The document discusses the challenges and imperatives of digital transformation faced by IT decision-makers, highlighting the need for alignment between IT and business goals. It reveals that while a vast majority of IT decision-makers recognize the necessity for digital transformation, significant obstacles exist, including misunderstanding what digital transformation entails. The conclusion emphasizes the importance of speed, customer focus, and a culture that fosters innovation to achieve successful transformation.

1. What going digital really means
to IT
Speakers
Ross Mason, Founder & VP of Product Strategy, MuleSoft
Bill Briggs, Chief Technology Officer, Deloitte Consulting LLP

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Today’s agenda
1. Our customers’ need for digital transformation
2. Global survey data on how CIOs and ITDMs are currently managing
digital transformation
3. Digital defined
4. Understanding the forces and challenges present in the digital
revolution
5. How businesses are overcoming these challenges
6. Q and A

4. Ross Mason
Founder & VP Product
Strategy, MuleSoft
Bill Briggs
Chief Technology Officer,
Deloitte Consulting LLP
Our speakers

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Meet one of our customers
6,000
applications
10,000
interfaces
500
IT projects a year
Each project reinvents the wheel

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Biggest challenge: IT cannot go fast enough
DemandsonIT
Time
Today
IT delivery capacity

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IT’s absolute imperative to change
DemandsonIT
Time
Today
IT delivery capacity

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What are ITDMs doing about this?
8
MuleSoft surveyed 802 global IT decision makers about their progress
towards their digital transformation goals.

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Everyone is doing digital transformation
9
96 percent of ITDMs say they are
undertaking or will soon undertake
digital transformation initiatives.

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But they are missing the “transformation” in digital
transformation
10
82% of ITDMs associate
digital transformation with
“going paperless.”

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IT is on the hook for digital transformation, but…
11
65%A majority of ITDMs
(65%) believe IT
has the central role
to play in digital
transformation.

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Very few organizations have mastered it
12
But only 18%
think they can
actually get it
done.

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Failing to meet goals will negatively impact the
business
13
Two-thirds of ITDMs say that
if digital transformation isn’t
completed, it will have a
negative impact on business
revenue within 6 months.

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The single biggest challenge to digital
transformation
ITDMs say the single biggest obstacle to achieving their digital
transformation goals is misalignment between IT and the rest of
the business.

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While the business is expecting faster delivery…
15
57% said the expected
time to complete IT
projects for the business
was six months or less.

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IT is spending its time keeping the lights on
16
More than half of ITDMs say maintaining legacy
systems is a “very important priority.”

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The focus is not on transformative initiatives
17
Most ITDMs are spending their time
incrementally improving business
processes rather than delivering
innovative experiences.

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Top Takeaways
18
IT teams misunderstand digital transformation
IT and the business are misaligned on digital
transformation goals
The business wants IT to deliver faster, but obstacles are
holding IT teams back

19. What Going Digital
Means to IT and
the Bottom Line
Bill Briggs
Chief Technology Officer
Deloitte Consulting LLP
@wdbthree

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DIGITAL defined
Business leaders are grappling with
unprecedented change – growing
connectivity, competition and consumer
power. Disrupt others before you are
disrupted means new products,
organizations, business models, and
ecosystems
Growing competition and consumer
power has eroded traditional product-
based advantages, forcing companies to
shift to a new battlefield: Customer
Experience. This requires integrating the
entire business to demonstrate value at
each and every customer touch-point
Digital acceleration focusing all efforts on
breaking new ground or quickly expanding
into new space created by a new category.
An exceptional front-end strategy must be
supported by an exceptional back office,
requiring new expertise, processes and
systems, and potentially a new operating
model
Digital at the Core
Integrated Front & Back Office
Digital Experiences
Engaged Customers & Employees
Digital Transformation
Business Reimagined

21. SHIFTING
MARKET
Extended Ecosystems
Exploitation
Competitor “First-
Mover” Advantage
Customer Experience
Expectations
Globalization
CHANGING
TECHNOLOGY
Information Technology: Digital, Cloud, Analytics,
Core Modernization, IT Delivery Model Transformation
Science and Exponentials: Artificial Intelligence,
Robotics, Bots, Synthetic Biology, Additive
Manufacturing, Nanotech, Quantum Computing
Cyber Attacks/
Security Threats
Macro-economic
Tides
Risk & Regulatory
Requirements
RISKS &
REGULATIONS
YOU INC.
THE MARKETPLACE
THE WORLD
Copyright © 2016 Deloitte Development LLC. All rights reserved.

