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Prepare For 2020: Transform Your IT
Infrastructure And Operations Practice
by Jean-Pierre Garbani, October 24, 2012
FOR: Infrastructure
& Operation
Professionals
KEY TAKEAWAYS
The Empowered Business Technology (BT) Era Is Happening Now
Te proliferation of as-a-service technology, tech-savvy workers, and increased
business complexity widens the gap between what IT supplies and what the
business needs. Tese forces usher in the need for empowered business technology.
Empowered BT Does Not Signal The End Of I&O, But A
Transformation
Empowered BT by no means heralds the death of IT infrastructure and operations
(I&O). Rather, these changes require an IT organization comprised of agile and
nimble teams that enable empowered employees and customers through the direct
use of technology-based services.
A New I&O Model Will Emerge To Support Empowered BT
Empowered BT requires I&O to transition from a provider of technology
components to a broker of technology and business services. Tis requires the I&O
organization to focus on roles that assemble, design, oversee, and evaluate.
2012, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
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FOR INFRASTRUCTURE & OPERATION PROFESSIONALS
WHY READ THIS REPORT
By 2020, the proliferation of as-a-service technology, tech-savvy workers, and increased business
complexity will widen the gap between business demand and traditional IT supply. In this new era,
workers will still need desktop, laptop, tablet, and mobile devices to get their jobs done. Developers will
still need computers, storage, and networks. But they wont necessarily need their traditional supplier,
the IT infrastructure and operations (I&O) organization, to provide it directly. To survive and thrive in
the future, CIOs must embrace what Forrester calls empowered business technology (BT) and the new
operating model that comes with it. In turn, leaders of the I&O organization must follow suit. Tis report
sets the vision to help I&O leaders and teams prepare by examining how these trends will afect the I&O
organization, its practices, roles, and skills.
Table Of Contents
Three Forces Will Forever Change ITs
Relationship With The Business
Empowered Business Technology Requires
A New IT Archetype
The Role Of I&O When Your CIO Embraces
The Empowered BT Archetype
I&O Becomes A Broker Of Business Services,
Not Technology Components
Four Critical Roles In The Empowered BT
Archetype
New Roles In The I&O Organization That
Support Empowered BT
RECOMMENDATIONS
Prepare Your I&O Organization For
Empowered Business Technology
Notes & Resources
Forrester incorporated feedback from
numerous end user and vendor interactions,
as well as various other client inquiry and
consulting engagements.
Related Research Documents
Empowered BT Redefnes The Traditional IT
Archetypes
February 21, 2012
Avoid Tactical, Narrow Service Management
And Automation Strategies
January 18, 2012
IT Infrastructure And Operations: The Next
Five Years
May 3, 2011
Prepare For 2020: Transform Your IT
Infrastructure And Operations Practice
Vision: The I&O Practice Playbook
by Jean-Pierre Garbani
with Doug Washburn and Elizabeth Langer
2
4
7
12
OCTOBER 24, 2012
FOR INFRASTRUCTURE & OPERATION PROFESSIONALS
Prepare For 2020: Transform Your IT Infrastructure And Operations Practice 2
2012, Forrester Research, Inc. Reproduction Prohibited October 24, 2012
THREE FORCES WILL FOREVER CHANGE ITS RELATIONSHIP WITH THE BUSINESS
By 2020, there will be three forces infuencing the relationship of business, technology, and the IT
organization. Todays technology leaders must rethink the role they play and how technology staf
engages the business, shifing from technology control to teaching and guiding. Forrester predicts
that in less than a decade:
As-a-service will become the norm. We forecast that spending on cloud sofware, platform,
and infrastructure services will grow from approximately $28 billion today to $258 billion in
2020 reaching 45% of total IT services spend.
1
Per-use pricing, faster time-to-productivity,
and rapid feature enhancement highly diferentiate these services from the IT status quo.
Additionally, cloud computing is as much about the operational model as it is about the
technology. For I&O professionals, the most relevant component of the broader as-a-service
trend is infrastructure-as-a-service (IaaS).
A tech-savvy workforce will be self-empowered with consumer technologies. Its easier
than ever for empowered employees and application developers to circumvent traditional IT
procurement and provisioning to take advantage of new desktop, mobile, and tablet devices
as well as cloud-based sofware and infrastructure you dont support. As an indicator of this,
Forrester fnds that employees pay for more than half of the devices and data plans used for
work across every region.
