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IT Transformation & Modernization Strategies
Joseph PucciarelliGroup VP & IT Executive Advisor
© IDC
IT Transformation and Modernization
1 Made sure that everyone is involved in and responsible for IT governance
2Created structure in which IT and business leaders support and sponsor technology projects
3 Made business leaders fluent in IT, and IT leaders fluent in business
Key Success Elements:
Results"We changed every application
and put governance and the right organization skills in place."
▪ Closed four datacenters and moved its infrastructure to the public cloud
▪ Established C-level committee to chart strategic direction
▪ Created IT operating committee with IT and business managers to review projects on a monthly basis
© IDC 2Source: IDC Doc #US43696218
© IDC 3
IT Transformation & Modernization Strategies
DevOps
Network Transformation
Process Automation
Data Excellence
© IDC 4
IT Transformation & Modernization Strategies
Network Transformation
Data Excellence
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Data: Huge Increases in Volume Expected
By 2022, 50%+ of global GDP will be digitized, with growth in every industry driven by digitally enhanced offerings, operations, and relationships and almost $7 trillion in IT-related spending in 2019–2022
By 2024, artificial intelligence (AI)–enabled user interfaces and process automation will replace one-third of today's screen-based apps
By 2022, 30% of enterprises will use conversational speech technology for customer engagement
Source: Source: IDC CIO FutureScape, 2019 – Doc #US44390218
Data Excellence
© IDC
Data, Data, Data Everywhere but No Follow-through
Source: IDC’s Global DataSphere 2018
Source: IDC MaturityScape: Data Excellence 1.0, IDC #US44840819
Data Excellence
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“Data Governance is not a project.”
1. Arrived at executive agreement on the need for company data governance
2. Established data stewards
3. Created working methods for focusing on business value
1 Data quality and regulatory compliance is a continuous, evolving part of almost everyone's job
2 Data governance is embedded in business processes
Results
IDC PeerScape: Practices to Revitalize Data Governance in the Data-Driven Enterprise - Jul 2018 - Doc # US44118318IDC© IDC 7
Data Mgmt Requires Strategic Governance Data Excellence
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IT Transformation & Modernization Strategies
Process Automation
Network Transformation
Data Excellence
▪ Mimic actions at the software presentation layer and interact with computer applications:
▪ Process transactions, trigger responses
▪ Enter, retrieve, manipulate data
▪ Communicate with other systems
▪ Provide compliance and risk mgmt
▪ Adapt to changes
▪ Collect data for intelligent analytics
▪ Enable workers to focus more on creative "brain work" and human touch with customers
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Source: IDC's Western European AI Survey, 2018 (n = 350)
RPA Takes Over Repetitive Mundane Tasks
Key Benefits of RPA Software
Process Automation
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Robotic Process Automation
Workflows Suitable for RPA
Source: Midsize Enterprise Summit CIO Survey, IDC, August 2019; N=138
Process Automation
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▪ Rule-based
▪ Structured data
▪ Large volume, simple, repetitive, mundane tasks
▪ Multisystem, interoperable
▪ Standardized workflow
▪ Data exchange/integration between heterogeneous systems
▪ High demand for precision and consistence in data manipulation
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IT Transformation & Modernization Strategies
Process Automation
Network Transformation
Data Excellence
Network Transformation: Foundational Layer for IT Transformation
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Enterprise network pain points▪ In a multi-cloud world, applications are not just back-end systems of record, they are increasingly systems of engagement▪ Generate revenue, expedite business outcomes
▪ Increase customer engagement and intimacy
▪ Drive competitive differentiation
▪ 90% of enterprises report they have a multi-cloud posture
▪ Applications are inherently distributed
▪ Redefines the datacenter – and the datacenter network
Network Transformation
Intelligent Infrastructures
Industry competes for innovation at scale.Many organizations will make significant facilities investments in small local, metro and edge IT. Lights out operations and Facilities as a Service flexible consumption models will be the norm.
