 So we're now going to move to Accenture and I'm going to introduce Daniel Benton who's Global Managing Director of IT Strategy with Accenture which covers the IT strategy in the IT transformation areas for organizations helping them to improve their performance. He's also a leading thinker around the CIO agenda and sponsors the Accenture High Performance IT Research Program and driving much of their thinking around digital business. He's architected and driven transformation programs the IT function of several major organizations in Europe in the US and actually advised it's many clients around IT strategy and governance. So please give a big warm welcome to Daniel Benton. There we go, that's me, they've got the right person. So I'm responsible for three things Accenture. There's IT strategy which all around business and IT alignment, enterprise architecture and the practice we have there and what we call IT transformations and as just mentioned we manage those three things together because clearly one's about setting the direction for technology within a business, the next one's about actually what underlying blueprint you need and the third one is about how do you get the IT organization then actually fit to execute that, what set of capabilities do you need. All three of those are actually causing complexity at the moment, there are trends going on within each of them that are making life just more complicated. So if you're a CIO at the moment or if you're running a technology company, no big news, things are getting more complicated and we're seeing as Gail has said a consistent set of issues and questions coming out of most of the clients that we talked to at the moment about how do they cope with this world and that's why we're delighted to be part of this consortium and why we think it's really important. So let me drill into those three areas a little. Obviously we don't believe in digital, having heard Magnus, unfortunately most of our clients and most of the business that we talked to do and you can talk about smack convergence, how to apply social mobile analytics and clouds to business processes, how to create new business but for me actually that's not the important convergence in digital, for me the really important convergence is this complete convergence between the business and the technology agendas. So life used to be easy, there were some business people some that worked out what they wanted to do and if you're a CIO then worked out well how much money did you have to spend, what did you need to spend it on and you develop an IT strategy. And IT was very much an enabler to a business strategy. What we see now is that technology is increasingly actually becoming the business strategy and in a digital world it's less about this is what I want to do, what technology do I need. It's about if I had this technology how could I create value out of it and that's driving a very different relationship and in this intersect between business and technology strategy we see the emergence of all sorts of new beasts called the chief digital officers or whatever. Actually that should be the job of corporate IT, that should be the job of the CIO because if you're not driving that agenda, someone else is, you're just being the service delivery organisation. So there's an open door there and businesses are looking for technology to come and create value to come up with new innovation to work very closely with them. And from our own point of view, you know, beginning of this year we actually joined our business and technology strategy organisations together because increasingly we realised we were having exactly the same discussions with exactly the same people and exactly the same clients. It's become the same agenda. I'll mention that I run something which we rather grandly call our high performance IT research. We run this every couple of years or so and we talk to a couple of hundred CIOs around the world and find out what's on their mind. And we measure the performance, actually a self assessment thing against 150 different measures of the way you could measure an IT organisation in its performance. And what we discovered when we did this last time is that there are three things that the people who get it right seem to be getting right consistently. You see here the perils slightly are moving a four by three slides to a 16 by nine screen, but there you go. Three things they get right together. Innovation, agility and execution. Now, IT execution is just can I deliver reliable IT on time, on budget in a way that works to support the business. That's if you like the table stakes. But as I'll show you, that's actually getting considerably more complicated at the moment. Innovation is really about that owning the debate of the business, helping the business to co create strategy new ideas for creating value with the business. And some people are very good at that. Other people are less good. But in many cases, not because they don't want to, it's because they can't. And that's where agility comes in as well. Agility is really to say, the pace is moving fast than ever before. And in too many cases, IT gets in the way. So how can you respond to a very rapidly changing business environment? How can you run IT differently so that you can be really agile? And the problem that nearly every corporate IT organisation has is it's a bit like the Irishman, who when he was asked for directions to the next town replied, Well, I wouldn't start from here. And that's the problem that everyone's got. It's legacy. And it's not legacy just in terms of the architecture, it's legacy in terms of the processes in terms of the organisation in terms of the people, the skills that you have the relationship with the business, etc. And the people who are actually performing better and able to drive the debate with the business seem to have sold agility, particularly to start with. And particularly, they are earlier adopters of new technology. They managed to keep on investing when other people weren't. And where they are is they're further on this journey. Everyone now is trying to deal with a hybrid, a hybrid of on premise legacy, private cloud, public cloud. Let me draw that more simply on the left hand side here, you can see this thing which looks a little bit like an alien with two ears. IT in the middle, largely still within the firewall, people are trying with some external stuff in the cloud there, either, you know, from an infrastructure point of view, or they try to use sales force or some early SaaS. Everyone is an inexorable journey from the left to the right, moving at different paces, depending on which industry they're in, depending on where they started from and where their legacy is dependent on that appetite for risk. But we're moving from somewhere where I used to control my IT, it was within my firewall and I knew where it was, to somewhere where I will still have some stuff within my firewall, I will still always own things, but increasingly, I'm going to be sourcing services from outside. Even worse, the services that I'm sourcing from outside, source their own services from somewhere else as well. So we have the emergence of service aggregators, cloud service brokers, et cetera. That can be fantastic in