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Tag Archives: State of IT Transformation

It’s All in the Context: Practical Advice for Using IT Benchmarking

Ton van TubergenBy Ton van Tubergen

IT BenchmarkingIn my role as an Operations Transformation Architect, I have been involved in many large and small IT Transformations, addressing people, process, technology, governance and organizational aspects and their dependencies.

As a responsible IT leader, managing uncertainty and risks will be an important part of steering the organization through a transformation. So, they are often asked:

  1. How are we doing compared to others? (Slow/fast)
  2. Are we doing the right things? (Did we bet on the right horse?)
  3. Which step first? (We know we have a lot to do, but where do we start?)
  4. What are lessons learnt from others? (Give us best practices so we do not make the same mistakes.)

One source to get answers and grow confidence is benchmark reports, allowing you to do a quick comparison with your own organisation. Reading benchmark reports is not always an easy job, and often disappointing.

Getting the most out of benchmarking

There are many advantages to benchmarking:

  1. It can trigger and energize the improvement (transformation) of the organization and its services
  2. It provides new insights
  3. It provides early warnings about where an organisation is performing and where it is lacking behind
  4. It can motivate all stakeholders before and after a transformation (when good new scores are available)

But before you start reading benchmark reports, ask yourself the following questions:

  1. What does our organisation want to achieve? Do we have the same (business) objectives and priorities as our peers in the benchmark?  Do we want to be the same as our peers/competitors?
  2. Are we level hunting, or are we focusing on our own business success?
  3. Are the measurements comparable and are the scores relevant for what we want to achieve? What is the quality of the data?
  4. Is there an explanation for different scores?
  5. Are best practices described in such a way that we can re-use them?

The State of IT Transformation Report

Having this framework in mind, let us now have a look into “The State of IT Transformation” recently published by VMware and EMC, a benchmark and analysis about the State of IT Transformation, and talk about how your organization can effectively use this data to further your owns goals.

Sample 1: Cloud Infrastructure – Hybrid Cloud Architecture

Hybrid Cloud ArchitectureThe report states that “most companies are not where they want to be in having a well-engineered hybrid cloud architecture,” and the infographic shows us 2 groups: Overall (N=660, so pretty relevant for you!) and Top 20% performers.

So, you are probably not alone, but how can you accelerate, and relatedly, what slowed you down? There could be a variety of answers (lack of capacity, expertise, sponsorship, acceptance, complexity too high), but even more interesting, what re-usable accelerators did the top performers use?

Sample 2 – Virtualization (%)

VirtualizationThis info graphic shows level of Virtualization in different categories. Progress is compared to 2 years ago (see info graphic in full report).

What you can learn here is that many peers follow a shared pattern: first compute (most virtualized), then storage and application, network and desktop (less virtualized). That’s interesting information, but to identify if they apply to you ask yourself:

  • What is our business-case for virtualization?
  • Based on that business-case, is it wise to virtualize everything (including legacy) to 100%?

Sample 3 – Operating Model

StrategyHere we find big gaps between what peers want and what they currently have.

In our experience, many organizations are struggling with this.  It can sometimes be difficult to answer the questions, “What should my end-state look like and how do I get there?”

What is important to remember is that you should not think about transformation as going from one static state to another, but develop your organization in an agile never ending change, responding to changes in business needs and technology opportunities during the journey.

Practical advice for leveraging benchmarks

The first step is to trace and understand the best practices in the benchmark, and why they worked well in these organizations. But that does not mean that all best practices are transportable. That’s like a heart-surgeon saying, “Every excellent beating heart can be transplanted to any patient”.

Even if best practices are available and credible (no coincidence), they still need an expert judgment to decide what and how to re-use them effectively.

What’s in it for you? A lot, keeping in mind the advantages I discussed before, but you need to invest in understanding the background of the research and how it could apply to you.  It can be extremely valuable to talk to those who participated or the experts in a similar workshop.

It’s important to get outside help with this process.  Someone impartial with expertise in this area can advise you on what is working, what could be done better, what is coming up next and how they’ve seen other organisations overcome similar challenges to yours.  To leverage our experience, contact your local VMware representative to engage with VMware Advisory and Operations Transformation services (OTS).

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Ton van Tubergen is a VMware Operations Transformation Architect and is based in the Netherlands. 

IT Service Strategy: Catalogs and Portals

Insight from the EMC and VMware 2016 State of IT Transformation Report

self-service portalGuest Blogger:
Denise Partlow, Director, Product Marketing Cloud Professional Services, EMC Corporation

IT organizations are experiencing a cultural revolution. CIOs want to run IT like a customer-focused business. They want to empower users with self-service and enable them to make value-based consumption decisions. This means packaging IT services for easy consumption by the business, providing financial transparency through unit-based pricing and billing, and developing processes, roles, and skills to successfully manage the supply and demand side of the portfolio.

As I mentioned in my last blog, EMC and VMware have been doing workshops on IT transformation with our customers for several years now. We recently analyzed the data collected during these workshops. The top gap, identified by all organizations, is their ability to provide and efficiently manage user requests through a service catalog and self-service portal. 80% plan to have a self-service portal and service catalog in place by the 2016-2017 timeframe.

Read more >

EMC, VMware Release ‘State of IT Transformation’ Report

The ‘State of IT Transformation’ report takes a look at more than 660 EMC and VMware enterprise customers across 18 industries, and identifies gaps, progress and goals in their current IT Transformation initiatives.

By focusing on data provided by CIOs and their direct reports who participated in a transformation workshop led by EMC or VMware, this analysis provides deep insight into the biggest goals and challenges for organizations who are actually in the midst of an IT transformation.

The full State of IT Transformation Report (PDF) can be downloaded here.

Where do Organizations Want to Improve Most in 2016?

State of IT TransformationCloud Infrastructure

While more than 90% of organizations are only in the early stages of evaluating a well-engineered hybrid cloud architecture, and 91% of organizations have no organized, consistent means of evaluating workloads for hybrid cloud, 70% want to standardize on a hybrid cloud architecture across the organization within the next two years.

Operating Model

Running IT like a customer-focused business is a high priority for IT organizations, but 88% of companies have not begun, or are only in the preliminary stages of developing skills in business-facing service definition, and only 24% have a well developed service catalog in place.

Organizations recognize that collaboration is key to meeting customer expectations, with 95% of organizations expressing that having no silos and working together to deliver business-focused services at the lowest cost this is critical.  However, less than 4% of organizations reported that they currently operate like this.

Agility is also critical to success.  For over half of the participants it currently takes between a week and a month to provision infrastructure resources.  The goal this year for 77% of participants is to be able to do this in less than a day, or dynamically when needed.

Applications

Accelerating application development is a high priority for CIOs this year.  68% of the organizations surveyd take 6-12 months to complete a new development cycle.  This is likely due to the fact that 82% of the companies currently don’t have a scalable, infrastructure-independent application delivery framework on which to rapidly and consistently build mobile-friendly, cloud-native apps.

How does your organization stack up?

Are you curious about how the results changed by industry, or by geography?  Read the full State of IT Transformation Report to see how your organization compares to your peers.

If you need assistance identifying the gaps in your own organization, and developing a comprehensive strategy and roadmap for moving forward, contact your VMware Advisory Services strategist or your local VMware representative today.