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1、Pursuing transformation like digital natives Lessons for enterprises from tech leaders who have lived itIBM Institute for Business Value|Research BriefIn collaboration with2IBM Institute for Business ValuePursuing transformation like digital nativesIntroductionUnderstanding the philosophies and prac
2、tices of these quick-moving,born-in-the-cloud companies can help leaders of legacy businesses transition from approaches that worked well in the past to modern tactics that can accelerate their technology adoption and support successful outcomes.To give enterprise executives first-hand insight into
3、digital-native organi-zations(DNOs),the IBM Institute for Business Value(IBV)partnered with Amazon Web Services(AWS)and Oxford Economics on exclusive qualitative research.Through a series of one-on-one interviews with hand-selected tech leaders who have rich experience at traditional and cloud-creat
4、ed enterprises,an unmistakable set of lessons has emerged,spanning culture,strategy,and execution.The overarching maxim:digitally native firms approach technology not as an enabler of business strategy,but as a central part of that strategy itself,integral to business direction and opportunity.In th
5、e ongoingand often challengingpursuit of digital transformation,traditional enterprises can re-energize their efforts with a fresh perspective.And where better to look for inspiration than their nimble digital-native colleagues?IntroductionChanging the leadership mindsetScalable tech infrastructureL
6、oosening operational processAction guideAbout AWS and IBVQuestions explored by enterprise leaders:What DNO practices are worth emulating?Which long-standing enterprise advantages should be preserved?What legacy processes or technologies could be hindering innovation?Perspective3IBM Institute for Bus
7、iness ValuePursuing transformation like digital natives“Business strategy and IT strategy must fuel each other,”said Gregor Hohpe,Enterprise Strategist at AWS,and formerly Chief Architect at international finance firm Allianz,Smart Nation Fellow with the Government of Singapore,and Technical Directo
8、r in the Office of the CTO at Google.“Tech allows you to have business strategies that otherwise would not be feasible.”Adopting the approaches of DNOs can unlock competitive advantage for conventional corpora-tions.“At legacy enterprises,their pace,momentum,and trajectory are very different than di
9、gital natives,”noted Ravi Simhambhatla,Chief Digital Officer at Avis Budget Group,as well as former executive at United Airlines,Aer Lingus,and Virgin America.“Enterprises are crawling,while DNOs are sprinting.”Mathias Schlecht,CEO of energy data start-up Biota,and who previously led tech efforts at
10、 energy giants Baker Hughes and GE,observed,“If you dont work at pace,with open systems,you will be left behind.”Established firms that want to make this kind of leapto implement digital strategy at their coresmust make fundamental shifts in three key areas:leadership mindset,tech infra-structure,an
11、d operational processes.In the sections that follow,this report explores each area by contrasting DNOs and legacy companies,as seen through the eyes of tech leaders whove been on both sides.In the final section,we offer an action plan,drawn from these insights,for any organization to follow.“Enterpr
12、ises are crawling,while DNOs are sprinting.”Ravi Simhambhatla Chief Digital Officer,Avis Budget GroupIntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV4IBM Institute for Business ValuePursuing transformation like digital
13、nativesChanging the leadership mindset:From stability to disruptionIf the goal is to enhance“the linkage between IT strategy and business strategy,”as AWS Hohpe put it,generating buy-in across the organizationstarting at the topis the first step.The way leaders think is where digitally native organi
14、zations begin to distinguish themselves,according to our research.“The difference is mindset,”said Hohpe.“The openness to try something.”Established,successful organizations may be locked into thinking they have a system that works,and that can become their limitation.“In the legacy world,leadership
15、 is rewarded for maintaining stability and performance,”said Simhambhatla.“For digital natives,they get rewarded for disrupting and innovating.”The 2021 IBV global survey of 2,500 IT leaders backs up Simhambhatlas observations.A greater percentage of CIOs from DNOs less than 12 years old indicated t
