cio summit 2013 - mc nally

Competing in 2020:6 Initiatives CIOs Must Get Right Today

David McNally

Vice President, IT Executive Advisor

February 6, 2013

2

Agenda

2020: Where We Are Headed

The 6 Initiatives CIOs Must Get Right in 2013

The CIO Change Agenda

Essential Guidance

Questions and Answers

© IDC Visit us at IDC.com and follow us on Twitter: @IDC and @IDCInsights

The 3rd Platform Shift:From IT Productivity to Business Productivity

PublicSafety

Omnichannel Retail

Smart Buildings Connected

Health

Smart Cities

Intelligent Industries

ConnectedVehicles

Smart Grid

MobilePayments

3

InnovationInformation

ServicesSystems

Business

Agility

IT

Agility

3rd Platform Implications for CIOs

3

On the Right Track:CIO’s 2013 Personal Agenda

In 2013, which of the following goals will be top of your personal agenda as CIO? Select top 3 goals.


Implement a more rigorous process to evaluate new ideas for IT to take on

Re-skill existing IT talent

More effectively attract new IT talent

Carve out more IT budget for new projects/innovative projects

Focus IT organization on better understanding the requirements of the consumers

Better align IT with the business

Foster a culture within IT where IT more often provides a qualified "yes" to the business

Foster a culture within IT that drives more innovation

Focus the IT organization more on business strategy than technology strategy

0% 5% 10% 15% 20% 25%

USWETotal

n = 70WE respondents = 21; US respondents = 49Source: IDC 2013 CIO Agenda Survey, Fall 2012

4

5

Agenda




Essential Guidance



By 2016, LOB executives will be directly involved in 80% of new IT investments

#1. New Working Relationships with the Business

6© IDC Visit us at IDC.com and follow us on Twitter: @IDC and @IDCInsights

It is time to revisit IT Planning, Governance, and Portfolio Management methods

Of the new internal IT projects initiated at your company this year, what percentage will be led under the following

scenarios?

N = 57Source: IDC 2013 CIO Sentiment Survey, Fall 2012

Prediction

Companies will initiate an average of 40 new IT projects in 2013 (with or without IT)

58% of IT investments in 2013 will involve direct participation by LOB executives

Businesses participation in IT projects will grow to 80% in 3 years

The implications are vast on how the CIO works with the line of business

Situation Assessment

Cloud, social and mobile services are the great equalizers of the corporate machinery

Notable instances of CEOs & CFOs driving the migration to Cloud and Managed Services

Project solely led / managed by the LOBs

Project led / managed by LOBs, but subject to review by IT

Project jointly led / managed by IT and the LOBs

Project solely led / managed by IT

0% 10% 20% 30% 40% 50%

8%

17%

33%

42%

7

#2. A “Cloud First” Strategy


Cloud Agenda Items for 2013

n= 47Source: IDC CIO Cloud Study. April-June, 2012

Prediction Today, only 23% of enterprises have a “cloud

first” strategy for new IT purchases Cloud architecture standards, cloud service

management processes and cloud migration paths will spur grow

Experience in cloud initiatives will address the current “skills gap” identified by many CIOs

CFOs Will Accelerate “Cloud First”


Software vendors aggressively investing in cloud

SaaS provides a direct linkage between solutions and business demand in a self-service model

Cloud will be required platform for some industry specific analytics based solutions

70% of CIOs will Embrace a “Cloud First” Strategy in 2016

#3. A Mobile Application Strategy


Prediction

In 2013, 33% of all new apps will target a mobile form factor

IT must decide on the Mobile OS and device strategy as 46% of mobile app budget goes towards maintenance

More apps, integration and multi-platform development will drive 60% of new mobile app development to IT services providers in 2013.

Enterprise mobile app penetration will force either: a move to a standard corporate-liable devices (for compatibility) or multi-platform development

Situation Assessment “Mobile devices are the new primary design point” Development portfolios skewed toward

customers, sales, and service functions

Mobile and Non-Mobile Devices

Mobile Only Devices

Non-Mobile Only Devices

0% 20% 40% 60% 80%

16%

17%

67%

What % of new Apps will be for Mobile Devices vs. Non-Mobile Devices

IDC’s CIO Mobile SurveyFall, 2012

8

By 2013, one third of all new application development will target a mobile form factorBy 2013, one third of all new application development will target a mobile form factor

9

#4. An Enterprise Social Network Strategy


Prediction

CIOs will seek out business sponsors in 2013 to move enterprise social networks beyond the pilot stage

Social tools will be integrated with enterprise apps connecting people inside and outside the firewall

Solutions for collaboration and file sharing will remain popular projects, owned by the CIO

E-mail persists but becomes more social


Cultural fit is essential to success Business case can be difficult - 82% of CIOs are

unable “. . . to accurately measure the ROI of our social business apps,” according to IDC social survey.

