CIO TRENDS 2019

EXPERIENCE FROM LEADERS WITHIN BUSINESS TECHNOLOGY

Björn Olofsson Managing Director Sofigate Sweden

•  Connect IT, business and functional leaders

•  Educate the organisation

•  Identify and optimize the right investments to maximize the value realization

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Source: Gartner (2018)

26% Growth/Market share

17% Digital business/

digital Transformation

10% Profit

improvement/Profitability

10% Innovation

Customer Focus 9%

Corporate/M&A Consolidation

7%

Technology Initiatives/

Improvements 7%

Cost Optimization

6%

New Customers/Retention

6%

Operations Improvement

6%

KEY FINDINGS CIO TOP BUSINESS PRIORITIES

CIO PRIORITIES SUPPORT AND DRIVE THE CHANGE

European Business Awards

London Stock Exchange

SOFIGATE: THE LEADING NORDIC BUSINESS TECHNOLOGY COMPANY

Sofigate is the leading Northern European business technology management company. Our passion is to help organizations to turn digital innovations into well-managed business technology.

Revenue (PF)

83 M€

Employees

520

Investing in IPRs like the technology companies

Challenging status-quo like the start-up companies

Transformation capabilities like the consulting companies

Two-digit growth like the digital companies

ONES TO

WATCH

SECURE YOUR INVESTMENTS TO IT AND DIGITALISATION

BUSINESS TECHNOLOGY STANDARD A proven open source standard and practices to manage business technology for the business.

BUSINESS TECHNOLOGY OCM Training and coaching new way of working to support organisational learning and transformation.

BUSINESS TECHNOLOGY CAPABILITIES Business Technology Academy certified people to lead change and run operations professionally.

BUSINESS TECHNOLOGY MANAGEMENT TOOLS A preconfigured and holistic management platform for service and project management.

BUSINESS TECHNOLOGY ECOSYSTEM

Hundreds of organisations sharing best practices and experiences

UNIQUE COMBINATION OF BUSINESS TECHNOLOGY ASSETS

BUSINESS TECHNOLOGY STANDARD IS 4TH EDITION OF TECH MANAGEMENT MODEL

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1st edition, 2009 ICT Standard for Management

2nd edition, 2012 ICT Standard for Management

3rd edition, 2015 IT Standard for Business

Align IT with business Run IT like a business

4th edition, 2019 Business Technology Standard

Develop business capabilities Make business with technology

WHAT DO YOU GET WITH THE BUSINESS TECHNOLOGY STANDARD?

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Business value focused

management model for IT,

digitalization and industrial internet Parallel value

streams for digital, enterprise

and domain specific

development

Pragmatic and well

illustrated plan-build-run value creation

disciplines Minimum

Viable governance to maximize speed

and optimize management focus

28 well-defined standard capability

elements in five management

areas

54 well-defined standard

roles with five professional

identities

Multi-speed development with

sequential and incremental approaches

Guidelines and templates

to run Business Technology

efficiently and with clarity

Big picture on top of expert

level practices like Scrum, SAFe,

DevOps, COBIT, ITIL, IT4IT, etc.

EXPLOIT SYNERGIES

RESPECT DIFFERENCES

WHY HAS IT BEEN SO SUCCESSFUL?

EASY TO UNDERSTAND, PRACTICAL TO USE AND FREE

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1 UNDERSTANDABLE FOR THE BUSINESS

Clarity, simplicity and consistency on top of expert level

practices like

SAFe, DevOps, COBIT, Prince, ITIL, IT4IT, SIAM,

etc.

2 FULL STACK TO SET

MINDS AND IMPLEMENT

You can walk the talk with clear illustrations and

implement with full stack of principles and processes like

Concept design, multi-speed development, minimum viable

governance, service integration, etc.

3 NO LICENSE FEE AND

INSPRIRING CASES

No license fee, freedom to modify and

large number of inspiring cases like

Global implementation with handbooks, tools, templates

and training.

BUSINESS TECHNOLOGY = BUSINESS DEVELOPMENT + DIGITALIZATION + IT

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BUSINESS TRANSFORMATION Technology is strategic cornerstone and key to higher business value

DIGITAL FRONTLINE Digitalization scales up and requires end-to-end product management

TECHNOLOGY BACKBONE Data and applications are backbone for digitalization and modern business

BUSINESS PROCESS IT

INDUSTRIAL INTERNET

WHAT IS BUSINESS TECHNOLOGY?