16、heir success is measured on strategic contributions to the enterprise(for example,successfully launching technology-enabled platforms and subjective assessments of impact on business outcomes).In contrast,a larger percentage of leaders in more mature organizations reported their success is measured
17、by tactical budget and financial performance contributions such as budget performance and internal billing for shared services.1 Further insights from the“2022 AWS C-Suite Report:Cloud-Enabled Growth”show that the executive frame of mind is starting to shift,favoring innovation ahead of stability.Wh
18、en asked to rank their top business priorities,52%of executives selected growth-focused priorities,including increasing revenue,expanding market share,and/or reinventing the business.Even so,38%chose to prioritize stability-focused objectives,such as defending market share and reducing costs.2 Stabi
19、lity-focusedExecutives top business prioritiesInsight38%52%Growth-focusedIntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBVGrowing revenueGrowing market shareReinventing business modelsImproving marginsReducing costsDefen
20、ding market shareSource:“2022 AWS C-Suite Report:Cloud-Enabled Growth”5IBM Institute for Business ValuePursuing transformation like digital nativesRefreshing the mentality at legacy firms requires rethinking incentives.Simhambhatla noted:“We are seeing more C-suites and boards of directors changing
21、how they reward leaders and their teams so that they lean toward adoption of new technologies.Its about rewarding innovators for breaking glass.”For DNOs,this way of thinking is typically ingrained from the beginning.“For digital natives,its all about disrupting themselves,”Simhambhatla said.“Its pa
22、rt of their very existence.”“I havent encountered digital natives who say Im going to innovate,”Simhambhatla continued.“You only hear those statements from legacy organizations because theyre trying to get out of that rut.For legacies wanting to innovate at the pace of DNOs,theres a lot of foundatio
23、nal work that needs to be done to get them to the point where they can actually start doing it.”“Its about rewarding innovators for breaking glass.”Ravi Simhambhatla Chief Digital Officer,Avis Budget GroupEnterprises need to recognize that the DNO mindset impacts varied practices,from decision-makin
24、g to cost assessments to collaboration.This includes a heightened willingness for team members to share or cede control in service of flexibility and speed.“In large organizations,teams tend to have a challenge when they need to let go of some authority,some decision-making capacity,”said Schlecht.“
25、There is a hesitation to bring in third-party solutions,especially in areas close to their own core expertise or core products.The movement is typically to try to do it in-house first.”Hesitation to venture outside the business for technology solutions and tools is often the default within tradition
26、al enterprises,Schlecht observed.Theres a resistance to accepting that someone else might do something better and a reluctance to tackle the time and cost of integration versus evolving internal systems.In contrast,the DNO mentality is more open to leveraging expertise from wherever needed.For them,
27、speed takes precedence over almost everything else.The confidence to leverage expertise and capabilities from third parties requires building and maintaining an ecosystem of partners that can not only bring necessary capabilities,but that can be relied upon to deliver when and where needed.Its not s
28、urprising that CIOs from DNOs have cited enhancing trust and collaboration as the most important objective in furthering relationships with ecosystem partners.3“The key difference with DNOs I observed is the speed of decision-making and acting on information as it becomes available,”Schlecht said.“D
29、uring my time at Baker Hughes,I dont think I saw somebody make a decision on day one,and it was implemented the next,and everybody was behind it.”“The key difference with DNOs I observed is the speed of decision-making and acting on information as it becomes available.”Mathias Schlecht CEO,BiotaIntr
30、oductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV6IBM Institute for Business ValuePursuing transformation like digital nativesIn his experience,said Schlecht,creating speed is about company culture and freeing people to brea
31、k away from their day jobs to iterate quickly on a new solution,which is more difficult to do in larger organizations where significant focus is on keeping systems running.As noted by Hohpe,in legacy IT departments,speed is often downplayed.“Traditional organizations always look at the faster decisi
