Understand the What, Why & How of Digital Transformation Featuring 451 Research
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The document discusses digital transformation, highlighting its importance for organizations to innovate and adapt to changing business environments. It presents insights from 451 Research on the status of companies' digital transformation strategies, with a significant portion reporting formal strategies in place. Key areas of focus include intelligence, agility, and customer-centricity as drivers for successful transformation, as well as the role of new technologies and collaborative practices in enhancing organizational capabilities.
Understand the What, Why & How of Digital Transformation Featuring 451 Research
- 1. transparency Understand the What, Why & How of Digital Transformation Featuring 451 Research Nick Patience, Founder & Research Vice President, 451 Research Michael Cote, Director of Technical Marketing, Pivotal
- 3. 3 Founded in 2000, The 451 Group is a Global IT Research & Advisory 451 Research - Uptime Institute 350+ employees, including 120+ analysts, doing business in 70+ countries 2,000+ clients: Technology & Service providers, IT decision makers, corporate advisory, finance and professional services 50,000+ IT professionals, business users and consumers in our research community including 30,000+ Global Digital Infrastructure Alliance Over 52 million data points published each quarter and 4,500+ reports published each year covering 3,000+ technology & service providers Owner of the Uptime Institute Tier Standard for Datacenter Certification Headquartered in New York, offices in London, Boston, San Francisco, Washington DC, Mexico, Costa Rica, Brazil, Spain, UAE, Russia, Taiwan, Singapore and Malaysia Research & Data Advisory Events Standards & Certifications
- 4. Agenda • Business imperatives for digital transformation • Information transformation • Process transformation • Platform transformation • Examples
- 5. 451 Definition The result of IT innovation that is aligned with and driven by a well-planned business strategy with the goal of transforming how organizations: • serve customers, employees and partners • support continuous improvement in business operations • disrupt existing businesses and markets • invent new businesses and business models 5
- 6. 17% 20% 33% 29% 1% We currently have no digital transformation strategy We are considering it, but have no formal plans We are in the planning stage - researching to form our digital transformation strategy We have a formal strategy and are actively digitizing our business processes and technologies Don't Know Which of the following best describes your organization’s status with regards to a Digital Transformation effort? Nearly 1/3 have a formal digital transformation strategy Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
- 7. 27 % 39% Mobile Top Drivers Location-Based Technologies 34 % 44% Innovation Financial Services44% 60% 29 % 41% 39% No Strategy Formal Strategy We have a formal strategy and are actively digitizing our business processes and technologies We currently have no digital transformation strategy Healthcare 63% Over 500 EmployeesUnder 500 Employees Top Industry Company Size Managing Data GrowthManaging Risk of Social Networks Top Pain Point Top Drivers Innovation Top Transformational Technology Digital Transformation Comparisons
- 8. Business imperatives for digital transformation 8 Intelligence Agility Customer- centricity
- 9. Intelligence – because those that own the data will win “We don’t have better algorithms. We just have more data.” - Peter Norvig, Director of Research at Google 9
- 10. 10 Agility – because digital disruption is coming
- 14. 14
- 15. New channels of engagement, new sources of information 15 Source: KPCB Internet Trends 2016
- 16. 16 New Channels of Engagement Source: 451 Research US consumer data 2010-2015
- 18. 18 The IoT landscape Source: 451 Research IoT Landscape, April 2016
- 19. Machine Learning 19 • Going digital means vast increase in data • Impossible to handle manually • Algorithms improve with more data – virtuous circle • Machine learning is force multiplier
- 20. Putting information to work with analytics 20
- 22. Don’t pave the cow paths 22 London Map data: Google, Landsat
- 27. 3 pillars of DevOps 27 Culture Automation Measurement
- 30. IT as a Differentiator Hybrid Cloud Scale-out/Distributed Apps Mobile Endpoints + ‘Things’ Petabytes and Exabytes API-based management Old Style of IT IT as a Cost Center On-Premises IT Scale-up client-server Apps PC Endpoints Terabytes and Petabytes Proprietary protocols New Style of IT Converged InfrastructureServer, Network, Storage Silos IT priorities are changing
- 31. IT Departments Shift Toward Agility & Risk vs Penny- Pinching 31 Source: 451/Microsoft Cloud and Hosting Study 2016. n=1734, 11 countries
- 32. Everyone’s becoming a software company… 32 But we don’t all realize it yet. 0 5 10 15 20 25 30 35 40 45 50 Early adopter Pragmatic Conservative Skeptical Percentage Technology adoption stance 4Q14 (n=706) 1Q15 (n=1050) 2Q15 (n=975) 3Q15 (n=935) 4Q15 (n=1057) 1Q16 (n=749) 3Q16 (n=806) 4Q16 (n=613) Source: 451 Research, Voice of the Enterprise: Cloud Transformation 4Q14: 9.5% 4Q16: 17.0%
- 33. Innovation Top Digital Transformation Driver 33 22% 21% 34% 28% 24% 12% 27% 31% 44% 39% 37% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customer responsiveness Increasing competitive differentiation Enhancing our ability to innovate and develop new products and services Security Initiatives Transforming business processes to improve operational efficiencies Enabling more mobile/ remote working We have a formal strategy and are actively digitizing our business processes and technologies We currently have no digital transformation strategy In your opinion, which of the following activities are the biggest drivers for your organization's IT and Business Application investments over the next 12 months?
