#DBS2016

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2. © 2016 Information Services Group, Inc. All Rights Reserved.
Sridhar Vedala, Partner, ISG
Thrive in the Digital Era with
IT Transformation

3. © 2016 Information Services Group, Inc. All Rights Reserved.
Reality: New Business
Models are Driving Digital
Disruption
What is Driving Digital Disruption
New Technologies?
TAXI
@
Business
Models

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Characteristics of a Digital Enterprise
Back End:
Efficient
Operations
Front End:
Terrific
Customer
Experience

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Technologies,
Practices &
Operating Models
Key Digital Disruption Trend:
Universal Adoption of Digital Practices
and Technologies
Innovators
LaggardsMajority is
Transforming

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Airlines
Understanding the Transformation Journey of the Majority:
ISG’s Interaction with CXOs to Evaluate the
Impact of Digital on IT
Automotive
Pharma
Insurance
Trains
Nuclear
Energy
Fertilizer
Banking

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Enterprise Digital Transformation Journey:
Three Main Areas
1 Business Transformation
Digital
Transformation
Journey
Business-IT Collaboration2
IT Transformation3

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1. Business Transformation Initiatives
 Map customer journey to implement digital solutions to engage
and capture customer data and insights
 Engage with customers across all touchpoints by
implementing omnichannel solutions
 Process simplification and standardisation
 Asset optimisation and cost savings through sensors and big
data
 Straight through processing through automation
Enhance
Customer
Experience
Enhance
Customer
Experience
Transform
Business
Processes
Transform
Business
Processes

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1. Business Transformation Initiatives
 Implementation/piloting of big data solutions
 Fundamental rethinking of existing enterprise data models
 Flexible integration of external data feeds
Anticipate
Business
Volatility
Transform
Business
Processes
 Achieve competitive advantage
 Reach new customer segments
 Grow revenues by cross-selling
New Channels
of Revenue/
Access to
Customers
Enhance
Customer
Experience

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2. Business-IT Collaboration
IT Organizations are Moving from their
Traditional Roles to Drive Business Strategy
Business Focus
CFO
CEO
Business
Stakeholders
COO
CMO
Traditional Model
Infrastructure
Incidents
Resources
Cost
IT Projects
CIO
&
IT Org
 Enterprises are increasingly choosing tech-
savvy CEOs
 CIOs are reporting to business leaders
rather than CFOs
 CIOs are now integrally associated with
business strategy
 CIOs are focusing on change initiatives

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 IT organizations are moving away from
being technology creators to technology
consumers to enable business value
 Organization wide
change management
to adopt new
operating models
Organization
Change
Management
Workforce
Reinvigoration
2. Business-IT Collaboration Initiatives
 Relook at enterprise architecture to
design business aligned architecture
 New operating models
(agile) & organizational
structure for effective
collaboration and value
creation
Enterprise
Architecture
Operating
Models
Project
Portfolio
Prioritization
Overall
Program
Management
 With a holistic view of
enterprise, IT is
playing a critical role
in project portfolio
prioritisation and
program
management
Service
Orchestration
Business-IT
Alignment
Change
Management
Program
Management

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 Achieve run cost
savings to invest in
change
 Improved time to
market
 Standardisation and
simplification
Automation
Agile
Cloud Delivery
Models
 Enterprise security
 Effective governance
 Integration and
collaboration
 Optimum resource
utilization
Governance,
Service
Integration &
Management
Enterprise
Security
3. IT Transformation Initiatives
 Business agility and
flexibility
 Low cost of ownership
 Align with enterprise
architecture
 Transparency for
decision making
IT as a
Business
Engage with
Technology
Ecosystems
Use-case Scout
Innovation
Labs
 Technology led
business innovation
 Competitive
advantage
 Steering the complex
ecosystem of start-
ups
Operational
Efficiency
Service
Defined
Enterprise
Governance
Innovation
Enabler

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Summary and Q&A:
What is Your Digital Transformation Journey?
Transform
Infrastructure
Transform IT
Transform Business
Strategy &
Planning
Implementation
& Integration
Business
Innovation
Migrations &
Adoption
Service Design
& Governance Service
Brokering
Native
Applications
Establish Explore Activate Apply
Business Value

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