32、on as an inferior decision.Its deeply baked in their minds that fast cant be good.But if making a decision takes you two months,the opportunity cost of not having moved in that time is enormous.Digitally native organizations know they might be wrong,but that its worse to spend months evaluating.”The
33、re are tactics for helping leaders to think more like DNOs.When he was at Allianz,Hohpe said,there was a“cram school”for top-level executives to help them better understand technology.“That was a CEO-level mandate.If technology is the future of our business,then everybody needs to understand it.That
34、 was an initial trigger,and it sent a very important message into the organization.”Melanie Kolp,Nationwide Insurance CTO who has helped lead the companys technology transition,noted a similar initiative where every employee is required to have at least eight hours of digital training each year.Hohp
35、e emphasized that tech leaders must build trust by increasing transparency when working with the business.“IT has traditionally enjoyed the fact that many people dont understand what it does,”said Hohpe.Instead,he argued,“its the mandate of IT to invite the business audience into the decision-making
36、 process.You need to do that by de-jargoning,laying out the options,and inviting them into the thinking process.”This happens more often at DNOs,where IT and business link up naturallybecause they have from the beginning.DNOs look to and rely on tech leaders for creative direction and iterative busi
37、ness growth.“It is completely integral,”explained Schlecht.“Innovation goes across the company at DNOs.”Nationwides Kolp illustrated that a legacy enterprise can adopt this philosophy as well:“Our strategy for the organi-zation was developed among our business leaders and the technology leaders.So,a
38、t the highest level,there isnt a separation between business strategy and a technology strategy.Our enterprise strategy connects technology and business for the future.”The 2021 IBV global survey of tech executives indicated that CIOs and CTOs seem to be embracing their importance in their companies
39、 technology modernization efforts,citing“trans-formation business leader”as the top descriptor of their organizational role.4 One of the well-known issues for tech leaders at established enterprises is dated infrastructure,but digital-based firms are not immune to their own legacy challenges.Insight
40、s from the same IBV survey identified legacy system and architecture constraints as barriers to organizational digital transformation efforts in DNOs as well.5 However,DNOs are usually quicker to address them.“Did we have legacy systems in Silicon Valley?Absolutely,”admitted Hohpe.“Its not like we w
41、ere void of the problem.We were just more conscious about solving it,as opposed to serving corporate ceremony.If its a tough issue,too bad.We just bit the bullet.”“I get these argumentsthese DNO companies have nothing to loseand I dont buy it,”Hohpe said.“They actually have a lot more to lose,becaus
42、e any project that fails,it affects the whole company.”Bigger legacy companies need to recognize that they can afford to take bigger innovation risksfrom their tech infrastructure to their operational processesbecause they have more resources and established reputations to fall back on if a project
43、is unsuccessful.“If making a decision takes you two months,the opportunity cost of not having moved in that time is enormous.”Gregor Hohpe Enterprise Strategist,AWS“At the highest level,there isnt a separation between business strategy and a technology strategy.Our enterprise strategy connects techn
44、ology and business for the future.”Melanie Kolp CTO,Nationwide Insurance IntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV7IBM Institute for Business ValuePursuing transformation like digital nativesThey start lean,and t
45、hey stay lean.In doing so,they can continually access the latest leading modern tools while optimizing their flexibility.“If you go to a legacy enterprise,the vast majority of toolsets,whether theyre apps or databases,theyre normally built in-house,”Simhambhatla said.“They work to keep that world ti
46、ghtly coupled to their company.”And theres often pressure to maintain that backwards compatibility as they look to modernize.This slows down progress,noted Nationwides Kolp.“Because of how complex a large business like ours can be,and also considering how long weve existed,resulting in all of this b
