The 2009 economic growth rate will be negative (2.1%). Cutting costs is the main priority. Most European countries will return to growth by 2010. Companies are preparing to the return of growth.
Example: TESCO uses its well-known brand to launch a bank.
IT can help with decision, communication (with transparency). New regulations will affect the business, many of them supra-national.
CEOs don't expect everything to go back to normal in 2010. IT is one of the domain where investments will be increasing.
Opening Address (Peter Sondergaard)
This is the most challenging year we will experience in our lifetime. It is the worst year for IT ever. Spending will not return to 2007 values before 2012. The impact has been felt across all vertical industries.
Return to growth will start with health, government. Emerging regions will resume growth rapidly.
This is the background for 2010 budgeting. But you have to plan for growth NOW.
3 important things to keep in mind:
- Shift from CAPEX to OPEX (with the cloud...).
- Need to assess equipment failure rates against aging hardware (1 million servers have had their life extended by 1 year).
- Demonstrate true line of sight to business objectives ("return on IT").
Areas of focus for 2010: cost, cloud (now the most important topic to undestand), ERP/SCM (increased focus in August). Three additional topics: BI, virtualization (in the entire infrastructure) and social media (it is not only for the digital natives, including the "silver surfers").
3 important areas for the future:
- Context aware computing: ability to enrich interaction, anticipating a user immediate need. This is the next evolution of mobile computing.
- Operational technology: all the devices and software to monitor physical assets.
- Pattern-based strategy: pro-actively seek, model and adapt to micro-signals affecting the business. It involves, social media, BI, CPM (corporate performance management).
Gatner Keynote
Barbara Gomolski & Brian Gammage: IT budgets are not going to increase. There are mutiple economic scenarios but IT organizations must have flexible budgeting plans to prepare for return to growth.
60% of CEOs think the IT is constraining their business. To build trust, there must be true measurements. Improve data quality, deliver quality indicators. Risk assessment must be a key part of your projects.
Andy Kyte: the reality of business applications is a bloated portfolio. IT is more interested in adding new applications. On average, the CAGR of applications is 4-7%.
Every application should be a "wanted" application. It must be remembered that the cost of a project is about 8% of the total lifetime cost of ownership of the application.
Organizations do not have the right perspective on their application portfolio. The operating expenses must be monitored in detail.
Suggestion: decommission applications and measure ROA (return on assets).
Start with the inventory of applications, assign clear responsibility (e.g. for the expenses), determine cost, utilization and risk data.
Carol Rozwell: social software fills the gap between the structured systems of the past and the chaos of the individual work environment. The tools are increasingly making their way in the workplace, whether it is chosen or not. Social software can be used to identify the social relationships, the key performers... in the enterprise.
The social interaction has always existed but it is now much faster and more immediate.
Social software has become part of the fabric of our lives. 65 million Facebook users are using the service on their mobiles (more than the other users) and this has an impact on the enterprise.
Recommendation: define a "social network" policy and make sure people understand the issues.
It is a fool who thinks he can ignores social media...
Nigel Rayner & Andreas Bitterer: "classical" metrics are in place but, in most cases, the data on which they rely is inadequate. There is a need to ensure consistent data across silos.
But this is not enough: classical measures are about outcomes. There is no indicators on what drives these outcomes, then there is no early signals or emerging patterns on what is happening. In addition, there is a tendency (cultural problem) to ignore bad signals.
There is a need to change the planning systems, including how the business manages its planning processes.
Prepare for early pattern detection and outcome prediction from these.
Start with information management, enable executive to focus on leading indicators, manage pattern detection and share publicly.
Ant Allan: the security department still thinks it needs to protect the organization from ALL threats but it does not work. Risk management is about accepting what you can't protect against. There is a balance between performance and risk.
Cloud computing introduces a new shift in how the IT is managed and controlled. You need to make an informed decision over the "new" risks versus the benefits.
Transparency is "in"! Shift from "need to know" to "responsibility to share".
Traditional security remains essential (with its tools and processes). But you need to know how to benefit from the new environment.
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