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Tech Trends 2013

Elements of Postdigital
Copyright 2013 Deloitte Development LLC. All rights reserved. 1
Tech Trends 2013: Elements of Postdigital
http://periodic.lanl.gov/downloads.shtml
Copyright 2013 Deloitte Development LLC. All rights reserved. 2
Oxygen
Pc
01
Catalyzing value from the elements of mobile, social, analytics,
cloud and cyber
CIO as the Postdigital Catalyst
#postdigital #cio #somoclo
Copyright 2013 Deloitte Development LLC. All rights reserved. 3
CIOs can lead the move to tomorrow reshaping business as
usual, and driving innovation. On the one hand, they face
unprecedented opportunity for innovation. On the other, the
existential threat of disruption. How should business respond?
And who better to lead than the CIO?
Whats different today?
Digitalization is the rule vs. the exception
Individual forces are maturing. Integration and
orchestration is the competitive play
Industries are creating new digital table stakes
Information is a core enterprise asset at the level of capital
and talent
Companies are selling "informationalized" products

Role of the CIO in the C-suite
Steward, Architect, Strategist, Catalyst
Technology orchestration for business innovation
New essential conversations with the CFO, CEO, CRO,
CSOCMO




CIO as the Postdigital Catalyst
Copyright 2013 Deloitte Development LLC. All rights reserved. 4
It is the best of times. It is the worst of times. There has likely
never been more potential for the CIO to shape business
performance and competitive stance. Pressures to deliver value
persist. IT departments that arent seen as reliable, efficient, and
effective will likely be relegated to utility status.
Bits & Bytes

Analysts predict that by 2017, the average chief
marketing officer (CMO) will spend more on IT than the
average CIO.


A recent research report identified that 39% of the
companies studied exhibited excellence in multiple
postdigital domains. On average, these companies are
26% more profitable than their industry competitors.
2
CIO as the Postdigital Catalyst
1. http://mashable.com/2012/06/20/why-enterprise-social-media-firms-are-being-gobbled-up/
2. http://sloanreview.mit.edu/feature/the-advantages-of-digital-maturity//
Copyright 2013 Deloitte Development LLC. All rights reserved. 5
When CIOs harness the convergence of the five postdigital
forces, they can change the conversation from systems
to capabilities and from technical issues to business impact.
Plan big, start small, fail fast, scale appropriately.
Technology Implications
Skills, methods and tools
Agile, responsive planning and prioritization function
Data into decisions, reports into metrics that matter, from stove-
piped processes to service-based capabilities
Enterprise architecture is a serious discipline

Where Do You Start?
Start having the essential conversations
Seed innovation have R&D explore the postdigital forces
Retool bring a different mentality about what is possible
Prototype commit to expediting concept development



The CIO as
venture
capitalist
CIO as the Postdigital Catalyst
Copyright 2013 Deloitte Development LLC. All rights reserved. 6
Mb
02
Gold
Mobile Only (and beyond)
The enterprise potential of mobile is greater than todays
smartphone and tablet apps
#mobile #mobileonly #InternetofThings #augmentedreality #mobility #m2m #mobilefirst
Copyright 2013 Deloitte Development LLC. All rights reserved. 7
Mobile should be top of mind for organizations. But dont limit your
ideas to Mobile First. Think Mobile Only, imagining an untethered,
connected enterprise.
Whats different today?
Disrupt or be disrupted
We're no longer debating the era of mobile
From mobile-maybe to mobile-first. Now mobile-only solutions
are disrupting the business landscape
Every THING can be on the net sensing, signaling and
actuating in an ambient information environment
Every PERSON can interact when-, where- and however

New physical forms meets digital mobile distribution
Smart phones and tablets expand to augmented reality for tasks,
information interaction, and environment control
Device ubiquity and convergence and new generation of devices
enable new interaction mechanisms
Point-click-type touch-swipe-talk gesture-talk-environment



Mobile Only (and beyond)
Copyright 2013 Deloitte Development LLC. All rights reserved. 8
The explosion of smartphones and tablets in the consumer world
cannot be denied. And enterprises have taken note. Mobile
initiatives have popped up in almost every corner of the business
looking to untether the workforce, engage customers more
effectively, and reshape business-as-usual.
.
Bits & Bytes