47、ehind-the-scenes tenure,as Ill call it,it makes it challenging to move as swiftly as we would love to.”DNOs dont have that burden,Simhambhatla explained:“If you go to the digital natives,almost all the tools they use are plug and play,almost like Lego pieces,from the cloud and cloud market-places,wh
48、ich is why theyre able to go much,much faster.”Not surprisingly,when asked what technologies they expect to invest in over the next three years,more CIOs from DNOs indicated they intend to increase investments in open source solutions than technology leaders in mature organizations.6 Some DNO choice
49、s are driven,at least in part,by the resource constraints of smaller and start-up operations,yet they yield great advantages.“You can stitch solutions together to drive great customer experiences,great revenue management,”said Simhambhatla.“Cloud providers have phenomenal AI capabilities that Ill ne
50、ver be able to replicate in-house.Theres no need for me to do that if I just go to the cloud.”Scalable tech infrastructure:Why renting is better than owningWhen planning for innovation,DNOs have the freedom to start from scratch with their infrastructure.Their typical approach is to keep it as small
51、 as possible,build as little as possible,and borrow as much as they can from outside providers.“If you go to the digital natives,almost all the tools they use are plug and play,almost like Lego pieces,from the cloud and cloud marketplaces,which is why theyre able to go much,much faster.”Ravi Simhamb
52、hatla Chief Digital Officer,Avis Budget GroupIntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV8IBM Institute for Business ValuePursuing transformation like digital nativesAs DNOs evolve,their tech stack evolves with them
53、and such ongoing evolution becomes a standard,expected operating reality.“Moving out of the data center and into a cloud world saves costs and optimizes the business,but thats just tech strategy,”observed Simhambhatla.“DNO people look at how to continuously modernize their stack.”While legacy compan
54、ies often focus on tech architecture and IT as two separate roadmaps,DNOs approach them as one.The advantages enabled by DNOs streamlined tech systems are tangible.“At Baker Hughes,a range of legacynone cloud-basedsoftware systems integral to providing customer services required us to maintain a ran
55、ge of infra-structure,including server farms and high-performance computing clusters,in-house,”said Schlecht.“But at Biota,with scalable web services,we dont have to worry about infrastructure.Infrastructure is someone elses challenge.Theres a whole level of maintenance that we dont have to deal wit
56、h.”“There is a competitive advantage to being able to tell your customers that whatever system they use,you can easily deploy,easily integrate.”Mathias Schlecht CEO,Biota“There is not a single native piece of software in the company installed on any individual machine,”Schlecht continued,describing
57、the approach at Biota.“Everything is cloud-based.They then containerized everything and made it cloud agnostic.Now everything can be easily deployed in different environments.”That doesnt just simplify operations for DNOs;it opens the door to enhanced customer engagement.“Being cloud agnostic means
58、if a customer wants to have in-country computing,we can facilitate that without building anything out,”said Schlecht.“Everything is built around ease of getting data in and out,moving data between different systems.There is a competitive advantage to being able to tell your customers that whatever s
59、ystem they use,you can easily deploy,easily integrate.”“You can even use the cloud to provide trust that a customers data is safe,”continued Schlecht.“We can provide a production module where they plug in their data,and none of that data is leaving their system.”Not everything about the DNO tech inf
60、rastructure is simpler.But that too has its advantages.“The traditional question has always been,do I buy versus build?”said Hohpe.7“With the cloud and software as a service,that takes on a whole different character.Its really a buy and build model.The transformation exercise isnt about resetting th
61、e existing dials;its about understanding that youre maneuvering a completely different system.”The cloud-born approach allows DNOs to sidestep challenges that compound for traditional organizations as they grow.For traditional carriers in the airline industry,for instance,“in many cases,the commerci
62、al and operations department systems do not natively talk to each other,”said Simhambhatla.He called this“natively disconnected.”And that creates problems that go to the core of the business:“The lack of connected data across the airline leads to suboptimal decisions,resulting in operational and cus
