the cio in 2020: driving innovation and growth - phil carter idc

The CIO in 2020: Driving Innovation and Growth

Philip Carter

Vice President, IDC European Research

Presentation at the Oracle Iberia CIO Innovation Day,

1st October 2014, Oracle Openworld San Francisco

68% of Iberian organizations

have gone through

a major IT re-organization

in the last 12 months

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IDC Spanish IT Executive Survey. April 2014, n=199

52% of Iberian

organizations have

created a new group

focused on

innovation



In 67% of Iberian

organizations,

the business

has become more

involved in IT strategy




Application Modernisation

Legacy Outsourcing Contracts

Data Center Strategies

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=QkOsbbJ-FHdJJM&tbnid=WDrcoqBMQ2lmvM:&ved=0CAUQjRw&url=http://personaaffairs.wordpress.com/2013/08/20/do-you-have-a-ball-chain-resume/ball-and-chain/&ei=0QmXU5gyw986pZSB-Ac&bvm=bv.68445247,d.ZGU&psig=AFQjCNG_muWJbkR8SLTzDNxCFqT6a6TGhw&ust=1402493769684934

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=QkOsbbJ-FHdJJM&tbnid=WDrcoqBMQ2lmvM:&ved=0CAUQjRw&url=http://personaaffairs.wordpress.com/2013/08/20/do-you-have-a-ball-chain-resume/ball-and-chain/&ei=0QmXU5gyw986pZSB-Ac&bvm=bv.68445247,d.ZGU&psig=AFQjCNG_muWJbkR8SLTzDNxCFqT6a6TGhw&ust=1402493769684934

3rd Platform of IT Innovation & Growth


ICT Innovation

1985-2005

ICT Innovation

2005-2020+

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The 3rd Platform is a Business Platform that is Transforming Organizations

The transformation of products and services

The transformation of workforce

The transformation of customer relationships

The transformation of business models

Governance, Risk & Compliance


In 2013, Domino’s Pizza sold £104 million worth of pizza via its mobile platform in the UK and Ireland alone

http://www.google.com/url?sa=i&rct=j&q=dominos+pizza&source=images&cd=&cad=rja&docid=HXJ5-s0DmGUw7M&tbnid=IYIU9JPRW__8WM:&ved=0CAUQjRw&url=http://choucroutegarnie.fr/choucroutes-maison/notre-mega-test-dominos-pizza/&ei=LOEAUq2nC4q1hAfFj4GQDg&bvm=bv.50310824,d.ZG4&psig=AFQjCNHB8kQspPMn22frXfNh9Abr4uyIfQ&ust=1375875753111805

http://www.google.com/url?sa=i&rct=j&q=dominos+pizza&source=images&cd=&cad=rja&docid=HXJ5-s0DmGUw7M&tbnid=IYIU9JPRW__8WM:&ved=0CAUQjRw&url=http://choucroutegarnie.fr/choucroutes-maison/notre-mega-test-dominos-pizza/&ei=LOEAUq2nC4q1hAfFj4GQDg&bvm=bv.50310824,d.ZG4&psig=AFQjCNHB8kQspPMn22frXfNh9Abr4uyIfQ&ust=1375875753111805

http://www.google.co.uk/url?sa=i&rct=j&q=dominos+mobile+app&source=images&cd=&cad=rja&docid=UDVtM45kK2-ZDM&tbnid=wL-tVr_gLqn9oM:&ved=0CAUQjRw&url=http://www.bmobilized.net/blog/dominos-pizza-android-app-serves-up-140000-downloads/&ei=WeEAUvDlI8LMhAfunYFo&bvm=bv.50310824,d.ZG4&psig=AFQjCNGPOh5zfLmC7gEfxkIchQEFHjpRUA&ust=1375875790523584

http://www.google.co.uk/url?sa=i&rct=j&q=dominos+mobile+app&source=images&cd=&cad=rja&docid=UDVtM45kK2-ZDM&tbnid=wL-tVr_gLqn9oM:&ved=0CAUQjRw&url=http://www.bmobilized.net/blog/dominos-pizza-android-app-serves-up-140000-downloads/&ei=WeEAUvDlI8LMhAfunYFo&bvm=bv.50310824,d.ZG4&psig=AFQjCNGPOh5zfLmC7gEfxkIchQEFHjpRUA&ust=1375875790523584

Managed

Business Innovation

Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform

Opportunistic

2nd Platform IT

Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption

Ad Hoc

Core IT

No effort between business and IT to coordinate or incorporate 3rd Platform technology

Repeatable

3rd Platform IT

Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption

Optimized

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.

Opportunistic

2nd Platform IT


Managed

Business Innovation


Source: IDC, Enterprise IT Transformation Maturity Model, 2014

Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



Transforming to a Business Innovation IT OrgIDC’s Enterprise IT Transformation Maturity Model


Managed

Business Innovation


Opportunistic

2nd Platform IT


Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



15%

BusinessInnovation

6%

Core IT

4%

BusinessTransformation

Are You Transforming Your IT Org Fast Enough?


67% of Organizations are Operating at a2nd Platform IT or 3rd Platform IT Transformational Stage

40%

2nd PlatformIT

27%

3rd PlatformIT

Source: IDC's Enterprise IT Transformation MaturityScape Benchmark Study, August, 2014. n-156

Move outside your process comfort zone

Deliver technology the way the business wants

Cultivate tomorrow’s IT talent today

1 2 3

Accelerating Transformation Requires You to…



48

Kaiser Permanente

Develop a Multi-Pronged Approach

Source: www.kaiserpermanente.org.

EnterpriseArchitecture #1 Hardest to Hire

How difficult is it to hire suitable candidates?

The 3rd Platform will Create a Skills GapThe Most Difficult IT Positions to Staff

Source: IDC CIO Summit, April, 2014.


Risk Management Contracts

Run

Build

Buy

Short Term

Transactional Model

2nd Platform Vendor Sourcing Models

Trusted Relationship Contracts

Data Driven Management

Integrate

Acquire Capability

Long Term

Relationship Model

3rd Platform Vendor Sourcing Models

3rd Platform Requires a Different Sourcing Model





1 2 3



Urgency, Speed, Time to Market =

The Next Wave of Shadow IT


%6According to ITPercent of Technology

Spending that is Shadow

Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014

According to BusinessPercent of Technology


%6 %6IAccording to ITPercent of Technology


6

Shadow IT: What You Don’t Know Will Hurt You


How you communicate with the business is just as important as

what you communicate

Source: Magna International

Selling Your Services





1 2 3



IT-enabled Services

Transforming Business Processes

IT-enabled Business Processes

Automating Business Processes

IT-enabled Products

Creating IT-enabled Products

IT-enabled Products is the End Game


62%

IT-enabled Products

Creating IT-enabled Products

IT-enabled Services

Transforming Business Processes

IT-enabled Business Processes

Automating Business Processes

18%20%

Moving Outside Your Comfort Zone

Source: IDC 2014



Best Practices

Need to Evolve

This is what continuous improvement can get you

Product Enhancements

Innovation

Continuous Improvement Versus Innovation


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The transformation of products and services

The transformation of workforce

The transformation of customer relationships

The transformation of business models

Think innovatively. Think new trajectories.