STKI Summit 2024 Dr Jimmy Schwarzkopf presentation

STKI IT Knowledge Integrators
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STKI.INFO
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Welcome to STKI Summit 2024
Great to see all of you
IN-PERSON
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Agenda Introduction
Building a Generation-Defining IT Department
Mapping Technological Change
Inflection Points
Tipping Points
Strategic Value Creation by CIO Roles
Conclusion
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My 2024 reading list
I recommend the following books
(I most of them)
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My 2024 reading list: page 2
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“The purpose of an organization is to enable ordinary
human beings to do extraordinary things.” Peter Drucker
“As information becomes more plentiful, attention becomes
scarcer. Attention is a prerequisite to clarity.” Herbert Simon
“Organizations that design systems (including products and
services) are constrained to produce designs that are a
copy of the communication patterns within the
organization.” Melvin Conway
"AI is the new electricity. Just as electricity transformed
almost everything 100 years ago, today I actually have a hard
time thinking of an industry that I don't think AI will
transform in the next several years.“ Andrew Ng
"The world is being re-shaped by the convergence of social,
mobile, cloud, big data, community, and other powerful
forces. The convergence of these technologies unlocks an
incredible opportunity dramatically transforming the way
we live and work." Marc Benioff
Quotes from the books that I find important
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Managing Partner of STKI
Involved in:
• IT Strategy
• Innovation
• New Technologies
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Ship of Theseus Greek hero Theseus returns triumphantly
to Athens after he slayed a child-eating
minotaur.
Theseus’s ship was kept in the Athenian
harbor to honor his bravery,
For centuries, maintained by Athenians
through systematic replacement of old
planks with new, stronger planks.
Eventually, all the original planks were
replaced.
Is it still the Ship of
Theseus?
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IT department
‘2025-26’
Just like the Ship of Theseus, the IT department
undergoes continuous changes and updates.
Old systems, software, and hardware are
systematically replaced with new, more
efficient ones.
Does the purpose of the IT department
persist, even as its individual parts are
renewed?
Despite these changes, are the core functions
and objectives of the IT department the
same?
Is the IT department still the same if all its
components have been replaced over time?
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Recent
Cycles in
Israeli IT
Departments
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‫ו‬ ‫ההכנסות‬ ‫את‬ ‫להגדיל‬ ‫יכול‬ ‫אתה‬ ‫חברה‬ ‫כל‬ ‫של‬ ‫הרווחיות‬ ‫את‬ ‫לשפר‬ ‫מנת‬ ‫על‬

‫ההוצאות‬ ‫את‬ ‫לצמצם‬ ‫או‬
.
‫כמנכ‬ ‫אני‬
"
‫ההוצאות‬ ‫פני‬ ‫על‬ ‫ההכנסות‬ ‫בצד‬ ‫לטיפול‬ ‫עדיפות‬ ‫נותן‬ ‫ל‬
‫הבאות‬ ‫מהסיבות‬ ‫וזאת‬
:
•
‫ובמרמר‬ ‫בכעס‬ ‫מלווה‬ ‫צמצום‬ ‫כאשר‬ ‫מוטיבציה‬ ‫של‬ ‫מדבק‬ ‫אפקט‬ ‫יש‬ ‫בהכנסות‬ ‫לשיפור‬
•
‫במציאת‬ ‫מלווה‬ ‫הוא‬ ‫אם‬ ‫במיוחד‬ ‫להתמשך‬ ‫יכול‬ ‫והוא‬ ‫גבול‬ ‫אין‬ ‫בהכנסות‬ ‫לשיפור‬
‫ניתן‬ ‫ולא‬ ‫ממנה‬ ‫לרדת‬ ‫ניתן‬ ‫שלא‬ ‫רצפה‬ ‫יש‬ ‫בהוצאות‬ ‫לצמצום‬ ‫ולעומתו‬ ‫כחול‬ ‫אוקיאנוס‬
‫מוגבל‬ ‫בלתי‬ ‫באופן‬ ‫להמשיכו‬
•
‫תעוזה‬ ‫בו‬ ‫יש‬ ‫בהכנסות‬ ‫השיפור‬
,
‫מקוריות‬
,
‫מתבצע‬ ‫לרוב‬ ‫בהוצאות‬ ‫הצמצום‬ ‫ומנגד‬ ‫מתמדת‬ ‫חשיבה‬
‫טכנוקרטית‬ ‫בצורה‬
•
‫הכנסות‬ ‫של‬ ‫מקביל‬ ‫קיטון‬ ‫גם‬ ‫להתלוות‬ ‫עלול‬ ‫בהוצאות‬ ‫לצמצום‬
.
•
‫כלל‬ ‫ההוצאות‬ ‫בצד‬ ‫לטפל‬ ‫מה‬ ‫שאין‬ ‫אומר‬ ‫זה‬ ‫אין‬ ‫לעיל‬ ‫האמור‬ ‫כל‬ ‫ועם‬
.
‫העדיפות‬ ‫סדרי‬ ‫הגדרת‬ ‫רק‬ ‫זו‬
‫הלב‬ ‫בתשומת‬
‫לוי‬ ‫ניסן‬
‫מנכ‬
"
‫ל‬
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How do we ensure after years
of challenges, pivots and
modifications that we don’t
lose ourselves in the
process?
Our organizations adapt and change
course constantly which can come in
the form of new technologies or
shifting customer expectations.
IT is navigating the seas of change,
and seeking an answer to:
• What comes next?
• How to build a generation-defining
IT department?
• How to leave a lasting legacy?
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1. Proactive & Predictive:
• Traditional: Reacts to problems and requests.
• New: Uses data and AI to anticipate issues before they impact users
and the business..
2. Cloud-Forward:
• Traditional: Focused on on-premise hardware and software.
• New: Embraces cloud solutions (public, private, hybrid) including
cloud-native applications, serverless computing, and cloud storage.
3. Automation-Driven:
• Traditional: Relies heavily on manual processes.
• New: Automates repetitive tasks like software deployment, user
provisioning, and system updates.
4. Customer-Centric:
• Traditional: Views users as just "users.“
• New: Treats employees and customers (equally) with self-service
portals, personalized support, and user-friendly interfaces prioritizing
their needs and experiences.
5. Security-Obsessed:
• Traditional: Focuses on perimeter security.
• New: Adopts a zero-trust approach, assuming no user or device is
inherently trustworthy..
Building a‘new’
Generation-Defining
IT Department
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Building a ‘new’
Generation-Defining
IT Department (2)
6. Data-Driven:
• Traditional: Collects data but may not utilize it effectively.
• New: Leverages data analytics to gain insights into IT
performance, user behavior, and security threats..
7. Agile & Innovative:
• Traditional: Follows rigid processes and waterfall
methodologies.
• New: Embraces agile methodologies and DevOps
practices for faster development and deployment of
applications and services.
8. Business-Aligned:
• Traditional: Operates in a silo, separate from the business.
• New: Acts as a strategic partner to the business,
understanding its goals and objectives and aligning IT
initiatives accordingly.
9. Talent-Focused:
• Traditional: May struggle to attract and retain top talent.
• New: Invests in employee development and creates a
culture of learning, in order to retain skilled IT
professionals
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• CPU (Central Processing Unit): Handles all
logic, calculations, and input/output of the
computer. It is a general-purpose processor.
• GPU (Graphics Processing Unit): Enhances the
graphics interface and runs high-end tasks.
• TPU (Tensor Processing Unit): Specifically
designed for machine learning and neural
network workloads.
• NPU (Neural Processing Unit): Also designed for
AI and machine learning tasks, often found in
mobile devices.
