Keynote Symposium ITxpo FINAL - Gartner · © 2013 Gartner, Inc. and/or its affiliates. All ......

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© 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

Keynote ‐ Symposium ITxpo ‐ FINAL [Short Movie] (Peter) Phew, I was getting worried there. Good Morning ... Good Morning! Welcome to the Nexus. The Nexus of Forces.

(Slide ‐ Nexus wheel) A confluence and integration of ... ‐ Cloud, ‐ Mobile ‐ Social Collaboration, ‐ and Information. A time of accelerating change ... where your current IT architecture will be rendered obsolete.

(Slide ‐ accelerator/brake) You must Lead through this change ... Selectively destroy low impact systems ... Aggressively change your IT cost structure This is the New World of the Nexus. The next age of computing. To understand this change ... you must appreciate each of the forces. Let’s look at each of them individually. First, Cloud.

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Cloud is the carrier for the three other Forces. ‐ Mobile is Personal clouds ‐ Social Media is only possible via the Cloud ‐ Big Data is the killer app for the Cloud Cloud will be the permanent fixture ... the foundation. Cloud is not merely about cost‐cutting. The end game is not just cheap on‐demand services. In fact 90% of these services are still subscription … not as you would expect, pay‐as‐you‐go. We are just at the beginning of realizing the cost benefits of cloud ... ... but organizations moving to the cloud are also attracted by the new capabilities they do not get today. For example, ‐ in additional capacity, ‐ scaling out, ‐ introducing massive parallelism, It is bringing new approaches to designing applications specifically for the Cloud ... and providing more resilience by architecting failure as a design concept. Cloud also teaches us about services and service levels. The contrast between what the business wants for outcomes versus IT’s old methods of getting there ... becomes stark. So today, we have a clear distinction between what the business is doing with cloud ... versus what IT embraces.

(Slide)

Software as a Service is adopted by 80% of businesses ... ... while IT’s use remains 80% private cloud. IT just doesn’t trust the public cloud

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IT departments demand that cloud providers offer “enterprise Grade” support. Individuals go with “Good Enough” options ‐‐ while ignoring risks. So, fragmentation has happened ... and two versions of the Cloud Computing destiny are evolving in cooperative tension with each other. Going forward, Cloud creates a highly competitive market for services. These changes introduce a set of threats to the established service providers. As the cloud matures ... margins will be tight.

(Slide)

This will mean that ... 20 of the top 100 service providers will be displaced by 2014. Our research suggests that between 2011 and 2016 ... the market for Business Process Services in the cloud will double in size, to nearly $145B.

(Slide ‐ Cloud Market)

In 5 years, when we talk of the Cloud, we'll be talking about what functions business does there as a common practice ... ... with or without IT's support. As Winston Churchill said ... “This is not the end. It’s not even the beginning of the end ... but it is, perhaps, the end of the beginning”. That’s where we are with cloud computing … the end of the beginning. The second Force is that of Mobile. You need to design your business around mobile. Your customers and employees are leading you there. In 2016, over 1.6B smart mobile devices will be purchased globally.

(Slide ‐ Mobile Market)

2/3 of the workforce will own a smartphone ... and 40% of the workforce will be mobile.

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So, what can you do with this new channel to your customers and employees? Well, Mobile is about computing at the right time, in the moment. It is the point of entry for all applications ... delivering personalized, contextual experiences. It means …. ● Marketing gets more time with the customer; ● Employees become more produc ve; ● Process flows get drama cally cut. Mobile changes applications ... and how they are delivered. In four years, more than 300 Billion app downloads will occur each year. The major vendors of monolithic business suites will struggle to make mobile applications that are ... ‐ usable, ‐ affordable, ‐ and secure. And, Tablets will continue to shake up the business world. In less than two years, iPads will be more common in business than Blackberries. Some CIOs are now placing orders for 10s of thousands of iPads at a time. Productivity is the driver. Just two years from now ... 20% of sales organizations will use tablets as the primary mobile platform for their field sales force. As a result ... by 2018, 70% of mobile workers will use a tablet or a hybrid device that has "tablet like" characteristics ...

