The New IT
Organization Disruptor:
Consumerization of IT
Mike Hedges
Chief Information Officer
Medtronic – A Brief Introduction
1949 - Fulfilling an
Unmet Medical
Need
An Enduring Mission
To contribute to human welfare
by application of biomedical
engineering …
To direct our growth in the
areas of biomedical
engineering …
To strive without reserve for
the greatest possible
reliability…
To make a fair profit …
To recognize the personal
worth of employees …
To maintain good citizenship…
Our founder Earl Bakken with medallion
Global Leader in Medical Technology
45,000+
employees, making us the largest
global medical technology company
9,000+
scientists and engineers
around the world
2,050+
FY11 patents awarded, bringing our
total worldwide to more than 23,000
$15.9B
FY11 global sales which generate
$3.2B in free cash flow*
~43%
* Free cash flow is operating cash flow minus capital expenditures
sales from international markets,
representing more than 120 countries
Diverse Businesses to Treat Many Conditions
Diabetes
CardioVascular
Surgical
Technologies
Spinal & Biologics
Neuromodulation
CRDM
Therapies to Address Many Chronic Conditions
Hydrocephalus
Sinus Diseases
Sinus Augmentation
Sleep Disordered Breathing
Cervical Degenerative Disc Disease
Thyroid Conditions
Atrial Fibrillation
Heart Failure
Congenital Heart Disease
Heart Rhythm Disorders
Angina*
Coronary Artery Disease
Heart Valve Disease
Scoliosis
Spinal Fracture
Lumbar Spinal Stenosis
Degenerative Disc Disease
Pelvic Trauma
Parkinson’s Disease
Epilepsy*
Essential Tremor
Cranial Trauma
Dystonia**
Brain Tumors
Obsessive-Compulsive Disorder**
Otologic Disorders
Meniere’s Disease
Aortic Disease
Severe Spasticity associated with Multiple
Sclerosis, Cerebral Palsy, Stroke and Spinal
Cord and Brain Injuries
Chronic Pain
Nausea and Vomiting associated with Gastroparesis**
Diabetes
Overactive Bladder and Urinary Retention
Fecal Incontinence
Peripheral Vascular Disease*
Tibial Fractures
*
**
Not approved for commercial distribution in the United States
Humanitarian Device in the United States – the effectiveness
for this use has not been demonstrated
Serving the World’s Major Geographies
Central/Eastern
Europe
Western
Europe/
Canada
United
States
Greater
China
Middle
East/Africa
Latin
America
Countries 120+
Asia
India
Locations 300+
Medtronic – Global IT
One Global Team in Service of Medtronic Mission
Our Vision, Mission & Strategy
Did You Know?
Did You Know?
More than 2 billion videos were watched on
And more than 293 billion e-mails were sent
Yesterday
Did You Know?
Who performed over 32 billion searches
last month?
had over 95 billion
Did You Know?
Data centers can consume 100 times more
energy than the offices they support.
A 25,000 square-foot data center can
consume $4.1 million in energy each year.
Did You Know?
1,150?
1,900?
2,812?
How many
TXT MSGS
the average
teenager
sends each
month?
3,982 per month
Did You Know?
6 Billion Mobile Subscritions
1.2 Billion Mobile Web Users
China and India make up 30% of
mobile subscriptions combined
they add 300 million per year more
than total USA
!
Did You Know?
The U.S. Department of Labor estimates that
today's labor force will have 10 to 14 jobs
By the age of
38
Did You Know?
In 1997, a gigabyte of
flash memory cost
$7,992
Today, it costs $0.25
Did You Know?
The computer in your cell phone today
is 1 million times less expensive,
and 1,000 times more powerful,
and about 100,000 times smaller
Than the one computer installed
at MIT in 1965
Think About It
"So what used to fit
in a building,
Now fits in
your pocket,
And what fits in your pocket now,
Will fit inside a blood cell in
25 years."