- 34. Workpla ce 34
- 35. 35 Customer Experience driving Digital Transformation
- 36. Current platforms inhibit digital transformation 36
- 37. New platform to enable digital transformation 37
- 38. How? DevOps (Culture, Automation, Measurement) What? Microservices, Continous Integration, Delivery & Deployment Why? Survival 38
- 39. Industries
- 40. 17% 21% 20% 10% 16% 20% 14% 26% 23% 23% 12% 24% 14% 16% 36% 32% 27% 48% 28% 29% 27% 21% 24% 28% 29% 33% 35% 41% 0% 10% 20% 30% 40% 50% 60% Professional Servies Pharmaceutical/ Healthcare Other Manufacturing Retail Telco, Media and Utilities Financial Services We currently have no digital transformation strategy We are considering it, but have no formal plans We are in the planning stage - researching to form our digital transformation strategy We have a formal strategy and are actively digitizing our business processes and technologies Financial Services, Telco and Retail Lead Digital Transformation Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
- 41. 21% 24% 20% 27% 14% 16% 29% 28% 15% 8% 21% 12% 28% 23% 27% 41% 28% 37% 35% 41% 17% 19% 9% 23% 16% CONSUMER RETAIL PRODUCTS & SERVICES MANUFACTURING EQUIPMENT & SERVICES FINANCIAL SERVICES TELECOMMUNICATIONS - CARRIER/ISP HEALTHCARE Integrating business apps across silos and processes Adapting legacy business apps that are not flexible or customizable Mobilizing business applications Managing data growth Eliminating data silos Pain Points Vary by Vertical Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
- 42. Finance - banking Social, mobile, global, local all have implica0ons for data connec0vity “Our busiest branch in 2014 is the 7:01 from Reading to Paddington - over 167,000 of our customers use our Mobile Banking app between 7am and 8am on their commute to work every day.” - Ross McEwan, CEO, February 2014
- 43. Manufacturing 43
- 44. Key Takeaways for Digital Transformation
- 45. Survival is not mandatory – just ask these guys
- 48. 48 In order to grow Citi, we first have to grow our own perspective, skills and capabilities… Our curiosity, our openness to learning and trying new things, our ability to adjust and adapt quickly and our willingness to fail fast and fail small are the essence of a culture that innovates and exposes new value to our clients in real time. Stephen Bird, CEO Citi Global Consumer Group Source: “A Transformation Journey,” Brad Miller, 2016.
- 49. Use small batch thinking, at all levels 49 Inception Hypothesize Validate w/ real use(r)s Did it work? Sources: “Good Software is a Series of Little Failures,” Coté, April 2016; The Lean Startup, Eric Ries, 2011. The Lean Enterprise, Barry O'Reilly, Jez Humble, and Joanne Molesky. See also overview of this approach at the IRS from Dec 2015. "Application Modernization, Service By Microservice," Kurt Bittner and Randy Heffner, Forrester, Dec 2015; "Best Practices For Agile-Plus- Architecture," Randy Heffner, Forrester February, 2015. “We did an analysis of hundreds of projects over a multiyear period. The ones that delivered in less than a quarter succeeded about 80% of the time, while the ones that lasted more than a year failed at about the same rate. We’re simply not very good at large efforts.” Large financial institution
- 50. Increasing paint and tools rental revenue Source: story from interviews, picture from Wikipedia.50
- 51. How much do I owe the IRS? Source: "Minimum Viable Taxes: Lessons learned building an MVP inside the IRS,” Andrea Schneider & Lauren Gilchrist, 2015. Βεφορε Αφτερ 51
- 52. Agile practices and collaboration for product and culture transformation • World class application development services • Proven transformational methodology Big Data & Analytics Modern, open, highly parallelized platform • Big data, in-memory, and database software • Industries most complete big data analytics offering Cloud Native Platform Modern, open, highly automated cloud platform • Platform-as-a-Service (PaaS) software with multi-cloud support • Record-breaking sales growth and adoption Agile Product Development
- 53. Pivotal Cloud Foundry, layers & capabilities 53 Application Framework Runtime Platform Infrastructure Automation Infrastructure Dev Dev Ops BOSH Contract: 12 factor app Contract: BOSH Release Contract: Cloud Provider Interface IT Ops Culture Cloud Native Framework Tools Go Source: “Get Started on Pivotal's Cloud Foundry Stack,” Coté/The New Stack, Jan 2016.
- 54. Pivotal Labs & Pivotal Cloud Foundry Worldwide, cross industry adoption 54 And many more...
- 55. Engage with my brand! 55 • Learn more about Pivotal: http://pivotal.io • My chapbook on transforming to cloud native: http://cote.io/cloud2 • Talk further: @cote or cote@pivotal.io • SpringOne Platform 2017: Dec 4th to 7th, San Francisco