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... hybrid devices we are only just beginning to see in the market now. Asset ownership will change. Gartner analysts believe that in 2016 ... half of all non‐PC devices used in business will be purchased by employees. And by the end of the decade ... half of all devices in business will be purchased by employees. So you need to be in the business of delivering applications and data securely to devices you don't even own... ... you need to design for openness. The next wave of mobile computing is also coming. When the physical world becomes digital. The cost of sensors and electronic tags is plummeting. The Internet of Everything is upon us. Soon the cost of NOT monitoring physical operations will be greater than monitoring ... ... be it ... ‐ power turbines, ‐ railroad tracks, ‐ Running shoes ‐ or TVs. By the end of the decade ... over 30 Billion devices will be permanently connected ... ... and another 150 Billion intermittently. This will lead to an explosion of data ... and surge in real‐time analytics. Software spending resulting from the proliferation of smart operational technology is already increasing by 25% each year. And to make mobility secure and scalable ... cloud services will be critical. This is the way the Nexus of Forces works ‐‐ all of the forces are interdependent.

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Social computing is the third force. Social computing is moving from being just on the outside of the organization ... to being at the core of business operations. It is changing the fundamentals of management ... how you establish a sense of purpose and motivate people to act. Social computing will move organizations from hierarchical structures and defined teams ... to communities that can cross any organizational boundary. In the next 3 years ... the dominant consumer social networks will hit the limits of their growth. Yet, social computing will become even more important. Companies are now establishing social media as a discipline. In 3 years, 10 organizations will each spend over $1B on social media. The meaning of social computing will also evolve. Deceptive practices will emerge. We predict that paid reviews and ratings will make up 15 percent of all social media reviews by 2015. ● 30% of posts to social media will be automated posts by the middle of the decade; ● 5% will come from non‐humans! Like your mother‐in‐law. Social capabilities will become embedded in established business applications ... or exposed for developers to pursue. Here it will be easier for disruptive vendors like Workday or Salesforce than for the well‐established vendors ‐‐ partly because of the burden of legacy support. Internal applications will exploit external social environments. You could ask,

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"Will Linked‐In be more accurate than most of your current HR data?" This is a new age of collaboration specialization. You must design for how people work together. Our last force is Information. Or ... Big Data By tapping a continual stream of information from internal and external sources ... businesses today have an endless array of new opportunities for ... ‐ transforming decision‐making, ‐ discovering new insights, ‐ optimizing the business ‐ and innovating their industries. 80% of Business Executives can name a critical piece of information that they need from IT ... from you ... ... that they don’t have yet. Companies that are serious about collecting, managing and deploying information ... are now being rewarded by financial markets. Info‐centric companies have double the average market‐to‐book value. Innovators in areas such as medical devices are turning the data collected by their equipment into information that can be sold in the cloud ... ... a product into a service. So you see, data ‐‐ or information ‐‐ can become revenue. But because organizations don't have the skills and time they need internally ... they will increasingly turn to external providers.

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According to Gartner ... 85% of marketing organizations will outsource the analysis of big data. Big Data is also about looking ahead ... beyond what everybody else sees. You need to understand how to deal with Hybrid Data ... meaning the combination of structured and unstructured data … and how you shine a light on Dark Data. Dark Data which is the data being collected ... but going unused despite its value. Leading organizations of the future will be distinguished by the quality of their predictive algorithms. This is the CIO challenge …. and opportunity. And as technology pervades every aspect of business ... your role will change. Your additional challenge will be to find the skills ... ‐‐ such as data scientists ‐‐ and experts in non‐relational DBMS technologies to fill the jobs required. Longer term, we see Big Data as a complete shift ... a shift from today's ways of accumulating, managing and deploying information as merely a resource ... ... to valuing it as any corporate asset. These four forces ... ‐ Cloud, ‐ Social, ‐ Mobile, ‐ and Information ... create a powerful vortex of change that we have called the Nexus. So we now need to understand the impact... ‐ the impact on and driven by the consumer ‐ The impact on vendors and the IT market ‐ The change in your spending on information technology ‐ And how the Nexus introduces new roles to drive increased revenue from Data

