Dr. Martin MockerResearch ScientistCenter for Information Systems Research (CISR)MIT Sloan School of ManagementPhone: (617...
1Predicting the future…Trying to predict the future is like trying to drive down a country roadat night with no lights whi...
2CISR Research PatronsA.P. Moller Maersk (Denmark)AECOMAetna, Inc.AGL Energy Limited (Australia)Akamai TechnologiesAllianz...
3SolutionsDigitizedPlatformAs the IT unit’s focus shifts from solutions to platforms…Center for Information Systems Resear...
4… the current value proposition of the IT unit becomesinsufficient= ENABLECenter for Information Systems Research (CISR)©...
5The new value proposition emphasizes innovation andbusiness value Building and leveragingplatforms involves a value cycl...
6IT Units are better at Run and Build than Commit and ExploitSource: Survey of 75 MIT CISR sponsors, November 3, 2011Cente...
7There are many opportunities to exploit a platformDigitalInnovationExploitBusinessProcessOptimizationBusinessIntelligence...
8Taking charge of the IT value cycle: Commit Commit involves articulating acompany’s strategic vision andthen allocating ...
9Committing on one of four operating modelsSource: Adapted from Enterprise Architecture as Strategy: Creating a Foundation...
10Where IT is in the org chart does NOT matter– What IT “does” doesSource: J. Ross and C. Beath, “USAA: Organizing for Inn...
11Some practices that help reposition the IT unit for Exploit andCommit Start debates on your enterprise’s most important...
12Predicting the future…Trying to predict the future is like trying to drive down a country roadat night with no lights wh...
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The value proposition of the IT unit of the future

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Dr. Martin Mocker, Scientist, MIT, über Erkenntnisse der Spitzenforschung in der Entwicklung von IT-Organisationen, die helfen werden, über mögliche Modelle der Zukunft nachzudenken.

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The value proposition of the IT unit of the future