terms of solving your agility problem if you can get it right. But it adds huge complexity somehow you've got to manage all of that, somehow you've got to join it all up. So if you're going to get the agility that the business needs, problem, you've actually got a much more complicated architecture than you had before and you've got to find a way to manage that. Similarly, from an organisational point of view, if I stick my IT transformation hat on, this picture will be extremely familiar to you by the end of the day, it's the value chain that Gail put up. The way that people run IT is changing significantly. If we look at the planning end of things, so we said the whole strategy process is changing, it's not about just receiving a set of requirements and working out how to spend the money. It's actually co-creating strategy with the business now. Then all of that as well. Actually, there are a huge number of ideas out there. If everyone is now multi-sourced, if there are lots of new startups out there all with good ideas, how do I plug into those as part of the as part of the strategy process? How do I know what good looks like? How do I then take that into the business value creation discussion? So the planning process, the strategy process is changing, but not as much as the delivery process. Now, we all come from a world where pretty much every IT organisation that I have ever come across has people who build things and people who run things and they're very different beasts and they don't talk to each other enough and so on. Actually, increasingly, the distinction between those two is blurring considerably. And if you look at things like DevOps and so on, or if you look at what we're calling two-speed IT, there are very different ways now of delivering things. So what I mean by two-speed IT is the fact that it's traditional waterfall, but there's also now as well. When we talk about agile, I don't just mean agile, the methodology. I mean the sort of set of digital people that come along with their skinny jeans and strange haircuts who sort of do a different sort of IT at a very different sort of pace. And every CIO has to work at how to manage the two of these together, because different models for different sorts of projects are actually required. I've talked about incubation and prototyping. The idea that you could come up with a set of requirements and then work out how to spend a large amount of money on it has changed. You need to actually pilot things. You need to start to innovate, you need to incubate stuff, prototype, work out whether it works, iterate as necessary before you work out when to suspend the big money. And actually knowing within all of that, when you've got something that's going to work and when you can start to commit big spend becomes a really different way of thinking about your whole investment portfolio. On the delivery side, as we've seen from that model on the previous page, it's not so much about I've got my own stuff and I need to run it. It's now all about service integration. It's how do I run other people's stuff? How do I join it all together? The whole area of sourcing is very different. The whole operating model has changed, if you like, from one where years ago I actually had a set of people who built and operated my own IP and I own the people, to one where I started to be multi-sourced, to one where I then started to use other people's software and other people's IP. So all of a sudden I had an IT organization which was really trying to use other people's stuff with other people's people. I then virtualized the whole thing through cloud and I've now got this very complex architecture that I see on the other side. So actually working at how to source that, how to integrate it all and how to manage it all together is a real problem for people. How do I get transparency of that for the business as well? Hans mentioned now the business is more enabled than ever before to go and get its own services. Actually I need to behave as though I'm Amazon or Salesforce. I need to be able to get great transparency to pricing, understand how to manage all of that and understand what I'm paying for from my suppliers as well and work out how I can provide those services to the business and the transparency of the costing underpinning that. Another area here we've talked about security. It's not just about cyber, it's the fact that again if I don't own my architecture and I don't own my people anymore and I probably don't own my customers because they're talking to each other. Okay not just to me anymore, thanks to social. Understanding the whole security profile of what I've got in that very complicated architecture in that complex operating model as well has become really critical. It's the thing I lose my job for if I'm a CIO. But increasingly it's not about having the perfect firewall around something with 17 locks on the front door. It's about understanding what business risk I'm taking, understanding what I do when risk happens because it's bound to at some point and particularly understanding across an extremely complicated ecosystem I've now got where are all the risks. So it's no surprise in a world that is complicated from an architecture point of view where you're changing a whole relationship between business and technology and where you're changing the entire operating model of IT that we see lots of tools popping up all over the place to help people manage this complexity. But the problem we find therefore is that you've actually somehow got to get control of all of this whilst actually still giving the agility that the business wants. It's not acceptable to go and say sorry you can't do that. They came in the business saying I can just go and source this. I can buy this with my credit card. You've got to find a way to be responsive to manage that ability to take advantage of those architecture and operating model trends whilst retaining control and that's where IT for IT starts to come in. You need to be predictable and measured. You need to be controlled. You've got to be able to enable these various different styles of IT as well. So I was talking to one of the very large banks recently and they've been trying to move their entire model, their multi-billion dollar change budget to the new style of IT. That's not the right thing for them to do. That's the right thing probably for about half of their portfolio, probably less than that. They've got to carry on delivering the legacy it's got to work. So managing several styles of IT together, it's not two-speed IT, it's multi-speed IT. Different ways of working but still join them up into recognisable, into an IT function that works where you understand the risk. And what we find is although there are tools all over the place historically those have tended to happen in silos, the silos themselves are changing, those tools don't join up well enough together. But you've got a remarkably complex management problem here. So we're hugely supportive of what's going on in the forum here because actually we just see that this is only going to get more and more complicated. And if we can join this together, that's useful for everyone, it's useful for people like Hans, it's useful for all the clients that we work for.