Compute
GPUs / FPGAs / ASICs
Core / Cloud
Edge Computing
Network
SDN / SD-WAN
Self-Driving Networks
Edge Networking
Storage
Software-Defined Storage
All-Flash Arrays
Hyperconverged Infra
Network Transformation
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IT Transformation & Modernization Strategies
Process Automation
Network Transformation
Data Excellence DevOps
By 2024, 70% of firms will have principally adopted DevOps, accelerating software delivery and improving quality, security, and compliance via data integration, auto triggers, and predictive ALM.
By 2021, 65% of CIOs Will Expand Agile/DevOps Practices into the Wider Business to Achieve the Velocity Necessary for Innovation, Execution, and Change.
DevOps: Becoming a Mainstream Strategy for Midmarket
Source: IDC CIO FutureScape, 2019 – Doc #US44390218
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Source: US – Midsize Enterprise Summit CIO Survey, IDC, August 2019; N=138
DevOps
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Q How quickly, on average, does your org. push through a code change for an individual, moderate-complexity application and deliver that change into production?
DevOps: Opportunities and More Opportunities
25% Commit Code Wkly
54%
Source: IDC US, DevOps Survey 2018, July 2018; N=100
DevOps Automation BenefitsQ What are the top features you look for when investing in automation solutions
for your DevOps initiatives?
DevOps
Source: US – Midsize Enterprise Summit CIO Survey, IDC, August 2019; N=138
Mainstreaming DevOps with Business Metrics
“IT needed to be able to demonstrate progress to the
business.”
Broke down silos of software development between headquarters and individual stores
Adopted metrics that were readily understood by the business
Changed from being project focused to product-focused and customer-centric
1 The Business’s critical metrics showed measurable improvements.
2Made it easier for IT to align with the business, and articulate the positive effect of DevOps
3
Key Success Elements:
Enabled business to easily comprehend and embrace changes
Results
© IDC 17Source: IDC Doc #US45026419
DevOps
Essential Guidance:
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THE ICEBERG THAT SINKS IT TRANSFORMATION
Change Mgmt
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Change Mgmt: Mandatory
Create the best possible organization vision, plan,
and transformation strategy
Conceiving and delivering the new IT organizations
with collective brainpower
Embed new skills and practices
Enabling wider deployment throughout the organization
Create an "autonomic" and resilient leadership team
Creating an adaptive, responsive, and resilient IT
organization
Unify the leadership team with common
vision, language, and actions
Aligning the team to work towards the same goals
The CIO's IT Organizational Transformation Management Guide: Leading Your Direct Reports-Doc #US44243518
Essential Guidance
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OKRs: Objectives and Key ResultsCombining Top-level Priorities & Bottom-up Innovation
“…for any framework to work, it had to satisfy three criteria for us, right out of the box: It had to give people the freedom to set goals themselves, it couldn't be laborious to implement, and it had to allow us to set stretch goals."
Matthew Milan, CEO
• Instituted an OKR-based system focused around achieving 60–70% of stretch goals
• System caused managers and workers to feel challenged, even slightly nervous, about meeting goals
• But not at the expense of their compensation!
Normative’sOKR Success Elements
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Essential Guidance
For More Information
LinkedInhttps://www.linkedin.com/company/idc
Twitterhttps://twitter.com/@IDC
Joseph [email protected]
© IDC 21
https://www.linkedin.com/in/joepucciarelli/
www.idc.com
22
IDC is the premier global provider of market intelligence, advisory services, and events for the
information technology, telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community make fact-based decisions on
technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and
local expertise on technology and industry opportunities and trends in over 110 countries worldwide.
Terms of Use: Except as otherwise noted, the information enclosed is the intellectual property of IDC,
copyright 2019. Reproduction is forbidden unless authorized; contact [email protected] for
information. All rights reserved.
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