Defrag Keynote on CoIT - November 10th, 2011

CoITHow the Rampant Consumerization of IT is Reshaping BusinessDion Hinchcliffe (@dhinchcliffe) Keynote on November 10th, 2011Inspired By: The ‘Big Five’ IT Trends of the Next Decade | ZDNet

Introduction Spring 2012 Dion Hinchcliffe • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • ebizQ’s Next-Generation Enterprises • http://www.ebizq.net/blogs/enterprise •• EVP of Strategy http://dachisgroup.com • mailto:dion.hinchcliffe@dachisgroup.com • : @dhinchcliffe® 2010 Dachis Group 2

Dachis GroupThe good news: Technology and productivity(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 3

Dachis GroupBut is this coming from IT?(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 4

Dachis GroupIs IT even leading innovation?(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 5

Dachis GroupYet 60% of CIOs believe they should be drivinggrowth and productivity. Source: Deloitte Survey, 2011(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 6

Dachis GroupBut technology change is happening fasterthan ever before • A tsunami of new mobile devices and technologies • A vast wave of social media • The rumbles of cloud computing and SaaS • The shift to DIY • A ﬂood of Big Data(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 7

Dachis GroupA perfect storm of technology change(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 8

Dachis GroupHappening almost all at once(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 9

Dachis GroupKey data point #1: Mobile• Smart mobile devices outshipped PCs in early 2011• Tablets are expected to on par with PCs by 2015• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs• Global mobile data going geometric is going to be the largest challenge to growth and use• App stores are creating all new conduits between IT suppliers and workers(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 10

Dachis Group Mobile Internet Ramping Up Faster Than Desktop Internet by 5x Source: Mary Meeker, Morgan Stanley(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis GroupKey data point #2 The Adoption Rates of E-mail, Social Networks, and E2.0• Social is now the dominant form of 1B Internet 100% communication on projected the planet 750M 75% Enterprises Global Users Percent of• Enterprises are 2-4 imate years behind the high est 50% rest of the world. 500M low estimat e• Yet data shows 25% that revenue of 250M social businesses 2006 2007 2008 2009 2010 2011 is 24% higher on average. Consumer Social E-mail Enterprise 2.0 Proﬁtability is Networks better too. Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC- Source: McKinsey and Frost & Sullivan(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 12

Dachis GroupHundreds of public social networks...(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 13

Dachis GroupThe Cloud Is Increasingly Subversive• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 14

Dachis Group So Workers Have Moved... And Companies Have Fallen Behind • Mobile • Social • New Digital Channels • Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis GroupA new mindset has arrived: Consumerization• “It’s not so hard, I can do this myself.” DIY• “There’s an app for that.”• “I’ll just install this myself.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.” Simple Fast Easy And Works The Way They Want It To(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 16

Dachis GroupA tidal wave of data• 80-90% of IT information is not accessible• The amount of information today is just a trickle compared to what it will be in 2-3 years• It will require all new technologies and skills that IT departments don’t have(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 17

Dachis Group(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 18

Dachis GroupAnother Way ofLooking At All This World Workers IT(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 19

Dachis GroupAnecdotes• A CIO of a multi-billion dollar ﬁrm deliberately puts himself in direct competition with service providers.• If internal units gets a better deal and support, he’ll enable the process.• Another Fortune 500 CIO has been cutting costs by 10% a year, every year.• Reducing headcount dramatically but tripling his IT output using high leverage techniques and partnering with savvy workers.• A third CIO just enabled a Bring-Your- Own-Device initiative. Users must act responsibly.• Common thread: Designed loss of control.(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 20

Dachis GroupThe challenge• Ignoring technology change isn’t the answer• Maintaining backlogs isn’t the answer• Giving up isn’t the answer• Proceeding in the same direction isn’t the answer• Letting everyone do whatever they want isn’t the answer• Should we look at all new models for IT?(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 21

Dachis GroupPremise: IT is becoming pervasive and user-driven• In 2000, only 10% of IT was unsanctioned or outside of central control• Today that’s 30% and climbing quickly. CoIT Traditional IT 2000 2010(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 22

Dachis GroupFor IT, all of this is unsustainable(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 23

Dachis GroupWe Must Become Resilient to Constant Change There is great economic and social value in achieving this (in pink above)(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 24

Dachis GroupHow do we design for loss of control?• “Make change an integral function. Native.” - JP Rangaswami frequent adaptive course cycles of corrections change reﬁnement growth disruption renewal(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 25

Dachis GroupThe CoIT era!• A consumer notion of IT• Driven bottom-up and guided from top-down• In other words: Cooperative IT Consumerized IT Cooperative IT(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 26

Dachis Group #CoIT(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 27

Dachis GroupThe Future of IT: Consumerization & Cooperation • Broad enterprise uptake of consumer tech • Business-led solutions with IT support • Consumerization CoIT • Disruptive software distribution models • IT as enabling business infrastructure of the workplace • • Exponential increases in apps/devices • Decentralized governance Rise of shadow IT pressure to change (10% ten years Tec Social Computing ago, nearly a 3rd today) h Consumer Tech Enterprise Evolution nol • ogic Shadow IT Adoption SaaS makes al narrowing Cloud Computing/SaaS enterprise cloud Dis gap apps just a URL rup Next-Gen Smartphones away tion App Stores • Smartphones the The Business/IT new “IT dept in Divide Line control vs. progress your pocket” of proﬁt center vs. overhead change backlog IT Dept. • Tech savvy business Business lack of alignment users leading the unlike competencies differing priorities charge with their Common Ground own vision

Dachis GroupThe Forces For and Against It • Shorter business cycles forces of constraint • Faster tech innovation • Manageability • Low barriers to access • Standardization • Unprecedented choice • Security concerns • Disruptive new tech • Cost containment • User autonomy • Economies of scale • Unsanctioned IT • Procurement process • Regulations & laws forces of proliferation

Dachis GroupCoIT vs. Traditional IT key aspects highly decentralized consumerized designed loss of control IT competition (BYOD/app) 10x-100x IT increase long tail solutions hard to support & secure CoIT rapid response to change centralized complex & unwieldy tight control no IT competition backlog prone large IT solutions supported & secure Traditional slow to change IT

Dachis GroupThe Implications • Designing of “Loss of “Control • Becoming agents of enablement instead of source of all delivery • Getting into the service delivery “long tail” with SaaS, enterprise app stores, and mashups • Emergent enterprise architecture • Addressing the shortfall in systems of engagement and connecting them to systems of record

Dachis Group

Dachis GroupGetting into the business of emergent change frequent adaptive course cycles of corrections change reﬁnement growth me ut co emergent outcome to disruption rgen renewal eme me outco Culture of Experimentation emergent Freeform Collaboration int Local Autonomy en eme tion rge al nt o ou utco emergent tco me drivers me It’s being fast, adaptive, agile, social and emergent.

Dachis GroupGetting to CoIT• Option #1: Don’t change. It’ll route around you.• Option #2: Give up all non-essential control. Make it secure and safe.• Empower workers and business partners on the edge.• Give everyone simple, easy to understand rules of CoIT engagement.• Lay the foundation for managing and governing 10-100x more IT and data.• Throw out the traditional IT playbook.• Identify CoIT skills, then cultivate or hire for them.• Become a change agent and an IT revolutionary. You probably won’t have your current job long anyway.

Thank you

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Defrag Keynote on CoIT - November 10th, 2011

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