From Caterpillar to Butterfly — The EuropeanData CenterEuropean Symposium/ITxpoStephen EnfieldPalais des FestivalsCannes, FranceThese materials can be reproduced only with Gartner’s written approval. Such approvals must be requested viae-maqilu —ot @.
From Caterpillar to Butterfly — The European Data CenterFrom Caterpillar to Butterfly —The European Data Center•The 1990s saw drastic change ...•The “dot-com” boom and bust•The end of the mainframe•The emergence of Unix and NT in the data center•The end of the millenniumCopyright © 2002The 1990s saw dramatic and unprecedented changes in the data could have foreseen the ra“pdido te-mcoemrg”e cnocme panandi edse?cline of the Many data center managers were required to adapt their services, processes and structures in accordancewith new business models — only to see the status quo restored in the aftermath.“Who needs a mainframe anymore?” was the proclamation; “the dinosaur will again become extinct”was the prediction. The new order of the day will be Unix and NT; these two platforms will provideeverything the mainframe can offer, and the most attractive attribute will be lower cost was estimated that up to $500 billion worldwide was spent addressing year 2000 change has caused transitions from a mainframe-centric paradigm, to client/server, tonetwork- and Web-based architectures. With each transition, management complexity has increased, andeach transition is more difficult to control and manage than its predecessor was. As if technologicalchange was not enough of a burden, we are also faced with business changes being driven at “warpspeebdy” a highly competitive global marketplace. For these business changes to occur, the enabling ITmust be changed along with the business process design. However, it is also clear that the winners in thisrace will achieve the elusive “sustainable competitive advantage,” which is gained only by adapting tothe changing business environment faster than the competition can. Enterprises that lag too far behind inthis race face contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 012change without notice.
From Caterpillar to Butterfly — The European Data CenterKey Issues1. How are data centers evolving?2. How can you ensure that your data center staff has the necessary competencies?3. How should managers react to changing realities?This presentation will look at how these factors of change have driven the evolution oftraditional data-center-management techniques. In particular, we will look at how these factorsare causing data centers to redefine themselves, how staffing will be affected, and how you as ITmanagers need to react to the changing contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 022change without notice.
From Caterpillar to Butterfly — The European Data CenterKey Issue: How are data centers evolving?Times Are ChangingCost ManagementInnovationTime to MarketAgility/FlexibilityCopyright © 2002Key Issue: How are data centers evolving?Many factors influence imn taondaagye’ms denata d Never before have data center managers been under pressure to deliver on a number of separatefronts. They are expected to reduce the cost of services they provide to the business while alsomaintaining or improving the level of service. One size no longer fits are demands to adjust to shortened time scales, to align with time-to-market strategies. Forthe financial services industry, as well as retail and manufacturing, the focus on time-to-marketis now a key driver in maintaining or increasing market businesses, fluctuating economies, intense competition and complex businessintegration all pcuetn toerdsa uyn’sd deart a harsh spotlight. Are they agile enough to exploitnew opportunities? Can they deploy people quickly enough as needs emerge?Entire contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 032change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: Too many enterprises take advantage of the lower midrange unit costvs. the mainframe and scale-out. The more-effective organizations will scale to Reduce Your Costs ...