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First ... The Increased usage of technology by consumers will result in a declining price point for the Nexus As consumers spend more on technology ‐‐ as a percentage of their disposable household income – they will continue to drive prices down. In 1980, technology spending was a mere .8 percent of disposable household income. In 2011, this has tripled to 3% percent ‐‐ rising to 3.5 percent in 2015. Consumers are the accelerator. However, your current security strategy may be holding you back .... it’s the brake. The Nexus will force you to rethink your security strategy. So overall ... Consumers will create an accelerating speed of change and innovation. The complexity of your IT infrastructure and lack of new IT skills will be your Achilles heel. Secondly, the IT market changes ... We are at an inflection point. Judging by the challenges we have seen at HP, Microsoft and Cisco recently ... the large mega vendors are each challenged by at least one of the four forces. The challenges for the mega vendors will accelerate as ... ‐ Cloud puts pressure on margins, ‐ mobility on the need for simplicity and new client devices, ‐ and collaboration on the process model of software Are your vendors accelerating you into the future ... or putting the brakes on your progress?

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You can expect to continue to see an increased number of disruptive vendors that will change the way IT is delivered. You only have to see what is happening in the mobile market. The top vendors a few years ago ‐‐ Nokia, Motorola, and RIM ‐‐ are struggling as we move away from purely mobile solutions to the Nexus ... ... to socially capable, information driven and built in the Cloud...mobile ecosystems. For vendors such as Microsoft ... challenges lie ahead. However good the prospects look for Windows 8 in the consumer market or for tablets ... ... there are no compelling business imperatives to drive legacy devices in business towards Windows 8. Therefore, 90% of enterprises will bypass broadscale deployment of Windows 8 through at least 2014. As you see, some will struggle ... but others will thrive. We believe the Nexus will grow the IT market. Our research suggests that over the next 12 months, the Global IT market will grow 3.8 percent ... reaching a magic 4 trillion dollars in four years. It is likely that, as this growth accelerates, we will need to expand our definition of what the technology market is. Why? Well … technology spending has long existed outside of IT – in stealth mode. Now it is out in the open. It is technology that is imbedded in almost every product that is sold ... ... from shoes ... to cars ...

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to heavy machinery. in our factory floors and our roads ... in digital marketing ... ... and in traditional IT services now being sold to business leaders directly through the Cloud. Why don't I show you this on my tablet? (get tablet) This chart shows total technology spending. What you see on the y‐axis is the percentage of technology spending outside of your IT department. The x‐axis indicates the size of spend ... as does the size of the bubble. Twelve years ago ... technology spending outside of IT was on average only 20%. Now let me show you what we believe will happen in a specific industry. Let’s take Manufacturing ... Manufacturing is an asset intensive industry delivering products. As manufacturing ... ‐ adds technology to create smart products, ‐ implements intelligent manufacturing ‐ and digitizes the entire supply chain ... ... the spending on technology outside of the IT department increases. Take a look ... As you can see here, it becomes almost 90% by the end of the decade. Let me show you what happens in Media ... a service‐focused industry As Media goes through the

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tremendous changes of digitization ... it becomes almost completely digitized. As you can now see, we move into 2018. This is a trend you are already seeing with the march toward digital marketing. Now all industries ... (return tablet to table) But most fascinating is how the Nexus changes the fundamentals of business. It creates new business models Business models that disrupt the established industry. Take the financial services Industry. The intersection of the four forces create new mechanisms of transporting money... ... new ways of creating wealth. ‐ Gift networks, ‐ barter networks, ‐ crowd funding models ‐ and new payment systems such as Google Wallet, PayPal Here, and Square. The change brings to light a fundamental question ... "What is the future of money?" The change caused by the Nexus redefines the financial services industry faster than the current Banks and Insurance Companies can react. Similar changes are happening in your industry ... so it is time to change the way you view technology in your organization. The change is about increased digitization. First, Organizations are digitizing segments of business ... such as moving marketing spend from analog to digital ... or digitizing the R&D budget. Secondly, organizations are digitizing how they service their clients, in order to drive higher client retention. Thirdly, they are turning digitization into new revenue streams.

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The result is every budget is an IT budget. Let me say that again ... Every budget ... is an IT budget. Digitization of the enterprise is commencing ... as a result of the Nexus. Therefore, organizations will create the role of a Chief Digital Officer, as part of the business unit leadership ‐‐ a new seat at the executive table. They will be responsible for the digital business strategy. According to Gartner ... by 2015, 25% of organizations will have a Chief Digital Officer. You will need to focus on ... ‐ how this changes your relationship with business unit managers, ‐ how governance of information and technology changes ‐ and whether we are on the verge of creating the next generation's integration problems ... that is ... integration of islands of technology now implemented in ‐‐ and by ‐‐business units. The Nexus accelerates the information economy. It creates a new layer in the economy which is about information ... ... turning information, or data, into revenue. This will accelerate growth in the global economy. It will create jobs.

