Future of the it department 17 may 2012 mt

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Presentation looking at future skills needed in the IT department if everything is outsourced to the cloud. Includes insights from IBM's CEO and CIO studies. The Future of the IT department whitepaper goes into details and models. Cloud Circle video featuring Mark Tomlinson walks you through presentation if needed.

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Future of the it department 17 may 2012 mt

  1. 1. Examining the powerful transformational roleCloud plays in Business, IT & our daily livesMark TomlinsonExecutive IT Specialist, IBM UK & IrelandCloud Solutions for Financial Services © 2012 IBM Corporation
  2. 2. Many of the most pressing technological factors are placing greaterdemands on IT organisations Mobile Global Smartphone shipments have outpaced PC shipments since Q4 2011 1 Data explosion New kinds of interactions 2.5 quintillion bytes of data If Facebook were a country,created every day. 90% of the it would have the third-largest world’s data created in the population on Earth 2 past two years 5 More than 5 billion devices connected to the Internet today 6 Sprawling hardware Security threats There are nearly 33 million Between January and May 2012, servers worldwide—15% of the Identity Theft Resource which run 24/7 without active Center tracked 160 data breaches daily use 4 exposing 11.5 million records 3 Sources: 1. Canalys smartphone shipment estimates, Feburary 2012. 2. Facebook IPO filing, April 2012. 3. Identity Theft Resource Center breaches report, May 2012. 2 4. The Green Grid Unused servers survey. 5. IBM analysis, April 2012. 6. IMS Research analysis, August 2010 © 2012 IBM Corporation
  3. 3. CEOs and CIOs are almost identically aligned in their perception ofthe challenges ahead Expectation of complexity and change in the coming 3 to 5 years 2010 CEO Study 2011 CIO Study More More 13 % 55 % 10 % 57 % Change Change 8 % 24 % 7 % 26 % Less Less Less More Less More Complexity ComplexitySource: IBM CEO study 2010, based on face-to-face conversations with 1500 CEOs / CIO study 2011, based on face-to-face conversations with over 3,000 CIOs3 © 2012 IBM Corporation
  4. 4. However many traditional projects deploy either behind schedule,over budget, or both “Did the project deploy on budget?” “Did the solution project you are reporting on deploy on schedule?” Base: 510 Global IT ProfessionalsSource: A commissioned study conducted by Forrester Consulting on behalf of IBM, October-December, 20114 © 2012 IBM Corporation
  5. 5. The most successful CIOs will be those who understand anddeliver on four mandates, aligned with their organisation’s strategy Expand mandate Leverage mandate Refine business processes and Streamline operations and enhance collaboration increase organisational effectiveness  Outsource to focus on differentiators  Standardise infrastructure & processes  Communicate & collaborate internally  Control legacy costs  Focus on business process management  Implement collaboration tools  Review and update legacy environment  Conservative introduction of technology 47% for UKI respondents, 50% of global respondents 18% for UKI respondents, 14% of global respondents Transform mandate Pioneer mandate Change the industry value chain Radically innovate products, markets, through improved relationships business models  Use “Big Data” and real-time info  Pilot technology for social value  Simplify for clients/partners  Explore new sources of revenue  Enhance and expand the value chain  Enhance customer experience  Use risk management frameworks  Pursue non-stop growth 20% of UKI respondents, 23% of global respondents 15% of UKI respondents, 13% of global respondentsSource: 2011 IBM CIO Study, Questions D1 to D4: “How does your business look at the role of IT?” (n=3,018, 133 in UKI): IBV Analysis5 © 2012 IBM Corporation
  6. 6. CIO visionary plans are evolving: business intelligence and analyticsremain at the top, with cloud computing moving into the top four Most important 3 to 5 year visionary plan elements (Interviewed CIOs could select as many as they wanted) 83% Business Intelligence and analytics 85% 82% 74% Mobility solutions 75% NA 68% Virtualisation 72% 86% 60% Cloud computing 65% 51% 55% Collaboration and Social Networking 64% 64% 57% Self-service portals 63% 81% 60% Business process management 60% NA 58% Risk management and compliance 60% 77% Global sample UKI 2011 UKI 2009Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5 years?”; Global sample, n=3,018; UK/Ireland, n=1136 © 2012 IBM Corporation
