2. WEBINAR Future IT Organizational Models Will Be Service-Based
Marc Cecere, Vice President, Principal Analyst
November 17, Call in at 10:55 a.m. Eastern time

4. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

5. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

6. Objectives which are or were key drivers of digital transformation
Sample size: 2,810 global services decision-makers; Source: Forrester’s Global Business Technographics® Business And Technology Services Survey, 2016

7. High priority IT initiatives over the next 12 months?
Base: 18,610 business and technology decision-makers and influencers; Source: Forrester’s Global Business Technographics® Priorities And Journey Survey, 2016

8. Three-fourths of companies are either investigating or undergoing a digital transformation
Base: 2,810 global services technology and decision-makers; Source: Forrester’s Global Business Technographics® Business And Technology Services Survey, 2016

9. More than one-third say reorganizing IT over the next 12 months is a high priority
Don’t know
High priority
Base: 1,860 global services technology and decision-makers; Source: Forrester’s Global Business Technographics® Business And Technology Services Survey, 2016

10. Who’s leading transformations
Base: 2,484 global services technology and decision-makers; Source: Forrester’s Global Business Technographics® Business And Technology Services Survey, 2016

11. How are they restructuring to increase agility? (Top 5)
Separating digital from nondigital
Base: 925 global services technology and decision-makers; Source: Forrester’s Global Business Technographics® Business And Technology Services Survey, 2016

12. In addition, we are hearing from IT clients that . . . .
Business-led technology needs guidance.
IT is changing it’s role with the business.
Skills gaps are in specific areas.
“One IT” is a consistent mantra.
Agile and DevOps techniques are expanding.

13. What’s the next? AoC has moved the focus externally.
Services of all sorts are taking over.
Agile and DevOps methods are expanding and increasing.
Business people are performing more traditional lT activities.
IT is centralizing structurally and increasing global consistency.

14. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

15. Near term: five to 10 years

16. Internal and external customers
Over the next five to 10 years, IT will be smaller, flatter, and more specialized
Tech builders
Size
Structure
Speed
Focus
Skills
Pyramid structure
Slow
Internal
Mixed
Small and leveraged
Rhombus
Fast and iterative
Internal and external customers
Narrow and broad
Current IT
Future IT

17. IT will be smarter and faster
Manual processes will be automated.
Agile and cloud are givens.
Generalists who build, deploy, and maintain technology will be replaced by specialists in data, security, BRP, Agile, cloud, etc.

18. IT will rely on external services and focus on internal and external customers
Services will be provided internally and externally.
If it’s not “core to the business and internally differentiated,” it’s external-sourced.
Functionality will come out in clumps defined by product managers.

19. IT will be smaller and selectively specialized
Much smaller in numbers
Many roles will disappear or change and some new ones will emerge.
Automation and external services providers will eliminate manual jobs and those which do not differentiate.
Structure will shift from a pyramid toward a diamond.

20. Specialized groups will address skills and legacy problem
Internal consulting groups or centers of excellence will advice clients and leverage hard to find skills.
Digital groups will separate new from legacy.

21. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

22. With increased use of services, roles focus on client facing areas
Stressing skills in:
Key roles affected
The focus moves to:
Applications
Relationship management
Client/vendor management
Infrastructure
Strategic vendor management
External customers
Data
Project/program management
Governance
Vendor management
Portfolio management
Innovation
Architecture
Customer experience
Architecture and strategy
Relationship management
Automation
Product management
Data
Business processes
Security

23. Some roles will change dramatically
Architecture and strategic planning will combine and focus externally.
Vendor management will shift to external.
Services integrator/manager will manage the portfolio of internal and external services.

24. Some roles will change dramatically (cont.)
Solutions architects are the technical equivalent to service managers.
Design (e.g., CX) changes
Infrastructure and applications will manage external services.

25. And there will be some “new” roles in IT
Product owners will treat IT services as products.
Automation specialists will obliterate manual processes that peek out of their spider holes.
Services integrator/broker
“Methodologist”
Solutions architects are the technical equivalent to service managers.

26. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

27. These are large organizations and change will not be immediate
25% on cloud
20% of IT-driven by business
Small reduction in size
30% is agile.
Little change in structures
90% cloud and external services
Dramatic shrinkage (50% to 75%)
Service and DevOps structures
2020
2030

28. KPMG’s next gen IT operating model is one example

29. And there are some initial thoughts on structure
CIO
Projects
Client facing
Back office
Apps services,
remote office, and
other
CEO
Traditional IT
Event marketing
Customer service
CIO
Strategic services
Local services
Global services

30. Long term: 10 to x years

31. Insulated from automation
Long term: IT jobs that lack creativity or social interaction will be automated
Insulated from automation
Business model change
Change management
Agile development
Creativity
Process redesign
Image source: KPMG (
Sources: Carl Benedikt Frey and Michael A. Osborne, “The Future of Employment: How susceptible are jobs to computerisation?” University of Oxford, September 17, 2013.
Framework courtesy of KPMG’s “Rise of the humans”
Waterfall development
Backup
Job scheduling
Social interaction and social intelligence

32. Agenda
What’s driving the future of IT?
Where is IT going?
Which way are roles going?
Some initial thoughts on structure
Final thoughts

33. What can you do? Short-term Long-term, get ahead of automation
Create an operating model (or just a vision) and look for high-priority gaps.
Fill gaps with software, training, hiring, and/or contractors.
Deploy IT-in-a-box tools as they mature.
Long-term, get ahead of automation
Encourage business process data collection.
Move to evidence-based IT and cognitive technologies.

34. Marc Cecere