the four changes in it because of digital technology

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Making the leap to next Four shifts needed to lay the foundation for your digital transformation.

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Page 1: The four changes in IT because of digital technology

Making the leap to next Four shifts needed to lay the foundation for your digital transformation.

Page 2: The four changes in IT because of digital technology

It’s become a familiar story.

A young entrepreneur sells his first product for an enormous sum.

Next?

Page 3: The four changes in IT because of digital technology

He makes incremental improvements to a range of products, leaving the world always wanting more.

Page 4: The four changes in IT because of digital technology

At the same time, he keeps coming up with new inventions.

Page 5: The four changes in IT because of digital technology

And he does it at a furious pace — setting the goal of a minor invention every 10 days and a major one every six months.

Page 6: The four changes in IT because of digital technology

His name?

It’s not Yang (Yahoo), Musk (Zip2), Dorsey (Twitter) or Fadell (Nest).

Page 7: The four changes in IT because of digital technology

Source: Henry Ford Museum, Menlo Park Museum.

It’s Thomas Edison.

Page 8: The four changes in IT because of digital technology

Although digital has changed everything, the mindset for succeeding has not. So what’s the first shift in your digital transformation?

Page 9: The four changes in IT because of digital technology

You need to undergo a fundamental change in the way you deliver new functionality.

Page 10: The four changes in IT because of digital technology

Embrace innovation, continuously. A single, 18-month project that consumes IT? That’s the past.

01S H I F T

Page 11: The four changes in IT because of digital technology

For the foreseeable future, we must be focused on achieving continuous innovation in the face of ferocious competition. To get there?

Page 12: The four changes in IT because of digital technology

We’ll need to be experimental and focused on continuous improvement.

Just like Edison’s Menlo Park invention factory.

Page 13: The four changes in IT because of digital technology

If we look at the growth “outliers” — the small percentage of businesses that grow by 5% or more year after year — they share a common trait.

Page 14: The four changes in IT because of digital technology

More than other companies, the outliers act like Edison and embrace continuous innovation.

Page 15: The four changes in IT because of digital technology

They’ve already made the jump from where many of us are now to what’s next.

Page 16: The four changes in IT because of digital technology

Achieving continuous innovation

NOW

Big proje cts Large inve st ment

Long-t ime sp anMust- succe e d

mental i ty

Page 17: The four changes in IT because of digital technology

Achieving continuous innovation

NOW NEXT

Big proje cts Large inve st ment

Long-t ime sp anMust- succe e d

mental i ty

Fast-fa i l mental i ty

Hundre ds of transformations acro ss the busine ss

Smal ler, i terat ive appro ache s

Shor ter t ime sp ans

Page 18: The four changes in IT because of digital technology

Achieving continuous innovation

NOW NEXT

Big proje cts Large inve st ment

Long-t ime sp anMust- succe e d

mental i ty

Fast-fa i l mental i ty

Hundre ds of transformations acro ss the busine ss

Smal ler, i terat ive appro ache s

Shor ter t ime sp ans

GETTING TO NEXTSp e e d is everything

Infrastructure must b e ab stracte d as co de

Container izat ion i s re quire d

Every enterpr is e wi l l ne e d a “r ight mix” of hybrid IT

Page 19: The four changes in IT because of digital technology

A change in processes is just one part of what’s needed to support continuous development.

The other part?

Page 20: The four changes in IT because of digital technology

Giving rise to fearless innovators.

Transforming your business operations will involve more than just enterprise IT.

02S H I F T

Page 21: The four changes in IT because of digital technology

Customer experience. Products and services. Product group and core operations group.

Page 22: The four changes in IT because of digital technology

We’ll need to democratize development and empower all those with a stake in what comes next.

Page 23: The four changes in IT because of digital technology

This shift is already taking place. More than 70% of digital transformation

projects are business-led.

IT-LEDBUSINESS-LED

Source: IDC, July 2016

28%72%

Page 24: The four changes in IT because of digital technology

With business-led transformation becoming the new reality, let’s look at how we get to next.

Page 25: The four changes in IT because of digital technology

Giving rise to fearless innovators

Ente rpr is e IT lea ds

D evelo p s a ppl icat ions for bus ine s s gro up s

NOW

Page 26: The four changes in IT because of digital technology

Giving rise to fearless innovators

Ente rpr is e IT lea ds

D evelo p s a ppl icat ions for bus ine s s gro up s

Manufactur ing

Main tenance

Pro ducts

Customer ex p er ience

Supply chain

Supp or t

Non- exp er ts from busine ss group s develop appl icat ions

NOW NEXT

Page 27: The four changes in IT because of digital technology

But if our teams are cross-functional, not everyone will have 20 years of application development experience.

So how do we get to next?

