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Dynamic IT for the Dynamic EnterpriseCreating the Next Generation of Business-Responsive IT
Frank GensSVP Research
IDC
Business Executives See IT as a Key to SuccessBusiness Executives See IT as a Key to SuccessQ: Importance of IT to Strategy Execution?
Q: Should Use IT More/Less Aggressively?
Source: IDC’s LOB Executive Survey, January 2004
Business Priorities Are Driving IT InvestmentBusiness Priorities Are Driving IT Investment
Retail/Distribution
Manu-facturing
Healthcare
FinancialIn
nova
tion/
PLMSou
rcin
gPro
duct
ion
Suppl
y C
hain
Mar
ketin
gSal
es Store
/Bra
nch
Ope
ratio
nsC
usto
mer
Car
ePer
form
ance
Man
agem
ent
Hum
an C
apita
l
Government
Derived from IDC’s European VM Survey, January 2004 and IDC’s U.S. LOB Executive Survey, January 2004.Q: What are your company’s biggest focus areas for IT investment in 2004?
Low IT priority
Not applicable
Medium IT priority
Hot IT priority
Email Retail Manf. ERP CRM
Servers
Storage
Database
Trans. proc.
Web host.
File/print
Infrastructure/Mgmt./Security
Infrastructure/Mgmt./Security
Infrastructure/Mgmt./Security
Payroll
BUT IT is Messy, Expensive and Slow to ChangeBUT IT is Messy, Expensive and Slow to Change
Business Processes
The Negative Impact of IT Complexity & Rigidity The Negative Impact of IT Complexity & Rigidity
Average % of IT Budget Spent on Innovation Versus Ongoing Operations and Infrastructure Management
US Europe
Source: IDC’s Enterprise Technology Trends IT Decision Monitor, 2004
Innovation21%
Ongoing ITOperations andInfrastructure
79%
Innovation38%
Ongoing ITOperations andInfrastructure
62%
Dynamic Enterprises Needs Dynamic ITDynamic Enterprises Needs Dynamic IT
Dynamic IT Capability
Human CapitalCustomer Care
Store/Branch OpsPerformance Management
Sales & Marketing
Supply Chain
Innovation/PLM
Production
Describing a “vision” for the next generation of IT, and businesses’ use of IT
IT that better supports business’ need for speed, flexibility, efficiency
Everyone’s trying to explain “what’s next?”Everyone’s trying to explain “what’s next?”
IT Operations Automation & Management
Operational Efficiency
Business Strategy Automation & Execution
Responsiveness to Market
Two Focus Areas for Dynamic IT TransformationTwo Focus Areas for Dynamic IT Transformation
End-to-End, Dynamic Management
Business Monitoring & Analytics
Business Process & Application Automation
Information and Data Services
Integration, Event & Deployment Services
Collaboration & Communication Services
Access & Interface Services
Service Level Management & Automation
Metering, Measurement & Charge-back
Security
Infrastructure Virtualization
Infrastructure Provisioning
Platform Management & Monitoring
Building Blocks for Dynamic Business ExecutionBuilding Blocks for Dynamic Business Execution
Business Monitoring & Analytics
Business Process & Application Automation
Information and Data Services
Integration, Event & Deployment Services
Collaboration & Communication Services
Access & Interface Services
Measure business performance to trigger market-responsive
change
Provide access to all relevant information as needed
Support human interaction in the business process
How Dynamic IT Can Improve Business’ Market Responsiveness
Quickly configure (and re-configure) applications and
business rules to support the business
Support dynamic, high-performance integration of
business-critical IT resources
Provide navigation and interactive
experience inside and outside the enterprise
Business Strategy Automation & Execution
IT Operations Automation & Management
En
d-to-End
Design
& M
anagement
Com
ponents, Standards-B
ased
Flexib
le Op
erating Cost M
odel
Flexib
le Sourcing M
odel
Service-Orien
ted Architectu
re
Virtu
alized Resou
rces Mod
el
End-to-End, Dynamic Management
What’s Different About Dynamic IT?What’s Different About Dynamic IT?
6 “Dynamic” Principles
What’s Different About Dynamic IT?What’s Different About Dynamic IT?
