While last week was a focus on cyber security, this week Jesper Nielsen, Director of Technology & Enterprise Application at Deloitte Luxembourg, gives a view of the changes for technology services in the next few years to accommodate the accelerating Digital Transformation (DX).

 

When reading the immense amount of information we are all getting in our different inboxes today, there is a lot of talk, and much noise, about “digital disruption”. The word “disruption” is frequently used in articles and often used as an explanation of what “digital” really is.

 

However, not all digital is disruptive and not all disruptiveness is digital, but quite often digital is transformational in various degrees for organizations moving down the digital route.

 

Jesper Nielsen, Director of Technology & Enterprise Application, Deloitte Luxembourg

Jesper Nielsen, Director of Technology & Enterprise Application

at Deloitte Luxembourg 

 

DIGITAL IS UNAVOIDABLE

Digital is, however, really an era of development leading to the exponential era (where current exponential technologies—AI, additive manufacturing, quantum computing etc.—become mainstream); it is an enabler leading us to the so-called Insight Economy. We already see many digital organizations around us today, and we are constantly bombarded with new digital services, from Netflix to smartwatch applications (which we surely cannot live without!), hence we are all starting to understand what digital is from a consumer perspective.

 

While the pace of change is high, and certainly higher than most organizations are accustomed to, it is not moving quite as fast as it seems when reading many media reports (where we hear about only the most attention-grabbing stories). There is still time for organizations to get on-board the digital transformation train, but strategic choices must be made: Do you want to be a leader or a follower? Do you want to innovate or emulate? What is the resulting effect on your organization? In any case, the transformation will affect what customer value your organization provides and how you will provide it.

 

TECHNOLOGY’S CHANGING FACE

For IT organizations to take advantage of these changes, some areas should be technology focal points. The most relevant examples are described below.

 

Data

The new digital services require sustainable data architectures, a high level of data in- and out-flows, and Big Data solutions to sustain their relevance, as data analytics become embedded into the application fabric. For this to be possible, the technology infrastructure stack must be transformed into to a modern, stable, and adaptable platform, set up and organized as services.

 

Cloud

Cloud services – all types and models (including private cloud) – will be the norm for all new services, to facilitate a more adaptable and flexible self-service platform. Service delivery of legacy services, which cannot be migrated to the cloud, will largely remain unchanged, but remaining services will gradually move to the cloud. In essence, cloud services will be the new core IT Infrastructure.

 

Applications

As the enterprise application landscape becomes increasingly diversified, new approaches to software development is needed. Some applications will be delivered as COTS applications, while others will be cloud-sourced. Internally, the application development must also adapt to ensure application integration and business integrity. DevOps is an approach based on lean and agile principles in which the development, operations, and quality assurance teams collaborate to deliver software in a continuous manner (faster-time-to-value). These different application delivery models will together enable a complex application landscape for greater business agility, new digital services, and faster inclusion of customer feedback.

 

Internet-of-Things

The Internet-of-Things devices and solutions are coming fast; in just a few years, organizations will be purchasing data in large amounts from data aggregators to further enrich their analysis and applications. No industry will be exempt from this development (including the financial industry!) and the most creative and innovative organizations will be able to develop business advantages by sourcing the right data and combining it with customers’ own IoT information. This data cocktail might appear illusive but the benefits for new digital services will be huge.

 

Risks & Security

Security concerns will be a major challenge in such a connected and multi-sourced environment. Risks will change significantly from what we know today, and the border between business risks and technology risks will blur. This sets new requirements for how business and IT work together to ensure continuous business services. Indeed, also in this area we will see many services becoming cloud-enabled or outsourced, with internal employees moving toward a coordination/orchestration role focusing on business specific context.  

 

THE AGILE IT

For IT to take advantage of these services and to create an “agile IT service organization”, where IT has the ability to quickly provision and scale services according to demand, the following areas should be considered already today:

 

. Technology Perspective

. Operating & Management Perspective

. Risk Perspective

 

The CIO

Everything above results in a multi-sourced technology infrastructure, with a diverse data and application landscape, where new code is the lifeblood of all revenue-generating activities. Successful companies will be innovating new services while IT departments start to act as software providers that structure themselves as teams, resulting in arrangements that appear more like business partner relationships.

 

Such a metamorphosis is the responsibility of the CIO who must take a very active part in the overall digital transformation. This means moving into the business sphere, looking at IT from multiple perspectives, and focusing on IT's current and future value proposition. In short, the role of the IT department will be significantly redefined in the next few years, leaving many existing activities to outside service providers but taking up completely new activities as well.

 

As Peter Drucker said: "Doing the right thing is more important than doing the thing right, and if you want something new you have to stop doing something old".

 

Come back next week as we continue to discuss the concept of “digital” with Deloitte Weekly Tech Thoughts.

 

Source: Deloitte Luxembourg

 


Publié le 09 mars 2016