Mike Cisek, Research Director Vivek Swaminathan, Research ... · organizational growth and...
Transcript of Mike Cisek, Research Director Vivek Swaminathan, Research ... · organizational growth and...
Leadership Vision for 2020: Midsize Enterprise CIO1 May 2018
Mike Cisek, Research DirectorVivek Swaminathan, Research Director
There is nothing so useless as doing efficiently that which should not be done at all.
Peter Drucker
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Implementing Digital Platforms — A Team EffortCIO
Business
Intelligence
EcosystemsCustomers
IT SystemsThings
Applications
Data and Analytics
Program and Portfolio Management
Sourcing and Vendor Management
Enterprise Architecture
and Technology Innovation
Infrastructure and Operations
Security and Risk
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Implementing Digital Platforms — A MSE Team PerspectiveCIO Business
Intelligence
EcosystemsCustomers
IT SystemsThings
Applications
Data and Analytics
Program and Portfolio Management
Sourcing and Vendor Management
Enterprise Architecture
and Technology Innovation
Infrastructure and Operations
Security and Risk
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
■ Culture (48%) is the biggest barrier to digital transformation at scale.
■ Seventy-one percent believe digital business has created a greater capacity for change and a more open mindset in IT.
Digital
MSE CIOs Must Drive Business and Technology Innovation
■ Top business objectives: –Growth (28%) –Digital transformation (14%) –Innovation (10%)
■ Sixty percent of MSE CIOs tasked with building business strategy and planning, 69% with optimizing enterprise operations
Business
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Digital
Lead Innovation (37%) and Digital transformation
(CDO) (36%)
Business
Forty-one percent report their success criteria is tied to business performance
MSE CIOs Must Drive Business and Technology Innovation
MSE CIOs
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Not Every MSE Has the Necessary Digital AcumenBusiness Leaders Who Understand How Digitization Applies to Their Company
n = 286 - 592.Source: CEB Digital Enterprise 2020 Survey.
Senior Managers and Executive Leaders
Mid-Level Managers
Frontline Managers
0%
50%
100%
44%34% 31%
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Techies
High
LowLow High
Stakeholders’ Digital Ability
Stakeholders’ Digital Ambitions
Dreamers
Digital Business
Innovators
Neophytes
Source: CEB analysis.
Not Every MSE Has the Necessary Digital AcumenAmbition Versus Ability
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Key Issues
What Major Trends Are Affecting
MSE CIOs?
What Competencies Are Needed in
the Digital Age?
Developing a Digital Leadership
Vision With a Midsize Enterprise
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Business Trends MSE CIOs Must Respond To
28%Growth/
Market Share
14%Digital Business/
Digital Transformation
10% Innovation, R&D, New Products and Services
8% Technology
Improvements
8%Workforce Focus
8% Customer Focus
8% Corporate M&A, New
Business Consolidation
8% Security, Safety
and Risk
Thinking About Your Organization as a Whole, What Would You Say Are the Its Top Business Priorities for the Next Two Years ?
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Business Trends MSE CIOs Must Respond To
28%Growth/
Market Share
14%Digital Business/
Digital Transformation
10% Innovation, R&D, New Products and Services
8% Technology
Improvements
8%Workforce Focus
8% Customer Focus
8% Corporate M&A, New
Business Consolidation
8% Security, Safety
and Risk
Thinking About Your Organization as a Whole, What Would You Say Are the Its Top Business Priorities for the Next Two Years ?
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
The Technologies Midsize Enterprises Must Leverage
Cloud-Inspired Hybrid Infrastructure
Selective Utilization of “Anything as a Service (XaaS)”
Enhanced Security Detection and Response Capabilities
Platforms That Optimize Operations and Customer Experience
Exploiting Data and Analytics to Drive Business Transformation
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Key Issues
What Major Trends Are Affecting
MSE CIOs?
What Competencies Are Needed in
the Digital Age?
