIGITAL TRANSFORMATION JOURNEY
32%
Optimized
33%
Managed
Repeatable
14%
Ad Hoc
14%
Digital Transformer
Opportunistic
Digital Resister
Digital Disrupter
8%
Digital Player
Digital Explorer
Digital Player
Digital Transformer
Digital Disrupter
Digital Explorer
65% Of Organizations Are “Digital Explorers” Or “Digital Players”
Digital Resister
Source: IDC, Digital Transformation Maturity Model Benchmark,
2015; n= 317 IT and LOB Executives, March, 2015
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TRANSFORMING TO A BUSINESS INNOVATION IT ORG
IDC’S ENTERPRISE IT TRANSFORMATION MATURITY MODEL
Optimized
Managed
Repeatable
Business Innovation
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
Business
Transformation
Coordinated Efforts
Between Business And
IT Around 3rd Platform
Implementation Allow
Organization To Keep
Pace With Peers In 3rd
Platform Adoption
Effective Partnership
Between Business And
IT Around 3rd Platform
Implementations Allows
Organization To Outpace
Competitors Through
The Use Of 3rd Platform
Highly Orchestrated
Interaction Between
Business And IT Around
3rd Platform
Implementations,
Enabling A World-class
Organization With
Lasting Competitive
Advantage Driven By
3rd Platform
Transformation And An
Organization That Has
Embraced IT
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
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ARE YOU TRANSFORMING YOUR IT ORG FAST ENOUGH?
IDC’S ENTERPRISE IT TRANSFORMATION MATURITY MODEL BENCHMARK
Optimized
40%
Managed
Business
Transformation
Repeatable
Opportunistic
3rd Platform IT
16
%
Ad Hoc
2nd Platform IT
Core IT
No effort between
business and IT to
Core
coordinate
or IT
incorporate 3rd Platform
technology
2nd
27%
Uncoordinated efforts
between business and IT
around 3rd Platform
implementations; limited
progress toward 3rd
Platform
adoption
2nd Platform
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 Innovation
Effective partnership
between business and IT
around 3rd Platform
implementations allows
organization to outpace
competitors through the
use of 3rd Platform
13%
Highly orchestrated
interaction between
business and IT around
3rd Platform
implementations,
enabling a world-class
organization with lasting
competitive advantage
driven by 3rd Platform
transformation and an
organization that has
embraced it.
4%
Business
Innovation
Business
Transformation
67% Of Organizations Are Operating At A
Platform IT Or 3rd Platform IT Transformational Stage
Source: IDC's Enterprise IT Transformation
MaturityScape Benchmark Study, August, 2014. n-156
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IT FUNDING FOR INNOVATION WILL BE CHALLENGED
IT BUDGETS ARE SADDLED WITH INFRASTRUCTURE & SOFTWARE MAINTENANCE COSTS
21%
37%
42%
New
Essential Software
Tech Spending
From IT Budget
Infrastructure Systems
Source: IDC, 2014
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BUSINESS INNOVATION WILL BE LARGELY
FUNDED BY LINE OF BUSINESS
BUSINESS BUDGETS HAVE MORE AVAILABLE FUNDS FOR BUSINESS-FACING APPLICATIONS
38%
25%
37%
New
Essential Software
Tech Spending
From Business Budget
Infrastructure Systems
Source: IDC, 2014
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INNOVATION FUNDING WILL REQUIRE A HOLISTIC
APPROACH TO TECHNOLOGY SPENDING
CONSIDER ALL TECHNOLOGY SPENDING ENTERPRISE BUDGETS
21%
38%
37%
25%
42%
30%
30%
40%
New
37%
Essential Software
Infrastructure Systems
Tech Spending
From IT Budget
Tech Spending
From Business
Budget
All Tech Spending
(IT & Business)
Source: IDC, 2014
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ACCELERATING TRANSFORMATION REQUIRES
YOU TO…
1
2
Move Outside
Your Process
Comfort Zone
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3
Cultivate
Tomorrow’s
IT Talent
Today
Deliver
Technology
The Way The
Business
Wants
13
IT-ENABLED PRODUCTS IS THE END GAME
IT-enabled
Business Processes
Automating Business Processes
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IT-enabled
Services
Transforming Business Processes
IT-enabled
Products
Creating IT-enabled Products
14
MOVING OUTSIDE YOUR COMFORT ZONE
%
10
%
54
%
36
IT-enabled
Business Processes
IT-enabled
Services
IT-enabled
Products
Automating Business Processes
Transforming Business Processes
Creating IT-enabled Products
Source: IDC, 2014.
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ACCELERATING TRANSFORMATION REQUIRES
YOU TO…
1
2
Move Outside
Your Process
Comfort Zone
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Cultivate
Tomorrow’s
IT Talent
Today
Deliver
Technology
The Way The
Business
Wants
16
TALENT MANAGEMENT
ONE OF LEAST MATURE DIMENSIONS
Percent Of Organizations At Business Innovation IT Stage
Strategy &
Innovation
Talent
Management
Vendor
Management
Enterprise
Architecture
Service
Management
15%
8%
21%
15%
7%
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
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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
IT
Management
And
Executives
Security
Mobile
Development
Social
Developers
Social
Community
Admins
Data
Architecture,
Management
And Storage
Service
Management
Project
Management
Source: IDC’s 2013 IT Staffing Survey – Jun 2013 n=131
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ACCELERATING TRANSFORMATION REQUIRES
YOU TO…
1
2
Move Outside
Your Process
Comfort Zone
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Cultivate
Tomorrow’s
IT Talent
Today
Deliver
Technology
The Way The
Business
Wants
19
TRANSFORMED EXPERIENCES
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TECHNOLOGIES ARE ALREADY FUELING THIS
TRANSFORMATION
By 2020…
A World Of Industry Clouds Handle ¾ Of All Economic
Activity In A Fully Automated Way — Eliminating Over
$100B Of Coordination Waste
Double The
Productivity Of Their
Companies
Knowledge Workers Through
The Use Of Big
Data/Analytics
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60% Of Device Interactions
Are Passive As Users
Accept Information
Surfaced From Intelligent
Systems And Machine
Learning
Mobile And Connected
Devices Redefine CX,
Tying Loyalty, Service, Sales
And Content To Context In
Real Time
21
INNOVATION IN UNEXPECTED PLACES
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THANK YOU
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