Accelerating The Digital EnterpriseEssential software Infrastructure systems 21% 37% 42% Tech...

Digital TransformationAccelerating The Digital Enterprise

Helen Chiang/江芳韻

Research Director

IDC Taiwan

The inter-dependence of DX, 3rd platform and IT leadership

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Digital mashups

3rd platform is the

technology enabler/platform

to accelerate DX

Digital masteries

DX is a customer-

centric business

strategy

Digital leaders

IT leadership is a

critical success

factor in digital

transformers and

disruptors

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Source: IDC Asia/Pacific C-suite Barometer

Research 2016 (N=1,472 CxO; 667 CIO/CTO;

805 CEO/LoB) – QA7

Digitalization = business process transformation + new monetization model creation; It is about using 3rd

platform tech to create new value, relationships and business models.

Digitization = from analog to digital.

CEO’s Top Business Concerns

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Digitalmasteries

Relationship mastery

(Omni-experience DX)

• DX is a customer-centric

business strategy

• Reach, Relevancy,

Reciprocity

• KPI: Net promoter score

Talent mastery (Worksource DX)

• Work optimization and talent

sourcing

• Process, People, Culture

• KPI: Best place to work index

Information mastery (Information DX)

• Information is at the core of the DX

economy

• Syntax, Semantics, Socialization

• KPI: % of revenue generated from

information

Operational mastery

(Operating model DX)

• Automated and agile

processes

• Scale, Scope, Speed

• KPI: Critical process cycle

time

Leadership mastery (Leadership DX)

• CEO must take the DX driver seat

• Vision, Organization structure, Commitment

• KPI: Competitive share in core and new markets

DX dimension priorities

5Source: IDC DX Spending Guide, 2016 (WW ICT+Business Services Spending); Asia/Pacific C-suite Barometer

Research 2016 (APeJ N=1,472 CxO; 667 CIO/CTO; 805 CEO/LoB) – QA3

Innovation

Change how the organization innovates

Resilience

Speed

The speed at which they deliver their products and services

Reliability

The reliability of their operations

Engage

How theyengage with

their customers

Businesses Are Transforming

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IT Today Is Still Complex And Rigid

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Complex magt

Cost concern

Slow response

Closed system

Bad customer

experience

New

Essential software

Infrastructure systems

21%

37%

42%

Tech Spending from IT Budget

38%

25%

37%

Tech Spending from Business Budget

30%

30%

40%

All Tech Spending (IT & Business)

Technology Spending Enterprise Budgets

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Convergence/

Automation

Cloud

IoT

Digital Intelligence

The Road Toward Transformation of IT Infrastructure

SDX

Convergence and Automation

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Convergence

Software

ServersStorage

Hyper Convergence

Compute

Capacity

Memory

Faster provisioning Faster IT response Scalability and elasticity Low cost

Software-defined Enhanced Agility Shared Resources/Pool Easy Automation Lower cost

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0% 5% 10% 15% 20% 25% 30% 35% 40%

Elimincation of SAN

Rediction in technical support staff

Different type of backup

Easier to secure budget

Easier disaster recovery

Ease of set up

Speed of deployment

Scalability

What were the key motivators to deploy Hyper-converged systems?

Why Hyper Convergence?

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Top Customer Benefits

Scalibility and spend

Improved IT Staff Productivity

Faster Time to Provision

Reduce Downtime/High Avail

Improved Compute Utilization

Reduce DC, Power/Cool

Benefits: Agility, Speed, & Costs

DX and Cloud

Keeping up with demand is

impossible - IT service

requests change in type and

velocity

A Chasm Opens in the LOB -> IT Service Delivery

Model

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Outcome-Driven

services match cost with

value, connect LOB to

the technology

Disconnect between

buyer, operator, and

user of technology

Desire to match IT Expenditure with Business Performance

Scale & Speed7-10 key IaaS leaders, constantly

spending and innovating

4

Hyperscale, Density-optimized, Engineered for purpose Open Means Open

5

30% of businesses WW spend on Open Source;

OpenStack supported by all major vendors; Cross

industry data-sharing

Asset-LeanTraditional ownership model

inadequate for AGILITY. Subscription,

Leasing, Spot markets. Reserved

Instances…New financial flexibility

End of Ownership

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Strategic

acknowledgement from IT

organizations that they do

not need to specialize in

run-the-business apps

IT’s mission to Build

or Source based on

best available

technology

Desire for Best Technology

Run by Specialists

1

Clouds

4

Increasing Cloud Adoption Can Yield

Significant Benefits

Opportunistic

Repeatable

Managed

KPI Benefit of Moving Between Levels of Cloud Adoption

Source: IDC CloudView Survey 20115 and custom research

KPI Averages Opportunistic to Repeatable

Revenue Growth 1.4%

IT Cost Reduction 29%

Strategic Allocation of IT Budget 56%

Time to Provision 47%

Meeting SLAs 20%

Cloud Investments Areas

• Hosted private cloud infrastructure services # 1

• Security tools and services# 2

• On-premises cloud systems# 3

• Hosted cloud application services# 4

Source: IDC CloudView Survey

Top Reasons To Create IoT Strategy

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24.0% 22.5% 21.7%

Increase

Productivity

Time To

Market

Process

Automation

N+415

Leading

Lagging

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Which platform? Provisioning & support

Existing software vendors

ISVs for bespoke builds

Capture and analyze the data

Identify next actions

Data privacy Secure endpoint and

content

Integration Implementation Support

Mobile networks Wifi/small cells Etc.

Off the shelf versus bespoke build

Requirements

IoT : A Complex Ecosystem

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Which connection protocol? Which platforms?

?

The Market Desires A “Hub” On IoT

IoT and agile DevOps

Source: IDC Asia/Pacific C-suite Barometer Research 2016 (N=667 CIO/CTO) – QCIO9 and QCIO11

IoT And Intelligence

Sizing Your Digital Intelligence

0

5

10

15

20

25

30

35

40

45

50

Information Created WW

Information Created

Zeta

byt

es*

2020 = 44 ZB

2015 = 9.3 ZB

2005 = 0.1 ZB

2010 = 1.2 ZB

*A Zettabyte = 1 million Petabytes

(93%)

(91%)

(79%)

(% Unstructured)

Information created WW

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Data As A Strategic Asset

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Source: IDC LoB Spending

Guide (APJ IT Spending), 2016

IT spend funding

between business

units and IT

CxO Partnerships Are Essential For Digital

Leaders

Where You Stand?Today’s Tech Buyers

CIO Office’s Resource Share Of Wallet

CIO office’s

time/resources/

budget share of

wallet

VS&MIT ops Governance Innovation

19%34% 24% 23%

Source: IDC Asia/Pacific C-Suite Barometer 2015, (N=1452 , 667 CIO)

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• Identify Digital Transformation

Target

• Embrace the new IT trend

• Choose the right partner

• Achieve sustained growth

Accelerating Your Digital Enterprise

Contact Information

Helen Chiang/江芳韻hchiang@idc.com

+886-2-8758-0828

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