Grußwort zum Jahreswechsel

2016 war ein äußerst ereignisreiches Jahr. In der Weltpolitik zeigten sich Umbrüche, die auch voraussichtlich unsere Märkte beeinflussen werden. Hierzu passt, dass die Unternehmen in Europa die allergrößten Herausforderungen im Rahmen der Digitalisierung primär nicht nur bei IT-bezogenen Themen, sondern besonders in der (Führungs-) Kultur und der Bereitschaft zum organisatorischen Wandel sehen. Nichtsdestotrotz war der ICT-Markt deutlich in Bewegung. Dies zeigte sich nicht zuletzt an zahlreichen milliardenschweren Übernahmen, mit denen sich viele Anbieter für die Herausforderungen in rasant sich wandelnden Märkten wappnen wollen. Sei es etwa, indem die Möglichkeiten des Internets der Dinge angestrebt werden, der Wandel zum Dienste-Provider vorangetrieben wird oder das Momentum einer gewaltigen Netzwerk-Community dem Geschäft zu Gute kommen soll.

Auch für Experton Group selbst war 2016 ein sehr bedeutendes Jahr. Im März wurde unser Unternehmen von der Information Services Group (ISG) übernommen. ISG ist eines der führenden Marktforschungs- und Beratungshäuser im Informationstechnologiebereich und weltweit aktiv. Die Dienstleistungsangebote unserer beiden Unternehmen sind komplementär und ergänzen sich sehr gut. Der Marktforschungsfokus von Experton Group passt zu den immer wichtiger werdenden Digital Services von ISG. Durch unsere Vendor Benchmarking Services erhält ISG zudem ein neues Standbein, welches weltweit genutzt werden kann. Ein erstes gemeinsames Portfolio haben wir bereits auf unserer Hauskonferenz „Expertonale“ zusammen mit ISG vorgestellt. Unser Ziel dabei ist, für Sie die Markttrends auch 2017 mit zeitgemäßen, innovativen Beratungs-, Analyse- und Research-Methoden zu begleiten.

Zum Ausgleich des in unserer Branche vorherrschenden Innovationstempos wünschen wir und das gesamte Team der Experton Group Ihnen ruhige und erholsame Festtage, einen guten Jahreswechsel und viel Glück, Erfolg und Gesundheit im neuen Jahr.

Frank Heuer Frank Heuer Frank Heuer Frank Heuer

Jürgen Brettel
Vorstandsvorsitzender

Nils Bachmann
Vorstand
Bernd Schäfer
Managing Director
ISG Germany
Barbara Florschütz
Partner ISG Germany

AOP/ISG State of the Industry Survey – Does Digital Require Outsourcing?

Ashish Chaturvedi, Jan Erik Aase Research Alerts

What is Happening?

Digital adoption is accelerating, clients are still heavily dependent upon outsourcing providers, and the use of new business models is impacting the success of digital-centric initiatives. These are three key initial findings from the current State of the Industry survey being conducted by the IAOP in partnership with ISG (and part of the keynote at the IAOP European Outsourcing Summit week in Amsterdam). The survey was distributed to over 12,000 European IAOP members and affiliates as well as over 20,000 global enterprises. An additional section of the survey will be released worldwide to over 100,000 enterprises, advisors, and service providers next week. These findings were focused on the European markets but ISG has observed that they apply globally.

One data point really stands out above the others: Almost two-thirds of enterprises are relying on external providers to implement their Digital projects. Moreover, enterprises tend to completely rely on external service provider whenever Digital projects involve augmented reality, IoT, or robotics. Thus, it appears that the more complex and somewhat uncharted initiatives have the highest probability of being outsourced.

Technology models are playing a more prominent role in the delivery of digitally-focused initiatives. The survey identified Agile as the preferred development model. Agile fulfills critical business requirements such as improved speed-to-market and continuous software delivery, which is core necessities of all digital projects. SOA was rated as the most popular development architecture. SOA is also among the most stable operating models.  It is known to enable operational efficiency, provide agility, and enable more accurate project scheduling.  And test automation tools are the most widely used automation tools in the development process followed by build orchestration and containerization.

The combination of these three circumstances forms the perfect storm – enterprise clients have the will and they are acquiring the skill in order to use the methodologies and tools that enable digital projects to succeed.

Why is it Happening?

Our ongoing work with enterprise and provider clients indicates that enterprise Digital business strategy and execution are heavily dependent upon service providers. The survey data confirms this, indicating that an average of 65% of enterprises rely on service providers to make Digital happen.

