The Bi-Modal CIO: Konsten att leda i två...

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This 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. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Else-Marie Östling

[email protected]

The Bi-Modal CIO: Konsten att leda i två tempon


© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Informed by Gartner's Annual CIO Survey

150 Gartner Analysts & Executive Partners

2,339

Chief Information Officers

77

Countries $300

Billion of IT spending

Presentatör

Presentationsanteckningar

Gartner has been conducting a CIO survey for more than a decade. This year, more than 2,300 CIOs responded. We have respondents from most major industries and geographies. Every year, we ask a small number of general/demographic questions, but focus most of the precious time our survey participants give us on a few key hypotheses. This year, we tested hypotheses around innovations in sourcing, deployments of public cloud solutions, digitalization and the chief digital officer (CDO) role, and the notion of bimodal IT — that is, running two different types of IT: traditional and nonlinear.



We Are Entering a Third Era of Enterprise IT

IT Craftsmanship IT Industrialization Digitalization

ADAPT

ENGAGE

CREATE

IDEATE

OFFER

MONETIZE

Focus Technology Processes Business models

Capabilities Programming, system management

IT management, service management Digital leadership

Engagement Isolated, disengaged internally and externally

Treat colleagues as customers, unengaged with

external customers

Treat colleagues as partners, engage external

customers

Outputs and Outcomes

Sporadic automation and innovation, frequent issues

Services and solutions, efficiency and effectiveness

Digital business innovation, new types of value

We are here

Presentatör


The year 2014 will be one of dual goals: responding to ongoing needs for efficiency and growth, but also shifting to exploit a fundamentally different, digital paradigm. Ignoring either of these is not an option. The behaviors we mastered in the second era of enterprise IT are potential hindrances to exploiting digitalization. We need to develop new capabilities. In 2014, CIOs face the challenge of bridging the second and third eras. They have to build digital leadership and bimodal capability, while renovating the core of IT infrastructure and capability for the digital future. "The Y2K crisis was, in part, a result of shortsightedness on the part of the mad inventors. The same risk is inherent in the third era, where the pace of innovation may lead to longer-term brittleness. The third era must build on the lessons of the previous two." Chris Howard, managing vice president and distinguished analyst, Gartner



Bimodal IT Offers a Way to Get Unstuck

Waterfall development

Known vendors Strong governance

Minimized risk Technology teams

Traditional Mode Nonlinear Mode

"The reality is that you do have to operate at two speeds, and some of that you do by creating dedicated teams for each. Focusing on the big systems, making them run smooth, while at the same time having disrupters to innovate, together with marketing and the customer, exploiting digital." — Willem Eelman, Global CIO, Unilever

Agile dev. Small/

Innovative partners

Lightweight "Just good

enough" governance Managed risk

Multidisciplinary teams

Stuck in the middle

"Fit for no one"

Presentatör


To capture digital opportunities, CIOs need to deal with speed, innovation and uncertainty. This requires operating two modes of enterprise IT: conventional and nonlinear. There are inherent tensions between doing IT right and doing IT fast; doing IT safely and doing IT innovatively; and working the plan and adapting. The second era of enterprise IT has been all about planning IT right and doing IT right, being predictable and creating value, while maximizing control and minimizing risk. In short, it has been about running IT like a business within a business. However, the third era — digitalization — poses additional challenges, such as the following "nonlinear" needs: The need to absorb disruptive new business models enabled by new digital technologies The need to scale up and down in Internet time The need to react fast to capture business moments The need to flex painlessly to support business model innovations The need to explore and evolve solutions that are surrounded by uncertainty Conventional IT doesn't do well under such conditions. In fact, trying to capture these needs with one mode of IT is impossible. Since the needs present a bimodal distribution, so must the capabilities to deliver on them. CIOs must develop an additional mode of IT to be deployed under three circumstances: Nonlinear speed: when there is a need for low latency and/or highly accelerated development Nonlinear innovation: when there is a need for a high level of disruptive innovation Nonlinear direction: when there is a need to continually readjust to deal with high levels of uncertainty



