CIO Bimodal José... · In the process of defining a digital ... Waterfall, V-Model, high-ceremony IID ... Replaces Mode 1 Credit Card Platform With Mode 2 System

CONFIDENTIAL AND PROPRIETARY

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that

is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates.

All rights reserved.

CIO Bimodal

Juan Gutiérrez

Abril 2015

1 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.


Digital Insurance Is the Path for Transformation

Digital insurance is the application of information andtechnology to enable new capabilities acrossthe insurance value chain for creating new

business processes, products, services and revenue sources,as well as optimizing and transforming existing ones.


Pollev.com/juanjoge71



It Is a Journey … and Most Insurers Are Still inEarly Phases

No priority yet

Digital strategy defined but not implemented yet

Digital strategy defined and in execution

15%

43%

37%

5%

In the process of defining a digital strategy

Completed digital transformation 0%

Source: Gartner (2015), n = 67



90% of insurers are currently undergoing a business transformation program



Digital Technologies Are Driving New Customer Experience Requirements

Traditional Digital

Where I obtained current policy Auto: 57% from local agent;

Home: 43% from local agent

Auto: 19% online from an insurance company;

Home: 14% online from an insurance company

I prefer to speak to a live rep. vs.

buying online

49% strongly agree 9% strongly disagree

Feel comfortable speaking to a rep.

via video

31% strongly disagree 21% strongly agree

I would like an electronic ID card 39% strongly disagree 22% strongly agree

I would use one or more of the online

comparison quote sites to get prices

for insurance products

11% strongly disagree 39% strongly agree

Preferred method to contact insurer

after claim

37% call insurer;

36% call agent/broker

6% email insurer;

4% email agent/broker;

2% use social media;

11% use PC/laptop;

2% use mobile web;

2% use insurer's mobile app

Source: 2014 Gartner Consumer Study of 6 Countries Survey; Data From U.S. Sample; n = 1,212



By 2017, 75% of IT

organizations will have a

bimodal capability.

Half will make a mess.

The main reason will be

because they didn't address

cultural issues.


What is a bimodal capability?

What does the bimodal road map look like?

How should you start?

Key Issues


Bimodal is not….



Agile development







Bimodal IT is the practice of managing two separate, coherent modes of IT delivery, one focused on stability and the other on agility.



Mode 2 is exploratory and nonlinear,emphasizing agility and speed.

Mode 1 is traditional and sequential,emphasizing safety accuracy.



Mode 1

Goal Reliability

ValuePrice for

performance

ApproachWaterfall, V-Model, high-

ceremony IID

GovernancePlan-driven,

approval-based

SourcingEnterprise suppliers,

long-term deals

TalentGood at

conventionalprocess, projects

CultureIT-centric,

removed from customer

Cycle times Long (months)


2

Mode 2

Goal Agility

ValueRevenue, brand, customer experience

ApproachAgile, Kanban,low-ceremony IID

GovernanceEmpirical, continuous, process-based

SourcingSmall, new vendors, short-term deals

TalentGood at new anduncertain projects

CultureBusiness-centric,close to customer

Cycle times Short (days, weeks)


CIOs should care about becoming bimodal because they cannot confront the range of needs presented by digital business with a single, conventional mode of IT.


ONE STRATEGY

TWO MODES

Underpinned by

THREE SUBCULTURES


Develop a

guardian

subculture to

keep everything

scalable and safe


RiskArchitectural Compliance

Regulatory

Compliance

Tough-mindedarbiters Big picture mindset


3

Traditional (Mode 1) IT needs a subculture focused on delighting

the internal and external customer.


3


3

Nonlinear (Mode 2) IT needs a subculture focused on exploring the new, and continually pivoting and adapting.


3

Minimum Failure Rates

Option Value

New Value Creation

Lean Startup

Multidisciplinary Teams

Self-Managed Teams

Self-Directed Teams


3


Bimodal Is Becoming Increasingly Real

76%

72%

53%

36%

28%

27%

25%

25%

23%

8%

Agilemethodologies

Multidisciplinaryteams

Adaptive sourcing

Different funding

Mode 2 outside IT

Different metrics

Work withstartups/SMBs

Bimodalsubcultures

Formal innovationmanagement

Crowdsourcing

Of Those Who Have Bimodal IT, the Average Proportion of Investments in Mode 2 Is 25%

Adoption of Bimodal Tools by Those On The Journey (n = 360)

38%of CIOs are on the Bimodal IT

journey


Prediction:By YE16, insurers

leading in digitalization will financially outperform slower

digital adopters by 100%.



