Welcome!

Java IoT Authors: Liz McMillan, Elizabeth White, Sematext Blog, Richard Hale, Kevin Jackson

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, Release Management , Recurring Revenue

@CloudExpo: Article

Know Your Road Map for IT Maturity in the Age of Cloud Computing

Cloud computing has created two major sets of expectations, which are worth a critical look

Are you suffering from double vision in your IT? As odd as it sounds, this is a common occurrence. Line-of-business (LOB) stakeholders often use a different set of criteria to measure IT than IT uses to measure itself. This can lead to a kind of "double vision"that can hurt IT prospects. A cloud-centric IT maturity model is a useful tool for evaluating present IT capabilities and planning future growth. It is increasingly being used to establish present and future success criteria for IT in a common language understood by all parties. In this article, we will discuss three essential dimensions of IT maturity and how they can be applied to help IT decision makers achieve their goals.

The Double Vision
Cloud computing has created two major sets of expectations, which are worth a critical look:

  1. IT-centric View of Cloud: Historically, many CIOs and IT professionals, perhaps led by the traditional capability-based IT maturity models suggested by IT-focused analyst firms, have believed that managing and improving IT infrastructure, costs, agility, IT service quality, etc., are the primary measures of IT success. When cloud technology became available, they started expecting cloud to be a way to accelerate the achievement of these goals. But this may be a myopic view of how cloud technology will impact the enterprise. We call this the "IT-centric view."
  2. Business-centric View of Cloud: In contrast, business stakeholders, such as LOB owners, and business CXOs (e.g., CEO, CFO, CSO, COO), have desired solutions that improve business flexibility and speed, reduce business operating costs and create better business differentiation. Such solutions may include management, automation and optimization of business processes, services, activities, transactions, and end-user experiences, examples of which are shown in the Business Value Stack. When cloud technology became available, these business stakeholders started expecting cloud to be a way to deliver highly innovative, flexible, competitive and cost effective business solutions that could be leveraged by both internal business users as well as by enterprise end customers and partners creating significant business advantages for the enterprise. In addition, business stakeholders expected IT to directly or indirectly supply these business-centric cloud-based solutions to help them attain the desired business benefits. In the business stakeholders' view, IT success should be measured in terms of its ability to directly and readily address these business improvements. For them, improvements to IT itself are neither enough nor interesting. We call this the "business-centric view."

Based on the above, we can conclude the following key points:

  • IT and business owners have different views and expectations of cloud technologies.
  • Cloud is expected to transform both IT and business, and IT is expected to play a major role.
  • Business stakeholders use a different set of criteria to measure IT than IT uses to measure itself. Cloud related expectations may amplify this difference.
  • Cloud is changing the traditional role of IT, and its success measures.

Even though both IT-centric and business-centric views of IT are acceptable in their own ways, they can cause double vision for IT. If this issue is not resolved it can lead to conflicts and confusion with respect to IT's roles, goals, strategies and priorities, which can potentially lead to IT failure.

This double vision can be resolved if IT can: clearly see the business-centric view described above; fully understand the value it needs to deliver to the business; recognize the role it needs to play; and use the success measures used by business stakeholders.

Need for a New IT Maturity Model
A new IT maturity model is needed to help IT reconcile and resolve the double vision, and to guide both IT and business organizations through cloud-led transformations and beyond.

To address these needs, we have identified the following major requirements for this new model:

  1. It must be based on the value IT delivers to the business (and not on internal IT capabilities).
  2. It must focus on the type and maturity of solutions IT supplies to the business (as opposed to maturity levels of IT's own tools, people, processes or projects).
  3. This model must fully take into account the impacts of modern technologies, like cloud computing, that are driving the transformations of IT and business organizations across industries.

A New IT Maturity Model (Value-based)


This model consists of three categories, or "maturity dimensions," with the following key aspects:

  • How the IT organization is viewed by the business (IT's own view may differ)
  • Business value of IT, as perceived by the business stakeholders
  • Type of solutions IT is expected to supply to the business
  • Examples of key solution areas

Using This Model
An IT organization is considered mature in a specific dimension when it becomes a trusted supplier of solutions required in that dimension; they may also achieve maturity in more than one dimension at any point in time.

A key difference between a capability-based model and the value-based model is that some IT organizations may not fit under any of the three dimensions in the value-based model. This situation arises when according to business stakeholders IT is not providing effective solutions. This highlights a key advantage of the value-based model as it helps IT leaders recognize and proactively address circumstances where business leaders may be losing confidence in IT. In addition, it enables IT to more effectively stay apprised of business leaders' needs, resulting in a win-win for both groups.

The latest version of this maturity model and other supplementary content is available here.

The Three Dimensions of IT
Infrastructure-centric IT

These IT organizations are expected to supply effective infrastructure-centric solutions to business stakeholders, often delivered in the form of a cloud with Infrastructure-as-a-Service (IaaS), and/or as virtualized datacenters. These solutions alone support business improvements indirectly. They are rarely capable of directly addressing improvements and automations across business applications, processes, services, transactions, activities or end-user experiences. This is why business stakeholders frequently rate the business value of an infrastructure-centric IT organization fairly low.

Application-centric IT
These IT organizations are expected to fully understand business-centric needs and usage of business applications, and supply effective platform and application automation solutions. These solutions typically enable the management, automation and optimization of business applications, including packaged apps, custom apps, composite apps, highly modular apps, cloud-only apps, or special purpose apps such as mobile apps, Big Data apps, and social apps. To be fully effective, these solutions may also require IT to drive appropriate levels of integration, customization, configuration or personalization. These solutions are typically delivered through various models, such as private, public, hybrid or community clouds with Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), or with application component-based services such as Middleware, Database, Testing or other such services offered in the XaaS model. Since almost all internal and external business users of an enterprise directly or indirectly use business applications, the business value of application-centric IT is generally rated to be at the medium level.

