Our hypothesis? These organizations haven’t adjusted their operating blueprint and capabilities to embrace and take advantage of the distributed innovation that LCNC enables.
Why do we believe this? Even as many companies struggle to adopt Agile and DevOps to accelerate software development lifecycles, LCNC offers a potential velocity of delivery that’s orders of magnitude faster than anything that’s gone before. This should be a wake-up call. For those who have not completed their transformation in response to Agile and DevOps.
Bridging the skills gap
LCNC is one of the key solutions for addressing the skills gap and the resulting backlog of projects that are a fact of life for CIOs today. And it’s not arrived a moment too soon.
Right now, the prognosis is that a lack of IT skills worldwide and resulting inability to solve pressing business problems will fuel a $390 billion loss each year by 2025.1 We believe that organizations who reinvent their operating blueprint to accommodate LCNC and maximize its benefits will avoid this loss.
Designing for Balance
The number one principle for LCNC operating model design is to be able to clearly define a boundary between standardization and agility, innovation and control, and digital capability evolution and efficiency.
While innovation at pace is great for customers, those same customers will be less enthusiastic if, in the process, their data privacy and security is compromised, breached or otherwise unintentionally exposed. That’s one reason why co-innovation between citizen developers and the CIO organization is so essential.
Security is the number one concern that CIOs point to in our research, with 40% citing the risk of data being hacked. Still, they need to find a way of protecting the business and its data while enabling the creativity, innovation, and speed to market that LCNC makes possible.
Embracing Multiple Operating Models
LCNC operating models must balance the needs of innovation, stabilization, and scaling – for the business and for technology – with all of these happening concurrently. Enabling self-service citizen development allows the CIO to win the hearts and minds of the business and its pro-code developer pool. The big difference from today? Rather than acting as the technology gatekeeper, the CIO and the IT organization become the enabler of crucial business change and innovation.
In this new environment, every enterprise and its technology team may have four distinct operating models: