1. Exploring the Future of the IT industryand the Next Generation CIO(In just 30 minutes)April 2013Jessvin ThomasVice President, Blackstone http://www.linkedin.com/in/jessvinAll opinions presented in this presentation are personal views of the author only

2. The Digital Revolution is now Its an exciting time to be in digital technologyI really believe that we are undergoing a digital revolution Anyone remember the 1993 AT&T You Will ads? Have you ever borrowed a book from thousands of miles away?Paid a tollSent a fax without slowing down? from the beach?We are doing it NOW! (except for the fax part) 1 3. But sometimes it feels like we are being outpacedTechnologyITCute Kids love itslowFast everywheresecureEndangered species?2 4. My Background Ive seen it from a few angles:Inside IT at a large organization Inside a B2C Web Operations technologyRunning Enterprise SecurityRunning Cloud, Automation & Tools (supported by that Nokia IT) At Blackstone Im working on drivingan IT organization intoa customer facing organization3 5. My Beliefs A digital revolution is taking place 1 on the scale of the Industrial & agricultural revolutions IT should be natural leader in this change, 2 however a re-engineering is required 3 Consequences for not adapting Are extremely high. If you dont believe me ask these people: 4 6. BTW That AT&T Ad. It got one thing wrong:It ended with And the company that will bring it to you, AT&T No one expected these guys5 7. To be fair AT&T Wireless delivers the network on which many of these devices operateBut who would you rather be?6 8. Takeaway #1: Who do you want to be? The Next Gen CIO will Focus on Distinctive Capabilities Ownership of Technology cannot be the sole purpose of an IT organizationTechnology is now ubiquitousNo one can own it The successful CIO will need to ANSWER the question of what VALUE you ADD FOCUS on DISTINCTIVE capabilitiesAnd still KEEP the trains on the tracks. The future of IT is about innovation (with technology) Not administration of technology7 9. Weve been saying that forever. Whats different now? The Value Proposition Has ChangedTraditionally IT projects have been:Now Technology can be Capital Intensive Variable Cost in many cases OPEX Generally complex and time Iterative intensive to do right More distributed broad based skills Required a highly specialized skillsLeads to DecentralizationLed to Centralization Pay for what is needed, when its needed Pool upfront costs Technical Fit for purpose Avoid distractions to real business Use Case specific skills Pool ResourcesWe have to prove that our value in driving IT is the innovation we can bringNot just because its cheaper8 10. Take Away #2: We need to be leaders in Smart Innovation As smart innovators we need to be able to:1) leverage technology adeptly2) balance control and freedom3) support the ability to change at a moments notice4) focus on front office, outsource back office5) have a keen understanding of monetization offerings of our solutionsThat sounds true no matter whatYes but we need to be honest with how good we are at it9 11. Which of these are examples of Smart Innovators in the Consumer Space? 10 12. Take Away #3: Successfully focusing on distinctive capabilities means being detail oriented This is the story everyone knows: What about these ones?Chung Mong-Koo, Chairman HyundaiFastest Growing Automotive Brand in the USPut Product Excellence first Roger Ailes, President of Fox News Whatever you think about him, he built apowerhouse on distinctive reporting Still is in the details all the time11 13. Very much related to Consumer expectationThis is not OK anymore Neither is this Even the boxes have gotten better 12 14. Summary for the CIO1) What got us here isnt going to be what takes us forward. The instincts, skills and ways of working that brought us success in the past not only dont work in the future IT traditionally has systems administrators, network administrations, SAP administrators etc. We administer things. The role of the future is not to administer but to innovate, wire together and then hand off.2) We an need an entrepreneurial spirit not just an engineering spirit Individuals who have done the same tasks for years continue to perpetuate existing ways of doing things Our focus has been as engineers to make things work technically. We need to think like entrepreneurs: how do I get value that will survive in the market place. What tradeoffs do I have to make to be good enough and fast enough to complete.3) Quality must become a serious concern. With focus on cheaper we have skimped on forcing things to be better (or sometimes faster). Many significant technologies we rely on have poor user