35 million Americans have paid with
Square
1

In 2012, both Apple
2
and Google Play
3

surpassed 25 billion app downloads
In the 2nd quarter for 2013, the total global
install base of smartphones and tablets is
predicted to exceed those of PCs
5
Mobile Only (and beyond)
4
1. http://gigaom.com/mobile/future-of-mobile-5-takeaways-from-mobilize-2012/
2. http://www.apple.com/pr/library/2012/03/05Apples-App-Store-Downloads-Top-25-Billion.html
3. http://techcrunch.com/2012/09/26/google-play-store-25-billion-app-downloads/
4. http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html
http://www.digitalbuzzblog.com/social-media-statistics-stats-2012-infographic/
5. Mary Meeker, KPCB, Internet Trends Report, 2012
Copyright 2013 Deloitte Development LLC. All rights reserved. 9
Technology Implications
Embracing mobile only
Security & privacy
Mobile device management
End-user experience is king
Mobile center of excellence

Where Do You Start?
No choice but to respond
Accelerate your (post)digital strategy
Look across the organization
Go for show, not tell
Eat TechCrunch for breakfast
User down, not system up
The future of
flying
Mobile Only (and beyond)
Mobiles potential goes beyond smartphones and tablets to
include voice, gesture and location-based interactions; device
convergence; digital identity in your pocket; and pervasive
mobile computing. The very definition of mobile is changing.
Copyright 2013 Deloitte Development LLC. All rights reserved. 10
So
03
Social Reengineering by Design
How work gets done is no longer constrained by 19th century
platforms
#socbiz #socialdesign #collaboration #socialmedia
Cobalt
Copyright 2013 Deloitte Development LLC. All rights reserved. 11
Social Reengineering by Design
Whats different today?
Technology, at the pace of human interaction
Technologies can now be shaped to the way people
naturally interact
Platforms can support the behavior of the leading
employees, while also removing unnatural constraints
of existing standards and processes

Yes, you can reengineer social
Take a deliberate approach to recognizing legacy
assumptions that may be constraining your business
performance
Relieve organizational and process barriers

Businesses are no longer building technologies just to enable
interaction they are now engineering social platforms for
specific context.
Copyright 2013 Deloitte Development LLC. All rights reserved. 12
Social Reengineering by Design
Bits & Bytes
GE's Colab social platform enables 300,000 globally dispersed employees to
work together. GE reports over 60,000 daily users of the platform, and over
3,000 groups with 15,000 updates every day.
Barclaycards Ring Card is helping to redesign credit cards into a community-
driven social experience.
CureTogether and PatientsLikeMe are health data-sharing platforms that
connect patients to share and learn from real-world health data.


Social platforms can relieve rather than serve traditional
organizational constraints such as deep hierarchies, command-
and control cultures, physical proximity and resource
concentration.
4
1. http://searchcio.techtarget.com/feature/GE-brings-social-collaboration-to-life-with-GE-Colab?asrc=EM_NLN_18288978&track=NL-964&ad=879251&
2. http://www.fastcompany.com/1822714/barclaycards-ring-calls-crowd-build-better
3. http://www.ihealthbeat.org/perspectives/2012/a-look-at-social-media-in-health-care-two-years-later.aspx
4. http://www.zdnet.com/blog/facebook/facebook-has-over-845-million-users/8332
Copyright 2013 Deloitte Development LLC. All rights reserved. 13

Social Reengineering can fundamentally transform how work
gets done, but it isnt just a project. Its a strategy. And its not
serendipity. Its intentional by design.
Technology Implications
Technology is the beginning of the social journey
Social computing
Social monitoring
Digital content management
Social platforms and gamification


Where Do You Start?
Critical steps to an intentional Social Business
Choose your target
Identify the relevant social networks
Pick the carrots and sticks
Think from scratch
Final stop the tools


Contextualized
connectivity, all
the time
Social Reengineering by Design
Copyright 2013 Deloitte Development LLC. All rights reserved. 14
De
04
Bismuth
Design as a Discipline
Inherent, pervasive and persistent design opens the path to
enterprise value.
#designthinking #UX #consumerization #design
Copyright 2013 Deloitte Development LLC. All rights reserved. 15
Design as a Discipline
Whats different today?
From interface to engagement
Consumerization is a powerful influence. People expect
technology at work to be at least as good as at home
Democratization is equally powerful. If IT cant provide key
services, LOB leaders may source externally (cloud)
Good UX bridges Creative and Engineering. Similarly, Design
Thinking preserves the human element in concept and delivery

Design, as a Discipline
Lessons from Industrial Design reveal that Design can be an
expression of intent. Elegance is a result of that intent
permeating departments, phases, etc.
Consider making design an inherent part of what you do as a
company: consistent and persistent discipline
You dont have to stop at designing business processes, you
can make design an element of your business processes