2
Te same is true for tablets: Employees pay for 70% of the tablets
used for work.
3
Into 2020, this will only accelerate because the number of empowered employees
will rise as the younger, more tech-savvy Millennial workers become 45% of your business
workforce demographic.
Customer obsession and new markets will create a more complex business environment. In
the age of the customer, technology-led disruption is eroding traditional competitive barriers
such as manufacturing strength, distribution power, and information mastery. For example,
empowered buyers have information at their fngertips to check a price, read a product review,
or ask for advice from a friend from their smartphone. In the new era, the only sustainable
competitive advantage will be knowledge of and engagement with customers.
4
To make matters even more complex, by 2020, your customers wont be the ones that you
have today. Euromonitor predicts that by 2020, China will exceed the US as the worlds largest
economy, and the top Western European nations will fall out of the top fve.
5
But these new
customers wont be able to aford the products you sell to the middle class today, requiring
product and service innovation on your part to ofer quality at lower price points (see Figure 1).
Te onslaught of technology demand is particularly acute in the IT I&O organization responsible for
providing and supporting the business with everything from servers, storage, and networks to the
end point devices. Forrester believes that the challenges of the next 10 years call for measures that
go beyond an incremental evolution of IT. Similar to other industries that faced rapidly increasing
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2012, Forrester Research, Inc. Reproduction Prohibited October 24, 2012
Source: Forrester Research, Inc. 61531
2010 2015 2020
Degree
of
business
change
Radically
more-complex
business
environment
Empowered,
tech-savvy
employees
Business-ready,
self-service
technology
The business empowerment index
demand and a simultaneous need to lower costs, I&O must make a fundamental change to its
production model in order to:
Increase productivity and lower unit costs. As the component costs of IT infrastructure
decrease exponentially and the capacity and speed follows an exponential growth curve, the
demand for business services expands accordingly. To an IT organization that spends a large
part of its resources on keeping the lights on, this represents an unsustainable future that calls
for a radical change in the way IT functions within the enterprise.
Absorb service demand quickly and efciently. Technology acquisition by consumers means
that business processes and business services have to constantly adapt to demand.
6
Time-to-
market and agility are key competitive advantages. In the meantime, quality of service must be
maintained as it translates into business productivity.
Figure 1 Tree Forces Of Change Will Have A Dramatic Impact On Te Business-IT Relationship
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2012, Forrester Research, Inc. Reproduction Prohibited October 24, 2012
EMPOWERED BUSINESS TECHNOLOGY REQUIRES A NEW IT ARCHETYPE
Te three focuses of change are driving more direct control of technology-based services by leaders of
non-IT organizations, internal users, and customers all empowered by their own experience with
technology. Forrester calls this change in how technology is managed business technology (BT):
Te relentless revolution in which the business is sourcing and managing more and more technology
outside of ITs direct control.
Traditionally, IT shops have worked in a three-archetype model: All CIOs have been expected to
provide technology as Solid Utilities, some have been asked to invest in new business capabilities
as Trusted Suppliers, while a few have been called on to sit with the other leaders as Partner Players
(see Figure 2).
But BT is redefning the operations, support, and delivery of technology services and,
consequently, ITs archetypes in corporations. Moreover, BTs impact is accelerating. Self-service
technologies are becoming the norm; a tech-savvy workforce is becoming ever more self-
empowered; and rapid business change is widening the gap between what IT supplies and what the
business needs.
While this by no means heralds the death of the IT organization, these changes demand that CIOs
create an agile and nimble IT organization that enable empowered employees and customers to
be successful in their direct use of technology-based services while also responding quickly
to the changing business needs and technology realities. Forrester calls this new IT organization
empowered BT:
A technology approach where enabling technology innovation is embedded in the business while IT
provides just enough centralized coordination and oversight for enterprisewide goals.