(Slide ‐ JOBS) Gartner predicts that by 2015, 4.4 million IT jobs globally will be created to support Big Data. 1.9 million IT jobs in the United States. In addition, every big data‐related role in the U.S. will create employment for

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3 people outside of IT... ... so a total of 6 million jobs in the United States ‐‐ ... created by the information economy over the next four years. Sound like great news? Here is the challenge ... There is not enough talent in the industry. Our public and private education systems are failing us. Therefore only one third of the IT jobs will be filled. Data experts will be a scarce, valuable commodity. You will need immediate focus on how your organization develops and attracts the skills required. These jobs will be needed to grow your business. These jobs are the future of the new information economy. To summarize ... The new information layer will ... ‐ create new jobs, ‐ new revenue, ‐ and require new skills. The individual dominates the change happening ... and a misguided approach to security will hold you back. And the spread of technology spending outside of IT requires you to reconsider your role. Focus ... connect ... lead! This morning, we will illustrate just how dramatic this change is ... and how leaders are

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meeting the challenge. You will see what a totally immersive computing environment will mean for your customers and your employees. The power of the personal cloud. The importance of contextual experiences. This is the reality of your future. We’ll start from an individual’s point of view – a customer, an employee. This is how the world is changing. 00:32:00 »(Chris) Good morning! Welcome to my future. And your future, as well. Let me swipe it up here so you can see it. Here's my life. Probably not too different from yours. I work in a large multi‐national organization. I guess you could call me a professional knowledge worker. ‐ My business, ‐ my professional existence, ‐ my family, ‐ and my personal details are all represented here in my virtual world ‐‐ my personal cloud. And no matter where I am ‐‐ office, home, airport, on the boardwalk at Disney World ‐‐ I keep constant tabs on the many aspects of my life. Did you see that? Hmmm, that's unusual.

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It looks like something in my business is trending red. Darn ‐ I hope that our planned merger didn't leak ... Uh oh ... our reputation is in free fall. What's going on??? You see, our reputation is a mix of what our customers and shareholders are saying about us ... plus the sum of all the reputations of all the individuals in my company. I'm used to seeing that customer sentiment number fluctuate ... but not like this. Normally, it's around 80% ... so something is clearly not right. I'll check in later with Yvonne, our Chief Digital Officer ‐‐ to see what she knows ... and see if my team can help. Well, at least all my projects are doing well. Especially my gamification experiments to identify new ways of engaging our colleagues globally to change the way we do customer service. We're actually "playing" our way to a more customer‐focused culture using what we call the "Idea Market". It is chock full of great ideas from our employees around the world. Nothing like the spirit of internal peer competition to inspire innovation! That is one of the great things about great companies ... people really take pride in what they do ... and have a shared sense of purpose. Gamification has allowed me to tap into this with great effect!! To tell the truth ... I was hesitant to promote this radical idea of gamification. Just trying to define the concept was difficult enough ... but in the end, it has changed management's view of

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what can be done with crowdsourcing. They're trusting everyone more ... and they seem to be noticing me too ‐‐ my personal reputation score continues to climb. Like most of my colleagues, I am jumping between tasks and personas all day long. This used to be a regimented thing ... doing certain tasks only at certain hours. Remember the days when you'd have to switch between fat applications or even between workstations! Most of my team has never even heard of a workstation. Man, I'm glad those days are done. Now I am able to get more done by blending it all together throughout my day ... using whatever devices and apps I need. And I have a better life because of it. Excuse me, I have to take this call. "Hey Sweetie ... Say, what time did you get in last night?" DAUGHTER: Uh, I don't know ... I think it was about midnight Actually, it was closer to 1 ... DAUGHTER: Uh, yeah I guess ... but we agreed I'd be home by 1. (Chris) We said midnight! OK ... I'm going to check the LifeLogger, and I have plenty of witnesses ... (Pick up glasses and cross downstage ‐ video rolls) Don't you wish life were this easy? That you could record every conversation just for moments like this? DAUGHTER: Right, Dad ...