Driven by consumer experience, intuitiveness and simplicity are
moving from IT aspirations to enterprise mandates. Design is not
a phase; its a way of thinking. Beyond look and feel, beyond
user interfaces.
Copyright 2013 Deloitte Development LLC. All rights reserved. 16
Design as a Discipline
Bits & Bytes
The term Design Thinking was first coined by
Herbert A. Simon in 1969.
Acura, Honda and Subaru designed digital
services and applications in their 2013 vehicles to
match familiar human behaviors that minimize
the distractions for the driver.
If the majority of your target users have never used a floppy disk,
why is that the icon for saving a file? If the primary intent of the
solution is finding expertise in the company, why does it look and
work like white pages vs. yellow pages?
1. Herbert A. Simon, The Sciences of the Artificial (First Edition), (Cambridge: MIT Press, 1969).
2. http://gigaom.com/2012/09/19/the-challenge-of-the-connected-car-how-to-design-compelling-apps-without-causing-accidents/
3. Deloitte Research
3
Copyright 2013 Deloitte Development LLC. All rights reserved. 17
Design as a Discipline
Technology Implications
Design, in the layers of IT
Enterprise-wide digital backbone
Integration and orchestration
User experience (UX)
Agile
Prototyping
Where Do You Start?
Use Intent, systematically
Take a persona-based, user-focused approach
Include solution engineers in each project phase
Adopt product marketing and engineering mentalities
Choose a business sponsor with simpatico sensitivities
Whats needed is a collaborative, immersive environment to
work together. Design is not just an IT thing or a marketing
thing or a product engineering thing. Its an enterprise thing.
Device-free
Copyright 2013 Deloitte Development LLC. All rights reserved. 18
Ip
05
Copper
IPv6 (and this time we mean it)
Ubiquitous connected computing is straining the underlying
foundation of the Internet
#InternetofThings #IPv6
Copyright 2013 Deloitte Development LLC. All rights reserved. 19
IPv6 (and this time we mean it)
Whats different today?
Internet of EVERYthing
The pace and acceleration of the Internet of Things is outpacing
the current mitigation schemes
1
Were running out of unique identifiers to allow devices and
people to connect to the Internet
1
The US Government mandated agencies convert public-facing
web to IPv6 by Sep 2012
2
Many wireless and wire line communications carriers and
internet service providers are almost fully converted
3



Internet Protocol is the foundation of networking, but weve run
out of addressable space for addressable items. The more
important it is for your business to connect with the outside
world, the more important IPv6 is for your future and the more
urgent this issue is for you today.
1. http://www.nro.net/news/ipv4-free-pool-depleted
2. https://cio.gov/building-a-21st-century-government/transition-to-ipv6/
3. http://www.worldipv6launch.org/faq/
Copyright 2013 Deloitte Development LLC. All rights reserved. 20
IPv6 (and this time we mean it)
Bits & Bytes
IPv6 offers 2
128
unique addresses. Written out, thats
340,282,366,920,938,463,463,374,607,431,768,211,456
addresses
In April 2011, Nortel sold 666,624 legacy IPv4 addresses for
$7.5mm. At $11.25 per address, the possibility of an expensive
secondary market may be real.
The total number of US Federal agencies enabling IPv6 has
grown from about 11 last year to more than 250 today.
4

IP addresses have become a scarce resource, already
exhausted in some regions. Asia Pacific (APNIC) ran out in April
2011; Europe (RIPE) in September 2012 . IPv4 in North America
(ARIN) will likely be fully assigned by spring 2014.
1
1. http://www.potaroo.net/tools/ipv4/index.html
2. http://theviewfromguppylake.blogspot.com/2011/02/my-favorite-ipv6-factoids.html
3. http://www.networkworld.com/community/blog/microsoft-pays-nortel-75-million-ipv4-address
4. http://gcn.com/articles/2012/10/01/graded-on-curve-how-feds-lead-ipv6.aspx
Image Source: http://www.worldipv6launch.org/
Copyright 2013 Deloitte Development LLC. All rights reserved. 21
IPv6 (and this time we mean it)
Technology Implications
Once you go IPv6
IP addressing is hard coded in things you've never had to touch
config and control files, apps, job control language, etc.
IP Security (IPSec) is native to IPv6 protocol, but it wasnt a
default in IPv4, requiring extensive updates
Bridging will be required to co-exist with IPv4 systems

Where Do You Start?
The heart and lungs of your business
If you'll need it in 2-3 years, you should get started NOW
Establish an IPv6 Internet presence for your public-facing sites
Weave this into the product development cycle things you buy
or deploy today should be IPv6-compliant


