For a number of years now, the enterprise has been well underway in their digital transformation efforts, as they use data analytics, mobile, cloud services, IoT and other technologies to transform their organizations. But while some companies have embraced digital transformation, others have lagged. They’ll be playing catch-up in 2017, while their counterparts will be busy improving and accelerating processes where they can and building upon what has been achieved.
Based on my interviews in recent months with CIOs, chief digital marketers and chief digital officers, here are a number of big trends in digital transformation that I see in the year ahead:
Some CIOs continue to struggle to shake role as IT plumbers
As enterprise digital transformation continues, even accelerates, those CIOs who focused on keeping the lights on through ensuring the infrastructure and services were in place to keep data available rather that on driving digital initiatives forward will continue to see their relevance diminish.
Those who will lead forward with increased relevance will be the CIOs who focus on new ways for their organization to better support the business with the technologies they need to succeed and partner with the business units, rather than just provide the technological infrastructure for them to do it themselves.
Business alignment with IT remains a challenge
If you are a reader of DevOps.com, you know alignment between the business and DevOps is crucial for enterprise success. In other words, IT leadership must deliver the technology the business actually needs and wants. Seems obvious and straightforward. And it is. It’s just proven to be a not very easy thing to accomplish.
According to the Deloitte 2016 – 2017 Global CIO Survey, the “business expectations of IT and IT capabilities are out of sync in several areas, including customer focus, technology-enabled business growth, and business innovation. For example, even though 57 percent of the CIOs surveyed said that customers were their organization’s top business priority, less than half were involved in delivering customer experience (45 percent) or working on customer acquisition, retention and loyalty (44 percent).”
That’s interesting enough. But the survey results got even more dismal: “Even though 78 percent of CIOs said that strategic alignment of IT activities with business strategy was critical to their success, only 5 percent said it was a leading-class capability in their IT organization.”
CIOs that want to not only thrive but—at the very least—survive are going to need to close this alignment gap.
Bimodal IT gains more traction
The concept of bimodal IT is a controversial one. Essentially, bimodal IT is a descriptor from the research firm Gartner that remarks how IT organizations have a need for both agile delivery of technology services and traditional delivery modes. In the Gartner model, so-called Mode 2 teams are focused on DevOps and agile delivery methods, while Mode 1 teams focus on delivering the more established applications in traditional and more predictable ways. A brief explanation of these terms from Gartner is available here.
Also, according to Gartner, nearly 40 percent of CIOs are currently practicing bimodal, with the majority of CIOs saying they will embrace bimodal sometime in the next three years. This signals to me that the proof of bimodal success is coming in and more enterprises will continue to follow.
The trend toward Citizen Developers increases
More enterprises in the year ahead will embrace the so-called citizen developer to provide some of the apps enterprises need. According to the QuickBase State of Citizen Development Report, 75 percent of those enterprises surveyed said that they develop more than three-fourths of the app and leave the “last mile” to the citizen developer. And, not surprisingly, most (65 percent) are building apps to get work done, while 42 percent build apps to run the business and 27 percent build apps targeting customers.
“These citizen developers can go a long way to help clear the application backlog. Per the report, 29 percent have seen a 2X or more increase in application development speeds. Over three-quarters or 76 percent of respondents cited operational efficiencies as the primary reason for using the platform. And a whopping 62 percent of Citizen Developers responded that it takes less than two weeks for them to complete an application, on average,” QuickBase’s John Carione wrote in this blog.
With increased demand for more mobile and web-based apps, and the ease with which many of these apps can be started using low-code and even no-code platforms, I fully expect more enterprises to find ways to encourage citizen development within their organizations.
CMOs, others outside traditional IT, continue to drive more IT budget
This trend has been underway for some time now, and I fully expect it to not just continue but accelerate. As was discussed in Sarah White’s story, “As CMOs Start to Outspend CIOs, Collaboration Remains Key,” “marketing has a growing influence on technology spending, with CMOs slated to spend more than CIOs by the year 2017. In fact, companies reported that 25 percent of their annual budget was spent on digital marketing efforts in 2014; and out of those companies, 51 percent plan to increase digital marketing budgets in 2015.”
As that continues, that means marketing is going to have a larger say in what technology services and platforms get investment in the year ahead. CIOs in organizations where the chief marketing officer is getting more and more budget will need to partner to stay relevant.
Digital transformation accelerates
According to this Digital Transformation Survey, a surprising 70 percent of c-suite respondents believe they are ahead, or way ahead, of others in their digital transformation initiatives. Compare that to only 30 percent of those in the line-of-business and other employees who believe the same.
For whatever reason, those in the c-suite are suffering from some form of cognitive disconnect when it comes to their digital transformation efforts. In the year ahead I think more c-level executives will see the reality of their digital transformation efforts and get to work on mobile and IoT and putting data analytics to better work.
