The Characteristics of Your Future Technology Capabilities

Rapid, Successive and at Scalea joint OutSystems/Deloitte perspective

Rapid, Successive and at Scale

The Need to Look Beyond the Tech“There is nothing new under the sun,” one might argue. Technological disruption, such as the introduction of ERP, the launch of the World Wide Web, and the advent of mobile apps is part of life in big tech.

This publication does not dispute this premise. It merely makes the point that irrespective of the individual technologies involved, 9 shifts are playing out at the same time, that (1) are all relevant and highly interconnected, (2) need synchronization, (3) will always involve organizational “pain,” and (4) need the buy-in of the whole executive team.

The Magic Is in the CausalityDeloitte has created a framework and language that enables organizations to digitally future-proof their entire company by identifying the specific causalities between 9 shifts that will determine how they deliver business-relevant digital technologies rapidly, successively and at scale:

Rapidly: Moving from idea to operational offering in short timeframes, taking advantage of the window of opportunity.

Successively: Creating innovations repeatedly, applying a ‘scale or fail’ data-driven mindset where management kills those innovations that do not deliver on their promise rapidly.

At scale: Robotizing, industrializing, and automating the large-scale deployment of technology and upgrading isolated digital pilots into company-wide applications that are secure by design and expandable across markets and geographies.

The Future Isn’t What It Used to BeOrganizations that seamlessly adapt to new circumstances master a set of “business of technology” capabilities that make optimal use of nine shifts that - according to Deloitte’s research - are rapidly changing technology operating models. One of them - shift 9 - concerns a considerable investment into an internal platform strategy because it will allow them to:

1. Provide the core IT capabilities to develop, deploy, and run products that leverage the capabilities of the platform.

2. Carve out the business logic in separate digital products and make them land on the platform for consistent reuse.

3. Run multiple products on the same platform, with teams independently working on those products.

4. Create a standard set of technology capabilities that can be provisioned to product teams on demand.

5. Industrialize this whole process to make it faster, repetitive, and scalable.

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Rapid, Successive and at Scale

What Is OutSystems

… and What Does It Do?OutSystems enables organizations to visually develop their applications, easily integrate with any system, and change applications at the speed of business. A single, integrated development environment covers the entire development lifecycle. It is possible to develop an application once by modeling the business logic and then deliver it seamlessly across all platforms and form factors. OutSystems also enables the development of complex application portfolios and supports multiple digital teams. In fact, OutSystems supports digital factories that use company-wide standards that teams can provision on demand for their digital products.

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Why Deloitte and OutSystems?According to international research firm Gartner, by 2024, three-quarters of large enterprises will be using low-code development platforms, amounting to more than 65% of application development activity. Gartner has named OutSystems a Leader in this space.

For Deloitte, the capabilities illustrated in the diagram have always been strong arguments for pursuing an alliance with OutSystems. Over the past 13 years, Deloitte and OutSystems have jointly built tremendous experience in this field, concurrently delivering more than 100 projects across the world. This publication describes the collective lessons learned.

OUTSYSTEMS PLATFORM OVERVIEW

Full-Stack Integrate and Extend

ExperiencesFull-Lifecycle

Empower DevelopersExtend reach outside IT

Never start from scratchLimitless and easy integration

Reach all touchpointsWidest range of digital experiences

Be agile and continuously changeAutomated software lifecycle

CI/CD, Monitoring, User Feedback, Governance

UI REST, SOAP, Open API

Web, Mobile

2500+ open-souce components

Cloud Service

EnterpriseSystems

APIs, Web Services

Databases

Chat, Voice, SMS, Email

Logic

Process

Data

Scale Security Performance Flexible Deployment

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Rapid, Successive and at Scale

The Nine Shifts Framework

It’s All About CausalitiesTo monetize both short-term and long-term digital opportunities, organizations require their business of technology approach to take into account each of these nine shifts. Since they are not isolated phenomena, a holistic approach will unveil company-specific interdependencies that need to be acknowledged. Missing one or more big shifts will likely result in a business of technology approach that is ill-equipped for the digital era. The framework provides for a language allowing business and tech teams collectively to appreciate fully the implications involved.

