Why did we hear so much about “Digital Transformation” in 2016, and frankly what does it mean? While it's easy to dismiss the phrase with an eye-roll, there's no better phrase to represent improving how IT is used to help drive business innovation...and the huge changes organizations must go through to be successful. This webinar with Nick Patience, Research Vice President for 451 Research's software team, and Michael Coté of Pivotal will discuss a pragmatic definition and approach to Digital Transformation as seen through the experiences of organizations who've lived through it.
Digital Transformation is about fundamentally rebuilding business and IT processes, not just about building apps. 451 Research defines Digital Transformation as “a result of IT innovation that is aligned with and driven by a well-planned business strategy, with the goal of transforming how organizations serve customers, employees and partners.” Some main features of a successful transformation include the ability to quickly react to market demands, and use information to make better decisions and serve constituents more effectively.
In this webinar Nick Patience of 451 Research and Pivotal’s Michael Cote will discuss:
- Why now is the time for Digital Transformation
- How the balance of power between customer and provider contributes to this new revolution
- Shifting priorities that require new practices and processes and the technical tools and platforms that support them
- Real-world examples of organizations that have been there (we’ll share all the gorey details, including what worked and didn't work for them)
View the webinar here: https://www.brighttalk.com/webcast/14891/242781
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Understand the What, Why & How of Digital Transformation Featuring 451 Research
1. transparency
Understand the What, Why & How of
Digital Transformation Featuring 451
Research
Nick Patience, Founder & Research Vice President, 451 Research
Michael Cote, Director of Technical Marketing, Pivotal
3. 3
Founded in 2000, The 451 Group is a Global IT Research & Advisory
451 Research - Uptime Institute
350+ employees, including 120+ analysts, doing business in 70+ countries
2,000+ clients: Technology & Service providers, IT decision makers,
corporate advisory, finance and professional services
50,000+ IT professionals, business users and consumers in our research
community including 30,000+ Global Digital Infrastructure Alliance
Over 52 million data points published each quarter and 4,500+ reports
published each year covering 3,000+ technology & service providers
Owner of the Uptime Institute Tier Standard for Datacenter Certification
Headquartered in New York, offices in London, Boston, San Francisco,
Washington DC, Mexico, Costa Rica, Brazil, Spain, UAE, Russia, Taiwan,
Singapore and Malaysia
Research & Data
Advisory
Events
Standards &
Certifications
4. Agenda
• Business imperatives for digital transformation
• Information transformation
• Process transformation
• Platform transformation
• Examples
5. 451 Definition
The result of IT innovation that is aligned with and
driven by a well-planned business strategy with the goal
of transforming how organizations:
• serve customers, employees and partners
• support continuous improvement in business
operations
• disrupt existing businesses and markets
• invent new businesses and business models
5
6. 17%
20%
33%
29%
1%
We currently have no digital transformation strategy
We are considering it, but have no formal plans
We are in the planning stage - researching to form our
digital transformation strategy
We have a formal strategy and are actively digitizing our
business processes and technologies
Don't Know
Which of the following best describes your organization’s status with regards to a Digital Transformation effort?
Nearly 1/3 have a formal digital transformation strategy
Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital
Transformation survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
7. 27
%
39% Mobile
Top Drivers
Location-Based Technologies
34
%
44% Innovation
Financial Services44%
60%
29
%
41%
39%
No
Strategy
Formal
Strategy
We have a formal strategy
and are actively digitizing
our business processes
and technologies
We currently have no
digital transformation
strategy
Healthcare
63% Over 500 EmployeesUnder 500 Employees
Top Industry
Company Size
Managing Data GrowthManaging Risk of Social Networks
Top Pain
Point
Top Drivers
Innovation
Top
Transformational
Technology
Digital Transformation Comparisons
9. Intelligence – because those that own the data will win
“We don’t have better algorithms.
We just have more data.”
- Peter Norvig, Director of Research at Google
9
19. Machine Learning
19
• Going digital means vast increase
in data
• Impossible to handle manually
• Algorithms improve with more data
– virtuous circle
• Machine learning is force multiplier
30. IT as a Differentiator
Hybrid Cloud
Scale-out/Distributed Apps
Mobile Endpoints + ‘Things’
Petabytes and Exabytes
API-based management
Old Style of IT
IT as a Cost Center
On-Premises IT
Scale-up client-server Apps
PC Endpoints
Terabytes and Petabytes
Proprietary protocols
New Style of IT
Converged InfrastructureServer, Network, Storage Silos
IT priorities are changing
31. IT Departments Shift Toward Agility & Risk vs Penny-
Pinching
31
Source: 451/Microsoft Cloud and Hosting Study 2016. n=1734, 11 countries
32. Everyone’s becoming a software company…
32
But we don’t all realize it yet.
