Experts Workshop - Project LEAD e-Leadership Skills for SMEs

Main ICT Trends and Implications for E-leadership Skills By Gabriella Cattaneo and Marianne Kolding IDC EMEA

Agenda  IDC Predictions  Overview of main ICT Technology Trends • Trend Description • Impacts on ICT and eLeadership skills demand • Implications for SMEs

 Final Considerations

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IDC’s Vision of the transformation power of the 3d Platform - Demand In 2014….  3rd Platform technologies and solutions will drive 29% of 2014 IT spending and 89% of all IT spending growth  Data volumes will continue to explode to 6 billion terabytes  IT spending on Big Data will grow by 30%, shifting toward analytics tools and apps, and be increasingly delivered by cloud  Social networking will become embedded in cloud platforms and most enterprise apps and processes (including innovation management)

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IDC’s Vision of the transformation power of the 3d Platform – The ICT Industry 

Escalation of investments by main vendors esp. around large global cloud datacenters

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Consolidation around leading players (n.1 wins all) reaching critical scale in 2014-2017

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Innovation Explosion of innovation, with hundreds of thousands to millions of new "killer" apps and solutions.

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Value migration: from 2nd to 3d Platform markets; up the "stack," from infrastructure to developer platforms and marketplaces, from applications to data, from broad applications to industry-specific solutions and communities

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A Consensus View of Main ICT Trends IDC 3d Platform

McKinsey Global Institute (MGI)

IBM Research GTO

ISTAG

Mobility

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Cloud Computing

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Big Data analytics

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Focus on Multimedia Analytics

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Social Media Technologies

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Internet of Things (IoT)

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IT Security and Safety

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Main Trends

Convergence of Main trends

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3d Platform

Automation of knowledge work

Focus on: Scalable Services Ecosystems; Software Defined Environments; Contextual Computing

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ICT as a social technology driven by social innovation

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All the world goes Mobile Explosion of adoption of mobile devices • Smartphone and tablet sales will continue to dwarf slumping PC sales by 2.5:1 Mobile native apps development and mobile interfaces needed for most (all?) applications • Mobile working +5-7% year to year; BYOD (Bring Your Own Device) in the workplace

• A potential key driver of IT adoption by EU SMEs Mobile devices primary design point for end-user access to the Web • By 2016, the number of people accessing the Internet through PCs will shrink by 15 million as the number of mobile users increases by 91 million

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Mobility Impact on e-Skills Demand ICT Skills

+ D E M A N D

• Mobile tech support skills + integration with traditional ones • Mobile Apps development and testing skills • IT Asset Management challenge + Governance issues • Enhanced security skills btw corporate and consumer environments

E-Leadership skills

• Analysis and understanding of customer/business demand for mobile interfaces • Design of new products and services based on mobility • Redesign of business and marketing strategies

_ D E M A N D

• Demand for traditional IT apps and services support

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Mobility implications for SMEs  Similar needs: customers (and employees) will also expect to access applications and interface with SMEs via mobile devices  Risk: competitive disadvantage without eleadership skills  Buy, hire or train? SMEs must either rely on external service providers or hire new resources or train existing staff

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The Cloud market grows fast (IDC Forecast 2014, WE) Market Value

Cloud Models

Public Cloud Bill. €10.2

Growth Year on Year 30%

Hosted Private Cloud IT for Private Cloud

53% 20%

Bill. €4.02

Bill. €4.3

Public Cloud

5.6%

% of General

Hosted Private Cloud

2.2%

IT for Private Cloud

2.4%

IT spending

Enterprises’ Cloud Journey towards Business Transformation  

Cloud is moving from a solution to a strategy to meet business needs The transition to cloud requires IT organizations to • adopt a new service centric mindset • use advanced cloud management, automation and orchestration technology • mask the underlying delivery infrastructure from users • migrate apps and company functions

2020 2020

2014

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IDC’s Cloud Computing Maturity Model: where EU enterprises are now Ad Hoc

Opportunistic  Identify tactical opportunities

 Experimental  Understanding the Cloud

 Lower infrastructure costs

 Limited SaaS deployments

 Pilot Private Cloud

Repeatable

Managed

 Consolidation

 Expand to hybrid cloud

 Strategic use of Cloud  Streamline IT delivery and support

 Deliver business transformation

Optimized

 Cloud is IT

 New business models emerge

SMEs (1,000 empl.) 11

Cloud Impact on e-Skills Demand ICT Skills

+ D E M A N D

_ D E M A N D

• Selection, configuration, combination, orchestration of cloud services, either public, private or hybrid • Cloud technology skills requirements considerable for private cloud: at infrastructure, application, and management and integration levels • Security management skills

• Demand for maintenance of infrastructures, applications • Operational skills of company IT systems

E-Leadership skills • Analysis and understanding of cloud potential to meet new customer/business needs • Design of new products and services based on cloud + mobile, big data, social... • Management of relationship with cloud providers/ contracts/ SLA • Strategic management of data protection/ privacy issues in cloud environment • Management of interaction with business line managers

