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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.