  7. 7. The most forward-thinking companies also see cloud as a forcethat will impact their business models Expect significant increase in change resulting from cloud 13% 41% Expect to reinvent their customer value propositions with cloud 10% 29% Expect to create / transform value chain through cloud Today 16% 2015 43% Shift focus to driving substantial impact on customer relationships 14% 57% *Source: 2012 IBM Institute for Business Value / The Economist study “The power of cloud – driving business model innovation”7 © 2012 IBM Corporation
  8. 8. IBM UK’s 2012 “The Future of the IT Department” white paper Addresses two common questions by exploring the impact of Cloud on IT roles and responsibilities in the next 3-5 years: “Will cloud computing replace my IT department?” “What roles should I be recruiting for as we move our IT to cloud computing?” The paper investigates a scenario where an enterprise has chosen to move the delivery of all IT services to cloud providers.8 © 2012 IBM Corporation
  9. 9. Introducing IBM’s Component Business Model for the Business of IT Service and Service and IT Customer IT Business IT Business Business Service Delivery Information Solution Solution Relationship Strategy Administration Resilience and Support Development Deployment Business Technology and Customer Governance Business Risk and Strategy Service Delivery Business Compliance Strategy Intelligence Strategy Portfolio ManagementDirect Information Development Deployment Strategy IT Business Model Strategy Strategy Strategy Enterprise Customer Architecture Business Transformation Service Support Resilience Needs Service Strategy Strategy Identification Management Strategy Market Planning Financial Control Business Risk and IT Management Service and Service Delivery and and Accounting Compliance Service and System Control Information Solution Control Communications Control Solution Lifecycle Architecture Implementation Site and Facility Planning Customer Continuous PlanningControl Administration Infrastructure Transformation Portfolio Value Business Resource Consulting and Management Human Resource Operations Planning Guidance Planning and Planning Administration Information Service and Change Service Demand Security, Privacy Lifecycle Planning Solution Deployment Technology Sourcing and Control Architecture Control Service Support and Performance and Data Innovation Relationships and Planning Planning Protection Selection Business Procurement and Service and Service Delivery Service and Project Compliance Technology Contracts Solution Creation Operations Solution Selling Management Analysis Implementation and TestingExecute Business Infrastructure Vendor Service Information Resilience Resource Coordination Content Operations Service and Administration Service Knowledge Customer User Identity and Solution Service and Performance Service Support Management Contracts and Access Maintenance and Solution Rollout 9 Analysis © 2012 IBM Corporation Operations Pricing Processing Testing
  10. 10. Our model is grouped into a number of competencies Service and Service and IT Customer IT Business IT Business Business Service Delivery Information Solution Solution Relationship Strategy Administration Resilience and Support Development Deployment Business Technology and Customer Governance Business Risk and Strategy Service Delivery Business Compliance Strategy Intelligence Strategy Portfolio ManagementDirect Information Development Deployment Strategy IT Business Model Strategy Strategy Strategy Enterprise Customer Architecture Business Transformation Service Support Resilience Needs Service Strategy Strategy Identification Management Strategy Market Planning Financial Control Business Risk and and IT Management and Accounting Compliance Build andand Service and Service Service Delivery Communications Plan and manage System Control Control Information Architecture Solution Solution Lifecycle Implementation Run Control Customer Site and Facility Continuous Transition Planning PlanningControl Administration Infrastructure Transformation Portfolio Value Business Resource Consulting and Management Human Resource Operations Planning Guidance Planning and Planning Administration Information Service and Change Service Demand Security, Privacy Lifecycle Planning Solution Deployment Technology Sourcing and Control Architecture Control Service Support and Performance and Data Innovation Relationships and Planning Planning Protection Selection Business Procurement and Service and Service Delivery Service and Project Compliance Technology Contracts Solution Creation Operations Solution Selling Management Analysis Implementation and TestingExecute Business Infrastructure Vendor Service Information Resilience Resource Coordination Content Operations Service and Administration Service Knowledge Customer User Identity and Solution Service and Performance Service Support Management Contracts and Access Maintenance and Solution Rollout 10 Analysis © 2012 IBM Corporation Operations Pricing Processing Testing
