bdpa technology conference 2015finalchris jackson · the rate of adoption and change in the...

BDPA Technology ConferenceTechnology Trends – Disruptors and Enablers

Christopher A. JacksonAugust 2015

@chris_jackson1

www.linkedin.com/in/christopherjackson1

2Chris Jackson – Chief of Staff DGES: 2015 BDPA Conference Presentation

Copyright © 2015 Deloitte Consulting, LLP. All rights reserved.

Contents

1. FIVE IT FORCES RESHAPING BUSINESS

2. NOTABLE TECHNOLOGY TRENDS FOR 2015 FROM MID-MARKET SURVEY

3. CIO/CFO AREAS OF FOCUS

4. BLURRING OF CFO AND CIO ROLES

5. ADAPTING TO A SHIFTING TECHNOLOGY LANDSCAPE



Technology Trends – Disruptors and Enablers

Chief of Staff - Deloitte Growth Enterprise Services (DGES)

E-mail: [email protected]

@chris_jackson1

www.linkedin.com/in/christopherjackson1/

Profile Summary: Chris has direct responsibility for the development and delivery of Deloitte Consulting’s DGES strategy and operating approach. He is a frequently requested speaker on global competitiveness, technology strategy, and emerging technologies.

In addition to being a member of Deloitte’s Technology Strategy and Architecture practice he is active in the following organizations; United Way, Junior Achievement, the National Association of Black Accountants (NABA), Information Systems Audit & Control Association (ISACA), The St. Louis Dream Center (a Joyce Meyer Ministry), and he is also a Lifetime Member of the Black Data Processing Association (BDPA)

Five IT forces reshaping business



Five Information Technology Forces

The magnitude of change and impact happening right now is unprecedented. These forces are the most persistent and formative, serving as categories for the many other smaller trends driving business. The controlled collision of these forces is affecting every corner of every industry.

DIGITAL

ANALYTICS

CORE RENAISSANCE

CLOUD

BUSINESS OF IT

CYB

ER



The rate of adoption and change in the workforce is staggering…The Technology Landscape

Technology is the single biggest enabler of a mobile workforce, and much of this capability is already in place and pervasive due to business process change and continuity concerns.

Desktop Laptop Smart phone Tablet

Wi-fi

3d printingWearables

Desktop teleconferencing

The Cloud -Infrastructure

1990s 2000s 2010-2015

Artificial Intelligence

Analytics Cyber SecurityPredictive Analytics

Cloud Integration

Internet of Things

Core Renaissance



2015 Deloitte Tech Trends



2015 Exponentials

Quantum computing

Cyber security

Artificial intelligenceAdditive manufacturing

Robotics

Industrial biology



IoT means creating and acting on insight from things

StagesTechnologiesValue drivers

Ambient Computing is the state reached when IoT works naturally, enabling decisions and actions with maximum impact and minimum effort.



Enabled by the confluence of drivers and capabilities

Miniaturization and high-performance

computing

Consumerizationof IT

Technology cost reduction & economics

Intelligence & analytics

IoT

Integrate information flow between devices from a range of global manufacturers with proprietary data and technologiesAnalyze and manage the physical objects and low-level events to detect signals and predict impactOrchestrate those signals and objects to fulfill complex events or end-to-end business processesSecure and monitor the entire system of devices, connectivity, and information exchange

IoTTechnology

Drivers

Ambient Computing Capabilities



IoT has cross-industry applicability

Financial Services

Energy & Resources

Automotive / Transportation

Healthcare

Manufacturing Military Smart Cities

Retail & Vending



Wearables add to the value proposition

Customer Service

Warehouse & Logistics

Public Sector

Retail

Field Service

Healthcare



The stage is set for exponential growth within IoT

2 3 45

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2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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bal M

2M C

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(billi

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Global M2M Connections 2012-2022 5 $14 trillion of value at stake from 2013 to 2022 1

$1.9 trillion global economic value creation by 2020 2

$9 trillion in annual technology and services spending by 2020 3

212 billion things connected by 2020 3

26 billion embedded devices and intelligent systems by 2020 2

50 trillion GBs of data by 2020 3

25+ million apps by 2020 3

75% of executives exploring/adopting IoT 4

Sources: 1. Cisco IOE Value Index 2013; 2. Gartner, Nov. 2013; 3. IDC, Oct. 2013; 4. The Economist, Oct. 2013; 5. Machina Research 2013

Notable Technology Trends for 2015 from Mid-Market Survey



Technology becomes strategic, driving other factors2015 Technology trends affecting the Mid-Market

• C-suite as tech champion: company leaders are pushing emerging and next-generation technology like never before, signaling greater harmony between IT leaders and the executive suite

New Tech Leaders• The IT department is

paying more attention to customer engagement

Customer Engagement• Mid-market firms are

markedly more positive about revenue than they were compared to a year ago, and that they’re convinced more than ever that technology will help them drive increased revenue

