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Digital Transformation Accelerating The Digital Enterprise Helen Chiang/江芳韻 Research Director IDC Taiwan
Digital TransformationAccelerating The Digital Enterprise
Helen Chiang/江芳韻
Research Director
IDC Taiwan
The inter-dependence of DX, 3rd platform and IT leadership
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Digital mashups
3rd platform is the
technology enabler/platform
to accelerate DX
Digital masteries
DX is a customer-
centric business
strategy
Digital leaders
IT leadership is a
critical success
factor in digital
transformers and
disruptors
3
Source: IDC Asia/Pacific C-suite Barometer
Research 2016 (N=1,472 CxO; 667 CIO/CTO;
805 CEO/LoB) – QA7
Digitalization = business process transformation + new monetization model creation; It is about using 3rd
platform tech to create new value, relationships and business models.
Digitization = from analog to digital.
CEO’s Top Business Concerns
4
Digitalmasteries
Relationship mastery
(Omni-experience DX)
• DX is a customer-centric
business strategy
• Reach, Relevancy,
Reciprocity
• KPI: Net promoter score
Talent mastery (Worksource DX)
• Work optimization and talent
sourcing
• Process, People, Culture
• KPI: Best place to work index
Information mastery (Information DX)
• Information is at the core of the DX
economy
• Syntax, Semantics, Socialization
• KPI: % of revenue generated from
information
Operational mastery
(Operating model DX)
• Automated and agile
processes
• Scale, Scope, Speed
• KPI: Critical process cycle
time
Leadership mastery (Leadership DX)
• CEO must take the DX driver seat
• Vision, Organization structure, Commitment
• KPI: Competitive share in core and new markets
DX dimension priorities
5Source: IDC DX Spending Guide, 2016 (WW ICT+Business Services Spending); Asia/Pacific C-suite Barometer
Research 2016 (APeJ N=1,472 CxO; 667 CIO/CTO; 805 CEO/LoB) – QA3
Innovation
Change how the organization innovates
Resilience
Speed
The speed at which they deliver their products and services
Reliability
The reliability of their operations
Engage
How theyengage with
their customers
Businesses Are Transforming
6
IT Today Is Still Complex And Rigid
7
Complex magt
Cost concern
Slow response
Closed system
Bad customer
experience
New
Essential software
Infrastructure systems
21%
37%
42%
Tech Spending from IT Budget
38%
25%
37%
Tech Spending from Business Budget
30%
30%
40%
All Tech Spending (IT & Business)
Technology Spending Enterprise Budgets
8
Convergence/
Automation
Cloud
IoT
Digital Intelligence
The Road Toward Transformation of IT Infrastructure
SDX
Convergence and Automation
9
Convergence
Software
ServersStorage
Hyper Convergence
Compute
Capacity
Memory
Faster provisioning Faster IT response Scalability and elasticity Low cost
Software-defined Enhanced Agility Shared Resources/Pool Easy Automation Lower cost
10
0% 5% 10% 15% 20% 25% 30% 35% 40%
Elimincation of SAN
Rediction in technical support staff
Different type of backup
Easier to secure budget
Easier disaster recovery
Ease of set up
Speed of deployment
Scalability
What were the key motivators to deploy Hyper-converged systems?
Why Hyper Convergence?
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Top Customer Benefits
Scalibility and spend
Improved IT Staff Productivity
Faster Time to Provision
Reduce Downtime/High Avail
Improved Compute Utilization
Reduce DC, Power/Cool
Benefits: Agility, Speed, & Costs
DX and Cloud
Keeping up with demand is
impossible - IT service
requests change in type and
velocity
A Chasm Opens in the LOB -> IT Service Delivery
Model
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Outcome-Driven
services match cost with
value, connect LOB to
the technology
Disconnect between
buyer, operator, and
user of technology
Desire to match IT Expenditure with Business Performance
Scale & Speed7-10 key IaaS leaders, constantly
spending and innovating
4
Hyperscale, Density-optimized, Engineered for purpose Open Means Open
5
30% of businesses WW spend on Open Source;
OpenStack supported by all major vendors; Cross
industry data-sharing
Asset-LeanTraditional ownership model
inadequate for AGILITY. Subscription,
Leasing, Spot markets. Reserved
Instances…New financial flexibility
End of Ownership
6
Strategic
acknowledgement from IT
organizations that they do
not need to specialize in
run-the-business apps
IT’s mission to Build
or Source based on
best available
technology
Desire for Best Technology
Run by Specialists
1
Clouds
4
Increasing Cloud Adoption Can Yield
Significant Benefits
Opportunistic
Repeatable
Managed
KPI Benefit of Moving Between Levels of Cloud Adoption
Source: IDC CloudView Survey 20115 and custom research
KPI Averages Opportunistic to Repeatable
Revenue Growth 1.4%
IT Cost Reduction 29%
Strategic Allocation of IT Budget 56%
Time to Provision 47%
Meeting SLAs 20%
Cloud Investments Areas
• Hosted private cloud infrastructure services # 1
• Security tools and services# 2
• On-premises cloud systems# 3
• Hosted cloud application services# 4
Source: IDC CloudView Survey
Top Reasons To Create IoT Strategy
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24.0% 22.5% 21.7%
Increase
Productivity
Time To
Market
Process
Automation
N+415
Leading
Lagging
16
Which platform? Provisioning & support
Existing software vendors
ISVs for bespoke builds
Capture and analyze the data
Identify next actions
Data privacy Secure endpoint and
content
Integration Implementation Support
Mobile networks Wifi/small cells Etc.
Off the shelf versus bespoke build
Requirements
IoT : A Complex Ecosystem
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Which connection protocol? Which platforms?
?
The Market Desires A “Hub” On IoT
IoT and agile DevOps
Source: IDC Asia/Pacific C-suite Barometer Research 2016 (N=667 CIO/CTO) – QCIO9 and QCIO11
IoT And Intelligence
Sizing Your Digital Intelligence
0
5
10
15
20
25
30
35
40
45
50
Information Created WW
Information Created
Zeta
byt
es*
2020 = 44 ZB
2015 = 9.3 ZB
2005 = 0.1 ZB
2010 = 1.2 ZB
*A Zettabyte = 1 million Petabytes
(93%)
(91%)
(79%)
(% Unstructured)
Information created WW
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Data As A Strategic Asset
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Source: IDC LoB Spending
Guide (APJ IT Spending), 2016
IT spend funding
between business
units and IT
CxO Partnerships Are Essential For Digital
Leaders
Where You Stand?Today’s Tech Buyers
CIO Office’s Resource Share Of Wallet
CIO office’s
time/resources/
budget share of
wallet
VS&MIT ops Governance Innovation
19%34% 24% 23%
Source: IDC Asia/Pacific C-Suite Barometer 2015, (N=1452 , 667 CIO)
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• Identify Digital Transformation
Target
• Embrace the new IT trend
• Choose the right partner
• Achieve sustained growth
Accelerating Your Digital Enterprise
