White Paper I.T. s New Mission: Be a Catalyst for Change and Strategic Partner to the Business To become an effective driver of business outcomes, IT organizations must evolve into business leaders. Key to their success: tackle obstacles as they transform everything from mindsets and processes to underlying infrastructure. Relevance requires transformation (and some growing pains) Most IT organizations know their future will be very different from the past. The rise in shadow IT spending is one clue. Today, 42% of IT spending is now outside IT a number Gartner estimates will grow to 50% by 2017. 1 Clearly, the business wants more from today s CIO. Today s CIO also wants to ensure IT will still be heavily involved in future projects and initiatives. So, what s IT to do? It has a lot to do with evolution. The process starts by embracing IT s new role as a valued, internal strategic service provider and change catalyst to the business. The new IT leader is one who understands the top-of-mind needs of the business and successfully meets those needs by delivering the right services to support business goals. The new IT leader is one who is fast, agile, transparent, cost-efficient, good at managing risk, and intimately aligned with the business. How Well Is IT Communicating or Demonstrating the Impact of IT Investments on Business Outcomes? Excellent (needs no improvement) Very good (needs little improvement) 16% 2% 8% Good (needs some improvement) 39% Fair (needs significant improvement) 35% Poor (no ability to do this right now) 53% of respondents believe their IT organizations need some (or a lot of) improvement in this area Assuming this new role, however, first requires IT to shed its old skin. It also requires adopting change on multiple levels, from mindsets and processes to underlying technologies and platforms. A study conducted by IDG Research Services for Datalink finds some progress in this regard. IT decision-makers (and their budgets) are laser-focused on business outcomes, especially for projects meant to improve the customer/client experience, boost operational efficiency and mitigate risk via improvements in IT security and compliance. The study also finds that IT momentum can be slowed or halted by roadblocks, many of which appear at early, critical stages of IT projects. This paper looks closely at IT s current transformation efforts along with its primary roadblocks. It then prescribes high-level strategies to help IT realize its new role a little faster and a whole lot easier. Datalink White Paper 1
IT s current progress: Striving toward business outcomes (but the business may not know it) In the IDG study, 70% of decision-makers feel it is critical or very important to demonstrate the impact of IT investments on specific business outcomes. Yet, when asked to rate how well they were doing in this regard, nearly half (48%) said their efforts need some to significant improvement. 70% of decision-makers feel it is critical or very important to demonstrate the impact of IT investments on specific business outcomes. IT organizations already have a few ideas regarding the actions they need to take to improve their impact on business outcomes. Top of mind for 56% of those surveyed is the need to streamline operational processes. This is followed by the need to increase standardization, move away from legacy systems, change operational skills, and develop a cloud-like interface for IT services. What Actions Are Needed to Improve IT s Impact on Business Outcomes? 56% Streamline operational processes 38% Increase standardization 37% Move away from legacy systems 35% Change operational skills/roles Develop a cloud-like interface for IT services 27% Datalink White Paper 2
Unfortunately, taking these types of actions is no overnight fix. Each requires significant change to the IT organization. Each also requires investment and careful, strategic planning to produce the strong business outcomes most IT organizations require. There s just one problem with all this strategic work. When faced with such organization-wide transformation projects, many IT organizations are too busy keeping the lights on with their day-to-day operations to devote much of their lean IT staff to such endeavors. IT must take steps to become a true enabler that helps the business achieve its goals. Despite these operational drawbacks, business expectations of IT continue to rise. To avoid being bypassed for outside services, IT must still take steps to become a true enabler that helps the business achieve its goals. This involves becoming more service-oriented. It involves thinking more like a CEO who understands the business. It also involves looking for opportunistic ways to leverage IT in order to achieve business goals. IT organizations are making efforts in this regard. Many are attempting to direct IT investment toward more business-oriented activities. These include efforts to streamline operational processes and imposing new sets of standards. Despite these efforts, many still find certain challenges slowing their progress. A little over 30% of survey respondents profess difficulty with their organization s efforts to standardize and streamline business processes. They also cite reliance on too many manual processes as another related obstacle to driving business outcomes. These first two challenges seem closely linked to another issue voiced by one-third of respondents: IT s difficulty keeping up with demand for new application development. Other key challenges impeding IT s attainment of business outcomes include data security concerns, as well as poor executive sponsorship and poor communication between IT and the business. Challenges in Driving Business Outcomes via IT Investments Difficulty standardizing/streamlining business processes Too many manual processes (need for more automation) Difficulty keeping up with the demand for new application development Poor communication between IT and lines of business Lack of support/encouragement/sponsorship from executive management Data security concerns 34% 33% 31% 29% 29% 29% Datalink White Paper 3
