Exploit Disruptive Technology The technology of the future will change everything. Be prepared. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2013 Info-Tech Research Group

Introduction IT decision makers need to understand disruptive technology in order to exploit it. This Research Is Designed For: This Research Will Help You: The CIO. Other strategic IT roles. Those interested in exploring the technology that will affect IT in the near future. Develop a process for anticipating and exploiting disruptive technology. Think exponentially in order to predict where technology will be in the next few years. Understand specific disruptive technologies that will affect you by the year 2020.

Executive Summary Disruptive technology is coming, and you need to start preparing Technology changes faster and faster. Soon, if not already, new disruptions will appear before the last one has been fully dealt with. The IT department needs to change to deal with the reality of advanced technology. A process for assessing and exploiting disruptive technology—including creating an annual SWOT analysis and technology monitor—can help organizations exploit the advantages of advanced technology rather than being negatively disrupted by it. Think about growth exponentially Most people think about technology advancement as if it is linear, advancing by a set amount each year. In fact, it is exponential, growing on itself and multiplying every year. Exponential growth is much faster, often to a surprising degree that can catch organizations off-guard. Learn to think exponentially and develop strategies that take exponential growth into account. Look to the past to predict the future. Anticipate the disruptions coming by 2020 Advancements in foundational technologies, such as processing power and storage, will change the way IT is done. Advancements in the combination of foundational technologies will result in new disruptive technologies. Info-Tech has identified five technologies likely to disrupt by 2020: technology everywhere (wearable and surface computing), the Internet of Things, 3D printing, nanotechnology, and artificial intelligence. It is never too early to prepare for the far future. The technology beyond 2020 will resemble science fiction, but will become reality sooner than you think.

Are you preparing for any disruptive technologies? Why care about future technology? Because if you don’t, you will get left behind Two-thirds of organizations are not doing anything to prepare for the disruptive technology of the future. Don’t be one of them. Are you preparing for any disruptive technologies? 66% 33% “We are not preparing for new technologies. Only attempting to be aware of their potential for disruption.” — Ronald, Director, Manufacturing “IT is constantly and relentlessly disrupted by trends. The IT business in general is characterized by constant change, but [many organizations are] at another level with the lack of planning, short-term or long-term.” — Linda, IT Specialist, Government N = 74 Source: Info-Tech. “Look, you have never had this amount of opportunity for innovation. Don't forget to capitalize on it. If you do not capitalize on it you will go the way of the dinosaur.” — Dave Evans, Chief Futurist, Cisco When asked if they were preparing for the disruptions discussed in this research, 66% of Info-Tech respondents gave a negative response. Unprepared organizations will go extinct. The rise and fall of organizations will happen faster and faster, and will be largely driven by technology. Avoid being an organization that falls by preparing for incoming technological disruptions.

How to use this blueprint There are multiple ways you can use this Info-Tech Best Practice Blueprint in your organization. Choose the option that best fits your needs: Best Practice Blueprint Free Guided Implementation Onsite Workshops Do-It-Yourself Implementation Use this Best Practice Blueprint to help you complete your project. The slides in this Blueprint will walk you step-by-step through every phase of your project with supporting tools and templates ready for you to use. Project Accelerator Workshop You can also use this Best Practice Blueprint to facilitate your own project accelerator workshop within your organization using the workshop slides. We recommend that you supplement the Best Practices Blueprint with a Guided Implementation. For most Info-Tech members, these Guided Implementations are included in your membership plan.* Our expert analysts will provide telephone assistance to you and your team at key project milestones to review your materials, answer your questions, and explain our methodology. Info-Tech Research Group’s expert analysts will come onsite to help you work through our project methodology in a 2-5 day project accelerator workshop. We take you through every phase of the project and ensure that you have a road map in place to complete your project successfully. In some cases, we can even complete the project while we are onsite. Book your workshop now by emailing: WorkshopBooking@InfoTech.com *Gold and Silver level subscribers only Or calling: 1-888-670-8889 Ext. 3001

