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CONFIDENTIAL AND PROPRIETARY
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its a...
1 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Smash the Competition via Business Moments Value:
Inexp...
2 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Road Blocks & Limits to Scaling Bimodal
 Organizationa...
3 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What is causing an accelerated adoption o...
4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
While Disrupters Emerge Suddenly, a Single Strategy Is
...
5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
While Disrupters Emerge Suddenly, a Single Strategy Is
...
6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
While Disrupters Emerge Suddenly, a Single Strategy Is
...
7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
While Disrupters Emerge Suddenly, a Single Strategy Is
...
8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
While Disrupters Emerge Suddenly, a Single Strategy Is
...
9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What is causing an accelerated adoption o...
10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
IT Organizations Either Adapt or Lose the
Digital Busi...
11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Go Bimodal to Adapt to and Run the
Digital Business Ra...
12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Adaptive Sourcing Is the Path to Digital Success
Compe...
13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Learn From Leaders: Digital Success via
Bimodal Adapti...
14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What is causing an accelerated adoption ...
15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Step 1. Ask What Business Moment Will Disrupt Us?
What...
16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Differentiate
Run
Mode 2
Linear Best
Practices
Dynamic...
17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Step 3. Make Sourcing Essential to Rapid Innovation:
S...
18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Step 4. Move to Adaptive Sourcing Strategies:
Bimodal ...
19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
RapidDigitalInnovation
Step 5. Adapt Your Path and Par...
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Step 6. Build the Five Critical Capabilities to Suppor...
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Mode 1
Step 7. Leverage Bimodal Innovation for People
...
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Step 8. Create and Continuously Update Your Roadmap
Mo...
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 Use digital disrupters, business moments and smart b...
24 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
 Toolkit: Your Roadmap t...
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NASSCOM ILF 2016: Bimodal IT and adaptive sourcing: the way forward to avoid pitfalls

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NASSCOM ILF 2016: Bimodal IT and adaptive sourcing: the way forward to avoid pitfalls

  1. 1. CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Bimodal IT and Sourcing: The Way Forward to Avoid Pitfalls Claudio Da Rold NASSCOM India Leadership Forum 10-12 February 2016 | Mumbai, India
  2. 2. 1 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Smash the Competition via Business Moments Value: Inexpensive Insurance Versus Teen Safety at a Premium Price Car Crash
  3. 3. 2 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Road Blocks & Limits to Scaling Bimodal  Organizational politics, egos, personalities, vested interests.  Inability or unwillingness to trust & delegate.  Lack of Funding.  Unrenovated Core. Lack of Skills.  Management mindset — digitally unsavvy nodes.  Insufficient employees able to adopt a Mode 2 mindset.
  4. 4. 3 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is causing an accelerated adoption of digital and cloud technologies? 2. How can bimodal adaptive sourcing support digital success? 3. What are the practical steps of a bimodal and brokering roadmap?
  5. 5. 4 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. While Disrupters Emerge Suddenly, a Single Strategy Is Not Enough What is your strategy? Has moved alone 100 million tons for more than 1 million miles. Small, nice, silent thing that may save 65% of hospital logistics labor. Can book guests in far more rooms than any other big chain in the world. Self-remediate 50%+ of IT incidents and reduce process labor by 50%. A driverless truck fleet. Sources: Firms' sites and Wikipedia; firms and providers are representative only.
  6. 6. 5 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. While Disrupters Emerge Suddenly, a Single Strategy Is Not Enough What is your strategy? Has moved alone 100 million tons for more than 1 million miles. Small, nice, silent thing that may save 65% of hospital logistics labor. Can book guests in far more rooms than any other big chain in the world. Self-remediate 50%+ of IT incidents and reduce process labor by 50%. Tug robots. Sources: Firms' sites and Wikipedia; firms and providers are representative only.
  7. 7. 6 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. While Disrupters Emerge Suddenly, a Single Strategy Is Not Enough What is your strategy? Has moved alone 100 million tons for more than 1 million miles. Small, nice, silent thing that may save 65% of hospital logistics labor. Can book guests in far more rooms than any other big chain in the world. Self-remediate 50%+ of IT incidents and reduce process labor by 50%. A 2008 startup. Sources: Firms' sites and Wikipedia; firms and providers are representative only.
  8. 8. 7 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. While Disrupters Emerge Suddenly, a Single Strategy Is Not Enough What is your strategy? Has moved alone 100 million tons for more than 1 million miles. Small, nice, silent thing that may save 65% of hospital logistics labor. Can book guests in far more rooms than any other big chain in the world. Self-remediate 50%+ of IT incidents and reduce process labor by 50%. Cognitive services. Sources: Firms' sites and Wikipedia; firms and providers are representative only.