  11. 11. And a number of aspects Service and Service and IT Customer IT Business IT Business Business Service Delivery Information Solution Solution Relationship Strategy Administration Resilience and Support Development Deployment Business Technology and Customer Governance Business Risk and Strategy Service Delivery Business Compliance Strategy Intelligence Strategy Portfolio ManagementDirect Strategy Strategic Direction IT Business Model Information Strategy Development Strategy Deployment Strategy Enterprise Customer Architecture Business Transformation Service Support Resilience Needs Service Strategy Strategy Identification Management Strategy Market Planning Financial Control Business Risk and IT Management Service and Service Delivery and and Accounting Compliance Service and System Control Information Solution Control Communications Control Solution Lifecycle Architecture Implementation Site and Facility Planning Customer Continuous PlanningControl Administration Infrastructure Transformation Portfolio Value Business Consulting and Management Human Resource Control Operations Resource Planning Guidance Planning and Planning Administration Information Service and Change Service Demand Security, Privacy Lifecycle Planning Solution Deployment Technology Sourcing and Control Architecture Control Service Support and Performance and Data Innovation Relationships and Planning Planning Protection Selection Business Procurement and Service and Service Delivery Service and Project Compliance Technology Contracts Solution Creation Operations Solution Selling Management Analysis Implementation and TestingExecute Business Infrastructure Vendor Service Information Resilience Resource Service Coordination Execution Operations Content Service and Administration Knowledge Customer User Identity and Solution Service and Performance Service Support Management Contracts and Access Maintenance and Solution Rollout 11 Analysis © 2012 IBM Corporation Operations Pricing Processing Testing
  12. 12. Increased Scope unchanged Scope reduced No longer needed importance The model “after Cloud” Service and Service and IT Customer IT Business IT Business Business Service Delivery Information Solution Solution Relationship Strategy Administration Resilience and Support Development Deployment Business Technology and Customer Governance Business Risk and Strategy Service Delivery Business Compliance Strategy Intelligence Strategy Portfolio ManagementDirect Information Development Deployment Strategy IT Business Model Strategy Strategy Strategy Enterprise Customer Architecture Business Transformation Service Support Resilience Needs Service Strategy Strategy Identification Management Strategy Market Planning Financial Control Business Risk and IT Management Service and Service Delivery and and Accounting Compliance Service and System Control Information Solution Control Communications Control Solution Lifecycle Architecture Implementation Site and Facility Planning Customer Continuous PlanningControl Administration Infrastructure Transformation Portfolio Value Business Resource Consulting and Management Human Resource Operations Planning Guidance Planning and Planning Administration Information Service and Change Service Demand Security, Privacy Lifecycle Planning Solution Deployment Technology Sourcing and Control Architecture Control Service Support and Performance and Data Innovation Relationships and Planning Planning Protection Selection Business Procurement and Service and Service Delivery Service and Project Compliance Technology Contracts Solution Creation Operations Solution Selling Management Analysis Implementation and TestingExecute Business Infrastructure Vendor Service Information Resilience Resource Coordination Content Operations Service and Administration Service Knowledge Customer User Identity and Solution Service and Performance Service Support Management Contracts and Access Maintenance and Solution Rollout 12 Analysis © 2012 IBM Corporation Operations Pricing Processing Testing
  13. 13. Summary of findings 1. The majority of current job roles remain, albeit many with much reduced scope or importance 2. Fewer strategic roles are impacted than tactical or operational ones 3. Build and Run are the main ‘casualties’ as organisations source services from cloud providers 4. Planning & commercial skills are key and become more so; linking the IT department more closely to the business “Traditionally we’d have needed 40 people to run this infrastructure. Cloud takes “Traditionally we’d have needed 40 people to run this infrastructure. Cloud takes this down to three.” this down to three.” - -IT Director, Global Service Provider IT Director, Global Service Provider13 © 2012 IBM Corporation
