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Digital disruption - leader or follower?

Divina Paredes | July 5, 2016
Build your foundations now, cloud is the platform for digital transformation, advises Louise Francis of IDC.

Cloud core: More than 40 per cent of IT organisations will commit to hybrid cloud architectures in 2017.

'Open' becomes a mandatory cloud evaluation criteria by 2017: Over the next two years, standardisation of critical element of the cloud will make it easier for companies to integrate and move workloads across private, public and hybrid clouds, she states.

IT and line of business: Francis says 80 per cent of major IT decisions will involve a partnership between IT and line of business. "We are going to surpass this prediction within the next two years," she declares.

By 2020, 60 per cent of IT assets will be offsite: These assets will primarily be in the cloud. The staff in the organisation will be building competencies around new innovations.

Cloud first, customer first

Francis says New Zealand companies aim to address digital disruption by using three tools: Cloud orchestration/hybrid management, modernise legacy apps and infrastructure rationalisation.

But companies have told IDC the main driver of cloud transformation is customer experience.

"Everything you do in the cloud is not building better technology platforms, but better customer experience," she says. "Everyone is talking about the customer now, you need to focus on the customer benefits."

The cloud transformation thrivers give a higher priority on providing contextualised and personalised customer experiences, she says. 

"Focus on customer facing technology," she states. "Survivors focus on traditional infrastructure."

Benchmark yourself

She says it is important for organisations to benchmark themselves on where they are in the cloud maturity landscape.

As well, she says the framework IDC developed can be applied to digital transformation and any kind of technology.

She warns, thought, that this framework "is not as neat as it looks".

"There are really some big mountains to climb there," she told conference delegates, and the biggest is the step from opportunistic phase (collaborative standardisation) to repeatable phase, where an organisation's agility is unleashed.

The ad hoc stage, which is the first step, is really the experimentation stage, she explains.

This is when point solutions are coming through the organisation. "Shadow IT is rife at this stage."

The opportunistic phase is where most companies are currently, in New Zealand and also around the world. This is where we see collaboration, though still quite short-term, around a particular campaign.

Once you get to the managed stage though, the step to optimise is not that hard, she states. "It is just refining what you are already doing into that managed stage and working through that optimised phase."

She says not many companies here and globally are at this stage. Survey results show that only 4 per cent of companies globally believe they are in this class.


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