The IT Department of 2020

Transcription

1 The IT Department of 2020 Managed in a frictionless way If complexity presents a problem today, think how it might look in a decade. We expect the data center of 2020 to be a combination of on-premise and in-cloud services managed in a single environment run on the advanced components we have described. It will allow for dynamic, pooled resources and flexing up or down to meet business requirements. Given the environment that s taking shape, what will the IT department of 2020 look like? And how can a CIO lead his or her team to the future state that will be required to thrive? The The ultimate most extreme benefit of view all of says this that next-generation central IT will convergence become a shell is that that your looks after data old center legacy management applications will that become no one else frictionless. wants to touch. You will All be the able funding to flip from the the maintenance-to-innovation ratio, which today has 67 percent of IT budgets business will go through business IT groups that will orchestrate processes out of going toward maintenance compared to 33 percent going to innovation. 5 When cloud services. you aren t allocating endless resources to managing your data center, you free yourself up to become your organization s engine of innovation and revenue.

2 1 The IT Department of 2020 While this could happen, we believe that IT s value to the business has every chance of increasing, not decreasing. Many industry experts, including Marc Andreessen, believe that the product and service differentiation offered by software will continue to increase.9 While cloud services will provide non-core applications and other foundation environments, differentiation will come from the business processes, the applications and the data analysis provided on top of this foundation. One step that will help is having a clear frame of reference for evaluating new opportunities and requests. There is going to be constant noise in the system, so it s important to have a frame of reference against which you are vetting new ideas and determining the best way to implement them consistent with that reference architecture, says HP s Flower. As the leader, you have to listen constantly, make quick decisions and then execute like crazy. People are going to challenge your decisions, but you have to keep pace. Another potential advantage for IT is the shift away from the requirements lifecycle toward standardized apps. iphones and other devices have trained us to browse what s available, rather than dictate requirements. The App Store mentality I ll know if I like it when I see it will enable IT to move faster and show the business what s possible, then move rapidly into production. This trend, combined with a move toward the cloud, represents a huge opportunity for IT to become more proactive than ever before. The App Store mentality I ll know if I like it when I see it will enable IT to move faster and show the business what s possible, then move rapidly into production.

3 2 The 2020 IT Department Structure The IT department of 2020 will be smaller in terms of number of people than that of today. This is because many of the non-core applications and some of the production systems operations responsibility will have gone out to cloud providers. Also, fewer people will be required to operate the development and test systems. However, CIOs who have gained the trust of the business will get no less funding than they do today. In fact, we believe the value that IT can deliver to the business is nowhere near its maximum. As IT becomes less about operate and more about generate differentiation for the business, the link between the CIO and line-of-business peers can only increase. And the link will further tighten because the CIO s teams will be measured against the same metrics as the business teams are measured. What skills does this new role require, and how does the CIO get her team to this future state?

4 3 How do the CIO and the IT department get to 2020? Let s look at the skills the CIO of 2020 needs to develop in the IT team: The CIO of 2020 might want to take a page out of the book of the modern laptop or car manufacturer. Both of these comprise components from third parties, allowing the manufacturer to focus on what they do best. In both of these examples, the ability to run an efficient and responsive supply chain is important. The IT supply chain of 2020 will be mainly digital supplier-based, however. Many businesses today are poorly served by data analysis. As the amount of data that needs to be analyzed increases dramatically, this will only get worse. An IT department that can supply analysts to set up data analysis will be valued by the business. The architecture of 2020 will be multi-device applications talking to back-end cloud services. IT will need people who can create compelling applications that work in such an environment. The business is looking for innovation through IT innovative business process, applications and data analysis. People with creative talent will be valued. 10 The CIO will need risk analysts people who can look at a service s digital supply chain and measure and manage the risk it presents to the business. The business consumes business processes. IT will need good business processes analysts and modelers. A recent Economist study found that while 40 percent of C-Suite executives felt that using IT to streamline business processes was key, only 28 percent of CIOs agreed with them. 10

5 By 2020, the software content of everything will have increased refrigerators, all forms of transport, buildings and even supermarket trolleys according to the futurist Patrick Dixon. 11 Forrester predicts that soon, cars will routinely contain 200 million lines of code and 70 processors. That s almost as many as the new Airbus Demand for good software programmers will be high, and this will compete with the CIO s need for smart analysts. But the 2020 CIO will have a lot to offer: high-level business process, application development and data mining tools that can make a real difference to the business. 10 Fig. 7 Managing Mosaics of Services Year execs expect to manage business processes confidently across services spanning data centers and private and public clouds Confidence

6 Sources Text Graphics 1. The C-Suite Challenges IT: New Expectations for Business Value. Economist 2. Patrick Dixon: Futurewise, Location 897 of The C-Suite Challenges IT: New Expectations for Business Value. Economist 4. Just the Essentials: Focus on the Core (33:44 min), watch?v=hm4odj0slaq 5. IDC - IVIEW, The Digital Universe Decade Are You Ready? May 2010, by John Ganz and David Reinsel, sponsored by EMC Corporation 6. The C-Suite Challenges IT: New Expectations for Business Value. Economist 7. California Public Utilities Commission, CA.gov, July 28, ca.gov/published/final_decision/ htm 8. Charette, Robert. Carware, IEEE Spectrum, February, Software is eating the world, Wall Street Journal, August 20, The C-Suite Challenges IT: New Expectations for Business Value. Economist IEEE Spectrum, February, 2009 Fig. 1- IDG Research Services, IT Executives Vision, conducted for HP, May 2012 Fig. 2a- Bureau of Labor, Occupational Outlook Handbook Projections Fig. 2b- OECD Database, UNESCO and National Statistics websites for Argentina, China, India, Indonesia, Saudi Arabia and South Africa Fig. 3- Source: HP Labs Fig Fig. 5- The C-Suite Challenges IT: New Expectations for Business Value. Economist Fig. 6- IDG Research Services, IT Executives Vision, conducted for HP, May 2012 Fig. 7- IDG Research Services, IT Executives Vision, conducted for HP, May 2012 *The views set forth in this publication are not necessarily those of Hewlett- Packard Company or its affiliates (HP), but are the collective views of contributors to this publication, some of which have been curated by HP. Because the content of this publication is future-looking, it, by definition, makes certain presuppositions and assumptions, some or all of which may or may not be realized. Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. The IT Department of 2020; July 2013