1. Smart IT – Innovation and Growth
Chief Wine Officer and Micro Focus
London, June 2013

2. Smart IT – Innovation and Growth
CWO Event, London, June 2013
Derek Britton, Micro Focus
@derekbrittonuk

3. Agenda
Industry Pressures The IT Scorecard
Barriers to
Innovation
The Road Ahead

4. Austerity 'may last until 2020'
Industry Pressures

5. 5
... a stark reminder of the debt problems
facing our country
George Osborne
Reuters, 23rd February 2013

6. Banks Race To
Meet Account-
Switching
Deadline
Parliamentary
Commission on
Banking Standards
poised to recommend
... full bank account
portability

7. FINED $1.5B FOR LIBOR
RIGGING
NEWS NEWS
IS TO CUT 2,500 JOBS FROM
ITS FINANCIAL AND RISK
DIVISION
NEWS
IS TO CUT 4,000 JOBS IN 2013,
SAVING $1B IN COSTS
NEWS
BRITAIN’S FS SECTOR WILL CUT A
FURTHER 18,000 JOBS OVER THE
NEXT THREE MONTHS

8. The IT Scorecard
• Reduce costs to improve bottom line
• Ensure competitiveness through
better service delivery

9. The IT Scorecard - Cost
70%of IT Budget is spent on
“business as usual” or “lights
on” activities such as
application backlog and
compliance projects
7.3%of revenue is spent on IT in the
Financial Services sector. Way
above other verticals.

10. 57%
Significant differences in perception
between IT and non-IT employees
of IT leaders agreed
that their
organization was
"distributed, agile,
and flexible”
of business
people outside
IT agree
29%
The IT Scorecard - Delivery

11. 2013 - The year of efficiency
More than half of CIOs stated that their top business
priority for 2013 is increasing efficiency at
their organisation

12. Barriers to Innovation

13. Barriers to Innovation: IT Backlog
46% did not know
the value of their
IT debt
44% have no structured
process for measuring
and managing IT Debt
45% without a process
are not planning to
implement one
57% say they have an
unclear picture of their
application portfolio
Source:
$1 trillionGlobal IT debt will rise to
by 2015

14. Barriers to Innovation: Disruptive Forces
DISRUPTIVE
TECHNOLOGIESCloud
computing
Mobile
Social Media &
Collaboration
Analytics
& Big Data
Innovations to
Change the Face
of Business
Digital Disruption –
CIOs, are you
disruptive enough?
Gartner and Forrester agree
New Generation technology is taking up a lot of mindshare
new budget
new skills
new technology
new processes
Requiring

15. The Road Ahead

16. The Goal: Smart IT Innovation
TACKLE THE IT BACKLOG
DISRUPTIVE
TECHNOLOGIES
New Architecture
Mobile
Cloud
Development
Efficiency
Skills and
Organization

17. Smart IT needs Smart Thinking
Modernization:
Clearing a
Pathway to
Success
53%
Success with
Application
Modernization
30%
Success with
replacing
application with
a COTS package
4%
Success when
re-writing
application
from scratch
42%
Chance of
partial failure or
excessive delays
Package:

18. Smart IT: A Customer Perspective
Package
Rewrite
Modernize
COST
RISK
TIME TO
VALUE
COMPETITIVE
ADVANTAGE
(0 – 10)
Lowest cost
High risk
Medium risk
Low risk
2-3 years
3-5 years
4 months
4x cost
10x cost
1x cost
0/10 competitive advantage
6/10 competitive advantage
10/10 competitive
advantage
Lowest risk
Shortest time
Greatest advantage
Package
Rewrite
Modernize
Package
Rewrite
Modernize
Package
Rewrite
Modernize

19. Smart IT Innovation: Micro Focus

20. Smart IT Innovation: Micro Focus
Cloud
Mobile
New Architecture
Skills and
Organization
Development
Efficiency

21. Smart IT – Innovation and Growth
CWO Event, London, June 2013
Derek Britton, Micro Focus
@derekbrittonuk

22. Smart IT – Innovation and Growth
CWO Event, London, June 2013
1. What is driving your IT priority?
2. What are your biggest barriers to
delivering IT services?

23. Smart IT – Innovation and Growth
CWO Event, London, June 2013
Derek Britton, Micro Focus