Revenue



Technology becomes strategic, driving other factors2015 Technology trends affecting the Mid-Market

• Predictive analytics is permeating many business areas, although managing data remains a formidable challenge for companies

• Enables better client relationship management and anticipates client needs, driving greater business opportunities

Analytics• The share of company

resources dedicated to technology is up, indicating an important shift as organizations recognize the return on investment in tech-related spending

• Headcounts are up as companies have accelerated hiring, as evidenced by the strongest job market in nearly a decade for recent college graduates

Talent• Cloud computing is

moving from an abstract notion to a universal need across a range of critical business functions as companies appear to have gained fluency on cloud computing

Cloud



Security

Governance

Exciting times for midmarket companies but not without challenge

Plans, opportunities, challenges

Innovation IncreasedspendOptimism

Strategy

Leadership Keeping up



2015 Trends for Cloud-based solutions

Key driversRapidly-growing enthusiasmGreater flexibility SecurityTalent readinessIncremental adoption

Trends

More companies report they’re already cloud-based or are moving to the cloud

Companies reporting “mature” deployments within cloud computing has jumped ~3X

Cloud adoption has accelerated. Only 2% of companies say they’re still waiting to take action

Cloud applications and analytics perceived to have most productivity gains

Sales/Customer Management continue to be the top business functions for cloud considerations.



2015 Trends for Analytics-based solutions

Key driversIn all cases in our survey, companies have adopted the varying delivery models for analytics at increasing rates. This signals not only familiarity but also expanded mastery of the technologywithin analytics.

Trends

Significant increase in companies using analytics, impacting on employee work streams as well as customer experience

Increase in share of companies using predictive modeling analytics to guide business growth since last year

Growth in companies designing or implement integrated analytics solutions

Sales and customer relationship management, marketing, and human resources functions are driving corporate adoption of analytics



2015 Trends for Analytics-based solutions (Obstacles)

Unstructured data poses a challenge in the adoption of analytics

There is a massive amount of data companies have no ability to track or make use of.

The fact that 90% of the world’s data has been created in the past two years helps explain why companies are wrestling with the topic



2015 Trends for Cyber Security

Key driversCyber security remains top of mindfor respondents in our survey, but prevention and attack methods are uneven. For many, it could even be seen as a “hope for the best” scenario when considering many companies trust cloud/third-party providers with sensitive information..

Trends

43% of respondents say they encrypt sensitive information.

~60% respondents have plans to manage internal information threats and external threats.

Only 25% of respondents say they offer education and training on information security

57% - say they earmark between 1% and 5% of spending on information security



2015 : Other Notable Trends

Trends

4X more executives are serving as champion of technology and shaping technology strategy

IT department, aided by executive support, increasingly focused on designing better customer interactions

Customer Intimacy is becoming key as social capabilities appear to be drive deeper, long-lasting customer relationships.

CIO/CFO Areas of focus



Disruptive external forces transforming business…

Changing Technology

Shifting Market Risks & Regulations

Information Technology Trends

• Mobile• Social• Cloud• Analytics• Cyber• IT Org./Delivery Models

• Material Science• Mechanical Science• Medical Science• Advanced Mathematics

Extended Ecosystems Exploitation

Competitor “First-Mover” Advantage

Risk & Regulatory Requirements

Cyber Attacks/ Security Threats

Natural Disasters

YOU INC.THE MARKETPLACETHE WORLD

Customer Experience Expectations

Applied Technology Trends (fueled by IT)



…And the driving internal factors we deal with

BusinessStrategy

Demand-side

Supply-side

Personal

Organization Pressures

Culture & Politics

IT/Business Relationship

Governance

Skillset

Experience

Personal Vision and MotivationsYOU INC.

Existing IT Systems

Current IT Performance

IT Staff & Capabilities

Business Competencies

IT Supplier Relationships

Leader



Technology is enabling and driving key aspects of the business transformation

Enable Products that grow the topline• Build or acquire capabilities to create new business models, new

products or differentiate existing products (e.g., information enabled assets, new apps, personalized content, analytics, etc.)

• Streamline and accelerate product delivery cycles

Enable business and/or operating models• Incorporate innovative advancements in cloud, social media and

digital to lower cost of operations while improving service levels• Optimize the leverage of technology within and across business

functions and eco-system partners

Manage IT resources to deliver “more, faster and for less”• Cost-effectively consolidate platforms and reduce the cost of

delivering traditional IT services• Leverage a partner ecosystem that extends the supply of core

functionality/capabilities and provides elasticity

Manage risk and protect digital assets• Prevent and manage cyber attacks and threats • Protect digital assets• Enable data privacy and regulatory compliance

REL

EVAN

CE

OF

TEC

HN

OLO

GY

IN

TRAN

SFO

RM

ATIO

NCustomer/Business

Centric

Technology Centric

Revenue Generation

Business Operations Enablement

IT Performance Management

Risk Management



Key priorities and focus for CIOs/CFOs have traditionally been to work within budgets and operating models and to keep risks low.

