Digital Disruption and Your Career 2016smconference.com.au/slides/Service-Management-2017-Peter...2016 Service Management 2017 Digital Disruption • The internet give everyone the

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Service Management 2017

Digital Disruption and Your Career

There is some very good news

Adjunct Professor Peter [email protected]

au.linkedin.com/in/peterdgrant/

WEDNESDAY 23 – THURSDAY 24 AUGUST 2017| SOFITEL MELBOURNE ON COLLINS

mailto:[email protected]

http://au.linkedin.com/in/peterdgrant/

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Digital Disruption

• The internet give everyone the ability to interact with almost anyone on the planet, in almost anyway they choose for a cost that close to free.

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Digital Disruption

What goes wrong

What makes a success

What about YOU

The Digital Challenges

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The World is Changing Around Us

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The GFC was Different. Why was that?

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Some Digital Disruption Examples

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Service Management 2017Peter Grant – IBRS July 10 2014

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Digital Disruption

What goes wrong


What about YOU

The Digital Challenges

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People don’t respond quickly enough

They are sitting ducks for the startups !

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Blockbuster Video

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Blockbuster Video

• Short History of Blockbuster Video

– Blockbuster Video was a $1 Billion business in 2009.

– Customers put up with the limitations of physical media until there was something better. (NetFlix)

– Blockbuster was dismantled in 2012.

• Standard DIGITAL DISRUPTION Mistakes

1. Slow to react. Believed they were on the right track.

2. Ignored customer desires – one could argue they did not know what their customer’s desires were.

3. Initial response was to cut costs by $330 Million – seemingly in the belief that the business model only needed tuning rather than a complete replacement.

4. Last resort was to have a web site showing a list of videos.

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Failure to Start !!!

Unaware Folklore

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People don’t understand what has changed

They are using yesterday’s thinking for tomorrow’s problems.

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When people learn to play like this at home – they will expect to do it at work!

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But there’s MORE !

COMMODITISATIONCOMMODITISATION

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And the Internet of Things

Who is looking after all of these? SMAC, Commodity, IoT

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All These Changes Mean NEW Jobs in IT

But we will fail if we don’t understand how to make all this work.

So WATCH OUT FOR …

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Failure to see SPIN from Laggard Vendors

Cloud is no good

Folklore used to keep customers convinced their old product is best

True SaaS Vendor

Composable service.

We have cloud too !

Put OLD product on someone else's cloud and say it’s new.

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Failure to Understand What is Needed

Don’t understand XaaS Concepts Buy the non-XaaS products

Early movers need knowledge and good judgement.

Best advice, if your not sure then don’t get locked-in. Avoid long term contracts !!!!

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Failure to Understand Evergreening

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Failure to Understand and Seek SaaS (XaaS) Benefits

• Scalable

• Pay as you go

• Composability

• Reduce vendor lock-in

• Reusable Quality

• Unit cost reductions

• Vanilla + Tailoring

• Speed to market

• Simpler – lower risk

• Meet Backlog !

• ‘Natural’ Mobility

• Consumerisation

• Commoditisation Analytics

• Connectivity

• Evergreening

• Better Prioritisation

• Credibility !

• Customer Focus

• Innovation / Startups

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Failure to Have the Right Investment Governance and Culture

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Failure to Recognise the Increased Workload

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Failure to Manage the Change

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Digital Disruption

What goes wrong


What about YOU

What Makes a Success

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We Must Understand the Changes and take advantage of them.

Our Value Proposition

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Digital Disruption – What does it mean to us?

1. Niche services (sourced from specialists) will be easy to plug and play.

– There are some 20,000 available and the list of growing every day.

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Digital Disruption – What does it mean to us?1. Niche services (sourced from specialists) will be easy to plug and play.

– There are some 20,000 available and the list of growing every day.

2. Balance of power shifts to Customers

– Your Customers have resources and IT systems from all over the world on their devices and on their phones.