Follow the money Toward this end, the IDG study sheds light on the top 5 considerations of current IT decision-makers when choosing where to invest. Top 5 Business Outcomes Driving IT Investment Decisions 70% Improve IT security IT organizations with finite budgets must choose carefully where they invest IT dollars in order to achieve greater outcomes for the business. Improve customer/client experiences 59% Manage costs 59% 52% Boost operational efficiency 44% Mitigate risk The top business-oriented consideration cited by 70% of respondents is the need to improve IT security. This is closely tied to the need to mitigate risk, cited by 44% of respondents. These twin considerations are no surprise, given the growing threat landscape. The landscape has since increased to encompass mobile devices, external cloud services and new risks and costs of non-compliance to data-handling guidelines previously established by the business, partners/customers and regulatory bodies. Other top-of-mind business considerations when choosing to invest today s IT dollars include projects to improve customer/client experiences (referenced as a top priority by 59%), projects to manage costs (also referenced by 59%) and projects to boost operational efficiency (52%). Clearly, today s IT organization wants to become a better enabler to the business. It also wants to successfully drive powerful, business outcomes for its internal users. When asked, IT leaders also have clear ideas about investments and changes they need to make in order to get them closer. But, how close are they to embracing IT s new role as a catalyst and true strategic partner for the business? Most IT organizations admit they are not there yet. Most also admit they must first conquer the key obstacles in their path before they can effectively close the chasm between where they are today and where they need to be. Datalink White Paper 4
Most Challenging Stages of an IT Project Plan Build Test Run None 6% 25% 32% 36% 41% Common roadblocks can delay IT progress In light of evolving expectations, and more outside provider options, IT recognizes it needs to evolve to become a faster, better service provider to the business. Progress toward this goal, however, can be hampered by various challenges. Common challenges tend to occur in three main areas: Issue #1 The wrong type of communication between IT and the business This area covers a myriad of communication disconnects between how IT talks and what the business needs to hear. This issue dovetails with the subsequent lack of executive support for IT projects mentioned by many in the IDG study. Many external service providers are better at learning a customer s specific needs, then subsequently translating (and giving) customers exactly what they want to hear. Issue #2 Challenges in the Plan and Build phases of most new IT projects Regardless of the technology in question, respondents tend to find the earliest stages of an IT project the most challenging components in the IT project lifecycle. Here, 41% of respondents indicated the Plan stage is typically most challenging, with another 36% also citing the Build stage as most challenging. Issue #3 Challenges with deploying or maintaining complex technologies In the IDG study, several data points show two primary, technology-specific trouble spots. The first main challenge area covers a cluster of technologies intended to help organizations streamline operations and transform into a more responsive, IT-as-a-Service (ITaaS) model. In this regard, migration to ITaaS was cited by nearly one-quarter of respondents as among the most challenging technology initiatives to deploy and/or maintain. Most Challenging Technologies to Deploy or Maintain Shows Technology initiatives with the biggest impact. Security IT governance/compliance management Migration to an IT-as-a-service model Disaster recovery/business continuity Process automation Converged data center infrastructure Hybrid cloud Application performance management Public cloud (including SaaS) Cloud/virtualization management Agile development platforms Private cloud (including PaaS, IaaS) Flash storage None 30% 29% 16% 24% 25% 22% 18% 21% 19% 20% 18% 19% 17% 17% 15% 16% 20% 13% 18% 9% 8% 6% 3% 12% 37% 44% 49% All Respondents Currently in the "Run" Stage with this Technology A closer look at this cluster of related ITaaS technologies reveals two problem technologies respondents are most likely to find highly challenging to deploy or maintain. One relates to process automation (cited by 49% of those already running the technology), and the other relates to application performance management (cited by 37% of those running the technology). Beyond the difficulty of streamlining operations via ITaaS-oriented technologies, the second main technology area deemed most challenging to deploy and/or maintain is security, which was cited by 44% of respondents who are either planning, building or already running security technologies. Faced with these varied challenges, how can IT organizations progress in the time required with the budgets available in order to become key agents of change and growth for the business? The next section offers some useful advice to help clear many of the roadblocks keeping IT from assuming its new role. Datalink White Paper 5
