Riding Today’s Wave of Fast Change | CIOOnline Future of Cloud Summit by Dion Hinchcliffe.pdf
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The document discusses the rapid adoption of cloud technology, particularly during the pandemic, which highlighted its value in enabling organizations to adapt to constant disruption. It emphasizes the need for organizations to develop a 'digital metabolism' that allows for fast and sustainable change, shifting from traditional centralized models to decentralized and community-driven approaches. Additionally, it critiques conventional digital transformation methods and advocates for a more experimental and human-centric strategy to cope with the complexities of modern technology and business environments.
Riding Today’s Wave of Fast Change | CIOOnline Future of Cloud Summit by Dion Hinchcliffe.pdf
- 2. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe 2 Emerging Technology Rate of Change At All Time High Growth of Technology and Human Success: Hand in Hand 1 2 Technology Growing and Change Fastest in History Which Overall Has Been Very Good for Us
- 3. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe Today’s Tech Disruptions Are Happening the Fastest Ever: Remote work via the cloud suddenly become the single fastest technology adoption story in the history of the tech industry 3 Remote Work
- 4. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. #cloud @dhinchcliffe Cloud Was the Pandemic Tool of Choice for CIOs • Many have faced an unprecedented stress testing of their preparedness and overall capabilities • The portfolio of the CIO has been challenged to immediately meet the needs of an organization that has suddenly changed • This decade has proven to be one of disruptive, fast, and unexpected change • The central question is now this: • How can the CIO confidently and sustainably lead in era of constant disruption? • Key Takeaway: The cloud was the single most valuable asset in rapidly responding successfully to pandemic needs
- 6. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. And an Overall Enterprise Cloud Adoption Journey Becoming Clear More Strategic and Transformative Point Digitization Fundamental Transformation Note: Exact Adoption Order Will Vary Traditional Data Center SaaS and Private Cloud Public, Hybrid IaaS, PaaS, Edge Early Online Phase Cloud Adoption Phase Early Cloud Maturity Middle Cloud Maturity Point Cloud Adoption
- 7. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. More Strategic and Transformative Point Digitization Fundamental Transformation Note: Exact Adoption Order Will Vary Traditional Data Center SaaS and Private Cloud Public, Hybrid IaaS, PaaS, Edge Multicloud and Crosscloud Open APIs for Core Business Open APIs for Digital Platform Metaverses, Web3 Consumer Digital Products and Services Cloud Ecosystem Development Open Data Services Early Online Phase Cloud Adoption Phase Early Cloud Maturity Middle Cloud Maturity Point Cloud Adoption And an Overall Enterprise Cloud Adoption Journey Becoming Clear
- 10. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. 1 2 Insight: The Value of Digital is Driven by Power Laws That Pay Off Big Downstream But Most Organizations Only Change Linearly, or Logarithmically at Best The Payoff of Power Laws (Like Moore’s Law) Over Time Understanding Exponential Tech Change Helps Us Prepare Enabling Us to Anticipate the Nearly Unlimited Value Potential
- 12. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe Key Lesson: You Can’t Fight an Exponential Challenge with Linear Methods 12
- 13. © 2010-2019 Constellation Research, Inc. All rights reserved. Yet Some Organizations are Climbing the Digital Maturity Curve 13 But They Generally Don’t Operate The Traditional Way
- 14. #cloud @dhinchcliffe Constellation Research (cc) 2022 | Some Rights Reserved Evidence: State of Digital Transformation • Never ending. • Mostly in the cloud. • Hard. • Slow progress. • High failure rate. • Medium rewards. • Insufficient experimentation. • Held up by lack of talent. • Slow maturity (6-10 years). In short, not good enough. 2022 Data on 1,500 organizations —>
- 17. #cloud @dhinchcliffe Constellation Research (cc) 2022 | Some Rights Reserved What a Healthy Digital Transformation Portfolio Looks Like 30% Sure Things 50% Experiments 20% “Moonshots” Yet Most Orgs Are Doing This More Like 50-80% of the Time A Little of This Almost None of This business outcome >
