You are on page 1of 81

CONFIDENTIAL AND PROPRIETARY

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain
information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
©
0 2016© Gartner, Inc. and/or
2016 Gartner, its affiliates.
Inc. and/or All rights
its affiliates. reserved.
All rights reserved.
Your Your
Digital Your Business
Platform Leadership Contribution

1 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


The end of the IT department The IT department is dead
Signal vs. Noise WHY YOUR COMPANY’S IT NETWORKWORLD
DEPARTMENT IS DEAD
JAN 7, 2008
Feb 23, 2011 NETWORKWORLD JAN 7, 2008

ARE CIOS STRUGGLING TO SURVIVE?


IS THE CIO NETWORKWORLD.COM | JANUARY 22, 2009

OBSOLETE?
CIO UPDATE THE
OCT. 23, 2006
NEXUS OF
FORCES Advice for CIOs Struggling
to Survive
CIO Really, NetworkWorld Jan 22, 2009

Sincerely Dead?
IT Doesn’t Matter
08.19.2011 fcw.com HARVARD BUSINESS The future of IT will be reduced to three
REVIEW MAY 2003 kinds of jobs
TECH REPUBLIC | JULY 22, 2011
2 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
INFLUENCE
SCALES
CHIEF
DATA CHIEF
CHIEF OFFICER INNOVATION
DIGITAL CHIEF
OFFICER
OFFICER TECHNOLOGY
OFFICER

CONTROL
DOES NOT
3
Source: "Rising to the Challenge of Digital Business: Key Insights From the 2015 Gartner Symposium/ITxpo Keynote," November 2015
© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
YOUR
PART 1 DIGITAL PLATFORM

4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Your
Digital
Platform
1.Treat IT Investments as Assets
2.Build the new Digital Platform
3.Reorganize for Digital

5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Cost Optimization for Digital Business
Digital Business

IT Cost Business Cost


Optimization Optimization

6 Source:
© 2016 Gartner,"Managing Cost
Inc. and/or its affiliates. All rightsOptimization
reserved. Primer for 2016," March 2016
Cost Optimization for Digital Business
Digital Business

IT Cost IT Cost
Revenue Employee

IT Cost Business Cost


Optimization Optimization

7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Cost Optimization for Digital Business
Digital Business

Revenue Employee
IT Cost IT Cost

IT Cost Business Cost


Optimization Optimization

8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Cost Optimization for Digital Business

Digital Business Digitalize


physical assets,
data and
business
processes.

Digitalize and
Drive IT cost optimize business
reduction while processes using
maximizing IT.
business value.

IT Cost Business Cost


Optimization Optimization

9 Source: "Managing
© 2016 Gartner, Cost
Inc. and/or its affiliates. Optimization
All rights reserved. Primer for 2016," March 2016
Change in IT Budget

TOP
PERFORMERS
4.6%
0.9% TRAILING
PERFORMERS

10 Source: "The
© 2016 Gartner, 2017
Inc. and/or CIO
its affiliates. Agenda:
All rights reserved. Seize the Digital Ecosystem Opportunity," October 2016
TOP PERFORMERS DRIVE
COST EFFICIENCIES

76%
PERCENTAGE OF
COST REDUCTION
ACHIEVED

11 Source: "The
© 2016 Gartner, 2017
Inc. and/or CIO
its affiliates. Agenda:
All rights reserved. Seize the Digital Ecosystem Opportunity," October 2016
Leaders Prioritize Business
Value Over IT Cost

TOP PERFORMERS
Support Digital
Optimize IT Costs
Business Initiatives

TRAILING PERFORMERS

12 Source: "The
© 2016 Gartner, 2017
Inc. and/or CIO
its affiliates. Agenda:
All rights reserved. Seize the Digital Ecosystem Opportunity," October 2016
THE NEW
DIGITAL
PLATFORM

Source: "Building a Digital Business Technology Platform," October 2016


INTERACT
ENGAGE
DECIDE

RUN
SENSE
TRADITIONAL
IT SYSTEMS

16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


NEXUS
17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
TRADITIONAL
IT SYSTEMS

