0. Innovation NOW Alexandre Blauth Executive Partner Gartner do Brasil

1. Digital Business First Wave Is NOW. Are You Ready?
2014 CEO's Investments:
Information Technology
Digital Capabilities
R&D and Innovation
Product Enhancement
Sales
45% to 81% High Impact on Providers, Contracts
41% to 74% High Impact on Sourcing Practices
51% of CIOs Cannot Respond Timely to Digital Opportunities
42% of CIOs Are Lacking the Skills Necessary to Digitalization
70% of CIOs Will Change Sourcing Mix in the Next Years

2. Computing Everywhere — Look Beyond Mobile Form Factors
Many form factors, screen sizes, interaction styles, platforms, architectures
Technology advances accelerate: Sensors, displays, wireless and more
Embrace heterogeneity and loss of complete control
Use containment and isolation as a foundational security strategy
Inside everything
All around
Pocketable
Portable screen
Convertible
Wearable
Portable
Desk
Shared areas
Touch, voice, etc.
Keyboard, mouse
Gesture
Cut & copied from slide:
Many form factors, screen sizes, interaction styles, platforms, architectures
Technology advances accelerate: sensors, displays, wireless and more

3. There Is a "Not So Quiet" IT Crisis
Digital Opportunities and Threats
Customer and Management Expectations
Performance
THE QUIET CRISIS
IT Performance and Contribution
Time
A quiet crisis arises when current practices and plans no longer meet future realities and expectations. In a quiet crisis, many feel that something is not quite right, but few are ready to lead a change. The 2013 CIO survey revealed IT's current quiet crisis: new business expectations for digital technologies create friction with ongoing CIO plans and priorities.
CIOs faced a similar situation more than a decade ago. At that time, they set aside concerns regarding the Internet and e-commerce as they concentrated on Y2K. Now, as digital technologies go mainstream, groups outside of IT are filling any gaps and thus restricting IT's role. As shown in the figure opposite, CIOs face three interlocking issues in the digital future: strategy, funding and skills. Each represents a significant challenge, with CIOs anticipating significant change over the next three years.
CIOs and IT have spent the last decade in a world of tight budgets, limited technology innovation, cost cutting, outsourcing and control. That world has set the context for IT. It was a world that valued continuing with current plans and tending to legacy responsibilities over expanding IT's role. but the world has changed and IT must change with it, raising business performance by reacting to the digital opportunities and threats that new technology, societal and business model trends are presenting.

4. Are You Ready?

5. A Bimodal Approach Is the First Urgent Step Toward Adaptive Sourcing
Mode 2
Agile
Source
BPM
GRC IO EA …
CEO Focus
Innovate
Dynamic Collaboration
Differentiate
Mode 1
Run
Linear Best Practices
Source: Gartner February 2014 — Improving IT Agility Through Adaptive Sourcing (G )

6. Mindset: Embrace Change and Ambiguity
Take responsibility for end product
Outside In
Prudent Risk Taking
The Bimodal Mindset
Fast Failure
Work in multi-disciplinary teams
Learning
Inquisitive
Accept & Resolve Ambiguity
Leadership style: democratic, collaborative, coaching
The Mode 2 team: Find inquisitive people who thrive on change A Mode 1 team likes to plan in advance. It prizes predictability, reliability, coherence and consistency; less important is the ability to leverage uncertainty and speed to create advantage. The Mode 1 mindset is to do things linearly, step by step. Stage- gated approval processes are viewed as the way to ensure quality, with testing done separately at the end. The business needs to know what it wants, and the IT organization’s job is to collect requirements, interpret them, create something new and come back — often months later — with the finished product. As in a marathon, the Mode 1 team adopts a slow but steady pace to win the race. In contrast, a Mode 2 team believes that when operating amid uncertainty, you don’t have to be slow to achieve high quality and be secure. Perhaps surprisingly, this team is often more rigorous than its Mode 1 counterpart, testing as it goes. The Mode 2 mindset recognizes that the business often cannot know exactly what it wants, so a complete set of requirements may be moot. To achieve outcomes, a Mode 2 team relies on short feedback loops rather than heavy oversight, while recognizing that without discipline, the benefits of agility and speed are lost. The Mode 2 team is in a sprint rather than a marathon, with speed and agility counting more than a sustained, methodical pace. Nearly all the interviewees for this report had to recruit key skills and capabilities externally to obtain Mode 2 competencies, experience and behaviors, and to inject some agile DNA. Moreover, among internal recruits, they all emphasized a blend of experience and diverse backgrounds as key to developing high-performance teams.
“In the second mode, it is the people who make the difference.” 6

7. Five Critical Capability "Pillars" Must Glue Together Adaptive Sourcing Layers
If You Align All Five Together Then
Business Outcomes Flow From Innovation to Run
CEO Focus
Governance
Enterprise Architecture
Multisourcing Management
Business Process Management
Risk Management
Innovate
Differentiate
Run
Source: Gartner February 2014 — Improving IT Agility Through Adaptive Sourcing (G )

8. Innovation NOW Alexandre Blauth Executive Partner Gartner do Brasil