2 businessprinciples
Flexible Sourcing Model
Flexible Operating-Cost Model
Service-Oriented Architecture
Simplifiedresourcesharing
Components, Standards-Based
Virtualized Resource Model
Low costs,Faster
integration
Efficientutilization,integration
End-to-End Design & Management
“Business-aware” view
4 technologyprinciples
Business Strategy Automation & Execution
Responsiveness to Market
Vendors Innovating Around Dynamic Business ExecutionVendors Innovating Around Dynamic Business Execution
Service Level Management & Automation
Metering, Measurement & Charge-back
Security
Infrastructure Virtualization
Infrastructure Provisioning
Resource Management & Monitoring
Platform Management & Monitoring
Building Blocks for Dynamic IT OperationsBuilding Blocks for Dynamic IT Operations
Trigger deployment and redeployment of IT resources in
response to business need
Measure and charge for IT resources by actual business
usage
How Dynamic IT Can Improve IT Operational Performance & Efficiency
Protect the entire IT environment -applications,
application components, data, and IT infrastructure
Enable rapid and consistent deployment of IT infrastructure
Enable system monitoring, inventory, alerting, group management, and capacity
management
Creating efficient, virtual pools of server, storage, and network
services
What’s Different About Dynamic IT?What’s Different About Dynamic IT?
2 businessprinciples
Flexible Sourcing Model
Flexible Operating-Cost Model
Service-Oriented Architecture
Simplifiedresourcesharing
Components, Standards-Based
Virtualized Resource Model
Low costs,Faster
integration
Efficientutilization,integration
End-to-End Design & Management
“Business-aware” view
4 technologyprinciples
IT Operations Automation & Management
Vendors Innovating Around Dynamic IT OperationsVendors Innovating Around Dynamic IT Operations
Operational Efficiency
(Sun)
(Veritas)
Novadigm (HP)
(IBM)
(Sun) (EMC)
Business Monitoring & Analytics
Business Process & Application Automation
Information and Data Services
Integration, Event & Deployment Services
Collaboration & Communication Services
Access & Interface Services
Service Level Management & Automation
Metering, Measurement & Charge-back
Security
Infrastructure Virtualization
Infrastructure Provisioning
Platform Management & Monitoring
The Shift to Dynamic IT Is Driving Product Portfolio, M&A StrategiesThe Shift to Dynamic IT Is Driving Product Portfolio, M&A Strategies
“The Network”
Business Monitoring & Analytics
Business Process & Application Automation
Information and Data Services
Integration, Event & Deployment Services
Collaboration & Communication Services
Access & Interface Services
Service Level Management & Automation
Metering, Measurement & Charge-back
Security
Infrastructure Virtualization
Infrastructure Provisioning
Resource Management & Monitoring
Platform Management & Monitoring
CustomerM
anagement
IT O
pera
tions
/Pro
cess
es
IT M
anag
emen
t/Le
ader
ship
IT
Governance
Dynamic ITRequires ChangeBeyond Core IT TechnicalCapabilities
Dynamic ITRequires ChangeBeyond Core IT TechnicalCapabilities
Physical Infrastructure
Sourcing(in-house vs. service providers)
Goal: Untangle the IT Mess, Increase IT’s Business-Responsiveness & Efficiency Goal: Untangle the IT Mess, Increase IT’s Business-Responsiveness & Efficiency
Retail Manf. ERP CRM
Servers
Storage
Business Processes
Database
Trans. proc.
Web host.
File/print
Infrastructure/Mgmt./Security
Infrastructure/Mgmt./Security
Infrastructure/Mgmt./Security
Payroll
Inte
gra
t ion
, Ev
en
t & D
ep
loy
me
nt
Federated Data & Information
Co
llab
ora
tion
/Me
ss
ag
ing
VirtualizedStorage
VirtualizedProcessing
Virtualized Infrastructure
Se
rvic
e L
ev
el &
Re
so
urc
e M
an
ag
em
en
t
Business Processes
Business Monitoring, Analysis & Decision-Making
Se
cu
rity M
an
ag
em
en
t
Interface & Access
In-house,3rd party compon
-ents
PackagedApps -ERP CRMHR
Custom Apps,
Business Rules
Business Rules & Functionality
Where to Start? – Business Execs’ Priorities for Dynamic ITWhere to Start? – Business Execs’ Priorities for Dynamic IT
Source: IDC’s LOB ExecutiveSurvey, June 2004
Q: Most important IT improvements to better support business?
¥£€$
Dynamic IT Is Already In MotionDynamic IT Is Already In Motion
The Shift to Dynamic IT Is Driving Major Change in Today’s MarketThe Shift to Dynamic IT Is Driving Major Change in Today’s Market
Who the key IT players are… New wave of IT supplier startups, acquisitions & mergers LOB executives joining the CIO on the customer side
What major players’ offerings and strategies are… Re-architecting products to be more “dynamic” Expanding offerings into related dynamic IT segments Driving new business models Driving reassessment of channels, alliances, “ecosystems”
How Enterprises are evolving their IT capabilities… Flexibility, reuse of SOA as a driving architectural principle End-to-end linkage to business process, performance Extensive use of automation to improve operating efficiency Variable-cost agreements with suppliers
For further information…For further information…
Complimentary Report available on idc.com*
* http://www.idc.com/ Search for Document #31371; registration (free) required
