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An IDC InfoBrief Sponsored By VMware | January 2016
Accelerating Your Organization’s Digital Transformation
pg 2
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Source: IDC 2015
of new product introductions
are successful
of all same-day consumer deliveries
are fulfilled by “Uber-like” car services
of the G2000 have leveraged
digital transformation to
establish segment leadership
Imagine An Economy Where...
70%
90%
85%
pg 3
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Organizations adapt to changes in their ecosystem by leveraging digital technologies to create digitally enhanced, customer-centric business models.
In This Digital Economy...
Create new customer
experiences
Rapidly respond
to changing
conditions
Generate new
revenue streams
Improve operational
efficiencies
pg 4
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Image sources: GE.com, Citigroup.com, airbusgroup.com
Innovation Is a CEO Priority, But Requires Serious Transformation
“If you went to bed last
night as an industrial
company, you’re going
to wake up today as
a software and
analytics company.”
—Jeff Immelt
CEO, GE
“We are no longer a bank,
we are a technology
company in the financial
services industry.”
—Michael Corbat
CEO, Citi
“Digitalization and smart
tools could drive the
integration of Airbus much
further. We recently decided
we need one collaboration
platform for the entire
group. That is pretty cool.”
—Tom Enders
CEO, Airbus
pg 5
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Digital Transformation Is Multi-faceted and AcceleratedThe 5 areas of digital transformation:
Leadership
Transformation
Omni-Experience
Transformation
Information
Transformation
Operating Model
Transformation
Worksource
Transformation
pg 6
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
2nd Platform Technology Value Proposition• Technology automates business processes
• Enterprise software streamlines operations
2nd Platform IT Business Model• IT funds 80% of technology
• IT publishes its technology catalogs
• Big bang approach to projects
2nd Platform IT Talent• Services the needs of enterprise “end users”
• 2/3rd of time spent building IT systems
• Technical skills dominate
Business Innovation Tech Value Proposition• Technology creates new products and services
• Analytics creates new customer experiences
Business Innovation IT Business Model• Business funds 80% of technology
• IT delivers technology the way business wants to consume it
• Iterative approach to projects
Business Innovation IT Talent• Services the needs of enterprises’ consumers
• 2/3rd of time spent governing IT systems
• Business skills dominate
But Digital Transformation Requires IT Transformation First — From 2nd Platform to Business Innovation
pg 7
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Source: IDC, Enterprise IT Transformation Maturity Model, 2014
Transforming to a Business Innovation IT Organization
Ad Hoc
Repeatable
Opportunistic
Managed
Optimized
Core IT
No efort between
business and IT
to coordinate or
incorporate 3rd
Platform technology.
2nd Platform IT
Uncoordinated eforts
between business and
IT around 3rd Platform
implementations; limited
progress toward 3rd
Platform adoption.
3rd Platform IT
Coordinated eforts
between business and
IT around 3rd Platform
implementation allow
organization to keep
pace with peers in 3rd
Platform adoption.
Business
Innovation
Efective partnership
between business and
IT around 3rd Platform
implementations allows
organization to outpace
competitors through the
use of 3rd Platform.
Business
Transformation
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.
IDC’s IT Transformation MaturityScape: The 5 Stages of IT Maturity
pg 8
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Ad Hoc
Repeatable
Opportunistic
Managed
Optimized
Core IT
No efort between
business and IT
to coordinate or
incorporate 3rd
Platform technology.
2nd Platform IT
Uncoordinated eforts
between business and
IT around 3rd Platform
implementations; limited
progress toward 3rd
Platform adoption.
3rd Platform IT
Coordinated eforts
between business and
IT around 3rd Platform
implementation allow
organization to keep
pace with peers in 3rd
Platform adoption.
Business
Innovation
Efective partnership
between business and
IT around 3rd Platform
implementations allows
organization to outpace
competitors through the
use of 3rd Platform.