63、tomer experience challenges.”“The traditional question has always been,do I buy versus build?With the cloud and software as a service,that takes on a whole different character.Its really a buy and build model.”Gregor Hohpe Enterprise Strategist,AWSIntroductionChanging the leadership mindsetScalable
64、tech infrastructureLoosening operational processAction guideAbout AWS and IBV9IBM Institute for Business ValuePursuing transformation like digital nativesBut when traditional businesses embrace a DNO-like model,where the tech-business relationship is“a two-way street,”it can unlock great opportuniti
65、es.Hohpe pointed to the example of a manufacturer transitioning from selling train engines to leasing them based on passenger miles or kilometers traveled.“Without predictive maintenance,IoT sensors,machine learning,cloud capabilities,this would not be possible,”Hohpe observed.And legacy enterprises
66、 can bring the advantage of experience and industry knowledge to solutions,as pointed out by Kolp.“The history,the knowledge of how complicated and complex things can be,help us think through the different nuances that were probably going to run into,”she explained.“Even if we are creating something
67、 brand new,completely digital,from scratch,we have that knowledge and understanding of how complex its going to be and going to get when integrated into the broader system,so we can plan ahead better for pitfalls.”Enterprise leaders also need to recognize the value of infrastructure changes beyond j
68、ust the cost.“CFOs of legacy companies say,I want to save money.But that doesnt drive real value,”said Simhambhatla.“The benefit for new tech should not just be cost.If youre going to move an app from your data center to the cloud,it should enable more teams within your organization,better customer
69、engagement,new possibilities.”“The history,the knowledge of how complicated and complex things can be,help us think through the different nuances that were probably going to run into.”Melanie Kolp CTO,Nationwide InsuranceIntroductionChanging the leadership mindsetScalable tech infrastructureLoosenin
70、g operational processAction guideAbout AWS and IBV10IBM Institute for Business ValuePursuing transformation like digital natives”Digitally native companies have less friction,”said Hohpe,citing excess inventory,long cycle times,and over-utilized employees who are unavailable for decision-making as e
71、xamples of barriers that slow down progress.“Friction is the enemy people have ideas but you miss out on the opportunity because of the time it takes going through the system.You cannot overcome friction by pushing hardera classic failure for transformation.I call this bursting the boiler;it doesnt
72、work.”Inspired by DNOs,Hohpes solutions for legacy organizations are twofold:“The long-term goal is to simplify the machine.The short-term goal is to use lubricants.Understand the value of short cycle times.One counterintuitive lubricant is to reduce resource utilization.If you are 100%utilized,your
73、 wait times go to infinite.”Experimentation is another lubricant,Hohpe said.“Experimentation is critically important.How can you drive the cost of experimentation down?If you have a faster cycle time,you can make smaller changes,smaller experiments.Dont underestimate the value of small but continuou
74、s innovation.”Loosening operational process:Friction,experimentation,and organized chaosAs with their tech infrastructure,DNOs tend toward leaner,looser processesand yet despite the less systematic approach,they get a lot done,quickly.“Dont underestimate the value of small but continuous innovation.
75、”Gregor Hohpe Enterprise Strategist,AWSIntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV11IBM Institute for Business ValuePursuing transformation like digital nativesIBV research suggests that organizations can improve r
76、eturns on innovation investments by embracing open innovation.The concept of open innovationfirst put forward by theorist Henry Chesbrough in 2003asserts that sharing ideas and collaborating,both internally and externally,delivers better outcomes.8 The recent emergence of exponential technologies an
77、d the acceleration of digitization,combined with rising stakeholder expectations,have created an urgent imperative for organizations to embrace open innovation.In fact,the research showed that organizations embracing open innovation had a 59%higher rate of revenue growth compared to those that dont.