€30,000Occupancy€100,000Finance & % decrease90,000Bus. Resumption25,000Tech. Support80,000Operations70,000Software20,000CostCostHardware60,000perperMIPSServ5e0r,00015,00040,00030,00010,00020,00010,0005% decrease5,0000199719981999200020020 . SupportHardwareSoftwareBus. ResuOmcpctuiopnancy€35,000S/390OperationTsech. SupportBus. ResuOmcpcutiopnancy30,000Unix65% decrease25,000Costper20,000Server15,00010,0005,000NT019971998199920002001200C2o © 2002Key Issue: How are data centers evolving?How have costs changeSd/ 3in90 t hCeo slat/sM tT fIhiPveS eS Ty/re3ea9nr0ds ?:e nvironment has a long historywithin most data centers, and bears the hallmark of a mature, highly efficient operations platform. Hardware costshave continued to decline. This reduction is somewhat offset by higher software and support costs as a percentageof the S/390 euro. The 10,000/MIPS total is based on the Gartner Measurement database as a whole, and issomewhat skewed by some particularly large mainframe installations. While the unit cost continues to decline, therate of consumption continues to grow aggressively. The average installed MIPS capacity in 1997 was 1,101, and thisgrew to 1,6U63n ixn C20o0st1 eors Stse rfvoerr :Unix operating environments have declined (on average) by 14percent annually on a per-server basis. This improvement in unit cost is not a result of falling hardware costs, asseen in the S/390 environment, but rather as the result of an overall increase in the number of Unix servers beingmanaged, thus driving economies of scale. This increase is somewhat offset by the “scaling up” process that we seein many data centers, in which smaller servers are being combined into fewer, more powerful servers. Despite this,most data centers are “scaling out” — that is, purchasing additional servers — at a faster pace than “scaling up”through serverN coTn Csoslitd p aIentri oSan vmeri:lar vein to Unix, total costs per server for the NT also havedecreased as the quantity of NT servers proliferates throughout the data center. Ease of installation and low unitcosts have resulted in highly complex, unmanageable environments. As a result, in the NT environment, the biggestspending after hardware is staffing. Costs have improved at an average annual rate of 23 percent since 1997, drivenby large decreases in the unit cost of contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 042change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: In a cost-cutting exercise, if service levels suffer, no one will be a hero.… While Maintaining = . Reduce cosItIs. Maintain costsdelivery ofand = levelsS/390UnixNTIV. Increase = Under-III. Reduce costsor reduce requirementsdelivery ofand LowCost per Service DeliveryCopyright © 2002Key Issue: How are data centers evolving?Gartner Measurement is finding that enterprises attracted by the allure of lower costs haveimplem“emnitdedfr( aUmneix” and NT) solutions, only to discover that hidden costs oftenoffset the savings more than expected. Worse yet, enterprises brought their mainframe-level ofexpectations with them to these open systems. The lack of adequate systems-management tools,and the maturity level coof mthbei nteecdh ntoo cloregayt,e h anv e nvironment that — whilerobust in functionality — is sorely lacking in service delivery. Quadrant II is where ISorganizations should target their cost/effectiveness. In it, costs are lower than the database (onaverage) and business requirements are being met. Quadrant I residents are meeting andexceeding their business requirements, but they are doing so at a higher-than-average cost. Thismay be acceptable, particularly in business systems that require special or proprietarytechnologies. Those residents of Quadrant IV have lower-than-average costs but are not meetingbusiness system Item: Organizations in Quadrant IV are finding that service delivery events have either occurredinfrequently or not at all, which gives a false sense of security. In these cases, IT must be prepared toproactively communicate with the lines of business to gain greater alignment and contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 052change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: To counter the rising expenditures in Unix and NT, exercise the samerigorous procurement principles as used for S/ Balance Is ShiftingMainframe spending drops below 20% in the data %17%9021%20%80Precentage70of Data60Cneter50Sepnding83%4079%80%3020Mainfra1m0eMidrang0e199920002001Copyright © 2002Key Issue: How are data centers evolving?As we have previously seen, the trend for scaling out in the Unix and NT technologies is borneout by the overall spending percentages shown the past three years, Gartner Measurement has observed a 19 percent decline in S/390spending within the data center. Consequently, those monies have gone to Unix and to the middle 1990s, when mainframe spending was typically 45 percent of the ITbudget, it now only accounts for less than 20 shift equates to $ billion more being spent on Unix and NT combined. You may thinkthis supports the view that mainframes are being phased out by their smaller, nimbler contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 062change without notice.
