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Unlocking the Power of Digital Transformation: Freeing IT from Legacy Constraints

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Global study shows legacy decisions, technology and perceptions are impacting innovation and business performance. View the full report, here: http://www.brocade.com/content/dam/common/documents/content-types/infographics/brocade-digital-transformation-legacy-constraints-wp.pdf

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Unlocking the Power of Digital Transformation: Freeing IT from Legacy Constraints

  1. 1. Unlocking the Power of Digital Transformation © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION
  2. 2. Unlocking the Power of Digital Transformation: Freeing IT from Legacy Constraints A global study from Brocade that identifies businesses are missing opportunities to unlock innovation more quickly and more effectively due to legacy technology and historical misperceptions about the role of IT departments. © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 2
  3. 3. Unlocking the Power of Digital Transformation © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 3 “ For two decades, legacy IT infrastructure has held back businesses from innovating on their terms. The IT department has found itself having to say ‘no’ to new business opportunities far too often. It wasn’t supposed to be that way. “ Modern New IP technologies unlock the power of the network as a platform for innovation and put the IT department in the business of saying ‘yes’ to the kinds of business opportunities that surface almost daily in today’s era of digital transformation. “ The network is the critical key to unlocking the power of digital transformation and freeing the IT department from the legacy constraints that are currently blocking innovation.” Christine Heckart, Chief Marketing Officer at Brocade
  4. 4. Unlocking the Power of Digital Transformation Overview of findings • IT leaders and teams are under unprecedented pressure to deliver tangible business benefits—from increased competitiveness and innovation to productivity and revenue • However, these IT teams are under a range of constraints, from dealing with legacy technology to historical misperceptions about the role of IT departments • These are blocking them from delivering the benefits of Digital Transformation • .As a result businesses are missing opportunities to unlock innovation more quickly and more effectively and IT decision ,makers are feeling frustrated • This is in turn having a negative effect on competitiveness, productivity, innovation and revenue © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 4
  5. 5. Unlocking the Power of Digital Transformation • Digital Transformation and Success • Challenges for IT • Opportunity for IT • Conclusions © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 5 Four sections in the report
  6. 6. Digital Transformation Adoption of Digital Transformation Strategies © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 6 87% ITDMs say their organization are adopting 94% say their CIO and IT managers feel it is important in order to achieve business objectives 79% state that their organization is restricted in its ability to support digital transformation
  7. 7. Digital Transformation Innovation key reason for transformation IT Departments vital © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 7 97% recognized IT as important to enabling the organisation to innovate and grow 44% say that the innovation of IT services and 42% say the introduction of new technologies are the most important factors in their IT team’s KPIs
  8. 8. Challenges for the IT Department Where the time is currently spent © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 8 This restricts the time available to digitally transform their organization. 73% maintaining data security 63% maintaining legacy systems
  9. 9. Challenges for the IT Department The main obstacles to Digital Transformation © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 9 49% lack of budget 43% security concerns 26% inflexible legacy system 9% nothing is delaying 26% not having the right skill sets 22% other priorities 19% legislative restrictions 14% lack of board support 14% lack of board understanding 21% lack of innovative attitude within IT 28% internal policy restrictions
  10. 10. Challenges for the IT Department Leading to frustration in, and with, IT © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 10 84% believe that the CIO and IT management in their organisation feel limited in how much they can innovate Almost half (46%) state that their IT department is perceived as not being able to deliver on some business needs 91% report that there are issues preventing their IT department from delivering on current business demands immediately Nearly three quarters (72%) of ITDMs feel frustrated that they cannot readily deliver what is demanded by the business
  11. 11. Challenges for the IT Department A world of missed opportunities © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 11 7% 33% 47% 13% All employees think IT always say 'no' by default Most employees think IT always say 'no' by default Some employees think IT always say 'no' by default No employees think IT always say 'no' by default 88% state that there have been situations in the last year where their IT team has had to defer or decline requests that would have clearly benefitted the business 53% say that these situations resulted in missing short-term benefits—and even more, 72% missed long- term benefits Three quarters (77%) report that IT leaders in their organization get frustrated with saying ‘no’ or ‘not yet’ to the business
  12. 12. The Opportunity for IT if More Flexible The benefits of a ‘yes’ from IT © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 12 36% 36% 36% 34% 32% 31% 30% 30% 27% 27% 22% 20% 20% 2% IT downtime would reduce Security risks would be reduced We would be more competitive Revenue would increase Better business analytics Skills could focus on innovation IT staff satisfaction would rise Shadow IT would be eliminated A more iterative approach to IT IT team resources would be freed Non-IT staff satisfaction would rise No more incompatible data silos Non-IT team resource would be freed We would not expect any benefits 98% of respondents would expect to see benefits One third (36%) would expect the business to be more competitive 31% expect skills to be more focused on innovation 30% expect the elimination of shadow IT
  13. 13. The Opportunity for IT if More Flexible Impact on the bottom line © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 13 12% increase in revenue over the next 12 months 72% believe they could increase their revenue 70% say it could allow them to decrease their costs 10% decrease in costs over the next 12 months
  14. 14. • Brocade knows from experience, and this report confirms, how critical IT is to enabling innovation • But too many businesses are restricted in their ability to adopt digital transformation and drive this change • It’s clear that if IT departments could spend less time ‘keeping the lights on’, then they could devote more time to creating value, reducing costs, and increasing revenues • Organisations need to be more fluid with their uptake and deployment of technology to secure future business success Conclusions © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 14 • As companies move to digitize their businesses they need an underlying network infrastructure that allows them to innovate quickly • The network must become a platform for innovation to develop, deliver, and secure applications • This is best achieved through implementing network architectures that are software-centric, open, and agile, such as the New IP
  15. 15. Methodology 630 IT decision makers were interviewed in March 2016 • Respondents came from across the globe: – US: 200 interviews – UK: 100 interviews – Germany: 100 interviews – France: 100 interviews – Australia: 80 interviews – Singapore: 50 interviews • To qualify for the research, respondents’ organisations could be from any sector, excluding the ‘Other public sector’ and their organisation had to have at least 500 employees • IT decision makers were interviewed using an online methodology and a robust multi-level screening process was used to ensure only appropriate respondents participated in the project © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 15
  16. 16. Thank you © 2016 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION

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