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The four changes in IT because of digital technology

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It's not "business as usual" in a world of digital transformation. What are the four shifts that IT must embrace in a digitally transforming world?

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The four changes in IT because of digital technology

  1. 1. Making the leap to next Four shifts needed to lay the foundation for your digital transformation.
  2. 2. It’s become a familiar story. A young entrepreneur sells his first product for an enormous sum. Next?
  3. 3. He makes incremental improvements to a range of products, leaving the world always wanting more.
  4. 4. At the same time, he keeps coming up with new inventions.
  5. 5. And he does it at a furious pace — setting the goal of a minor invention every 10 days and a major one every six months.
  6. 6. His name? It’s not Yang (Yahoo), Musk (Zip2), Dorsey (Twitter) or Fadell (Nest).
  7. 7. Source: Henry Ford Museum, Menlo Park Museum. It’s Thomas Edison.
  8. 8. Although digital has changed everything, the mindset for succeeding has not. So what’s the first shift in your digital transformation?
  9. 9. You need to undergo a fundamental change in the way you deliver new functionality.
  10. 10. Embrace innovation, continuously. A single, 18-month project that consumes IT? That’s the past. 01 S H I F T
  11. 11. For the foreseeable future, we must be focused on achieving continuous innovation in the face of ferocious competition. To get there?
  12. 12. We’ll need to be experimental and focused on continuous improvement. Just like Edison’s Menlo Park invention factory.
  13. 13. If we look at the growth “outliers” — the small percentage of businesses that grow by 5% or more year after year — they share a common trait.
  14. 14. More than other companies, the outliers act like Edison and embrace continuous innovation.
  15. 15. They’ve already made the jump from where many of us are now to what’s next.
  16. 16. Achieving continuous innovation NOW Big projects Large investment Long-time span Must-succeed mentality
  17. 17. Achieving continuous innovation NOW NEXT Big projects Large investment Long-time span Must-succeed mentality Fast-fail mentality Hundreds of transformations across the business Smaller, iterative approaches Shorter time spans
  18. 18. Achieving continuous innovation NOW NEXT Big projects Large investment Long-time span Must-succeed mentality Fast-fail mentality Hundreds of transformations across the business Smaller, iterative approaches Shorter time spans GETTING TO NEXT Speed is everything Infrastructure must be abstracted as code Containerization is required Every enterprise will need a “right mix” of hybrid IT
  19. 19. A change in processes is just one part of what’s needed to support continuous development. The other part?
  20. 20. Giving rise to fearless innovators. Transforming your business operations will involve more than just enterprise IT. 02 S H I F T
  21. 21. Customer experience. Products and services. Product group and core operations group.
  22. 22. We’ll need to democratize development and empower all those with a stake in what comes next.
  23. 23. This shift is already taking place. More than 70% of digital transformation projects are business-led. IT-LEDBUSINESS-LED Source: IDC, July 2016 28%72%
  24. 24. With business-led transformation becoming the new reality, let’s look at how we get to next.
  25. 25. Giving rise to fearless innovators Enterprise IT leads Develops applications for business groups NOW
  26. 26. Giving rise to fearless innovators Enterprise IT leads Develops applications for business groups Manufacturing Maintenance Products Customer experience Supply chain Support Non-experts from business groups develop applications NOW NEXT
  27. 27. But if our teams are cross-functional, not everyone will have 20 years of application development experience. So how do we get to next?
  28. 28. We put a framework in place that enables everyone to “fearlessly innovate” without damaging the enterprise.
  29. 29. Giving rise to fearless innovators Enterprise IT leads Develops applications for business groups Manufacturing Maintenance Products Customer experience Supply chain Support Non-experts from business groups develop applications Non-experts can innovate without worrying about security, quality and assurance, performance flexing with demand Non-experts can easily create composable apps Non-experts can insert APIs onto systems of record NOW NEXT GETTING TO NEXT
  30. 30. Giving rise to our fearless innovators will accelerate business operations transformation.
  31. 31. Empowering them and ensuring their decisions are driven by the right data? That will require two final shifts.
  32. 32. Going to the edge (and back). Today, most enterprises send and analyze all their data at the center of their operations. 03 S H I F T
  33. 33. But what happens if the data we’re analyzing is 4K 3D video from security feeds?
  34. 34. Or if the data is coming from thousands of sensors in a facility?
  35. 35. To accelerate to next, we’ll need to start empowering people and machines to make decisions at the point of impact — the edge.
  36. 36. Web Mobile Point of sale Empowering the edge NOW Decisions made at the center
  37. 37. Web Mobile Point of sale Empowering the edge NEXTNOW Decisions made at the edge Decisions made at the center
  38. 38. So what technology is needed to support decision-making at the edge?
  39. 39. Decisions made at the center Decisions made at the edge Web Mobile Point of sale Edge-optimized compute Beacons and Wi-Fi geo-positioning Analytics of human and IoT data Protection for increased attack surface Connected applications in anything and everything Empowering the edge NEXTNOW GETTING TO NEXT
  40. 40. Advancing data science. As with the democratization of development, we’ll need to rethink our approach to data. 04 S H I F T
  41. 41. Instead of expert users, we’ll have business users.
  42. 42. Instead of analyzing a single type of data, we’ll analyze all kinds of data. So what does this shift look like?
  43. 43. Analysis of transactions occurs in the past Advancing data science NOW
  44. 44. Analysis of transactions occurs in the past Data from everywhere analyzed in real-time Analysis on human data Analysis on transactions Advancing data science NEXTNOW
  45. 45. What’s needed to get us there?
  46. 46. Data science that understands humans  Data science that isn’t swamped by mass of Internet of Things (IoT) data  Data science platform that the business can play with Analysis of transactions occurs in the past Data from everywhere analyzed in real-time Analysis on human data Analysis on transactions Advancing data science NEXTNOW GETTING TO NEXT
  47. 47. We talked about what’s needed to get to next across four key shifts. But the reality?
  48. 48. Today, 60% of the typical IT budget goes toward “keeping the lights on.”
  49. 49. To make the shifts, we need to free up enterprise IT capacity so they can innovate. How?
  50. 50. By creating a new blueprint for IT in the digital era.
  51. 51. Free up enterprise IT’s capacity to innovate Platform applications that deliver for continuous, experimental innovation Platform to improve customer experiences at the Edge Analytics platform to accelerate time to insight and action
  52. 52. This is how digital leaders are preparing for — or already meeting — the demands of the future.
  53. 53. Ready to start powering your digital transformation?
  54. 54. Start with the Digital Transformation Index. This short survey will index your progress against hundreds of enterprises. SHARE c05238009, November, 2016 © Copyright 2016 Hewlett Packard Enterprise Development LP. The information contained herein is subject to change without notice.

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