  1. 1. Dr. Martin MockerResearch ScientistCenter for Information Systems Research (CISR)MIT Sloan School of ManagementPhone: (617) 253-2348, Fax: (617) 253-4424mmocker@mit.edu; http://cisr.mit.eduMicrosoft Switzerland Executive Circle SummitThe Value Proposition of the IT Unit of the FutureThis research was made possible by the support of CISR sponsors and patrons.December 4, 2012 in ZurichIT unitCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Mocker
  2. 2. 1Predicting the future…Trying to predict the future is like trying to drive down a country roadat night with no lights while looking out the back window.-- Peter F. DruckerCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Mocker
  3. 3. 2CISR Research PatronsA.P. Moller Maersk (Denmark)AECOMAetna, Inc.AGL Energy Limited (Australia)Akamai TechnologiesAllianz Global Corporate & SpecialtyAllstate Insurance Co.AMP Services Ltd. (Australia)ANZ Banking Group (Australia)Australia PostAustralian Taxation OfficeBanco Bradesco S.A. (Brazil)Banco do Brasil S.A.Bank of AmericaBBVA (Spain)Bemis Company, Inc.Biogen IdecBlue Cross Blue Shield of MassachusettsBNP Paribas (France)BP (U.K.)BT Group (U.K.)Canada Pension Plan Investment BoardCanadian Imperial Bank of CommerceCapital One Services, LLCCareFirst BlueCross BlueShieldChevron Corp.CHRISTUS HealthChubb & SonCommonwealth Bank of AustraliaCredit Suisse (Switzerland)DWS (Australia)Encana Corp. (Canada)Equinox Ltd. (New Zealand)ExxonMobil Global Services Co.Fidelity InvestmentsFOXTEL (Australia)France TelecomHolcim Brasil S.A.Insurance Australia GroupInternational Finance Corp.Itaú – Unibanco S.A. (Brazil)Johnson & JohnsonLeighton Holdings Ltd. (Australia)Level 3 CommunicationsManpowerGroupMarathon Oil Corp.MetLifeNASANomura Research Institute, Ltd. (Japan)Origin Energy (Australia)Parsons BrinckerhoffPepsiCo Inc.Principal Financial Group, Inc.Raytheon CompanyReed ElsevierSchneider Electric Industries SASSears Holdings Mgmt. Corp.Standard & Poor’sState Street Corp.Sunoco, Inc.Swiss Reinsurance Co. Ltd.(Switzerland)TD Bank (Canada)Teck Resources Ltd. (Canada)Telstra Corp. (Australia)Tetra Pak (Sweden)Time Warner CableTrinity HealthUnited States Dept. of Health &Human ServicesUnited States Postal ServiceUnum GroupUSAAVF CorporationWestpac Banking Corp. (Australia)Woolworths Limited (Australia)World BankMIT CISR gratefully acknowledges the support and contributionsof its Research Patrons and Sponsors.CISR Research SponsorsThe Boston Consulting Group, Inc.EMC Corp.Gartner, Inc.IBM CorporationMicrosoft CorporationOliver Wyman, Inc.Tata Consultancy ServicesMIT CISR’s Mission Founded in 1974, MIT CISR deliverspractical, research-based insights onhow digitization enables enterprises tothrive in a fast-changing global economy. MIT CISR engages its community throughresearch, electronic research briefings,working papers, meetings, and executiveeducation.2012 MIT CISR Research ProjectsDoing Business Digitally Strengthening Your DigitalBusiness Model Building Digitized Platforms Can Be Slow:What Are the Alternatives? Digital Innovation: DesigningCustomer-centric Products and ServicesRedesigning Organizationsfor the Digital Economy The Next-generation Enterprise: Designingfor an Increasingly Digital Ecosystem Case Studies in Social Media Innovations BYOD: Radical Changes to ManagingTechnology and the People andProcesses Relying on It Working Smarter: Seizing theOpportunities Created by Ubiquitous DataRethinking the Role of the IT Unit Managing Your Firm’s Total Digitization:The Next Frontier Business Complexity: Shifting ITfrom Problem to Solution Managing IT Supply and Demand:How to Build a World-ClassService Organization5 Cambridge CenterNE25–7th FloorCambridge, MA 02142Ph. 617-253-2348Fax 617-253-4424cisr@mit.eduhttp://cisr.mit.edu© 2012 MIT Sloan CISR27 September 2012
  4. 4. 3SolutionsDigitizedPlatformAs the IT unit’s focus shifts from solutions to platforms…Center for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  5. 5. 4… the current value proposition of the IT unit becomesinsufficient= ENABLECenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  6. 6. 5The new value proposition emphasizes innovation andbusiness value Building and leveragingplatforms involves a value cyclerather than the traditional valuechain– Build: delivering newtechnology, process, andinformation-based capabilities– Run: ensuring reliable supportof these capabilities– Exploit: generating ongoingbusiness value from capabilities– Commit: allocating resourcesto ensure innovations addressstrategic priorities More Concentrated in ITMore DistributedBusinessValueCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  7. 7. 6IT Units are better at Run and Build than Commit and ExploitSource: Survey of 75 MIT CISR sponsors, November 3, 2011Center for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross2,33,7Exploit4,0CommitBuildRunLabel 5,02,9But Run and Build are going away (to partners)1Ad hoc,locally drivenprocesses2 3SomeEnterprise-wideRepeatableprocesses4 5ConsistentlyExecutedEnterprise-wideprocesses
  8. 8. 7There are many opportunities to exploit a platformDigitalInnovationExploitBusinessProcessOptimizationBusinessIntelligence• Automating tasks machinesdo better than people• Facilitating collaborationamong knowledge workers• Making products and servicesavailable electronically• Data warehousingand analytics• Empowering front-lineworkers withinformation• Facilitatingmeaningful access tounstructured data• Design of digital productsand services• Value-added informationbased services• Enabling “sense andrespond” experimentsCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  9. 9. 8Taking charge of the IT value cycle: Commit Commit involves articulating acompany’s strategic vision andthen allocating business and ITresources to enact that vision. Commit requires thatmanagement articulate avision in operational terms Most firms aren’t very good atcommit– Only 39% of CIOs rate theirsenior executives as effectivein making prioritizationdecisions1 Commit requires very differentthinking about businessstrategy1Source: MIT CISR/BCG survey of 82 CIOs in Fall 2009.BusinessValueCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  10. 10. 9Committing on one of four operating modelsSource: Adapted from Enterprise Architecture as Strategy: Creating a Foundation for BusinessExecution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.BusinessProcessIntegrationHighLowLow HighBusiness Process StandardizationDiversification Independent business units withdifferent customers and expertise Key IT capability: provide economiesof scale without limiting independenceCoordination Unique business units with a needto know each other’s transactions Key IT capability: access to shareddata, through integrated interfacesUnification Single business with global processstandards and global data access Key IT capability: enterprise systemsreinforcing standard processes andproviding global data accessReplication Independent but similar businessunits sharing best practice Key IT capability: provide standardinfrastructure and applicationcomponents for global efficienciesCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  11. 11. 10Where IT is in the org chart does NOT matter– What IT “does” doesSource: J. Ross and C. Beath, “USAA: Organizing for Innovation and Superior CustomerService,” MIT CISR Working Paper No. 382, December 2010.President and CEO4 Additional Shared Services:People, Finance, Legal,CommunicationsEnterpriseStrategy &Planning3 Lines of Business:P&C, FASG, BankMemberExperienceChief AdminOfficerITEnterpriseStrategyEnterpriseTransformationBusinessSolutionsInnovationArchitectureProjectDeliveryEnterpriseBusinessServicesBusinessApplicationsSupportIT OperationsCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  12. 12. 11Some practices that help reposition the IT unit for Exploit andCommit Start debates on your enterprise’s most important operationalcapabilities Focus the IT unit on delivering and exposing business value Help IT people learn to say “no” regularly (albeitdiplomatically) Seed business functions with IT expertise; seed IT withbusiness expertise Prepare for consumerization and The Cloud—they acceleratethe opportunities for using IT strategicallyCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Ross
  13. 13. 12Predicting the future…Trying to predict the future is like trying to drive down a country roadat night with no lights while looking out the back window.-- Peter F. DruckerThe best way to predict the future is to create it.-- Abraham LincolnCenter for Information Systems Research (CISR)© 2012 MIT Sloan CISR - Mocker

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