This is because effectively and efficiently “going Digital” is hard work and beyond the capabilities of practically any single entity. Properly planned and managed sourcing is critical to making Digital work. This is because all existing and upcoming enterprise business technologies, along with the frameworks and methodologies being used to work on these technologies, must be evaluated from the lens of the overall business impact.

The ability to leverage the technical and technological expertise in the market to improve innovation, flexibility and time to market have all increased in importance. And with the business side typically driving the funding, oversight, and schedule of most Digital projects, reliance on external providers is only going to increase.

This high reliance on external providers also increases the complexity for internal IT and Vendor management organizations, who must manage the project costs, scope and schedule. Proper management does enable the advantages of improved flexibility, increased access to skilled resources and custom solutions. But this is only possible if enterprise (internal) IT is tasking ownership of these projects and driving the digital agenda on behalf of the business.

Net Impact

Collaboration between business and IT leaders through the digitization of business models is making IT as an enterprise function more important and impactful than ever before. Restructuring of the business process landscape and development of technology roadmaps are some of the biggest impacts that digitization will create for Enterprise IT. Through Digital projects, we see enterprise IT forming strategic partnerships with service providers to support growth and internal process transformation rather than just cost reduction. Additionally, digital labor (and not cost arbitrage) has become the primary driver to achieve productivity, speed and quality improvements.

Service providers will require new skills to cater to the demand of the digital economy. They must improve their abilities to provide solutions to enterprise IT, that are business-centric and not just technology based. Additionally, incumbents will be challenged to move from T&M to outcome based models and put more skin in the game. This is what enterprise IT will be expected to do and therefore their “partners” will have to follow suit. It is becoming more apparent that no enterprise IT team can do everything by itself. Hence, the success of a these new digital initiatives will be a direct function of the strength of the ecosystem it works in including start-ups, technology partners, software vendors, system integrators, and the various internal teams.

Within 2 years, we expect a high level of productization of Digital services. This will primarily be driven by start-ups and niche providers. As a result, these players will experience high growth. ISG anticipates that many of them will be acquired by large legacy providers that are already in the process of re-structuring their teams and service offerings to meet the demand of the digital customer. Join me at the ISG Digital Business Summit (DBS2016) in Chicago IL to hear my presentation on these topics and the preliminary results of our survey.

This Research Alert was originally published by ISG Insights, our ongoing globally-focused premium subscription research service. To learn more about ISG Insights, go to http://insights.isg-one.com where you can register for a Research ID that will provide access to some of our complementary content.

Branchenforum zur Digitalen Transformation – das war die Expertonale 2016

Am 23. November fand im Hilton Frankfurt City Centre die diesjährige Experton-Konferenz Expertonale 2016 statt – in Kooperation mit dem VOICE/Bundesverband der IT-Anwender, Evernine und West Trax sowie ISG, welche die Experton Group im März übernommen hat. In acht Vorträgen und zwei Breakouts stellten Experton- und ISG-Advisors sowie Sprecher unserer Kooperationspartner die aktuellen Trends in […]

TBM Conference 2016 – IT Value Standardization and Articulation

Alex Bakker Research Alerts What is Happening? This week, ISG Insights attended the Technology Business Management (TBM) Council’s 4th annual event in San Diego, CA. TBM is a framework and taxonomy for managing IT costs, and eventually, helping IT shift from a focus on costs to measuring the economic benefit provided to the business. The […]

Telecom Consolidation and Competition – CenturyLink Buys Level 3

Alex Bakker, Charlie Burns, John Lytle Research Alerts What is Happening? Early this week, CenturyLink (CTL) and Level 3 (LVLT) announced a definitive merger agreement, under which CenturyLink will acquire Level 3 Communications in a cash and stock transaction totaling approximately US$34 Billion. This includes a premium of approximately 45% over the outstanding Level 3 […]

Operational Agility Drives Digital Business Efforts – But What About IT?

Bruce Guptill Research Alerts

What is Happening?

The latest research from ISG Insights shows that the top-rated business factor driving development and adoption of Digital Business, and the move toward enterprise digital transformation overall, is a perceived need for greater enterprise business operational flexibility and agility. Figure 1 summarizes and presents the relevant survey data.

Figure 1: Operational Agility is Job One

Operational Agility

Source: ISG Insights Oct. 2016 global web survey; n = 141 C-level Business and IT leaders

The survey provide data, insights, and context regarding CXO Digital Business thinking, plans, and actions leading up to ISG Insights’ Digital Business Summit events. As can be seen in Figure 1, survey participants were asked to “identify the top three (3) business drivers or pressures causing your organization to adopt Digital Business strategies or tactics.” While all factors received some votes, the need for operational agility and flexibility is the clear #1-ranked factor – and will shape how, when, and why enterprises develop and refine their digital business investments and progress.

