Bimodal IT

Bimodal IT:
How to Be Digitally Agile
- Without Making a Mess!
KimBjoern.Nielsen@gartner.com
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not
be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
The Journey Onward — to Digital Business
Pre-Web
Focus
Post-Nexus
Analog
Web
Traditional
Business
Static Web
Presence
Ebusiness
Traditional
Business
Goes
Online
D-marketing
Going to
the
Customers
D-business
Blurring
Physical and
Digital
Entities
People
Technologies
ERP
CRM
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reserved.
People
Business
CRM
Web
People
Business
EDI
BI
Portals
People
Business
Mobile
Big data
Social
Sensors
3D printing
Smart
machines
Welcome to the Digital Wild West
Where opportunities come and go quickly, and winning or
losing has meaningful consequences.
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reserved.
Gartner Tag lines 2015!
The Nexus of Forces & The Internet of Things
Generation of ”Digital First”
Digital Business through Digital Moments
The Disrupters are coming!
Every BU is a Technology Start-Up
Embrace BiModal IT
• If the rate of change on the Outside exceeds the rate of change on
the Inside, the end is near! Jack Welch
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reserved.
Digital Business Sets the Stage
Business
Process
Improve process
efficiency/effectiveness
with mobility
New models and
processes
Extend and evolve processes
Business Moment
Evolve processes into new
business models
Business Model
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reserved.
Extend and evolve models
New business models
relying on context &
mobility
There Is a "Not So Quiet“ IT Crisis Brewing
Performance
• Digital Opportunities
& Threats
• Customer & Management
Expectations
THE
QUIET
CRISIS
• IT Performance
and Contribution
Time
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reserved.
CIO’s are “flipping” Long-Held Behaviors and
Beliefs
Information & Technology
Leadership
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reserved.
Value
Leadership
People and Culture
Leadership
Bimodal
Capability
© 2015 Gartner, Inc. and/or its affiliates. All rights
reserved.
Bimodal IT Defined
Having two modes of IT, each
designed to develop and deliver
information services in its own way.
Mode 1 is traditional,
emphasizing safety and accuracy.
Mode 2 is exploratory,
emphasizing agility and speed.
© 2015 Gartner, Inc. and/or its affiliates. All rights
reserved.
Mode 1 Tries to Control the Unknown
Mode 2 Senses and Responds to Change
Are we there
Where
are they?
Are we
there
Are
we there
Are
we
there
yet ?
They yet
said
they
would be here
?yet
? We
Are
yet ?
fourThere
months
ago.
Not Yet ! Yet
This?
You Made It !
Way
Check The
Plan
Finish
Come over — the
weather's great.
Winds
Change
Are
we Of
there
Help! Check yet ?
the
Plan!
You're
sureCheck The
this is Boston? Plan
Start
We need to plan
the whole thing
upfront.
Check the
plan.
Limiting predictions to short iterations gives us
increased predictability and greater agility.
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reserved.
Mode 2 Business Engagement is Clustered, Not Sequential
IT
Business
Customer
Mode 1 Business
Engagement Is
Linear
Marketing
IT
Mode 2 Business
Engagement Is
Clustered
Client
R&D
LOB
Prod. Dev.
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reserved.
Bimodal Organizations are already here!
50%
2015
75%
2017
Bimodal IT is not a "nice to have“ and half will make a mess!
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reserved.
Bimodal IT = Marathon Runners & Sprinters.
Deeply Different, Both Essential
Mode1
Think
Maratho
n
Runner
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reserved.
Mode 2
Reliability
Goal
Agility
Price for
performance
Value
Revenue, brand,
customer experience
Waterfall, V-Model,
high-ceremony IID
Approach
Agile, Kanban,
low-ceremony IID
Plan-driven,
approval-based
Governance
Empirical, continuous,
process-based
Enterprise suppliers,
long-term deals
Sourcing
Small, new vendors,
short-term deals
Good at conventional
process, projects
Talent
Good at new and
uncertain projects
IT-centric, removed
from customer
Culture
Business-centric,
close to customer
Think
Sprinter
Bimodal suits Pace Layering
Systems of
Innovation
+
Change
Systems of
Differentiation
Mode 1
-
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reserved.
Systems of
Record
Governance
Mode 2
-
+
Select Mode 2 Projects Based on Their Mode 1 Impact
High
New Core
Impact on
Mode 1
Extend
Replacement
Island
Low
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reserved.
Bimodal Maturity
High
"A project will never scale if Mode 1 is not willing and fully supportive."
– Chris Osgood, Cofounder and Cochair, MONUM
15
You Need Bimodal Maturity to Attempt
"Extension" or "New Core" Projects
Virgin Atlantic:
Pilots Google Glass with high-value
customers
Island
Replacement
IPC:
Replaces Mode 1 credit card platform with
Mode 2 system
Extension
Luxottica:
Creates Facebook-like retailer site on CRM
platform
New Core
City of Boston:
Attempts OneCard for metro pass, library
card and school ID
© 2015 Gartner, Inc. and/or its affiliates. All rights
reserved.
Organizational Structure A — Mode 2 Reports to the CIO
CIO
Mode 1
Development
Mode 2
Development
Add
Organizational
Distance at First
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reserved.
I&O
Mode 1
Enterprise
Architecture
Fast Track:
DevOps,
Automation and
Continuous
Delivery
Organizational Structure B — Mode 2 Reports Outside IT
CEO
CIO
Mode 1
Development
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reserved.
CDO
I&O
Mode 2
Development
Critical Bimodal Capabilities
Enterprise Bimodal
Project Bimodal
Mindset and Talent
Architecture
Teaming
Engagement
Governance
Iterative Methods
Structure
Low
Maturity
Limited
Value
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reserved.
Syncing Modes
Critical
Bimodal
Capabilities
Funding
I&O
Innovation Mgmt.
Adaptive Sourcing
High
Maturity
High
Value
Digital Is Moving
To Center Stage
__
Are You?
© 2015 Gartner, Inc. and/or its© affiliates.
2013 Gartner,All
Inc.rights
and/or its affiliates. All rights
reserved.
reserved.
Bimodal IT:
How to Be Digitally Agile
- Without Making a Mess!
KimBjoern.Nielsen@gartner.com
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not
be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Top 10 Strategic Technology Trends for 2015
Merging the
Real World and
the Virtual World
Intelligence
Everywhere
The New IT
Reality Emerges
© 2015 Gartner, Inc. and/or its affiliates. All rights
reserved.
1
Computing Everywhere
2
The Internet of Things
3
3D Printing
4
Advanced, Pervasive and Invisible Analytics
5
Context-Rich Systems
6
Smart Machines
7
Cloud/Client Computing
8
Software-Defined Applications and Infrastructure
9
Web-Scale IT
10
Risk-Based Security and Self-protection
Engage in Prioritization with Pace Layering
Innovate
Differentiate
Run
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reserved.
• Outcome-driven IT sourcing
• Very fast, innovation-focused, dynamic
• Domain of "fast" IT and partnering
• Driven by demand and process improvements
• Medium-term lifecycle, change management
• Ongoing optimization, incremental value
• Run-the-business IT sourcing
• Accountable, cost-focused, adaptive
• Domain of "slow" IT production evolution
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reserved.
Risk Management
Business Process Management
Multisourcing Management
Run
Enterprise Architecture
Differentiate
Governance
Innovate
Business
Outcomes Flow
From Innovation
to Run