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Phillip Carter VP IDC Europe
BBVA, an international bank in Spain have setup a digital banking division the head of whom reports directly to the CEO
One of the more interesting development areas for this group is a strategy to create Open APIs into the bank
For this bank digital transformation is the number 1 driver
They have also recognised that there is no longer a line between the business ant IT
This initiative is changing the industry and they are dealing with small startups that most people have never heard of
The question that this raises is how is IT going to respond to this
57% of UK organisations have gone through major re-0organisation in the last 12 months
The Dominos Pizza app generated £104M of revenue in 2013 and challenged all other major Pizza companies in the UK to match this innovation
This is a great example of the Digital Innovation
The CIO at Barclays recognises this, how to exploit this?
Legacy is dragging companies back and they need to address this through
- Application Modernisation
- Legacy Outsourcing Contracts
- Data Center Strategies
- Platform Migrations
- Private Cloud becoming the defacto standard
- Security is probably the biggest factor.
- This leads to shadow IT, i.e done under the hood
- IT think this is 6%, the reality is that this is 16%
- This can gain so much momentum that this can become the defacto standard
- 51% of UK organisations have created a new group based on this innovation
This Digital transformation is creating new board level roles
74% of UK organisations have increased the business involvement in IT strategy
5 Areas to Re-think
- Re-think your account engagement approach. Need to be able to bridge the gap between current platform models and future digital platform models.
- The third platform will create a skills gap with the most difficult skill to recruit being the Enterprise Architect
- Re-think your understanding of the opportunity
- Cloud and integrated systems are two key areas that can address this and cloud is growing at 30%. Integrated Systems are growing at 50%. Servers are decreasing at 5%
- Your Account segmentation, where on they on the maturity model
- Re-think your role in the ecosystem
- by 2016 25% of all software will be on subscription of SaaS
- Re-thinking you joint digital innovation strategy with clients
looking beyond the 3rd platform
IT-enabled products is the end game
Extreme automation to enable daily reporting
Move to digital configurations instead of paper configurations
But the biggest change was to develop IT-enabled products
6 things to think of beyond 3rd platform
- The Internet of Things, everything connected, nothing is off limits
- Cognitive Systems already happening in banks
- Pervasive Robotics, not just automation but going to places we cant
- 3D printing changes how things are made
- Natural interfaces lego example of 3d catalogues
- Security, going to be key in these new technologies
Data protection could move to being a traded commodity
Interesting new approach to vision strategies, instead of creating a 100 page strategy document smart CMOs are creating story boards and videos that explain the vision
Failure can be good, if you don't allow people to fail they will never innovate due to the fear of failure
- Only 19% of executives have the right technology
- Only 15% have the right capability
- Only 14% have the right skills
- But 75% of executives have a digital strategy