  9. 9. 8 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. While Disrupters Emerge Suddenly, a Single Strategy Is Not Enough What is your strategy? Has moved alone 100 million tons for more than 1 million miles. A driverless truck fleet. Small, nice, silent thing that may save 65% of hospital logistics labor. Tug robots. Can book guests in far more rooms than any other big chain in the world. A 2008 startup. Self-remediate 50%+ of IT incidents and reduce process labor by 50%. Cognitive services. Sources: Firms' sites and Wikipedia; firms and providers are representative only.
  10. 10. 9 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is causing an accelerated adoption of digital and cloud technologies? 2. How can bimodal adaptive sourcing support digital success? 3. What are the practical steps of a bimodal and brokering roadmap?
  11. 11. 10 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. IT Organizations Either Adapt or Lose the Digital Business Race Digital spending under control by business CIOs control IT budget and capabilities 42% Lack of digital skills 51% Cannot respond timely to digital demand 38% 2015 50% 2017 Source Gartner 2015 CIO Survey
  12. 12. 11 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Go Bimodal to Adapt to and Run the Digital Business Race Empirical Agile CX Focus Small Teams Short Cycles New Providers New Models Trust Plan-Driven Linear IT-Centric Conventional Projects Traditional Providers Rock Solid Control We "take the order" from our stakeholders and deliver We explore the possibilities hand-in-hand with our partners
  13. 13. 12 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Adaptive Sourcing Is the Path to Digital Success Competence and Performance ValueandDifferentiation Buy, Outsource Buy and Invest Retain, Spin Off Make and Invest MarketParity Client Experience Innovation Innovate Business Process PerformancesDifferentiate Industrialized IT/ProcessesRun DB CEO Focus 50% More $ Success, Career Source: "Business Outcomes, Differentiation and Performance Drive Bimodal Adaptive Sourcing Decisions" (G00272645)
  14. 14. 13 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Learn From Leaders: Digital Success via Bimodal Adaptive Sourcing From Mechanical Locks and Keys Leadership Into Digital Identity Management in a Decentralized €7B Global Business Initiatives and Integration Global IT Council; Customer Experience Exercise New Providers and Models Partner Ecosystem Around Specific Objectives Sourcing Flexibility Trusted Mobile Devices Piloted and Delivered Fast Migrating to a More Aligned and Consolidated Setup After M&As Traditional Supply Chain, Toward VAS and Digital IDs, New Service Models Acquisition (HID) Plus Organic and Ecosystem-Based Growth Innovate Differentiate Run Source: "Business Outcomes, Differentiation and Performance Drive Bimodal Adaptive Sourcing Decisions" (G00272645)
  15. 15. 14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. What is causing an accelerated adoption of digital and cloud technologies? 2. How can bimodal adaptive sourcing support digital success? 3. What are the practical steps of a bimodal and brokering roadmap?
  16. 16. 15 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Step 1. Ask What Business Moment Will Disrupt Us? What Is Our Own Industry "Uber" or "Airbnb"? • Energy consumption • Motion, climate, device interaction • Health data • Social media, location • Performance • Energy usage • Traffic conditions, route • Energy usage House Consumer Washing Machine Car • Transactions, loyalty data • Inventory Retailer
  17. 17. 16 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Differentiate Run Mode 2 Linear Best Practices Dynamic Collaboration Step 2. IT Must Go Bimodal, and Successful Innovation Will Do the Rest CEO Focus Innovate Agile Source BPM GRC IO EA … Mode 1 EA SourceBPM Source: "Adaptive Sourcing Innovate Layer: Innovation Strategies Accelerate Business Growth" (G00265994) and "Bimodal IT: How to Be Digitally Agile Without Making a Mess" (G00268866)
  18. 18. 17 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Step 3. Make Sourcing Essential to Rapid Innovation: Seven Key Business Questions to Consider 1. Do we know what organizations have done it already? 2. How are we protecting outcomes and IP ownership? 3. What new talents, capabilities, competences, data or technologies do we need next? 4. How are we integrating and testing each provider's contribution to the proof of concept (PoC) outcomes? 5. Have we got fair market T&Cs — including IoT software — for both PoC failure and solution scale up? 6. How are we managing vendor viability risk, lock-in and business continuity? 7. Are our vendor management, DevOps and service integration and management sufficiently mature? Source: "Make Your Sourcing Team Essential and Ready for Bimodal Innovation Through Seven Key Business Questions" (G00272644)
