Enablers for IT organizations

1. JUNE 2018
Introduction
How future-ready is
your IT? – Next Gen
Tech Function

2. 2
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Key tech impacts over the next ten years
IT applications &
infrastructure move to
the cloud
Software embedded
in or supporting most
products & services
Data analytics
unleashes massive
value
Digital affects
every aspect
of organizations
In the future, most companies will become more and more technology companies
Intro to NGTF

3. 3
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What our
clients are
asking us
"What is our digital
talent and skills gap and
how do we close it?"
"How should we organize
digital development at the
enterprise, business unit,
region, & function levels?
What governance
mechanisms do we need?"
"How do we evolve our tech
capabilities and assets to
more nimbly deliver digital
products and services?"
"How do we effectively
connect our customer-
facing digital services
with our core systems?"
"Do we have a sufficiently
strong cybersecurity
capability, are we managing
tech risk appropriately?"
"How do we ensure
cohesive culture across
"digital" & "traditional"
parts of tech organization?"
Intro to NGTF

4. 4
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2017
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5
characteristics
of a Next Gen
Tech Function Establish effective steering and
governance (incl. IT security)
Build world-class tech and
engineering capabilities
Implement agile ways of working
across the entire organization
Build a modern data and digital
platform
Become a player in digital product
and service technology
1
2
3
4
5
Intro to NGTF

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2017
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Inc.
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5
Next Gen
Tech Function
can create
significant value
for clients
BCG Client impact examples
1. Observed acceleration after typical 1.5-3 yr transformation 2. e.g., internal IT process management, IT strategy
3x – 4x
customer satisfaction
and return on digital
investment
10 – 15%
IT business demand
reduction
>90%
employee
engagement
15 - 20%
shift of indirect2 to
direct IT activities
2x – 4x
acceleration1
in delivery
15 – 25%
reduction in
development cost

6. 6
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2017
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Group,
Inc.
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reserved.
Unique opportunity for CIOs to transform
the IT function into a Digital Business
enabling organization
CIOs not engaging in this transition will
focus on governance of technology, a layer
removed from direct business impact
What does it
mean for
CIOs?
Intro to NGTF

7. 7
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2017
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Inc.
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How ready is your IT/Tech function for the future?
Future-readiness heatmap covering 5 characteristics
and 25 building blocks of the Next Gen Tech Function
Detailed evaluation per dimension including
• View on leading practices
• Strengths and weaknesses observed
• Specific recommendations
Applicable cross-industry
Includes qualitative & quantitative analysis,
business & IT view
Building on full range of BCG's industry specific
benchmarks (e.g., EITBB, Factbase, Simplify IT)
!
Source: BCG analysis
NGTF Assessment

8. 8
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2017
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Inc.
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reserved.
What will you
get from an
assessment?
Assessment consists of
~110 questions and ~40
KPIs – can be tailored to
client needs
Detailed view per
building block
High-level IT cost
benchmarking
Future readiness
heatmap
NGTF Assessment

9. 9
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2017
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A set of proven KPIs ensures comparability and robustness of the assessment
Characteristics
Establish effective
steering & collaboration
Build world-class
tech & engineering capabilities
Implement agile ways of working
across the entire organization
Build a modern data & digital
platform
Source: BCG analysis
• Percentage of business applications that are "Commercial Off the Shelf" solutions
• Percentage of business applications that are (highly) customized standard applications
• Percentage of applications written/optimized to run in a Cloud environment
• Percentage of server instances using IaaS / PaaS
• Percentage of business applications based on SaaS solutions
• Percentage of projects based on quantified business case (except for regulatory projects)
• Share of projects delivered on time, budged and quality (=at satisfaction of business
stakeholder)
• Share of IT & non-IT staff working agile
• Mobile developers, data scientists, User Experience Designers and Cloud Experts as a
percentage of IT FTEs
• Percentage of enterprise-wide data objects that have been centrally/uniformly defined
• Outsourcing degree in IT Infrastructure and Operations (cost of purchased services in IT
IO as percentage of total cost in IT IO)
• Outsourcing degree in Application Development & Maintenance (cost of purchased
services in ADM as percentage of total cost in ADM)
Key Performance Indicators
Excerpt from questionnaire
NGTF Assessment

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10
Assessment can be done in
2-4 weeks
Output
• Future readiness
heatmap
• Detailed view per
building block
• High-level IT cost
benchmarking
Note: Typical approach, depending on how fast the required data can be provided
2-4 weeks depending on data availability
Kick-off
workshop
Preparation
Data
collection
Results
workshop
NGTF Assessment

11. 11
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2017
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