Page 28: The four changes in IT because of digital technology

We put a framework in place that enables everyone to “fearlessly innovate” without damaging the enterprise.

Page 29: The four changes in IT because of digital technology

Giving rise to fearless innovators

Ente rpr is e IT lea ds

D evelo p s a ppl icat ions for bus ine s s gro up s

Manufactur ing

Main tenance

Pro ducts

Customer ex p er ience

Supply chain

Supp or t

Non- exp er ts from busine ss group s develop appl icat ions

Non- exp er ts can innovate without worrying ab out s e cur ity, qual i ty and assurance, p er formance f lexing with demand

Non- exp er ts can eas i ly create comp o s able app s

Non- exp er ts can ins er t API s onto systems of re cord

NOW NEXT GETTING TO NEXT

Page 30: The four changes in IT because of digital technology

Giving rise to our fearless innovators will accelerate business operations transformation.

Page 31: The four changes in IT because of digital technology

Empowering them and ensuring their decisions are driven by the right data?

That will require two final shifts.

Page 32: The four changes in IT because of digital technology

Going to the edge (and back).

Today, most enterprises send and analyze all their data at the center of their operations.

03S H I F T

Page 33: The four changes in IT because of digital technology

But what happens if the data we’re analyzing is 4K 3D video from security feeds?

Page 34: The four changes in IT because of digital technology

Or if the data is coming from thousands of sensors in a facility?

Page 35: The four changes in IT because of digital technology

To accelerate to next, we’ll need to start empowering people and machines to make decisions at the point of impact — the edge.

Page 36: The four changes in IT because of digital technology

We b

Mobi le

Po int of s a le

Empowering the edge

NOW

D e cis ion s ma de at

t he center

Page 37: The four changes in IT because of digital technology

We b

Mobi le

Po int of s a le

Empowering the edge

NEXTNOW

D e cis ions made at the e dge

D e cis ion s ma de at

t he center

Page 38: The four changes in IT because of digital technology

So what technology is needed to support decision-making at the edge?

Page 39: The four changes in IT because of digital technology

D e cis i on s ma de at

t he center

D e cis ions made at the e dge

We b

Mobi le

Po int of s a le

Edge - opt imize d compute

B eacons and Wi-Fige o -p o sit ioning

Analyt ic s of human and IoT data

Prote ct ion for increas e d at tack sur face

Conne cte d appl icat ions in anything and everything

Empowering the edge

NEXTNOWGETTING TO NEXT

Page 40: The four changes in IT because of digital technology

Advancing data science.

As with the democratization of development, we’ll need to rethink our approach to data.

04S H I F T

Page 41: The four changes in IT because of digital technology

Instead of expert users, we’ll have business users.

Page 42: The four changes in IT because of digital technology

Instead of analyzing a single type of data, we’ll analyze all kinds of data.

So what does this shift look like?

Page 43: The four changes in IT because of digital technology

Ana lys is of t ra ns act ionso ccurs in t he p ast

Advancing data science

NOW

Page 44: The four changes in IT because of digital technology

Ana lys is of t ra ns act ionso ccurs in t he p ast

Data from everywhereanalyze d in real -t ime

Analysis on human data

Analysis on trans act ions

Advancing data science

NEXTNOW

Page 45: The four changes in IT because of digital technology

What’s needed to get us there?

Page 46: The four changes in IT because of digital technology

Data s c ience that understands humans

Data s c ience that i sn’t swamp e d by mass of Internet of Things ( IoT ) data

Data s c ience p lat form that the busine ss can play with

Ana lys is of t ra ns act ionso ccurs in t he p ast

Data from everywhereanalyze d in real -t ime

Analysis on human data

Analysis on trans act ions

Advancing data science

NEXTNOW GETTING TO NEXT

Page 47: The four changes in IT because of digital technology

We talked about what’s needed to get to next across four key shifts.

But the reality?

Page 48: The four changes in IT because of digital technology

Today, 60% of the typical IT budget goes toward “keeping the lights on.”

Page 49: The four changes in IT because of digital technology

To make the shifts, we need to free up enterprise IT capacity so they can innovate.

How?

Page 50: The four changes in IT because of digital technology

By creating a new blueprint for IT in the digital era.

Page 51: The four changes in IT because of digital technology

Fre e up en terp r is e IT ’s

cap a city to in n ovate

Plat form appl icat i onsthat del iver for

cont inuous ,exp erimental

innovat ion

Plat form to im p rove custom er exp er ien ce s

at th e Ed ge

A nalyt ic s p lat form to accelerate t im e to

i ns igh t an d act ion

Page 52: The four changes in IT because of digital technology

This is how digital leaders are preparing for — or already meeting — the demands of the future.

Page 53: The four changes in IT because of digital technology

Ready to start powering your digital transformation?