Mais conteúdo relacionado Semelhante a The value proposition of the IT unit of the future (20) Mais de Microsoft Schweiz (20) The value proposition of the IT unit of the future1. Dr. Martin Mocker
Research Scientist
Center for Information Systems Research (CISR)
MIT Sloan School of Management
Phone: (617) 253-2348, Fax: (617) 253-4424
mmocker@mit.edu; http://cisr.mit.edu
Microsoft Switzerland Executive Circle Summit
The Value Proposition of the IT Unit of the Future
This research was made possible by the support of CISR sponsors and patrons.
December 4, 2012 in Zurich
IT unit
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Mocker
2. 1
Predicting the future…
Trying to predict the future is like trying to drive down a country road
at night with no lights while looking out the back window.
-- Peter F. Drucker
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Mocker
3. 2
CISR Research Patrons
A.P. Moller Maersk (Denmark)
AECOM
Aetna, Inc.
AGL Energy Limited (Australia)
Akamai Technologies
Allianz Global Corporate & Specialty
Allstate Insurance Co.
AMP Services Ltd. (Australia)
ANZ Banking Group (Australia)
Australia Post
Australian Taxation Office
Banco Bradesco S.A. (Brazil)
Banco do Brasil S.A.
Bank of America
BBVA (Spain)
Bemis Company, Inc.
Biogen Idec
Blue Cross Blue Shield of Massachusetts
BNP Paribas (France)
BP (U.K.)
BT Group (U.K.)
Canada Pension Plan Investment Board
Canadian Imperial Bank of Commerce
Capital One Services, LLC
CareFirst BlueCross BlueShield
Chevron Corp.
CHRISTUS Health
Chubb & Son
Commonwealth Bank of Australia
Credit Suisse (Switzerland)
DWS (Australia)
Encana Corp. (Canada)
Equinox Ltd. (New Zealand)
ExxonMobil Global Services Co.
Fidelity Investments
FOXTEL (Australia)
France Telecom
Holcim Brasil S.A.
Insurance Australia Group
International Finance Corp.
Itaú – Unibanco S.A. (Brazil)
Johnson & Johnson
Leighton Holdings Ltd. (Australia)
Level 3 Communications
ManpowerGroup
Marathon Oil Corp.
MetLife
NASA
Nomura Research Institute, Ltd. (Japan)
Origin Energy (Australia)
Parsons Brinckerhoff
PepsiCo Inc.
Principal Financial Group, Inc.
Raytheon Company
Reed Elsevier
Schneider Electric Industries SAS
Sears Holdings Mgmt. Corp.
Standard & Poor’s
State Street Corp.
Sunoco, Inc.
Swiss Reinsurance Co. Ltd.
(Switzerland)
TD Bank (Canada)
Teck Resources Ltd. (Canada)
Telstra Corp. (Australia)
Tetra Pak (Sweden)
Time Warner Cable
Trinity Health
United States Dept. of Health &
Human Services
United States Postal Service
Unum Group
USAA
VF Corporation
Westpac Banking Corp. (Australia)
Woolworths Limited (Australia)
World Bank
MIT CISR gratefully acknowledges the support and contributions
of its Research Patrons and Sponsors.
CISR Research Sponsors
The Boston Consulting Group, Inc.
EMC Corp.
Gartner, Inc.
IBM Corporation
Microsoft Corporation
Oliver Wyman, Inc.
Tata Consultancy Services
MIT CISR’s Mission
Founded in 1974, MIT CISR delivers
practical, research-based insights on
how digitization enables enterprises to
thrive in a fast-changing global economy.
MIT CISR engages its community through
research, electronic research briefings,
working papers, meetings, and executive
education.
2012 MIT CISR Research Projects
Doing Business Digitally
Strengthening Your Digital
Business Model
Building Digitized Platforms Can Be Slow:
What Are the Alternatives?
