© Copyright 2015 EMC Corporation. All rights reserved. 1 IT IN 2020 & THE CIO LANDSCAPE VERNON TURNER SVP & RESEARCH FELLOW IDC © Copyright 2015 EMC Corporation. All rights reserved. 2 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 5 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 6 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 7 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 8 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 9 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 10 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 11 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 12 ACCELERATING TRANSFORMATION REQUIRES YOU TO… 1 2 Move Outside Your Process Comfort Zone © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 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. © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 15 ACCELERATING TRANSFORMATION REQUIRES YOU TO… 1 2 Move Outside Your Process Comfort Zone © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 3 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 17 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 18 ACCELERATING TRANSFORMATION REQUIRES YOU TO… 1 2 Move Outside Your Process Comfort Zone © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 3 Cultivate Tomorrow’s IT Talent Today Deliver Technology The Way The Business Wants 19 TRANSFORMED EXPERIENCES © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 20 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 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 © IDC Visit 2015 us at EMC IDC.com and follow on Twitter: @IDC Copyright Corporation. Allus rights reserved. 22 THANK YOU © Copyright 2015 EMC Corporation. All rights reserved. 23