  14. 14. Increased Scope unchanged Scope reduced No longer needed importance IT Business Strategy Cloud impact on IT Business Strategy Business Technology and Governance Maps between cloud provider capabilities and the business to Strategy optimise and innovate Portfolio ManagementDirect Strategy Still required to analyse investments and ascertain value. Particularly important to determine how to get strategic Service Management Strategy advantage from standard services Enterprise Architecture Significantly simplified IT Management System Control Though it will retain some budgetary control, much of its oversight, coordination and reporting responsibilities are betterControl Portfolio Value done elsewhere Management Primarily within the remit of the cloud provider Technology Innovation Project Management Survives the move to cloudExecute Knowledge Best practices and experiences will still need to be tracked Management 14 © 2012 IBM Corporation
  15. 15. Increased Scope unchanged Scope reduced No longer needed importance IT Business Administration Cloud impact on IT Business Administration Defines the overall business and operational framework for the IT function. Many of the activities are no longer requiredDirect IT Business Model Will continue to establish and manage all financial aspects of IT function operations Financial Control and Accounting No longer required Site and FacilityControl Administration Still required, but number of people supported reduced HR Planning and Administration Sourcing Relationships Critical initiation and management of relationships with providers and Selection in line with the overall service delivery and sourcing strategies Procurement and Contracts Increasingly important to manage the complex relationshipsExecute Vendor Service between the enterprise and cloud provider Coordination Customer Contracts Important allocation of cloud costs to internal budgets as well as and Pricing providing a single bill for services from multiple cloud providers 15 © 2012 IBM Corporation
  16. 16. Increased Scope unchanged Scope reduced No longer needed importance Service Delivery and Support Cloud impact on Service Delivery & Support Likely to remain in-house, although it can be argued that once Service Delivery the strategic decision has been made to solely source from Strategy cloud, that this becomes largely redundantDirect Service Support Strategy No longer required. Responsibility moves to cloud provider Service Delivery Control Capacity planning functions are likely to find themselvesControl Infrastructure Resource Planning subsumed into the Customer Contracts and Pricing component that deals with financial planning Service Support Planning Service Delivery No longer required. Responsibility moves to cloud provider OperationsExecute Infrastructure Resource Administration Help desk and desk-side support services remain essential Service Support activities, but support beyond the initial level 1 will be offered by Operations the cloud provider 16 © 2012 IBM Corporation
  17. 17. Further observations The fundamental challenge for most organisations revolves around standardised vs. bespoke services Governance remains a critical capability, particularly around maintaining control over SaaS adoption Integration remains a challenge, but there is likely to be an opportunity to also source this as a service in the future Relationships with partners and service providers in all guises will become increasingly important17 © 2012 IBM Corporation
  18. 18. Mind the (skills) gap  With many of the traditional junior roles in development and operations moving outside the enterprise, it is hard to ascertain how candidates for these new strategy and coordination roles will gain the experience they need  These junior roles will still reside within the service providers, but may be much fewer in number and more likely to be offshore  Academia has an important part to play in ensuring that graduates are equipped with the right skills  Carefully consider your future resourcing and retention plan18 © 2012 IBM Corporation
  19. 19. For those considering private cloud adoption The adoption of Expert Integrated / converged / engineered systems is on the increase These systems provide integrated management for compute, storage, networking and middleware We see many clients trying to force-fit these into their existing organisational design Changes to traditional IT silos, processes and handoffs is necessary to fully capitalise on the benefits these new systems bring19 © 2012 IBM Corporation
  20. 20. Cloud and the transformation of business, IT and our daily lives Mobile Data New kinds explosion of interactions Security Sprawling threats hardware20 © 2012 IBM Corporation
  21. 21. 2012 IBM Global CEO Study available 22 May 201221 http://www.ibm.com/services/uk/en/ceostudy.html © 2012 IBM Corporation
  22. 22. ibm.com/smartcloud22 © 2012 IBM Corporation

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