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By the way, I took something from your wallet ... See you tonight! (Chris) Wait! I wasn't done ... Well ... even in the future, some things never change. (Cross back up to table) My family is really important to me. If I can't stay connected ... I get totally distracted. My mother has been feeling poorly lately ... and yes, I've been worrying a lot about her. She's starting to forget things and people ... sometimes even me. Her calorie intake is down 20% this week ... and her level of activity is very low ... even on Facebook where she's usually playing games with her friends. Keeping an eye on her in my personal cloud has really helped me get some piece of mind. But not today ... I'll have one of our helping hands check on her. Thank goodness my social network is at my fingertips anytime on any device ... at work or at play. Now that I feel I can confide in all of you ... there's something else I've been putting off. I have to give a talk to a group of high school students and I'm not sure what to wear. It can't be a fancy suit or anything. And from looking out at all of you ... clearly you are the wrong group to ask for advice. So I've crowdsourced my outfit!

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Let's see what's coming in from my friends.

(Slide of fashion options) I can't believe that one is in the lead. Someone must be playing a trick on me. I need something cooler ... easier going ... like that! I can place my order now with Zamamon and they'll deliver it today. They already have my Big Data! None of this "overnight delivery" stuff. THE BOSS: Chris ... Telepresence meeting on the merger at noon today, are you ready buddy? (Chris) Sure, but didn't we say 1? THE BOSS: NOON my friend! Shall I rewind those lifelogger glasses? (Chris) No, No ... it's ok. I'll be there. THE BOSS: Hey ... can you pop in early? The market is going berserk around our supposed recall of product that we don't even sell!! (Chris) No problem ... I'll come in early. OK ... it's not Nirvana ... but sure is a whole lot better than the days before the creative destruction. 00:39:10 (David enters) (David) There you have it ... a future in which the forces of ... ‐ cloud, ‐ mobile ‐ social,

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‐ and information reconfigure how people work ... AND live. A world in which business and personal lives are intertwined. A world with fewer command and control restrictions that stifle productivity and innovation. Chris shows an environment where information technology does not define the rules ... instead it is a key ingredient in achieving personal and enterprise productivity & innovation. Where technology is so natural and pervasive ... we don't even need to hold it in our hands. It's just a part of our lives ... even a part of us. Everything you saw in Chris' reality is possible today. Now ... let's take a minute to look behind the scenes ‐‐ under the IT hood, if you will. A lot of things are needed in Chris' personal and professional life. ‐ The dynamic portals. ‐ The layers of middleware. ‐ The real‐time information feeds ... all brought together in an intuitive design. The external sources of data including the cloud ‐‐ which is everywhere Chris is ‐‐ via his flexible, ultra‐thin mobile device, and his eyewear. He may even get alerts in his clothing ... You never know. Then you have the social networks. Chris used them to discern his company's reputation risk ... ... IN REAL TIME ...

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ahead of his management. He also took action on his mother's medical condition ‐‐ a big source of concern for him ... ... and a big drag on productivity if he is distracted by personal issues. Some of you may frown on this mixing of the personal and professional life. To the contrary, we believe it will actually make knowledge workers more productive. To put work and personal life into harmony. Technology needs to serve Chris ‐‐ and his daughter ‐‐ as they are both your workforce and your future customer. In Chris' world ... you see vast amounts of information being collected and the real time application of constant and pervasive analytics. His ‐‐ and other savvy businesses ‐‐ are putting to work the "Big Data" insights generated by the Nexus to win in the marketplace. Big Data is being used ‐‐ not just to analyze past events ‐‐ but to predict the future. What's going to happen ...

(Slide) The United Nations Global Pulse for example, is using social data analytics and sentiment analysis to predict ... ‐ job losses, ‐ spending reductions, ‐ or disease outbreaks within a region. As citizens in every country adopt mobile phones and new technologies ... they produce ambient data as a by‐product of their daily lives. The Global Pulse aims to tap into this data ... using it as a way of looking for digital smoke signals ... to tell for example when the price of rice in India is spiking real time ... or whether a critical shortage of fuel is imminent in Uganda. And by detecting the early warning signs ... they can avert calamity.