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IT transformation
Procurement and sourcing
Finance management
PROCESS
Vendor and contract
management
Solution shaping
Stakeholder communications
and expectation management
DevOps
Leadership
Talent
Mindset/culture
ORGANIZATION
Organization structure
Incentives
Master data integration
Building to run
Design as a discipline
ARCHITECTURE
Micro-services

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Five forces
ECOSYSTEMS
Digital transformation
requiring dynamic
configuration of
products, offerings,
and services across
organizational
boundaries
DESIGN
Shift from vertical
and process focus to
individual outcomes
and capabilities
API ECONOMY
Business services
requiring modernizing
underlying interfaces
and next-gen
orchestration layer
RISK
Security, privacy,
regulatory, compliance,
safety, quality, ethics,
and morality

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The challenges facing DIGITAL today are ubiquitous
*DU Press 2015 CIO Survey
*DU Press 2015 CIO Survey
http://www.forbes.com/sites/gilpre
ss/2015/11/10/transform-or-die-
idcs-top-technology-predictions-for-
2016/#743852ea7cec*DU Press 2015 CIO Survey

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Overcoming digital challenges
Businesses are under increasing pressure to deliver more—better, faster, and cheaper.
The role of digital should evolve from providing customer support to enabling
customer experience and business growth.
• Siloed organizational structures
• Underinvestment in IT
modernization
• Complicated legacy systems
• Business and IT agility
• Data – master data, content,
and context
• IT talent gap
COMMON CHALLENGES
DIGITAL
ORGANIZATION
OF THE
FUTURE
Responsive
& Intuitive
Infrastructure
Business
Empowerment
Champion
Aggressive
Capability
Enhancement
Value Delivery
in Days &
Weeks
Amplified
Solution
Delivery
Enabler Of
New Digital
Disruptions

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DESIGN
BUILD
RUN
IT OPERATING MODEL
DATA
APPLICATIONS
INFRASTRUCTURE
STRATEGY
BUSINESS
CASE
BENCH-
MARK
ROADMAP
ADMINNOVATION
FOUNDRY
REPLATFORM
REMEDIATE
NEXT-GEN
PLATFORMS
USER
EXPERIENCE
ARCHITECTURE
INTEGRATION
IT OPERATING MODEL
• IT org design/strategy
• DevOps/Agile transformation
• Agile transformation
DATA
• Data management strategy/implementation
• Core analytics transformation
• Analytics COE
APPLICATIONS
• App/Code Refactoring
• SAP S/4HANA
• Oracle ERP Cloud
• Hybrid Strategy
INFRASTRUCTURE
• Cloud strategy/migration
• Data center modernization
• Infrastructure ops
modernization
DIGITALEXPERIENCETRANSFORMATION
O&M
IT modernization stack

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Approaches to core modernization
Replatform Remediate Revitalize Replace Retrench

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Introduce differentiation that
turns IT into an enabler,
rather than simply a cost
center. Getting the right
governance and process in
place is key.
Business
Product
Product
enabling
technology
Maturity
Time
Traditional IT
Business
Product
Two-speed IT
Business
Product
Right-Speed IT
Communication and
collaboration models change as
the IT operating model evolves.
Transforming your IT org and delivery speed
IT delivery now needs to
occur at varying speeds,
with very different change
cycles: what we define as
a Right-Speed operating
environment
Foundational
IT
Digital IT
Enterprise
IT
Right-Speed
Tech Functions
INTERACTIONS
CHANGE CYCLES & PROCESS

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2 Create agile
execution
Learn to develop and try
ideas in short iterative
sprints with empowered
teams. Treat digital
initiatives like R&D.
1 Think
exponentially
Set bold goals to achieve
factors of 10X impact.
Defeat incrementalism
within your organization.
Allow failure.
3 Shift the
culture
Acquire and hire edge
teams to bring design
thinking, mobile, digital,
creative, and disruptive
ideas.
4 Protect
the people
Insulate digital teams from
layers of bureaucracy,
policies, or other
compromises not found in
a start-up culture.
6 Find new
ideas
Look for new ideas to solve
old industry issues and
customer problems. Don’t
be limited by the status
quo.
5 Put the
customer first
Focus on the customer
experience. Make customer
value and delighting the
customer the #1 priority.
7 Use design
thinking
Design is the new
differentiator in digital.
Diverse teams led by design
thinking will create an
amazing impact.
8 Focus on
value
Don’t get distracted by all
the digital shiny objects.
Focus on revenue, key
metrics, and follow the
money.
Shift the mindset: eight great traits of a digital business

30. What we are learning from
some leading enterprises

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IT’s absolute imperative to change
DemandsonIT
Time
Today
IT delivery capacity

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Enabling IT to support business transformation
DemandsonIT
Time
Today
IT delivery capacity

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Define some organizational paradigms

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Define some organizational paradigms
reuse of access
reuse of services

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build connections as
needed
reuse of services
reuse of access
Define some organizational paradigms

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build connections as
needed
Define simple abstractions
reuse of services
reuse of access
Define some organizational paradigms

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build connections as
needed
Define simple abstractions
reuse of services
reuse of access
complexity should go down,
not up
Define some organizational paradigms

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The application network
A seamless network of
applications that…
… is organized around focused,
well-defined units of value
… is recomposable
… emerges bottoms-up
via self-service
… where visibility, security and
govern-ability are built in
… bends, not breaks
… where each node adds value
to the whole network

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Enabling a new IT operating model
Production
Agile Development, SDLC,
DevOps, Microservices, APIs
publish
reusable
assets
Central IT or LoB IT
Consumption
Community enablement,
asset discovery, self-service
feedback
and
metrics
LoB IT, SIs, App Dev

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Every role in the business transforms
IT delivering projects → directing projects, ensure quality, reusability, security
architects architecting every project→ shaping patterns across projects
line of
business
requesting projects → self-serving and moving fast to deliver
systems
experts
needed for every project → make core data available once, self-service

41. Q and A

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A partnership enabling truly transformative outcomes
42
Connecting business to possibility
.
Contact us to learn more >

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