78、9Another source of friction comes from bloat.“Legacy organizations over time,they just balloon,”said Simhambhatla.“Jobs that could be done by one person are done by 30.”“Many people judge their career success by the size of the teams they lead,”he added.“They need to stop.We have to change the incen
79、tive and compensation structure.”Adopting new technologies such as cloud computing can help ease the bloat and make rapid experimentation as well as day-to-day work easier.Noted Simhambhatla,“I know of examples of cloud adoption where a legacy enterprise moved from 350 system administrators managing
80、 over 6,000 servers,to two people.”Schlecht offered specific examples of how the cloud-born business he now runs at Biota differs from the establishment energy firms where he used to work:“In some field systems,you have hundreds or even thousands of individual field computers that might not even be
81、connected to a network.How do we deploy in this environment?How do you even manage software updates without causing customer downtime?At our new firm,the whole software team is two peopleone data architect and one software architect.It doesnt require a huge amount of people to get a lot of things do
82、ne.”These leaner DNOs can simply experiment faster.As Schlecht explained:“When I started at Biota and asked for changes,I had timelines in mind based on previous processes and experiences.But it was a quick turnaround to get initial improvements,and if they didnt work out,we made another change.It w
83、as a quick iterationget something in front of the user and go from there.”IntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV59%InsightOrganizations embracing open innovation had a 59%higher rate of revenue growth than tho
84、se who dont.Source:“Open the door to open innovation:Realizing the value of ecosystem collaboration.”IBM Institute for Business Value.December 2021.12IBM Institute for Business ValuePursuing transformation like digital nativesSchlecht continued by describing the Biota development process:“Our two-pe
85、rson team sends out a quick question-naire,whats working,not working?They have user meetings after that.Based on those,they can decide very quickly,these are the next three features to implement.They work on that and do it again.Its this constant updating of minimum viable products,constant improvin
86、g of functionality without any significant disruptions.”“At Baker Hughes,experimentation was much more challenging,”he said.“There wasnt necessarily a safe space or sandbox that includes the multitude of involved systems and platforms,and every time something was connected to the network,red flags(c
87、ybersecurity)came up.Within Biota,we have a dedicated instance for experimentationall the software development and testing.Once its ready,then its rolled over.”Hohpe pointed out that the quest for efficiency within mature businesses can often work against the kind of experimen-tation and innovation
88、that is endemic at DNOs.“If you have a systems architecture point of view,the silos and roles found in mature businesses work relatively well for steady state,”he said.“They dont work nearly as well for rapid change.You just need more overlap of skills and knowledge.Overlap is positive.”DNOs approac
89、h responsibilities differently,Hohpe noted.“At digital companies,theres a lot more fuzziness at the borders of roles.It sometimes looks like organized chaos because things dont fit into these neat little boxes.More traditional enterprises need to become comfortable with that.”Hohpe isnt a reflexive
90、believer in unfettered bottom-up idea generation.“You need a feedback loop,”he said.“And you need to have a common platform for people to build on.I believe in a large top-down strategy,a funnel for the direction you want energy to go.And then within that funnel,you want a fairly long leash for auto
91、nomy.”This involves changing the behavior around how decisions are made by unteaching the assumptions and constraints that have historically been in place for employees.“We have a dedicated instance for experimentationall the software development and testing.Once its ready,then its rolled over.”Math
92、ias Schlecht CEO,Biota“At digital companies,theres a lot more fuzziness at the borders of roles.It sometimes looks like organized chaos,because things dont fit into these neat little boxes.”Gregor Hohpe Enterprise Strategist,AWSIntroductionChanging the leadership mindsetScalable tech infrastructureL
93、oosening operational processAction guideAbout AWS and IBV13IBM Institute for Business ValuePursuing transformation like digital nativesFor traditional organizations,base assumptions across the organization also need to shift.“As things start moving faster,the steady state is becoming less meaningful
94、,”summarized Hohpe.“Where youre headed,what youre going to become,thats whats more meaningful.The rate of change doesnt have linear impact.I call this the economics of speed.Once youre in the economics of speed,where speed and change are your primary concerns,you look at everything completely differ
95、ently than you would have when it was largely static.”The economics of speed arent just more favorable for DNOs;they are also driving those economics broader and deeper,within industries and in ways that traditional businesses should consider.“The constraints you had in the past,the way you ran your