Empowered BT is a paradigm shif for both the CIO and the IT organization, as IT and the other
business organizations balance their involvement in technology management. As CIOs learn to
manage and lead their frms move to empowered BT, this balance can swing like a pendulum among
three models of the IT organization. Forrester defnes these three new archetypes as:
Aligned IT. Tis is the traditional IT archetype, where the IT organization is focused on
delivering technology that matches business goals and expectations; the CIO is the primary
owner of technology decisions. Te I&O organization makes all technology decisions based on
enterprisewide governance principles, independently of the business, as I&O is the ultimate
source of technological knowledge. Te choice of end user devices is dictated by and limited
by the same governance principles of standardization for risk avoidance.
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Embedded BT. Tis archetype is an unsustainable model in which non-IT business
organizations drive and run technology solutions greatly diminishing the IT organizations
traditional role. Te major issue is that redundant and sometimes contradictory decisions
are made by diferent organizations. In this model, I&O is totally abstracted through the use
of external services. It raises the questions of: 1) the ability of the business to divert resources
to technology decision-making, and 2) the economics of such a distributed structure in the
foreseeable future.
Empowered BT. Tis archetype is a balance point in the middle the convergence of aligned
ITs scalability and reliability with embedded BTs enablement and self-governance. Tis model
provides the business with the freedom of choice while providing a technological advisory
resource that preserves the economic efectiveness at the enterprise level. I&O becomes an
efective advisor and broker of the services selected by the business (see Figure 3).
Figure 2 Ultimate Sofware Catalyzes Its Community Members Interactions
Source: Forrester Research, Inc. 61531
Source: March 22, 2006, The Three Archetypes Of IT Forrester report
Role of technology
How does
the enterprise
view the . . . ?
Technology required
Focus of the CIO
Visibility into IT
Mission of IT
Partner Player
Technology is integral to
go-to-market oferings
That which is unique for
competitive advantage
Business partner, integrate
with enterprise strategy
Executive team
Depends on the industry
(e.g., Get the package
there overnight)
Technology is critical for
enterprise functions such as
sales, marketing, fnance
That which is standard for
functional excellence
Service-oriented, ensure
successful delivery
Functional department
management
Do the project right
Trusted Supplier
Infrastructure technology is
critical; application criticality
varies by business unit
That which is standard for
infrastructure excellence
Operational, contain costs
Financial
Keep the lights on
Solid Utility
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Figure 3 IT And Other Organizations Involvement In Tech Management Defne ITs Role
Source: Forrester Research, Inc. 61531
Embedded BT Empowered BT Aligned IT
Business involvement
IT involvement
Involvement in technology delivery is balanced between IT and other business organizations 3-1
Empowered BT
E
m
b
e
d
d
e
d

B
T
A
l
i
g
n
e
d

I
T
3
1 2
Characteristic Aligned IT Empowered BT Embedded BT
IT focus Execution Empowerment Locally focused user
enablement
I&O focus Plan, build, run Governance, advice, sourcing,
innovation
Individual user support at
the expense of efciency
IT organization Centrally controlled Centralized or federated Decentralized
I&O
organization
Centrally controlled Centralized Decentralized
I&O role Supplier and manager for
infrastructure technology
Trusted service advisor
and broker
Decentralized utility
IT governance Steering committee
BT advice and
synchronization
Business user self-governance
I&O skills Architects and technical
hands on
Architects and trusted
advisors/project leaders
Hands-on facilitation
and support
CIOs change the IT role when moving from IT to BT 3-2
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THE ROLE OF I&O WHEN YOUR CIO EMBRACES THE EMPOWERED BT ARCHETYPE
In an aligned IT organization, the role of I&O is typically to plan for the best possible technology
for deploying a given business service, build an infrastructure based on the technology selected,
and then deploy and run the applications provided by a development group. Tis traditional role
changes with the commoditization of infrastructure components, the adoption of virtualization,
and the use of automation for infrastructure provisioning and application deployment. Te use of
automation moves the skillset required by I&O from hands-on to architecture and management of
processes. Te next iteration of empowered BT abstracts the infrastructure and transforms the roles,
the skillset, and the I&O organization itself. Tese three stages refect similar transformations in
other industries.
I&O Becomes A Broker Of Business Services, Not Technology Components
As more services are provided externally, internal roles will shif from being hands-on to assembling,
designing, overseeing, and evaluating. As one Forrester client explained: Instead of being an owner-
operator of technology, the I&O organization becomes a retailer-distributor. Put another way,
empowered BT requires I&O to transition from a provider of technology components to a broker of
technology and business services.