interfaces, serious bugs and other issues we learned to put up with. Consumer Grade is the new Enterprise Grade 13 15. People - So youre ready to build the next generate IT organization You need the teamFinding talent is hard keeping talent is even harder There are a lot of technical people out there Finding good people seems to get harder every day 14 16. Take Away #1: People are attracted to start up culture. Its not the just the shares smaller teams vs. big teams interconnected vs. hierarchynimble planning vs. complete waterfall results in weeks vs. months or years visibility vs. reportingvalue driven vs. task drivenself managed vs. top downmulti functional vs. specialized15 17. This is not sandals vs. suits.. Real business is changingNot only are consumer industries being shaken upTypical Enterprise Technology Vendors are being disrupted as well And Consumer Grade solutions are scaling up to enterprise16 18. Take Away #2: Productivity was driven by Innovation under constraintsStartup Companies developed a mix of productive team behaviors Because they had no choice#1 Lean and highly capablefocusing on distinctive capabilities means a small tight group of people #2 Cross discipline Everyone has multiple hats and the team can execute the mission themselves#3 - Adept with toolsEverything managed through software Example: Cloud took off not because VMWare got more mature But because companies like Google and Amazon pioneered how to scale Their teams had to figure it out to survive 17 19. Take Away #3: The best Talent look for highly Capable Peers firstCommitment to a Systematic ApproachComponentized technology solutions working across multiple technologies that are knitted together by apisAnalytical & Metric orientedWe have Data now. Use it! Technical & Detail oriented Every team member needs to be able to follow technical conversation down to the details.Curious And ExperimenterBest operations members are constantly watch their systems and tweak Communicator and "convincer"Explain the broad picture and then give those details in context. Self directed and takes OwnershipIn a small team everyone needs to be a leader in some way.Corollary: You MUST act on negative behavior from team members18 20. People Summary: Hiring and Keeping the best people is all about team dynamicsDrive Culture: From infantry to armyThe challenge is not unlike the organizationshift the army made from 1970 to 1990 Air, Sea and Land People are excited to join the organizations that can innovate under constraints and solve problems with multiple skills as a teamA players attract A players, B players attract C playersWhen the team is small and everyone depends on oneanother, you have to hire the best 19 21. Service Model: Its not one size fits allThe service model for your organization will be custom to your needsMost importantly Next Generation of Services DeliveredMust be cognizant of the digital revolution we discussed in the beginning20 22. The good old days:IT sets standards Employees follow Boss always gets an exception (but doesnt use technology much anyway)21 23. Today Boss always gets an exception(But is now using a lot of technology)Employees useeverythingIT tries to keep up 22 24. Its not just consumerization: Its the convergence of multiple trends leading disruptive changeFive major foundational elements that have come together:1. Everything managed as Software with hooks to manipulate it programmatically2. The Internet and inter networking connectivity3. Ubiquity, low switching cost and personalization of personal computing4. The commoditization of large resources of compute & storage (cloud etc)5. Digitization of the physical world (mapping, ecommerce, 3d printing)Drives Critical Considerations in the Services Delivered1. Need to interoperate in an ecosystem of best in class solutions2. Need to be able to work cross borders Security becomes a first class concern 3. Solutions designed to easy to use and comfortable for people4. Low upfront effort required5. Everything needs to tie to the real world23 25. To recap (if we made it this far)Changes comes from the top:The IT organization of the future needs the CIO of the futureWe are a knowledge worker industry:Even with the best technology its the innovation of our teams that is keyEmployees expectations are radically changingIn 1985 it was OK to have blinking 12:00 on your VCR, In 2013 my 2 year old son uses an iPad(and so do my parents) 24 26. Blackstones MissionWe are dedicated to driving outstandingresults for investors and clients bydeploying capitaland ideas that help businessessucceed and grow.25 27. An Extra Example: JIRA Self Managed: Pull TasksVisibility: A living roadmapSmall Team 26