– They can build their own processes from services available online.

• They replace central formal processes (eg document management) with their own solutions.

3. Speed is the FIRST, SECOND and THIRD KPI

– If I can have an outcome immediately why would I wait?

4. A shift in the locus of economies of scale

– It is no longer important to build economies of scale locally

– Scale comes from the new SaaS business models - Specialisation now trumps scale.

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The Locus of Scale Changes

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Take Advantage of Reach and Scale

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Example: How to Be Successful – Reach and Scale

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What does this mean for the IT Industry

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The Server Industry – How Long Will Server Retail Last?

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It’s All About Services.

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A new paradigm – based on Speed and Openness

The Rise of the Composable Enterprise Forbes (2015)

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Services are the Common Building Blocks – combined to deliver Unique Outcomes

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What are the Best Organisations Doing

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Lines of Business

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Cloud Service Broker (Aggregation, Integration, Customisation)

Lines of Business

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Can I ‘compose’ an entire business on these innovative SaaS

and BPaaS services?

ALMOST…

But it is becoming more viable every day !

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Summary of IT Industry Changes

• Client Server Internet

• Monolithic Applications Services

• Firewalled Environment Data Stored Externally

• Locked Down Desktop Devices Commodity Mobile Devices

• Large Capital Investments Short term Service Contracts

• Integration is the bottleneck Integration is the Solution

Who establishes and runs this new ecosystem?

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Security – An Important Capability

OR

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Digital Disruption

What goes wrong


What about YOU

So What About You

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Service Management 2017Peter Grant - IBRS51

Codifiable jobs will be

replaced.

People jobs won’t be.

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But it’s NOT only about AUTOMATION.

It’s about TRANSFORMATION. There will be NEW jobs.

And lots of them are in IT

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Some New IT Roles• Create the new Business/Technology Ecosystem

– Design, Integration, Security, Robust

– Eliminate Last Generation Controls

– Drive services into commodities.

• Proactively assess service offerings

– Keep ahead of the needs and aspirations of business and external clients

– Be ready to help people with Services when they want them

• Direct and accredit vendors

– Non functional specifications (culture, release / problem management, security, performance, integration architecture, identity…)

• Drive XaaS benefits (business and technical)

• Coach business areas.

– Who will provide the independent advice for your business areas.

• Facilitate the provision of business analytics

– It’s all about helping people make better decisions.

– Where is the data, is it appropriate, how can I use it, help me form the decision I need to make.

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Summary

1. Big changes being driven by SMACC, Commoditisation, and IoT. The business model for every business in the world will change in 5 years and that includes IT teams.

2. There is a whole new BUSINESS-TECHNOLOGY ECOSYSTEM to develop and manage. There will be new roles, more positive and creative work, new careers and more VALUE / RESPECT!

3. The spoils will go to those who can identify opportunities and reset their skills and attitudes to meet the challenges. You have time if you THINK about it and START now.

4. Remember the Economist – People oriented skills cannot be replaced with digital disruption. They become more valuable.

5. There is more work to do in IT than before and it’s higher value !

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Questions

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Useful Links

• http://www.mckinsey.com/

• http://www.bostonconsulting.com.au

• http://www.ey.com/AU/en/Issues

• http://www2.deloitte.com/au/en.html

• http://www.cognizant.com/

• www.hbr.org

• www.economist.com

• https://www.mulesoft.com/

• https://www.bvp.com/

http://www.mckinsey.com/

http://www.bostonconsulting.com.au/

http://www.ey.com/AU/en/Issues

http://www2.deloitte.com/au/en.html

http://www.cognizant.com/

http://www.hbr.org/

http://www.economist.com/

https://www.mulesoft.com/

https://www.bvp.com/

Documents

Digital Disruption and Your Career 2016smconference.com.au/slides/Service-Management-2017-Peter...2016 Service Management 2017 Digital Disruption • The internet give everyone the