There are several things IT organizations can do to help overcome many of the common issues highlighted by the IDG study. How to clear the roadblocks Ease communication issues. IT communication issues can be common, especially when IT organizations attempt to define early business needs and match those needs to the right technology. This is partly due to the fact that IT tends to speak its own language, and one that is very different from that of the business. For example, one IT organization Datalink worked with had one view of the disaster recovery and backup services it offered to internal customers, but the business customers had another. The disconnect caused the IT organization to face skyrocketing costs to support its users. Datalink worked with the IT organization to develop a service catalog that defined, in business language, the various service levels of backup and recovery available and their associated costs. Datalink also worked with the organization to make sure users understood what backup really meant. This alone significantly reduced the number of times per day users required the service. Today, IT staff handles the majority of backup requests during normal business hours. Better language and a clearer definition of services allowed the IT organization to contain its costs. It also allowed the organization to transform into a more streamlined service provider to its users. Ease issues during the Plan and Build stages. Many issues occur during these early stages of IT projects because the IT team may be lessversed in the nuanced details required to successfully roll out specific IT projects. They may also be less familiar with how best to plan for (and around) certain contingencies that can otherwise derail a scheduled implementation with cost overruns and untold delay. To avoid many of these issues, Datalink recommends applying specific methodologies and proven approaches to successfully scope and define the parameters of an organization s upcoming IT project. This includes taking time at the outset to fully define specific business outcomes, then building the associated project to closely meet those outcomes. Whether it s low-impact data center migration, full-scale implementation of emerging technologies or the use of new customerfacing systems, a measured approach to the Plan and Build stages brings intended results, while easing the burden on existing IT staff. Datalink White Paper 6
Ease issues with security. Avoiding security breach is a high priority for most IT organizations. IT s efforts and investments in this area also tend to have high visibility with C-suite executives. Yet, security initiatives still rank among the most challenging to deploy and maintain. Expert resources can assess security weak spots, evaluate vendor technologies and recommend strategies to improve security in both large and incremental ways. That s likely because the trouble with security is multifaceted. Issues begin with a few erroneous assumptions about what IT security efforts can and should do. Then there s the difficulty managing and monitoring what often amounts to as many as 50+ separate security technologies in use within an organization. Added to that is the frequent attrition and lack of seasoned experts available for key areas. Then there are the classic security approaches that go well beyond technology, but must still be incorporated in order to be truly successful at mitigating threats. IT organizations with security challenges often seek expert security advice from a service provider with a dedicated security practice. These types of expert resources can assess security weak spots, evaluate vendor technologies and recommend strategies to improve security in both large and incremental ways. Sometimes, it can be a question of enabling additional security features that weren t activated during deployment. Other times, it may involve strategy definition to more closely tie security initiatives to primary business objectives. It can involve consolidating security consoles or better orchestration and security monitoring and reporting via one, integrated console. It can even come down to educating an organization that real security is more than protecting the perimeter. It s also about the level of detection and response an organization devotes to potential breaches. (This is another area where most organizations often fail.) Datalink White Paper 7
To learn more about how Datalink can help transform your IT organization, visit us at www.datalink.com or call 800.448.6314. To see the full report, visit www.datalink.com/idg-results. Easing issues associated with streamlined operations and process automation. IT organizations struggle with process automation for a number of reasons. This is largely because process automation technology first requires the organization to standardize its own, largely manual processes. Most IT teams have operated for years with informal or ad-hoc guidelines. Now that IT is trying to embrace an ITaaS approach, such informal guidelines stand in the way. They also contribute to delays in delivery of services to end users. IT staff assigned to different IT silos from the network administrator to the storage admin can cause further delays via informal, back-and-forth communication typically required before IT resources are ready. A few tips on process automation: Consider standard tools like a one-stop cloud management platform to help automate business processes and aggregate compute/network/storage into one platform. Evolve IT roles from silos of narrow expertise to broader infrastructure management and cloud generalists. Also align IT roles more closely to application development. Focus first on low-hanging fruit. Apply tactical process automation to the 5-10 tasks your IT organization handles most often, such as provisioning virtual machines. Create intuitive, IT self-service portals that enable business units to support customer self-service and streamline the process of securing IT services. Transformation: You don t have to go it alone No single report can adequately address the various issues faced by IT organizations in their quest to become a true enabler to the business. Many IT organizations will continue to face challenges as they try to move toward ITaaS delivery models. Using third-party expertise can help smooth their path considerably. It can also ensure the faster achievement of real business outcomes. Datalink works with IT organizations like yours to deliver IT transformation that helps realize business outcomes. Whether your IT organization needs to transform technologies, operations or service delivery, Datalink experts are there to help. datalink.com insight.com 2017 Datalink, an Insight company. All rights reserved. WP-ITO-2.0.03.17 Datalink White Paper 8