18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


NEXUS
TRADITIONAL
IT SYSTEMS

NEXUS
External Internal

19
Source: "2017 Planning Guide for Data Center Modernization and Infrastructure Agility," October 2016
© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Source: "Forecast: Public Cloud Services, Worldwide, 2014-2020, 3Q16 Update," October 2016
Source: "Forecast: Public Cloud Services, Worldwide, 2014-2020, 3Q16 Update," October 2016
TRADITIONAL
IT SYSTEMS
Cloud
Mobile
Social
Information

NEXUS Rationalize Applications


Consolidate & Modernize
Retire Outdated Technologies
Invest in Resilience
22 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
CUSTOMER
EXPERIENCE

23 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


MEASURE YOUR
INVESTMENTS
IN CUSTOMER
EXPERIENCE

24 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


VR & AR
VIRTUAL ASSISTANTS & CHATBOTS

AMELIA
INTERNET OF THINGS
Installed Devices

Consumer 2016 Enterprise


INTERNET OF THINGS
Installed Devices

Consumer 2020 Enterprise


Source: "Forecast: IoT Data Storage Capacity, 2013-2020," July 2016
Source: "Forecast: IoT Data Storage Capacity, 2013-2020," July 2016
IoT Analytics

Customer Enterprise
Connected Connected
Objects Objects

Devices
Processes
Applications
Data
IoT Integration Platform
GARTNER
PREDICTS

Through 2018
half the cost of implementing

IoT solutions will be in


integration and security.
33 Source:
© 2016 Gartner,"Survey Analysis:
Inc. and/or its affiliates. Users Cite Increasing Complexity in Their IoT Implementations," October 2016
All rights reserved.
Realtime IoT Analytics
Analytics

Customer Enterprise
Connected Connected
Objects Objects

IoT Integration Platform


Realtime Analytics
will become
of the analytics market
30%
by 2020
Source: "How to Move Analytics to Real Time," September 2016
Intelligence
GARTNER
PREDICTS

By 2020
20% of large enterprises will
employ dedicated people
to train neural networks.
37
Based on "Top 10 Strategic Technology Trends for 2017," September 2016
© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
DATA
Intelligence
ECOSYSTEMS
Interdependent business networks
offering innovation and productivity
benefits to members through
electronic interchange.
API
MANAGEMENT

APIs
CUSTOMER
APIs

Partner &
Supplier APIs
APIs IMPLEMENT
BUSINESS POLICIES
IN THE DIGITAL
WORLD
Reorganize for
DIGITAL
IoT
Planning
40%
60%
New Organization

Existing
Organization

Source: "Survey Analysis: Users Cite Increasing Complexity in Their IoT Implementations," October 2016
IoT
30%
Existing
Implementation
Organization

70%
New Organization

Source: "Survey Analysis: Users Cite Increasing Complexity in Their IoT Implementations," October 2016
Your
Digital
Platform
1.Treat IT Investments as Assets
2.Build the new Digital Platform
3.Reorganize for Digital

48 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


YOUR
PART 2 LEADERSHIP

49 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Your
Digital Your
Platform Leadership
1.Treat IT Investments as Assets 1.Develop Your Roadmap
2.Build the new Digital Platform 2.Embrace Bimodal
3.Reorganize for Digital 3.Create Cognitive Diversity

50 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


$ 3.6 Trillion
ENTERPRISE
SOFTWARE

$ 1.4 Trillion
IMPLEMENTATION
SENSE SENSE
ENGAGE ENGAGE INTERACT
SENSE INTERACT INTERACT ENGAGE

MANUFACTURING BANKING SMART CITY INSURANCE


WHAT DOES
IT MEAN
FOR YOUR
LEADERSHIP?
MODE 2

Bimodal

MODE 1
86%PROJECTS
43%
STRATEGY

Source: "The 2017 CIO Agenda: Seize the Digital Ecosystem Opportunity," October 2016
MODE 2