Technology Shifts, Booster Shifts and Showstopper ShiftsThe left side represents the fundamental changes in the way digital value nowadays is delivered to and by the business: faster, repetitive, and at scale. The right side (shifts 7-9) illustrates the three major technology shifts that, to a degree, are beyond your control: the technology push makes them happen. In the middle, we find six shifts that you can control: three booster shifts (blue) and three showstopper shifts (green). Since every company will have a different market position, different ambitions translated into a strategy, different risk and investment appetites, and different legacy environments, the outcome of this structured analysis will – by definition – be tailor made. What additional technology operating model value will the OutSystems platform deployed by Deloitte deliver to your technology landscape as a whole? The following sections explore the answers to that question.

Booster Shifts Showstopper Shifts

Ability to: shift to DevOps, scale to enterprise &

adjust risk appetite and experimentation

Ability to transform jobs as tasks disappear, change and emerge; acquire new digital skills & adapt to changing

operating principles

Digital experience (past decade) & Digital reality

(next decade)

Ability to constantly manage a portfolio of innovation initiatives as part of a fluid

ecosystem

Ability to: operate in different modes with fit-for-purpose/agile funding mechanisms, govern tech processes &

manage risk control

Data analytics (past decade) & Cognitive (next

decade)

Tech-fluent business roles becoming the norm,

business-embedded IT increases

Digital DNA, digital leadership & culture and

values of 'being digital' embedding deeply in the

fabric of the entire enterprise

Cloud (past decade) & Platforms (next decade)

InnovateRapidly

InnovateSuccessively

InnovateAt Scale

Business of Technology Shifts

Technology Macro Forces Shifts

1.

2.

3.

4.

5.

6.

7.

8.

9.

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Rapid, Successive and at Scale

1. Agility and SpeedAs disruption increases, market realities will force organizations to adapt by changing course in real-time.

Booster ShiftOrganizations must break away from traditional supply/demand models and adopt a “fast-moving experimenter” approach. Multiple smaller experiments running in parallel either scale if they are successful or are killed. This requires mature Agile and DevOps capabilities, combined with concepts such as Lean Start-up and Design Thinking. Scaling Agile at the enterprise level means redefining capabilities such as enterprise architecture development so that they are incremental, iterative, and just-in-time.

Where OutSystems HelpsThe OutSystems platform allows digital products and services to be continuously delivered and updated with the agility the business demands. Built-in automation across the entire delivery lifecycle ensures speed in delivering and changing apps. Deploying an app requires no more than a single click. Teams spend time on delivering business outcomes instead of worrying about a multitude of technologies.

Where Deloitte HelpsAs a Scaled Agile Gold Partner, Deloitte leverages SAFe capabilities and applies them to the complete OutSystems stack. As part of the client engagement:

• Deloitte secures the transfer of knowledge and best practices to help them become self-supportive

• Deloitte helps create a sustainable industrialized set of OutSystems capabilities.

Jose Ferrari CaretoDigital and IT Officer

For us, OutSystems was the right decision: we needed the speed. In the Digital Factory that we have implemented, we use OutSystems, that enables our business units to

deliver measurable EBIT.

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Rapid, Successive and at Scale

2. Innovation Through EcosystemsThe days when “IT” would only buy licenses from a technology vendor are gone.

Booster ShiftIncreasingly organizations (public and private) are forced to operate within value webs and ecosystems and for that, they need to innovate collectively. As a result, they develop abilities to contract, co-create and innovate within these networks mashing data, algorithms, and capabilities in real-time.

Where OutSystems HelpsBy design, the OutSystems platform caters to these rapidly emerging technological alliances and partnerships. It serves as a launching pad to try and scale or fail both legacy applications and innovative new technologies rapidly. The architectural design of the platform industrializes deployment at scale. The platform comes standard with over 250 connectors and APIs that allow quick and standardized connection to existing legacy systems, exposing them in the cloud as web services.