While theres no drop dead date for IPv6, the final IPv4 address
blocks have already been allocated. Careful and proper adoption
will take time for planning, execution and verification. The time to
start is now.
Copyright 2013 Deloitte Development LLC. All rights reserved. 22
Fd
06
Silver
Finding the Face of Your Data
Fuse people and technology to discover new answers in data and
new questions too
#sensors #bigdata #datascience #visualization #analytics #datascientist #machinelearning
Copyright 2013 Deloitte Development LLC. All rights reserved. 23
Humans do some things really well, while computers are better
at other things. It is this particular combination that enables the
identification of new patterns and relationships across
dimensions of data structured and unstructured, internal or
external, big or otherwise.
Whats different today?
Unlimited data and the means to use it
Hundreds of terabytes of information are produced each day
across the four data asset categories
Taxonomy discovery tools opened new insights to both
structured and unstructured data
Ontology (pattern) discovery tools and techniques go deep in
structured, unstructured and the seam in between semi-
structured. Discovering new answers, and even new questions

Help Wanted: Data Scientists
Companies are trying to fill a new role the data scientist
Data scientists and professionals are needed both in LOB for
domain expertise and in IT for tools and dataset expertise
Recruiters are seeing increased demand for data scientists
Universities have new certification and degree programs


Finding the Face of Your Data
Copyright 2013 Deloitte Development LLC. All rights reserved. 24
Bits & Bytes
Man and machine
With thousands of data scientists working at both start-
ups and well-established companies, the Harvard
Business Review called the Data Scientist the Sexiest
Job of the 21st Century.


The flood of data from sensors, computers, research
labs, cameras, phones and the like surpassed the
capacity of storage technologies in 2007.




Giga-, tera-, peta-, exa-bytes of data are created in streams
today. Zetta-bytes and yotta-bytes are realistic when sensor,
biometric, and nano sources come online
Finding the Face of Your Data
1. http://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century
2. http://www.economist.com/node/15557421/
Copyright 2013 Deloitte Development LLC. All rights reserved. 25
Technology Implications
Think best of breed
Data governance
Storage, compute and transmit flows vs. stocks
Data disciplines and analytical methods, tools and techniques
Software and solutioning, especially visualization
Master data management

Where Do You Start?
Think big, start small and stay on target
Dont play without talent
Look to the source
Start small deliver quickly
Manage expectations
You still need data disciplines



By combining human insight and intuition with machine number-
crunching and visualization, companies can answer questions
theyve never answered before. More importantly, they can
discover important new questions they didnt know they could
ask.
An autonomic
nervous
systemfor
business
Finding the Face of Your Data
Copyright 2013 Deloitte Development LLC. All rights reserved. 26
Gm
07
Neon
Gamification Goes to Work
Driving engagement by embedding gaming in day-to-day business
processes
#gamification #gamemechanics #gamify #gamedesign
Copyright 2013 Deloitte Development LLC. All rights reserved. 27
Gamification can encourage engagement and change employee,
customer and supplier behavior, creating new ways to meet
business objectives. The goal is to recognize and encourage
behaviors that drive performance sometimes in unlikely places.
Whats different today?
Explosion of social and mobile
Social platforms provide new methods for
rewards and recognition as a motivator
Mobile technologies increase the opportunities
for interaction and engagement

Game design is moving into the enterprise
Case studies and examples of success beyond
training and innovation are growing for large
business
An integrated approach guides growth, behavior,
and engagement better than isolated instances


Gamification Goes to Work
Copyright 2013 Deloitte Development LLC. All rights reserved. 28
Bits & Bytes

Gartner predicts that by 2015, 40% of Global 1000
organizations will use gamification as the primary
mechanism to transform business operations.
As part of America COMPETES, NASA issued several
prize-based challenges. In a survey of the nearly 3,000
solvers that competed, 81% reported that they had
never before responded to a government request for
proposals, let alone worked with NASA.





Even before distinct phases of gamification began to emerge,
gaming principles in businesses had been around for
years. Work can be viewed as a sequence of challenges,
quests and levels, with a badge awarded in the form of a job
promotion to the next title or a year-end financial bonus.