IT infrastructure and operations has ofen been compared to the industrial revolution and subsequent
operating model. Heres why: Manufacturers were forced to transform themselves over time according
to the technologies and resources available to better suit consumer demands. If we look at the I&O
organization from a factory standpoint, we see three stages of comparable evolution:
Stage 1: vertical integration. At this stage, controlling the diferent raw materials required for a
successful production is key because the environment does not ofer any economic alternative
or expertise. One famous example is Henry Fords cultivation of soybeans as a source of oil for
the manufacture of shock absorbers. Vertical integration is efective in cases where mastering
all technologies is a prime requirement and where technology is seen as a major advantage. Te
I&O organization is, to a certain extent, just barely out of this period. Enterprises still source all
their hardware from diferent vendors, produce their own application sofware, and operate the
resulting integration.
Stage 2: rationalization of production. At this stage, enterprises look to cut costs through
diverse measures and stop focusing entirely on gaining an advantage through pure technology.
For example, this is typically when we see automobiles share the same underpinnings sold as
diferent brands. In this stage, I&O leaders start to introduce better governance and focus on
standardization of platforms and processes.
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Stage 3: horizontal integration. In the third stage, technology itself is commoditized, and creating
the diferent ingredients of a product is best lef to specialists. A maximum of parts are sourced
from other enterprises, while retaining the core competencies of design, assembly, and distribution.
Tis means that the I&O professional becomes an honest broker who facilitates the creation and
delivery of products and solutions defned by the empowered business (see Figure 4).
Figure 4 Example: Te Future Supply Chain Of Server, Storage, And Network Infrastructure
Source: Forrester Research, Inc. 61531
*Potentially outsourced
B
u
s
i
n
e
s
s

d
e
m
a
n
d
Cost-
value
analysis
Mixed
Packaged
Custom
Confg
Resource
evaluation
Cost-value
analysis
SaaS
Public
cloud
Private
cloud
Legacy
platform*
Change
I&O role
Image
Four Critical Roles In The Empowered BT Archetype
Empowered BT ensures innovation at the edge with enterprisewide supportability by engaging
empowered business leaders in a new manner teaching the business how to leverage new
technologies in a manner compatible with existing enterprise needs and existing assets. Forrester
has identifed four key roles that will be necessary to pull this of (see Figure 5).
7
Tese roles arent
titles they represent new missions and goals of individuals you may have in your organization
today or that your business taps into as the need arises.
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Figure 5 Four Critical Roles In An Empowered BT World
Source: Forrester Research, Inc. 61531
BT visionaries Whats possible
Watch for technology-
driven opportunities
Business process
experts, empowered
business users
Consultants Make the right choice
Provide technical
skills for individual
initiatives
External resources,
business-savvy IT
staf, tech-savvy
business staf
Integrators Tie it together
Connect existing
systems with new
capabilities according
to business needs
Technology experts
and architects
Sustainability experts
Make it work for the
enterprise
Defne the guardrails
and guide initiatives
for enterprise goals
Technology experts
and architects
Empowered
BT roles
Operating
philosophy What they do
Where they
come from
I&O
roles
New Roles In The I&O Organization That Support Empowered BT
Empowered BT changes roles and responsibilities across the entire organization. Particular
emphasis will be made on the interfaces between groups such as application development, the
business, external customers, and service providers. Here are the roles that I&O leaders need to add
and emphasize in their organization (see Figure 6):
Assemblers and designers. Today, IT defnes IT services that are documented in artifacts such
as a service-level agreement. However, the bulk of these services are internal or bought as a large
block of services from an outsourcer. In the future, these services will be designed to balance the
needs of the business with the constraints of the services. For infrastructure services, assemblers
and designers will need to design their portfolio of services by assembling internal, outsourced,
and cloud-based services from multiple providers. Te detailed part of this design will be the
integration of these disparate parts.
Architects. Today, I&O architects perform such functions as policy making, standards
defnition, and direction setting. However, most of their time is spent on operational
responsibilities, such as executing projects and supporting systems. As ready-to-consume
services reduce these operational responsibilities, I&O architects will spend more time on
strategic responsibilities. Tey will focus more on the capabilities, direction, and limitations
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of service vendors to ensure that they are in line with the direction of their organization.