The business of keeping the lights on…

Enterprise-class software

Implement, extend, or upgrade corporate wide systems

Talent Hire personnel to support a modestly maturing technology portfolio

Efficiency Use standardization and automation, as examples, to alleviate cost pressures

Reliability Improve system and network availability and uptime

Supply Chain Negotiate and drive down costs from vendors and third parties



IT organizations need to develop new capabilities while driving what could be an extensive evolution of existing capabilities.

…versus the new reality for IT

PortfolioMindset

Mix of investment/risk profiles, culture to accept constructive failure

Delivery Model Mix of agile and traditional waterfall for new projects, ongoing maintenance

Talent Revamped strategies for recruiting, staffing, skill-sets

Org. Dynamics Rethinking conventional organizational structures, facilities, work arrangements

IndustrializedInnovation

Deliberate approach to trend sensing, ideation, experimentation, prototyping

Blurring of CFO and CIO Roles



Adopting a VC mindset amplifies the distinct faces that CIO/CFOs need to embrace to maximize business value delivered to the enterprise.

Minding the four faces of the CIO/CFO

STRATEGYPartner with the business to align business and IT strategies and maximize the value of technology investments

TECHNOLOGISTAssess technologies and design technical architectures to increase business

CATALYSTInstigate innovation

through transformational

change to business architecture, strategy,

operations and technology

OPERATOROperate and deliver

efficient IT services and solutions to support the

business while managing risk and

protecting core assets



Taking a venture capitalist approach

Venture capitalists identify and evaluate investments in a way that drives enterprise value in terms that business leaders understand.

Manage portfolios of investments, continually evaluating individual and aggregate investments in terms of value, risk, and reward

Cultivate agile organizations to anticipate and respond to changing market conditions

Attract entrepreneurial talent with technical skills and business savvy as well as vision, passion, and the intangible spark of leadership

Portfolios

Agility

Talent



So what should you do to get started?Beginning to look at your IT organization through a VC’s lens…

What opportunities, or life events, support VC-like action?What opportunities, or life events, support VC-like action?What types of portfolios do I

have? And am I diversified?

What types of portfolios do I have? And am I diversified?

What is the relative health (risk, value, strategic importance) of each of my portfolios?What is the relative health (risk, value, strategic importance) of each of my portfolios?

What investments, or even portfolios, should be shut down? What investments, or even portfolios, should I direct more assets to?

What investments, or even portfolios, should be shut down? What investments, or even portfolios, should I direct more assets to?

What, and where, are there talent gaps?What, and where, are there talent gaps?

How can I better communicate to and partner with the business to improve my portfolio’s value?How can I better communicate to and partner with the business to improve my portfolio’s value?

What opportunities am I currently missing? Can external partners help?

What opportunities am I currently missing? Can external partners help?

What is the risk tolerance across portfoliosWhat is the risk tolerance across portfolios

Who is my ecosystem?Who is my ecosystem?



Categorizing portfolios: (i.e. run the business, grow the business, compliance/regulatory, and innovation)

• Can identify where budget, talent, and other IT assets are focused vs. neglected

Defining portfolio strategies:

• Can establish intended objectives, financials, and risk profiles in the portfolio

• Can better inform CIO/CFOs regarding how portfolios affect IT assets such as hardware, software, facilities, delivery models, contracts, and talent

Developing portfolio investment strategies

Portfolio should be logical groupings of related investments; as such, portfolio strategies should be different across portfolios.



Doubling down (and cutting losses)

Quantitative and qualitative value delivered by portfolios and investments supports prioritization and decision-making.

• Evaluating portfolio performance, and understanding asset allocation against portfolios, supports prioritizing initiatives that are mission-critical for the business

• Taking intelligent risks based on facts and figures builds consensus

• Assessing the strengths and weakness of potential investments can identify those that might eventually be “winners”

• While CIO/CFOs may not be able to predict which investments will deliver the greatest ROI, they can take steps to identify exceptionally promising candidates

Adapting to a shifting technology landscape?



Consider starting with the foundation

12345

Be aware of what’s happening in the tech world

Conduct proportionate business case

Build an innovation portfolio

Leverage technology partners and vendor alliances

Consider the talent and cultural impact to your firm

Plan Big, Start Small, Fail Fast, Scale Appropriately



Then scale begin to the edges focusing on the future

678910

An engaged ecosystem of sponsors, end users etc.

Alignment with the company’s overall portfolio

Design as a discipline across the enterprise and cultural acceptance of failure

Security, scalability, reusability, maintainability, reliability

The right talent model (employees, vendors and crowdsourcing

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2014 Deloitte Development LLC. All rights reserved.36 USC 220506Member of Deloitte Touche Tohmatsu Limited

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