Changing the rules of doing business!

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1 Business Information Technology, towards 2020 Changing the rules of doing business! Dr. Barry Derksen

2 Volledig rapport? Vul de vragenlijst rondom trends in voor uw organisatie of uw klant. U ontvangt dan vanzelf het volledige rapport. Link naar vragenlijst: https://www.surveymonkey.com/s/ptrkmyc

3 About Barry (Associated) Professor Doctor Master of Management Consultancy Cer:fied Informa:on Systems Auditor Cer:fied in the Governance of Enterprise IT

4 IT & Ice-skating seconds? - Afstand correctie binnenbaan versus buitenbaan geeft een tijdverschil - IT verandert de regels van het spel

5 What s going on In 2014/2015 Internet larger reach than TV Google glas publically launched First solar Airplane around the world (64 meter wing, solar cells..) Personal DNA sequence < $100 Memristor technology available (nano technology not based on on/off switch) Smart watch is the new gadget (apple) Laser guns at U.S.Navy India to Mars (camera/ infrared/heatting,..) source: timeline.net bron: futuretimeline.net / Gartner / BITTI.nl

6 your 2015 management issues Management Concern Global North America Europe Asia Australia Latin America Africa Alignment of IT and/with the business Business Agility Velocity of change in IT Business Cost Reduction / Controls Business Productivity Security /Privacy Business Continuity/Disaster Recovery Time-to-Market / Velocity of Change IT Value Proposition in the business Innovation making the organisation more productive with reliable, cheap instruments but with taking in account the alignment & security bron: bitti.nl

7 PERCENTAGE OF REVENUE ALLOCATED TO IT BUDGET 12% ) % 9.38% 10.9% 11.1% 8% 8.1% 6% 4% 2% 5.8% 5.8% 5.6% 4.7% 5.5% 5.6% 6.0% Avg. of yearly averages 6.4% 6.1% 6.3% 5.8% 5.4% 5.5% 4.9% 5.0% 4.8% 3.9% 3.3% 3.6% 5.3% 5.6% 5.2% 5.5% 0% Global Africa Asia Europe North America South America Australia

8 IT BUDGET CHANGE ACTUAL % 60% 2014 is greater than is equal to is less than % 62% 62% 56% 56% 50% 40% 30% 20% 22% 11% 34% 3% 30% 42% 29% 14% 24% 33% 11% 40% 40% 20% 24% 20% 0% Africa Asia Europe North America South America Australia Global

9 To stay...business Intelligence is big data &... Str.pl. Str.pl. Str.pl. BSC Einstein s target was intelligence. source: Bain & Company

10 How do we determine 0,001s? Analytics / Business Intelligence 1 2 Application/Software Development 5 3 Data Center / Infrastructure new 4 Cloud Computing (e.g., SaaS, PaaS, IaaS) 2 5 Enterprise Resource Planning 4 6 Customer Relationship Management 3 7 Big Data 7 8 Security / Cybersecurity 16 9 Workflow Tools (prev. Incl. collaboration tools) 9 10 Integration 11 Out of top 10: Mobile Apps, BPM, Customer Portals, network/communications 10 bron: bitti.nl

11 ORGANIZATION S LARGEST/MOST SIGNIFICANT IT INVESTMENT Trends in IT Global Africa Asia Europe North South America America Australi a Analytics / Business Intelligence Application / Software Development 2 Data Center/Infrastructure Cloud Computing Enterprise Resource Planning Customer Relationship Management 6 Big Data Security / Cybersecurity Workflow Tools Integration

12 Comeback Virtual Reality 1st phase Masdar city (Abu Dhabi) ready: first complete green technology city, zero waste/carbon First moon tourist (Dennis Tito was in 2001 first space tourist) Batteries 10x longer & faster charged & in smart devices (based upon lithium -ion) 3d printing consumer product. 10 nanometre chips in mass production (Moore s law ends) sources: FutureTimeline, Gartner, BITTI.nl

13 Are you experimenting with?

14 TO WHOM CIOS OR EQUIVALENT REPORTS: % 70% 69% CEO/President COO Board of Directors CFO Business Unit Executive 60% 50% 40% 51% 34% 40% 42% 43% 43% 38% 38% 40% 30% 20% 0% 17% 14% 13% 2% 0% 0% 0% 25% 24% 19% 21% 9% 7% 8% 5% Africa Asia Europe North America 14% 0% 0% South America 19% 6% 6% Australia 27% 22% 9% 4% Global

