Decision Imperative #2 (Competitive Strategies)

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IDC's CIO Agenda Top 10 Decision Imperatives 0-12 Organizational Impact Time (Months) to Mainstream Note: The size of the bubble indicates complexity/cost to address. 12-24 12+ Singledepartment Multipledepartments Companywide StrategicArchitecture CompetitiveStrategies PrematureObsolescence EnterpriseData 5 3 1 2 4 CIOPriorities

Already, and increasingly so over the next few years, competitive business strategies will require 3rd Platform capabilities to understand and engage with customers and partners. But for IT organizations to be competitive with external forces and the cloud, they must provide an equivalent service paradigm. This will require restructuring IT to deliver IT as a service and, in particular, to deliver ITaaS 3rd Platform capabilities focused on realizing the enterprise's competitive strategies.

Critical to this will be the CIO's ability to simplify his or her existing IT landscape to enable that longer-term enterprise competitive strategy.

Transitioning ITto a "Services"deliver model Concept - "servitude" by knowledgeable proprietor, limited selecion Concept - better immediate choicethru "self-service", less qualified assistance CAGR 2014-2020 3rd Platform Spending 2nd Platform Spending 7% 15%

Defining service interactions and allocation resources require close collaboration with LOBs

Limitations to the IT Department Being a More valuable Partner to Functional Area

Q. On a 5 point scale, where 5 is strongly agree and 1 is do not agree at all, how much do you agree with the following reasons for what you believe is limiting your IT department being a more valuable partner to your functional area?

IT takes too long to implement a new technology solution 3.17 IT does not track the return on investment on our technology investments making it difficult for me to assess success 3.15 IT approaches problems with too much rigidity, we need more flexible solutions 3.12 IT does not spend enough time with my functional area to develop the relationships needed to establish a valuable partnership 3.05

IT Impact

  1. Market availability of vast XaaS offerings will transform traditional IT delivery to a service paradigm
  2. Defining service interactions and allocating resources require close collaboration with LOBs
  3. Putting in place a simpler environment to enable IT innovation becomes a necessity

Guidance

  1. Look to the 3rd Platform as the preferred solution for new projects
  2. Rationalize the asset, application, and project portfolios to deliver variable-cost 3rd Platform capabilities with real-time ITaaS
  3. Educate LOBs about the competitive opportunities and integration requirements of 3rd Platform technologies

IDC Prediction

By 2016, 65% of Global Competitive Strategies Will Require Real-Time 3rd Platform IT as a Service

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