Business
Transformation
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’s Enterprise IT Transformation MaturityScape Benchmark Study, August, 2014. N=156
Are You Transforming Your IT Org Fast Enough?
16%
40%
27%
13%
4%Core IT 2nd platform IT 3rd Platform IT Business
InnovationBusiness
Transformation
A majority of organizations are still on the 2nd-platform
of organizations are operating on the 2nd Platform IT or 3rd Platform IT Transformational stage67%
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
IT-Enabled Business Processes
Technology-Enabled Services
Digitally-Enabled Products
Automating Business Processes Transforming Business Processes Creating Digitally-Enabled
Products and Services
pg 9
Because Digitally-Enabled Customer Experiences Are the Prize
pg 10
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
1st Way to Accelerate IT Transformation: Vision
3TechnologyLead the Dialog on
Emerging
Technologies
2IT TalentAttract and Retain a
New Generation of
IT Talent
VisionMove Outside
Your Process
Comfort Zone
1
Business Innovation ITCreating Technology-
Enabled Products
2nd Platform ITAutomating Business
Processes
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
IT-Enabled Business Processes
Technology-Enabled Services
Digitally-Enabled Products
Automating Business Processes Transforming Business Processes Creating Digitally-Enabled
Products and Services
Recommendation: Get Outside Your Process Comfort ZonePercentage of companies who think the way they can create business innovation is by…
10% 54% 36%
pg 11
pg 12
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
2nd Way to Accelerate IT Transformation: IT Talent
3TechnologyLead the Dialog on
Emerging
Technologies
2IT TalentAttract and Retain a
New Generation of
IT Talent
VisionMove Outside
Your Process
Comfort Zone
1
Business Innovation ITWinning the Talent Wars
2nd Platform ITCompeting for Talent
pg 13
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
Source: IDC’s 2015 IT Staing Study – April, 2015, n=139
Recommendation: Develop Talent Programs Around What Millennials Want from Work
of organizations are actively seeking to attract millennials49%
Top practices IT organizations use to retain millenials
Assign them
to challenging
projects.
Offer relaxed
dress codes.
Are flexible in
terms of where
they work.
Use more
social media
technologies.
Give millennials
access to cutting
edge technology.
51% 38% 34% 34% 32%
pg 14
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
3rd Way to Accelerate IT Transformation: Technology
3TechnologyLead the Dialog on
Emerging
Technologies
2IT TalentAttract and Retain a
New Generation of
IT Talent
VisionMove Outside
Your Process
Comfort Zone
1
Business Innovation ITIT Drives Emerging
Technology Adoption
2nd Platform ITLine of Business Drives
Emerging Technology
Adoption
pg 15
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
By 2020…
Recommendation: Consider These Technologies to Accelerate Digital Transformation
3D Printing10% of all consumer purchases will be
produced on demand with additive
manufacturing technologies.
IoT70% of original equipment
manufacturers will create new revenue
streams based on the Internet of Things.
Cognitive Systems35% of Fortune 1000 will use
prescriptive-enabled services to
improve customer experiences in
near real time.
Augmented RealityManufacturers will reduce service labor
costs by 1/3rd with natural interfaces.
Robotics and Drones80% of manufacturers will recognize supply
chain efficiencies within warehousing
networks with robotics.
Next Gen SecurityPassword memorization will be reduced
by 50% as consumers access mobile
devices biometrically.
pg 16
An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation
4 Through efective partnerships with line-of-business peers, you will create an IT organization that drives the development of innovative products and innovative ways of engaging with your customers.
4 By cultivating IT talent that is business oriented and wired for innovation, you will be leading the transformation of your organization’s workforce.
4 By introducing emerging technologies to the business in unique use cases, you will position your organization to be an industry disruptor.
Next Steps to Transforming Your BusinessTechnology leaders are in a unique position to accelerate digital transformation
For more information, please visit: http://www.vmware.com/ciovantage