Developing a Digital Leadership
Vision With a Midsize Enterprise
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
7
PMO
Adaptive Business Engagement 2
Agile, DevOps, Continuous Delivery
3
Cloud-Based Scalable Infrastructure6
14
Customer-Centric Design
Applications Building Blocks5
Enterprise Architecture
Information Risk
Data Strategy Over Ownership
8
Adaptive Skills and Mindset
9
Strategy Over Governance, Management Over Operations
Products Over Projects
Operations and Support
Infrastructure Engineering
Mastery of the Digital Operating Model
Source: CEB analysis.
Applications Development
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Execute Against the Core Competencies That Affect ChangeMSEs have an entirely different economic, cultural and managerial environment
It is a mistake to contrast the decision making behavior of MSE with that of large companies
Economic Discipline
Dyadic Communication
Right-Sized Approaches
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Key Issues
What Major Trends Are Affecting
MSE CIOs?
What Competencies Are Needed in
the Digital Age?
Developing a Digital Leadership
Vision With a Midsize Enterprise
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978
Becoming a Digital Evangelist at Service King
Solution Highlights:
1. Build a Product Line Operating Model
2. Embed Product Design Principles in Delivery Lifecycle
3. Instill a Climate of Proactive Innovation
Derek KramerChief Information
Officer, Service King
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The PayoffNumber of New Product Patents
Source: Service King; CEB analysis.
02017
7
0
4
8
Total valuation potential sums up to ~$30 M.
2015
High Revenue Growth Rate
Source: Service King; CEB analysis.
0
500 M
1 B
2015
~$800 M
2017
$1 B+
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“We’ve created a range of brand new products you wouldn’t associate with a chain of collision repair centers. IT evolved from being a cost center supporting business operations to a P&L that generates revenue for Service King. And simultaneously, we’re changing what customers and stakeholders typically expect from the automotive service industry.”
Derek KramerCIO, Service King
The Payoff
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Reinvent Applications for the Digital World
Deliver Dynamic, “Improvised” Experiences
People
BusinessThings
Digital
Phys
ical
Processing and Delivery
Processing and Initiation
Processing and Initiation
Initiation Supplier
ProcessingProcessing
Processing
Transport
Transport
Processing
Fulfillment
FulfillmentFulfillment
New Request
Fulfillment
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Reimagine the Data Center
IntelligenceOperations (AIOps),Infrastructure, Application, Digital (Contextual) Experience Platforms
Adaptive Security ArchitecturesPrevent, Detect, Respond, Predict IAM, CASB, Cloud Data & Security
XaaS/Unified ManagementInfrastructure, Platform, Software
Cloud Inspired Hybrid InfrastructureHyperconverged, Software Defined SDx, ROBO, Edge (IoT)
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15% 30%
BI Analytics
Cloud Services/Solutions
ERP
Mobility/Mobile Applications
Digitalization/Digital Marketing
Infrastructure Data Center
CRM
Network, Voice & Data Communications
0%
21%
10%
7%
5%
4%
10%
6%
7%
Link Investment Decisions to Business ValueWhich Technology Area Do You Think Is Most Important to Help Your Business Differentiate and Win/Is Most Crucial to Achieving Your Organization Mission?
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Exploit Data and Analytics to Drive Transformation
■ IT Financial transparency ■ Profitability — Margins ■ Cost Optimization
■ Optimizing Operations ■ Workforce Focus ■ Customer Focus
■ Managing Resource Utilization ■ Operational Excellence ■ Intelligent Notification
Economic
Operations (Business)
IT Operations
Innovation (Vertical)
■ Maximize Emerging Technology Investment ■ IoT — Manufacturing, Supply Chain etc. ■ AI/ML — Customer Satisfaction, Fraud Detection
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Recommendations Enable Digital BusinessRelationships are the catalyst for the success or failure of digital business transformation.
Develop Economic DisciplineIT budget sustainability, Self-Funding initiatives, Transparency tied to organizational growth and profitability.
Build Transformational Capabilities Invest in infrastructure, XaaS, SDx Solutions with native integration, automation and intelligence capabilities.
1
2
3
Strive to Achieve Singularity Singularity of process, tools, environments and vendors will maximize efficiency in within MSEs.
Continuous Improvement (Kaizen) Investments that yield TCO and IT operational efficiency and/or deliver differentiation and a tangible ROI fund digital transformation by freeing up resources and reducing technical dept.
4
5
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