Digital Innovation: Designing
Customer-centric Products and Services
Redesigning Organizations
for the Digital Economy
The Next-generation Enterprise: Designing
for an Increasingly Digital Ecosystem
Case Studies in Social Media Innovations
BYOD: Radical Changes to Managing
Technology and the People and
Processes Relying on It
Working Smarter: Seizing the
Opportunities Created by Ubiquitous Data
Rethinking the Role of the IT Unit
Managing Your Firm’s Total Digitization:
The Next Frontier
Business Complexity: Shifting IT
from Problem to Solution
Managing IT Supply and Demand:
How to Build a World-Class
Service Organization
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© 2012 MIT Sloan CISR
27 September 2012
5. 4
… the current value proposition of the IT unit becomes
insufficient
= ENABLE
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
6. 5
The new value proposition emphasizes innovation and
business value
Building and leveraging
platforms involves a value cycle
rather than the traditional value
chain
– Build: delivering new
technology, process, and
information-based capabilities
– Run: ensuring reliable support
of these capabilities
– Exploit: generating ongoing
business value from capabilities
– Commit: allocating resources
to ensure innovations address
strategic priorities More Concentrated in IT
More Distributed
Business
Value
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
7. 6
IT Units are better at Run and Build than Commit and Exploit
Source: Survey of 75 MIT CISR sponsors, November 3, 2011Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
2,3
3,7
Exploit
4,0
Commit
Build
Run
Label 5,0
2,9
But Run and Build are going away (to partners)
1
Ad hoc,
locally driven
processes
2 3
Some
Enterprise-wide
Repeatable
processes
4 5
Consistently
Executed
Enterprise-wide
processes
8. 7
There are many opportunities to exploit a platform
Digital
Innovation
Exploit
Business
Process
Optimization
Business
Intelligence
• Automating tasks machines
do better than people
• Facilitating collaboration
among knowledge workers
• Making products and services
available electronically
• Data warehousing
and analytics
• Empowering front-line
workers with
information
• Facilitating
meaningful access to
unstructured data
• Design of digital products
and services
• Value-added information
based services
• Enabling “sense and
respond” experiments
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
9. 8
Taking charge of the IT value cycle: Commit
Commit involves articulating a
company’s strategic vision and
then allocating business and IT
resources to enact that vision.
Commit requires that
management articulate a
vision in operational terms
Most firms aren’t very good at
commit
– Only 39% of CIOs rate their
senior executives as effective
in making prioritization
decisions1
Commit requires very different
thinking about business
strategy
1Source: MIT CISR/BCG survey of 82 CIOs in Fall 2009.
Business
Value
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
10. 9
Committing on one of four operating models
Source: Adapted from Enterprise Architecture as Strategy: Creating a Foundation for Business
Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.
BusinessProcessIntegration
HighLow
Low High
Business Process Standardization
Diversification
Independent business units with
different customers and expertise
Key IT capability: provide economies
of scale without limiting independence
Coordination
Unique business units with a need
to know each other’s transactions
Key IT capability: access to shared
data, through integrated interfaces
Unification
Single business with global process
standards and global data access
Key IT capability: enterprise systems
reinforcing standard processes and
providing global data access
Replication
Independent but similar business
units sharing best practice
Key IT capability: provide standard
infrastructure and application
components for global efficiencies
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
11. 10
Where IT is in the org chart does NOT matter
– What IT “does” does
Source: J. Ross and C. Beath, “USAA: Organizing for Innovation and Superior Customer
Service,” MIT CISR Working Paper No. 382, December 2010.
President and CEO
4 Additional Shared Services:
People, Finance, Legal,
Communications
Enterprise
Strategy &
Planning
3 Lines of Business:
P&C, FASG, Bank
Member
Experience
Chief Admin
Officer
IT
Enterprise
Strategy
Enterprise
Transformation
Business
Solutions
Innovation
Architecture
Project
Delivery
Enterprise
Business
Services
Business
Applications
Support
IT Operations
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
12. 11
Some practices that help reposition the IT unit for Exploit and
Commit
Start debates on your enterprise’s most important operational
capabilities
Focus the IT unit on delivering and exposing business value
Help IT people learn to say “no” regularly (albeit
diplomatically)
Seed business functions with IT expertise; seed IT with
business expertise
Prepare for consumerization and The Cloud—they accelerate
the opportunities for using IT strategically
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Ross
13. 12
Predicting the future…
Trying to predict the future is like trying to drive down a country road
at night with no lights while looking out the back window.
-- Peter F. Drucker
The best way to predict the future is to create it.
-- Abraham Lincoln
Center for Information Systems Research (CISR)
© 2012 MIT Sloan CISR - Mocker