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Global Pulse uses a social graph for researchers to share "hunches" ... create a hypothesis, attach evidence ... and then have the crowd tag and comment on it. They are assembling a human lens on Big Data ... looking for signals of distress. Every field is affected by Big Data. Retailers are already using their knowledge of you ‐‐ not only to know what you just bought ‐‐ but also to anticipate what you're about to buy. Power generation companies can predict maintenance and avoid downtime by watching for data patterns from turbine sensors. And not just one turbine, but aggregating data across power plants all over the world. As Peter said, at a point in the near future ... it will become more costly NOT to monitor the real world ... than to monitor it. (David) Hey Chris, that's quite a future you are living! (Chris) You bet! Think about the potential! ‐ a brilliant career ... ‐ better customer experiences, ‐ new businesses, ‐ the power of crowds unleashed ... ‐ being able to enforce boundaries for my daughter ... (David) Really? (Chris) ... well maybe not that. But we can ... ‐ Influence governments (that would be easier!) ‐ Find cures for disease

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‐ Fix global warming ‐ End world hunger! Everyone will have a better life! (Roll Dr. Poison video) (Chris Cross Down Center with David Following) »(Chris to audience) Oh my gosh, what are we going to do? (David) Don't panic!! (Chris) Are you kidding?? It's too late ... (David) Take a deep breath ... chill. These threats don't have to win the day ... in fact, they won't win the day. Because the people in this audience are the future of IT ‐‐ the best and the brightest are right here ‐‐ and they will guarantee you a secure and productive future. Right everyone? Right everyone? And speaking of productive, Chris ... weren't you heading to a meeting with your boss? »(Chris) Right ... thanks. Ok everybody ... I'll leave things in your capable hands out there ... but don't screw up my future. (Chris Exits) (David) Okay, if you want your enterprise to realize the promise of Chris' future and the Nexus of Forces ‐ there's some serious work to be done.

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In reality, you have two choices ... You can accelerate ... or you can put on the brakes Here's our advice. Design for openness ... and expect to continue to invest in security. Make sure your policies and procedures respond to the new Nexus‐driven threats. Counter cyberattacks – and anticipate new attacks from new sources at a high scale. Respond to "reputation" warfare and defend against social media "mercenaries" Keep pace with security best practices and invest aggressively in security technologies Invest in new technologies that support employee‐owned devices like ... ‐ mobile device management, ‐ containerization, ‐ and virtualization. This is a solvable problem. But it is, overall, an arms race. Security investments, we know, are going to dramatically increase. An already large security market is about to get much bigger ... growing by 56% from current levels. Cloud security will almost triple over 5 years. Already healthcare providers are doubling or tripling their security budgets. One key reason is regulatory compliance. We must anticipate and plan for the coming wave of government interventions and regulations. Since every Business Budget is an IT Budget ... as information technology will be pervasive in all operations, regulations from the analog world will come to the digital. Pay attention to the bills making their way through governments across the world.

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So compliance is going to get more complex. We've been predicting this for a long time ... and now it is coming to pass. As you know ... no plan survives first contact with the enemy. Be ready to respond. And understand that complete lockdown is not an option in the Nexus‐enabled world. This represents "putting on the brakes" that Peter mentioned. The paradox of security is that if you try to overdo it ... you will end up with none.

(slide) If you put people in jail ... they put all their energy into breaking out. But you can design for openness ... and still protect the enterprise. (David Exits Left) (Mary Enters Right) 00:51:27 (Mary) This is actually an incredible time to be a CIO. Your CEOs want you to make your impact felt where the enterprise meets the outside world. Out where the money is made and the mission accomplished. They want you to unleash the forces that will differentiate your business. They don't want you spending "all" your time automating the back office. The value CEOs seek is in digitizing the interface between your enterprise and its customer or citizen ... creating whole new business opportunities in the process. Our message to you is this ... The nexus holds the promise of ...

