Leveraging Cloud and New Partnering Strategies to Deliver ... · analytics Real-time sensor data Cyber security Business Optimization and ... - 40% C-level executives, rest: senior

© 2013 IBM Corporation

Leveraging Cloud and New Partnering Strategies to Deliver Business Value CIO Vision Event

Jean Claude Dispensa IBM Distinguished Engineer


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



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



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%



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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



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



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


Are more likely to seek partners who: Drive and capitalize on technology innovations 1.4x Have strong business analytics capabilities 1.3x


Have robust cloud capabilities 1.4x



8 8

They EXECUTE differently - outcome-based metrics, integrated governance, transformed scope

Enterprise Innovators


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




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



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



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



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



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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



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Learn more at ibm.com/sourcing

Documents

Leveraging Cloud and New Partnering Strategies to Deliver ... · analytics Real-time sensor data Cyber security Business Optimization and ... - 40% C-level executives, rest: senior