Business-centric IT
These IT organizations fully understand short and long-term business challenges and are expected to supply effective business improvement, automation and optimization solutions, and help drive business innovations, business differentiation and competitive advantages. Many of these solutions are capable of fully leveraging the most appropriate combination of technologies that are best for the business problem they are solving. Examples of such technologies include business process management, business activity management, business transaction management, business intelligence, business analytics, business-centric collaboration, mobile or social networking technologies, and the right set of delivery models including private, public, hybrid or community clouds. These business-centric solutions, typically created through collaboration between IT and business organizations, are designed to directly address improvement, management, automation and optimization of business processes, services, transactions, activities, etc. This is why the business-centric IT organizations are awarded the highest level of business value.

Key Points to Note About This Model
Model is three-dimensional

Each dimension represents a specific type of value, and a corresponding set of solutions. Although the solutions across all three dimensions are interrelated, the three dimensions themselves are neither sequential, nor incremental, nor dependent on each other. Each dimension independently reflects IT maturity within that specific value area, and the model does not imply a roadmap for transitioning from one dimension to another.

Value-based approach
In contrast to traditional "capability"-based models, this is a "value"-based model. This model focuses on the external value of the solutions that IT supplies to the business stakeholders, as opposed to traditional models that primarily focus on IT's operational capabilities (capability maturity) with respect to IT's own internal tools, technologies, processes, people and projects.

In this value-based approach, the value of IT is determined directly by the business stakeholders based on the effectiveness of solutions IT provides to the business. This is called the "business value of IT".

Solution-centric approach
This model is constructed to explicitly focus on the solution-related aspects of IT. In each dimension, IT is expected, and required, to supply a very specific and distinct set of solutions required in that dimension. It is assumed that IT is capable of, and effectively uses, all internal IT tools, technologies, people and processes, as needed for that specific dimension. But these IT capabilities are not explicitly referenced in the model because they are not part of the value-based or solution-centric success measures of IT.

Model is time-based
At any given time, an IT organization may have different levels of maturity in each dimension. A 3D IT maturity map can be created by independently plotting the maturity level of an IT organization in each of the three dimensions. IT maturity levels of an IT organization or its inclusion in a specific dimension may change over time as organizations transform, solutions change or value measures change.

Focus is on business and business stakeholders
In each dimension, IT is expected to supply business-centric solutions that provide significant value to business stakeholders - which include business CXOs, line-of-business owners (VP Sales, VP Marketing, VP HR, VP Finance, VP Mfg, VP Support, etc.), internal business operations staff, and end customers and partners.

Success measure is the business value of IT
In this model, IT's level of success, and IT's level of maturity within a dimension, are measured only in terms of the of value of the solutions that IT supplies to the business, i.e., the business value of IT. It is foreseeable that IT may have its own view regarding the business value of IT, but only the value receiver, i.e., the business stakeholders, can (and should) assess the business value of IT. Internal IT maturity aspects related to IT's own internal use of IT technologies, people and processes are neither weighted nor factored in the success measure. Tying the IT success to only a single external measure (i.e., the business value of IT) removes the possibility of double vision.

IT is in charge, but solutions can come from any source
In each dimension, IT is expected to understand and act in accordance with the business objectives, requirements and priorities that are specifically applicable to that dimension. Then, they can identify and implement the most effective structure and delivery models for the required solutions - whether they are built internally by the IT organizations, or acquired from external vendors, built through outsourcing to third parties, or acquired from external service providers, like public clouds, or developed directly by the business units themselves, or through any combination of these means and delivery models such as private, public, hybrid or community clouds, or physical and/or virtual and/or hosted, and/or on-demand, and/or outsourced datacenters.

IT Maturity is Pre-Requisite for Cloud Maturity
A business-centric IT organization is in the best position to deliver a complete and mature cloud solution with high-business value. The following figure relates the three value-based dimensions of the IT maturity model to the three major types of clouds. Additional information on Cloud Maturity is available here.

Conclusion and Recommendation
This value-based maturity model of IT can be a very important tool to guide CIOs and business CXOs if their goal is to increase the strategic value of IT within the enterprise and across enterprise customers and partners.

CIOs should be asking: To what extent does your IT organization focus on improving business value of IT as opposed to improving IT's own tools, processes, people and projects? Do your business stakeholders fully trust and rely on IT for highly effective application-centric and business-centric solutions? Are you regularly polling your business stakeholders?

Business CXO, or a LOB owner, should ask the following questions: What business value does your IT organization actually deliver? What solutions provided by your IT organization deliver high business value? Have you clearly communicated all these to IT?

This value-based IT maturity model can be a framework for such discussions.

This article introduced the new value-based IT maturity model. Information on how to put this model to work and other related content is available here.


The views expressed in this article are those of Jay Parekh and do not necessarily reflect the views of Oracle or any previous employer.

More Stories By Jay Parekh

Jay Parekh is currently Vice President and Chief Strategy Officer at Oracle responsible for the overall strategy and architecture of Oracle’s enterprise management solutions including cloud management, data center management, application management, support and service management, and business value management. Prior to Oracle, he was Chief Strategy Officer at BMC. Jay holds Masters in Computer Science from University of Michigan. Additional background on Jay can be found at: http://www.linkedin.com/in/jayparekh

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.