Where Deloitte HelpsOne of the other significant characteristics of shift 2 is the concept of Joint Risk Taking and Value Creation. Deloitte developed a specific IP Business Model that clients use to increase time to market and mitigate risk. In this business model, Deloitte acts as a Software Service Provider, the Deloitte Client as a Business Partner, and OutSystems as the Platform Vendor. Jointly the client and Deloitte resell the solution to other interested industry players utilizing Deloitte’s global reach.

Carlos AlvesHead of IT at Sogrape

Deloitte’s IP business model lowered our investment yet still guaranteed the best available talent. It allowed us

to take a broader industry vision since we knew that the solution would be re-sold.

In such co-creation deals TRUST is fundamental. As our founder Fernando Guedes used to say: First we make

friends, then we do business.

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3. Blurring BoundariesThe end of the typical demand/supply IT model: multidisciplinary teams.

Booster ShiftFueled by trends such as agile, the cloud, and increasing tech fluency in the ranks of lines of business, we see a shift whereby IT capabilities are being organized closer to or embedded in the business. Traditional distinctions between business and technology jobs are fading away; the whole organization is becoming “digital.” A whole new breed of employees emerges that Deloitte refers to as “purple people.”

Where OutSystems HelpsOutSystems supports business and tech multidisciplinary teams. Business experts can design and develop technology themselves. The platform neatly governs the overall activity of everyone on the team so there is no uncontrolled use of the platform. Recent research shows that Agile leaders distinguish themselves by expanding the pool of those who can participate in developing software, while controlling security, privacy and compliance at the platform level.

Where Deloitte HelpsBased on over 100 OutSystems implementation projects, Deloitte has developed a Digital Transformation Lab approach. Central to the model is a Garage and Studio facility that enables fast ideation, experimentation, and testing that fuses inputs from business and IT professionals. It consists of 4 phases: Ideate – Validate – Experiment – Run. This flow is mirrored by a factory concept that – using all available capabilities of the OutSystems platform – allows for the secure and proper scaling of those ideas and applications that actually do deliver measurable business value.

Bastian Gomes de FreitasFUEL General Manager at Deloitte Portugal

Our ambition was to support employees and their respective coaches with a better understanding of

their work-life balance. The OutSystems platform in combination with Azure Machine Learning provides

them with individual feedback.

The OutSystems Platform enabled my team and me to rapidly create apps that gathered data from individual

participants and their wearables. The app creates tangible feedback that our employees genuinely

appreciate, specifically after app’s 3.0 release during the COVID-19 pandemic.

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Rapid, Successive and at Scale

4. Future Tech WorkforceNew roles versus evolving roles versus diminishing roles – what will be the strategic competencies that our organization needs to own?

Showstopper ShiftEnterprises will experience major talent challenges as existing IT tasks and capabilities disappear, remaining IT tasks transform, and new IT tasks emerge. Technologies such as AI, the IoT, and robotics will “robotize away” many human-intensive IT tasks in the existing tech team. Given these “9 shifts”, what roles will be diminishing,, which ones will stay but need to evolve, and what will be the new roles we need to start recruiting for as of today?

Where OutSystems HelpsThe OutSystems Talent Playbook portrays a clear picture of what type of workforce and process it takes to deliver the full benefits of the platform. It pictures a growth map for organizations to mature over time from a modest “smallest low-code factory” into a full flash industrialized Digital Factory. It includes the skill profiles required across different roles such as tech leads, UX/UI designers, front and back-end developers, and testers.

Where Deloitte HelpsDeloitte can help in two different ways. Firstly, by identifying the different digital and technology skills required moving forward and keeping the balance between current skills and profiles needed to support the existing technology estate versus skills and job profiles crucial to transform digitally. Deloitte has a Human Capital Group specialized in this space.