From Caterpillar to Butterfly — The European Data CenterDefinition: Mission-critical systems are designated as those for which outages wouldrepresent unrecoverable financial losses for the Systems DeploymentMission-Critical Systems Deployment by Platform50%43%4542%39%4037%35323%2%29%3026%2520%201510502000UnixNTS/39020012002 Remains the Platform of Choice forMission-Critical © 2002Key Issue: How are data centers evolving?When it comes down to reliability, availability and scalability, the S/390 platform remains themost heavily leveraged technology used for mission-critical 2001, 42 percent of business-critical applications that were measured resided on mainframetechnology, as opposed to 32 percent for Unix and 26 percent for Unix environments implement better systems-management processes, Gartner expects to seethe Unix level reach that of the S/390 level of mission-critical services. The Unix environment isalready performing at an availability level comparable to the S/390 — but this comes at a Unix total cost per server is m’os roen t haa lnik feo-uforr t-ilmikes b than NTData center managers should continue to closely evaluate the customer impact of deployingmission-critical systems on NT, at its present level of performance. User service-levelexpectations must be set clearly to the technology’s maturity and ability to contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 072change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: To reduce complexity and minimize skill requirements, IS managementshould seek to deploy new solutions onto existing Critical Success FactorsIt all comes down to ...• Cost• Agility• AvailabilityCopyright © 2002Key Issue: How are data centers evolving?As we have previously seen, unit costs are in a continual state of decline. The data centermanager requires the ability to negotiate down costs with vendors, evaluate insourcing , evaluate external services providers for non-mission-critical activities, and identifyinternal opportunities (such as standardization and automation) to reduce complexity and,therefore, reduce support on the choice of platform is now even more crucial to ensure availability andeffectiveness of service to the business. We have seen that the S/390 platform is still the mosteffective choice. Unix and NT solutions may seem attractive from a cost perspective, but untilnow, they fell short with regard to service final piece of the puzzle is time to market. The data center manager is required to manageproject resources and technology deployments, in line with reduced time scales being driven bythe business. In today’s business world of mergers and acquisitions, the environment has grownmore complex and diveresnev. Iirt oisn mthen stt a—nyd m aorotdhreiz rte h—da n t hatallows the data center manager to better plan future technology and resource requirements tomeet business contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 082change without notice.
From Caterpillar to Butterfly — The European Data CenterKey Issue: How can you ensure that your data center staff has the necessarycompetencies?Evolution of the Data CenterOrganizationRole-BasedShared ServicesHybrids (Central/Decentralized)Centralized Organizational Structure1960s1970s1980s1990s2000sThe Changing Role of the Data CenterCopyright © 2002Key Issue: How can you ensure that your data center staff has the necessarycompetencies?The traditional, centralized data center of the past is rapidly giving way to a more distributedstructure. Wreo lcea-blla stehdis o arbg eacnaiuzastei oint represents an association of multipleorganizational styles and sources that fulfill different roles within the data center. While thetraditional data center will not disappear, we believe that its form will change dramatically,encompassing a mix of services, consultants, centers of excellence, resource pools and businessliaisons, rather than a single, integrated IT function. Many of the traditional functions can beconsidered or“gtoaontlihsza”at t inoeneadl to be brokered and coordinated. For mostenterprises, the new data-center organization will be dramatically smaller and more business-focused. Total IT employment will continue to grow; those on the internal payroll will fully expect the data center to be a more modular, flexible structure that will align moreclosely with the speed of contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC14P,a 1g1e/ 092change without notice.
