The Death of the IT Department

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CXO Advisor [email protected] The Death of the IT Department

description

There are a number of changes coming at organisations that will make the way IT departments operate now untenable. IT departments and CIOs need to change themselves now - or become irrelevant

Transcript of The Death of the IT Department

Page 1: The Death of the IT Department

CXO [email protected]

The Death of the IT Department

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When to change?

A

BC

D

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When to change?

A

BC

D

Change at A• Have the resources• Stay ahead of the rest• How do you know you’re at A• “Don’t change a winning formula”• “My job depends on A”

For

Against

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When to change?

A

BC

D

Change at B• Have the resources• The trend is pretty clear

• “This is temporary adjustment”• “It’s always worked in the past”• “My job depends on B”

For

Against

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When to change?

A

BC

D

Change at C• The writing’s on the wall• Have definite use cases • Not far to catch up

• “It’s them (workers, competition)”• “Not invented here”• “My job depends on C”

For

Against

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When to change?

A

BC

D

Change at D• Backs to the wall – can take

drastic action• It’s us• “No resources”• “All the good people have left”• “My job depends on D”

For

Against

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When to change?

A

BC

D

Change at A• Have the resources• Stay ahead of the rest

Change at B• Have the resources• The trend is pretty clear

Change at C• The writing’s on the wall• Have definite use cases • Not far to catch up

Change at D• Backs to the wall – can take drastic action• It’s us

• How do you know you’re at A• “Don’t change a winning formula”• “My job depends on A”

• “This is temporary adjustment”• “It’s always worked in the past”• “My job depends on B”

• “It’s them (workers, competition)”• “Not invented here”• “My job depends on C”

• “No resources”• “All the good people have left”• “My job depends on D”

IT: the way it delivers, its role, its skills, and its continued existence is at least at point ….?

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The nature of change

Boiling frogs

Continuous / incremental change

You can see it happening all the time, but you’re too “busy” to notice

Busy:• Comfortable• Political• Gaming• Inept

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The nature of change

Alien invaders

Discontinuous / Instant change

You don’t see it coming, and can’t understand the implications when it does

Don’t see:• Comfortable• Not looking• Selectively blind• Paradigm bound

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The nature of change

Boiling frogs

Continuous / incremental change

Alien invaders

Discontinuous / Instant change

You can see it happening all the time, but you’re too “busy” to notice

Busy:• Comfortable• Political• Gaming• Inept

You don’t see it coming, and can’t understand the implications when it does

Don’t see:• Comfortable• Not looking• Selectively blind• Paradigm bound

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Boiling frogs for IT – You can see it. Now do something useful

Cloud

People say: “Ah but Cloud is an old technology. Been around for years!

This is true (ish)

But Cloud is about the delivery model (on demand, self service), the service model (granular, elastic) and the business model (closely metered, pay as you use, pay for only what you use)

So Cloud is a significant change in the IT environment – because it’s not about the technology

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Boiling frogs for IT – You can see it. Now do something useful

BYOD

Bring your own device is a litmus test- individuals are using their own IT, irrespective of what IT departments tell them!

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Boiling frogs for IT – You can see it. Now do something useful

Consumerization of IT – Familiarity / competence

IT departments are not the experts anymore

You want a technical expert – call a vendor / consultant

You want an IT use in business expert – call a user

Users, and executives use the commercial experience as a yardstick of IT’s performance – if they can buy a laptop this afternoon, and be productive on an app they bought at the same time – why are IT not the same in their provisioning? Change requests – Bah!