Secondly, by transferring specific combinations of competencies and ways of working to the client’s tech team. For instance, how to merge security competencies from a cyber team with advanced analytics and low-code development skills.

NewRoles

EvolvingRoles

DiminishingRoles

• Data scientist

• DevOps engineer

• Ecosystem partner manager

• Cloud architect

• Agile portfolio manager

• Digital strategist

• Open talent coordinator

• Data analyst / BI expert

• Product engineer

• Sourcing manager

• Enterprise architect

• IT finance manager

• Technology leader

• IT HR manager

• Backup administrator

• IT Operations manager

• Vendor manager

• Systems engineer

• PMO coordinator

• Business Relationship Manager

• Learning manager

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Rapid, Successive and at Scale

5. Governance, Funding, and SecurityFunding secure, governed innovation at the speed of agile.

Showstopper ShiftIT’s operations and development processes are becoming nimbler and more product-focused while the finance function continues to budget, fund, and report the same way it has for decades. The result: tension between IT’s needs and finance’s procedures.

Where OutSystems HelpsOutSystems is designed so that even non-technical developers can enjoy the full benefits of the platform without jeopardizing a company’s security, risk, or privacy policies.

The OutSystems pricing model is based on two dimensions - the numbers of end-users and the criticality of the applications being created. This enables organizations to start with a smaller investment to test the viability of new concepts, and ensures that the investment aligns as scale and value increase.

Where Deloitte HelpsAs a tech and financial advisory company, Deloitte has ample experience with facilitating an internal finance/tech spending discussion on tech project portfolio management, moving from project funding to product funding. In these product-centric organizations, long-lived agile teams manage “run” and “change” for digital products, which the tech team manages in a single product backlog. With funding in place, the product manager and agile team jointly decide how to spend the budget, and reallocate if market opportunities or unexpected disruptions such as Covid-19 demand to do so.

Maria Teresa RosasHead of IT at Fidelidade Insurance

No survey will tell you whether clients will buy your new product. Hence we continuously test new

concepts. We have 23 agile squads in place and a total of 110 epics per year.

We changed the demand process and the underlying funding mechanisms. During quarterly business

priority reviews our strategic forum decides which epics scale or fail.

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Rapid, Successive and at Scale

6. Leadership and CultureWhat Digital DNA makes organisations tick?

Showstopper ShiftEven in a digital world, digital products cannot magically create value. Ideas must flow from the top down to all levels of the business and back up again. This is digital DNA. From the top, leaders provide a clear vision that poises the organization for innovation and devoting everything it can to creating value for customers. Then they give employees the tools and guidance to make it happen.

Where OutSystems HelpsDigital transformation affects a whole company and not just IT. It also changes how business gets done. Therefore, there needs to be a force to push change across your organization. Smart leaders choose OutSystems as that force. By allowing fast development, encouraging experimentation, and making it easy for everyone to collaborate on ideas and solutions, OutSystems is the DNA needed in a digital culture.

Where Deloitte HelpsBased on extensive client research with MIT/Sloan, Deloitte has valuable, data-driven insights on leadership behaviors that support best-in-class cultural digital DNA. Deloitte’s specialized Human Capital Group has developed a set of diagnostic tools and interventions for that purpose. This includes culture risks associated with misalignment between an organization’s goals for digital transformation and its employee values and behaviors.

Henrique ZacariasCentral IT Director at NOS Comunicações

Along the way we learned that we need to experiment, take risks in order to get to the best service. There is no shame in re-do it again when your final customer

tells you what to improve.

In traditional IT I knew what they were doing. In digital I formed squads and let them go with it. Leadership is more of a matrix mode where the Digital leadership

leads them where they want to go.

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Rapid, Successive and at Scale

7. From Digital Experience to Digital RealityThree macro technology forces that are beyond your control.

Macro Technology Force 1Along with cloud and data, digital has been one of the three macro forces shaping business technology innovation of the past decade. The first wave focused on creating appealing digital experiences for customers, employees, or business partners. The second wave will be all about integrating technologies such as augmented reality, virtual reality, IoT, digital twins and intelligent interfaces (voice control, virtual assistants). We refer to this as “digital reality.”