From Caterpillar to Butterfly — The European Data CenterStrategic Planning Assumption: By 2005, 40 percent of all IT professionals will makethemselves available as independent brokers, or through contracting firms ().Who Will Do the Work?100%Business StaffBusiness users9080Business process70outsourcers External IS Staff60Systems integrators,consultants50Infrastructure40outsourcers and ASPs30Contract workers20Decentralized IS staff10 Internal IS StaffCentral IS staff0200020032005Copyright © 2002Key Issue: How can you ensure that your data center staff has the necessarycompetencies?The data center has seen a drastic change in its resource profile. In 1998, Gartner Research found that only15 percent of the data center staff was involved in business management, 20 percent in IT managementand the remaining 65 percent in the technical domain. While this resource definition has not continuedinto the millennium, current research clearly indicates a continued reduction in the technical areas (seeinternal staff above) and the growing influence of business management issues. A sourcing strategy is aprocess by which enterprises consider the work that must be done and evaluate their options for doing on such factors as whether the skill is a long- or short-term need, and whether it is consideredcritical to success, the enterprise will hire someone for the role, retrain someone or buy the skill on theopen market. It sounds simple, but most enterprises do not do forward, many data centers will change into enterprise operations centers. As they do so, they willconsider using outsourcing for much of the technical and implementation work while retaining high-value functions like architecture, planning, network design, project management and relationshipmanagement. For most IS professionals, a “boot camp” approach will suffice. Only a select group — thecore individuals responsible for IT strategy, architecture and management — will be groomed for rolesand given the associated Item: Determine whether the enterprise is inappropriately applying training by preparing short-term workersfor long-term roles that they will never contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0120change without notice.
From Caterpillar to Butterfly — The European Data CenterDecision Framework: Develop a structure for regular interaction between business unitsand the IS organization to identify new/review existing skill Skills for Data CenterManagers•Hot New Skills–Relationship Management–Financial Analysis–Marketing•Old Skills; New Context–Vendor Management–Contract ManagementCopyright © 2002Key Issue: How can you ensure that your data center staff has the necessarycompetencies?IS organizations that are successfully transitioning to “value-added provider” and strategicpartner are relying on business unit relationship managers to tie together the worlds of IT andbusiness. Through account management, IT can deliver governance, the right content on-time,strategy and reasonable cost. Bench—ma nroktin fgo ri sit cse onwtrna ls taok eth,e relationship but rather in identifying what measures have real impact. Understanding the cost componentstogether with the business perceptions and expectations will deliver the knowledge of what canbe done to affect business unit goals — and this is a tremendous contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0121change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: To meet business objectives, use “scorecarding” or other techniquesto monitor and review the data center’s strategic planning Skills for Data CenterManagers•A new slant onthe old disciplines•Project Management•Systems Integration•Strategic PlanningCopyright © 2002Key Issue: How can you ensure that your data center staff has the necessarycompetencies?Data center managers must fluidly handle multiple, conflicting projects. Cope expertly withenterprise IT as it has always been — a monolithic entity, populated with solid IT professionals,organized around traditional IT disciplines and delivering core functions to lines of businesswhile saying “no” or “later” to everything , data center managers must handle increasingly complex architectures; worldwidedistributed systems; and innumerable, simultaneous users and workforces — on-site as well asremote, internal and external. These new realities need to be incorporated into the manager’svery rules of management have also changed. As managers’ actions and inactions emerge as theprecipitating cause of employee turnover, enterprises must invest heavily in manager-focusedtraining, concentrating largely on team building, technical training, business effectiveness andproject management. Training plans should explore creative ways of delivering learning and notresort to “classroom only” mind-sets. Mentoring, situation-specific coaching, on-the-job trainingand partnering on assignments are all valuable techniques for the delivery of training, if they arematched to the training contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 012change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: Develop a sourcing strategy and customize learning for the variousworker a Balance in TechnicalSkills•Programming– Web Authoring•Network Administration– Wireless•Operations– Automation•Technical Support– Web Hosting/Storage•User Support– CRMCopyright © 2002Key Issue: How can you ensure that your data center staff has the necessarycompetencies?Re-skill strategically. When it comes to re-skilling and development, do not treat all IT professionals IS organizations spend between 2 percent and 5 percent of their overall IT budgets on training, yetmany feel that they are not getting their mindoinvei dtyeu’nsa dlws toorth. We believe this is because drive training, and enterprises do not have a re-skilling , IS professionals attend the training classes that they select, and for which they can get theirmanager to pay. The enterpritshea’st trheeq utriareinminteogn ti“t, sbo ejfo ”ua rTtsehed,i sis loosely defined process results in high training costs and poor better approach is to identify the IS organization’s core competencies and build talent around should also identify the core group of individuals who are being prepared for key roles in theorganization. For everybody else, consider boot-camp-style training that provides just-enough training,just in time. IS organizations should avoid providing more training than is needed, and they should notlet individuals completely drive the training strategy by deciding what new skills to learn and high-performing individuals will often identify their next job before their managers do, thosecareer goals must align with the enterprise’s strategy and contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0123change without notice.