- Ray Kurzweil
Consumerization
Today’s Objective
•
•
Please join me in a lively debate about the big
disruptor in IT that is forcing us to change:
CONSUMERIZATION!
Consider the following questions…
•
•
•
How do we enable and challenge IT professionals in a large
organization to increase technology “ease of use”?
What does consumarization mean to today’s centrally-managed IT
organizations and how will they be organized and governed in the
future?
How do large enterprise IT organizations begin taking advantage of
the of location, touch interfaces, game technology, voice input,
video/audio integration, and much more that new consumer devices
make easy and possible?
Consumerization of IT…
•
•
•
•
IS NOT only about placing employee-purchased mobile
devices like the iPhone, iPad, Android phones into the
business IT environment.
IS about consumers – employees, customers , partners ,
suppliers – becoming the main users of internal IT
applications.
IS forever changing how we acquire and use information
technology in the enterprise.
IS posing a challenge to all IT organizations:

Our challenge is to continue to ensure security, reliability, availability,
inform business decision-making, etc., but to also rapidly integrate
some of the consumer-based capabilities appropriately for the
enterprise.
The role of IT is changing.
Reality-check about business needs…
•
•
•
•
If we think our internal users have a variety of devices,
wait until we see what rest of world has – the notion of
building an ‘approved device list’ may be laughable.
Application loads will become much more variable,
predicting loads based upon undefined set of users with
unknown use patters will be daunting.
Application data loads will be much higher (big data).
This will drive enormous traffic on our internal IT
systems.
Our systems will need to be EASY TO USE and the
functionality will ALWAYS have to work.
Reality-check about business users…
Users we serve today perceive themselves to be more
knowledgeable about technology than those in IT.
HOWEVER…
Their view of technology is simple. The reality is that it is not.
•Proliferation
of devices, user interfaces, and applications
greatly complicates the environment that IT must support.
•Do not understand that we can get a website up and running
in 48 hours, but integrating into the multiple systems takes a
lot longer.
•Do not understand IT must support security, privacy, SOX,
and PCI requirements.
So what can I do about all of this
First, we must accept that this phenomenon will not go away any time
soon. It is here to stay.
Second, I need to understand what the users are really asking for.
Third, I need to get ahead of the users (pro-active strategy). I need to
partner with vendors to learn what will make up the next generation of tools
and toys that consumers will want to use to access internal IT applications.
Fourth, I need to educate my internal consumers , on complexity of
what they are asking for
Finally, I need to have the right collaborative organization in place that
can work with the customers (end users). I need to work with them and
not against them.
---
So what IT organization should we build?
•
Based upon consumerization and other pressures four IT
organization models are emerging, each with a different
stance.
•
No negative value judgments on any of the IT
organization models
•
The purpose and role of IT should always be driven by the
needs and expectations of the rest of the business.
Global IT
Externally
Focused
Global
Service
Provider
Business IT
Focus
Internally
Focused
Operational
IT
Operational
Everyone’s
IT
Transformational
Orientation
Model 1: Operational IT
•
IT operations - some call it the engine
room of the company
•
Adept broker of IT products and Services
•
Alternative delivery models such as Cloud
computing
Model 2: Global IT
•
Internally Customer-Driven
•
Competitive and Engaged
•
Service Orientated
•
Functionally Processed Based
Model 3: IT as the Business
Business integrates IT decisions into
everything it does the same way it
considers money and finances
• IT Success is measured in terms of
Business Results
• Becomes more customer-centric
• Market/Industry Obsessed
•
Model 4: Anyone’s IT
•
Highly distributed IT, customer-driven
•
No central IT authority
•
Managed by enterprise as one of its
processes and integrated with their
professional disciplines
SO WHAT IS THE CONCLUSION
WORLD IS CHANGING – SO IS Information Technology
More Profound than slapping an pretty interface on a decade-old enterprise
application
More than Just BYOD into your Environment
Its About recognizing that boundary is blurry between our companies and
the rest of world
Be ready for the real consumerization of IT