Mike Cisek, Research Director Vivek Swaminathan, Research ... · organizational growth and profitability. Build Transformational Capabilities Invest in infrastructure, XaaS, SDx Solutions

Leadership Vision for 2020: Midsize Enterprise CIO1 May 2018

Mike Cisek, Research DirectorVivek Swaminathan, Research Director

There is nothing so useless as doing efficiently that which should not be done at all.

Peter Drucker

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. ITLEX180978

Implementing Digital Platforms — A Team EffortCIO

Business

Intelligence

EcosystemsCustomers

IT SystemsThings

Applications

Data and Analytics

Program and Portfolio Management

Sourcing and Vendor Management

Enterprise Architecture

and Technology Innovation

Infrastructure and Operations

Security and Risk


Implementing Digital Platforms — A MSE Team PerspectiveCIO Business

Intelligence

EcosystemsCustomers

IT SystemsThings

Applications

Data and Analytics

Program and Portfolio Management

Sourcing and Vendor Management


and Technology Innovation

Infrastructure and Operations

Security and Risk


■ Culture (48%) is the biggest barrier to digital transformation at scale.

■ Seventy-one percent believe digital business has created a greater capacity for change and a more open mindset in IT.

Digital

MSE CIOs Must Drive Business and Technology Innovation

■ Top business objectives: –Growth (28%) –Digital transformation (14%) –Innovation (10%)

■ Sixty percent of MSE CIOs tasked with building business strategy and planning, 69% with optimizing enterprise operations

Business


Digital

Lead Innovation (37%) and Digital transformation

(CDO) (36%)

Business

Forty-one percent report their success criteria is tied to business performance

MSE CIOs Must Drive Business and Technology Innovation

MSE CIOs


Not Every MSE Has the Necessary Digital AcumenBusiness Leaders Who Understand How Digitization Applies to Their Company

n = 286 - 592.Source: CEB Digital Enterprise 2020 Survey.

Senior Managers and Executive Leaders

Mid-Level Managers

Frontline Managers

0%

50%

100%

44%34% 31%


Techies

High

LowLow High

Stakeholders’ Digital Ability

Stakeholders’ Digital Ambitions

Dreamers

Digital Business

Innovators

Neophytes

Source: CEB analysis.

Not Every MSE Has the Necessary Digital AcumenAmbition Versus Ability


Key Issues

What Major Trends Are Affecting

MSE CIOs?

What Competencies Are Needed in

the Digital Age?

Developing a Digital Leadership

Vision With a Midsize Enterprise


Business Trends MSE CIOs Must Respond To

28%Growth/

Market Share

14%Digital Business/

Digital Transformation

10% Innovation, R&D, New Products and Services

8% Technology

Improvements

8%Workforce Focus

8% Customer Focus

8% Corporate M&A, New

Business Consolidation

8% Security, Safety

and Risk

Thinking About Your Organization as a Whole, What Would You Say Are the Its Top Business Priorities for the Next Two Years ?


Business Trends MSE CIOs Must Respond To

28%Growth/

Market Share

14%Digital Business/

Digital Transformation

10% Innovation, R&D, New Products and Services

8% Technology

Improvements

8%Workforce Focus

8% Customer Focus

8% Corporate M&A, New

Business Consolidation

8% Security, Safety

and Risk

Thinking About Your Organization as a Whole, What Would You Say Are the Its Top Business Priorities for the Next Two Years ?


The Technologies Midsize Enterprises Must Leverage

Cloud-Inspired Hybrid Infrastructure

Selective Utilization of “Anything as a Service (XaaS)”

Enhanced Security Detection and Response Capabilities

Platforms That Optimize Operations and Customer Experience

Exploiting Data and Analytics to Drive Business Transformation


Key Issues


MSE CIOs?


the Digital Age?




7

PMO

Adaptive Business Engagement 2

Agile, DevOps, Continuous Delivery

3

Cloud-Based Scalable Infrastructure6

14

Customer-Centric Design

Applications Building Blocks5


Information Risk

Data Strategy Over Ownership

8

Adaptive Skills and Mindset

9

Strategy Over Governance, Management Over Operations

Products Over Projects

Operations and Support

Infrastructure Engineering

Mastery of the Digital Operating Model

Source: CEB analysis.

