Reimagining IT: Leading technology organizations into the future The Dbriefs Technology Executives series

Reimagining IT: Leading technology organizations into the future The Dbriefs Technology Executives series Anthony Stephan, Principal, Deloitte Consulting LLP Chris Garibaldi, Principal, Deloitte Consulting LLP October 5, 2017

The CIO role is relatively new and has evolved at a rapid pace as technology has become pervasive in the enterprise 1970s Data Processing Manager 1980s Director of IT 1990s Chief Information Officer 2000s Chief Information Officer 2010s Chief Information Officer + Chief Technology Officer CDO: Data and/or Digital Chief Analytics Officer Chief Integration Officer c c Mainframe Era Distributed Era Web based Era Digital Era Reporting structure is through Finance Report to CFO or COO Report to CEO or CFO Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 3

Massive shifts are reshaping the role of the CIO from keeping the lights on to driving growth and performance Proliferating Disruptive Technologies Evolving Talent Pools Expanded Stakeholder Expectations Cloud IoT Blockchain Mobile Analytics Cognitive Cyber Contingent and dynamic workforce Gig economy Crowdsourcing Automation Millennials Global market Customers Business leaders The Board Shareholders Partner ecosystems Regulators Competitors Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 4

CIOs should deliver on five key priorities in order to address evolving expectations, challenges and opportunities Exploration and experimentation with new technologies and partnerships Innovation capabilities and capacity Modern, agile, fast service delivery models Capable, flexible talent pool Expanded ecosystem partnerships Modern IT Org & Operating Model Disruptive Technologies Adoption Value Creation & Competitive Advantage New products and services New business models Customer facing revenue solutions Cost efficient infrastructure Reliable and cost effective operations Highly available and secure environments Operational Excellence Trusted Advisor Technology thought partner with business Tech savvy evangelist On-time delivery of projects Board technology leader Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 5

Polling question #1 How do you feel IT is perceived by your organization today? A necessary cost center An underutilized opportunity A valued business enabler An integrated component of the business Don t Know/Not Applicable Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 6

As businesses embrace technology transformation, executive leaders expect CIOs to serve the organization in new ways across key dimensions Risk reduction Experienced technologist Cost and efficiencies Operational excellence Functional IT siloes Optimize business Outsourcing Focus Technology leadership Boardroom Agenda Business Expectations IT Organization Capabilities Sourcing Value creation Savvy businessperson Digital and cyber Grow business Multimodal delivery Grow business Joint ventures and partnerships Operational CIO Strategic CIO Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 8

Effective CIOs can add value to their organizations in three distinct patterns in order to meet the needs of the business TRUSTED OPERATOR CHANGE INSTIGATOR BUSINESS CO-CREATOR Deliver operational discipline by focusing on cost, efficiency, and performance reliability Take the lead on technologyenabled business transformation and change initiatives Focus time on business strategy and enabling change within their businesses to ensure the effective execution of the strategy Business needs this pattern type when: There are foundational issues around reliability and performance It is going through cycles of efficiency hunts, cost reduction, and integration Times demand a clear vision and complex project management There is an organizational mandate for growth and change It is experiencing rapid growth and needs a long-term view on tech investments Investment in exponentials requires a technology leader with business acumen Source: 2017 Deloitte Global CIO Survey N=1,216 Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 9

CIOs who need to shift within their role can chart their journey between pattern types by adapting and driving change in four main areas IT capabilities: People, process, and technology based on the business context Current State Future State Leadership & influence: Characteristics of a successful technology leader and relationships with internal stakeholders Technology investments: Technology to bring about significant business change and drive value in the organization Talent & culture: Hiring strategically and developing culture needed to meet business needs Source: 2017 Deloitte Global CIO Survey N=1,216 Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 10

The CIO s ability to create value is not limited by their inherent, personality-based attributes Source: 2017 Deloitte Global CIO Survey N=1,175 Note: statistics are based on a survey sample/survey respondents Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 11

CIOs can position themselves to succeed by building IT capabilities and skills within their organizations to align with the business expectations and priorities Source: 2017 Deloitte Global CIO Survey N=1,123 Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 12

Polling question #2 What area of the IT Operating Model are you driving the most change in? Partnering with the Business Driving Innovation and Incubation Architecting the Future Delivering Products and Services Managing Performance Don t Know/Not Applicable Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 13