Image Source: The Engagement Economy: How
Gamification is Reshaping Businesses - Deloitte Review
Issue 11
Gamification Goes to Work
1. Gartner, Inc., "Gartner's Top Predictions for IT Organizations and Users, 2013 and Beyond: Balancing Economics, Risk, Opportunity and Innovation", Daryl C. Plummer et al, October 19, 2012.
2. http://www.whitehouse.gov/sites/default/files/microsites/ostp/competes_report_on_prizes_final.pdf
Copyright 2013 Deloitte Development LLC. All rights reserved. 29
Technology Implications
Elements and tools of gamification
Game mechanics
Integration with enterprise systems
Integration with the postdigital forces analytics, social,
mobile, cloud

Where Do You Start?
Game on
Its a social business thing
Design is a team sport
Measure, tweak and iterate





Gamification has moved beyond hype and is already
demonstrating business value. Gamification in the workplace
incorporates social context and location services to motivate and
reward desired behaviors in todays mobile-social world.
Blurring the
line between
virtual reality
and reality
Gamification Goes to Work
Copyright 2013 Deloitte Development LLC. All rights reserved. 30
Ee
08
Iron
Reinventing the ERP Engine
Revving up data, hardware, deployment and business model
architectures at the core
#erp #inmemory #hana #exadata #exalogic
Copyright 2013 Deloitte Development LLC. All rights reserved. 31
ERP is no stranger to reinvention, overhauling itself time and
again to expand functionality. But the underlying engine has
remained fairly constant. Thats now changing.
Whats different today?
New technology
In-memory and column-based data architectures change both
speed and sophistication of both analytical and transactional
Engineered systems and appliance-based deployment
architectures allow order-of-magnitude increase in performance
/ capacity or offsetting decrease in costs without
overwhelming complexity in integration, configuration, and
systems administration
Raw technology improvements in chip density, bandwidth
optimization, and GPU / cell processors change the technical
architecture equation

The train is leaving the tracks
The boundaries of ERP continue to expand as new functions
and process areas are added to suites.
Constraints are diminishing and companies can become event-
responsive vs. process-constrained


Reinventing the ERP Engine
Copyright 2013 Deloitte Development LLC. All rights reserved. 32
Bits & Bytes

TechNavio's analysts forecast the Global SaaS-based
ERP Software market to grow at a CAGR of 14.24 over
the period 2011-2015.


The use of in-memory computing combined with pilots
using iPads to log data in real time to enterprise
systems could provide a huge opportunity for airlines to
increase both efficiency and safety.





The marketplace will continue to demand better, cheaper, faster.
So that means the fundamental architecture of ERP must be
scalable, flexible, affordable.
Reinventing the ERP Engine
1. http://www.heraldonline.com/2012/09/13/4259451/research-and-markets-global-saas.html
2. http://www.forbes.com/sites/sap/2012/09/26/how-in-memory-computing-could-transform-airlines-first-the-cockpit/
Copyright 2013 Deloitte Development LLC. All rights reserved. 33
Technology Implications
Consider the architecture
Virtualization
In-memory solutions
Integrated infrastructure systems
Unstructured data

Where Do You Start?
Make intelligent bets
Experiment both at the core and at the edges
Stay on top of upgrades
Ask what you can do differently to better serve the mission




If you could really get ERP cheaper and faster, what would you do
differently? Run materials requirement planning (MRP) many
times each day? Close the books in a matter of minutes? What
would it mean for business agility, capability and competitiveness?
No rails. No
roads. Flying
cars!
Reinventing the ERP Engine
Copyright 2013 Deloitte Development LLC. All rights reserved. 34
No Such Thing as Hacker-proof
Hp
09
Titanium
If you build it, they will hack it. How do you deal with that?
#hackerproof #cyberthreat #cybersecurity #itsecurity #hackers #cyber
Copyright 2013 Deloitte Development LLC. All rights reserved. 35
Youve either been breached or you soon will be. Your boss
knows it, your business knows it, your board knows it, your
customers know it, and hackers know it. Its your job to deal with
it.
Whats different today?
The professional hacker
"Smart bad guys" aren't new, but now they're more organized,
better resourced, and more targeted
Smash and grab still exists, but more and more were faced
with the long-term dwell advanced persistent threat hackers
that have been embedded in target networks for years

Moving beyond traditional controls
The traditional controls (intrusion detection systems, virus
control, etc.) are no longer enough
Neither IDS detection systems nor IPS prevention systems are.
sufficient You need to change tactics
Security should be viewed as a smoke detector and not a fire
truck, with proactive agendas based on risk and value


No Such Thing as Hacker-proof
Copyright 2013 Deloitte Development LLC. All rights reserved. 36
Bits & Bytes
Cybercrime is the greatest transfer of wealth in history
3
Symantec placed the cost of IP theft to the United States
companies in $250 billion a year, global cybercrime at
$114 billion annually ($388 billion when you factor in
downtime). McAfee estimates that $1 trillion was spent
globally under remediation.
4