Furthermore, they will take on greater responsibilities in integrating all the internal and external
services that BT is using.
Process design experts. As abstracted infrastructure and other technical services become more
integrated within I&O, internal processes will need to be modifed. For example, the testing
components of the change management process will need to be modifed to accommodate
cloud-based applications.
Vendor managers. Most contracts for I&O services will continue to be managed by I&O staf
even if there is a strong vendor management function outside of the I&O department. However,
as more services become abstracted through external services, liability due to vendor mistakes
will increase and greater vetting of the vendors will be required. Tis needs to go well beyond
the contract specifcs and include the internal processes, direction, and stability of the vendors.
Planners. External services such as cloud computing or sofware-as-a-service provide a rapidly
increasing array of infrastructure options that can be deployed rapidly. However, there is liability
around these services and complexity in integrating them with existing systems and processes.
Furthermore, the expertise and resources to introduce these are not infnite. Terefore, these
services need to be prioritized strategically and tactically against business and BT drivers and
constraints. Strategically, these services need to be aligned with the direction of BT and the
business. Tactically, they must be deployed in a manner that is supportable, safe, and absorbable.
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Figure 6 Future BT-Based I&O Roles
Source: Forrester Research, Inc. 61531
Enhanced I&O role How it operates
Assemblers/designers Assemble and integrate cloud services
Design and modify services
Architects Facilitate vision for future I&O services and sourcing
Defne standards and provide oversight for cloud-based services
Process experts Defne changes to processes to exploit clouds
Vendor managers Identify and evaluate cloud providers
Contract management for cloud vendors
Planners Facilitate prioritization of I&O resources
Match supply with demand
Service management
External service management
T
e
c
h
n
o
l
o
g
y

e
x
p
e
r
t
i
s
e
Quality Security Network Automation
Service architecture
Design Capacity Selection Contracts
Service
catalog
Service
desk
Finance
Business
support
New roles to support empowered BT come with a new I&O task structure 6-2
Key roles to add to the I&O organization as your CIO pursues empowered BT 6-1
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RE COMME NDAT I ONS
PREPARE YOUR I&O ORGANIZATION FOR EMPOWERED BUSINESS TECHNOLOGY
If your CIO determines that the empowered BT archetype is right for your organization, its your job
as the leader of the I&O organization to prepare your team for this new operating mode.
8
But few
of todays I&O organizations are designed to play the service broker role because IT is organized
around technology silos such as mainframe, servers, storage, networks, desktops, mobile, telephony,
and departmental systems. To succeed in empowered BT, I&O leaders must evolve their entire
organization. I&O leaders must prepare their teams to:
Become more role-focused and specialized. Te complexity of infrastructure has
forced people within I&O to support multiple systems and services and perform both
engineer and operational tasks. A network engineer with multiple certifcations and
years of technical experience will, in the same day, perform a wide variety of nonrelated
tasks, from administrative to design to troubleshooting. Maintaining these large, complex
infrastructures leaves little time for project work. Tis needs to stop. Forrester predicts I&O
roles will bifurcate and become more specialized to optimize stafng ratios and maximize
business value.
9
Place greater emphasis on oversight, direction setting, and consulting. As infrastructure
becomes abstracted into public or private clouds, or new bring-your-own models are
made available to users, the demand for traditional I&O skills needed to design, deploy,
and maintain systems will be reduced. And as the simplicity of as-a-service technologies
empowers end users to drive more technology decisions, I&O must provide consulting to
ensure that they are using these tools efectively and safely. In the context of bring-your-own,
I&O can help guide workers on what device decisions they should make based on their role
and the type of work theyre doing.
10
Rethink their approach to IT service management (ITSM). Most IT professionals only
associate ITSM with the IT infrastructure library (ITIL) processes, even though it is
critical to supporting bring-your-own and as-a-service sofware and infrastructure. Whats
missing is the customer perspective. Although recent updates to ITIL have added business
relationship management and fnancial management, this isnt enough: ITSM remains
predominantly inside-out. Forrester recommends that I&O leaders rethink their approach
by dropping the IT from ITSM and add automation instead, to deliver customer outcomes
faster, cheaper, and at higher quality. Te result: service management and automation.