15 HOW CIOS SPEND THEIR TIME (%) 2014 Architecture IT Governance IT operations HR Relationship with Business Relationship with IT staff Relationship with Vendors Software Development Strategy Other Australia 9% 13% 12% 13% 9% 5% South America 14% 11% 8% 9% 9% 13% 7% 9% North America 5% 7% 13% 21% 16% 7% 2% 18% 1% Europe 12% 9% 17% 13% 11% 8% 7% 7% 5% Asia 8% 11% 9% 9% 9% 6% 8% 16% 14% Africa 8% 9% 15% 11% 6% 8% 16% 7% Global 11% 11% 15% 12% 12% 8% 7% 5% 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15

16 Extreme makeover CIO How CIO s (should) spend their time? Europe US 6% Asia/Australia 4% Europe US 7% 7% Europe US 9% Europe 12% US 11% 7% US 18% Asia/Australia 11% CIO 1.0 Recognition Control Europe Europe 11% US 12% Asia/Australia 13% Nerds Frameworks Intravert Silos Closed Upgrade Know cost BITTI BV. Asia/Australia 5% Asia/Australia 12% Europe 11% Europe 17% Asia/Australia 12% bronnen: BITTI.nl, prof.dr. Jerry Luftman US 11% US 9% Asia/Australia Asia/Australia CIO 2.0 Fusion Risk Hybrids Culture Extrovert Mashups Open Evolve Feel Value

17 To watch for! Phase 1: Media & Information publically available Last 20 years: Internet changed publicity participation was in bits Phase 2: Social Media is hot Phase 3: From bits to Atoms (digitalizing the physical environment)

18 Internet & Economy st phase Internet Search nd phase Internet Low level of digitalization Social rd phase Internet Drivers: Smart Cities Robotics Singularity Wearables Quantified self Smart systems 3D printing Physical elements are next! High Level of digitalization Media / Information 15% of the Economy Digitalizing the physical environment (production, healthc are, homes, cities,.) 85% of the Economy

19 What to do: seconds or euro s in business & IT alignment BITTI BV. bronnen: prof.dr. Hans Mulder Bron: prof.dr. Hans Mulder

20 Trend = Cloud Identity Authenticatio n VPN BRE Business applications Limited configuration control Complete control Complete control Firewall Applicatio Portals Security n Application servers infrastructure (hosting environment) Control No control Limited configuration control Complete control File SAS70 systems ISAE3402 Operatin g systems Technical infrastructure Network systems No control No control Limited configuration control Etc. Data storage Hardware Cables, etc. No control No control No control source: Trends in Business & IT 2012/2013

21 Hype%or%hope? 3dmakersmagic dmakersmagic 2013

22 Disruptive Technologies next few years source: McKinsey

23 Internet has 5 biljoen users. 5G available Texting by thinking Energy net is completely intelligent > 10,000 drones worldwide Games real-life (e.g. 3d).. & bigger / more intelligent than Google. Human A.I. becomes reality Groceries without seeing someone sources: FutureTimeline, Gartner, BITTI.nl

24 Trend: predictability decreases, impact increases bronnen: Scott North, 2012

25 RANKING OF IT MANAGEMENT WORRIES Management awake at night Global Africa Asia Europe North America South America Australia Alignment of IT and / with the 1 business Business Agility Security / Privacy IT Talent / Skill Shortage Business Continuity Business Productivity Vendor Management CIO Leadership Role Business Cost Reduction IT Time-to-Market

26 Smart Grids realised in all western countries Most cars will be plug in electric AI is normal usage within organisations Super fast crime-scene investigation New rols: avatar manager, body part maker, waste data handler Quantum computers anywhere Old computers will receive the 03:14:07 UTC on Tuesday, 19th January 2038 Bug bronnen: Futuretimeline, Gartner, Wikipedia, BITTI.nl

27 Trend = not made by Bron: Gartner bron: Gartner, Wilkinson

28 Dr.Barry Derksen Business & IT Trends Institute 28 professor at Novi University of Applied Sciences Associated professor at Vrije Universiteit Amsterdam - Post Graduate IT Auditing Manager at Stedin BITTI BV. 2013

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