Brief presentation introducing Digital Disruption, Digital Strategy and resulting Business Transformation and its impact on the IT organisation.

1. Frits de Vroet
Managing Director, C-Insight Australia
What does Digital Disruption mean for
your IT Organisation?

2. Digital Disruption
• Digital Disruption fuelled by
Mobile, Social, Big Data,
Telematics and Cloud
• New entrants reshape the
competitive environment: e.g.
Uber, Airbnb, Google, Amazon,
Square (mobile payments), etc.
• Many organisations respond to
this by developing a “digital
strategy’… so what does that
mean?

3. Digital Strategy
“Digital strategy is the process of specifying an organization's vision, goals, opportunities
and related activities in order to maximize the business benefits of digital initiatives to the
organization.”
• Marketing: Online, branding, social media tracking
• Product design: User experience, features, functionality
• Operations: process design & standardisation, digitisation of forms & interactions,
preventative interventions
• IT: security, governance, integration, data analytics(?)

4. Technology-driven or Digital
Business Transformation
• Mobility is an element of most digital
business transformation initiatives
• Digital business transformation expands
beyond marketing
• Digital business transformation is a C-level
accountability
• It is less about technology and more about
business outcomes
• Data analytics is a core transformation
capability
• Business transformation affects the business
operating model, process ownership,
process & data architecture, and the IT
landscape

5. Current ‘distractions’ for IT
• Focus on maintenance and/or
upgrade of legacy platforms
• Run/Build spend: 80/20%
• Maintain or reduce current level of
cost
• (Un)controlled adoption of new
solutions leveraging SaaS, PaaS,
etc.
New requirements
• Leverage cloud
• Improve time-to-market
• Facilitate new products,
digitisation
• Provide data analytics
• Provide integration
• Ensure security

6. Threats for IT
 Losing control – ability of functions and employees to go at it alone
 Rogue IT (top CIOs control about 65% of total IT spend)
 Diminishing value of traditional IT organisation
 Big legacy systems that require IT (and business) transformation – this
nowadays includes SAP, Oracle and MSFT ERP platforms…
 25% of CIOs is perceived as a true business peer; 48% is seen as a cost centre
or service provider and primarily manage IT crises…

7. Changing role of IT
Traditional
• Gather business requirements
• Build or source an application and
required infrastructure
• Educate ‘the business’ on how to
use the tool
• Ensure availability, performance, etc.
• Manage IT crises
Now
• Adapt and absorb technologies
• Align and facilitate within the
organisation
• Combine and integrate applications,
data and vendors
• Manage business and vendor
relationships
• Avoid IT crises?

8. IT Transformation considerations
Application and infrastructure landscape
• Big bang replacement - multi year program, high risk, opportunity to establish aligned
product/process/data/IT architecture
• Staged adoption of cloud-based services - software elements followed by hardware
• Working from the fringe inwards - adopting new applications while slowly ‘undressing’
the legacy platform until a small base remains - this requires strong roadmaps for
apps and infrastructure
Organisation
• Go bimodal: establish separate IT functions for development and implementation of
new platform and running the legacy - due to different capabilities, etc.
• Sourcing strategy
• New skills and capabilities – data scientists, cloud brokers, vendor management
• IT operating model

9. Critical elements
• Develop a vision and strategy supported by detailed application and infrastructure
roadmaps
• Engage broadly to drive alignment between business process optimisation and IT
functionality
• Set clear and understandable standards for process, data and IT architecture
• Excel at Integration
• Establish and maintain governance

10. Frits de Vroet
www.c-insight.com.au
Twitter: @FritsdeVroet
LinkedIn: https://au.linkedin.com/in/fritsdevroet