IT Governance and Executive Strategies
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:
True story: A VSM executive recently renewed an agreement for a legacy on-premise human capital management (HCM) solution. In return for a five-year commitment, the vendor reduced the maintenance fee by 25% annually. Based on IDC's benchmark data, the price was, indeed, best in class. But several months later, another executive in the company’s Digital Transformation Office requested help on a transformation strategy, seeking to replace the company’s outdated on-premise HCM system with a SaaS-based solution. Should the contract renewal be classified as savings or a costly mistake?
By 2019, nearly 75% of IT spend will be for 3rd Platform technologies (IDC FutureScape: Worldwide IT Industry 2017 Predictions, US41883016, Nov 2016). However, a surprising number of enterprises lack the vision for VSM necessary to support sourcing these technologies. To make matters worse, over 40% struggle with inadequate staffing and bureaucratic processes preventing VSM operations from keeping up with the business units they support (IDC MaturityScape Benchmark: Vendor Sourcing and…
Intelligent ERP applications are being evaluated and implemented by enterprises across all industries. Nevertheless, legacy ERP applications continue to consume a significant quantity of resources and money just to keep operations running.
According to Aaron Polikaitis, VP for IDC's IT Executive Programs Vendor Sourcing and Management practice, "Intelligent ERP will eventually replace legacy ERP solutions. Enterprises with coordinated transitions strategies will be in a position to make the shift in a fiscally responsible manner. Those that do not, will end up spending far more and managing a long business time to value.”
ERP systems have a scary reputation. Over the years many enterprises have initiated massive ERP implementations and upgrades, only to find themselves behind schedule and over-budget. Some 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.
Despite the accounts of failed implementations, the industry is growing at a record pace. Furthermore, legacy ERP…
The way to measure the effectiveness of IT operations has changed. To help IT and business leaders to get the most out of their IT operations, IDC addresses their essential about IT measurement in the age of digital transformation.
What are thenew rules for IT measurementthat have been set in the new era of digital transformation?
As IT brokers, integrates and manages technology innovators such as robotics, cognitive computing, 3D printing, NextGen security and Internet-of-Things, measuring effectiveness is a new game with new guidelines. Measure these innovative activities improperly and expected deliverables are significantly jeopardized.
How are IT metrics used within thriving IT organizations to weigh the…
There’s one thing upon which IT executives and LOB leaders agree: the CIO plays a critical role in innovation. In recent IDC surveys of IT executives and LOB executives, 45% of LOB executives designated the CIO as an innovation leader, while 41% of IT executives see the CIO as an innovation leader.
How do you as an executive approach innovation? Your company probably innovates in a number of different ways – and your approaches are most likely linked to the results you expect – your business and IT goals. Which is another way of saying that innovation is not a one-size-fits-all term. There are different kinds depending on factors like the nature of your business, competitive pressures to change, how your ecosystem is using digital technologies, and whether your leadership is visionary or…
The Search for Agile Without Sacrifice
In the Part 3 of this blog, we focused on the essential area of effectively allocating different skillsets of the IT organization to further your innovation initiatives. Of course, another key focus is how the IT organization operates.
As more organizations work through digital transformation, they are finding that many existing development practices and processes do not necessarily work in this new phase of computing. This is leading many executives to embrace the idea of Agile development…
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