Where OutSystems HelpsThe OutSystems platform enables teams to create a wide range of compelling and engaging digital web/mobile experiences, but also integrations with new and fast-growing technologies such as virtual assistants and IoT. It delivers the full-stack front to back-end, and easily integrates with 2500 (legacy) IT-environments and modern cloud based providers. It supports the entire development lifecycle, enabling continuous delivery and continuous integration.

Where Deloitte HelpsDeloitte connects the physical and digital worlds, as evidenced by the work done with Sogrape. Bringing the multiple skills needed, as well as complementary technology partners, Deloitte’s Digital Transformation Lab secures the right way of working, and the Garage and Studio facility enables fast ideation, experimentation and testing (growth hacking). Ecosystem partners add business value to the end product through technologies such as augmented reality, virtual reality, IoT, digital twins and intelligent interfaces.

Carlos AlvesHead of IT at Sogrape

Our goal was to manage all processes between harvesting the grapes until filling the bottles. Our

Wine Connection platform (WICO) taps into sensors on all of our factory equipment (scales, pumps and other assets). We utilize our OutSystems platform

to gather data on temperature and alcohol levels to secure quality and create the best user experience for our growers and winemakers so they live their passion:

create excellent wines.

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Rapid, Successive and at Scale

8. From Data Analytics to CognitiveThree macro technology forces that are beyond your control.

Macro Technology Force 2Late in the last decade, the role of data and analytics began shifting away from analyzing what happened and real-time views to what is about to happen - with a prescribed response. In this decade and beyond, AI will be the driver of a change in scope from catering to the traditional areas of operational efficiency and risk management to value creation and growth.

Where OutSystems HelpsOutSystems integrates natively with leading database systems: SQL Server, SQL Azure, Oracle, MySQL, and DB2 on System i, or any database of choice through SDK. Developers can combine local and external data sources. Given its standardization on cloud technology, the technology stack makes it easy to consume and use different analytics and AI services. The OutSystems Data Grid component helps to build complex, scalable reactive grids fast.

The visual editor allows development teams to query and aggregate data visually making it easy to work with.

Where Deloitte HelpsAccording to Gartner’s Magic Quadrant, Deloitte is considered to be one of the global leaders in data and analytics. Deloitte’s breadth of capabilities - from AI-led strategy to delivering AI-enabled services - help clients become insight-driven and drive value out of their investments in AI, analytics and automation. The higher the analytical maturity of the organization becomes, the more valuable the OutSystems enabled apps become, for clients, employees and business partners alike. Deloitte knows what good looks like in this domain.

Antonio AlegriaHead of AI at OutSystems

OutSystems goal is to enable any company to use AI in their applications to deliver new innovative solutions.

To achieve this we aim to make Machine Learning accessible to every developer, by abstracting and automating away complexity throughout the data science lifecycle and by using the state-of-the-art

AI/ML technology.

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Rapid, Successive and at Scale

9. From Cloud to PlatformsThree macro technology forces that are beyond your control.

Macro Technology Force 3Traditionally, centralized IT departments supported the business with services such as selecting, deploying, and scaling applications, infrastructure, and sourcing partners. In the new model, business units manage applications, and IT manages the lower levels of the stack. Platforms become the interface between the two, and therefore need to be defined unambiguously.

Where OutSystems HelpsThe OutSystems platform provides the foundational layer of the technology stack, similar to network and connectivity services. It prompts standardization and consistency across business units for generic, transversal applications. It enables fluid, scalable ecosystems, but is resilient, robust, and secure at the same time. Components and business logic developed for digital product can be reused in others - easily and quickly. OutSystems reduces the complexities in the technology landscape thus allowing the business to innovate and move faster, repetitive and at scale.