Why is it Happening?

Agility, especially the ability to operate the business in a flexible, adaptive manner, is the logical place for enterprise leaders to focus digital transformation efforts, because agility enables practically every other factor listed. If we want to be able to adapt and respond to shifting competition, if we need to build or adapt to different business models, if we want or need to grow market and wallet share, all in unpredictable markets and potentially unforeseen environments,then we must have the ability to operate the business in a adaptable fashion. Without operational agility, there is little chance of surviving, let alone competing, in such conditions.

The uncertainty of Digital Business stands out when we look into more of the data shown in Figure 1. For example, CXOs see the nature of competition itself changing. In addition to 41% worried about more competition from within their industries, nearly one-third of CXOs indicate concern about unknown or previously unseen/unexpected competition from new quarters. Operational models and characteristics need inherent agility and flexibility to respond to and adapt to such forces, as well as to enable new business.

That being said, the relatively low rankings of a need for new business models, and of segment disintermediation, and of changing expectations in the workplace, suggest that we are only beginning to see the fundamental business changes and disruptions that so many expect from the move toward Digital Business. This could be because these changes have yet to emerge en masse; in other words, digital disruption may be expected, or even perceived, but is not completely “real” to the majority of businesses at this time. It’s early days still.

Net Impact

Obviously there is massive digital transformation activity underway worldwide, and it is happening because there are tangible business benefits available. The move toward Digital Business, and the drive toward more complete enterprise digital transformation, will continue. Those enterprises lacking operational flexibility and agility will be unable to compete, whether against traditional competitors or against new competitors from unexpected sources.

But even those firms that develop the most innovative and agile operational models risk accelerating disintermediation between business groups and the IT organization as they rush toward the digital future. We began referring to this as “IT-Business dissociation” several years ago in the early days of SaaS, and have been tracking changes and impacts since then (803MKT, Free-Range Knowledge Work Spotlights IT Dissociation and Future, 30Oct2010; and 1163STR, The Seeds of IT Change Were Planted Well Before Cloud Began Reigning, 31Dec2012). Our net position then, and now, is that the wholesale adoption of readily-affordable and useful business IT by business users and groups is shifting enterprise IT assets, responsibilities, and costs to end users, or to end users’ departments. This is creating or exacerbating the disconnects between IT organizations and the business groups and users who require more effective and more integrative IT capabilities than ever.

The digital future is happening; the new operational models are being adopted, adapted, and refined. But how well will they work without a closely-associated, aligned, and synchronized IT + business relationship? Participants in our three 2016 Digital Business Summit events – Berlin, Germany (October 27), Greenwich, CT (November 17) and Chicago, IL (December 1) – will learn the answers first-hand from C-level IT and business leaders who are making the journey to Digital right now, and who are willing to share what they see as what’s next. Registration is now open! Registration, along with links to the event agendas, speakers, locations, and dates can be found here:http://www.digitalbusiness2016.com/.

VM Ware – on the road to virtualizing anything from cloud to the unified workspace

I just returned from the annual VMworld event in Barcelona. The two-day event included the typical mix of presentations between growth and portfolio enhancements but also interesting Q&A rounds with top management and partners. My personal highlight was a round table discussion over lunch with clients including DB Systel. The key message which came through […]

Red is on attack – Vodafone competitors watch out despite a gap in the workspace portfolio

I just came back from the annual two day Vodafone Analyst event in Egham, United Kingdom.  Erik Brenneis, now four months into his new role as CEO of Global Enterprise, and interim CEO Group Enterprise, gave account of the corporate strategy going forward. Presentations by the Group Enterprise leadership team on sales and marketing, portfolio strategy, regional sales and […]

ISG SIC 2016 – What Are the Next IT Services Models?

Bruce Guptill Research Alerts Library What is Happening? Session after session at ISG Sourcing Industry Conference (SIC) in Dallas confirmed that the re-thinking/re-imagining of traditional outsourcing business is underway as providers step up to new market realities. From the opening keynotes through the breakout sessions to hallway conversations, there was acknowledgement that the playing field […]

NEXT Conference 2016 – It’s me, your digital ego

Auch in diesem Jahr fand die seit 2006 stattfindende NEXT Conference der Digitalagenturen SinnerSchrader und Faktor 3 im Umfeld der Reeperbahn in Hamburg statt. Rund 1.300 Teilnehmer nahmen in diesem Jahr an der Konferenz teil und folgten den Vorträgen der rund 50 internationalen Sprecher, die Business- und IT-Trends der kommenden Jahre vorstellten. Die Konferenz fand […]