An IDC InfoBrief Sponsored By VMware | January 2016

Accelerating Your Organization’s Digital Transformation

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Source: IDC 2015

of new product introductions

are successful

of all same-day consumer deliveries

are fulfilled by “Uber-like” car services

of the G2000 have leveraged

digital transformation to

establish segment leadership

Imagine An Economy Where...

70%

90%

85%

pg 3

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Organizations adapt to changes in their ecosystem by leveraging digital technologies to create digitally enhanced, customer-centric business models.

In This Digital Economy...

Create new customer

experiences

Rapidly respond

to changing

conditions

Generate new

revenue streams

Improve operational

efficiencies

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Image sources: GE.com, Citigroup.com, airbusgroup.com

Innovation Is a CEO Priority, But Requires Serious Transformation

“If you went to bed last

night as an industrial

company, you’re going

to wake up today as

a software and

analytics company.”

—Jeff Immelt

CEO, GE

“We are no longer a bank,

we are a technology

company in the financial

services industry.”

—Michael Corbat

CEO, Citi

“Digitalization and smart

tools could drive the

integration of Airbus much

further. We recently decided

we need one collaboration

platform for the entire

group. That is pretty cool.”

—Tom Enders

CEO, Airbus

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Digital Transformation Is Multi-faceted and AcceleratedThe 5 areas of digital transformation:

Leadership

Transformation

Omni-Experience

Transformation

Information

Transformation

Operating Model

Transformation

Worksource

Transformation

pg 6

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

2nd Platform Technology Value Proposition• Technology automates business processes

• Enterprise software streamlines operations

2nd Platform IT Business Model• IT funds 80% of technology

• IT publishes its technology catalogs

• Big bang approach to projects

2nd Platform IT Talent• Services the needs of enterprise “end users”

• 2/3rd of time spent building IT systems

• Technical skills dominate

Business Innovation Tech Value Proposition• Technology creates new products and services

• Analytics creates new customer experiences

Business Innovation IT Business Model• Business funds 80% of technology

• IT delivers technology the way business wants to consume it

• Iterative approach to projects

Business Innovation IT Talent• Services the needs of enterprises’ consumers

• 2/3rd of time spent governing IT systems

• Business skills dominate

But Digital Transformation Requires IT Transformation First — From 2nd Platform to Business Innovation

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Source: IDC, Enterprise IT Transformation Maturity Model, 2014

Transforming to a Business Innovation IT Organization

Ad Hoc

Repeatable

Opportunistic

Managed

Optimized

Core IT

No efort between

business and IT

to coordinate or

incorporate 3rd

Platform technology.

2nd Platform IT

Uncoordinated eforts

between business and

IT around 3rd Platform

implementations; limited

progress toward 3rd

Platform adoption.

3rd Platform IT

Coordinated eforts

between business and

IT around 3rd Platform

implementation allow

organization to keep

pace with peers in 3rd

Platform adoption.

Business

Innovation

Efective partnership

between business and

IT around 3rd Platform

implementations allows

organization to outpace

competitors through the

use of 3rd Platform.

Business

Transformation

Highly orchestrated

interaction between business

and IT around 3rd Platform

implementations, enabling

a world-class organization

with lasting competitive

advantage driven by 3rd

Platform transformation and

an organization that has

embraced it.

IDC’s IT Transformation MaturityScape: The 5 Stages of IT Maturity

pg 8

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Ad Hoc

Repeatable

Opportunistic

Managed

Optimized

Core IT

No efort between

business and IT

to coordinate or

incorporate 3rd

Platform technology.

2nd Platform IT

Uncoordinated eforts

between business and

IT around 3rd Platform

implementations; limited

progress toward 3rd

Platform adoption.

3rd Platform IT

Coordinated eforts

between business and

IT around 3rd Platform

implementation allow

organization to keep

pace with peers in 3rd

Platform adoption.

Business

Innovation

Efective partnership

between business and

IT around 3rd Platform

implementations allows

organization to outpace

competitors through the

use of 3rd Platform.

Business

Transformation

Highly orchestrated

interaction between business

and IT around 3rd Platform

implementations, enabling

a world-class organization

with lasting competitive

advantage driven by 3rd

Platform transformation and

an organization that has

embraced it.

Source: IDC’s Enterprise IT Transformation MaturityScape Benchmark Study, August, 2014. N=156

Are You Transforming Your IT Org Fast Enough?

16%

40%

27%

13%

4%Core IT 2nd platform IT 3rd Platform IT Business

InnovationBusiness

Transformation

A majority of organizations are still on the 2nd-platform

of organizations are operating on the 2nd Platform IT or 3rd Platform IT Transformational stage67%

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

IT-Enabled Business Processes

Technology-Enabled Services

Digitally-Enabled Products

Automating Business Processes Transforming Business Processes Creating Digitally-Enabled

Products and Services

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Because Digitally-Enabled Customer Experiences Are the Prize

pg 10

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

1st Way to Accelerate IT Transformation: Vision

3TechnologyLead the Dialog on

Emerging

Technologies

2IT TalentAttract and Retain a

New Generation of

IT Talent

VisionMove Outside

Your Process

Comfort Zone

1

Business Innovation ITCreating Technology-

Enabled Products

2nd Platform ITAutomating Business

Processes

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

IT-Enabled Business Processes

Technology-Enabled Services

Digitally-Enabled Products

Automating Business Processes Transforming Business Processes Creating Digitally-Enabled

Products and Services

Recommendation: Get Outside Your Process Comfort ZonePercentage of companies who think the way they can create business innovation is by…

10% 54% 36%

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

2nd Way to Accelerate IT Transformation: IT Talent

3TechnologyLead the Dialog on

Emerging

Technologies

2IT TalentAttract and Retain a

New Generation of

IT Talent

VisionMove Outside

Your Process

Comfort Zone

1

Business Innovation ITWinning the Talent Wars

2nd Platform ITCompeting for Talent

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

Source: IDC’s 2015 IT Staing Study – April, 2015, n=139

Recommendation: Develop Talent Programs Around What Millennials Want from Work

of organizations are actively seeking to attract millennials49%

Top practices IT organizations use to retain millenials

Assign them

to challenging

projects.

Offer relaxed

dress codes.

Are flexible in

terms of where

they work.

Use more

social media

technologies.

Give millennials

access to cutting

edge technology.

51% 38% 34% 34% 32%

pg 14

An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

3rd Way to Accelerate IT Transformation: Technology

3TechnologyLead the Dialog on

Emerging

Technologies

2IT TalentAttract and Retain a

New Generation of

IT Talent

VisionMove Outside

Your Process

Comfort Zone

1

Business Innovation ITIT Drives Emerging

Technology Adoption

2nd Platform ITLine of Business Drives

Emerging Technology

Adoption

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

By 2020…

Recommendation: Consider These Technologies to Accelerate Digital Transformation

3D Printing10% of all consumer purchases will be

produced on demand with additive

manufacturing technologies.

IoT70% of original equipment

manufacturers will create new revenue

streams based on the Internet of Things.

Cognitive Systems35% of Fortune 1000 will use

prescriptive-enabled services to

improve customer experiences in

near real time.

Augmented RealityManufacturers will reduce service labor

costs by 1/3rd with natural interfaces.

Robotics and Drones80% of manufacturers will recognize supply

chain efficiencies within warehousing

networks with robotics.

Next Gen SecurityPassword memorization will be reduced

by 50% as consumers access mobile

devices biometrically.

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An IDC InfoBrief Sponsored By VMwareAccelerating Your Organization’s Digital Transformation

4 Through efective partnerships with line-of-business peers, you will create an IT organization that drives the development of innovative products and innovative ways of engaging with your customers.

4 By cultivating IT talent that is business oriented and wired for innovation, you will be leading the transformation of your organization’s workforce.

4 By introducing emerging technologies to the business in unique use cases, you will position your organization to be an industry disruptor.

Next Steps to Transforming Your BusinessTechnology leaders are in a unique position to accelerate digital transformation

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