As reality sets in, enterprises will now scramble to reset long-term plans while taking hasty and chaotic near-term actions to survive and many enterprises may not even survive in this global downturn.
IT now plays a more prominent role in overcoming the business challenge during this global economic downturn. Survivability of any organization will depend on the Digital Fitness of IT. Convergence of Processes, Systems and Data at Scale and Speed are some of the ingredients that go into a Digital Fitness.
Traditionally, IT has been measured as a necessary expense for doing business, be it OPEX or CAPEX. This metric doesn’t really tell the story anymore. Financial metrics don’t really measure the fitness level of IT to support business. In this “new normal,” IT must be measured by the flexible, nimble, composable, and consumable attributes of business.
Explore how IT leaders can create a Digital Fitness plan by taking short-term, mid-term and long-term actions, embracing the new normal.
Key Takeaways -
- How to Respond to the Unprecedented Times
- Defining Digital Fitness and IT’s New Normal
- Organizational Impedances towards Digital Fitness
- Behavior and Organization for IT’s New Normal
- Digital Fitness Roadmap and Metrics to Measure Success
For more details, write to us at marketing@sageitinc.com
Website - www.sageitinc.com
Voiceover of this ppt - https://www.youtube.com/watch?v=47VKJ1OqAf0
2. Key Takeaway From This Webinar
2
IT’s New Normal
#1
How to
Respond to the
Unprecedented
Times
#2
Defining Digital
Fitness and IT’s
New Normal
#4
Behavior and
Organization for
IT’s New
Normal
#5
Digital Fitness
Roadmap and
Metrics to
Measure
Success
#3
Organizational
Impedances
towards Digital
Fitness
3. 3
Aravind Kashyap
CEO, Sage IT
▪ 25+ years experience with unique ability to drive
businesses globally with strategic and operational
expertise
▪ Expertise in digital transformation, technology
management and global sourcing
▪ Remit includes value analysis, communications, strategy-
operational alignment and international expansion
Kerrie Hoffman
Principal and Co-founder,
Get Digital Velocity.
▪ 30+ years experience as an intrapreneur and business
transformer
▪ Digital Advisor helping companies accelerate the move to
frictionless business and Certified Business Coach
▪ Keynote Speaker at Industry Venues and #1 Bestselling
Business Author
IT’s
Speakers
4. Introducing Digital Fitness
IT’s Complexity and
Business Dimension
IT’s New Normal
Starting Digital
Fitness Journey
Questions & Answers
AGENDA
IT’s New Normal
How Companies are
becoming Digitally Fit
4
5. It is not the strongest of the species that
survives, nor the most intelligent,
but the most responsive to change.
5
6. A Muted World Recovery to COVID-19
115
110
105
100
95
90
85
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020 2021
Real GDP Growth
Local currency units indexed, 2019 Q4=100
World
United states
Eurozone
China1
China
-3.9%
-2.7%
USA
-10.6%
-8.4%
World
-6.2% -4.7%
1. Seasonally adjusted by Oxford Economics
Real GDP drop
2019 Q4-2020 Q2
% change
2020 GDP
growth
% change
Time to return
to pre-crisis
Quarter
-12.2%
Eurozone
-9.7%
2023 Q3
2023 Q1
2022 Q3
2021 Q2
Credits: Oxford Economics
6
7. It is a Tsunami of More Complex Issues Ahead…
COVID-19
Initial Issues
Economic
Recession
Return to
Work
A New
Normal
• Will we be in this
situation for weeks
or months?
• What will return to
work really look like
and how can I do it
without
endangering my
people?
• We are in the
middle of the
biggest demand
drawdown since
WW2.
Do we have a
plan to survive
that puts
everything on
the table?
• How do I protect
my people?
• How do I ensure
transparency
with customers?
• How do I
stabilize my
supply chain?
• How do I ensure
working capital?
Business as
usual issues
Credits: Mckinsey & Co
• This kind of sea-
change, for this long
a time, will mean that
the world post
COVID-19 could look
very different than
the world before it
• Do we know the big
changes and what
it means?
7
Reimagination ReformReturnResolve Resilience
8. The condition of being
physically fit and healthy
The quality of being
suitable to fulfill a
particular role or task
An organism’s ability to
survive and reproduce
in a particular environment
The condition of being fit and
resilient to handle changing
business conditions
The quality of being suitable
to meet customer needs of
faster, better, cheaper, larger
and steadier
A business ability to
survive and innovate
under all conditions
Defining IT’s Digital fit-nessDefining fit-ness
Introducing Digital Fitness – IT’s New Normal
8
9. Introducing Digital Fitness
IT’s Complexity and
Business Dimension
IT’s New Normal
Starting Digital
Fitness Journey
Questions & Answers
AGENDA
IT’s New Normal
How Companies are
becoming Digitally Fit
9
10. Organizations traditionally have adopted a Teams Approach
to Tackle the Situation
10
Nerve Center
Team – Deliver
Execution Team(s)
Deliver quickly & flawlessly
on priorities provided by
“Decide” team
Team – Decide
Integrated Operations Team
Ensure “Deliver” goals are current
& progress is occurring; decide
whether to trigger a strategic move
Team – Discover
Scenario Planning Team
Evaluate possible scenarios –
near-term to long-term & derive
implications; craft one planning
scenario for other teams
Team – Design
Strategic Moves Team
Craft a portfolio of
strategic actions with
clear trigger points
Credits: Mckinsey & Co
11. Core concept:
Create an organization that can Observe, Orient, Decide and Act
faster than the environment
John Boyd was a Colonel in the U.S. Air
Force, whose ideas on the art of war
revolutionized U.S. military thinking,
especially after the Vietnam war.
