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Deloitte Tech Trends Summary

Core Content

Deloitte's 2016 Tech Trends report, titled The Kinetic Enterprise, explores the evolving role of IT in modern business environments. The report emphasizes the need for organizations to adapt their IT strategies and operating models to keep pace with rapid technological advancements and changing customer expectations.

Main Points

• The Kinetic Enterprise: The report's central theme is the transformation of IT into an agile, flexible, and strategic enabler. This involves breaking down traditional silos, fostering collaboration with business units and external partners, and reimagining how IT operates to support innovation and growth.

• IT Unbounded: The concept of an "unbounded" IT organization is introduced, which suggests that IT should be more integrated with business operations, more responsive, and more capable of working across traditional boundaries. This includes:

  • Multiskill teams: Reorganizing IT into cross-functional, results-oriented teams that work holistically on delivering outcomes rather than just completing specific development steps.
  • Right-speed IT: Aligning IT operations with the speed required for different initiatives, balancing business value, risk, and technical feasibility.
  • Automation and DevOps: Leveraging DevOps and autonomic platforms to streamline processes, reduce manual workloads, and improve efficiency.
  • Collaboration with external partners: Encouraging partnerships with vendors, startups, academia, and even venture capitalists to drive innovation and access new talent.

• Digital Transformation: The report highlights how digital transformation is reshaping the banking industry and other sectors. It uses the case of Capital One Financial Corp. to illustrate how a company can transform its IT model to operate more like a technology company than a traditional bank.

• Agile Development and Innovation: Agile methodologies are emphasized as a way to speed up development cycles and improve responsiveness to customer needs. Capital One's transformation included:

  • Agile teams: Dedicated teams for product and service development, working closely with business leaders.
  • Cloud-first approach: Embracing cloud technologies to support innovation and scalability.
  • Open source and re-use: Standardizing on RESTful APIs, microservices, and containerization to enhance re-use and development efficiency.
  • Human-centered design: Prioritizing user experience and design as a core competency.

• Ford's IT Transformation: Ford Motor Co. restructured its IT organization into two distinct groups:

  • Core IT: Focused on critical functions like design, manufacturing, and service, with a strong emphasis on risk management.
  • Emerging Technologies: A new team dedicated to high-velocity development of innovative products like connected vehicles and autonomous cars.
  • Cultural shift: Implemented "Power Up" time to encourage creativity, innovation, and continuous improvement among IT staff.

• Connecticut's Shared IT Model: The state government adopted a shared services model to address budget constraints and technical debt. This allowed agencies to pool resources and deliver more efficient, automated services to citizens.

Key Information

• The report outlines the challenges of traditional IT models and the need for transformation in response to technological and business changes.
• It highlights the importance of aligning IT with business strategy, emphasizing agility, automation, and collaboration.
• Real-world examples like Capital One and Ford demonstrate how leading organizations are redefining their IT functions to stay competitive.
• Deloitte underscores that the transformation journey is ongoing and requires a cultural shift toward innovation and continuous improvement.

Conclusion

Deloitte's Tech Trends report serves as a guide for organizations to navigate the evolving digital landscape. It encourages CIOs to move beyond traditional IT roles and embrace a more strategic, agile, and collaborative approach. The report emphasizes that while some trends have proven successful over time, others are still in development, and the key to success lies in identifying and acting on truly transformative innovations.