An average of more than one successful cyber attack is
incurred by each company per week according to the
Ponemon Institutes Second Annual Cost of Cyber Crime
Study in 2011. That is a 44% increase over 2010. And,
thats only the breaches that have been publicly
disclosed.
5
No Such Thing as Hacker-proof
94% of cyber breaches go unreported. One reported breach
that exposed potentially millions of consumers' payment cards to
fraudsters is estimated at $84.4 million cost - $0.68/share of
diluted earnings in this case.
1. http://dailycaller.com/2012/06/18/former-fbi-cyber-expert-94-of-cyber-security-breaches-unreported
2. http://online.wsj.com/article/BT-CO-20120726-722664.html
3. U.S. Army Gen. Keith B. Alexander-Director of the National Security Agency (NSA) and chief at the Central Security Service (CSS) .
4. http://www.zdnet.com/nsa-cybercrime-is-the-greatest-transfer-of-wealth-in-history-7000000598/
5. http://www.ft.com/intl/cms/s/0/2be0078c-af46-11e1-a8a7-00144feabdc0.html#axzz2AFxK4olL
Copyright 2013 Deloitte Development LLC. All rights reserved. 37
Technology Implications
Layers of protection
Identity, Credential, and Access Management (ICAM)
Cyber intelligence
Combine intel from external monitoring with data from the internal
environment
Security information & event management (SIEM) solutions
Physical and digital asset protection

Where Do You Start?
Strategy, people, process, technology
Understand the cyber threat beacon of your organization
Know your baseline
Develop a threat defense roadmap and create a business case
Leverage current technologies and processes before building new ones



No Such Thing as Hacker-proof
Change the way you think about defending yourself. Be more
proactive about the threat and react more rapidly when
breaches do occur. Anticipate and prevent when possible, but be
ready to isolate and encapsulate intrusions to minimize impact.
Its better to lose a finger than to lose an arm.
Antibodies
Copyright 2013 Deloitte Development LLC. All rights reserved. 38
It
10
Aluminum
The Business of IT
After reengineering the rest of the business, ITs children deserve
some shoes
#bpo #agile #itsm #cmmi #itil
Copyright 2013 Deloitte Development LLC. All rights reserved. 39
Fragmented processes and systems can prevent IT from
effectively delivering on the changing demands of the business.
IT may need to transform its own management systems to keep
up.

Whats different today?
The time has come for the cobbler's children to get
shoes
IT is under increased pressure to perform to
maximize their contributions to company earnings
Tools have matured to support an integrated operating
model
The five forces of the Postdigital era are pushing IT
into a new business model where the business has
more options to access IT services from the outside
CIOs should adapt and become more competitive with
their IT services or risk irrelevancy




The Business of IT
Copyright 2013 Deloitte Development LLC. All rights reserved. 40
Bits & Bytes

The IT division of a global investment and securities organization with a
portfolio over $1B invested in transforming its IT management resulting in
improved budgeting accuracy, strategy-based decision making, and a
30% re-appropriation of project resources to support successful projects
and stop underperforming ones.

Business Technology Services (BTS) at Ontarios Workplace Safety and
Insurance Board defined a bold vision for its future: to become the best IT
organization in Canadas public sector. They have implemented a
program that combines elements of Agile, Kanban and Lean methods. In
six months, BTS has seen positive results: increased transparency and
collaboration within BTS and with the business; timely delivery of tools
and services; improved ability to redeploy resources against shifting
business priorities; and a 40% improvement in delivery lead time and
throughput.


Software providers are building, buying and repackaging their
wares as CIOs seek to automate managing the business of IT.
Its both process automation and information automation, and
sometimes the dashboards and scorecards are early phases.
The Business of IT

Copyright 2013 Deloitte Development LLC. All rights reserved. 41
Technology Implications
Integration & consistency
Data standardization
Cross-vendor application interoperability
Analytics
Mobile computing
Enterprise architecture
Service-based costing

Where Do You Start?
Slow and steady
Set a common language
Conduct a maturity assessment
Integrate, over time, the individual processes and data
Recognize tomorrows tech footprint will likely become more complex



