Why Enterprise Digital Strategies Must Drive IT Modernization
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Transcript of Why Enterprise Digital Strategies Must Drive IT Modernization
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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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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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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