BT COVERS BUSINESS CRITICAL INFORMATION TECHNOLOGY

DIGITAL SERVICES

COVERS MANAGEMENT OF INFORMATION TECHNOOGY IN EVERY CORNER OF BUSINESS

TRANSFORM BUSINESS CAPABILITIES

Innovation and data leadership

MODERNISE TECHNOLOGY

BACKBONE

Cost, quality and

performance leadership

BUILD DIGITAL FRONTLINE Customer experience and loyalty leadership

PROVIDES A SYNERGISTIC WAY TO PLAN, BUILD AND RUN TECHNOLOGY

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FULL STACK FROM MODERN MINDSET TO TOOLS & TEMPLATES

MORE PRAGMATIC THAN ANY OTHER ALTERNATIVE

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MINDSET MODEL

ROLE MODEL

OPERATING MODEL

CAPABILITY MODEL

BUSINESS PROCESS IT

INDUSTRIAL INTERNET

DIGITAL SERVICES

BT OPERATING MODEL IMPLEMENTS SYNERGIES AND RESPECTS DIFFERENCES

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Demand

PLAN

Development

BUILD

Services

RUN

Strategy and Governance

Sourcing and Optimization

Service and Support

Service Operation

Service Integration Operational Readiness

Develop Solution

Innovations, Concepts and Feasibility

Portfolios and Roadmaps

INIT

IATI

VES

SOLU

TIO

NS

EXPE

RIE

NC

E

Design Solution

INCREASE DIGITALIZATION

IMPROVE EFFICIENCY

RE

DU

CE

RIS

KS

EN

SU

RE

BU

SIN

ES

S B

EN

EFITS

EXPERIENCE LEADERSHIP

QUALITY & COST LEADERSHIP

DATA LEADERSHIP

BUSINESS TECHNOLOGY DEFINES STANDARD CAPABILITY ELEMENTS

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STRATEGY AND GOVERNANCE

STRATEGIC PLANNING

ENTERPRISE

ARCHITECTURE

OBJECTIVES, SCORECARD

AND STEERING

OPERATING MODEL AND

TOOLS

COMPETENCE, ROLES AND

ORGANIZATION

RISK, QUALITY AND COMPLIANCE

CYBER SECURITY AND DATA

PROTECTION

SOURCING AND OPTIMIZATION

SERVICE PLANNING

ECOSYSTEM

DEVELOPMENT

COMMERCIAL AND PROPERTY

RIGHTS

SOURCING, PURCHASING AND

CONTRACTS

SUPPLIER RELATIONSHIP AND

PERFORMANCE MANAGEMENT

FINANCIAL PLANNING AND

CONTROL

RESOURCE AND ASSET

MANAGEMENT

DEVELOPMENT

INNOVATIONS AND CONCEPTS

DEVELOPMENT

PORTFOLIO

REQUIREMENTS AND FEASIBILITY

PRIORITIZATION, COMMITMENT AND

BACKLOG

DESIGN, DEVELOPMENT

AND VALIDATION

DEPLOYMENT AND TRAINING

BUSINESS VALUE REALIZATION

SERVICES

DATA ANALYTICS AND INTEGRATION

SERVICE

PORTFOLIO

CONTINUAL IMPROVEMENT

AND RETIREMENT

SERVICE INTEGRATION AND

QUALITY ASSURANCE

SERVICE RELEASE AND OPERATIONAL

READINESS

SERVICE OPERATION AND

AUTOMATION

SERVICE AND SUPPORT TO CONSUMERS

DEMAND

STRATEGY-to-PLANS

PLANS-to-CAPABILITY

PLANS-to-BENEFITS

OU

TCO

ME-

to-IN

SIG

HTS

BUSINESS TECHNOLOGY SOURCES OF DEMAND – BREAKING THE SILOS

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IDEATION CONCEPT

DESIGN PORTFOLIO & ROADMAP

DEMAND | PLAN

DEVELOPMENT | BUILD

SERVICES | RUN

IDEAS & CONCEPTS

Generate new ideas and challenge the status quo.

INCREMENTS & IMPROVEMENTS

Uplift to existing business solutions or capability.

SERVICE CHANGES

Continual service improvement.

CAPABILITY PLANNING

Plan major business capability development.

COMMITMENT & BACKLOG

IMPLEMEN- TATION

BENEFITS REALISATION

SERVICE RELEASE

SERVICE DELIVERY

SERVICE RETIREMENT

MINIMUM VIABLE GOVERNANCE FOR SPEED AND FOCUS IN DEVELOPMENT

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Evaluation

Does the initiative has a business sponsor?