Is this ERP for IT? Maybe someday. Today, CIOs are crafting
solutions from industry-leading products and testing business
cases at each step. And the potential benefits are worth the
investment positioning IT as the business partner in provoking
and harvesting disruption in the Postdigital era.
ERP for IT
The Business of IT
Appendix
Copyright 2013 Deloitte Development LLC. All rights reserved. 43
Disruptors Enablers
CIO as the Postdigital Catalyst
The CIO is uniquely positioned to catalyze value
from the elements of mobile, social, analytics,
cloud and cyber
Authors: Suketu Gandhi, Bill Briggs
My Take: Doug Albrecht, Port of Long Beach
Finding the Face of Your Data
Fuse people and technology to discover new
answers in data and more importantly, new
questions
Authors: David Steier, Vikram Mahidhar
My Take: Tom Soderstrom, Jet Propulsion Laboratory
Mobile Only (and beyond)
From mobile-first to mobile-only. The enterprise
potential of mobile is greater than todays
smartphone and tablet apps
Authors: Shehryar Khan, Mike Brinker
My Take: Larry Quinlan, Deloitte
Gamification Goes to Work
Driving engagement and performance by
embedding game mechanics in day-to-day
business processes
Authors: Doug Palmer, Andre Hugo
My Take: Gabe Zichermann, Gamification Co
Social Reengineering by Design
How work gets done is no longer constrained by
19th century platforms
Authors: Stephen Redwood, Chris Heuer
My Take: John Hagel, Deloitte Center for the Edge
Reinventing the ERP Engine
Revving up data, hardware, deployment and
business model architectures at the core
Authors: Bill Allison, Rick Kupcunas
My Take: Larry Frey, EnPro Industries
Design as a Discipline
Inherent, pervasive and persistent design opens
the path to enterprise value
Authors: JR Reagan, Nelson Kunkel
My Take: Emily Pilloton, Project H Design
No Such Thing as Hacker-proof
If you build it, they will hack it. How do you deal
with that?
Authors: Kelly Bissell, Kieran Norton
My Take: Gary Warzala, Visa
IPv6 (and this time we mean it)
Ubiquitous connected computing is straining the
underlying foundation of the Internet, and its not a
quick fix
Authors: Bruce Short, Edward Reddick
My Take: John Curran, ARIN
The Business of IT
After reengineering and automating the rest of
the business, ITs children deserve some shoes
Authors: Peter Vanderslice, Bryan Funkhouser
My Take: Kevin Kessinger, TD Bank Group
Tech Trends 2013 Snapshot: Elements of Postdigital
Copyright 2013 Deloitte Development LLC. All rights reserved. 44
Disruptors
CIO as the Postdigital Catalyst
Catalyzing value from the elements of mobile, social, analytics, cloud and cyber
CIOs can lead the move to tomorrow reshaping business as usual, and driving innovation. On the
one hand, they face unprecedented opportunity for innovation. On the other, the existential threat of
disruption. How should business respond? And who better to lead than the CIO? When CIOs harness
the convergence of the five postdigital forces, they can change the conversation from systems to
capabilities and from technical issues to business impact. Plan big, start small, fail fast, scale
appropriately.
Authors: Suketu Gandhi, Bill Briggs
My Take: Doug Albrecht, Port of Long Beach
Lessons: Red Robin, Northern Suffolk, Waste
Management
Mobile Only (and beyond)
The enterprise potential of mobile is greater than todays smartphone and tablet apps
Mobile should be top of mind for organizations. But dont limit your ideas to Mobile First. Think Mobile
Only, imagining an untethered, connected enterprise. The next wave of mobile may fundamentally
reshape operations, businesses and marketplaces delivering information and services to where
decisions are made and transactions occur. And the potential goes far beyond smartphones and
tablets to include voice, gesture and location-based interactions; device convergence; digital identity in
your pocket; and pervasive mobile computing. The very definition of mobile is changing.
Authors: Shehryar Khan, Mike Brinker
My Take: Larry Quinlan, Deloitte
Lessons: New Media Medicine, Kickstarter,
Square
Social Reengineering by Design
How work gets done is no longer constrained by 19th century platforms
Businesses are no longer building technologies just to enable interaction they are now engineering
social platforms for specific context platforms that can relieve rather than serve traditional
organizational constraints such as deep hierarchies, command-and-control cultures, physical proximity
and resource concentration. Social reengineering can fundamentally transform how work gets done,
but it isnt just a project. Its a strategy. And its not serendipity. Its intentional by design.
Authors: Stephen Redwood, Chris Heuer
My Take: John Hagel, Deloitte Center for the Edge
Lessons: Kaggle, Barclaycard Ring, GE Colab
Design as a Discipline
Inherent, pervasive and persistent design opens the path to enterprise value
Driven by consumer experience, intuitiveness and simplicity are moving from IT aspirations to
enterprise mandates. Design is not a phase; its a way of thinking. Beyond look and feel, beyond user
interfaces. Isolated in silos of user experience (UX), marketing and product development, individual
design functions may be reaching their limits. Whats needed is a collaborative, immersive environment
to work together. Design is not just an IT thing or a marketing thing or a product engineering thing.
Its an enterprise thing.
Authors: JR Reagan, Nelson Kunkel
My Take: Emily Pilloton, Project H Design
Lessons: Virgin Atlantic Airways, Apple, Nest