Boyd’s key concept: The OODA loop.
The key to victory is to be able to make
appropriate decisions faster that the rate at
which the environment evolves.
John Boyd’s
OODA loop
Observe
Orient
Decide
OODA loop of the effective organization
OODA loop of the environment
Nerve Center Design is Based on Military Command Principles
Act
11
12. The Reality is Where Does Your Company Fall and How Does it
Tackle the Situation
Traditional
IT for Business Capabilities
IT as a responsive center to
business needs
Progressive
IT for Market Advantage
IT as a proactive center to
build business advantage
Legacy
IT for Business Operations
IT as a cost center to run
business operations
Digital
IT for Strategic Advantage
IT as a strategic center to
innovate business
continuously
12
13. Risk & Compliance
Management
Integrated Risk Strategy
Your IT Organization is Complex and Does Not Help the Cause either
IT Business
Management Governance
IT Solution
Delivery
IT Services
Support
Business Program Management
Business Technology Strategy
Ent. Architecture Roadmap
Stakeholder Communications
Sourcing Strategy
IT Resilience Strategy
Regulatory, Compliance &
Security Strategy
Enterprise Information
Security Architecture
IT Strategic Direction
Setting
Release Management
Policies & PMO
Definition of Standards &
Methodologies
Solution Architecture &
Prioritization & Authorization
of Business Change requests
Approvals of Long Range Planning,
UAT, Tech Refresh Time frames, etc.
Service Delivery Strategy
IT Portfolio management
Services Marketing planning
Financial Management
Sourcing Model
Unified Regulatory & Compliance
Roadmap
Information Risk Management
Information Security framework
Business Continuity & DR
Planning
Sourcing Management
Demand Management
Performance planning
Financial Planning
Enterprise Data Model
Solutions Scheduling
Platform Architecture
Tools & Service Automation
Capacity Planning
Third Party Maintenance
agreements
Resource Planning
Service Level
Management
Service Catalogue Creation
& management
Service Level Framework
Implementation
Procurement
BCP Implementation
Audits & Controls
Implementation
Information Security Architecture
Assessments & Certifications
Governance Council
Set-up (Audit council,
Change Control Board, etc.)
Governance process &
Change Management
Services & Solution Creation
Change & Release Implementation
Solution Testing
Quality Assurance
Support Services delivery
organization set up
Change & Service Request
Implementation
Communication management
CSAT
Charge back
Contract Management
Security Infrastructure Management
Risk Management
BCP testing & maintenance
Compliance monitoring & reporting
Vendor Management
Performance Management
Solution rollout
Technical Project Management
Infrastructure Support Services
Application Support Services
Resource optimization
End User Support servicesPerformance Measurement
Approvals of
Change Control,
Documentation, etc.
Business Requirements
Analysis & Specs
13
Plan &
Design
Implement
Operate &
Optimize
Strategy
14. Introducing Digital Fitness
IT’s Complexity and
Business Dimension
IT’s New Normal
Starting Digital
Fitness Journey
Questions & Answers
AGENDA
IT’s New Normal
How Companies are
becoming Digitally Fit
14
15. Enablers
Automation
Platforms
Open source
Cloud
Analytics
Mobile First
Digital
AI
Virtual Reality
Operating
Models
As-a-Service
Agile
Delivery
Innovation
Focus
Areas
Risk &
Compliance
Organization
Change
Management
Eco-system
Run Change Innovate
Old Paradigm of IT : Run, Change and Innovate
15
• Digital first for all parts of the Organization
• Transform while managing costs down
• Address tactical and strategic priorities
• Standardize. Simplify. Scale.
