After years of convergence, the future of IT is the future of the enterprise and vice versa. Modern businesses can’t survive – much less thrive – without fully integrated digital infrastructure and competencies. CIOs must focus on running the current business while developing new capabilities for an emerging future.

In Future IT 1.0, IDC has developed a framework for creating the future IT organization that enables you to assess your current competencies and prioritize as you manage complex change across a number of dimensions.

The Future is Cloud

As the foundation of digital transformation (DX), cloud has already changed how IT has been architected and operated. Early choices made on platforms, resource management, and operational workflows can create long-term obligations that potentially limit agility and growth opportunity.

What:

This module helps CIOs and IT leaders get the tools necessary to calculate costs, create new KPIs and visualize success in seven critical areas for application modernization. Included are Cloud Budget Planning models, a process for calculating migration costs, and options for a Hybrid Cloud Implementation.

Why:

IT leaders are challenged to understand different cloud options and map it to their organizational DX strategy. A cohesive cloud adoption strategy creates a framework for management to navigate the changing cloud landscape while staying focused on important business priorities.

How:

Developing an effective cloud strategy and operations to support the digital enterprise includes the following steps:

• Work through the cloud economics
• Add cloud management services to IT services portfolio
• Understand Technology and Supplier Options for IaaS and PaaS

New realities require new security models

Digital transformation is changing the way organizations conduct business. Traditional security models are not enough. As organizations grapple with new IT architectures, it is important they incorporate a security model that aligns with this new reality. IDC estimates that more than half of Fortune 500 companies with US headquarters have adopted the NIST (National Institute of Standards and Technology) Cyber Security Framework (CSF) as their primary control framework for cybersecurity.

Adoption of the NIST CSF as a control framework is a signal to potential business partners, customers, regulators, and the general public that the organization is serious about cybersecurity and is managing a comprehensive program.

What:

This module will help IT leaders focus on security priorities that deliver the largest return on effort in your program to develop digital trust and protect the organization’s vital data, applications and infrastructure. Learn the most effective programs and projects to “move the needle” on security.

Why:

Three out of four (74%) organizations have not yet created a security program to address their DX needs. Digital transformation forces enterprises not only to reconsider their security in terms of traditional risk management activities, but also to understand how their security reputation may affect their success. It’s important to evolve security programs to align traditional practices of risk assessment and cybersecurity controls with the more fluid, dynamic needs of DX.

How:

To plan the right projects as part of the NIST CSF, your organization needs the following steps:

• Establish your Business Goals for Security
• Identify Unwanted Outcomes
• Calculate Risk
• Focus on data
• Understand NIST basics
• Focus on the most effective outcomes
• Choose projects to implement NIST

What:

If your organization is just starting a transformation, this module has detailed advice on the foundations for a digital transformation, such as establishing a leader, assessing where your organization needs to head, and creating high level goals and a structure to get there.

Why:

As the digital transformation movement matures and changes, companies that are not working towards becoming a future enterprise are at an increasing competitive disadvantage. With over 50% of enterprises now establishing long-term strategic digital plans, investors now expect a digital dividend and industry executives must go on the offensive to deliver.

The Future Enterprise

The future enterprise is IDC’s vision for how firms must organize and invest to participate in increasingly digitally centric markets. The future enterprise, often called a digital native enterprise, can scale operations and innovate at a pace that is an order of magnitude greater than traditional businesses.

How:

Digital success requires a determination to transform, a clear leader, and a real roadmap. If you’ve already established these, then one of our other Planning Guides will help you execute that plan. But if you’re just getting started, you can lay the foundation for a transformation to the future enterprise with these initial steps.

• Measure your current maturity level
• Establish a change leader
• Assess your current situation
• Develop a common mission
• Develop high levels and approach

Overcome Roadblocks

Investments in analytics and artificial intelligence are driven by the promise, opportunity, and excitement of a new wave of automation that not only drives inefficiency out of processes but also changes how people interact with the digitized world around them and how processes and whole ecosystems change because of automation. However, investment will be moderated by shortage of algorithm training data, outdated legal frameworks, shortage of analytics staff, behavioral biases, and insufficient attention to analytic orientation and data literacy.

What:

This module will help high-level IT leaders choose appropriate technologies and suppliers through an understanding of key data management options. Employing the Appropriate Data Management and Analytics for your organization will requires a comprehensive understanding of the technology and supplier options for options such as analytic and performance management applications, data management and integration, along with business intelligence and analytic tools.

Why:

80% of time is spent on data discovery, preparation, and protection, and only 20% of time is spent on actual analytics and getting to insight. Much of the spent managing data is wasted; up to 12 hours per week because people cannot find, prepare, or protect data. Data intelligence software has the potential to change this ratio, providing users with the ability to find data easier and understand context and definitions for better integration, resulting in faster, more useful intelligence.