Applications Development


Execute Against the Core Competencies That Affect ChangeMSEs have an entirely different economic, cultural and managerial environment

It is a mistake to contrast the decision making behavior of MSE with that of large companies

Economic Discipline

Dyadic Communication

Right-Sized Approaches


Key Issues


MSE CIOs?


the Digital Age?




Becoming a Digital Evangelist at Service King

Solution Highlights:

1. Build a Product Line Operating Model

2. Embed Product Design Principles in Delivery Lifecycle

3. Instill a Climate of Proactive Innovation

Derek KramerChief Information

Officer, Service King


The PayoffNumber of New Product Patents

Source: Service King; CEB analysis.

02017

7

0

4

8

Total valuation potential sums up to ~$30 M.

2015

High Revenue Growth Rate

Source: Service King; CEB analysis.

0

500 M

1 B

2015

~$800 M

2017

$1 B+


“We’ve created a range of brand new products you wouldn’t associate with a chain of collision repair centers. IT evolved from being a cost center supporting business operations to a P&L that generates revenue for Service King. And simultaneously, we’re changing what customers and stakeholders typically expect from the automotive service industry.”

Derek KramerCIO, Service King

The Payoff


Reinvent Applications for the Digital World

Deliver Dynamic, “Improvised” Experiences

People

BusinessThings

Digital

Phys

ical

Processing and Delivery

Processing and Initiation

Processing and Initiation

Initiation Supplier

ProcessingProcessing

Processing

Transport

Transport

Processing

Fulfillment

FulfillmentFulfillment

New Request

Fulfillment


Reimagine the Data Center

IntelligenceOperations (AIOps),Infrastructure, Application, Digital (Contextual) Experience Platforms

Adaptive Security ArchitecturesPrevent, Detect, Respond, Predict IAM, CASB, Cloud Data & Security

XaaS/Unified ManagementInfrastructure, Platform, Software

Cloud Inspired Hybrid InfrastructureHyperconverged, Software Defined SDx, ROBO, Edge (IoT)


15% 30%

BI Analytics

Cloud Services/Solutions

ERP

Mobility/Mobile Applications

Digitalization/Digital Marketing

Infrastructure Data Center

CRM

Network, Voice & Data Communications

0%

21%

10%

7%

5%

4%

10%

6%

7%

Link Investment Decisions to Business ValueWhich Technology Area Do You Think Is Most Important to Help Your Business Differentiate and Win/Is Most Crucial to Achieving Your Organization Mission?


Exploit Data and Analytics to Drive Transformation

■ IT Financial transparency ■ Profitability — Margins ■ Cost Optimization

■ Optimizing Operations ■ Workforce Focus ■ Customer Focus

■ Managing Resource Utilization ■ Operational Excellence ■ Intelligent Notification

Economic

Operations (Business)

IT Operations

Innovation (Vertical)

■ Maximize Emerging Technology Investment ■ IoT — Manufacturing, Supply Chain etc. ■ AI/ML — Customer Satisfaction, Fraud Detection


Recommendations Enable Digital BusinessRelationships are the catalyst for the success or failure of digital business transformation.

Develop Economic DisciplineIT budget sustainability, Self-Funding initiatives, Transparency tied to organizational growth and profitability.

Build Transformational Capabilities Invest in infrastructure, XaaS, SDx Solutions with native integration, automation and intelligence capabilities.

1

2

3

Strive to Achieve Singularity Singularity of process, tools, environments and vendors will maximize efficiency in within MSEs.

Continuous Improvement (Kaizen) Investments that yield TCO and IT operational efficiency and/or deliver differentiation and a tangible ROI fund digital transformation by freeing up resources and reducing technical dept.

4

5


Documents

Mike Cisek, Research Director Vivek Swaminathan, Research ... · organizational growth and profitability. Build Transformational Capabilities Invest in infrastructure, XaaS, SDx Solutions