Baseline the Business of IT The Business of IT is defined by the core disciplines leveraged to achieve targeted business outcomes Setting the Direction Technology Vision & Agenda Setting Innovation & Exploration Architecture Defines the strategic direction of the technology organization to serve the demands of the Business, its Customers and End Users. Pro-actively leads the Business to have clear technology goals and roadmap Develops market relevant technology innovation, either in-house or through the use of third parties, to benefit the business. Creates prototypes and opportunities to develop and grow ideas Formulates the plans, models and guiding principles to ensure that technology platforms implemented across the enterprise are consistent with the overall technology vision Talent & Leadership Development Maintains an appropriate talent pool with the right skills and capacity required to deliver the technology vision and agenda, with a strong focus on developing leaders of the future. Managing IT Resources & Assets Operations and Delivery of IT Services IT Governance & Performance Management IT Risk, Security & Compliance Program & Project Management Business Partnership Product & Solution Delivery Application Management Platform & Infrastructure Management Service Management Partner & Ecosystem Management Defines the structure and governance to deliver the strategy and manage product and services against committed business outcomes. Enables strategic, financial and operational decisions based on performance and economic implications Ensures security, reliability and compliance of enterprise data and technology services; manages IT risks and responds to breaches to control and minimize impact Defines a suite of program and project management approaches, suitable for a range of deliveries, from large scale complex programs to simple rapid delivery projects, supported by the relevant knowledge, skills, tools and techniques Builds strategic partnerships with business stakeholders, ensuring alignment between business objectives and IT objectives as well as being in a position to present IT solutions to solve business problems. Builds and configure new and changing products and solutions, based on requirements, user journeys and designs and in line with appropriate methodologies and agreed standards. Effective and efficient operations and management of applications and software throughout the service lifecycle, including upgrades, new functionality releases and complex incident and problem resolution. Effective and efficient operations and management of IT infrastructure, including complex incident and problem resolution and management of End User Services, Servers, Databases, Storage, Network, Middleware and tools. Maintains robust technology services that meet the needs and requirements of the business on a day to day basis and provides a first point of contact between the business and the technology operations. Manages relationships with third parties to deliver technology services, enhance operational excellence and drive continuous innovation Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 15

Reimagining IT Disruptors that are causing the Business of IT to be reimagined Technology Vision & Agenda Setting Innovation & Exploration Flexible models along with CxOs engaged in decisionmaking Faster Decision Making and Right Speed Architecture Talent & Leadership Development IT Governance & Performance Management IT Risk, Security & Compliance Program & Project Management Agile architecture paired with external partnerships New skills, acquisition and retention strategies Research/Vendor Partnerships, Innovation Foundry T-Shaped Roles and Tech Savviness Business Partnership Product & Solution Delivery Application Management Collaborative and accelerated delivery models Agile, Hybrid-Agile and Ecosystems Platform & Infrastructure Management Service Management Partner & Ecosystem Management End-to-End automation of heavy manual processes DevOps and Autonomics Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 16

Shifts required to Reimagine IT New skills and capabilities, centered around collaboration with the business, are fundamental to Reimagine IT Business Enablement Innovation/ Incubation Architecture Solution Delivery (Infra & Apps) Technology Business Management The ability to collaborate with the business to meet business outcomes and deliver value from IT initiatives. Provide business and technology leaders with insight into innovative technologies that can disrupt or enhance business models/ capabilities. Develop the roadmap and technology blueprints driven by business capability; clear roadmap that enables new technologies to be prototyped. Focuses on not only maintaining the reliability & performance of core operations, but also on product/service based design and development through agile & DevOps. Focuses on creating a portfolio that supports business growth based on valuebased decision making. Supports the CIO in being a broker of technology services and solutions. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 17

Polling question #3 What area of your current focus do you feel has the most impact on your legacy? Driving and enabling strategy Adding value through operational performance Seeding the next generation of leadership and talent Building credibility and influence Driving business innovation and customer value Focusing on customer experience and agility Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 18

Emotional Intelligence on the rise How leaders engage can be more important than technical competency. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 20

How business stakeholders define success Talent, execution, and relationships are often key measures of success. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 21

Why do we do what we do? Making IT Matter Strong desire for the company to understand and appreciate the contribution IT can make, along with a passion for developing and engaging people in fun and exciting ways. Leadership Beyond CIO Aspiration for broader leadership, especially as companies come to recognize how technology can drive competitive advantage and the business respect for IT increases. legacy noun leg a cy \ ˈle-gə-sē \ Work and Life Balance Use technology to help people become more effective in their jobs, make better decisions, and lead happier, more fulfilling lives. Giving Back Use the position as a platform to give back to the community and the company, while also spending a lot of time mentoring and developing business leaders. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 22

The Legacy Mandate How your legacy gets defined is largely up to you- but not exclusively. Business priorities, leadership, relationships, and technology investments provide a frame to assess and shape the value a CIO delivers. There is no right legacy pattern for all circumstances. Establishing strong relationships is key to effectiveness and influence across all three patterns. Because no individual can meet all the needs of a complex organization, surrounding yourself with complementary talent is key. Build peer relationships outside your four walls, outside your industry, and even outside the CIO profession The circumstances in which you operate have a big influence in what you need to accomplish. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 23

Polling question #4 What do you feel is the future of the CIO 5 years from today? No Change from Today s CIO Trusted Internal and External Technology Steward Broker for Mostly External Technology Services Business Leader (More Business than Technology Focused) Non Existent Don t Know/Not Applicable Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 24

Join us November 2 at 2 p.m. ET as our Technology Executives series presents: Data sovereignty and the future of data management Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 26

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Contact information Chris Garibaldi Principal Deloitte Consulting LLP cgaribaldi@deloitte.com @Twitterhandle Connect with me on LinkedIn Bill Briggs Principal Deloitte Consulting LLP wbriggs@deloitte.com @Twitterhandle Connect with me on LinkedIn Anthony Stephan Principal Deloitte Consulting LLP astephan@deloitte.com @Twitterhandle Connect with me on LinkedIn Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 28

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2017 Deloitte Development LLC. All rights reserved. Reimagining IT: Leading technology organizations into the future 29

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