Bi-Modal IT

5



The two modes are deeply different - tweaking Mode 1 cannot create Mode 2

6



Bimodal IT vs. pace layering

7



When to use each mode

8



The bimodal continuum: From tactical to strategic

9



Project Bimodal: Coalesce scattered capabilities

10



Mode 1 governance: plan-driven, approval-based

11

• Top-down decision making by IT steering committee

• Objective: tight control focused on sequential project execution — to deliver reliability, coherence and consistency

• Key reference point original plan:



Mode 2 governance: empirical, process-based

12

• Determined by how much a Mode 2 project will impact Mode 1 (see figure on page 32)

• Role and process integration at each governance level between the two modes, from strategic planning down through project and portfolio management (PPM), EA and operations

• Takes an iterative, process-based approach based on strictly followed principles, with continual references to the new reality (what has been learned from the project so far, and feedback from the field); sense-and-respond capability vitally important

• Objective: ability to pivot or completely change direction quickly, and adjust as you go



Rate your Mode 2 development capability

13



Rate your Mode 2 development capability

14



Mode 2 business engagement: Clustered, not sequential

15



The bimodal continuum: From tactical to strategic

16



The five paradoxes of bi-modal leadership

17



Using the five paradoxes to define digital business leadership

18



Social and task leadership work in conjunction

19



The 3 D's: Digital business leadership tasks

20



The Gartner Business Model Framework

21



Matrix: Social competencies, task competencies and roles

22



The team responsible for digital innovation (weighted)

23



Leadership networks

24



Digital business leadership action plan

25



The digital divide between what IT can provide and what the enterprise needs

26


This 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. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Else-Marie Östling [email protected]



Bimodal Critical Capabilities

Mindset and Talent Architecture


Teaming Syncing Modes

Engagement Funding

Governance I&O

Iterative Methods Innovation Mgmt.

Structure

Adaptive Sourcing

Project Bimodal Enterprise Bimodal

Low Maturity Limited Value

High Maturity High Value

28

Presentatör


Most IT organizations start on the left side of the continuum shown in the previous slide, because the risk is contained, there are fewer outside dependencies, the benefits come quickly and the team can focus on something concrete. In a Project Bimodal state, leaders should focus on mastering lightweight governance and iterative software development. They need new skills, particularly in business engagement, and they need a new organizational structure that protects Mode 2. CIOs can reach a Project Bimodal state without much change required from the business. This requires four capabilities: creating a high-performance team that accepts uncertainty as part of the game; creating agile, lean or other iterative development capabilities; developing governance that is empirical, continuous and process based; and constructing a separate organizational structure for Mode 2.



Project Bimodal — Mode 1 Dominates


Mindset and Talent

Teaming

Engagement

Governance

Iterative Methods

Project Bimodal

Structure

Success mostly under IT control

Fragmented, not systemic, capability

Project, not capability-focused

Lower-risk projects, with limited scope and limited Mode 1 impact

29

Presentatör


In a "Project Bimodal" state, leaders focus on mastering lightweight governance and iterative software development. They need new skills, particularly in business engagement. And they need a new organizational structure that protects Mode 2.



Enterprise Bimodal — Mode 2 Dominates

Bimodal Critical Success Factors

Architecture

Syncing Modes

Funding

I&O

Innovation Mgmt.

Adaptive Sourcing

Enterprise Bimodal

A committed executive team that accepts more operational ambiguity

A well-architected digital core on which to innovate

Top digital talent Synching between

modes

30

Presentatör


A really exceptional bimodal IT organization leads to a bimodal business. As bimodal matures, taking on bigger and bigger challenges, success increasingly depends on business change, not IT change. This stage is called Enterprise Bimodal. Being successful here is not about the quantity of projects. It is about having high credibility with the executive team, a healthy digital core and the right IT skills. These qualities take time to develop and are usually not directly controlled by the CIO or the IT organization, as shown in the figure above.

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