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Why Enterprise Digital Strategies Must Drive IT Modernization Today's Digital Strategies face a potentially crippling trend: the separation of the Digital Transformation effort from the day-to-day running of the Information Technology (IT) shop. The lure of this bifurcation is unmistakable. CIOs have their hands full simply keeping older systems of record up and running, while the Digital effort is entrepreneurial, fast-moving, and deals with customer-facing systems of engagement. It's as though they are two separate worlds, with different priorities and different ways of operating. Don't fall into this trap. Remember, those crusty old systems run the business, as they have for years. They contain invaluable data, institutional knowledge, and support for the core business processes that drive the bottom line. Only those organizations who properly leverage their deep IT assets will prevail with their Digital Strategies long term. The good news: the Digital Transformation effort can -- and should -- drive modernization in IT. The secret is to take a flexible, business-driven approach that takes modernization one step at a time, and focuses on what's important. Attendees of this session will: * Gain a better perspective on the role IT can and should play in Digital Transformation initiatives * Understand why "old ways of doing things" with technology won't work, and why * Learn a straightforward, practical approach for facilitating successful change within IT in support of Digital Transformation goals
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Copyright © 2014, Intellyx, LLC
1
Why Enterprise Digital Strategies Must Drive IT
Modernization
Jason BloombergPresident
@theebizwizard
Copyright © 2014, Intellyx, LLC2
About Jason Bloomberg
• President of Intellyx• Global Advisory Firm focused on Digital
Transformation & Business Agility
• Write for Forbes and Wired on Digital Transformation
• Run the Bloomberg Agile Architecture Certification Course around the world
• Buy my newest book, The Agile Architecture Revolution
Copyright © 2014, Intellyx, LLC3
Digital Transformation
What are you transforming?
Digital Transformation = Business Transformation
Customer Experience
Technology
Internal Organizatio
n
All of the Above
Copyright © 2014, Intellyx, LLC4
Optimization Pitfall
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The Problem of Local Optima
Copyright © 2014, Intellyx, LLC5
Optimization vs. Innovation
InnovationDisrupt status quo
to allow human creativity to
flourish
OptimizationEstablish
feedback loops that maximize
business outcome
Copyright © 2014, Intellyx, LLC6
Innovativeness
• The ability to introduce change into the business environment in order to achieve a strategic advantage– New products or services– Expand market share– Enter new markets
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Business Agility
• Responsiveness– Tactical value
• Resilience– Risk mitigation
• Innovativeness– Strategic value
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Ability to respond to change in the business environment and leverage change for competitive advantage
Copyright © 2014, Intellyx, LLC8
Innovation Requires Disruption
• External Disruption– Competitive pressures/new
entrants– Globalization– Regulation
• Internal Disruption– Digital Transformation
efforts– Innovation initiatives
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Disruption Introduces Risk
• Optimization without disruption stifles innovation
• Disruption without optimization is an innovation crap shoot
• Optimize what you can & disrupt what you must P
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Mitigate risk with resilience
Copyright © 2014, Intellyx, LLC10
Resilience
• The ability to respond quickly and efficiently to negative change in the business environment– Managing risk– Bouncing back from
adverse events– Disaster recovery
• Tactical business driver
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The opposite of brittleness
Copyright © 2014, Intellyx, LLC11
How do You Manage?
• Each Line of Business/Division has its own goals & business outcomes
• LoB Management drives toward optimizing those outcomes
• Maximize shareholder value/profit/revenue
• Better-Faster-Cheaper, then repeat
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The Problem with Better-Faster-Cheaper
• Digital BFC pushes technology to its breaking point
• Technology team must focus on dealing with failure
• Resilience becomes top priority• Requires holistic view of organization because
weakest link could be anywhere
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Copyright © 2014, Intellyx, LLC13
Recipe for Agility
Copyright © 2014, Intellyx, LLC14
Mistake #1: Focusing Digital on Technology
• Easier than changing organization & culture• Leads to “tone deaf” Digital efforts
– Unresponsive Mobile– Social Media that put off or anger customers– Customer “service” snafus
Copyright © 2014, Intellyx, LLC15
Mistake #2: Shifting Digital Away from IT
• Leads to Digital efforts disconnected from IT
• ‘Legacy’ systems of record act as limitations
• No effective cooperation between Digital & IT (CDO & CIO for example)
• Leaving legacy behind moves organization away from business agility
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There is no Shortcut!
• Common wrong turns– Migrating legacy apps to
the Cloud– Big Data strategies without
a coherent strategy for collecting new information
– Mobile app interfaces to existing Web apps
• Remember, Digital Transformation isn’t about the Digital, it’s about the Transformation!
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Copyright © 2014, Intellyx, LLC17
Organizing for Innovation
• Move from high connectivity to low connectivity– Provide flexible technology– Autonomous, self-
organizing teams– Teams must cut across
organizational silos
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Copyright © 2014, Intellyx, LLC18
Problems of Organizational Silos
• Every line of business, department, functional area has its own requirements, its own way of doing things
• Must invest in specialized technology for narrow purposes
• IT must integrate everything, increasing cost, complexity, & brittleness
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Copyright © 2014, Intellyx, LLC19
Silos on Top of Silos
• Organizational silos– Lines of business,
departments, geographic locations, etc.
• Application silos– Different apps for
different departments• Infrastructure silos
– Various data centers & rooms, heterogeneous platforms, & Cloud!
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Copyright © 2014, Intellyx, LLC20
It’s Time to Take Down the Silos!
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Better Way to Manage
• Build cross-organizational teams• Understand when to
optimize and when to innovate
• Embrace disruption• Encourage resilience• Give people the tools
they need and get out of their way
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