We are entering a third era of enterprise IT - · PDF fileWe are entering a third era of...
Transcript of We are entering a third era of enterprise IT - · PDF fileWe are entering a third era of...
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We are entering a third era of enterprise IT
IT Craftsmanship IT Industrialization Digitalization
Focus Technology Processes Business Models
Capabilities Programming, systemmanagement
IT management, servicemanagement Digital leadership
Engagement Isolated, disengagedinternally and externally
Treat colleagues ascustomers, unengaged
with external customers
Treat colleagues aspartners, engage external
customers
Outputs & outcomes Sporadic automation andinnovation, frequent issues
Services & solutions,efficiency & effectiveness
Digital business innovation,new types of value
We are here
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Classicism• 1980s to early 1990s• Classic “best of breed”
applications• Driven by market and
user immaturity• Happy users but
integration and analyticsnightmare
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Modernism• Mid 1990s to mid 2000s• Megasuites rule, ERP takeover,
centralised IT• Driven by vendors, users
increasingly frustrated• Integration trumps
agility and fit torequirements
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Postmodernism• Late 2000s to today and beyond• Suite deconstructed, postmodern ERP emerges, megavendors not in control• Driven by the Nexus and user disillusionment, users taking back control• New integration, analytics and
support challenges
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Simplicity
Costsaving
Onecompany
Rationalise ITapplications
Yesterday: ERP was supposed to solve all our problems…and create value!!
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Today: Monolithic ERP spiraling to irrelevance?
Go liveparty!
Can we getfunctional changes?
Wait for the next upgrade.
Can I connect viamy mobile device?
That's going to be difficult.
We need you to supporta new business initiative — FAST!
You do realizethis is complex?
Why is it so difficult just to create abasic
requisition? I want an app storeapp!
It isn't difficult. You got training.
We need budget for an upgrade.
Why is our ERP system soexpensive to run, can we
switch to something else?
Our ERP is falling into dis-use,
I am buying Saas!
We've just released anew business release.
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Business leaders &process owners
Business-driveninnovation
Casualusers
User experiencesimplification
Informationusers
Fact-basedbusiness
Traditionalpower users
Processexcellence
Who is disillusioned with ERP?
Most ERP implementations focus on the needs of transactional power users
Traditionalpower users
Processexcellence
Informationusers
Fact-basedbusiness
Casualusers
User experiencesimplification
Business leaders &process owners
Business-driveninnovation
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The Nexus of forces impacts ERP,especially disillusioned users
Social
Mobile Cloud
Information
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SAP in the cloud:no longer a single product suite
Social people to people collaboration
Business network business to business collaboration
Managed cloud
SAP Businesssuite on HEC
BW onHEC
From SAP or partnersPeople Customer Money
$¥ €
Supplier Business
Cloud suitePublic cloud applications SAP Hana
Partner / ISVApps
Hana CloudServices
• Database• Infrastructure• Platform
Hana marketplace
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Oracle in the cloud:no longer a single product suite
APPLICATIONSCLOUD
ERPcloud
CXcloud
HCWcloud
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Current technology trends representtwo complementary goals
Bi / Analytics 1 1
Infrastructure & data center 4 2
Mobile 5 3
ERP 2 4
Cloud 3 5
Networking, voice and data comms 6 6
Security 7 7
Digitalisation / Digital marketing 8 8
Industry specific applications 10 9
Customer relationship management 11 10
Legacy modernisation 9 11
Collaboration - 12
Innovation & growth 12 -
Ranking based on how many CIOS cited each as a top-three new spending priority for 2014
Renovatethe core
Exploitthe new
SA Global
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The future looks increasingly cloudy
% of 2011 surveyrespondents
% of 2014 surveyrespondents
In 2011 and 2014, 23%said ”never"
When will more than half of your business run on public* cloudinfrastructure + SaaS?
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Postmodern ERP:it’s no longer “one size fits all”
Other
Fin. Services
Govt. & Edcn.
Comms. & Services
Manufacturing
Already done so Within 3 years 3 to 5 years 5 to 10 years > 10 years Keep core ERP on premises Don't know
100%0%
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Public cloud is being deployed to plug the agility gap
Payback
Agility
50%
Cost14%
Innovation13%
Quality10%
Other12%
Main reason
22MONTHSSaaS
72%
IaaS47% PaaS
43%BPaaS17%
SA: 80%
25%Have madesignificant cloudinvestments
SA: 50%SA: 60%
SA: 10%
SA: 20%
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The changing of the guardthe mega-vendors will no longer dominate
Oth
er
Which technology company has been the mostinfluential over the past 10 years?Which will be in the next 10 years?
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Nextgenerationinformationcapabilities
What does this all mean?Within 5 years, hybrid ERP environments will be the norm?
PostmodernERP/Apps
Morediverse
partnerships
Hybrid Cloud
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Postmodern ERP scenarios:the “HOOF” model
Conventional
Maverick
Tactical Strategic
Flip model(5 to 15 years, or never)
Hybrid reality(now, next 5 years big shift)
On-premises monolith(dominant state today)
Outsourced everything(5 to 10 years)
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Firstly . . .
is a company… not a strategy
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Key postmodern ERP strategy drivers
Start
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Monday morning• Inventory any user-driven SaaS applications
that cross the ERP boundary• Discuss the impact of postmodern ERP with
your ERP leaders, application strategists andenterprise architects
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Next 90 days• Agree your target “HOOF” model
scenario• Review your ERP vendor’s roadmap and
identify how it is being impacted bypostmodern ERP
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Next 12 months• Update your ERP strategy to accommodate
postmodern ERP• Revise roles and responsibilities in
ERP CoE to take account ofpostmodern ERP
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Questions
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Recommended Gartner research
Develop a Strategic Road Map for Postmodern ERP in 2013 and BeyondA Drobik, N Rayner (G00252735)
Predicts 2014: The Rise of the Postmodern ERP and Enterprise ApplicationsWorldD Ganly et al (G00259076)
How to Develop an ERP StrategyD Ganly, N Rayner, C Hardcastle (G00259897)
Best Practices for Managing Integration in a Hybrid Cloud and On-Premises ERPWorldN Rayner(G00251013)
Survey Analysis: Adoption of Cloud ERP, 2013 Through 2023N Rayner (G00261104)
For more information, stop by Gartner Research Zone.
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"IT sourcing strategies must be structured to enhance ITagility and address the needs of digital businesses.
Organisations that don't adapt their strategies, and thecompetencies required to execute them effectively,
will fail to achieve the value opportunities presentedby a highly digitalised future.”
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"The reality is that you do have to operate at two speeds, andsome of that you do by creating dedicated teams for each.
Focusing on the big systems, making them run smooth, while atthe same time having disrupters to innovate, together with
marketing and the customer, exploiting digital."Willem Eelman, global CIO, Unilever
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Build capacity - bimodal IT offers a way to get unstuck
Waterfalldevelopment
Known vendorsStrong governance
Minimised riskTechnology teams
Traditional mode Postmodern mode
Stuck in the middle”fit for no one"
Agile dev.Small/
innovative partnersLightweight"Just good
enough" governanceManaged risk
Multi-disciplinary teams
Postmodern ERP - When speed & innovation isneeded, or there is a high degree of uncertainty
Legacy ERP