• Demand for security skills may decrease for public cloud users 12

Cloud Computing implications for SMEs  SMEs not likely to use private cloud – similar demand for skills of selection, configuration, administration of public cloud services  Maturity Journey: SMEs evolving from Ad-hoc to Opportunistic and Repeatable stages – depends on sector and business model  Risk: competitive disadvantage without e-leadership skills  Buy, hire or train? SMEs must either rely on external service providers or hire new resources or train existing staff

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Big Data – Exploiting large data sets to drive business growth (warning: hype ahead!)  Evolution of Business Analytics and Business Intelligence, based on a set of new technologies (Hadoop) – requires IT architecture renovation  Big Data refocuses companies on the old topic of information lifecycle management (which data to keep, which to delete?)  Balancing of cost versus value of information. • Information governance / management processes • Is the Big Data store business critical?  Big Data analytics becoming mainstream in North America, but Europe lagging because of: • Smaller data sets + Lack of appetite for hiring analytics skills (expensive, scarce) • Bad economic environment – net new investments postponed © IDC Visit us at IDC.com and follow us on Twitter: @IDC

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Big Data Impact on e-Skills Demand ICT Skills

+ D E M A N D

• Skills on Big Data technologies (Hadoop, Cassandra, NoSQL databases) • Data scientists: statistical & analytical skills + IT • Data protection/ privacy protection skills

_ D E M A N D

E-Leadership skills • Combination of business skillsunderstanding with industry• analytics Analysis and specific skills and of customer/business understanding of Big Data demand for mobile interfaces •• Design of new newproducts productsand and Design of services data + services based based on on big mobility mobile, cloud, social... • Redesign of business and • Strategic marketingmanagement strategies of data protection/ privacy issues in Big Data environment • Management of interaction with business line managers

• ??

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Big Data implications for SMEs  Opportunity: cloud-based services that shield the organization from technical specifics and allow them to leverage new Big Data technologies from a standard query layer, for example SQL over Hadoop.  SMEs greater challenge to find resources for scarce data skills  Risk: competitive disadvantage without eleadership skills

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Social Media Technologies IDC distinguishes between:  Social Marketing: use of social tools and techniques to interact with customers (external process)  Enterprise Social Networks (ESN): use of social tools within the company to facilitate collaboration, knowledge sharing, support by employees

Adoption lagging in Europe due to:  Concerns about data privacy  Retention of data by online parties perceived as risk (loss of control)  Difficulty in measuring and reporting ROI of social Web  Difficulties to integrate social media into internal business processes 17

Social Technologies Impact on eSkills Demand ICT Skills

+ D E M A N D

• Delivered over public cloud, so skills of selection, configuration, administration of public clouds

• Data protection/ privacy protection skills

_ D E M A N D

E-Leadership skills

• Management of CRM-type tools used with social media (promotion, advertising, community management, integration with ecommerce etc) • Strategic management of data protection/ privacy issues in Social Media environment • Management of interaction with business line managers

• None visible at the moment

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Social Technologies implications for SMEs  Link with Cloud Maturity Journey: SMEs need public cloud to exploit social media. SMEs evolving from Ad-hoc to Opportunistic and Repeatable stages – depends on sector and business model.  Risk: competitive disadvantage without eleadership skills  Buy, hire or train? SMEs must either rely on external service providers or hire new resources or train existing staff © IDC Visit us at IDC.com and follow us on Twitter: @IDC

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The emerging Internet of Things (IoT) Ecosystem 

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The IoT ecosystem is based on digital communication between things (sensors, wearable devices, machines, buildings, cars, animals …) that leads to action and value creation within an ecosystem of customers, suppliers, and partners IDC predicts that IoT will connect 30 billion endpoints and generate $8.9 trillion in revenue by 2020. This promises to be a game changer for almost every major IT vendor Broad ranging components for an IoT solution include: connectivity and data transport, devices (sensors), analytics, software platform and management, consulting and support, security

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IoT Impact on e-Skills Demand ICT Skills

+ D E M A N D

• Significant analytics and Big Data skills (Hadoop, Cassandra, NoSQL databases) • Systems management skills for highly integrated, automated and scalable infrastructures • Vendor management skills for handling vast and diverse vendor ecosystems

_ D E M A N D

E-Leadership skills • Analysis and understanding of emerging IoT potential to meet new customer/business needs • Combination of business analytics skills with industryspecific skills and understanding of IoT • Strategic management of data protection/ privacy issues in IoT environment • Management of interaction with business line managers

• Operational skills of traditional company IT systems

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IoT Impact on e-skills: SMEs  SMEs unlikely to adopt IoT systems, rather they will participate in extended IoT ecosystems (e.g. Smartgrids)  Main ICT skills requested: Systems management, interaction across the value chain  Main e-leadership skills requested: assessment of business opportunities, ability to manage within ecosystem  Risk: competitive disadvantage without eleadership skills