  19. 19. 18 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Step 4. Move to Adaptive Sourcing Strategies: Bimodal by Design Stakeholders Industrialized IT Services, Outsourcing, Utility, Hosting, Cloud IaaS/PaaS, SaaS Transformation Projects, CSI, BPO, BPaaS, SaaS Crowdsourcing, Cloud *aaS, CSI, JVs, Spin-Off, M&A CIO or Shared-Service COO Business Units, Supply Chain, Process Owners R&D, Chief Digital Officer, Chief Marketing Officer, CEO New Sourcing Options Traditional Sourcing Strategy + Accelerated Modernization RapidDigitalInnovation Innovate Differentiate Run Note: CSI = Consulting and solution implementation; JVs = Joint ventures; M&A = Merger and acquisition; BPO = Business process outsourcing; BPaaS = Business process as a service; IaaS = Infrastructure as a service; PaaS = Platform as a service Source: "IT Services Sourcing Reform Will Prepare the Organization for Bimodal IT and Digital Business" (G00259751)
  20. 20. 19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. RapidDigitalInnovation Step 5. Adapt Your Path and Partners to Your Bimodal Sourcing Strategies Technology Incubators Network Aggregators Collaborative Consumption Collaborative Influence Digital Business Consulting Source: "Market Guide for Digital Business Consulting Services" (G00273009)
  21. 21. 20 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Step 6. Build the Five Critical Capabilities to Support Adaptive Sourcing Differentiate Run CEO Focus Innovate If You Align All Five Together Then BusinessOutcomesFlowFrom InnovationtoRun Governance EnterpriseandInformation Architecture MultisourcingManagement BusinessProcessand ChangeManagement RiskandSecurity Source: "Exploiting MSI and CSB Roles to Effectively Manage Complex Hybrid IT Services Environments" (G00259842), "A Bimodal Enterprise Needs Three Subcultures" (G00273134) and "The New Mission of Your Office of the CIO" (G00272386)
  22. 22. 21 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Mode 1 Step 7. Leverage Bimodal Innovation for People Development and Offer a Career Elevator Mode 2 Differentiate Run CEO Focus Innovate Source: "Three-Step Roadmap to Bimodal Adaptive Sourcing: Leverage Digital Urgency to Be an IT Broker" (G00272646)
  23. 23. 22 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Step 8. Create and Continuously Update Your Roadmap Moving Forward Relationships People Processes Internal External 1 Detach People for Mode 2 Projects Simple Decision Processes, Prove It Works, Protect IP Keep Mode 2 Separated; Gain Internal Support Use Research, Vendors, Small Innovators, Crowdsource 2 Sense of Urgency: Make Mode 1 Relevant Rapid Innovation and Run Modernization Strategies, Divest nondifferentiating capabilities Work With HR, Hire and Educate, Increase Trust, Focus on Risk, Security, Reliability, Start DevOps Communication Plan, Outside-In Perspective, Leverage Social, Select Trusted Partners 3 Mode 2 Makes Innovation Run, Mode 1 Industrialize it Carve Out Differentiating Capabilities, Refine and Protect Models and Algorithms Raise Influence, Educate Board, Align, Direct and IT Procurement Orchestrate Across Internal and External Capabilities; Balance Trust and Control Source: "Three-Step Roadmap to Bimodal Adaptive Sourcing: Leverage Digital Urgency to Be an IT Broker" (G00272646)
  24. 24. 23 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Use digital disrupters, business moments and smart business questions to raise the sense of urgency for new value propositions and your business influence.  Provide rapid innovation capabilities through bimodal sourcing, new providers, partnering, crowdsourcing. Make IT procurement relevant to innovation.  Help cut operating cost while ensuring end-to-end accountability and decreasing unit cost for IT services. Invest in leadership and key skills.  Implement your roadmap toward bimodal and adaptive sourcing to focus on business outcomes, competitive advantage and IP/algorithms protection.  Modernize your IT-sourcing strategy by divesting nondifferentiating capabilities, incorporating industrialized, cloud-based processes.  Deliver as a provider. Broker as a partner. Build and balance Trust and Control. Recommendations
  25. 25. 24 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Recommended Gartner Research  Toolkit: Your Roadmap to Delivering Bimodal IT and Adaptive Sourcing Claudio Da Rold and Jim Longwood (G00280396)  Bimodal IT and Adaptive Sourcing Are Critical to Digital Business Success Claudio Da Rold, Elise Olding and Julie Short (G00265879)  Market Guide for Digital Business Consulting Services Julie Short, Don Scheibenreif, Elise Olding and Others (G00273009)  Business Outcomes, Differentiation and Performance Drive Bimodal Adaptive Sourcing Decisions Claudio Da Rold (G00272645)  IT Services Sourcing Reform Will Prepare the Organization for Bimodal IT and Digital Business Ruby Jivan, Claudio Da Rold and Frank Ridder (G00259751) For more information, stop by Gartner Research Zone.

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