Am I within the budgeted costs?

Do I have the people required?

Am I aligned with architecture?

Am I compliant with data security rules?

Am I working with approved vendors?

Am I using agreed processes?

! YES

Proceed to development

Portfolio Steering Group

Enterprise Architecture

Feasibility and

Prioritization

DEV

Req

uest

B

ackl

og

DEV

Initi

ativ

e

Capability Planning

Ideas & Concepts

Increments & Improvements

Service Changes

Portfolio decision

Strategic decision

" NO Go to portfolio steering

DEV flow decision

Bus

ines

s N

eeds

DEV flow Governed

Portfolio Governed

Strategy Governed

Cha

nge

/ DEV

R

eque

st

BUSINESS TECHNOLOGY DEFINES IDENTITIES AND STANDARD ROLES

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SMART GOVERNANCE

BIO

BUSINESS EXCELLENCE

ENTERPRISE DEVELOPMENT

DIGITAL DEVELOPMENT

SERVICE EXCELLENCE

BTPO BTMO AND SERVICE OWNER

ENTERPRISE ARCHITECT

BUSINESS CAPABILITY

LEAD OPS LEAD /

EXPERT

TECH / SERVICE AGENT

GOV LEAD

BTGO

SERVICE INTEGRATION

LEAD

KEY USER

SERVICE MANAGER

CIO

BUSINESS ANALYST

INNOVATION LEAD

SOURCING LEAD

PROJECT / PROGRAM MANAGER

CISO

BTOO

BTDO / DATA LEAD / EXPERT

DEV LEAD

DEV EXPERT

SOLUTION LEAD

SERVICE INTEGRATION

EXPERT

SOLUTION EXPERT

CDO

BUSINESS PROCESS IT

INDUSTRIAL INTERNET

DIGITAL SERVICES

MULTI-SPEED WITH SEQUENTIAL AND INCREMENTAL DEVELOPMENT TRACKS

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EXPERIENCE LEADERSHIP

QUALITY & COST LEADERSHIP

DATA LEADERSHIP

INSTANT E2E CONSISTENCY AND CLARITY ON TOP OF GLOBAL PRACTICES

IT OPERATING MODEL PROVIDES COMMON WAY OF WORKING

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SERVICE DESIGN SAFe GATE-BASED PROJECT MODEL / PPS IT4IT SIAM ITIL FOUNDATION

Speed, agility and clarity to work with business

Consistency and discipline to work with suppliers

EASY-TO-UNDERSTAND ILLUSTRATIONS E2E COVERAGE AND CONSISTENCY TOOL AND DEPLOYMENT READY

FOUNDATION

ON TOP ON TOP

High market pressure to do more tech

High internal pressure to be efficient

CEO PRIORITIES SHIFTING TO EMBRACE DIGITAL BUSINESS KEY FINDINGS

•  CEOs focus on deeper understanding of the digital business to drive growth

•  Corporate has risen significantly since last year

•  IT matters to CEOs

•  Workforce challenges climbs on the CEO Agenda

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Source: Gartner (2018)

CEO TOP BUSINESS PRIORITIES

40%

Growth

33%

Corporate (Structural Development)

31%

IT Related

28%

Workforce

23%

Customer

15%

Financial

15%

Product Improvements

13%

Management

10%

Sales

Increase from previous year

Decrease from previous year

THE TRANSITION CURVE WITH OCM

Source: J. Adams, et.al (1976). Transition: Understanding and Managing Personal Change

UTILIZATION How many employees who are demonstrating ‘buy-in’ and are using the new solution

SPEED OF ADOPTION How quickly people are up and running on new systems, processes and job roles

PROFICIENCY How well individuals perform compared to the expected level in the design of the change

CONCLUSION AND SATISFACTION High spirits again Change is successful Things have improved

UNINFORMED OPTIMISM Honeymoon Ideas look brilliant on paper All obstacles are identified

INFORMED PESSIMISM Problems are arising No obvious solutions Morale plummeting

HOPEFUL REALISM The turning point Sense of progress

INFORMED OPTIMISM Optimism raising Energy increasing

TIME

High

Low

MO

RA

LE /

PER

FOR

MA

NC

E

With OCM

w/o OCM

Added value

FACTORS AFFECTING SUCCESS TRANSITION WITH OCM

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Niclas Karlsson Director of Corporate IT Projects & Processes

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THE BUSINESS TECHNOLOGY COMPANY We turn digital innovations into well-managed business technology