IPv6 (and this time we mean it)
Ubiquitous connected computing is straining the underlying foundation of the Internet
Internet Protocol is the foundation of networking, but weve run out of addressable space for
addressable items. The more important it is for your business to connect with the outside world, the
more important IPv6 is for your future and the more urgent this issue is for you today. IP addresses
are woven deep into applications and infrastructure, and migration can bring challenges. While theres
no drop dead date for IPv6, the final IPv4 address blocks have already been allocated. Careful and
proper adoption will take time for planning, execution and verification. The time to start is now.
Authors: Bruce Short, Edward Reddick
My Take: John Curran, ARIN
Lessons: Defense Research and Engineering
Network (DREN), Silver Spring, Google
Copyright 2013 Deloitte Development LLC. All rights reserved. 45
Enablers
Finding the Face of Your Data
Fuse people and technology to discover new answers in data and new questions, too
Humans do some things really well, while computers are better at other things. It is this particular
combination that enables the identification of new patterns and relationships across dimensions of data
structured and unstructured, internal or external, big or otherwise. By combining human insight and
intuition with machine number-crunching and visualization, companies can answer questions theyve
never answered before. More importantly, they can discover important new questions they didnt know
they could ask.
Authors: David Steier, Vikram Mahidhar
My Take: Tom Soderstrom, Jet Propulsion Lab
Lessons: City of Chicago, Recombinant,
American Express
Gamification Goes to Work
Driving engagement by embedding gaming in day-to-day business processes
Gamification can encourage engagement and change employee, customer and supplier behavior,
creating new ways to meet business objectives. The goal is to recognize and encourage behaviors that
drive performance sometimes in unlikely places. This trend has moved beyond hype and is already
demonstrating business value. Gamification in the workplace incorporates social context and location
services to motivate and reward desired behaviors in todays mobile-social world.
Authors: Doug Palmer, Andre Hugo
My Take: Gabe Zichermann, Gamification Co.
Lessons: BOX, Bluewolf, Engine Yard

Reinventing the ERP Engine
Revving up data, hardware, deployment and business model architectures at the core
If you could really get ERP cheaper and faster, what would you do differently? Run materials
requirement planning (MRP) many times each day? Close the books in a matter of minutes? Optimize
delivery routes on-the-fly in response to new orders, traffic or customer preferences? What would it
mean for business agility, capability and competitiveness? ERP is no stranger to reinvention,
overhauling itself time and again to expand functionality. But the underlying engine has remained fairly
constant. Thats now changing.
Authors: Bill Allison, Rick Kupcunas
My Take: Larry Frey, EnPro Industries
Lessons: Glass and Ceramics Manufacturer,
Garmin, Wireless Telecomm Company
No Such Thing as Hacker-proof
If you build it, they will hack it. How do you deal with that?
Youve either been breached or you soon will be. Your boss knows it, your business knows it, your
board knows it, your customers know it, and hackers know it. Its your job to deal with it. That means
changing the way you think about defending yourself. Be more proactive about the threat and react
more rapidly when breaches do occur. Detect them quickly, respond, clean up and adjust your tactics.
Be outward-facing, prepared and ready in advance. Anticipate and prevent when possible, but be ready
to isolate and encapsulate intrusions to minimize impact. Its better to lose a finger than to lose an arm.
Authors: Kelly Bissell, Kieran Norton
My Take: Gary Warzala, Visa
Lessons: Oil & Gas Industry, Business Partners,
Technology Product Companies
The Business of IT
After reengineering the rest of the business, ITs children deserve some shoes
Fragmented processes and systems can prevent IT from effectively delivering on the changing
demands of the business. IT may need to transform its own management systems to keep up. Is this
ERP for IT? Maybe someday. Today, CIOs are crafting solutions from industry-leading products and
testing business cases at each step. And the potential benefits are worth the investment not only in
driving down costs and better managing risks, but in positioning IT as the business partner in provoking
and harvesting disruption in the Postdigital era.
Authors: Peter Vanderslice, Bryan Funkhouser
My Take: Kevin Kessinger, TD Bank Group
Lessons: WSIB, Financial Services Company,
Entertainment Company
Copyright 2013 Deloitte Development LLC. All rights reserved. 46
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