Executives won’t take IT bullshit any more – FUD doesn’t work

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Boiling frogs for IT – You can see it. Now do something useful

Connectedness

Expect the Arab Spring of IT – people are talking to each other, comparing IT experiences, checking out what’s possible – IT departments can’t stop the rise in expectations and the degradation of satisfaction with IT performance (No matter how much they try to control it)

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Boiling frogs for IT – It’s about how you think – not what you do

Cloud – It’s about the model not the technology

BYOD – It’s about self-empowerment, not devices

Consumerization of IT – It’s about no more FUD

Connectedness – Expect an Arab Spring in IT

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Sails on the horizon for IT – surprises / ambushes / invasions

Speed of change – three layers

Transaction layer

Differentiation layer

Innovation layer

Transaction layer

Differentiation layer

Innovation layer

Transaction volumes Transaction change

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Sails on the horizon for IT – surprises / ambushes / invasions

Speed of change – three layers

Transaction layer

Differentiation layer

Innovation layer

Transaction layer

Differentiation layer

Innovation layer

Transaction volumes Transaction change

While your transaction layer shouldn’t change often, what’s the pressure build-up on your legacy systems? Are your legacy systems delaying business change?

How quickly can you change your differentiating apps?

And how quickly can you change your innovation layer – new markets, products, channels – if you can’t change within two weeks, expect to fail at IT!

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Sails on the horizon for IT – surprises / ambushes / invasions

Big data / big analyticsBig data and analytics will change how businesses react to trends, customers and competition

Outliers will start to define trendsShort-lived trends will create lucrative but short-lived productsUltra-large computing capacities will be needed – you can’t build it or own it yourselfData administrators will become less important than data scientists and data explorers

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Sails on the horizon for IT – surprises / ambushes / invasions

The clover-leaf organisation

Outsource /as a Service

Core Cust

Contract

Based on Charles Handy’s Shamrock organisation

The core IT role – what the company can’t buy elsewhere – will be 10% of the current role

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Sails on the horizon for IT – surprises / ambushes / invasions

Villaging

Expect your organisation to start using technology, social networks to set up Barter exchanges, ecosystem environments, co-petition, crowd-sourcing as a key modus operandi

What will IT do? (Because they can do this all without your help / interference)

Will IT use villaging to deliver their services?

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Sails on the horizon for IT – surprises / ambushes / invasions

Speed of change – three layers

Big data / big analytics

The clover-leaf organisation

Villaging

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To survive (not thrive) IT will have to…Speed up dramatically

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise up

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than control

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possible

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possibleApply the 80:20 rule fiercely

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possibleApply the 80:20 rule fiercelyBecome a clover-leaf organisation

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possibleApply the 80:20 rule fiercelyBecome a clover-leaf organisationCrowd source services

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possibleApply the 80:20 rule fiercelyBecome a clover-leaf organisationCrowd source servicesGo green / become resilient

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possibleApply the 80:20 rule fiercelyBecome a clover-leaf organisationCrowd source servicesGo green / become resilientOutside in driven, not inside out

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To survive (not thrive) IT will have to…Speed up dramaticallyDumb down and wise upInfluence more than controlDo as little as possiblePlay the 80:20 rule fiercelyBecome a clover-leaf organisationCrowd source servicesGo green / become resilientOutside in driven, not inside out

Change yourself before someone does it to you

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Radical change for ITRole in business

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Radical change for ITRole in businessOrganisational model: Clover leaf

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Radical change for ITRole in businessOrganisational model: Clover leafSkills sets: Commercial, business, change/transformation

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Radical change for ITRole in businessOrganisational model: Clover leafSkills sets: Commercial, business, change/transformationDelivery tools and models

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Radical change for ITRole in businessOrganisational model: Clover leafSkills sets: Commercial, business, change/transformationDelivery tools and modelsControl paradigm / governance

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Radical change for ITRole in businessOrganisational model: Clover leafSkills sets: Commercial, business, change/transformationDelivery tools and modelsControl paradigm / governanceMeasures of IT success

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Radical change for ITRole in businessOrganisational model: Clover leafSkills sets: Commercial, business, change/transformationDelivery tools and modelsControl paradigm / governanceMeasures of IT successCloudsource everything (Keep 5%)

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IT’S DAYS ARE NUMBERED

C

This is the case for change

The next presentation will be focused on what IT departments can and should do if they want to survive their own “Arab Spring”

Terry [email protected]