How Digital Business Redefines the Value of Technology 40/Incontri sul tema... · CONFIDENTIAL AND...

CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

How Digital Business Redefines the Value of TechnologyBianca F. Granetto

Research Vice President

Udine, Palazzo Torriani, 28 novembre 2017

1 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

The New Value of Technology: From Operating Cost to Growth Enabler

[RANKED BY MENTIONS WITHIN TOP 3 - % OF RESPONDENTS]Q01. To start, please tell us about your organization’s top 5 strategic business priorities for the next 2 years (2017/2018)n=388 CEOs and Sr. Business Executives

Growth58%

IT related31% Corporate

23% Product20%

Marketing8%

Workforce16%

Financial16%

Cost management

11%

Sales6%

Qualityimprovements

7%

Customer21%

GRC7%

CEOs Strategic Business Priorities 2018 - Top 12

2 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.2 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

CEO & CIO Perspective on Digital


…………Market conditions Talent and skills…………..…………….Weak economy Technology impediments.

…………………Competition Capital………………………………..Regulations & laws Product weakness………..………..Political conditions Operating capacity……….…………………………Costs Innovation………………….…………..Supply problems Organisation structure…..

….Customer needs shifting Profit margin……………………………..Exchange rates Employee issues………….…………..Market shrinking Customer satisfaction……

……………………….Climate Speed……………………….……………Macro volatility Change capability………..

………….Price competition Strategy weakness……….……Distribution challenges Cash flow…………………..………………………Taxation Inefficiency………………...…………..Digital disruption Brand impact………………………………………Oil price Corporate culture…………

….Financial infrastructure Other……………………...........……………………..Inflation CONFIDENTIAL……………....…………………..Corruption NA………………………............

NONE…………………..............

14%14%

13%12%

8%8%

6%5%

4%3%

3%3%3%2%2%

1%1%1%1%0,3%

External factors14%

9%9%

4%4%4%

3%3%3%

3%3%3%

2%2%

2%2%2%

10%1%

0,3%0,3%

Internal Factors

Q02a) What are the two most significant factors acting as constraints on your company’s growth?

CEOs: Constraints to growthn=388 CEOs and Sr. Business Executives

[RANKED BY MENTIONS WITHIN TOP 2 - % OF RESPONDENTS]


11%

27%29%

27%

6%8%

23%

31%

29%

9%7%

17%

29%

35%

11%

No revisions Minor revisions Moderate revisions Major revisions Total revision

2015/16 Over the last two years

2017/18 Over the next two

years

2019/21Longer term

Revise the high level business objectives and/or key performance measures of exec team to drive digital change

CEOs: Driving Digital Transformation - Success Criteria

n=359 CEOs and Sr. Business Executives; Base: Have digital initiative (Q06);

8%5%

4%3%3%3%

2%2%2%2%2%2%1%1%1%1%1%

1%3%

18%18%

6%12%

0% 10% 20%

RevenueSales transactions

Customer satisfactionProfit

Channel activityROI

Customer engagementEfficiency & processs (internal)

CustomersCost

ProductSpeed

GrowthMarket shareChannel shift

ProductivitySales leads

Sales force effectivenessOther

NOT METRICNONE

CONFIDENTIALNO REPLY

Primary metric of digital transformation progress and success

Q07c. What is your primary metric of digital transformation progress and success?

N=388 CEOs and Sr. Business Executives

Q07a/b. To what extent have you revised/ will you revise the high level business objectives and/or key performance measures of your executive team to drive digital change over the last two years /over next two years and longer term?

*answer given was not a metric

*


Q09. How are you funding your digital strategy or transformation?

CEOs: Funding Digital Transformation

[RANK ORDERED BY TOP 3]

22%

27%

11%

10%

4%

6%

4%

3%

3%

5%

2%

4%

17%

14%

12%

7%

6%

4%

5%

5%

3%

4%

3%

13%

5%

7%

7%

3%

3%

4%

4%

4%

1%

3%

1%

51%

46%

30%

25%

13%

12%

12%

11%

11%

10%

8%

5%

0% 10% 20% 30% 40% 50% 60%

Internally self-funding – new digital revenue pays the way

Within existing operating budgets

Funding investment from reserves

Increasing the relevant operating budgets by cutting others

Increasing the relevant operating budgets by reducing operating profitability

Raising new capital from investors, as bonds

Raising new capital from investors as equity

Borrowing capital – from commercial lenders

Off-balance-sheet entities

Making business divestitures to fund investment

Making asset disposals (such as land or intellectual property)

OtherRank 1 Rank 2 Rank 3 Sum

n=361 CEOs and Sr. Business Executives; Base: Have digital initiative (Q06)


CIOs: Digitalization Spend is IncreasingQ. Approximately what percentage of your IT budget is spent on digitalization (capital plus operations but excluding depreciation)?Q. By 2018, approximately what percentage of your IT budget will be spent on digitalization (capital plus operations but excluding depreciation)?

