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Barcelona, Spain, November 10, 2014 View All Press Releases

Gartner Says CIOs Need Bimodal IT to Succeed in Digital Business

Every Business Unit is a Technology Startup

Analysts Outline the Digital Humanist Manifesto to Help IT Leaders Keep Up with Technological Advances at the Gartner Symposium/ITxpo 2014, November 9-13, Barcelona, in Spain

CIOs need to create business operations that are both rock-solid and fluid if they want to succeed in digital business, according to Gartner, Inc. At the same time, the IT organization will need bimodal IT to help CIOs efficiently develop the speed and agility their organization needs to meet digital challenges. 

“CIOs can’t transform their old IT organization into a digital startup, but they can turn it into a bi-modal IT organization,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “Forty-five percent of CIOs state they currently have a fast mode of operation, and we predict that 75 percent of IT organizations will be bi-modal in some way by 2017.” 

Gartner analysts explored how CIOs can become digital leaders during the opening keynote today at Gartner Symposium/ITxpo 2014, which is taking place here until Thursday. 

There is a dramatic shift in the power of IT spending. While businesses spend a little more on technology, they will own much less of IT. Gartner forecasts that EMEA IT spending will reach $1.3 billion in 2015, a 2.6 percent increase from 2014. Thirty-eight percent of global IT spending is currently managed outside the IT department, with most spent on digital initiatives. By 2017, this figure will be over 50 percent. 

“Digital startups sit inside your organization, in your marketing department, in HR, in logistics and in sales,” said Mr. Sondergaard. “As IT leaders, you must design, resource and deploy for a world that’s digital first. In this new model, every business unit is a technology startup. Now is your opportunity to create that team. Partner with the digital startups inside your organization and prove that you can move fast too. Embrace the outside change.” 

While IT has been like rocks in a river – resisting change, the digital world is in continuous flow that creates business moments. There are moments when you can leverage some “digitalized” process to create new opportunities. 

“By institutionalizing business moments you build ‘always on’ opportunities, and you allow the unanticipated to happen through enabling technology users to evolve the use of the technology on their own, and with you,” said Tina Nunno, vice president and Gartner Fellow. 

With Innovation Comes Risk

Eighty-nine percent of CIOs say that the digital world is creating new types and levels of risk for their business. The complexity of digital business means that IT leaders will experience unintended consequences. 

“In digital business, you must change your relationship with risk. Digital risk is not something to mitigate. Instead, embrace risk. Taking risk is a conscious leadership decision,” said Ms. Nunno. “Treat your ability to manage specific risks as a competency and capability. Focus, so you can see what risks are worth taking. Accepting risk is okay; ignoring risk is tragic.” 

Digital Humanism

With all the talk about the digital business opportunities in big data analytics, sensor technology, and smart business process management, it’s easy to forget that business moments are human moments. There’s a conflict between what an IT leader can do, and what they should do. 

“Digital humanists believe that technology is there to put people at the center. To enable them to do things they want to do, or what they don’t know is possible. The virtue of technology comes out of being able to help people realize their ambitions,” said Frank Buytendijk, research vice president at Gartner. “The digital humanist thinks in terms of behaviors, emotions and interactions, not traditional processes.” 

The Digital Humanist Manifesto

The emergence of digital business requires that IT leaders shift the balance toward digital humanism, and therefore. Gartner has created the Digital Humanist Manifesto. The manifesto includes three principals: 

Put People at the Center - All design should be human-centered design. It starts with observing people. Don’t ask people for their requirements. Everybody, even colleagues in the rest of the business have trouble formulating them. Don’t ask people what they want, watch what they do. Observe. 

Embrace Unpredictability – While embracing the unexpected is not a new concept, it is particularly relevant for digital business. The moment a company’s digital technology is out there, in the hands of the users, it will start to affect their behavior. What you can do as a leader is, listen, observe, and get out of the way. The business results will be: new products, new brand ambassadors, new markets, and true competitive differentiation. 

Protect Personal Space – Let people make their own decisions. A digital humanist adopts what is called “privacy by design”. They take privacy into account throughout the whole life cycle of a particular product or service. 

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and senior IT executives. This event delivers independent and objective content with the authority and weight of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency. 

Follow news, photos and video coming from Gartner Symposium/ITxpo 2014 on Gartner News at www.gartnernews.com, on Twitter at www.twitter.com/Gartner_inc and using #GartnerSYM, Facebook at http://www.facebook.com/GartnerSymposium and Linked In at https://www.linkedin.com/groups?gid=1893287

To register for the final Symposium/ITxpo event this year in Gold Coast, Australia, November 17-20, visit www.gartner.com/au/symposium.

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About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,900 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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