Seminar Nasional Internal Audit
Hotel JW Marriott, Medan - 2017
Agus Wicaksono
Chairman, iCIO Community
10 May 2017
Information Technology
In the New Normal
Global Environment
Becoming More Global
 The integration of
economic, political, and
cultural systems across
the globe
 A Level Playing Field -
all competitors have
an equal opportunity
 Historical-geographical
division are increasingly
irrelevant in a global
market
Thomas Friedman –
The World is Flat
Global Competition
 Technology creates Global Connections –
faster, deeper, cheaper
 Not just around the corner: It’s around the world!
 25% goods produced, cross national borders,
70% of the goods produced in the United States compete
against products made abroad*
* John A. Young, Global Competition – The New Reality: Results of the
President’s Commission on Industrial Competitiveness.
Estimated Global IT
Industry in 2016: $ 3.8T
https://www.comptia.org/resources/it-industry-outlook-2016-final
$ 400
$ 5M
(CDC-7600
in 1975)
2003:
$2.7B, 13 yrs
Next Decade:
$100, 1 hour
Derek Thompson, “IBM’s killer idea:
The $100 DNA-sequencing machine,”
The Atlantic, November 16, 2011
Global Competitiveness Index
#41 / 138
The Global Competitiveness Report 2016-2017
 Corruption
 Inefficient Government
Bureaucracy
 Inadequate Supply of
Infrastructure
Top 3 Problematic Factors
Technology Readiness
‘I’ Before ‘e’
The Global Competitiveness Report 2016-2017
MarketSize
Macro-
economic
Innovation
Strength of Auditing &
Reporting Standard
Technological
Readiness
10
30 31
LaborMarket
Efficiency
108
Healthand
PrimaryEducation
100
Institutions
56
80
Availability
of latest
technologies
Internet bandwidth k/s/user 112
91
108Fixed-broadband internet subscriptions / 100 pop.
107Internet users % pop.
Mobile-
broadband
subs. / 100 pop.
79
73
50
39
Firm-level
technology
absorption
FDI and
technology
transfer
111
Inflationannual%change
Does IT really matter ?
Banking is necessary
-------- Banks are Not
- Bill Gates
Disruption - Disintermediation
The Rise of
Digital Enterprises
New trends
emerge
Innovative start-ups
create disruptive
business models
Early adopters
embrace the new models
Advanced incumbents
begin to adopt
Mainstream
customers adopt
Laggard
incumbents
drop off
Tipping
point
Time
• Continual
Connectivity
• Organization
Velocity
• Deluge of Data
Source: McKinsey Quarterly May 2014 – Strategic principles for competing in the digital age
Digital Transformation
CMO
33%
38%
2%
8%
10%
CEO
CIO
CDO
CSO
Source: Forrester-Accenture 2015
Drive from the Top
Two-Speed IT
Transitioning toward
multi-channels all-agile
Do it Fast vs Do it Right
Gartner IT Maturity Model
 Operation Disciplines are
key to keeping the lights on
 Running IT as a Business
requires a cultural shift
 Transforming the business
with IT enabled would
demand innovation
environment inside-out
Business
PartnershipAwareness Committed Proactive Service-Aligned
Innovation
Visibility
Customer
Satisfaction
Quality,
Agility,
Cost
Trusted
Provider,
Run IT as a
Business
Level 5
Level 1
Level 2
Level 3
Level 4
Strategy &
Planning
Business
Engagement
Information
Management
Applications
Service
Management
Infrastructure
Risk
Management
Corporate IT
Functional Organization
Mindset
Trust
Risk
ChangeCreative
Destruction Disruptive
Innovation
Information Risk
Management
Compliance . Cyber Security .
Digital Forensic .
Natanz
2010
2011
2012
2013
2016
2015 2015
Ukraine
2017
Thank You
@aguswicaksono Agus Wicaksono agwicak@gmail.com http://aguswicaksono.blogspot.com
We didn’t do anything wrong,
but somehow we lost.
