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Page 1: Digital Transformation

THE SILVESTRI GROUP

DIGITAL TRANSFORMATION STRATEGY Re-imagine Your IT Digitalization

Thomas Silvestri

3/3/2016

Page 2: Digital Transformation

THE SILVESTRI GROUP | Thomas Silvestri, Managing Partner | 3600 N Lake Shore Drive #2608, Chicago, IL. 60613 | [email protected] | www.thomassilvestri.com

DIGITAL TRANSFORMATION STRATEGY

Re-imagine Your IT Digitalization

The fast pace of change that is driven by digitalization, the opportunity to experiment with ways to relate

to constituencies via mobile, cloud and analytics, and the chance of testing new business models enabled

by the IoT are at odds with the classic systematic approach to integration. Systematic integration cannot

deliver new, just-in-time integrations (for example, a new API to support a mobile app for clients that

must be released in just a few days) or may not be scalable enough to support the myriad of unplanned

integration flows needed in the context of multiple mobile AD projects, cloud service rollouts, real-time

analytics efforts and IoT initiatives.

Digital Business — A "nonintegrated digital business" is an oxymoron. Digitalization does give

organizations an opportunity to establish personalized and responsive relationships by enabling

"right-time" integration with their constituents via social media, business networks, mobile

applications and APIs.

Bimodal IT — To support the digital era's rapid pace of change, organizations of every size, in every

geography and in every industry are increasingly looking at a two-speed (bimodal) IT strategies

where slowly evolving, "run the business" IT systems (Mode 1) need to coexist and interoperate with

fast-changing and innovative "transform the business" initiatives (Mode 2).

Application Strategies — Often, organizations look at cloud as the primary source of innovation in

business applications and technology platforms — while trying to reduce their IT operation costs.

However, cloud services must be integrated with established, usually on-premises, system-of-record

applications in the context of postmodern application strategies.

Internet of Things — The Internet of Things (IoT) can enable unprecedented degrees of efficiency

and business model innovation. However, it also requires organizations to integrate the new world of

"smart things" and the data they produce with back-end business processes, data and analytical

environments.

Competitive Advantage — Modern technologies (such as social, mobile, analytics, cloud and the

IoT) are easily accessible to any organization, but also to its competitors. They can therefore give

organizations short-term, first-mover benefits; but, alone, cannot help to build a sustainable

competitive advantage. Organizations can, however, maintain differentiation through original, smart

and fast integration of such technologies (see Note 1).

Global Integration — Business relationships are becoming more transient and volatile; therefore,

not only the ability to rapidly integrate, but also to quickly disintegrate is critical. For example, rapidly

disengaging from a supplier to replace it with a more efficient alternative; substituting, with minimal

disruption, a cloud service with a more innovative offering; or switching to alternative IoT devices

can make a big difference from a business perspective.

Privacy — The enormous data governance and the need for data collection on global devices

creates a perfect storm of privacy issues. The millennials generation is producing new data points

Page 3: Digital Transformation

THE SILVESTRI GROUP | Thomas Silvestri, Managing Partner | 3600 N Lake Shore Drive #2608, Chicago, IL. 60613 | [email protected] | www.thomassilvestri.com

and data science of analytics to control the opportunity of the global privacy and security through

rigorous availability of the control objects and consumer features localized on global mobile devices.

Cybersecurity —The global expansion of internet IP and related wireless protocols connecting all

points of the systems via the proliferation of mobile devices has cause for alarm amongst security

experts. The rapid deployment in the response to the prosumers increasing consumption for mobile

internet, video, and live streaming has developed security opportunities for hackers. The company for

profit motive drives the security of systems ever increasing the periphery of the systematic security

threats across the global spectrum to evade the cost benefits of upgrading and ultimately addressing

the fact of their critical network systems and policies are under a 24/7 cyber threat.