Digitization changes everything. So what steps should you take to build the foundation for your IT organization’s digital transformation

1. Making the leap to next
Four shifts needed to lay the foundation for your digital transformation.

2. It’s become a
familiar story.
A young entrepreneur
sells his first product
for an enormous sum.
Next?

3. He makes incremental
improvements to a range
of products, leaving
the world always
wanting more.

4. At the same time,
he keeps coming up
with new inventions.

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. His name?
It’s not Yang (Yahoo),
Musk (Zip2),
Dorsey (Twitter)
or Fadell (Nest).

7. Source: Henry Ford Museum, Menlo Park Museum.
It’s Thomas Edison.

8. Although digital has
changed everything,
the mindset for
succeeding has not.
So what’s the first
shift in your digital
transformation?

9. You need to undergo
a fundamental change
in the way you deliver
new functionality.

10. Embrace innovation, continuously.
A single, 18-month project that
consumes IT?
That’s the past.
01
S H I F T

11. For the foreseeable
future, we must be
focused on achieving
continuous innovation
in the face of ferocious
competition.
To get there?

12. We’ll need to be
experimental and
focused on continuous
improvement.
Just like Edison’s Menlo
Park invention factory.

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. More than other
companies, the
outliers act like
Edison and embrace
continuous innovation.

15. They’ve already made
the jump from where
many of us are now to
what’s next.

16. Achieving continuous innovation
NOW
Big projects
Large investment
Long-time span
Must-succeed
mentality

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. 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. A change in processes is
just one part of what’s
needed to support
continuous development.
The other part?

20. Giving rise to fearless innovators.
Transforming your business operations
will involve more than just enterprise IT.
02
S H I F T

21. Customer experience.
Products and services.
Product group and core
operations group.

22. We’ll need to
democratize
development
and empower
all those with
a stake in what
comes next.

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. With business-led
transformation
becoming the new
reality, let’s look
at how we get
to next.

25. Giving rise to fearless innovators
Enterprise IT leads
Develops applications
for business groups
NOW

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. 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. We put a framework in place that enables
everyone to “fearlessly innovate” without
damaging the enterprise.

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. Giving rise to
our fearless
innovators will
accelerate business
operations
transformation.

31. Empowering them
and ensuring their
decisions are driven
by the right data?
That will require
two final shifts.

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. But what happens
if the data we’re
analyzing is 4K
3D video from
security feeds?

34. Or if the data is coming
from thousands of
sensors in a facility?

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. Web
Mobile
Point of sale
Empowering the edge
NOW
Decisions
made at
the center

37. Web
Mobile
Point of sale
Empowering the edge
NEXTNOW
Decisions
made at
the edge
Decisions
made at
the center

38. So what technology
is needed to support
decision-making at
the edge?

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. 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. Instead of expert
users, we’ll have
business users.

42. Instead of analyzing
a single type of data,
we’ll analyze all kinds
of data.
So what does this
shift look like?

43. Analysis of transactions
occurs in the past
Advancing data science
NOW

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. What’s needed
to get us there?

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. We talked about what’s
needed to get to next
across four key shifts.
But the reality?

48. Today, 60% of the typical
IT budget goes toward
“keeping the lights on.”

49. To make the shifts,
we need to free up
enterprise IT capacity
so they can innovate.
How?

50. By creating a new
blueprint for IT
in the digital era.

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. This is how digital
leaders are preparing
for — or already
meeting — the
demands of the future.

53. Ready to start powering your
digital transformation?

54. Start with the
Digital Transformation Index.
This short survey will index your progress
against hundreds of enterprises.
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c05238009, November, 2016 © Copyright 2016 Hewlett Packard Enterprise Development LP. The information contained herein is subject to change without notice.