Security, compliance and IP protection will remain barriers. 68% of U.S. CIOs have no formal policies regarding data retention of social data in place

Social business maturity often starts with experimentation (a pilot)

Enterprise social networks move beyond pilot stage with business sponsorship

10

#5. An Analytics Strategy for Intelligent Solutions

The Challenges CIOs Will Face


Prediction

Get ready for a whole new IT project - more experimenting, less predictive outcomes; shortage of talent; and, 60 day project plans.

Talent (both IT and analytics) needs to be able to create answers to undefined questions

Situation Assessment Big data/analytics projects are changing the

way businesses make decisions CIOs must understand how to succeed Data architecture, data quality and data

governance are major gaps in large enterprises The technology will be easy when compared to

the business case Seeking major funding for a rapid development

with no certain value

Poor data quality

Insufficient specialized analytical skills required for use

Design and deployment time is too lengthy

Insufficient specialized IT skill-sets required for implementation

Data integration is very complex

High costs of technology

Insufficient computing resources

22%

27%

28%

31%

40%

47%

22%

Business Analytics Challenges

Source: IDC 2012 Vertical IT & Communications SurveyN = 2699

Lack of business support and/or business units do not understand the benefits of Big Data

Not knowing how to decide which technology is best/most appropriate technology for different types of Big Data analysis

Not having enough or the right analytics staff to analyze the data

Not having enough or the right IT skills to manage Big Data projects

Cost of technology infrastructure

Deciding what data is relevant (what data to keep/store and what data to discard)

9%

9%

10%

11%

13%

25%

Big Data Challenges

Big Data & Analytics projects will be like no other IT project

11

#6. IT Talent for the 2020 IT Organization

Prediction

CIOs have a wide range of IT talent issues highly correlated to location and industry including:

Recruiting Retention Talent Development – Skills and Leadership Performance Management

Inability to access new skill sets will limit an IT innovation


CIOs will need to cultivate best practices in IT talent strategies:

Assess current state and today’s needs Define future organization and skill needs Create the internal talent strategy Re-think sourcing strategies to fill the gap Assessing external IT talent


51%49%

Building IT Systems

Governing and Managing IT Systems

Out of the IT FTE in 2013, what percent do you estimate will be allocated to

the following activities?

N = 57Source: IDC 2013 CIO Sentiment Survey, Fall 2012

47%

53%

Building IT Systems

Governing and Managing IT Systems

2018 2013

IT Talent will be become the biggest barrier to innovation

12

Agenda




Essential Guidance



13

What Will the CIO’s Role Look Like in 2020?


Operational CIO Business Services Manager Chief Innovation Officer

1993 90% 10% 0%

2013 70% 20% 10%

2018 10% 40% 50%

Goal Keep the Lights on Provide an agile portfolio of Business Services

Business Innovator

Focus Costs and Risk Service Excellence Business Value

Jobs Scope Data Center, IT Ops Both Business and Technology Service Catalog

Business Processes, Capabilities and Analytics

Prediction

By 2018, 50% of business executives will view their CIO primarily as a partner for business innovation and improvement. The other 50% will see them as owners of costs, risk and services.

While CIOs may need to play all three roles, the key is business perception. This has broad implications on the CIO Agenda.

The transition from a portfolio of systems & technologies to a portfolio of services positions the CIO to engage in business innovation and improvement.

By 2018, 50% of Business Execs will view the CIO as a Business Innovator

CIOs can own the Change Agenda to reshape IT

• Run IT Like a Business

• Become a world class provider of Business Services

• IT Strategies that transform IT (if not the business)

• Sell the business value of Agility and the 3rd Platform

• Plan your Legacy Migration Strategy

• Get out of the data center business

• Move to a Zero Capital funding model

• Foster 3rd Platform Innovation in IT - Cloud, Mobile, Social, and Big Data / Analytics

14

“If we don’t sell change someone else will!”

