Technology has made your business transparent to your consumers “FedEx Guy Throwing My Computer Monitor” has been viewed 8,338,424 times 2
The fundamental shift
He used to define your technology strategy 3
The fundamental shift
Now these people do 4
THE NEW NORMAL IS …
TRANSLATION: EVERY FROM COMPANY MUST WORK AND SOCIALIZE ANYWHERE BECOME A TECHNOLOGY COMPANY
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Cloud and mobile are the two major enablers
Cloud This is how you will deliver new services “We need a cloud strategy” 7
Mobility This is how your customers will access them “We need a mobility strategy”
When technology is handled in silos ... is the average cost per company of a major technology performance issue is the average time for business operations to return to normal of executives say the number of technology performance issues are staying the same or increasing Source: Compuware survey of 304 business executives, March 2013 Measuring the Impact of Technology Performance Issues www.compuware.com/techfail
Take a step back and look at the whole picture … THE
OLD NORMAL TECHNOLOGY IS INTERNALLY FOCUSED (“SAVE MONEY”)
SUPPLIERS
ENTERPRISE IT
Mainframe LANs
TECHNOLOGY IS EXTERNALLY FOCUSED (“MAKE MONEY”)
Personal Computer Virtualization
LOB Internet Cloud Computing
CUSTOMERS Social Web Mobility
All of these technologies must work together SEAMLESSLY
All of these technologies must work together SEAMLESSLY
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It’s not just about technology, it’s about …
PERFORMANCE Relevance 11
Simplicity
Immediacy
SUPPLIERS
ENTERPRISE IT
Mainframe LANs
Personal Computer Virtualization
CUSTOMERS
LOB Internet Cloud Computing
Social Web Mobility
together All of these technologies must work together SEAMLESSLY PERFORM
The real business need is a TECHNOLOGY PERFORMANCE STRATEGY 12
The New Normal is creating a new landscape for I.T. “Who makes the decision about Cloud?”
THE SUCCESSFUL ‘DIGITAL BUSINESS’ NEEDS THE ACTIVE INVOLVEMENT OF I.T. AND THE LOB Source: CAPGEMINI Survey of 460 businesses, Nov 2012
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The changing role of I.T. (and the CIO) THE
OLD NORMAL
TECHNOLOGY IS INTERNALLY FOCUSED (“SAVE MONEY”)
SUPPLIERS
TECHNOLOGY IS EXTERNALLY FOCUSED (“MAKE MONEY”)
ENTERPRISE IT
Mainframe LANs
Personal Computer Virtualization
NEW ROLE OFOF IT/CIO CURRENT ROLE IT/CIO MAINTAIN SYSTEMS OF RECORD
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CUSTOMERS
LOB Internet Cloud Computing
+
Social Web Mobility
LOB/CEO LOB/CEO BUSINESS PARTNER
I.T. BECOMES AN INTEGRAL PART OF REVENUE GENERATION
… and that’s what companies like these have in common “Performance Engineering is a critical business need” “Business Value Creation Strategy drives our ITDIGITAL strategy” “THE BEST I.T. DRIVES
BUSINESS SUCCESS” “IT and the LOB are working together from initial concept to revenue-ready products” “Key focus is turning data into actionable information”
THE NEW NORMAL
A HUGE OPPORTUNITY FOR I.T. TO BECOME A CRITICAL BUSINESS ENABLER
growth rate
The pace of I.T. spending slowed
The technology gap is an opportunity! 2008
time
2013
SUPPLIERS
ENTERPRISE IT
Mainframe LANs
Personal Computer Virtualization
CUSTOMERS
LOB Internet Cloud Computing
Social Web Mobility
All of these technologies must work together SEAMLESSLY
“What’s happening?” “Why is it happening?” “What happened?” “Why did it happen?” 18
“What’s going to happen?”
Example: Auto Manufacturer
“What happened?” “Why did it happen?” “Server 17 crashed because of a memory leak. Several applications were affected.” 19
“What’s happening?” “Why is it happening?”
“SAP response time is over the SLA. All users in Gearbox Assembly are affected.”
“What’s going to happen?” “SAP response time is starting to degrade, and we predict that within 4 hours, will be over the SLA. All users in Gearbox Assembly will be affected.”
SUPPLIERS
ENTERPRISE IT
Mainframe LANs
Personal Computer Virtualization
CUSTOMERS
LOB Internet Cloud Computing
Social Web Mobility
All of these technologies must work together SEAMLESSLY
20
SUPPLIERS
ENTERPRISE IT
Mainframe LANs
Personal Computer Virtualization
CUSTOMERS
LOB Internet Cloud Computing
Social Web Mobility
All of these technologies must work together SEAMLESSLY IT HAS A REAL-TIME, HOLISTIC VIEW OF THE BUSINESS
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Example: Auto Manufacturer
“What happened?” “Why did it happen?” “Server 17 crashed because of a memory leak. Several applications were affected.” 22
“What’s happening?” “Why is it happening?”
“SAP response time is over the SLA. All users in Gearbox Assembly are affected.”
“Based on website and Facebook activity, these models are becoming more popular in these regions. We can improve profitability by adjusting pricing & availability.”
“What’s going to happen?” “SAP response time is starting to degrade, and we predict that within 4 hours, will be over the SLA. All users in Gearbox Assembly will be affected.”
3 key principles of the New Normal
1 2 3 23
The New Normal represents a fundamental shift • Technology becomes the primary connection with customers • Every company must become a technology company
A technology performance strategy is needed • Not just a cloud strategy or a mobility strategy • End-to-end performance is the new business imperative
The role of I.T. (and the CIO) must transform • I.T. and the LOB must PARTNER together to create business value • I.T. must now operate as a business monitoring P&L