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ICT trends increase IT Security risks Main drivers of demand:  Cloud: advanced identity, monitoring, policy, data protection and management tools;  Mobile Workforce: security and privacy issues;  Proliferation of downloadable applications: risk of malware increases;  Social Media: privacy, regulations, data security and increase of Trojan horse/worms/malware/phishing; Increasingly, a CxO level issue:  Security breaches can hit financially, brand, reputation, IP…  Cloud, IoT, CXIT etc. mean enterprise perimeter no longer clearly defined 23

IT Security Impact on e-Skills Demand ICT Skills • Standards and regulations

+ D E M A N D

D E M A N D

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certifications and skills Professional and product certifications, Industry certifications ISACA Certification and frameworks Skills to design and implement sophisticated identity and access management solutions Design and management of end-toend protection of emerging smart networks and cyberinfrastructures

E-Leadership skills • Strategic business leadership

responsibility rather than a technical focus (CISO role) • Develop and implement the company’s security strategy coherently with the business strategy, insuring that information assets are protected over time • Management of interaction with business line managers

• ??

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IT Security trends implications for SMEs  IT security threats highly relevant, but most SMEs are not able to deploy the same number of resources towards IT security protection  Technical management: either engage a managed security service provider or rely on staff with specific security certifications for SMEs, such as IASME, a UK-based standard for Information Assurance at Small to Medium Enterprises  E-Leadership skills / CISO role: Need to identify manager with responsibility for strategic management of IT security, not necessarily an IT manager © IDC Visit us at IDC.com and follow us on Twitter: @IDC

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A new trend arising from IT innovation: Customer Experience IT (CXIT)  What is it? The technology trends described above all affect the way in which customers interact and communicate with organizations (but is more than CRM)  Enterprises are starting to consider the convergence of these technologies as a unique investment area centered around customers’ needs and their expectations with the goal to increase revenues and drive new value creation Customer Experience IT (CXIT)

Mobility

Big Data

Cloud Computing

Social Media

Internet of Things

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Customer Experience IT  CXIT includes IT-related investments required to manage and optimise the customer's (or a citizen's) experience with an organisation such as: • Systems that interact directly with customer/citizen • Kiosks and interactive displays • Services that interact directly with consumers/citizens, such as customer care services  New and urgent area for investment for European organisations: • Expectations of how people interact with organisations through technology are changing, leading to personalized services and mobile, always on interfaces

• CXIT technologies aim to increase customer/citizen satisfaction and loyalty and (in the case of commercial organisations) to monetize existing customers better and to identify new revenue streams

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CXIT Impact on e-Skills Demand ICT Skills •

+ D E M A N D

D E M A N D

Application and website design specialists focused on UX. • Application and website developers and testers. • "Agile development"

specialists. • IT architects and security. • Big Data and analytics specialists.

E-Leadership skills • Business analytics and marketing

skills based on strong understanding of CXIT products and services • Management of customers loyalty and satisfaction in businesscritical contexts with a focus on revenue generation • Complementary CXIT and industry-specific business skills

• Less traditional maintenance and operational IT skills

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CXIT trend implications for SMEs  Similar need to respond to customers’ expectations and manage convergent IT technology trends  Complex set of skills – probably requires multidisciplinary teams and/or collaboration with specialised service intermediaries  First step, understand the business strategy requirements and potential business opportunities  Both threat and opportunity for innovative SMEs and new web entrepreneurs

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FINAL CONSIDERATIONS

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Summary of Impacts on Demand E-Leadership skills

+ D E M A N D

D E M A N D

• Analysis and understanding of potential demand for new apps and services based on innovative IT trends + ability to conceive/ design new products and services • Ability to use IT for customer-centered apps and services (CXIT) • • • •

Strategic management of data protection/privacy issues Strategic management of company information and data flows Strategic Management of interaction with other business line managers Strategic management of business and contractual relationships with IT suppliers - partners - subcontractors – clients over extended value chain/ digital ecosystems

• CIOs and CSIOs: less operational and technical skills

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Summary of Impacts on Demand ICT skills

+ D E M A N D

• Increased demand for specialised ICT skills with risks of gaps in specialised areas particularly data analytics and sophisticated IT security skills • Development and Implementation of apps/ services based on mobility/cloud/Big Data/ Social Media/ IoT/ Security • Skills of selection, configuration, combination, orchestration of cloud services, either public, private or hybrid • Systems management skills for highly integrated, automated and scalable infrastructures (IoT) • Significant business analytics and Big Data technologies skills, possibly combined with industry-specific skills • Apps, web, service developers focused on for customer-centered design and deployment (CXIT) • Management of data protection/privacy protection/ IT security

DE M AN D

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Reduced demand for middle-range, operational, practical IT skills, both from ICT industry and end-users

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Questions? Gabriella Cattaneo IDC European Government Consulting [email protected] Marianne Kolding IDC EMEA European Services [email protected]

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