The Brave New World – Why we need to Change
the IT Game!
April 2008
Eddie Short, Vice President, Global Leader Business
Information Management
"Companies don't fail because they do the wrong things; they
fail because they continue to do what used to be the right
things for too long".
Group CIO, Nokia
CE v6.3
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UK BCS – Changing the Game
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The ongoing Technology (R)evolution creates significant opportunities for
organisations to transform themselves
Vast opportunities for new value and innovation
• ‘Externalisation’ of technology in which information and services
become available to anybody and anything, inside and outside the
organisation.
• Choosing the areas to excel and differentiate, driven by the increased
ability to collaborate and share information and services.
• Creating a continuous mode of interaction with the outside world,
sensing and responding to arising opportunities.
Freeing ourselves from current constraints and obstacles
•
•
•
•
Standardising and simplifying business infrastructure.
Consolidating existing processes and systems.
Replacing and rationalising legacy solutions.
Creating new levels of flexibility and manageability.
The convergence creates significant opportunities where technologies are
driving a step change in the business models of our clients.
CE v6.3
© 2008 Capgemini - All rights reserved
Technology Consulting 2008 Launch
3
But for many this is fundamentally disruptive and it is clear that is no
longer ‘business as usual’ in many organisations…
Increasing business
competition, globalization,
standardization, commoditization,
amount of information & change
Generation Y
for whom technology
is a normal life skill
Convergence of communications,
content, media, games, and
devices at home and at work
New competitors,
new markets, and
new products
Technology acceleration of
Internet, Web 2.0, SOA,
Semantics, Knowledge,
and many other technologies
CXOs are seeing fundamental change; but the majority are not getting the support they
to harness the opportunity from the IT organisation
CE v6.3
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UK BCS – Changing the Game
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When thinking about this there are obvious examples to quote in the
Consumer/Web 2.0 world
But in fact the impact in the business to consumer and business to business
world will be just as/if not more fundamental
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An example of this is the game changing activities of Toyota in the North
American car market
Major “Web 2.0 Technology” initiatives are being driven outside-in or top
down, and not from the IT department
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So the game has changed – CRM for example!
"Classic" CRM is no longer viable - a one dimensional corporate
interaction that provides processes, services and technology to the
customer facing departments - sales, marketing and customer
service. It is time to recognize that there is a customer ecosystem
that provides empowered customers, who are increasingly interested
in making their own choices, in how they interact with companies
that they do business with. That means that not only does the
company need to provide the goods and services, but the tools and
culture to make the experience of that customer one of paramount
and unparalleled value to that customer and thus to the company in
return.
Source - Wikipedia
CE v6.3
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UK BCS – Changing the Game
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In Capgemini we have identified seven fundamental game changing
Technology factors
From
transaction
to interaction
You
experience
Open standards
and
service orientation
Process- Thriving
on-the-fly on data
Sector-as-a-service
Invisible infostructure
This TechnoVision 2012, gives our considered opinion of the major
opportunities and challenges facing our clients.
CE v6.3
© 2008 Capgemini - All rights reserved
Technology Consulting 2008 Launch
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Behind this are 17 key Technology building blocks…
Real-time
Real-Time
Business
business
Process
process
Control
control
Real-time
Integrated
integrated
Business
business
Intelligence
intelligence
Smart
Business
business
Networks
networks
Packaged
Sector //
sector
Segment
segment
Solutions
solutions
iPodification
Mashup
Mash-up
Applications
applications
Sensing
Networks
networks
Social
Collaboration
collaboration
Tools/ /
tools
Wikinomics
SoftwareSoftware
as a Service
as-a-service
Jericho style
Style
Security
security
Mastered
Data
data
Management
management
Composite
Applications
applications
Role-based
Role
Based
User portals
user
Portals
Utility
Business infrabusiness
Infrastructure
Free agents
Agents
Nation
nation
Googlefication
Rich Internet
Applications
applications
But, discussing these would be the topic of a longer conversation….
CE v6.3
© 2007
2008 Capgemini - All rights reserved
TECHNOVISION 2012_INTERNAL
UK BCS – Changing
VERSION.PPTX
the Game
9
These factors are impacting the biggest business drivers that the
organisations we work with have today.
