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© 2013 IBM Corporation
Leveraging Cloud and New Partnering Strategies to Deliver Business Value CIO Vision Event
Jean Claude Dispensa IBM Distinguished Engineer
© 2013 IBM Corporation
Business and IT Services Sourcing
2
What is driving IT demand in today’s organizations?
Explosion of mobile devices
Infrastructure optimization, i.e. cloud computing
Growth of social media
Advanced predictive analytics
Real-time sensor data
Cyber security
Business Optimization
and Big Data
© 2013 IBM Corporation
Business and IT Services Sourcing
3
The intersection of business and IT requires balance… …as well as new partnerships and systems.
Innovate how we engage, make decisions and work
Optimize our IT infrastructure, data and processes
Systems of Engagement Knowledge Sharing Engagement Models Anywhere, Anytime
Systems of Record Secure Data
Dynamic Infrastructure On-demand Self-service Drives Investment
Drives Need
© 2013 IBM Corporation
Business and IT Services Sourcing
4
We surveyed clients to understand sourcing motivations
Survey respondent by Read the report: http://ibm.com/sourcing
The study represents 1351 sourcing decision makers - spanning 12 countries and 18 industries - 40% C-level executives, rest: senior executives and influencers - 35% 10,000+ employees; 65% 1000-10,000 - 35% business leaders; 65% IT leaders
1 Research was conducted by IBM Center for Applied Insights 1Q13
Industry
Manufacturing 204 Wholesale 162 Telecom and Media 126 Banking/Financial Services 122 Health 112 Retail 78 Education 72 Travel and Transportation 63 Automotive 59 Insurance 50 Other 303
Market
Growth
30% Mature
70%
© 2013 IBM Corporation
Business and IT Services Sourcing
5
Increasingly, organizations are looking to acquire the critical skills and capabilities they need while optimizing to fund innovation.
20% 19%
34% 27%
Respondent distribution by partnering strategy
EXTENT OF OUTSOURCING Broad Narrow
SOU
RC
ING
MO
TIVA
TIO
N
Effi
cien
cy a
nd
effe
ctiv
enes
s In
nova
tion
and
grow
th
Focused Innovators
Enterprise Innovators
Focused Optimizers
Enterprise Optimizers
“Lower operating costs” is a top business priority across all
market segments. However, how these savings are used
differs substantially amongst the segments.
2.5% 10.9%
1.6% 2.9%
3.9% 9.4%
1.9% 4.5%
Revenue growth by partnering strategy
3 Year CAGR %: FY 2011
Gross profit growth by partnering strategy
3 Year CAGR %: FY 2011 Enterprise Innovators: outsource to drive innovation in many areas of business and IT Enterprise Optimizers: aim is primarily to drive greater efficiency and effectiveness
Focused Innovators: outsource to innovate particular areas of their business
Focused Optimizers: improve efficiency and effectiveness in targeted areas
© 2013 IBM Corporation
Business and IT Services Sourcing
6 6
They are AGILE - expanding into new markets and enabling new business models
Those indicating they prioritize integrating supply chains to expand into new regions
2.2x Enterprise Innovators
More likely than other partnering strategies
Are more likely to seek partners who have: Extensive global infrastructure 1.7x Business strategy and transformation experience 1.2x
The findings give us insight into why Enterprise Innovators outperform.
Leader in driving Industry Standards 1.5x
© 2013 IBM Corporation
Business and IT Services Sourcing
7 7
They are RESPONSIVE - creating a culture of innovation and anticipating market shifts
Those indicating they prioritize anticipating and responding to technology and market shifts
1.8x Enterprise Innovators
More likely than other partnering strategies
Are more likely to seek partners who: Drive and capitalize on technology innovations 1.4x Have strong business analytics capabilities 1.3x
The findings give us insight into why Enterprise Innovators outperform.
Have robust cloud capabilities 1.4x
© 2013 IBM Corporation
Business and IT Services Sourcing
8 8
They EXECUTE differently - outcome-based metrics, integrated governance, transformed scope
Enterprise Innovators
More likely than other partnering strategies
1.7x Enable partner to influence strategy
2.1x Vertically integrate contracts
1.4x Implement enterprise wide governance
1.5x Tie metrics to business outcomes
The findings give us insight into why Enterprise Innovators outperform.
© 2013 IBM Corporation
Business and IT Services Sourcing
9
New Business Models Drive the Need for Cloud and a Shift to More Agile IT Environments
From Monolithic Applications to Dynamic Services
From Static Infrastructure to Cloud Services
From Programmed Systems to Learning Systems
From Structured Data At Rest to Unstructured Data in Motion
From Stable Well-defined Workloads to Unpredictable Workloads
From Standard Devices to a Variety of Devices
From Proprietary Standards to Open Innovation
From Corporate-owned IT to Infrastructure As-a-Service
© 2013 IBM Corporation
Business and IT Services Sourcing
10
IBM has an unique and comprehensive set of cloud capabilities
Think It. Strategize how to use cloud to drive
savings and revenue growth.
Build It. Build and run your private or hybrid
cloud.
Tap into It. Utilize cloud services delivered from IBM’s
SmartCloud
IBM Cloud
IBM’s end-to-end cloud portfolio
Restless reinvention Analytics everywhere
A dynamic hybrid cloud strategy
© 2013 IBM Corporation
Business and IT Services Sourcing
11
IBM embraces & invests in open source to foster innovation
Cloud Computing
Application Servers
Service Orientation
Service Oriented Architecture
Systems of Interaction
Social Business
Open Cloud Architecture
Business Process as a Service
Software as a Service
Platform as a Service
Infrastructure as a Service
© 2013 IBM Corporation
Business and IT Services Sourcing
12
Traditional IT
Infrastructure Applications
Managed Services
Cloud
Integrated service delivery across dynamic hybrid deployment models
Business Processes
IBM delivers a full spectrum of business and IT services in a model that is premised on business value and enabled by cloud...
Think it. Build it. Tap into it.
Define Strategy and Objectives
Identify Key Value Drivers
and Scope
Establish Governance
Model
Select Metrics Tied to
Outcomes
© 2013 IBM Corporation
Business and IT Services Sourcing
13
Leveraging Cloud and New Partnering Strategies to Deliver Business Value
“This agreement allows us to offer better services to our clients and obtain competitive advantages in a sector in which innovation and new technologies are key to realizing growth.” Juan Maria Nin, General Manager, La Caixa
La Caixa Bank Built culture of innovation while saving an expected €400M over 10 years
© 2013 IBM Corporation
Business and IT Services Sourcing
14 14
Learn more at ibm.com/sourcing
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