Where Deloitte HelpsDeloitte will make sure that choices made regarding cloud-native applications are fully adopted in the platform strategy to leverage the investments already made in cloud architectures such as containerization. Deloitte has developed a set of tools and best practices that assist companies on their journey to the public cloud. They include a Cloud Financial Analysis and Suitability Assessment tool as well as a Migration Framework, all instrumental in plotting the architectural roadmap that will lead to the migration of certain parts of the technology landscape to the cloud.

Daniel AsseratiRisk Advisory Solutions Lead at Deloitte UK

The multitenant architecture of the OutSystems platform for us at Deloitte Risk Advisory, was the gamechanger, allowing us to offer repetitive scalable solutions selling regulatory compliance services to some of the biggest financial institutions in the world. The onboarding of a new global client has gone from 6 or even 9 months to 6 weeks, involving 5 people instead of 15, dramatically

improving our bottom line and the scalability of our compliance business.

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Rapid, Successive and at Scale

Booster Shifts Showstopper Shifts

Ability to: shift to DevOps, scale to enterprise &

adjust risk appetite and experimentation

Ability to transform jobs as tasks disappear, change and emerge; acquire new digital skills & adapt to changing

operating principles

Digital experience (past decade) & Digital reality

(next decade)

Ability to constantly manage a portfolio of innovation initiatives as part of a fluid

ecosystem

Ability to: operate in different modes with fit-for-purpose/agile funding mechanisms, govern tech processes &

manage risk control

Data analytics (past decade) & Cognitive (next

decade)

Tech-fluent business roles becoming the norm,

business-embedded IT increases

Digital DNA, digital leadership & culture and

values of 'being digital' embedding deeply in the

fabric of the entire enterprise

Cloud (past decade) & Platforms (next decade)

InnovateRapidly

InnovateSuccessively

InnovateAt Scale

Business of Technology Shifts

Technology Macro Forces Shifts

1.

2.

3.

4.

5.

6.

7.

8.

9.

It’s All About Your Organization’s Causalities

Technology Shifts, Booster Shifts, and Showstopper Shifts – How Do They Apply to My Organization?A decision to invest in a company-wide deployment of the OutSystems platform will undoubtedly bring a lot of value, but are you fully set to unlock it? With the assistance of Deloitte and OutSystems, this 9 Shifts Framework will not only help you identify this value for your specific organization, but it will also force your business counterparts to make some difficult calls (showstoppers) that need solid decision making and the collective responsibility of both business and IT executives.

Begin With the End in MindIf an organization concludes that it needs to deliver digital innovation more rapidly (1), then a move towards company-wide agile ways of working (2) would help. Backed by a strategic decision for a cloud-first and platform strategy (3), instant access to cloud-native digital technologies such as AI and Blockchain become available. These new technologies, leveraged in fluid innovation ecosystems (4), help innovate successively (5) and at scale (6) when supported by tech fluent business roles and business-embedded IT (7) with the proper digital organization (8) and data organization (9).

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Rapid, Successive and at Scale

Authors

Contributors

Diogo HenriquesDeloittedhenriques@deloitte.pt

–

Mike HughesOutSystemsmike.hughes@outsystems.com

–

Hans van GriekenTechInspirehansvangrieken@techinspire.eu

Jose Ferrari Careto Digital and IT OfficerEDP

–

Carlos Alves Head of IT at SograpeSogrape

–

Bastian Gomes de FreitasFUEL General Manager at Deloitte PortugalDeloitte

–

Maria Teresa RosasHead of ITFidelidade Insurance

Henrique ZacariasCentral IT DirectorNOS Comunicações

–

Antonio Alegria Head of AIOutSystems

–

Daniel AsseratiRisk Advisory Solutions LeadDeloitte UK

Contact usPlease reach out if you have questions or would like more information.

Deloitte OutSystems Centre of Excellence: coeoutsystems@deloitte.ptOutSystems: deloitteteam@outsystems.com

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Rapid, Successive and at Scale

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