From Caterpillar to Butterfly — The European Data CenterKey Issue: How should managers react to changing realities?Business and Technology GoalsDetermine the FocusBusinessCustomer RetentionGoalOne-to-three yearsin advanceImproveProacPtiveersonalizeInitiativesCustomerMarketPinrgoductsServiceWebSpeecShmaDrtataAgentsTechnologiesSelf-HReelpcogCniatirodMnsiningSix-to-12monthsin advanceApplicationDatabMasidedlewareJavaIntegratSkillsDioensignWeb SiebelDevelopVmoeicnet Over IPCopyright © 2002Key Issue: How should managers react to changing realities?Without a clear business strategy, it is impossible to formulate a re-skilling most common reason given for a poor skills-planning process is the lack of clarity aroundfuture business and technology requirements. With no clear business plan or strategy, many ISmanagers claim that they cannot plan technology deployment or forecast skill reality, most enterprises have a better idea about future requirements than they think they at least have enough to form the basis of a skills-planning process. An effective skills-planning process helps to avoid crisis management in resource planning, freeing up at leastsome of the resource managers’ Item: Enterprises should forecast the technology and business skills they will need for the next threeyears. Part of that exercise involves identifying which applications support the business strategy andprovide high value, since these applications have the greatest potential to change the skills contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0124change without notice.
From Caterpillar to Butterfly — The European Data CenterTactical Guideline: For each major IT discipline, IT management needs to identify the mostappropriate combination of commodity vs. custom-made and centralized vs. — Does One Size Fit All?Custom-MadeDe-CentralizedDesk-Side Assistancecetral-izedHelp DeskCommunicationsMainframe and ServersStandardizedIn search of the comfort zoneCopyright © 2002Key Issue: How should managers react to changing realities?All things being equal, centralization affords management the luxury of direct control, whichsimplifies decision making and reduces the complexity of the management problem. Inparticular, where cost efficiencies are a primary goal, consolidation of functions is generally anappropriate practice. The three attributes that drive down cost of ownership are consolidation,simplification and value of distributing technology and decision making is in creating a structure that isresponsive to rapidly changing business requirements. Businesses that have invested fullresponsibility in their units for profitability often create business-unit IS organizations as recognizes the need for local business management to control all elements that drive theirsuccess, and to leave decisions about sourcing, funding and technology selection to localbusiness management. Conversely, this approach also diffuses enterprise governance, andmakes the integration of basic networking, communications, data management and e-commerceservices more contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0125change without notice.
From Caterpillar to Butterfly — The European Data CenterStrategic Planning Assumption: By 2005, enterprises will spend an average of 7 percent ofthe IS budget to develop in-house skills, and manage skills that reside with externalresources ( probability).People — Identify What Skills toDevelop, and Their ValueHighStrategic Disciplines(such as strategic business management,financial analysis, enterprisearchitecture, contractnegotiation, data modeling)Product-ComparativeSpecificInvestmentSkill Sets(funding, time,(such as SAP,Role Experienceresources)Oracle, NT)(such as relationshipmanager, business analyst,Professionalservice manager,Credentials,post-sales consultant,Vendorproject team leader) CertificationLowImmediaStheort-TerMmidtermLong-Term<3 mo.<12 mo.<24 mo.>24 © 2002Key Issue: How should managers react to changing realities?Understand which skills can be developed. Product and technical skills are the easiest and leastcostly to develop. They also yield the least value. Such skills are typically developed in three-to-12 months, and can be acquired through widely available certification programs and discipasli napesp l—ica stuiocnh design, network design, system integration andarchitecture — are mordee Tt ahnesde c doisstclyip tloin es, which are tied to thebusiness’s long-term growth and objectives, represent the IS organization’s core competenciesand require traditional training, project experience and interaction with experienced ISprofessionals. Business knotow sletrdagteg iisc adciqsuciiprelidn essim —il a“rc ourseware,”partnerships and experiences within the company. Behaviors are generally innate and extremelydifficult to develop. Innate behaviors — such as strong communication and leadership — can beenhanced through training programs. However, generating such traits from scratch Item: Ensure that at least 70 percent of training is aimed at building strategic disciplines in contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0126change without notice.