Today 2018

Average (Mean) Percentage of IT Budget Spend on Digitalization

Typical(n = 1,427)

Trailing(n = 103)

18%28%

16%7%

Number of respondents = 2,527 CIOs.Source: 2017 Gartner CIO Survey

Italy


Which of these best describes the stage of your organization’s digital initiative - i.e., your organization’s digitalization efforts?

CIOs: What Stage 2018?

Number of respondents = 3,025 CIOs.Source: 2018 Gartner CIO Survey

17%

32%

9%

20%

28%

26%

14%

3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Not applicable

Desire/Ambition

Designing

Delivering

Scaling

Harvesting/Refining

Going to the Next Level

27%


CIOs: will be spending new or additional funding in 2018?

What are the technology areas where your organization will be spending the highest amount of new or additional funding in 2018? n = 2,847; Base: Excludes don't knowWhat are the technology areas where your organization will be reducing funding by the highest amount in 2018 compared with 2017? n = 2,362; Base: Excludes don't know

Percentage of respondents increasing investment

Percentage of respondents decreasing investment

19%13%12%

12%10%

8%6%

6%5%5%

8%30%

2%3%3%3%

4%4%

8%

BI/analyticsCloud services/solution

Digitalization/digital marketingCyber/information security

Enterprise resource planningInfrastructure and data center

Customer relationship managementMobility and mobility applications

Networking, voice and data communicationsArtificial intelligence/machine learning

People/talent managementSoftware licensing/maintenance/support

Communication/connectivitySoftware development or upgrades

Optimizing operationsHosting services/server

Legacy systems

5°2°

3°


49% Participates in a digital ecosystem – Interact with its principal ecosystem: Running (co-creating or providing) it:

60% Selling (delivering) through it: 34% Buying (consuming) through it: 40%

Are your ecosystem partners mostly …– Enterprise all over the globe: 53%– Enterprise in your local area: 47%

CIOs: Master Digital Ecosystems

Source: 2017 Gartner CIO Survey. (2420 CIO respondents)

22,4

42,2

86,3

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

2 years ago Today 2 years from now

How many important digital partners did your organization have two years ago? How many important digital partners does it have today? How many important digital partners do you expect it to have two years from now? REPORT MEAN SUMMARY

61%

42%

260

128


Top Recommendations


Don't Just Think Outside the Box: Destroy the Box

What is the business driver for change? Risk of no change? Challenge the dominant

practices: Are there alternatives? What new skills, competencies

and experience do you need? Are you committing to a

long-term plan?


Hit the reset button!

Cloud Migration Plan? Alignment to digital transformation revision

cycles? Alignment to desired business outcomes? What's changed in architecting software? How are you developing and delivering software

today?

…Ready for Digital Scale, Rich and Reach?

Do you need an IT Transformation Plan?


The Means: Emerging + Strategic Technologies = New Business Models THE INTELLIGENT THEME explores how AI is seeping into virtually every existing

technology and creating entirely new technology categories. The exploitation of AI will be a major battleground for technology providers through 2022. Using AI for well-scoped and targeted purposes delivers more flexible, insightful and increasingly autonomous systems

THE DIGITAL THEME focuses on blending the digital and physical worlds to create a natural and immersive, digitally enhanced experience. As the amount of data that things produce increases exponentially, compute power shifts to the edge to process stream data and send summary data to central systems. Digital trends, along with opportunities enabled by AI, are driving the next generation of digital business and the creation of digital business ecosystems

THE MESH THEME refers to exploiting connections between an expanding set of people and businesses — as well as devices, content and services — to deliver digital business outcomes. The mesh demands new capabilities that reduce friction, provide in-depth security and respond to events across these connections


Cloud-enabledDigital consignmentTiered-value partnershipSpinoff/diversificationConfederated

Cloud-enabled business models use the cloud as their primary mechanism to conduct business. This infrastructure supports the delivery of products and services that are wholly digital or partly digital, partly physical They generate revenue through ad-

sponsored, freemium and subscription approaches. The cloud enables these providers to offer goods and services that would not be possible otherwise or could not be delivered as conveniently

5 Emerging Digital Business Models:Cloud Enabled


Cloud-enabled Business Model Canvas?

Thank You!

How Digital Business Redefines the Value of Technology 40/Incontri sul tema... · CONFIDENTIAL AND...

Documents

Transcript of How Digital Business Redefines the Value of Technology 40/Incontri sul tema... · CONFIDENTIAL AND...