11
Tis
change supports I&Os transition to broker of technology services (see Figure 6).
Develop new metrics that reward efciency and performance, not excessive heroics.
Most I&O organizations consist of frefghters: staf who defne themselves in terms of
how quickly they solve problems. However, these groups fnd little time to look at and solve
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the underlying problems. Making the changes to empowered BT requires people to move
away from defning themselves in terms of tactical frefghting. To do this, IT management
must develop measurements and rewards that favor long-term improvements in efciency
and performance. To rethink your I&O metrics to better support empowered BT, Forrester
recommends using the proven Balanced Scorecard methodology.
12
Use targeted research to stay head of the curve and make smart decisions. Te breadth of
available services is changing rapidly with greater end user visibility in what is possible. Of
course, I&O organizations need to enable new options, but they are also the defenders of
reliability. Terefore, its important for I&O leaders and their teams to stay ahead of demand.
To do this, research new oferings from your vendors. To make smart decisions, compare
this vision with adoption and best practice data from your peers.
ENDNOTES
1
In 2020, the rise of as-a-service technologies, empowered workers, and a radically more complex business
environment will challenge IT I&O leaders. Tis will require I&O organizations to shif from the role
of primary provider of IT services to a broker of public and private services. See the February 7, 2012,
Develop Your Road Map For Service Management And Automation Processes report.
2
Source: Forrsights Workforce Employee Survey, Q4 2011.
3
Source: Forrsights Workforce Employee Survey, Q4 2011.
4
Technology-fueled, customer-led disruption will eventually arrive on the doorstep of your industry or
business. See the June 6, 2011, Competitive Strategy In The Age Of The Customer report.
5
Source: Euromonitor International (http://www.euromonitor.com).
6
A new interaction- and process-focused front end combined with the delivery of internal and external
functionality in a more fexible way will permit banks to deliver services at the pace that increasingly
impatient and demanding customers require. See the December 8, 2009, The Banking Platform Of The
Future report.
7
Empowered BT doesnt choose between the objectives of consistency, scalability, and control versus
empowerment, diferentiation, and self-governance. Instead, it combines them into both/and. Empowered
BT combines these seemingly incompatible goals through new roles and through a governance approach
based on guardrails rather than narrow, prescriptive rules. See the January 7, 2011, BT 2020: ITs Future In
The Empowered Era report.
8
Forrester provides a tool that can help a CIO determine if an empowered BT archetype is appropriate in
her frm, based on industry realities despite the executive leaderships expectations that IT should be an
efective business services provider. See the February 21, 2012, Empowered BT Redefines The Traditional
IT Archetypes report.
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9
When you have someone performing multiple tasks, you want to make optimum use of the right talents.
Many I&O professionals are not being optimized because their skills are not appropriately leveraged for
maximum business value. Too many I&O staf fulfll both an engineering and an operational function. Tis
is wasteful because they mandate diferent mental faculties and emotional competencies. See the February 6,
2012, Become Customer-Centric, Service-Focused, And Automated report.
10
Conduct surveys to get the most accurate picture of what employees want. Workforce surveys are the gold
standard for gathering employee intelligence. Market intelligence professionals and pollsters rely on surveys
to segment and analyze potential buyers or predict the outcome of an election. In 2009, Forrester brought
these assessment techniques to workforce technology assessment. With the deep requirement to get
employees on board, a survey is the best way to have a fact-based conversation about the analysis. See the
August 24, 2012, Analyze What Your Social Business And Collaboration Stakeholders Really Need report.
11
Te customer focus of service management is ofen lost when applied to information technology, producing
the well-known discipline of IT service management (ITSM). To get back on track, IT infrastructure and
operations (I&O) leaders should drop the IT from ITSM and add automation instead to deliver customer
outcomes faster, cheaper, and at higher quality. Forresters Service Management And Automation playbook
will help you deliver on this imperative using our Discover, Plan, Act, and Optimize approach. See the May
1, 2012, Deliver Technology Services Faster, Cheaper, And Better report.
12
Since its inception in 1992, the Balanced Scorecard (BSC) evaluates performance across four perspectives:
the value perspective, the customer orientation perspective, the operational excellence perspective, and the
future orientation perspective. See the June 14, 2012, Develop Your Service Management And Automation
Balanced Scorecard report.
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