CIO Transformation Playbook - IDGSource: IDC APEJ Future of Work Survey, 2018 , Aus = 117 Source:...
Transcript of CIO Transformation Playbook - IDGSource: IDC APEJ Future of Work Survey, 2018 , Aus = 117 Source:...
CIO Transformation Playbook
Joseph PucciarelliGroup VP & IT Executive Advisor
© IDC
Traditional Enterprises Are Digitally Transforming
© IDC 2
Walmart Shelf-Scanning Robots In 50+ Stores
USPS’s e-service “INFORMED DELIVERY”
B787-9 - 17.5% of titanium frame is 3D printed
USPS Expands “Last-Mile” Delivery Services
Apr 10, 2019 – Walmart announces 3,900 robots
ROBOTS ARE COMING
• 1,500 Autonomous floor cleaners
• 300 Additional shelf scanners
• 1,200 more FAST Unloaders
• 900 new pickup towers
3D Prints Aircraft Spares Using BlockChain
Business is Accelerating; Disruption Follows
© IDC 3Source: Innosight - 2012 & 2018 - analysis based on public S&P 500 data sources
60
50
40
30
20
10
01960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Years, Rolling 7-year average
At current churn rate, 75% of the S&P 500 will be replaced by 2029
Average Company Lifespan on S&P 500 Index
• 61 years in 1958• 33 years in 1964• 24 years in 2016• 12 years by 2027
Digital Disruptors Are Changing the Face of Industry
© IDC 4
Source: IDC, 2Q2018 For areas on which IDC publishes market share data, the top 3–5 market share leaders are represented. For areas on which IDC does not publish market share data, vendor selection is up to analyst discretion.
By 2020, at least 50% of Australian orgs will be Digitally Determined with an integrated digital strategy, a single road map, and an integrated enterprise-wide technology architecture – IDC Australia DX FutureScape, 2019.
© IDC 5
2019 Worldwide DX Spending by Use Case
Banking Healthcare Retail Discrete Manufacturing
• Customer Onboarding –$2.7B
• Cyberthreat Detection and Prevention – $2.6B
• Adaptive Fraud Prevention and Detection – $2.3B
• Robotic Healthcare –$5.3B
• Remote Health Monitoring – $4.0B
• Real Time Locating Systems – $3.0B
• Omni-Channel Order Orchestration and Fulfillment – $8.4B
• Omni-Channel Commerce Platforms –$8.3B
• Right Content, Right Screen – $6.2B
• Autonomic Operations – $37.0B
• Robotic Manufacturing –$33.2B
• Root Cause – $23.9B
Source: IDC's Worldwide Semiannual Digital Transformation Spending Guide, H12017
© IDC
A Digitally Determined Strategy & CX
“IT’S TRUE – WE ARE THE BEST DINER IN TOWN!”
One year ago, implemented at-table fully electronic ordering to improve CX and reduce wait times.
First six-months a struggle; software support, device battery life, & training.
But persevered and succeeded!
1 Readily enable additional customer personalization & improve customer experience
2 Decrease order-to-table food wait times
3 Now a fully digital menu, inventory and customer mgmt tracking system
Key Success Elements:
© IDC 6
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 7
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 8
ITX is a Strategic Priority: Investment Targets
© IDC 9
In 2019, 40% to 50% of CIOs, worldwide, have aggressively embraced IT Transformation (ITX) within their enterprises
Principal Goal: Accelerate IT
Key Initiatives:
• Governance
• AI Ops & Autonomic Ops
• Self-service portals24%
33%
30%
24%
24%
41%
33%
30%
23%
27%
28%
29%
35%
38%
38%
45%
Service catalogue
Autonomous 0perations
Real time actionable KPIs
Operations orchestration
Next Generation service desks
Operational intelligence
Self-service portal
Governance: IT/Biz alignment
1,000 to 9,999 Employees 50-999 Employees
Q: Which of the following areas has your Organisation invested in or will invest in in the next 12 months to transform IT services, operation and governance to support ITX efforts?
Source: IDC European Vertical Markets Survey 2018-2019 – N= 1,288
Source: IDC CIO FutureScape, 2019 – Doc #US44390218
Q. Which of the following Infrastructure Technology Modernisation areas is your Organisation investing in or planning to invest in support of ITX projects?
© IDC 10
ITX: Planned Investments in Technology & Skills
30%
32%
33%
32%
32%
33%
35%
41%
16%
16%
17%
21%
22%
23%
21%
20%
Customer experience monitoring
Employee/partner facing mobileapps
Software defined networking
Collaboration and EnterpriseMessaging tools
Always connected devices
Digital Marketing, Automation &Social
Big Data/Data Lakes and BI
Cloud apps
Use - Aus Planned - Aus
Planned Technology Investments
Q. What new roles/skills have been added or will be added in the next 12 months in support of ITX at your Organisation?
24%
24%
30%
30%
32%
37%
38%
41%
Container Administrator
DevOps Architect
Cloud Resources Planner
Data Scientists
Data Architect
Data Engineers
Cloud Administrator
Cloud Architect
50-9,999 Employees
Planned Hiring and Skills Development
Source: IDC European Vertical Markets Survey 2018-2019 – N= 1,288Source: IDC APEJ Future of Work Survey, 2018 , Aus = 117
Drive A Digitally Determined IT Restructuring
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 Organisation 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 11Source: IDC Doc #US43696218
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 12
DevOps: Becoming a Mainstream Strategy In ANZ
Source: IDC CIO FutureScape, 2019 – Doc #US44390218
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.
