IT matters once again (Milan 19/9/2017 - Evento Quantyca)

1. IT MATTERS
ONCE AGAIN

3. IT management should, frankly, become
boring. The key to success, for the vast
majority of companies, is no longer to seek
advantage aggressively but to manage costs
and risks meticulously
If, like many executives, you’ve begun to take a more
defensive posture toward IT in the last two years, spending
more frugally and thinking more pragmatically, you’re already
on the right course. The challenge will be to maintain that
discipline when the business cycle strengthens and the chorus
of hype about IT’s strategic value rises anew.
Nicholas G. Carr

4. In 2003 he was almost right
1960
Mainframe
1970
Client Server
1980
Office
automation
1990
ERP & DWH
2000
CRM & Web
All companies were doing the same thing at the same time with the same vendors.
IT was not a real strategic differentiator.
IT was almost a commodity

5. Today the situation has dramatically changed

6. Storage Cost-Performance (1992-2015)
Source: Deloitte University Press

7. Computing Cost-Performance (1999-2012)
Source: Deloitte University Press

8. Bandwidth Cost-Performance (1999-2012)

9. Breakthrough opportunities
Lower the costs Faster adoption rate

10. Breakthrough opportunities

11. Disruptive threats
● Fifty years ago, the life
expectancy of a firm in
the Fortune 500 was
around 75 years. Today,
it’s less than 15 years
and declining all the time
(1).
● Only 12.2% of the
Fortune 500 companies in
1955 were still on the list
59 years later in 2014 (2)

12. Fourth Industrial Revolution
The World Economic Forum calls the emerging hyper-creative marketplace a
Fourth Industrial Revolution, projecting that the “scale, scope, and complexity
of the [economic transformation will be unlike any humankind has
experienced before ... disrupting almost every industry in every country .” (1)

13. Accelerating Obsolescence
PAST
Capital was invested to create a new source of value,
after which the owner could spend years harvesting their
asset. Because so much more time was spent in the
harvest stage, success was tied to operational excellence.
Profit flowed from improving efficiency while delivering
consistent quality.
PPRESENT/FUTURE
As highly effective competitors enter markets with ever-greater
speed, the lifespan of any given idea is compressed. Innovation
can still create new market opportunities, but the time an
organization or individual has to harvest potential profit falls
dramatically. This is the fact that undermines the two century old
model for the industrial economy.

15. From execution to search: serial innovation
Innovation becomes the new core competency
To thrive organization will need to repeatedly create unique and original
value that matters in the marketplace, quickly and at affordable cost.

16. What kind of Innovation?
SUSTAINING DISRUPTIVEEFFICENCY
Disruptive innovation transform
complicated, costly products that
previously had been available only
to a few people, into simpler,
cheaper products available to
many. It creates jobs and
consumes capital
Sustaining innovation replace old
products with new.
It has a zero-sum effect on jobs
and capital.
Efficiency innovation reduce the
cost of making and distributing
existing products and services.
It reduces jobs and creates
capital.

17. Gap in enterprise sustainability
Closing this gap requires new ways of
thinking and working. It requires a shift
from a mindset of sustained competitive
advantage, to one of limited transient
advantage. It requires a mindset and
culture of rapid experimentation,
learning, and adjustment.
Martec’s Law
Technology changes
exponentially, but organizations
change logarithmically.

18. The new role of Technology

19. Each company is becoming a Tech Company
“Goldman Sachs is a technology firm”
Lloyd Blankfein, Goldman Sachs’ Chairman and CEO
“GE is on track to become a top 10 software company'”
Jeff Immelt, GE’s Chairman and CEO
“We are as much a tech company as we are a pizza company”
Patrick Doyle, CEO of Domino’s Pizza
“Il nuovo inglese è il coding.”
Gianmario Verona, rettore dell’università commerciale Luigi Bocconi

20. What does it take to become a tech company?
Six memos for the future

21. Courage
For courageous executives, failing fast is
synonymous with quick learning, and costly risk is
mitigated through rapid experimentation
Source: “THE NEXT BIG DISRUPTION: COURAGEOUS EXECUTIVES” - ThoughtWorks
Playing safe is very risky
Source: “THE PURPLE COW” - Seth Goldin

22. Adaptation
● act to learn
● fight waste and kill silos
● iterate fast in small batches
● design for change
● pivot if necessary

23. ● (Kill IT department)
● Empower and grow multidisciplinary, future-ready
employees.
● Erase the lines between business and technology.
● Create cross-functional teams all focused on a single
market objective
Multidisciplinary
Conway’s Law
"Any organization that designs a system will inevitably
produce a design whose structure is a copy of the
organization's communication structure"

24. People
Despite rapid growth in the ICT sector, creating
some 120,000 new jobs a year, Europe could
face a shortage of more than 800,000 skilled ICT
workers by 2020
Source: Andrus Ansip, Vice-President at the European Policy Centre

25. Value
● Mesure always the value from the
point of view of the customer
● Product Mindset vs Project
Mindset
● Value is in the outcome not in the
output

26. Openness
● Focus on value no matter from where it come from. Most of it come
from the outside
● Think at your organization as an ecosystem not as an island.
Develop partnerships

27. Starting on a new path is
scary, but after every step
we realize how dangerous
it would've been to
remain still

28. Andrea Gioia
Partner at Quantyca & Co-founder at Blindata.io