Fail fast, fail frequent

Create Agility

ManageUncertainity

Validate, learn, pilot


Build to specification

Achieve costreduction

Achieve costfactibility


Resistance Tends to Be Rational, Emotional and Political

Rational

PoliticalEmotional

Does this make business sense?I am not sure we

have the resources.

What's in it for me?

Why do we need to change?

Does this make my influence grow?

Does this fit with my agenda?

Waterline


Ideal characteristics of a nascent Project Bimodal initiative


It´s a greenfield project requiring no big infrastructure changes


It´s innovative/transformative


It´s targets the end customer or citizen


It´s centers on the Nexus of forces


Select Your Projects Based on Their Mode 1 Impact

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."— Chris Osgood, Co-Founder and Co-Chair, MONUM

Impact on Mode 1

High

LowBimodal Maturity

High

Island

Extend

New Core

Replace-ment


Start With an Island Project


Virgin Atlantic:Pilots GoogleGlass With High

Value Customers

Luxottica: Creates Facebook-like Retailer Site

on CRM Platform

IPC:Replaces Mode 1 Credit Card Platform With Mode 2 System

City of Boston: Attempts OneCard for Metro Pass,

Library Card, School ID

Island

Replace-

ment

Extension

New Core



Organizational Structure A — Mode 2 Reports to the CIO

CIO

Mode 1 Development

Mode 2 Development

I&O

Mode 1

Enterprise Architecture

Add Organizational Distance at First

Fast Track: DevOps, Automation and

ContinuousDelivery


Organizational Structure B — Mode 2 Reports Outside IT

CEO

CIO

Mode 1 Development

I&O

CDO

Mode 2 Development


The main limiting factor in Mode 2 isAccess to right skills, experience and

behaviors


Success in Project Bimodal

center in ..


Finding people with a Mode 2 Set


Creating organizationaldistance



Finding RM who act as Innovation Managers


Recommended Gartner Research

For more information, stop by Gartner Research Zone.

Bimodal IT: How to Be Digitally Agile Without Making a Mess

Mary Mesaglio and Simon Mingay (G00268866)

The End of the Waterfall as We Know It

Matthew Hotle and others (G00238330)

Three Steps to Successfully Implementing Bimodal-Aware

IT Governance

Heather Colella, Tina Nunno and Others (G00260166)

The Transition to Agile Methods Requires a Culture Shift From

'Me' to 'We'

Matthew Hotle, David Norton and Nathan Wilson (G00264305)

http://www.gartner.com/document/2798217?ref=QuickSearch&sthkw=Bimodal IT: How to Be Digitally Agile Without Making a Mess&refval=140770481

http://www.gartner.com/document/2127715?ref=QuickSearch&sthkw=G00238330&refval=140770549

http://www.gartner.com/document/2901217?ref=QuickSearch&sthkw=G00260166&refval=148642653&qid=945aa7a001cad6f0f51c08d534946a06

http://www.gartner.com/document/2920618?ref=QuickSearch&sthkw=The Transition to Agile Methods Requires a Culture Shift From 'Me' to 'We'&refval=148642655&qid=5868b0f46747beffd46ed43797858f59

CONFIDENTIAL AND PROPRIETARY

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that

is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates.

All rights reserved.

CIO Bimodal

Juan Gutiérrez

Mayo 2015



Top Discretionary Areas Where Company Is Spending Highest Amount in New/Discretionary Funding in 2015

14

22

15

24

28

38

50

Security

Mobile

Cloud

Legacy Modernization

Infrastructure and Data…

Digitalization/Digital…

BI/Analytics


Insurance IT Investments, 2015 to 2016


Documents

CIO Bimodal José... · In the process of defining a digital ... Waterfall, V-Model, high-ceremony IID ... Replaces Mode 1 Credit Card Platform With Mode 2 System