CIOs, IT, and Digital Transformation NYCT SIM Event Bruce T Guptill Executive Director and Principal Analyst, ISG Research 19 Sept 2017

The Digital journey accelerates More than 50% of our engagements include some component of digital

What does “Digital” include? Most common Digital Initiatives run by IT in Fortune 100 Enterprises. “We should be 100% Agile…” “We need speed and flexibility – we need Enterprise DevOps…” “We are already doing Agile and now we want to go to the next stage (DevOps) across the organization….” Enterprise Agility & DevOps “We need a Cloud CoE…” “We have a Data Centre, we now need an approach for hybrid cloud…” “We need to migrate our applications over time into a hybrid cloud…” Cloud Adoption & Migration “Our employee needs and mobility requirements are changing – we need a holistic view of UX encompassing workplace and more…” Future Workplace “We need to set up a Data Lab…” “Business Departments are not using our Data Lab enough – we need to improve that…” “We are looking for sourcing partners to scale up our Data Lab…” Big Data & Predictive Analytics “We have many large business initiatives like XYZ leading to large & complex IT programs…” Digital Transformation

IT departments are struggling to reposition themselves Enterprise IT is getting direct pressure – not fast enough, not agile enough, and miles away from digital Head of Marketing Head of Purchasing Head of Application Development Head of Sourcing CIO CEO Let’s call Salesforce directly – I hear they are fast! IT is too slow! We need to be digital, and have no time to lose! But we are busy with our legacy environment and constant requests We need to be part of the business!! Get ready for agile, and release your best teams Can’t we get better at RFPs for projects? We reinvent the wheel every time We saved costs on App Support, now how do we tackle App Development? Shadow IT is growing, while IT is being left behind to manage the legacy

What is driving Third-Generation IT and the Digital Transformation? In a secure, scalable and compliant environment for customers and internal users. 50% to 70% of enterprise workloads as As-a-Service 20% to 40% of labor removed through extensive Automation Agile Enterprise becomes the dominant operating model Modernizing large legacy apps to promote agile alternatives Digital Business becomes just The Business IT is part of the Revenue Generation Engine The Internet of Things (IoT) will swallow Enterprise IT and move to integrated Platforms SECURITY ● SECURITY ● SECURITY ● SECURITY ● SECURITY ● SECURITY ● SECURITY

ISG’s Framework provides a Roadmap to Digital Transformation Digital enablement provides capabilities, digital insights, and better engagement with customers and partners. Processes Cloud Business Insights Customer Experience Platforms Enterprise Customers Partners Digital engagement Digital backbone Digital insights Access Channels Customer Analytics Social Media Collaboration Collaborative Product Innovation Analytics IoT Automation

Translating the Digital Fabric to IT Value Development Connected Employees Connected Customers Connected Partners Connected Suppliers Digital Fabric Digital Customer Experience (CMO) 1 Digital Products & Services (CEO) 2 Digital Supply Chain & Manufacturing (COO) 3 Digital Productivity (CPO/CHRO/CxO) 4

IT & CIO shifts through 2020 70% Security 65% ITaaS 60% Dev Ops and Agile 80% Improved Analytics 80% accelerate SaaS 78% Cloud/ Mobile First Strategy 36% adopt new sourcing processes 60% CDO adoption 80% new revenue streams thru digital services 2015 2016 2017 2018 2019 2020 Technologist Service Broker and Global Business Services (GBS) Digitization and the rise of the Chief Digital Officer

The Pace of change requires new ways of thinking The pace of market change has never been faster – Service Provider and market capabilities are changing every 6 months. Collaborative process to co-create a vision Design Thinking Rethinking the traditional IT Towers approach New ecosystems IT Infrastructure is completely new Prescriptive procurement processes Complexity of tomorrow’s network

The Strength of ISG Our Competitive Advantages ISG is a world-class global technology research and advisory services firm with over 50 percent market share. We help our clients achieve operational excellence and faster growth.. Our Competitive Advantages Independence and objectivity Global reach Proprietary data assets and market intelligence Domain expertise Financial strength with demonstrable M&A experience Strong and growing brand Entrepreneurial spirit yielding new and more valuable services Deep, trusted relationships with our clients World-class research Innovative thinking Market influence Extensive analytics Industry experts Immense market data A trusted business partner to more than 700 clients, employing over 1,300 professionals, operating in over 20 countries.