Run IT Like a Business – Account Management Separate IT Systems from Business Services

Business Relationship Managers• Source Information Services both internally and externally• Develop Service Metrics• Serve middle management – the source of much innovation

CIO

Ops.App. Dev. InfrastructureArch.RelationshipMgt.

IT Management

Services“Business Service

Strategy, Sourcing and Innovation”

“IT Service Management - Competing for Services”

15

Apps, Infrastructure & Operations compete for market share

Architecture manages an Extended Information Architecture

and Service Integration

16

Run IT Like a Business – IT StrategyStrategy Maps can link the IT Agenda to the Business Plan

** Based on The Balanced Scorecard, Kaplan/Norton

Financial

Custo

mer

Operational

Technology

Theme: Pricing Elasticity based on Market Insight

Gross Margin Improvement

Sales Efficiency

Customize Pricing

Special Offerings

Market-based Product Pricing

Mobile Pricing Tools

Market Analytics

Business Driven

Top down

Strategy

17

Run IT Like a Business – IT StrategyStrategies can also target Agility, Service Integration, etc

Capabilities

Solutions

Technology

Architecture

Theme: Data Quality and Accessibility

Analytics / Insights

Enterprise Data

Warehouse

Integration (EAI & ETL)

Business Intelligence

Tools

Data Cleansing

Architecture

** Based on The Balanced Scorecard, Kaplan/Norton

Mobile Pricing Tools

Market Analytics

Capabilities

Driven

Bottom Up

Strategy

Fostering 3rd Platform Innovation in ITEarly Adopters took small steps in the right direction

Cloud• Migration to Public Cloud for development and testing

• Architecture reviews, Service Integration and Data Integration for SaaS solutions

• Update Sourcing practices to respond to Cloud Services

Mobile - 1/3 of all new Application Development will target mobile

• In-house mobile development pilots

• Moving field, sales, and support apps to mobile solutions

Social• Adoption of File sharing and Collaboration tools both within IT and for projects

• Offer solutions to remote worker, sales and field operations

• Develop Unified Communications solutions

Big Data / Analytics• Adoption of Open Source Tools and Cloud Services for Big Data

• Rewriting legacy apps in Pig Latin

• Identify dynamic data sources

18

19

Agenda




Essential Guidance



Essential Guidance “IT’s about the Information not the Technology”

Adapt and Thrive!

Redefine the Role of the CIO before the business does!

Manage Business Relationships the way your best vendor would

Develop Business Service Management metrics

Develop IT strategies that create Agility

Foster 3rd Platform innovation within IT

Plan for an Extended Enterprise Architecture

Get ready for IaaS as a CFO imperative

Next Gen Sourcing and IT Talent strategies will enable the transition to Information Services

20

The right portfolio of services and systems will enable the agile enterprise and

separate winners from losers

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 21

Questions and Discussion

David McNally

Vice President, IT Executive Advisor

[email protected]

IDC is the premier independent global market intelligence, events, and advisory firm for information technology, telecommunications, and consumer technology markets

IDC is a subsidiary of IDG, the world's leading technology media, events and research company

IDC has been delivering IT intelligence, industry analysis, market data, and strategic guidance since its 1964 founding by Patrick McGovern

More than 1,060 IDC analysts, including in-house statisticians and economists, provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries

Our multilingual, multicultural workforce surveys over 300,000 technology users and decision makers annually, delivering unrivaled coverage

We advise IT professionals on making more effective technology decisions by providing insightful fact-based research and consulting services

IDC Overview

22


IDC’s IT Executive ProgramsWhy IDC IT Executive ProgramsIDC's IT Executive Programs consists of a family of research programs intended to help today's time-constrained IT executives make more effective technology decisions.

The program offers accurate and timely fact-based research and programs that will assist IT executives in mitigating technology risks, maximizing the effectiveness of IT investments, identifying and capitalizing on new opportunities, and bringing forth solutions that are aligned with the organization's business objectives.

Our IDC IT Executive Program offers you: Flexible options for a program that is right for you Easy analyst access A CIO Advisor Peer group through the CIO Executive Council


IDC’s CIO Agenda Practice

Why IDC's CIO AgendaIDC's CIO Agenda research program recognizes that an IT executive's time is better spent engaging the business around IT than managing day-to-day IT operations.

