Defrag Keynote on CoIT - November 10th, 2011

CoITHow the Rampant Consumerization of IT is Reshaping Business

Dion Hinchcliffe (@dhinchcliffe)

Inspired By: The ‘Big Five’ IT Trends of the Next Decade | ZDNet

Keynote onNovember 10th, 2011

http://www.zdnet.com/blog/hinchcliffe/the-big-five-it-trends-of-the-next-half-decade-mobile-social-cloud-consumerization-and-big-data/1811

http://www.zdnet.com/blog/hinchcliffe/the-big-five-it-trends-of-the-next-half-decade-mobile-social-cloud-consumerization-and-big-data/1811

® 2010 Dachis Group 2

Introduction

Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0

• http://blogs.zdnet.com/Hinchcliffe

• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise

• EVP of Strategy• http://dachisgroup.com

• mailto:[email protected]

• : @dhinchcliffe

Spring 2012

http://blogs.zdnet.com/Hinchcliffe

http://blogs.zdnet.com/Hinchcliffe

http://www.ebizq.net/blogs/enterprise

http://www.ebizq.net/blogs/enterprise

http://hinchcliffeandco.com/

http://hinchcliffeandco.com/

mailto:[email protected]

mailto:[email protected]

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

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The good news: Technology and productivity

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But is this coming from IT?

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Is IT even leading innovation?

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Yet 60% of CIOs believe they should be driving growth and productivity.

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Source: Deloitte Survey, 2011


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But technology change is happening faster than ever before

• A tsunami of new mobile devices and technologies• A vast wave of social media• The rumbles of cloud computing and SaaS• The shift to DIY• A flood of Big Data

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A perfect storm of technology change

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Happening almost all at once

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Key data point #1: Mobile

• Smart mobile devices outshipped PCs in early 2011

• Tablets are expected to on par with PCs by 2015

• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs

• Global mobile data going geometric is going to be the largest challenge to growth and use

• App stores are creating all new conduits between IT suppliers and workers

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Mobile Internet Ramping Up Faster Than Desktop Internet by 5x

Source: Mary Meeker, Morgan Stanley


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Key data point #2

• Social is now the dominant form of Internet communication on the planet

• Enterprises are 2-4 years behind the rest of the world.

• Yet data shows that revenue of social businesses is 24% higher on average. Profitability is better too.

- Source: McKinsey and Frost & Sullivan

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The Adoption Rates of E-mail, Social Networks, and E2.0

20112006

1B

750M

500M

250M

2007 2008 2009 2010

Sources:

Glo

bal U

sers

projected

ConsumerSocialNetworks

E-mail

100%

75%

50%

25%

Enterprise 2.0

comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC

high estimate

low estimate

Per

cent

of

Ent

erpr

ises


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Hundreds of public social networks...

13...channel fragmentation


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The Cloud Is Increasingly Subversive

• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people

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So Workers Have Moved...

• Mobile • Social• New Digital Channels

And Companies Have Fallen Behind

• Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years


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A new mindset has arrived: Consumerization

• “It’s not so hard, I can do this myself.”• “There’s an app for that.”• “I’ll just install this myself.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.”

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Simple Fast Easy

And WorksThe Way

They Want It To

DIY


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A tidal wave of data

• 80-90% of IT information is not accessible

• The amount of information today is just a trickle compared to what it will be in 2-3 years

• It will require all new technologies and skills that IT departments don’t have

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IT

WorldWorkers

Another Way ofLooking At All This


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Anecdotes

• A CIO of a multi-billion dollar firm deliberately puts himself in direct competition with service providers.

• If internal units gets a better deal and support, he’ll enable the process.

• Another Fortune 500 CIO has been cutting costs by 10% a year, every year.

• Reducing headcount dramatically but tripling his IT output using high leverage techniques and partnering with savvy workers.

• A third CIO just enabled a Bring-Your-Own-Device initiative. Users must act responsibly.

• Common thread:

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Designed loss of control.


