Seven Changes Driving the Future of IT
 

Seven Changes Driving the Future of IT

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Key findings from a new global survey on the Changing Role of IT. New research commissioned by CA Technologies and conducted by Vanson Bourne illustrates how radically the role of IT is changing in ...

Key findings from a new global survey on the Changing Role of IT. New research commissioned by CA Technologies and conducted by Vanson Bourne illustrates how radically the role of IT is changing in today’s business—and not always to the benefit of IT leaders and staffers. The survey of 1,300 senior IT leaders from large organizations in 21 countries explored the IT department as it is today and what it might become in the future.

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  • To preface my reactions to the points made in the presentation:

    My view, as the author of a computer language expert system, is that as automation sinks its teeth into software development, the number of developers will dramatically decrease, and the average skill and talent level of the survivors will just as dramatically increase. They will be either creating & maintaining systems using the automation tools, or creating & maintaining those tools. Because of their advanced level of skill and experience, they will be in short supply, so their geographic location will be irrelevant, and they will earn globally-based salaries. This will eliminate labor cost arbitrage as a business driver, which will wipe out the whole concept of 'off-shoring'. All of this will not happen tomorrow, but sooner than people think. At that point, the concepts of migration and modernization will be obsolete as we know them now.

    '1. Business is IT, and IT is the business' -- yes, especially as it becomes more possible (due to the automation I have described) for non-IT business people to specify what they want more directly. But until business education / training included in-depth education in data structures, process structures, real-time topics such as service queues, etc., IT will still have a role to play as consultant and guide in such areas.

    '2. The CIO is now more likely to report to the CEO' -- this should already be the case in every enterprise. Any other reporting structure puts the CIO in an untenable position.

    'Yet CIOs are less likely to think of the IT Department as strategic' -- any CIO who doesn't fully recognize and appreciate the strategic importance of IT in a modern enterprise doesn't deserve the title; he/she simply doesn't have the vision and scope to do a proper job.

    '3. Greater spending on new business services' -- in my view, the automation of software development I described above will be a countervailing force in terms of spending, because the software side of IT will become less and less expensive. And the maintenance component will decline dramatically from its current 80-90% to become vanishingly small, as the automation of software development leaves less and less opportunity for design and code defects to occur in the first place.

    '4. IT is becoming a consultant or broker to the business' -- consultant, yes. Broker, not so much, because that implies IT as an intermediary, which I don't see happening. IT will consult on adoption of advancing technology, and when necessary (increasingly rare), will deliver that technology.

    '5. Everyone sees change coming, but there is disagreement on what it means' -- I see IT converging with what Enterprise Architecture should be today -- babysitter of the enterprise's architecture, consultant about it, and proselytizer of its vital role in the enterprise's ability to achieve its goals and objectives.

    '6. Technical roles shrink, while business roles grow' -- this is exactly in line with my prediction about the effects of automation described above.

    '7. Today's IT organizations are not quantifying the value they provide to the business' -- providing solutions is amenable to quantification; maintaining infrastructure is harder to quantify. So as the latter shrinks and the former becomes less costly, quantifying value should get substantially easier. The cost will pare down to the intellectual effort needed to design solutions; implementation will be less and less a financial factor.
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Seven Changes Driving the Future of IT Seven Changes Driving the Future of IT Presentation Transcript

  • Seven Changes Driving the Future of IT
  • Key findings from a new global survey on the Changing Role of IT New research commissioned by CA Technologies and conducted by Vanson Bourne illustrates how radically the role of IT is changing in today’s business—and not always to the benefit of IT leaders and staffers. The survey of 1,300 senior IT leaders from large organizations in 21 countries explored the IT department as it is today and what it might become in the future.
  • Change 1. Business is IT, and IT is the business Business is growing more tech savvy, and controls more of the IT budget. More than one-third (35%) of IT spending is occurring outside of the IT department today – and that number is expected to grow to 44% in three years.
  • IT touches the customer now, more than ever All online customer touches – websites, mobile, even interactive voice response – involve technology, whether or not the IT department is involved
  • Change 2. The CIO is now more likely to report to the CEO As a measure of how strategic technology has become to the business, more CIOs now report to the CEO than ever before
  • Yet CIOs are Less Likely to Think of the IT Department as Strategic Technology is important, not IT…
  • Change 3. Greater spending on new business services IT spending overall is moving away from “lights on” towards new business initiatives. Spending on new products and services is expected to grow in the the next three years from 49% to 59% of the total IT budget.
  • Change 4. IT is becoming a consultant or broker to the business • Broker, Consultant, or Sole Provider? • 39% of respondents now see the IT department as a service broker or consultant to the line of business, rather than a sole- source provider of IT services.
  • Change 5. Everyone sees change coming, but there is disagreement on what it means • IT Functions: Who Will be Responsible in Five Years? – Stay the same as today: 28% – Some IT functions will move to other departments but IT will remain a separate specialized department: 34% – Most IT functions will move to other departments but IT will remain a separate specialized department: 17% – All IT functions will be incorporated into other departments and IT specialists will report to LOB mgmt.: 8% – All IT in the organization will be outsourced: 13%
  • Change 6. Technical roles shrink, while business roles grow • “Which of the following best describes the primary role of IT within your organization currently and in three years’ time?” – Technical Roles • Ensuring the organization’s critical data is secure • Maintaining the organization’s infrastructure & apps • Providing technology support to employees • Fixing problems as they arise – Business Roles • Strategic business partner and advising the business • Improving the customer experience • Driver of new business • Developer of new, innovative products/services
  • Change 7. Today’s IT organizations are not quantifying the value they provide to the business. – Measure benefits of current IT investments – Share key performance metrics with the business – Model how a shift in IT investment impacts business
  • The danger: If IT can’t prove value … … then IT won’t have the credibility it needs to act as a consultant or a broker to the business!
  • Act now, before it is too late to shape your future IT leaders need to understand the full scope of the changes taking place in IT, learn the value that only IT can provide to the business, and get the specific guidance needed to evolve their role and increase IT’s relevance. Download the white paper, TechInsights Report: The Changing Role of IT and What To Do About It