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Book a workshop today! An Info-Tech project accelerator workshop will help you to engage your stakeholders, gather important data, make key decisions, and generate a customized project road map. Here’s how it works: Enroll in a 2-5 day workshop for your project Send an email to WorkshopBooking@InfoTech.com or call 1-888-670-8889 Ext. 3001. Your account manager will contact you and quote you the cost of a workshop. Book your workshop A Workshop Coordinator will contact you to book a workshop planning call with one of our Facilitators and arrange dates for your workshop. We can hold the workshop in Info-Tech’s world-class facility in Toronto or at your location. Plan your workshop A Workshop Facilitator will contact you to go over the workshop outline and choose the contents that are appropriate to your situation. Participate in your workshop Our experienced Workshop Facilitators will take your project team through your tailored slides and exercises and will summarize all the workshop outputs into a final report. Free Beta Workshops When we introduce new Blueprints, we offer workshops to our members at no charge for a short beta testing period. Please check the Workshop section of our website for a list of free beta workshops.

Disruptive technology will change IT Most organizations are not prepared for disruptive technology. Don’t be one of them. Technology disruptions will have a direct impact on the IT department, from its structure to the role of the CIO. Disruptive technology will change IT Evaluate disruptive technology annually A brief history of time Look to the past Foundational advancements Disruptive technologies A peek past 2020

“I skate to where the puck is going to be, not where it has been.” Technological advancements will have a direct and practical impact on IT IT leaders face the challenge of being unable to keep up with disruptive technology, which is arriving faster and faster. Disruption 1 Arrives Disruption 2 Arrives Disruption 3 Arrives Disruption 4 Arrives Current: Research & implement Research & implement Research & implement Research & 2009 2010 2011 2012 2013 Disruption 1 Arrives Disruption 2 Arrives 3 4 5 6 7 Future: Research & implement Research & implement Research & implement Research & implement Research & implement Research &… 2017 2018 2019 2020 2021 The jack-of-all-trades is dead. It used to be viable to have functional expertise in a variety of domains. No more. Even a CIO operating at a high level cannot keep up with every disruption that will hit the enterprise by 2020. However, those who fail to prepare for and adopt new technologies will quickly fall behind. Prioritize ruthlessly. Not every disruption is worth preparing for by pouring resources into it. Discover the ones that affect you. Stay current. Understand the trends in how technology advances so you can aim for where technology will be, not where it is. Increasingly, this will involve relying on external experts rather than trying to develop expertise yourself. This research can help. “I skate to where the puck is going to be, not where it has been.” — Wayne Gretzky

Transition to the IT department structure of the future Because of technology, the IT department will have a different makeup in 2020 than it does today. Internally, the viability of what we currently call cloud services will force IT to focus less on infrastructure and applications, and more on vendor management and high-level business analysis (see below) Externally, IT will rely on a stable of services and specialists that do not need to be hired internally. Research firms, value- added resellers (VARs), and systems integrators are examples of external resources that core IT will rely on. Many jobs will disappear. It’s not only that many jobs will be outsourced; many will be directly replaced with technology. Tasks will be automated to the point that a person is not required to accomplish them. In the same way that machines have taken over many physical labor positions, they will soon take over many intellectual labor positions. In their place, different jobs will emerge, requiring redeployment of resources and skills. Those who can’t adjust will find themselves without a job.

The CIO of the future can be compared to a conductor IT’s role in the business will change, focusing more on strategy and innovation than operations In a future where technology is everywhere, everything is IT’s problem. Alignment isn’t enough. IT needs to actively contribute to business strategy and innovation. IT should have a real seat at the executive table, rather than only enabling—or acting as a bottleneck for—business innovation. IT will get out of the operations doldrums. As technology automates basic operation functionality and is increasingly commoditized, IT will need to tip the scales toward strategy and innovation instead. When technology is everywhere, everything is IT’s problem. As the following sections will demonstrate, technology will infuse every aspect of life at home and at work. IT will have a role in all of it. The CIO’s Role Will Change The CIO is a conductor, not a musician. If IT were a symphony, the CIO would be the conductor rather than a musician. This will be even more true as technology advances, with the CIO taking on the role of a business engineer, working with other executives to enable business innovation. The CIO has to give up control. Having direct involvement in every aspect of IT will be even more difficult than it is today. Many IT functions will be outsourced or purchased as services. Even where control is desired, such as in security, it will have to be balanced against personalization, increased accessibility, and agility. The CIO is an expert and an aggregator. Maestro CIOs will increasingly need to keep up on the latest technologies, but also rely on experts in each area and provide strategic synthesis to decide if, and how, developments are relevant. The CIO of the future can be compared to a conductor

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