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‐ new revenue streams, ‐ new missions, ‐ and new possibilities. But just making digital copies of your existing business model will not get you there. To see what I mean, consider this:

(Slide) Is it a store? An image? A subway station? As a matter of fact, it's all of these things. ‐ Tesco's South Korean grocery retailer, Home Plus, has implemented life‐size pictures of retail shelves at subway stations. Passengers can scan in 2D barcodes to add items to their digital shopping cart for home delivery. This type of scenario ... ‐ it's not exactly mobile commerce ‐ it's not exactly physical ‐ and it's not only digital either. It exists at the edge ... it reaches out to meet the customer. And this is happening now. Home Plus is now the most popular shopping app in Korea ... approaching 1 million downloads. Tesco is expanding it beyond train stations to bus stops. Inspired by scenarios like this ... what is your next step? Start by pretending you are an entrepreneur trying to displace your business ... your own enterprise. Will you do this ... or will your next competitor? Imagine that you don't have to deal with ... ‐ your legacy technology, ‐ bureaucratic processes ‐ or existing products. What would the Nexus allow you to do to better serve the marketplace?

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How would you do it? We think that the opportunities that you identify are likely to be net new opportunities ... where the money is made and the mission accomplished. Then ask ... "What ideas and skills exist today "within" your enterprise?" You might be surprised. Cemex was. Consider how Cemex ‐‐ a building supplies company based in Mexico ‐‐ has created new opportunities by harnessing the power within. Cemex is using their project called Shift to drive innovation from the inside out ... rather than top down. (Roll CEMEX video) 00:57:20 (Mary) This is the way forward ... through collaboration deep inside the enterprise. Changing the mindset. And here's one more thing you did not hear in the Cemex story. They use a vast amount of fuel in their operations. They are constantly searching for more energy efficiencies, via the alternative fuels that Miguel mentioned. Thanks to Shift ... they discovered an expert hidden deep in their German operations, who turned out to be well versed in fuel sources. In a short period of time, he has emerged as the global leader and now consults with senior management on the subject. They've found new leadership with the Nexus. Cemex shows that it is not about your role in the company, or where you sit in the org chart. It is about the quality of engagement of your people. Engage people with a goal ... a sense of purpose ... and they get motivated to do the most extraordinary things.

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It's also about leading a change in mindset. And when it comes to mindset ... language is important. Something as small as what you name your project can impact its outcome. What’s the worst thing you can name your project? Name it after a vendor – as in, the SAP or the Oracle project. The second worst thing you can name it is after a technology, as in the ERP project ... or the CRM project. Only slightly better is naming it something obscure ‐‐ like Project Raptor or Project Phoenix. I’ve never understood why in IT ‐‐ we are so obsessed with naming projects after animals that are nonexistent or extinct. Is that really the message we want to be sending? We’re extinct? Notice that CEMEX named their project SHIFT – as in a transformational shift in the way they think – and lead. Challenge yourself to find a name that changes mindsets and outcomes. Like ... ‐ the double our margins project, ‐ the customer access project, ‐ the creative destruction project. This is the age of the engagement economy ... engaging your employees is key. Mass collaboration is already becoming critical. Here’s the problem ... According to Gallup, only 29% of your employees are actively engaged in their work. 29% ... this is low.

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So, how can you engage the other 71% The answer is ... Let them play! Pop quiz: What’s the opposite of play? I bet most of you thought it was work, right? Wrong. According to Brian Sutton‐Smith ‐‐ expert in games and play ‐‐ the opposite of play isn’t work. It’s depression. Human beings are hard‐wired to play. It’s good for us. So, why do we insist on the fiction that being at work means acting serious and sombre? Is that the way to more engagement?

(Slide) Gamification ... ... holds a lot of promise for the future. The next time you are asked to innovate, engage, or solve a problem ... consider turning the challenge into a game. We learned from Chris that this isn’t easy stuff ... but it works!

(Slide) Looking beyond internal gamification ... you need a laser focus on your customer. Set an ambitious goal this year. If you cannot explain how every project in your discretionary budget affects the end customer or citizen ... don’t do it. Be more like International Speedway Corporation ‐‐ a company that puts the customer at the center and has a competitive edge. ‐ They went social,

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‐ they went mobile ‐ and they got the customer. (Roll ISC video) 01:04:25 (Mary) This is what we mean by accelerating success. ISC got social ... they got mobile ... they got real time ... and they fully engaged the customer. They created a new experience ... and customers love it. ISC is not alone. CIOs in every industry recognize that focusing on the customer is the major driver of innovation. The likelihood that a customer will recommend your brand to a friend or colleague ... matters. Are your customers so excited about what you do ... that they will proudly wear your logo on their body? The results speak for themselves. Customer satisfaction drives revenue growth. Use a measure such as ... Net Promoter Score ‐‐ a way of measuring positive and negative word of mouth about your brand ... like Chris’ dashboard, showing his company’s reputation score. Companies with high Net Promoter Scores grew four times faster than their competitors with low scores ... focusing on the customer pays dividends. And the customer experience is more and more digital, so you have a role to play here.

