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Information technology (IT) advances are transforming the way we innovate in business
By: David H Deans
Aug. 12, 2017 02:00 PM
Systems of Innovation for Ongoing Digital Transformation
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before.
So, how are savvy chief information officers (CIOs) leading this transition?
Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews from around the globe. The resulting insights are worthy of revisiting today, as we consider the digital business transformation outlook in 2017.
Introduction to the Torchbearer CIO
They believe it's the most influential trend that's transforming the mainstream business arena. Those deemed to be the ‘Torchbearer’ CIOs are particularly attuned to the shift - in fact, a full 79 percent of these IT leaders expect industry convergence to have a significant impact.
hat said, only 57 percent of CIOs are reassessing their strategic direction. Many of the infrastructure decisions the IT department makes are no longer purely about technology -- they’re now considered core components of an organization’s essential business strategy.
Most Torchbearer CIOs have a plan of action. Seventy-one percent are considering the strategic implications of new technologies. They know they still have to provide basic IT services, as economically as possible. But they’re also looking for opportunities to create a competitive lead and improve the organization’s bottom line performance.
Moreover, the Torchbearer CIOs also place far more emphasis on building an agile organizational culture – one that supports rapid software developer experimentation and IT services prototyping – to help their team reach the market first with innovative new offerings.
In addition, the Torchbearer CIOs are eager to form partnerships that exploit the full potential of digital business technologies. They recognize that few enterprises can provide the full array of products, services and experiences that their stakeholders need and want.
Torchbearer CIO Lessons Learned
Hybrid IT in Action: Systems of Innovation
For too many years, the decline of the mainframe platform has been predicted by those who have not been aware of the ongoing enhancements to these highly reliable systems. Many of the uninformed parties thought that mainframe extinction would be accelerated with the growth of cloud computing services. In fact, the mainframe has become a key component of hybrid cloud scenarios.
According to a Forrester Research market study, the mainframe is leveraged by 92 of the top 100 banks worldwide, 23 of the top 25 U.S. retailers, all 10 of the world’s largest insurers, and 23 of the world’s 25 largest airlines. Furthermore, successful CIOs have already unleashed the data and business processes that are embedded within their mainframe-based applications.
Starting with integrations between systems of engagement (SoE) and systems of record (SoR), they’ve defined innovative products and services that can tap the mainframe resource via APIs. Besides, containers and microservices are coming to the mainframe as more organizations adopt DevOps methodologies.
Forrester believes that integrating established apps with smaller new services will advance the mainframe environment towards faster application delivery, even greater scalability, and better overall manageability. They describe this evolved hybrid IT state as the ‘Systems of Innovation’ that so many CIOs apparently crave. In a follow-on editorial, we'll describe this phenomenon in more detail.
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