MCPM Workshop

Introduction to Topic 1) To what extent can we draw upon common IT developments and new opportunities to provide for digital services? What is needed to ensure that the business and the IT function share a common responsibility to shift into the digital future? Do we have the capability to be able to change as fast as required? This topic aims at highlighting the challenges of managing change, notwithstanding all aspects of constraints that we are facing in the budgets, competence and the culture of our businesses.

Gartner:The Third Era of Enterprise IT We are here IT Craftsmanship IT Industrialization Digitalization Focus Technology Processes Business Models Capabilities Programming, system management IT management, service management Digital leadership Engagement Isolated, disengaged internally and externally Treat colleagues as customers, unengaged with external customers Treat colleagues as partners, engage external customers Outputs and Outcomes Sporadic automation and innovation, frequent issues Services and solutions, efficiency and effectiveness Digital business innovation, new types of value Bimodal IT represents a way to bridge the second and third era. If IT doesn't act, the digital void will be filled anyway. The digital and technology void currently felt in many enterprises will be filled either internally or externally. If resolved internally, it may take the form of shadow IT. The problem with shadow IT is not that activities are happening outside the direct control of a formal IT organization, but rather that in acting independently, shadow IT often makes the mess we warn against in the title of this report — leading to integration, security and technical debt problems down the road. The digital void can also be filled externally, by a competitor or new entrant into the market. As such external disruptions mount, they are increasingly driven by unlikely competitors. Who would have guessed that Google would compete with car companies in the autonomous vehicle arena, or that Tesco, the U.K. supermarket chain, would launch a smartphone? The report research suggests that, in the long term, it is in the interest of the enterprise, not just the IT organization, for IT to be a full-fledged partner in the creation of the digital enterprise. Indeed, this may be the only way to avoid a future filled with digital detritus that could impact the enterprise's competitiveness and reputation. 3

Bimodal IT = Marathon Runners + Sprinters; Deeply Different, Both Essential Mode 1 Mode 2 Reliability Goal Agility Price for performance Value Revenue, brand, customer experience Waterfall, V-Model, high-ceremony IID Approach Agile, kanban, low ceremony IID Plan-driven, approval-based Governance Empirical, continuous, process-based Enterprise suppliers, long-term deals Sourcing Small, new vendors, short-term deals Good at conventional process, projects Talent Good at new and uncertain projects IT-centric, removed from customer Culture Business-centric, close to customer Long (months) Cycle Times Short (days, weeks) Think Marathon Runner . Think Sprinter In most enterprises, scattered Mode 2 capabilities already exist. To become bimodal, most CIOs need not start from scratch. Often they can harness significant pockets of capability scattered around the enterprise. Indeed, many CIOs have adopted isolated Mode 2 capabilities, like agile and lean development approaches, or innovation management teams. In these respects, most CIOs focus on single capabilities or events. For example, all CIOs can point to a time when they "went fast" to deliver a particularly time-sensitive project. And many have a team that experiments with emerging technologies. Mode 2 is not only about going faster or experimenting. Simply creating isolated capabilities or decreasing project cycle times is not enough to deliver on the potential of bimodal IT. When approached comprehensively, Mode 2 should deliver sustained value through a substantive and integrated capability, not merely through one-offs. Bimodal IT is a road map for how these more agile capabilities coalesce into a coherent whole, and work in harmony with conventional IT services. 4 Gartner

Pace Layering and Bimodal IT Are Complementary Systems of Innovation + - Mode 2 Systems of Differentiation Change Governance Mode 1 As part of the Pace-Layered Application Strategy, Gartner has defined three application categories or "layers" to distinguish these application types and to help organizations such as the IT operations team to develop more appropriate strategies for their support. These categories are described as: (1) systems of record — established packaged applications or legacy homegrown systems that support core transaction processing and manage the organization's critical master data, such as the general ledger; (2) systems of differentiation — consists of applications that enable unique company processes or industry-specific capabilities (The business processes they support have a medium life cycle [one to three years], but need to be reconfigured more frequently to accommodate changing business practices or customer demands.); (3) systems of innovation — new applications that are built on an ad hoc basis, often without full knowledge of needed requirements (and where the software is the documentation) to address new business opportunities. Bimodal IT, Gartner's Pace-Layered Application Strategy and adaptive sourcing. Because bimodal IT orchestrates two distinct modes of capabilities for deploying information and technology, it relates to the operating model and structure of the entire IT organization — and of the business as bimodality becomes more advanced. Gartner's Pace-Layered Application Strategy and adaptive sourcing are complementary to, but distinct from, a bimodal approach. The balance between Mode 1 and Mode 2 will likely evolve over time. At most enterprises, Mode 2 will start modestly, with a project focus; but as it expands, Mode 1 will shrink. Once an enterprise has created a Mode 2 capability, Mode 1 involvement in systems of innovation will diminish rapidly. Systems of Record - + 5

Group discussions The need for change The speed of change

Selected areas for discussion Cloud computing i.e. shared services Data Warehousing Data and metadata as a service Social/Mobile End user focus, drivers for change Business and technological agility Capability for change 6 groups

And a reminder The topics of the work shop are to some extent oriented towards solutions, taking the challenges behind for granted. As your group works through the below selected topic and throughout the workshop, consider also future work that we as a groups should consider and/or open up for reflections including current challenges in your organization, as experienced or seen from your position. What are the main challenges that you expect to meet within the next 2-4 years? What would be the main obstacles to successfully solving them? To what extent will international collaboration contribute to overcome the challenges, and what are your concrete expectations in this area?

Group discussions Group 1: Business agility Group 2: Cloud computing Group 3: Data Warehouse Group 4: Mobility/Social media Group 5: Business agility Group 6: Either item 2, 3 or 4

Main output Future Actions to be taken as a result of this discussion (Organizationally/Globally) Have a fruitful discussion!