Stephen Elop
Nokia CEO, 2016 –
* Ended his speech during press conference to announce Nokia being acquired by
Microsoft

IT in the New Normal Global Environment

  • 1.
    Seminar Nasional InternalAudit Hotel JW Marriott, Medan - 2017 Agus Wicaksono Chairman, iCIO Community 10 May 2017 Information Technology In the New Normal Global Environment
  • 2.
    Becoming More Global The integration of economic, political, and cultural systems across the globe  A Level Playing Field - all competitors have an equal opportunity  Historical-geographical division are increasingly irrelevant in a global market Thomas Friedman – The World is Flat
  • 3.
    Global Competition  Technologycreates Global Connections – faster, deeper, cheaper  Not just around the corner: It’s around the world!  25% goods produced, cross national borders, 70% of the goods produced in the United States compete against products made abroad* * John A. Young, Global Competition – The New Reality: Results of the President’s Commission on Industrial Competitiveness. Estimated Global IT Industry in 2016: $ 3.8T https://www.comptia.org/resources/it-industry-outlook-2016-final $ 400 $ 5M (CDC-7600 in 1975) 2003: $2.7B, 13 yrs Next Decade: $100, 1 hour Derek Thompson, “IBM’s killer idea: The $100 DNA-sequencing machine,” The Atlantic, November 16, 2011
  • 4.
    Global Competitiveness Index #41/ 138 The Global Competitiveness Report 2016-2017  Corruption  Inefficient Government Bureaucracy  Inadequate Supply of Infrastructure Top 3 Problematic Factors
  • 5.
    Technology Readiness ‘I’ Before‘e’ The Global Competitiveness Report 2016-2017 MarketSize Macro- economic Innovation Strength of Auditing & Reporting Standard Technological Readiness 10 30 31 LaborMarket Efficiency 108 Healthand PrimaryEducation 100 Institutions 56 80 Availability of latest technologies Internet bandwidth k/s/user 112 91 108Fixed-broadband internet subscriptions / 100 pop. 107Internet users % pop. Mobile- broadband subs. / 100 pop. 79 73 50 39 Firm-level technology absorption FDI and technology transfer 111 Inflationannual%change Does IT really matter ?
  • 6.
    Banking is necessary --------Banks are Not - Bill Gates Disruption - Disintermediation
  • 7.
  • 8.
    New trends emerge Innovative start-ups createdisruptive business models Early adopters embrace the new models Advanced incumbents begin to adopt Mainstream customers adopt Laggard incumbents drop off Tipping point Time • Continual Connectivity • Organization Velocity • Deluge of Data Source: McKinsey Quarterly May 2014 – Strategic principles for competing in the digital age Digital Transformation CMO 33% 38% 2% 8% 10% CEO CIO CDO CSO Source: Forrester-Accenture 2015 Drive from the Top
  • 9.
    Two-Speed IT Transitioning toward multi-channelsall-agile Do it Fast vs Do it Right
  • 10.
    Gartner IT MaturityModel  Operation Disciplines are key to keeping the lights on  Running IT as a Business requires a cultural shift  Transforming the business with IT enabled would demand innovation environment inside-out Business PartnershipAwareness Committed Proactive Service-Aligned Innovation Visibility Customer Satisfaction Quality, Agility, Cost Trusted Provider, Run IT as a Business Level 5 Level 1 Level 2 Level 3 Level 4 Strategy & Planning Business Engagement Information Management Applications Service Management Infrastructure Risk Management Corporate IT Functional Organization
  • 11.
    Mindset Trust Risk ChangeCreative Destruction Disruptive Innovation Information Risk Management Compliance. Cyber Security . Digital Forensic . Natanz 2010 2011 2012 2013 2016 2015 2015 Ukraine 2017
  • 12.
    Thank You @aguswicaksono AgusWicaksono agwicak@gmail.com http://aguswicaksono.blogspot.com We didn’t do anything wrong, but somehow we lost. Stephen Elop Nokia CEO, 2016 – * Ended his speech during press conference to announce Nokia being acquired by Microsoft