• Business performance view of IT
16. Business Interactions are Increasingly becoming boundary-less,
inter-dependent and market-aligned
16
Customers
Experience
Platforms
Ecosystems
Platforms
Things Employees
Employee
Collaboration
& Workplace
Organization
Knowledge
Management
Decision Support
Systems
Industry &
Partner–Run
Ecosystems
Enterprise–Run
Ecosystems
Customers–Facing
& Public APIs
Social
Networks
Customers
Portal & Apps
Multichannel
Interaction &
Commerce
Connected
Things
(Customer)
Connected
Things
(Partner)
Connected Things
(Enterprise)
Endpoint
Computing
Customers
Analytics
Partner &
Supplier Analytics
loT
Platforms
IT
Platforms
loT Analytics
OT Systems
Business & Operational
Analytics
Back–Office
Systems
Core
System
Customers Partners
17. IT’s New Normal Approach Takes a Systems Approach to deal
with the Complexity
System of Differentiation - Business Alignment System of Innovation - Lab and Dev Factories
System of Record - Shared Services System of Engagement - Center of Excellence
• Direct To Consumer channels
• Personalization
• Product Lifecycle management
• Planning & Forecasting
• Finance & Accounting
• Human Capital Management
• Account Payable/Receivable
• Quote to Cash Management
• Digital Platforms
• Product Innovation
• Advanced Analytics
• Channel Innovation
• Interoperability
• Insights & Advanced Analytics
• Customer Relationship
• Work force Enablement
DifferentiatedStandardBusinessProcess
Digital Experience
SAAS Infrastructure
Business Outcomes
Institutionalize
PAAS Infrastructure
Extended Ecosystem
Modernize
Hybrid Infrastructure
Process and Quality
Retain, Replace, Retire and Modernize
IAAS Infrastructure
Bots and Automation
17
EvolvingStandard Technology
Agility/SpeedAlignment Skill Requirements
18. To Create a Digitally Fit Organization, IT Leaders have to
Continuously Transform along the 4 Axis
18
IT
Innovation
New Product
Engineering
Data &
Intelligence
Digital
Experiences
Customer
Service
Service
Catalog
SaaS / PaaS / IaaS/
Hybrid Cloud
Automation
IT-OT
Convergence
API
Integration
Enterprise
Integration
Acceleration
Experience
Simplification
Connected
19. Introducing Digital Fitness
IT’s Complexity and
Business Dimension
IT’s New Normal
Starting Digital
Fitness Journey
Questions & Answers
AGENDA
IT’s New Normal
How Companies are
becoming Digitally Fit
19
20. Roadmap to Get to IT’s New Normal
Immediate (1-8 Weeks) Mid-term (8-24 Weeks)
• Initiate business continuity procedures
• Categorize essential, non-essential,
discretionary IT services
• Initiate direct communication channels
• Create cross functional rapid response
teams
• Categorize IT portfolio into systems
(Records, infrastructure, data,
engagement, differentiation, innovation)
• Prioritize systems and create service
catalog to address them
• Evaluate IT team’s current skills and
capabilities
Long-term (24+ Weeks)
• Re-imagine customer journeys across front and back
office functions
• Re-imagine IT-business alignment (People, process and
technology alignment)
• Re-imagine IT team skills and capabilities for future
• Re-imagine IT organization structure and how to support
business growth
• Create and deliver capacity (Infra, applications,
technology) to business teams
• Deliver additional analytics, and insights to
business
• Deliver compliance and legal changes
• Deliver communication and collaboration tools
for all stakeholders
• Prioritize business needs for rapid return to
normalcy
• Focus on systems of engagement and
systems of differentiation for
re-launching the company
• Strengthen operations teams (Cross
functional of applications, infrastructure and
business process) for systems of records
• Categorize business areas into dollars, noise
and compliance zones
• Create re-skill and re-train plans for the IT
resources
• Undertake key business process study with
aim of eliminate, simplify, reengineer and
automation
• Transform inside-out and outside-in processes
• Adopt agile methodology to implement
transformation
• Accelerate enterprise data to value program
• Accelerate the adoption of automation, AI/ML and
straight through processing programs
• Accelerate cloud adoption and move to IaaS,
PaaS or SaaS platforms
• Accelerate digital experience for all stakeholders
internally and externally
• Increase protection of applications, data,
infrastructure assets
• Increase protection for employee tasks and
activities
• Stress test all vulnerability points (Supply
chain, logistics, delivery, shipment,
transportation) 20
21. Data and
Information
Data as a
Service
Operations
Standardization
& Simplification
Metrics to Measure IT’s Digital Fitness using Balance Score Card
Financial &
Controls
Crush Cost
& Grow
Revenues
Capabilities
and
Excellence
• IT resiliency to support
business
• IT maturity to build new
business capabilities
• IT innovation to bring
competitive advantage
Objectives
• Cost Reduction
• Grow Sales
• Compliance
• Revenue Improvement
• Cash Flow
• Market Share
• Innovation
• Process Maturity
• Brand Equity
• Productivity
• Availability
• Excellence
• Scalability
• Experience
Metrics
Objectives
Measures
Targets
Initiatives
Objectives
Measures
Targets
Initiatives
Objectives
Measures
Targets
Initiatives
Business Drivers
Business Growth
& Efficiency
Objectives
Measures
Targets
Initiatives
Vision
and
Strategy
21
22. Introducing Digital Fitness
IT’s Complexity and
Business Dimension
IT’s New Normal
Starting Digital
Fitness Journey
Questions & Answers
AGENDA
IT’s New Normal
How Companies are
becoming Digitally Fit
22
23. 23
Takeaway – Additional Information
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Business Owner: Fresh Perspectives on
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Upcoming Webinar:
Digital Fitness Roadmap and Metrics to Measure Digital Fitness