CIO Agenda supports IT executives in creatinga business-based IT organization by providing strategies, best practices, frameworks, and advice around the most important issues on a CIO's agenda: Emerging IT Strategies Case Studies on IT Transformations Peer Benchmarking on Best Practices IT Performance Metrics IT Spending Surveys

Deriving Business

Value through

Information

Planning for End

User Devices of

the Future

Incorporating Social

into Workplace

Collaboration

Replatforming

Around the

Cloud

Governance, Risk &

Compliance

Framework

IT Enterprise

Architecture

IT Financial Mgmt

Strategies

IT Staffing &

Organizational

Strategies

Service Mgmt

Strategies

App/Dev

Architecture and

Strategies

Data Mgmt,

Governance &

Information Security

IT Sourcing &

Procurement

Strategies

Working with the

Business

Innovation

Strategies

Maximizing IT’s

Performance


IDC’s IT Benchmarking and Sourcing Practice

Why IDC for Benchmarking and SourcingIDC's Benchmarking and Sourcing research is a set of solutions designed to ensure that your technology purchasing and deployment decisions are optimized.

With 50% of the Fortune 500 companies having accessed our research, IDC is the pioneer in helping organizations establish best in class and benchmarking metrics.

Our IT Benchmarking and Sourcing research will enable you to: Drive spending efficiencies to allocate savings

towards innovation Get the best pricing for your strategic IT

investments Validate costs against peers Stay ahead of market trends within the IT

industry


IDC’s Mobility Practice

Why IDC for Mobility DecisionsOur fact-based global research team of 20 full time analysts and over 100 contributing analysts worldwide covering mobile devices, network infrastructure, telecommunication services, software, and semiconductors can help you with the following mobility decisions:

How is mobile technology transforming the way our organization needs to interact with customers, employees, and partners?

How do I manage corporate-liable and employee-liable devices?

What is the threshold for Corp App Store adoption? What are my organization's must-have security,

access management and compliance features for mobility?

What are the different usability functions and security requirements for different workers and types of information?

What security components do I incorporate into an app?

What capabilities can mobile management systems provide to support CIO needs?

IDC’s Mobile Device Decision Framework


IDC’s Cloud Practice

Why IDC for CloudOur fact-based global research team of 33 full time analysts and over 100 contributing analysts worldwide covering cloud applications, platforms, infrastructure and service around cloud help you with the following cloud decisions:

How do organizations assess their readiness for cloud?

What impact should cloud have on the data center? What should organizations be looking out for in cloud-

based service-level contracts? What strategies should organizations deploy to ensure

optimal cost/performance in their cloud contracts? What are strategies for buyers to link contracts and

payments to user success? What options do companies have to protect their data

and IP in cloud deployments? What do organizations need to know about secure

cloud transactions?

IDC’s Cloud Progress Monitor

Source: IDC Cloud Study, 2012


IDC’s Big Data and Analytics Practice

Why IDC for Big Data and AnalyticsOur fact-based global research team of 7 full time analysts and over 100 contributing analysts worldwide covering analytics and data management software, industry applications, server and storage infrastructure, high performance computing, and professional services help you with the following big data and analytics decisions:

How do I measure the readiness of my organization for effectively leveraging big data trends and technologies?

How have my peers harnessed big data technologies and trends?

What best practices are emerging? How have others defined and generated value? How will big data technologies evolve? What leading indicator should I use to pace the level

of technology evolution around big data? How should I ready my IT infrastructure and

architectures?

Big Data/Analytics Challenges


IDC’s Social Practice

Why IDC for Social BusinessOur fact-based global research team of 21 full time social business analysts and over 100 contributing analysts worldwide covering social customer relationship management, enterprise 2.0 and collaboration, partner networks, supplier networks, unified communications, social commerce and social infrastructure, can help you with the following social business decisions:

How can organizations use social business for a competitive advantage?

How do CIOs enable and support the adoption of social business tools across the business?

What’s business value can be created by integrating social technologies with enterprise systems?

How do organizations overcome the challenges they face when enabling /allowing employees to use social business tools?

How do organizations calculate ROI and risk? How do CIOs create an architecture that can change

as our expectations of the social network change?

Social Software Adoption

30

IDC is the premier global provider of market intelligence, advisory services, and

events for the information technology, telecommunications, and consumer

technology markets. IDC helps IT professionals, business executives, and the

investment community make fact-based decisions on technology purchases

and business strategy. More than 1,000 IDC analysts provide global, regional,

and local expertise on technology and industry opportunities and trends in over

110 countries worldwide.

30© IDC Visit us at IDC.com and follow us on Twitter: @IDC and @IDCInsights

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