From Caterpillar to Butterfly — The European Data CenterStrategic Imperative: Short product cycles, dynamic business changes and the shortage ofrelevant IT skills mean that most enterprises should hire in search of core knowledge andbehaviors, rather than chase specific technical the Skill Portfolio:Hot Skills Are Just the Beginning“What we hire for” — basic knowledge, competencies industry and business process knowledge technical aptitude team effectiveness flexibility and adaptability good judgment“What we invest in” — strategic disciplines project management systems integration architecture vendor management relationship management“What we buy” — hot skills Java development Oracle database administration Web site performance and capacity planning SAP, PeopleSoftCopyright © 2002Key Issue: How should managers react to changing realities?Build a strong talent network. Enterprises must get out of the perpetual “fire drill” for talent. Ifthey do not have a strong talent network and a strong skills-planning process, then they will beforced to turn to outside resources, even when they do not wish to do so. For instance, if a hiringmanager learns that he or she needs 14 Java programmers in two weeks, then there are not a lotof options for staffing, other than turning to contract labor or outsourcers. While a certainamount of unexpected work in IT is always going to exist, enterprises can improve their chancesof sourcing strategically by iwntietghr IaTti pn—gla nbaunsitnicngiep sast ipnlgan tnhienirg need for IT skills and giving themselves more time to weigh their sourcing most successful enterprises will be those that are the best at developing and managing alarge and external network of talent. For IS organizations, the talent pool is not limited toindividuals who are seeking full-time employment. Rather, it includes former employees,freelancers, interns, retired employees and those who may be looking for part-time or seasonalwork. Best-in-class organizations recognize that, since speed is key, the ability to quicklyassemble talent must be a core competency. Employee referral bonuses, which reward currentworkers for recommending people for open positions, are among the best and least-expensiveways to build a strong external talent network contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0127change without notice.
From Caterpillar to Butterfly — The European Data CenterRecommendations• The emerging European data-center manager should no longer be focused on managing “tin”;the ability to balance cost management, service delivery and skill profile is now vital for success.• Cost efficiency will remain an important aspect for the foreseeable future; however, this shouldbe managed within the context of business effectiveness. Nobody saves their way to success.• As data centers seek to elevate their performance and improve their credibility, they need torefocus on roles and competencies that drive tangible business value, and predict superiorperformance.• Enterprises should forecast the technology and business skills they will need for the next threeyears. Part of that exercise involves identifying which applications support the business strategyand provide high value, since these applications have the greatest potential to change the contents © 2002 by Gartner, Inc. All rights reserved. Rpeprmroidssuicotnio ins ofof rtbhidsd peunb. liTchaetion in any form without prior writteninformation contained herein has been obtained from sources abcecluiervaecdy ,t oco bmep G oarrtner disclaims all warranties as to theStephen Enfieldadequacy of such information. Gartner shall have no liability dfo hr eerreroinr so,r o fmori sinstieornpsr eotra itnioandsequacies in the information containethereof. The reader assumes sole responsibility for the selecotniosn e oxfp trheesse dm haetereriianl sa rtoe asuchbijevcet tiots intended results. The opini44J, ESC1P4a, g11e/ 0128change without notice.