How:

Making appropriate technology selections involves the following steps:

• Create Data as a Service Offerings (DaaS)
• Understand Your Data Management Technology Options and Suppliers
• Understand Your Data Analytics Options

Investments in analytics and artificial intelligence will changes how people interact with the digitized world around them and change entire processes and whole ecosystems. Artificial intelligence software platforms provide the functionality to analyze, organize, access, and provide advisory services based on a range of structured and unstructured information. These platforms facilitate the development of intelligent, advisory, and AI-enabled applications, including intelligent assistants that may mimic human cognitive abilities.

What:

This module will help high-level IT leaders choose appropriate AI technologies and suppliers through an understanding of machine learning and AI options, including everything from Conversational AI Platforms, Program Advisors & Recommendation, Automated Discovery, Work Automation and Labor Augmentation & Enhancement. IDC has created an AI-based automation evolution framework that evaluates the interaction of humans and machines across five levels.

Why:

To most effectively deploy AI processes and technologies requires a framework and an understanding of what technologies are available, what platforms are capable of and key barriers. This will help control costs and reduce resistance among your workforce and customer base.

To help you make the appropriate AI selections for your organization, take the following steps:

• Determine Where AI Technologies are Best Utilized in Your Organization
• Understand when Robotic automation or Intelligent automation technologies are appropriate
• Plan Business Automation for Your Organization

How:

Making appropriate technology selections involves the following steps:

• Create Data as a Service Offerings (DaaS)
• Understand Your Data Management Technology Options and Suppliers
• Understand Your Data Analytics Options

The RFP as we know it is a legacy of the past, and is not always the most effective tool in competitive procurement. All too often companies follow a RFP process because it’s what they have “always done.” and get repetitive boilerplate back from vendors – all without necessarily solving the business problem the technology was intended for.

Enterprises need to forgo the old complex and lengthy RFP process and instead adopt efficient, standardized approaches to procuring IT products and services. There are better, faster ways to identify vendors, evaluate capabilities and solicit pricing through agile sourcing.

What:

IT executives will understand more about overhauling the RFP process and replacing it where possible with more agile and efficient approaches to sourcing. These approaches, based in business need, help break down walls between functional groups, while still creating a competitive environment among vendors.

Why:

Enterprises that adopt Agile Technology Sourcing report higher year-over-year revenue increases and get higher percentages of revenue from digital transformation initiatives. With budgets tightening from the effects of the Covid-19 pandemic, the increased revenue, agility, speed, and cost savings from agile sourcing are imperative.

How:

To modernize its procurement practices, your organization needs the following steps:

• Quantify sourcing challenges and legacy technology
• Pursue agile sourcing
• Follow a process
• Follow updated RFP best practices when you do need an RFP

Digital KPIs drive digital transformation and enterprise adoption of both new technologies and new ways of working in those technologies for all parts of the enterprise, including operations, back-office, marketing, and customer-facing functions.

What:

Move your organization from among the digitally distraught to one poised to succeed in the changing digital landscape. CIOs and other transformation leaders will learn ways to develop and effectively use new DX and Digital Business KPIs, and adapt planning, budgeting and forecasting for service-based IT budgeting models and digital transformation.

Why:

IDC research shows organizations that have and regularly use digital measures in areas such as innovation, digital operations, and customer advocacy achieve significantly better digital capabilities and improved competitive advantage.

How:

Getting the executive suite, business unit managers, and staff managers understanding, developing, budgeting for, and using digital KPIs as barometers of transformation journey success, involves these steps:

• Develop KPIs that allow accountability
• Effectively use digital business KPIs
• Develop new IT KPIs for digital business
• Adapt your planning, budgeting and forecasting system for DX
• Allow budget (s) for DX
• Create a service-based IT budgeting model

What is success in cloud adoption?

Organizations are heavily committed to and invested in cloud – over 74% of organizations are currently using SaaS and over 50% or organizations are using PaaS and IaaS. The adoption of cloud comes with a whole host of new hurdles from adoption strategies to cloud economics to multi-cloud management strategies.

What:

Get the tools necessary to address security, choose vendors and successfully develop and manage your cloud services and roadmap.

Why:

The cloud services model is no longer something enterprises need to develop “competency” in; they need to master the cloud. A majority of hardware and a larger majority of software is now built for cloud deployment. Understanding and measuring your success in mastering cloud paves the way to the future enterprise and avoids major problems that can result from a poorly implemented cloud strategy.

How:

Maintaining and measuring a cloud strategy for the digital enterprise includes these steps:

• Establish metrics to measure your cloud program
• Maintain compliance in the cloud
• Manage multiple clouds effectively
• Assess vendors