- 18. #cloud @dhinchcliffe Constellation Research (cc) 2022 | Some Rights Reserved Decentralization of Everything is Arriving… The Structure of IT Will Likely Have to Change Radically • Decentralization is coming • Open movements to broadly decentralize technology, the Internet and business, making it more trusted and private • Everything in the IT stack, and beyond • Including personal identity, data, media, services, applications, transactions, and even finance and money • Crowdsourcing, cloud, blockchain and other decentralized tech underpinning • Fundamentally centered around local fit for purpose • Flying under the IT and business radar • Leading edge is Web3 Datacenters Public cloud IT Procurement Self Service SaaS, App Stores Cloud Edge Pro Code Low/No Code IT Support Crowd Support/AI Agents Developers Citizen Developers Central DT Distributed DT One-Size-Fits-All IT Local Adaptation of IT Internet/Web Web 2.0 and Web3 Databases Blockchain Closed Source Open Source • Massive economic (tens of billions of $ a day in transactions) and wild tech innovation activity • $2 trillion market right now
- 20. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe Key Insight: Moving from Push to Pull Based Models for Tech Change Implication: Digital Transformation Must Be Decentralized and Broadly Empowered 20
- 21. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. Because Traditional Models of Tech Adoption Has a High Failure Rate •77% of large IT/change initiatives fail…HBR (1970s -> Now) •Historically the adoption of emerging tech has left a wake of failed efforts - ERP, CRM, SOA, etc. •Digital change programs that use traditional adoption approaches usually do not work - Most strategic change programs are program-driven and in today’s faster world outdated before being fully implemented - Traditional change programs are static, cascading one time events - Traditional adoption processes are technology-centric while digital adoption requires a human centric lens Our New Understanding Post-Pandemic: We must find different ways of adopting tech and driving change that scales sustainably
- 22. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe Centralized Change Has Been Breaking Down for A While 22 Which advances like the Center of Excellence Model was Supposed to Fix
- 23. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. At the Largest Scale, Industry Has Learned that Network and Community Driven Approaches Are Highly Effective • There has been revolution in how loosely-coupled but well aligned groups of people can drive change • Open Source • Agile, and now Devops • Open Innovation/Collaboration • Digital Media (YouTube) • Crowdfunding • Web3 With a New Lens: Proof Points
- 24. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. incremental change IT IT as support unit, enabling centrally, “Doing it all” Limited external competition/enablement service providers outsourcing firms faster change IT as support unit, CoEs driving innovation More external competition service providers outsourcing firms app stores IT CoE CoE cloud fastest change network of IT enablement, broadly innovating decentrally Most external competition service providers outsourcing firms app stores cloud CoE = Center of Excellence | NoE = Network of Excellence | = Shadow IT NoE CoE LoB LoB CoE LoB dev partners dev partners APIs Back to the CoE. What’s Next for IT and Cloud? change agents cloud platforms
- 25. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. So, a Few Years Ago I Began to Notice a New Pattern on Projects… That Change Teams were Becoming Change Networks
- 26. © 2010-2022 Constellation Research, Inc. All rights reserved. #cloud @dhinchcliffe 26 Digital Workplace Transformation Results Decentralization Changing Everything From One Place (IT) Was Never Going to Be Enough So We’ve Found a Major Missing Piece to the Puzzle of Tech Adoption and Innovation
- 27. (cc) Creative Commons, 2010-2022. Constellation Research, Inc. Some rights reserved. The Key Insights of Decentralized Tech Adoption • It’s always a people problem. - Gerald Weinberg • Productivity of Digital Teams Varies from 1:10 • Existing Models that Focused on Changing 100% of Everything Centrally Were Doomed to Underperform What if we could plan a self-growing seed of change? What if the most decentralized asset we have (cloud) is the the best and most available/powerful resource?
- 30. © 2010-2019 Constellation Research, Inc. All rights reserved. Because Unlike Other Types of IT, Digital Change is Seen As Optional 30 Change is NOT automatic. You must provide higher value. Nearly 10x higher.
- 31. #cloud @dhinchcliffe Constellation Research (cc) 2022 | Some Rights Reserved Riding Fast Waves of Change The Methods of IT Will Likely Have to Change Radically • The cloud is the richest and most powerful resource IT has today to adapt, innovate, and grow • But traditional tech adoption will never take advantage of the cloud anywhere near rapidly enough or at sufficient scale • Emerging but proven methods for realizing fast change are key, with decentralization being the leading and most powerful approach • Organizations willing to cede some direct centralized control can create change up to 5-10x faster than they have today • These organizations are far more likely to thrive as the mature age continued to grow and become more complex • The future of IT is about effective complexity management