Is the Traditional IT Department on Its Way...

SESSION 404 Thursday, April 14, 10:00am - 11:00am Track: Service Management Excellence

Is the Traditional IT Department on Its Way Out?

David Cannon VP, Group Director, Forrester [email protected]

Session Description Some say the traditional IT department is on its way out;but is it really? What could possibly replace it? If it does go away, how can we prepare? What happens if we all stay the course and do nothing? Far from a message of doom and gloom, David Cannon will present extensive research to predict what could happen in the next ten years and identify what every IT professional and executive can do to help prepare for these eventualities. Speaker Background David Cannon is the author of Service Strategy (ITIL 2011) and a seasoned veteran of three major industry shifts. In his role at Forrester, he works with analysts to identify future benefits and challenges of technology management and determine how professionals can best position themselves for future success.

mailto:[email protected]

Is the Traditional IT Department on its Way Out?

David Cannon

Forrester

WHERE ARE WE TODAY?

© 2016 Forrester Research, Inc. Reproduction Prohibited 3

Source: Enterprise And SMB Hardware Survey, North America And Europe, Q3 2011, Q3 2012, Q3 2013

*Business Technographics Global Infrastructure Survey, Q3 2014

Base: 981 (2011), 977 (2012), 794 (2013), 3190 (2014) North American and European IT decision-makers

Cost And Security Drive the Business Case…

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

Supporting use of Apple Mac computers

Enabling employees to use their personal PCs as a primary workPC

Supporting access for tablets

Improving compliance

Reducing PC energy consumption expenses

Improving our ability to restore functionality and data afterloss/crash

Increasing manageability, including patching

Providing flexible remote access

Supporting employees to work from anywhere

Better security

Lowering costs

Q32011

Q32012

Q32013

Q32014


Source: Forrester Consulting, June, 2014

Base: 300 IT Managers/Administrators with responsibility for virtual desktop/application environments at 1,000+ employee firms

…But User Satisfaction Determines Success

27%

35%

52%

54%

54%

60%

Number of desktop-related security breaches or events

Mean time to resolve incidents

Desktop management and other related operational costs

Windows desktop and application-related helpdesk incident counts

End user experience and performance metrics such as applicationlaunch times, rendering speed, etc.

End user satisfaction

© 2014 Forrester Research, Inc. Reproduction Prohibited 5© 2014 Forrester Research, Inc. Reproduction Prohibited 5

Shifting the agenda from Traditional IT to Business Technology is fueling business growth

0

20

40

60

80

100

120

140

160

1970s 1980s 1990s 2000s 2010 2015Onwards

Bu

sin

ess

Go

al A

chie

vem

en

t

Gains from IT Consolidation and StandardizationGains from pursuing the BT agenda


IT is being squeezed between business demands and competition from vendors

Business GrowthDemands for Innovation

Demands to Reduce Run Costs

Technology CommoditizationCloud Offerings

Better Understanding of Customer’s Business

AN INDUSTRY DIVIDEDA true story


One Company – Two Businesses

Legacy services to enterprise customers

New consumer retail services


One Company – Two Businesses

Legacy Business New Business

Reduce cost Invest

Standardize Innovate

Specialize Integrate teams

Keep the lights on Change constantly

Align to the SDLC Align to outcomes

WHAT’S HAPPENING?

INNOVATION


Innovation is growing


Internal Innovation

Innovate

Operate

Source / Automate

Commoditize

Differentiated products and services…

…are delivered consistently and securely

Over time operations become easier and cheaper – but less differentiated…

…and become the prime candidates for sourcing

Commoditized components can be used in new ways to fuel innovation


Innovation disguises value – it makes companies think that value is only in the emerging areas

Innovate

Operate

Source

Commoditize

Legacy Business

New Business

INTEGRATED CYCLES


Innovation and speed are changing how we spend money; and manage technology

Plan

Build

Run

Build Run

Support

PlanInnovate

Operate

Source

Commoditize

A NEW TYPE OF CUSTOMER AND USER


We can see when we look at the data…


Career-focused employees


The App Gap is Increasing


The Future…

› The smartphone will become the primary personal

computing device by 2020

› But major investments in Windows apps will remain

› More virtualization of the Windows environment

› Control of devices will continue to shift to workforce

› IT control will be on app services and data

› Digital workspaces will remain relevant through 2020

PRODUCTIVITY AND PERSONAL TECHNOLOGY USE ARE COINCIDING


The Current Knowledge Workplace…


The Flow Workplace


Change your Support Call Profile

http://media.cms.bmc.com/documents/bmc-how-to-build-a-concierge-bar.pdf

http://media.cms.bmc.com/documents/bmc-how-to-build-a-concierge-bar.pdf

WHAT DO WE DO?

Service Management is at a crossroads. Your choices from now on will determine where your career goes:

Business, Basement or Cloud


Know your Place

Internal

Service

Provider

Customer

Funding

Service

Business Value

Business

Unit

Revenue

Service

Business Investment


If you stay in traditional IT:

›The good news:

• Technical skills will be needed just as much in the

future as they are today

• You will continue to have a good job

› In other news…

• You will be working in one of three places:

› In the back office with little, if any, direct business

contact

› For an outsourcing company that specializes in

managing the components you commoditized

› For a cloud company that delivers commoditized

technology services


What about IT Service Management?

› Everything you’ve done until now will continue to be valid

› IT Service Management will continue to find new ways to do what it does today, but it will not do many new things

› Research has shown that, after 20 years, ITSM practices have not progressed much beyond Service Desk, Incident, Problem and Change Management

› That is pretty much where ITSM is going to stay –and the majority of ITIL® guidance will be under-utilized


If you move to where technology is fuelling business growth

›Technical skills are important, but secondary

›You will need to:

• understand the business you’re in

• learn the language of value

• apply what you know to new modes of

development and operations

• continually question everything you know about

technology


Change your Agenda


What about Service Management?

›Service Management will continue to play a vital

role, but it will be different

›Traditional modes have been criticized for being

too focused on technology, and too inflexible

›Service Management in future will need to focus

on:

• Service portfolio and investment management

• Integrating the build/run cycles

• Strategic as well as operational change and control


Move beyond Support to Value

Take this…. ….and add this

Delivering outputs Enabling outcomes

Measuring IT performance Measuring customer experience

Service Catalog Service Portfolio

Technology Expertise Business Expertise

Technology ArchitectureService Architecture and

Governance

WHAT SKILLS DO I NEED TO BUILD


If you want to continue with a career in operations support or technical expertise:

›Action:

• No additional action required

›Skills to build:

• Keeping track of new technology

• Automation

• Performance monitoring and control

• Incident and problem resolution

• Network / Data Center Operations


If you want to shift towards business technology management

›Action: Build out your Service Portfolio

›Skills to build:

• Business acumen

• Big picture, critical thinking

• Relationship management

• Financial measurement and reporting

• Demand, Capacity and Availability Management

• Vendor Management

• Acting as a broker

Thank you for attending this session.

Please don’t forget to complete a session evaluation!

Thank you

forrester.com

David Cannon

+1 972-971-8191

[email protected]

@itilso

mailto:[email protected]

Is the Traditional IT Department on Its Way...

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