96、 systems,they have very much influenced the organizational behavior,”Hohpe observed.“If you dont lift those constraints,youre basically going to get the same old results,just with fancier technology.”The DNO playbook cant simply be copied,but its wise to study whats worth borrowing.When it comes to
97、embracing change,“legacy enterprises love to talk about it;DNOs actually just do it,”said Simhambhatla.His advice to colleagues and peers:“Be absolutely fearless.”Action guide:Takeaways for legacy enterprise leadersTransformation is happening on the business side and on the tech side.Too often,those
98、 efforts are siloed.DNOs reveal the opportunity to meld the two together for strategic gain.“This is a beautiful time,”said Simhambhatla,“for the CIO to become the thread that binds the organization together.Over time,the C-suite will necessarily become more technologically savvy.”“Legacy enterprise
99、s love to talk about it change;DNOs actually just do it.Be absolutely fearless.”Ravi Simhambhatla Chief Digital Officer,Avis Budget GroupIntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction guideAbout AWS and IBV14IBM Institute for Business Value
100、Pursuing transformation like digital nativesHow can these insights be applied to your organization?Heres a set of questions that all organizations,whatever their stage,history,or maturity,should be asking themselves:Is technology an integral part of your business strategy?How can your business team
101、and technology team work together and align better?How are you responding to the economics of speed?What opportunities might you be missing?Does your organizations leadership mindset prioritize disruption or stability?How can your decision-making process be quicker?What are you doing to teach your b
102、usiness leaders about the evolving tech landscape(and vice versa)?What tough but necessary changes have you been avoiding?What are you doing to make your tech infrastructure more scalable,more flexible,more modern?What third-party tech tools and cloud capabilities are you considering?How might the c
103、loud help you serve customers and access data in new ways?How might new tech unleash new opportunities,for your team,for your customers,and for your business?How are you working to diminish the friction in your operational processes?Are you fully embracing experimentation and the concept of minimum
104、viable products?Do you have a system for constant incremental changes in implementation?Are your ecosystem partners pushing you toward newer technology or pulling you back to old technology?IntroductionChanging the leadership mindsetScalable tech infrastructureLoosening operational processAction gui
105、deAbout AWS and IBV15IBM Institute for Business ValuePursuing transformation like digital nativesThe right partner for a changing world At IBM,we collaborate with our clients,bringing together business insight,advanced research,and technology to give them a distinct advantage in todays rapidly chang
106、ing environment.IBM Institute for Business ValueFor two decades,the IBM Institute for Business Value has served as the thought leadership think tank for IBM.What inspires us is producing research-backed,technology-informed strategic insights that help leaders make smarter business decisions.From our
107、 unique position at the intersection of business,technology,and society,we survey,interview,and engage with thousands of executives,consumers,and experts each year,synthe-sizing their perspectives into credible,inspiring,and actionable insights.To stay connected and informed,sign up to receive IBVs
108、email newsletter at can also follow IBMIBV on Twitter or find us on LinkedIn at https:/ibm.co/ibv-linkedin.About AWSFor over 15 years,Amazon Web Services has been the worlds most comprehensive and broadly adopted cloud offering.Today,we serve millions of customers,from the fastest-growing startups t
109、o the largest enterprises,across a myriad of industries in practically every corner of the globe.Weve had the opportunity to help these customers grow their businesses through digital transformation efforts enabled by the cloud.In doing so,we have worked closely with the C-suite,providing a unique v
110、antage point to see the diverse ways executives approach digital transformationthe distinct thought processes across C-suite roles,their attitudes and priorities,obstacles to progress,and best practices that have resulted in the most success.IntroductionChanging the leadership mindsetScalable tech i
111、nfrastructureLoosening operational processAction guideAbout AWS and IBV16IBM Institute for Business ValuePursuing transformation like digital natives1.2021 IBM Institute for Business Value Chief Information Officer(CIO)survey.Unpublished data.n=2,500.2.“2022 AWS C-Suite Report:Cloud-Enabled Growth.”
112、Amazon Web Services.2022.https:/ IBM Institute for Business Value Chief Information Officer(CIO)survey.Unpublished data.n=2,500.4.Ibid5.Ibid.6.Ibid.7.Hohpe,Gregor.“Buy vs.Build Revisited:3 Traps to Avoid.”AWS Cloud Enterprise Strategy Blog.July 29,2020.https:/ Better Way to Innovate.”Harvard Busines
113、s Review.July 2003.https:/hbr.org/2003/07/a-better-way-to-innovate9.Dencik,Jacob,Anthony Lipp,and Anthony Marshall.“Open the door to open innovation:Realizing the value of ecosystem collaboration.”IBM Institute for Business Value.December 2021.https:/ibm.co/open-innovation Notes and sources Copyrigh
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