IT Governance and Executive Strategies
ICT Industry trends from 2015 - 2020, based on data from IDC's Worldwide Black Book (3rd Platform Edition). Learn 3rd Platform Opportunities, Impact on IT Spending by Innovation Accelerators and a broader view of worldwide ICT Spending.
ICT Industry Marked by Slower Growth
In the past few years, it has become clear that the overall ICT industry as defined by the Worldwide Black Book has entered a period of long-term slower growth. This has followed a consistent pattern, in which a short-term economic slowdown leads to new ways of ‘doing more with less’ on the part of IT buyers and a focus on technologies which reduce the need to increase spending as much as in the past. After the 2001 dotcom recession, it was outsourcing…
I recently spoke with Forbes Insights about some of the findings from IDC's research into business maturity with digital transformation. The following has been edited for length and clarity.
The original version of this article was published in Forbes Insights' Digital Transformation: Using Data-Driven Insights for Exceptional Customer Engagement. Click here to access the document.
IDC has conducted a lot of research into the maturity levels of businesses around digital transformation. Where in that framework do most businesses fall?
It varies by industry, but in aggregate, when we look at total digital transformation maturity, about 67% of organizations are really exploring and…
ERP systems have a scary reputation. Over the years many enterprises have initiated massive ERP implementations and upgrades, only to find themselves behind schedule, way over-budget and only using portions of the ERP functionality. Some of these initiatives have been abandoned mid-project or even ended in litigation. As a result, CIOs must carefully evaluate requests to make major changes to functioning, albeit woefully outdated, ERP systems.
Intelligent ERP (i-ERP) applications are ERP applications or suites that use machine learning and advanced analytics with curated data sets to manage resources and business processes. They feature an assistive and conversational user experience, and automate a set of high-volume repeatable tasks and augment (via human-machine interaction) the performance of less frequent, more novel tasks. Intelligent systems and applications are capable of processing, analyzing, and acting on…
The new blog series from IDC will inform IT and business leadership teams of the latest IT capabilities required, priorities of a digital transformation strategy, skills to master, and key technology investments needed. Part 1 identifies the top goals of digital transformation for enterprise executives and their leadership teams.
Big Bold Bets
Over the past three years, organizations have toiled away on their digital strategies. They have placed big bets, evolved their cultures, and laid the foundations for new business models. We see evidence of this labor with brand name companies reinventing themselves before our eyes:
- Under Amour has invested close to $800 million over the past two years in health and fitness applications to build the world's largest digital health-and-fitness community.
- BMW, through its…
The rapid emergence and spread of digital “innovation accelerators” such as AI/cognitive computing, robotics, and IoT has many businesses scrambling —in a highly competitive and often volatile marketplace — to figure out where and how these innovative technologies fit into their business and technology strategies for digital transformation (DX). Many businesses are exploring or innovating digitally enabling products and services; others are creating new digitally enabled products, services, and customer experiences. Often, this experimentation and product development is taking place in labs or limited test bed prototypes.
To attain business benefit, however, the products of these innovation efforts must be transitioned into the existing enterprise platform. Success hinges on IT’s art of integrating — in a systematic fashion — speed, agility, and customer responsiveness with predictable, optimized IT infrastructure and operations. Integration enables a full-spectrum IT leadership framework that can manage continuous transitions from old to new, from unstable to stable, and from experimental to operational. Lack…
Thomas J. Watson once said "Would you like me to give you a formula for success? It's quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn't at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that's where you will find success."
CIOs and their management teams across Application Development and IT Operations and Infrastructure are in a very enviable position. They are increasingly able to “fail”, learn and incorporate the learnings from their mistakes, and do so with limited repercussions.
The best companies such as Amazon, Google, Target, NetFlix, and Etsy are using this principle, and reaping its benefits. In fact, teams must fail to deliver business leadership. They can shape the future of their company’s business models and products by improving IT’s ability to move faster, and by increasing the quality of their products and customer engagement models. In the past, these objectives were often left for Business Unit product and management teams to address and solve. …
Today, IT executives are under increasing pressure underwrite accelerating innovation with their organizations -- brought on by a confluence of new digital technologies and escalating market pressures. To meet the challenge, they are pushing hard to recruit and manage talent and maximize their organizational capabilities and resiliency while dealing with unprecedented technical and organizational challenges in digital transformation (DX).
In Critical External Drivers Shaping Global IT and Business Planning(IDC , July 2016), IDC predicted that global demand for digital workers will be one of the most important external drivers that shapes enterprise IT and business strategies over the next two years.
As fast-growth companies look to take their businesses to the next level of digital transformation, to both gain competitive advantage or hold their current market position, we see a shifting set of technology…
IT spending is predictable, until it’s not. Upgrade cycles and product development are usually well understood, and an increasing proportion of tech spending is driven by a smaller group of customers (service providers and consumers). As the cloud becomes more and more central to the way that en-terprises purchase and consume technology, so the overall market becomes increasingly hitched to the infrastructure investments which drive those services. Meanwhile, a large proportion of consumers continue to upgrade smartphones on a 2-3-year cycle, while PC and tablet upgrades move at a slower pace. And network investments are more stable than ever, both from enterprises and service providers, as businesses (and consumers, for that matter) become more and more reliant on the net-work for their mobile and cloud-based services.
Calm Before The Storm
All of this means that overall IT budgets have recently entered a period of stable, more predictable growth than at any time in the past. Historically, tech spending tended to follow a myriad of different simultaneous cycles, regularly disrupted by game-changing technologies and software (e.g. faster processors, smartphones, virtualization) or other factors (e.g. Y2K, offshore outsourcing). More recently, incremental change at the technology level while leveraging…
Imagine you planned a party and no one came. You rented the hall, selected the menu, hired the band, and invited all your friends to join you. Then, to your chagrin, no one could attend because everyone you know also planned their own event on the same evening. This is the social equivalent of the dilemma facing organizations today who built next-generation strategies to digitally transform their business models, internal operations and/or corporate direction and can't find the technologists to build it.
The popularity of today's leading technologies and organizational trends are not only causing talent competitiveness within industries, it has also escalated to create cross-industry competition. In simpler, less competitive days, as a general rule, companies preferred to hire technical people from within their industry. This had the dual benefit that the newly hired techies would have a business understanding of the new employer's business model as well as potentially weaken the completion…
Today, solving internal conflicts and improving collaboration between development and operations teams have become an executive priority for driving business results, not just cost reduction. Cloud-based IT capabilities are delivered from multiple delivery models, increasingly targeting multi-modal platforms (from legacy to mobile and IoT). Business and IT demands now dictate the need for agility, reliability, performance, and security for high-performance IT organizations.
The business objectives mentioned above answer the "what" component in achieving sustainable competitive advantage. These should be the aim of every organization. So, how to deliver all of these objectives?
The answer is DevOps.
DevOps-driven organizations are able to increase their competitive position AND revenue and profits by keeping a critical and pragmatic focus on five key elements of the organization, which should be the primary areas for business change:
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