Business drivers
Business drivers
Financial Services
Institutions
CE v6.3
Manufacturing
Government and
Public Sector
Retail
Telecom, Media
& Entertainment
Energy, Utilities
& Chemicals
Growth agenda /
differentiation
Innovation & customer
Building citizen-centric
organisations
Supply chain efficiency
Convergence to
integrated service
companies
Customer demands for
services
New competition
through crossborder offers
Business model
change
Budget pressures
Customer centricity
Digital supply chain
Ageing infrastructure
Increased customer
and investor
sophistication
Globalisation
Public security
Cost removal
Audience-driven
business model
Asset utilisation
New products
Compliance
Risk management
improvement
Cost management
Ageing population
Cost of operations
Increased demand for
compliance & risk
management
Network unbundling
Market consolidation
Reduction of CO2 and
other gases
© 2007
2008 Capgemini - All rights reserved
TECHNOVISION 2012_INTERNAL
UK BCS – Changing
VERSION.PPTX
the Game
10
“Web 2.0 is not IT as we presently define the term, or more
importantly perhaps the role of the IT department and that
has led to much of the current debate as to the future of the
CIO, a role created to manage the IT wave of business
process automation".
Andy Mulholland, Group CTO, Capgemini
CE v6.3
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Where this fits in - the decision makers and the basis of the decisions
within our clients are changing!
Competitive Advantage
VALUE
Innovative Technology
Understanding the value
to the business
Who is empowered and
And knowledgeable?
Strategic Operating decision
Who decides and why?
CEO
TECHNOLOGY
Cost Containment
Changing the Game
by Business Model
Innovation
CIO
Applying Technology
to reduce IT operating
costs
Upgrading Applications
to reduce Business
administration costs
IT department decides &
approved on costs metrics
Technology Focus
BUSINESS
Business Manager decides &
approved on costs metrics
COST
Business Service Focus
Increasing CXOs are driving decision making and many CIOs (are at risk of)
have less authority in the decision making process
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New models for Innovation are required if ‘your’ IT is to help your
organisation drive the change
Think of Peter Drucker’s 7 Models for Innovation
CE v6.3
Capgemini Consulting Global CIO Survey 2008
The Role of the IT Function
in Business
Innovation
© 2008 Capgemini
- All rights
reserved
13
BCS – Changing the Game
Innovator vs. UK
Operator?
Web 2.0 - Using People and Expertise to drive change and Transformation
The game is changing, but in many organisations CIOs are struggling to
balance the competing demands
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New Governance models are required to bring the Personalisation of the
Web 2.0 world, whilst maintaining the Compliance of the Corporate world
Pressure for
Business Change
Personalize
An Individual’s use of the capabilities of Web 2.0
Differentiate
A Business Manager’s Customizable Solution
Organize
The use of SOA to achieve cohesive executions
Comply
The Enterprise Transactions and Data; ERP and Legacy Applications
Who Needs What? And Why?
Pressure for
IT Stability
All together this creates a very significant opportunity but where is UK Plc in
preparing itself for this?
CE v6.3
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Too often, IT and the IT department have relied on the power of individual
gurus and subject matter expects
Leadership
In the new world success will not come from individual geniuses, but from
collaborations across organisations, industries and ecosystems…
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Conclusions – Three fundamental factors are at play!
1. People - have changed their relationship with Technology,
•
it is now an accepted part of many people’s ordinary lives, and it is people as consumers that
have driven the new generation of Web 2.0 technologies, and now expect to use these same
capabilities in their workplace.
2. Globalisation - the challenge of with whom, where, and when, shall an
Enterprise needs to do business in markets that are increasingly open and
therefore more competitive.
•
These changes have introduced new competitors, new markets and new business models all of
which combine to offer new opportunities and threats.
3. Technology - has driven these two changes; but not ‘Information Technology’
as we know it,
•
CE v6.3
Instead it is a new generation of people centric technology based around the architecture of the
Web, mixing Information and Communication Technologies, ICT.
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UK BCS – Changing the Game
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Virtual Worlds (such as Second Life) address Globalisation, bringing
together People and the new Technology, to deliver…
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