Three Critical Mistakes IT Makes When Accelerating Innovation…

And How to Counteract Them

Heman SmithIT Transformation StrategistAccelerate Advisory Services

26 October 2016

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“My business and its IT organization are being engulfed by a torrent of digital opportunities. We cannot respond in a timely fashion, and this threatens the success of the business and the credibility of the IT organization.”

Worldwide CIO Survey Gartner

54% of IT Professionals Project Rapid Growth in Cloud Services Over the Next 2 Years

3Source: Economist Intelligence Research, August 2016

37%of lines of business are setting up their own cloud networks

40%

are building their own apps

62%are increasingly

purchasing SaaS solutions

Why IT Initiatives Fail:

81%Deliver less than expected /

promised

•7% is Technology

•26% is Process

•67% is People

DigitalEnterprise

Business Partner

Infrastructure Provider

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“ Consolidate, virtualize, outsource resources to cloud “

“ Provide on-demand business aligned applications and

services with quality, reducing costs and increasing agility.”

“ IT and business convergence for

generating demand and increasing

growth. Developing and delivering digital

business models “

Business Relationship

Ope

ratin

g M

odel

Mat

urity

IT Value Model

Future-Proof Your Cloud

Application Agility

Mobilize Everything

Ope

ratin

g M

odel

Mat

urity

Business Relationship

DigitalEnterprise

Business Partner

Infrastructure Provider

IT Value Model – Characteristics

INTERNAL OR VMWARE AUTHORIZED 7

Months to Days On Demand Any Platform

Automated Infrastructure

Automated Services

Automated Business

Reducing CapEx Maximizing Efficiency

Generating Revenue

The Three Critical Mistakes

Technology 1st,

Outcomes 2nd

CONFIDENTIAL 8

#1

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Stephen R. Covey

Clarity is Critical:

“Over 90% of all conflict is due to a lack of clarity”

Ann Latham – Uncommon Clarity

Wasted Talent, Time & Money… Successful Delivery Capability

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Before:

• $10M hardware

• $2M Services

• 3 Weeks time to “production” VM

After:

• No additional hardware

• $500K services

• < 24 Hours “production” VM via service portal

The Three Critical Mistakes

Technology 1st, Outcomes

2nd

Technology 1st, People 2nd

CONFIDENTIAL 12

#2

The Dilemma:“Here is the uncomfortable truth: Humans run to a much slower clock than our inventions. …we are the ‘gating factor’.

However, it is people, not processes or technologies, that determine how well an organization adapts to change.”

Creative Teams Need Diversity… and Method

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Adopt a “Brain Trust” Method

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• Shadow IT• Agile• Innovative

• Tension/Mistrust

• Conflict

• Resolution:• The

Innovation Accelerator Council

The Three Critical Mistakes

Technology 1st, Outcomes 2nd

Technology 1st, People 2nd

Technology 1st, Operations 2nd

CONFIDENTIAL 18

#3

DigitalEnterprise

Business Partner

Infrastructure Provider

IT Value Model – Solution Sets and Themes

Private Cloud- IT Portal- Automated

Provisioning- Business Continuity- Showback

Hybrid Cloud- Cloud bursting- DRaaS

XaaS- Service Lifecycle

extensibility - App Centric Network

and Security

Third Platform- Multi-Cloud- Cloud Native Apps- Big data driven- Agile Focused- Policy driven- Continuous Service

Improvement

DevOps- Micro-service

Architecture- Enhanced Network

Security- Continuous Delivery

Digital Convergence- New business models- Continuous customer

engagement- Digital engagement

IaaS- Service Lifecycle Mgmt- Service Catalog- Org and Process

Transformation- Chargeback

Security

Virtual Infrastructure- Virtualize across

Compute, Storage & Network Assets

- Performance and Capacity

BusinessOutcome IT Capability

IT ProblemBusiness Problem

The Master Key:

Become a high-speed problem solver

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The Critical Balance

Innovate Optimize

EFFICIENTLY & EFFECTIVELY:

• Deliver the RIGHT RESULT • At the RIGHT TIME• In the RIGHT WAY • At the RIGHT COST

• Secure, Supportable, Scalable, Maneuverable

IT’s Optimization Goal:

Creatively & Surprisingly:

• Deliver MORE than is expected• BEFORE it is needed• In a WAY that changes value• To ACCELERATE the business’ results

• LEAD, don’t LAG

IT’s Innovation Goal:

A Strategic Shift for VMware

VMware Heritage vs. Future

Transforming Data Centers Control Plane for a Multi-Cloud World

SaaSPrivate Cloud

Our FutureOur Heritage

Questions?

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Heman SmithIT Transformation StrategistAccelerate Advisory Services

Thank You