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The challenge

• Ignoring technology change isn’t the answer

• Maintaining backlogs isn’t the answer• Giving up isn’t the answer• Proceeding in the same direction isn’t the

answer• Letting everyone do whatever they want

isn’t the answer

• Should we look at all new models for IT?

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Premise: IT is becoming pervasive and user-driven

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• In 2000, only 10% of IT was unsanctioned or outside of central control

• Today that’s 30% and climbing quickly.

2000 2010

CoIT

TraditionalIT


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For IT, all of this is unsustainable

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We Must Become Resilient to Constant Change

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There is great economic and social value in achieving this (in pink above)


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How do we design for loss of control?

• “Make change an integral function. Native.” - JP Rangaswami

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growthrefinement

disruptionrenewal

cycles ofchange

frequentadaptivecourse

corrections


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The CoIT era!

• A consumer notion of IT• Driven bottom-up and guided from top-down• In other words: Cooperative IT

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Consumerized ITCooperative IT


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#CoIT

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The Future of IT: Consumerization & Cooperation

CoIT

Technological Disruption

Lineof

Business

ITDept.

Ente

rpri

se E

volu

tion

The Business/ITDivide

Shadow IT Adoption

Consumer Tech

Cloud Computing/SaaS

Social Computing

Next-Gen Smartphones

differing priorities

change backloglack of alignment

unlike competencies

App Stores

• Broad enterprise uptake of consumer tech• Business-led solutions with IT support• Disruptive software distribution models• IT as enabling business infrastructure• Exponential increases in apps/devices• Decentralized governance

profit center vs. overhead

control vs. progress

narrowinggap

pressure tochange

Common Ground

• Consumerization of the workplace

• Rise of shadow IT (10% ten years ago, nearly a 3rd today)

• SaaS makes enterprise cloud apps just a URL away

• Smartphones the new “IT dept in your pocket”

• Tech savvy business users leading the charge with their own vision

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The Forces For and Against It

•Manageability•Standardization•Security concerns•Cost containment•Economies of scale•Procurement process•Regulations & laws

forces of constraint•Shorter business cycles•Faster tech innovation•Low barriers to access•Unprecedented choice•Disruptive new tech•User autonomy•Unsanctioned IT

forces of proliferation

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CoIT vs. Traditional IT

Traditional IT

highly decentralizedconsumerized

designed loss of controlIT competition (BYOD/app)

10x-100x IT increaselong tail solutions

hard to support & securerapid response to change

centralizedcomplex & unwieldy

tight controlno IT competition

backlog pronelarge IT solutions

supported & secureslow to change

key aspects

CoIT

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The Implications

• Designing of “Loss of “Control

• Becoming agents of enablement instead of source of all delivery

• Getting into the service delivery “long tail” with SaaS, enterprise app stores, and mashups

• Emergent enterprise architecture

• Addressing the shortfall in systems of engagement and connecting them to systems of record

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Getting into the business of emergent change

growthrefinement

disruptionrenewal

cycles ofchange

intentional outcome

emergent outcome

emergent

emergent outcome

outcome

emergent outcome

frequentadaptivecourse

corrections

Lo

cal

Au

ton

om

y

emergentdrivers

Fre

efo

rm C

oll

ab

ora

tio

n

Cu

ltu

re o

f E

xp

eri

me

nta

tio

n

It’s being fast, adaptive, agile, social and emergent.

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Getting to CoIT• Option #1: Don’t change. It’ll route

around you.• Option #2: Give up all non-essential

control. Make it secure and safe.• Empower workers and business

partners on the edge.• Give everyone simple, easy to

understand rules of CoIT engagement.• Lay the foundation for managing and

governing 10-100x more IT and data.• Throw out the traditional IT playbook.• Identify CoIT skills, then cultivate or hire

for them.• Become a change agent and an IT

revolutionary. You probably won’t have your current job long anyway.

Thank you

Defrag Keynote on CoIT - November 10th, 2011

Technology

Transcript of Defrag Keynote on CoIT - November 10th, 2011