BIMODAL IS NOT
Bimodal TWO SEPARATE
ORGANIZATIONS

MODE 1
Source: "Adopting Bimodal or Other Modes of Operation Primer for 2016," April 2016
MODE 1:
EXPERIENCED
HANDS
MODE 2:
BEGINNER’S
MIND
“The beginner’s mind
sees many possibilities,
while the experienced
mind only sees few.”
— Shunryu Suzuki
BEST PRACTICES
ARE SOLUTIONS TO
YESTERDAY’S
PROBLEMS
COGNITIVE
DIVERSITY
ANALYTICAL
EMOTIONAL
ARGUMENTATIVE
INQUISITIVE
DIVERGENT
CONVERGENT
BLOCKCHAIN
DATA LAND PUBLIC
PROVENANCE REGISTRY INFRASTRUCTURE
Your
Digital Your
Platform Leadership
1.Treat IT Investments as Assets 1.Develop Your Roadmap
2.Build the new Digital Platform 2.Embrace Bimodal
3.Reorganize for Digital 3.Create Cognitive Diversity

67 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


YOUR
PART 3 BUSINESS
CONTRIBUTIONS

68 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Your Your
Digital Your Business
Platform Leadership Contribution
1.Treat IT Investments as Assets 1.Develop Your Roadmap 1.Realize Ecosystem Potential
2.Build the new Digital Platform 2.Embrace Bimodal 2.Lead and/or Partner
3.Reorganize for Digital 3.Create Cognitive Diversity 3.Digital Giants: Friend or Foe?

69 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


SELLER’S
SELLERS PROVIDER
BUYERS

ECOSYSTEMS
3RD PARTY
SUPPLIER CONSUMER
SUPPLIERS

SUPPLIER’S
SUPPLIER
FOUNDATION BUYER’S
AGENT
CUSTOMER’S
CUSTOMERS
SELLERS
CUSTOMERS
70%
7 Years
PARTNER BLOCKCHAIN

BLOCKCHAIN

BLOCKCHAIN
BLOCKCHAIN
It starts with
something
simple…

…Digitalization
NEW DIGITAL ECOSYSTEM
COMPETITION
LEGACY ALREADY DIGITAL
DIGITAL
Physical Financial
CONNECTED HOME
Healthcare CONNECTED CAR
CONNECTED HEALTH
SMART CITY
MANUFACTURERS SELLING CARS WITH
APPLE CARPLAY OR ANDROID AUTO
SHOULD ENTERPRISES FEAR THIS?
Logos are representative, not comprehensive.

PRODUCTS, CARS, PLATFORMS & APPS & "SINGLE FACE TO CONSUMER &
HOSPITALS… PLUMBING SOFTWARE CUSTOMER" EMPLOYEE
GARTNER

2021
PREDICTS

By
digital giants will have
disrupted their way into
20% of ALL digital
interactions.
77 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Source: "Top Strategic Predictions for 2017 and Beyond: Surviving the Storm Winds of Digital Disruption," October 2016
Your Your
Digital Your Business
Platform Leadership Contribution
1.Treat IT Investments as Assets 1.Develop Your Roadmap 1.Realize Ecosystem Potential
2.Build the new Digital Platform 2.Embrace Bimodal 2.Lead and/or Partner
3.Reorganize for Digital 3.Create Cognitive Diversity 3.Digital Giants: Friend or Foe?

78 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


FOR MORE: see these related sessions
Civilization Signature:
Infrastructure Digital Business Signature:
2020: You Will
Platforms: Competing
Need to Compete
to Scale Your Integrating Your in a Platform
Every Organization Needs a Digital
Digital Business World
Platform Strategy
Business Ecosystem

CIOs
Can Unlock Build Alliances Opening Analyst Think at the Scale of Civilization
Digital Business to Thrive in Keynote: Building Infrastructure to Plan for Digital
Value Through Business
Business Platforms for a
the Economics
of Connections Ecosystems Digital Society

Building Platforms for a Digital


Society: Key Insights From the
Who Will Ask the 2016 Gartner Symposium/ITxpo
To the Point: Keynote
Own Your Analyst:
Digital-Quality
Industry Building a
Revenue and
Platform – Why Digital
CIOs Should
Six Ways
Business Visit Gartner Events on Demand
to Earn It http://eod.gartner.com/
Care Platform
FOR MORE:
"Building Platforms for a Digital Society: Key Insights
From the 2016 Gartner Symposium/ITxpo Keynote"
NOVEMBER 2016