© IDC 13
24.2%29.8%
13.5%13.1%
19.1%17.9%
20.2% 13.1%
15.7% 17.9%
4.5% 6.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Australia New Zealand
All
51%-80%
21%-50%
1%-20%
New Projects Only
Planned by 2020
No Plans
Q. Approximately how many % of projects/applications are ran/built on DevOps technologies?
Source: IDC Asia Pacific Software Survey 2018 – Australian respondents N = 200)
28.3%
33.7%
33.1%
60.8%
Faster time to market
More reliable releases
Shorten lead time betweenfixes and faster mean time to
recovery
Efficiency and productivity
DevOps Drivers
© IDC, 2017 14
21.6%
22.5%
23.4%
24.3%
Fragmented processes and teams
Unsure of when and how to start /not sure which tools to use
Do not feel the need to do so (e.g.small development team, legacy
architecture/systems)
Challenges of integrating commonDevOps processes
DevOps Inhibitors
DevOps: ANZ Drivers and Inhibitors
Source: IDC Asia Pacific Software Survey 2018 – Australian respondents N = 200)
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 15Source: IDC Doc #US45026419
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 16
© IDC 17
Data: Exponential Increases in Volume Coming C
ha
lle
ng
es
Both business leaders and CIOs tend to underestimate the speed and extent of change. Growth follows a power law, but many people still apply linear thinking based on experience or intuition. In the past few years, data volume was already too big for IT Organisations to process even a small percentage of the whole. Knowing what is ahead is crucial so we can plan for it. Already, it’s obvious that AI will play a major role.
Source: IDC’s Global DataSphere 2018
Worldwide Data Creation Share by Location & Real-Time Data
2014–2023
1 zettabyte = 1 trillion gigabytes.
In zettabytes (ZB)
11 1420 25
3341
5063
80
103
12 3 4 5 7 10 13 18
25
14 15 16 17 18 19 20 21 22 23
Core Edge Endpoint
Total Real-time data
Shortage of Usable and Adequately Prepared Data
0.4%
2.5%
into systems
4%
18%
29%
31%
37%
37%
42%
43%
49%
All of the above
Appropriate Business DomainExpertise
Clear Valuation/Prloritization of UseCases
Appropriate Technical/DatascienceSkills
Redesigning Legacy BusinessProcesses
Clear Understanding of Data Needs
Internal Data Enriched with External
Modifying Business Models
Common Data Integration Platformswith Continuous and Realtime Access
Q. How does your Organisation ensure maximization of the business value/ROI for an AI initiative?
18
Key Findings & Recommendations
• When the goal is to maximize business value, Organisations look first at common data platforms (49%)
• More value can be generated when intersecting internal data with external data (42%)
• Many companies are tempted to try AI everywhere in the hope of uncovering nuggets.
• This said, focusing AI initiatives on specific use cases, with known ROI, is generally a far more effective (29%) plan
Data Integration is the Top Priority for Australia AI Initiatives
Common Data Integration Platforms Are Foundational
N=100Base=Australian RespondentsSource: AI Global Survey 2019, IDC, May, 2019
© IDC
“Data Governance is not a project.”
Arrived at executive agreement on the need to instantiate data governance
Established “data stewards”
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 19
Data Mgmt Requires Strategic Governance
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 20
Shifting AI Deployment Priorities in Australia
11.0%
25.0%
24.0%
24.0%
34.0%
24.0%
41.0%
23.0%
30.0%
33.0%
27.0%
31.0%
29.0%
22.0%
31.0%
21.0%
35.0%
19.0%
21.0%
16.0%
Procurement
Fraud/risk management
Human resources
Sales
Customer service and support
Management/maintenance of physical assets
IT operations
Manufacturing operations
Finance/accounting
Commerce
Past 12 months WW (N=2,473) Next 12-23 months WW (N=2,473)
145%
24%
21%
-8%
-9%
-13%
-15%
-17%
-30%
-52%
Variation: Past Vs. Future
Q14 For which of these business process areas have you used AI in the past 12 months or are you planning to use AI within the next 12-24 months?
© IDC
21
N=100Base=Australian RespondentsSource: AI Global Survey 2019, IDC, May, 2019
Q7. What the primary drivers for using AI for your projects/initiatives?