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Speaking of the customer at ISC ... did you see in the video that it almost felt like the CMO and CIO could practically finish each other’s thoughts? And the common ground was ALWAYS the customer. This reflects the kind of organizational collaboration necessary to leverage the Nexus of forces ‐‐ and it starts at the highest level. For both of them, the CMO and the CIO every budget is an IT budget. Your role is changing. Embrace the new reality. IT needs working relationships with marketing, R&D, manufacturing, HR and even legal to make this work. CEOs value experience beyond IT in their CIOs. In fact, half of CIOs already have responsibilities ... like Business Process Owner, Head of Innovation … or Chief Strategy Officer. From your vantage point ... sitting at the heart of your business, you may be well positioned to lead other areas. The Silicon ceiling is cracking. Gartner believes the Chief Digital Officer will prove to be the most exciting strategic role in the decade ahead … and you have the opportunity to be the leaders who will define it. (David Appears at Table) To play in this space ... you will need to take charge of the digital business strategy. That's a long way from running back office IT. It represents ... ‐ a chance to change ‐ a chance to grow ‐ a chance to thrive. Out where the enterprise meets the customer ... where the revenue is generated and the mission is accomplished.

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(Chris returns) (David) Hi Chris ... Welcome back. How is the future going?” (Chris) Great … we beat back a social media attack. We announced the merger, and my boss indicated I was in for a promotion. To top it all off ... while I was in the meeting ... I got good news on my Mother. (David) All that and you had time to change. You look pretty dapper. (Chris) Yes, I changed for my meeting. The Clooney look won. Oh … yes … the delivery vehicle actually tracked me on my way to the meeting and delivered my new outfit there … the future is great. I get what I need when I need it. I connect with people that share my interests and purpose. The technology I need is there ... but I don’t see it. It … just ... works!! (David to Chris) Exactly!! And it’s that invisible ubiquity of the right technologies that is powering your personal agility and great contribution to enterprise success! You know ‐ YOU are the personification of my message to this audience out here. (David to audience)

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At the end of the day ... YOU are accountable for the value IT delivers to the business. YOU are the future of the business. You must unleash the power of the nexus. You must Focus on the new opportunities Connect the people and resources … and lead enterprise transformation in the new Nexus ... while ... (Chris) Hey … wait a minute. Are you one of those analyst geeks who is always telling people what to do ... (David looks at audience) (Chris) ... but has absolutely NO responsibility for P&L? (David) Well yeah, but guess who helps ensure you make your P&L? And by the way … I'm NOT a geek. (Mary Crosses Up Left to table) (Peter Enters Stage Right) (Peter) The Nexus of Forces is upon us. ● Propelled by the consumer ● Profoundly impacting vendors and the IT market ● Changing your spending on informa on technology ● Crea ng new roles and new opportuni es ● and, Driving new revenue streams So what is to be done? Treat every budget like an IT Budget

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Hire and train for the new information layer. (David Cross Down Left) (David) Implement a serious, modern approach to security. Rather than putting on the brake ... design for openness, invest in security and accelerate the promise of the Nexus. (Mary Cross Down Center) (Mary) ‐ Embrace net‐new opportunities like Tesco did. ‐ Innovate from within, as Cemex has. ‐ And be more customer focused, like ISC. (Chris) Get out of the way of the new leaders who are spread throughout your business. Adapt to them ... stop prescribing for them. They are your biggest ally. (Peter) When you think about it ... this is an extraordinary time in human history. IT is changing the world. IT professionals are changing the world. IT is at the center of every business, every government agency ... from the back‐end to the edge ... and all the way out to the customer… where the money is made and the mission accomplished. You are not simply the IT leader of today. You are the IT leader of tomorrow. Thank you ... and may the Nexus of Forces be with you.

Keynote Symposium ITxpo FINAL - Gartner · © 2013 Gartner, Inc. and/or its affiliates. All ......

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Transcript of Keynote Symposium ITxpo FINAL - Gartner · © 2013 Gartner, Inc. and/or its affiliates. All ......