9 Key Strategies for Managing Performance in the Age of IT Transformation

9 Key Strategies for Managing Performance in the Age
of IT Transformation
Derived from DEJ’s market study – “13 Key Trends Transforming the IT in 2020”
Digital Enterprise Journal, March 2020

71%
13 Key Trends
1 - Emergence of “Technology-as-a-Competitive-Advantage”
Advantage” (TaCA)
2 - IT transformation beyond technology deployments
3 - Customer becoming a key focal point of IT
4 - Power shift – advantage DevOps and engineers
5 - Velocity and pace of change
6 - Understanding limits of manual work
7 - Business taking things into their own hands
8 - Increased focus on employee experience
9 - Speed to the market
10 - New role of IT Operations
11 - Continuous everything
12 - Importance of microservices and cloud for innovation
innovation
13 - APIs and integration defining modern IT
Reported that IT transformation is
making managing IT performance
more challenging
DEJ's study of 1,079 organizations identified 13 key areas of
IT transformation. This document provides more context
around how IT transformation impacts managing performance
of IT services and recommends 9 strategies.
Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.

Reported creating new experiences
for users as a source of competitive
advantage
Creating a business advantage
46%
Improving customer experiences and creating new
ones is a task that is on top of the list for both business
and technology executives and finding a way to work
together towards this goal will determine the success of
business strategies in 2020.
Reported the inability to prevent
performance issues before users
are impacted as a key challenge for
managing IT performance
IT performance
64%
It is nearly impossible to use customer experience
as a source of competitive advantage if
organizations are learning about performance of
digital services from customer complaints.
It all starts with preventing performance issues

55%
57%
59%
41%
52%
Performance of microservices is key for driving innovation
Reported driving innovation
as the key reason for
deploying microservices
Not able to automatically discover
service elements
Reported an increase in resources
required for management
Reported a lack of capabilities for
understanding the relationship between
containers and service components
Reported time to understand the
impact of new deployments as a key
challenge

Reported a lack of capabilities for
automated pattern recognition as a key
challenge for preventing IT performance
issues
Increase in number of organizations
reporting that “throwing more people
at a problem” is not a viable solution,
over the last 12 months
Reported volume and velocity of
data and events to be processed
as a key challenge for IT
performance management
Deployments of autonomous technologies in the IT are a different game than in some other sectors. For the IT,
these capabilities are not "nice to have", but are becoming a necessary requirement for completing daily tasks.
28%
AI and automation capabilities are no longer optional
Reported increase in IT tasks that are not
humanly possible to complete at optimal
level over the last 12 months
51%
51%
34%

4.5x - Increase in number of
organizations making software a core
part of their business strategy since
2017
Business transformation
2.2x – Increase in number of
organizations in which DevOps plays a
strategic role
Importance of DevOps
3.3x - Increase in SRE adoption
since 2017
Emergence of SRE
41% - Looking to extend code
feedback loops to include production
performance
Continuous reliability
Managing production performance shifting left
26%
Reduction in IT Operations
responsibilities for production
performance since 2017

Experience
Increase in importance of employee
experience over the last 18 months
64%
Productivity
Increase in importance of
employee productivity over the last
18 months
16%
Visibility
Reported that the metrics IT is
using do not reflect true user
experience
71%
Understanding a true user experience is becoming even
more important
IT leaders are understanding that the definition of
user experience is changing and goes beyond
traditional metrics such as availability and latency
and, as a result, are becoming increasingly
interested in solutions that provide visibility into a
true user experience.

Modernized IT Operations becoming a firewall
for digital transformation
Increase in number of organizations that are
focusing IT Operations efforts on ensuring returns
from new technology investments since 2017
Increase in number of
organizations using
technology to differentiate
from competitors since 2017
Decline in number of organizations
with troubleshooting as a main focus
of their IT Ops efforts since 2017
Reported that they
redefined their IT
Operations strategies
over the last 18 months
Deploying, or looking to deploy,
real-time platform with AI/ML driven
automation capabilities
Adopted ,or looking to adopt,
customer-centric approach for
managing IT
Modifying their strategy to meet
specific requirements of monitoring
cloud and microservices
Over the last 18 months, the research shows
an increase in the need for IT Operations to
transform and create a business value by
focusing on ensuring returns from
deployments of transformational technologies.
2.1x
40%
23%
41%
39%
40%
51%

6.7x
3.1x
91%
52% 59%
Managing cloud performance is a key requirement, not a
use case
Increase in
deploying cloud
services to drive
innovation since
2014
Increase in missed
revenue due to slow
software delivery
since 2016
Increase in missed
revenue due to
performance and
availability issues
since 2016
Reported the
importance of agility
for achieving key
business outcomes
increased over the
last 12 months
Increase in capabilities
for managing hybrid
cloud as a key
selection criteria over
the last 18 months
The research shows that there is a stronger business impact from issues with cloud performance as
compared to on-premise managed IT services. Therefore, managing cloud performance can no longer
be just a use case, but a key requirement for deploying IT performance management solutions.

38% Each of the 13 areas of IT
transformation is driven by
business pressures and
IT's success or failure in
addressing them will be
evaluated by the impact on
business outcomes.
Translate everything to the language of business
Reported that LoB has become more
involved in the evaluation process of IT
solutions over the last 18 months
Business professionals described their interest
in learning more about technology features and
functionalities as “low” or “very low”
Reported increased importance of
creating a business case for technology
purchases over the last 12 months39%
Increase in number of organizations that are
evaluating IT solutions based on their impact on
business outcomes over the last 12 months
32%
58%

Don't fight the change, embrace it
While most organizations see areas such as the
need for integration, dealing with large volumes
and velocity of data and increased customer
expectations as a challenge, TPOs are putting
capabilities in place to turn these market
dynamics into new business opportunities.
KPIs Top Performing
Organizations (20%)
All others
Success rate in
modernizing IT
infrastructure
77% 42%
Percent of IT budgets
available for growth and
innovation
48% 29%
Customer satisfaction
score
94% 74%

Focus on business outcomes
Methodology framework leveraging a
multi-step approach to connect vendor's
differentiators with business outcomes
Situational analysis
Providing actionable recommendations
to user organizations based on their
individual requirements
User Insight Platform
Ongoing, personalized approach for
research data collection and analysis
Business model
Ability to continuously leverage up-to-
date research in each stage of the
buying cycle & sales funnel
Bringing together the most advanced concepts from analyst research and media industries
Contact DEJ
About DEJ

9 Key Strategies for Managing Performance in the Age of IT Transformation

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9 Key Strategies for Managing Performance in the Age of IT Transformation