Q8. What are the factors that hold you back, or have held you back, from implementing AI technology?
Q20. Please indicate the reasons why your AI projects have failed.
35%
42%
44%
46%
47%
Experimentation/operationalexcellence
Customersatisfaction
Business agility
Automation –
Improvement in
productivity
Accuracy
27.0%
29.0%
30.0%
31.0%
39.0%
Selecting the rightalgorithms
Trustworthiness ofdata
LOB Support
Lack of skills
Cost of the solution
27.9%
29.1%
32.6%
32.6%
33.7%
Unrealisticexpectations
Lack of follow-up fromBus
Lacked expert staff
Results were toodisruptive to the
business
AI technology didn'tperform as expected
Top 5 Drivers Top 5 Barriers Top 3 Reasons for Failure
© IDC
22
Australia: Accuracy & Automation Drives AI, But Hurdles Remain
N=100Base=Australian RespondentsSource: AI Global Survey 2019, IDC, May, 2019
Exploit AI, Create Business Value
© IDC 23
© IDC
“Make sure you can monitor the results with tangible metrics.”
Personalized marketing messages based on past purchase behaviors and encounters
Conversational bots in social channels and voice-activated channels
Digital assistants to help general managers run their stores
1 Started AI investment in narrow domain; and measured
2 Addressed business pain points that weren’t addressed elsewhere
3 AI is linked to defined business outcomes
Results
Source: IDC PeerScape: | Doc #US45052619
A CIO’s Transformation Playbook
DATATaming an exploding volume of data with
data optimization strategies
ROADMAPDelivering an
achievable IT/Business
roadmap
DEVOPSTransitioning DevOps to a
mainstream practice
ModernisationEnabling IT
infrastructure Modernisation
AIExploiting new AI and ML options
© IDC 24
Digital Roadmap Best Practice
HORIZON 1Use cases that are deployed
today.
HORIZON 2Use cases that are
being incubated
HORIZON 3Use cases
that imagine the
possibilities.
StrategicGoals
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
Use Case
OmnichannelOrder
Orchestration and
Fulfilment
Real Time Inventory
Management
JIT Production
Intelligent Fulfillment
© IDC
Source: IDC, 2018
Break Digital Roadmaps into Horizons
© IDC 25
Digital Roadmap Best Practice
HORIZON 2HORIZON 1
Order Fulfillment
Order Management
Partner and Channel
Integration
Content Design and
Creation
Customer Care and Support
Digital Asset Management
Customer Satisfaction
Measurement
Digital Marketing
Secure Transactions
Digital Based Training and
Education
Product Customization
Voice of the Customer
Secure Customer
Data
Social Influence
Brand Sentiment
AI Driven Engagement
Omnichannel Content
Interaction management
Predictive Upsell and
Resell
Ubiquitous Commerce
Digital Self Support
Implementation,
Assessment, and
Modification
Crowd Sourced Support
Customer Action
Tracking and Analysis
Digital Rewards
Customer Journey Analysis
HORIZON 3
External Customer Analysis
Extended Reality (XR)
Engagement
Integrated Customer
Information
Continuous Engagement
Advertising and Marketing
Sales and Renewals
Implementation & Customer Sppt.
Customer Sat and Trust
Customer Data and Intelligence
Example: A Roadmap for Building Empathy with Your Customers
© IDC 26
© IDC
A Digitally Determined Strategy & CX
"If we want to be one of the world's great service companies, you've got to put the customer at the centre of
everything you do — and that's equally as true in technology as it is
on the front line."
Westpac has spent $800 million in system upgrades, digital transformation, and innovation.
1 Remain focused on improving service for customer
2
3Create Westpac digital platform to build out and re-use APIs
Deliver innovative and moderniseddigital platform
Key Success Elements:
© IDC 27
A Digitally Determined Journey is Before Us
© IDC 28
2020Today 2027
Full Digital Transformation
2022
Innovation Realization
Getting Digital Done
Digitally DeterminedAdvantage
54%of Organisations
Worldwide are still Distraught
80% of revenue growth will
depend on digital offerings and operations
75% of Organisations will
have digitally transformed
50% of total technology
spending will be data related investments
Future Enterprise: The Shape Becomes Clearer
© IDC 29IDC Digital Transformation MaturityScape, 2019
Future of Customers Empathy at Scale
Future of OperationsOperations at Scale
Future of WorkWork Model at Scale
Future of IntelligenceInsights at ScaleFuture of
CultureLeadership at Scale
© IDC 30IDC Digital Transformation MaturityScape, 2019
Future of Customers Empathy at Scale
Future of OperationsOperations at Scale
Future of WorkWork Model at Scale
Future of IntelligenceInsights at ScaleFuture of
CultureLeadership at Scale
“The best digital transformation strategies start with people – not technology. Innovation will come much easier to an Organisation whose staff share a common
understanding of how technologies work." Soren Nikolajsen, Managing Director, Alawwal Bank
© IDC 31
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