From my keynote last week at Defrag exploring how technology innovation in business today is changing dramatically and how we can get ahead of the challenge of consumer technology pouring over the firewall. Probably the most complete articulation of my CoIT thesis yet.

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

2. 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

3. Dachis Group
The good news: Technology and productivity
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4. Dachis Group
But is this coming from IT?
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5. Dachis Group
Is IT even leading innovation?
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6. Dachis Group
Yet 60% of CIOs believe they should be driving
growth and productivity.
Source: Deloitte Survey, 2011
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7. Dachis Group
But technology change is happening faster
than 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
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8. Dachis Group
A perfect storm of technology change
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9. Dachis Group
Happening almost all at once
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10. Dachis Group
Key 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
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11. Dachis Group
Mobile Internet Ramping Up Faster Than
Desktop Internet by 5x
Source: Mary Meeker, Morgan Stanley
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12. Dachis Group
Key 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
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13. Dachis Group
Hundreds of public social networks...
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...channel fragmentation 13

14. Dachis Group
The 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
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15. 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
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16. Dachis Group
A 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
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17. Dachis Group
A 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
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18. Dachis Group
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19. Dachis Group
Another Way of
Looking At All This
World
Workers
IT
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20. Dachis Group
Anecdotes
• 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.
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21. Dachis Group
The 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?
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22. Dachis Group
Premise: 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
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23. Dachis Group
For IT, all of this is unsustainable
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24. Dachis Group
We Must Become Resilient to Constant Change
There is great economic and social value
in achieving this (in pink above)
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25. Dachis Group
How 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
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26. Dachis Group
The CoIT era!
• A consumer notion of IT
• Driven bottom-up and guided from top-down
• In other words: Cooperative IT
Consumerized IT
Cooperative IT
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27. Dachis Group
#CoIT
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28. Dachis Group
The 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

29. Dachis Group
The 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

30. Dachis Group
CoIT 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

31. Dachis Group
The 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

32. Dachis Group

33. Dachis Group
Getting 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.

34. Dachis Group
Getting 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.

35. Thank you