0
5
10
15
20
25
30
35
40
45
50
Early adopter Pragmatic Conservative Skeptical
Percentage
Technology adoption stance
4Q14 (n=706) 1Q15 (n=1050) 2Q15 (n=975) 3Q15 (n=935) 4Q15 (n=1057) 1Q16 (n=749) 3Q16 (n=806) 4Q16 (n=613)
Source: 451 Research, Voice of the Enterprise: Cloud Transformation
4Q14: 9.5%
4Q16: 17.0%
33. Innovation Top Digital Transformation Driver
33
22% 21%
34% 28% 24%
12%
27% 31%
44%
39%
37%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customer
responsiveness
Increasing competitive
differentiation
Enhancing our ability to
innovate and develop
new products and
services
Security Initiatives Transforming business
processes to improve
operational efficiencies
Enabling more mobile/
remote working
We have a formal strategy and are actively digitizing our business processes and technologies
We currently have no digital transformation strategy
In your opinion, which of the following activities are the biggest drivers for your
organization's IT and Business Application investments over the next 12 months?
40. 17%
21% 20%
10%
16%
20%
14%
26%
23% 23%
12%
24%
14%
16%
36%
32%
27%
48%
28% 29%
27%
21%
24%
28% 29%
33%
35%
41%
0%
10%
20%
30%
40%
50%
60%
Professional Servies Pharmaceutical/
Healthcare
Other Manufacturing Retail Telco, Media and Utilities Financial Services
We currently have no digital transformation strategy
We are considering it, but have no formal plans
We are in the planning stage - researching to form our digital transformation strategy
We have a formal strategy and are actively digitizing our business processes and technologies
Financial Services, Telco and Retail Lead Digital
Transformation
Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation
survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
41. 21%
24%
20%
27%
14%
16%
29% 28%
15%
8%
21%
12%
28%
23%
27%
41%
28%
37%
35%
41%
17%
19%
9%
23%
16%
CONSUMER RETAIL
PRODUCTS & SERVICES
MANUFACTURING EQUIPMENT
& SERVICES
FINANCIAL SERVICES TELECOMMUNICATIONS -
CARRIER/ISP
HEALTHCARE
Integrating business apps across silos and processes
Adapting legacy business apps that are not flexible or customizable
Mobilizing business applications
Managing data growth
Eliminating data silos
Pain Points Vary by Vertical
Source: 451’s 2H 2016 Voice of the Connected User Landscape: Corporate Mobility and Digital Transformation
survey, conducted during August 2016. n= >500 IT and line-of-business decision-makers
48. 48
In order to grow Citi, we first have to grow our own
perspective, skills and capabilities… Our curiosity, our
openness to learning and trying new things, our ability
to adjust and adapt quickly and our willingness to fail
fast and fail small are the essence of a culture that
innovates and exposes new value to our clients in real
time.
Stephen Bird, CEO Citi Global Consumer Group
Source: “A Transformation Journey,” Brad Miller, 2016.
49. Use small batch thinking, at all levels
49
Inception
Hypothesize
Validate w/
real use(r)s
Did it work?
Sources: “Good Software is a Series of Little Failures,” Coté, April 2016; The Lean Startup, Eric Ries, 2011. The Lean Enterprise, Barry
O'Reilly, Jez Humble, and Joanne Molesky. See also overview of this approach at the IRS from Dec 2015. "Application Modernization,
Service By Microservice," Kurt Bittner and Randy Heffner, Forrester, Dec 2015; "Best Practices For Agile-Plus- Architecture," Randy
Heffner, Forrester February, 2015.
“We did an analysis of
hundreds of projects over a
multiyear period. The ones
that delivered in less than a
quarter succeeded about
80% of the time, while the
ones that lasted more than a
year failed at about the same
rate. We’re simply not very
good at large efforts.”
Large financial institution
50. Increasing paint and tools rental revenue
Source: story from interviews, picture from Wikipedia.50
51. How much do I owe the IRS?
Source: "Minimum Viable Taxes: Lessons learned building an MVP inside the IRS,” Andrea Schneider & Lauren Gilchrist, 2015.
Βεφορε Αφτερ
51
52. Agile practices and collaboration for
product and culture transformation
• World class application
development services
• Proven transformational
methodology
Big Data & Analytics
Modern, open, highly
parallelized platform
• Big data, in-memory, and
database software
• Industries most complete big
data analytics offering
Cloud Native Platform
Modern, open, highly
automated cloud platform
• Platform-as-a-Service (PaaS)
software with multi-cloud support
• Record-breaking sales growth
and adoption
Agile Product Development
53. Pivotal Cloud Foundry, layers & capabilities
53
Application Framework
Runtime Platform
Infrastructure Automation
Infrastructure
Dev
Dev
Ops
BOSH
Contract: 12 factor app
Contract: BOSH Release
Contract: Cloud Provider Interface
IT Ops
Culture Cloud Native Framework Tools
Go
Source: “Get Started on Pivotal's Cloud Foundry Stack,” Coté/The New Stack, Jan 2016.
54. Pivotal Labs & Pivotal Cloud Foundry
Worldwide, cross industry adoption
54
And
many
more...
55. Engage with my brand!
55
• Learn more about Pivotal: http://pivotal.io
• My chapbook on transforming to cloud native: http://cote.io/cloud2
• Talk further: @cote or cote@pivotal.io
• SpringOne Platform 2017: Dec 4th to 7th, San Francisco