Even PCs are now different :
They have many types of specialized
processors with different purposes
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Inflection
Points
Inflection Point
• Moment of significant change in technology or market trend
Shift in Growth Rate
• Technology gains some acceptance and adoption
Causes of Change
• Technological advancements
• Changes in consumer behavior
• Market dynamics
Impact on Growth Curve
• Direction changes from slow growth to incremental growth
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Tipping
Points
• Moment when technology/product surpasses critical threshold
• Threshold often around 33%
Definition of Tipping Point
• Technology moves from early adopters to mainstream
Market Shift
• Technology becomes widely accepted
• Adoption rate increases significantly
Widespread Acceptance
• Rapid and widespread change in market landscape
• Direction changes from incremental growth to exponential growth
Market Impact
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Mapping
Technological
Change
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Some“new-old”
technologies
• Automation
• AI Agents
• AI coding tools
• powerful AI
Artificial Intelligence
• Virtual Reality (VR)
• Augmented Reality (AR)
Metaverse
• Decentralized Finance (DeFi):
• Non-Fungible Tokens (NFTs)
Blockchain
• Hybrid and Multi-Cloud Environments
• Edge Computing Integration
• AI and Machine Learning Integration
• Serverless Computing
• Quantum Computing Integration
Cloud computing
• Individuals & enterprises
Video conferencing
• Inside and outside the company
Listening Culture
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Open
(available)
Research
Hyperscale
Cloud
Technology
Providers
Artificial
Intelligence and
Synthetic Biology.
it is going to
fundamentally change
everything.
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Artificial Intelligence
(AI)
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The Rise of Machine
Learning & the Deep
Learning Revolution
(2010)
Rapid Advancements in
Generative AI:
Integration of AI into
Everyday Life:
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1. The first wave was predictive AI, This wave enabled
businesses to forecast trends and make data-driven
decisions.
2. The second wave brought us generative AI, which is
the ability to "generate content and allow
conversations with humans."
3. Now, we're entering the third wave, agentic AI, where
AI systems can autonomously execute tasks and
interact with other AI agents
1. Imagine a future where AI agents augment human
capabilities, with humans taking on roles that
coordinate and manage teams of AI agents.
2. This transformation is already making new
positions like AI agent trainers, AI workflow
orchestrators, and AI ethics compliance officers.
The three waves of AI
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Laundry-Folding Robots
Are Finally Here
Physical Intelligence
trains robots on models that combine large
language models (LLMs) with specific task
datasets collected from robots.
October 2024, it unveiled a general-purpose
robot foundation model called pi-zero
that managed to successfully train robots to
unload laundry, bus tables, place food in to-
go containers and assemble cardboard
boxes.
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The New AI Workforce
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AI agents are essentially digital assistants (on steroids)
that can act autonomously to achieve specific goals.
• These AI agents can:
• Understand and interpret complex goals:
• Plan and execute actions:
• Learn and adapt:
• Interact with their environment:
We are witnessing the greatest transformation in history.
Software becomes labor.
It’s the new E=MC2.
Capital buys coffee, engineers, and GPUs.
Out comes code that takes the role of labor.
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AI agent revolution
(agentic AI)
2017 Google,
open sourced
TRANSFORMERS( AI
algorithm that understand
the underlying structure)
Next 5-10 years
will see increased automation of
tasks; personalized AI assistants
integrated in our lives; early
signs of autonomy
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Metaverse
(especially AR)
Jimmy buys Ray-
Ban-Meta Glasses
Maybe in 2-3
years
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Technological Advancements:
• Improved Hardware
• Software Development
• 5G Connectivity.
Increased Accessibility and Affordability:
• Smartphone Penetration
• Lowering Costs
Growing Content and Applications:
• Gaming and Entertainment: AR games like Pokémon Go
• Practical Applications:
• Retail: Virtual try-on experiences, interactive product
demonstrations.
• Healthcare: Surgical visualization, patient education,
remote diagnostics.
• Education: Interactive learning experiences, 3D
visualizations.
• Manufacturing: Assembly instructions, equipment
maintenance, remote collaboration.
Factors Driving AR Towards
the Tipping Point:
Swarovski Optik’s AX Visio binoculars
use image-recognition algorithms
and GPS data to discern the species
of whatever bird you point them at.
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Blockchain
The Breakthrough:
Bitcoin
will likely be a gradual
process, with different
industries adopting it
at varying paces
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Challenges to Overcome
Before Reaching the Tipping
Challenges:
Scalability: Some blockchain networks still face
challenges in handling a large number of transactions.
Interoperability: Different blockchain platforms need to
be able to communicate and interact seamlessly.
Regulation: Clear and consistent regulations are needed
to foster innovation and protect users.
Complexity: Blockchain technology can be complex to
understand and implement, requiring specialized skills.
Public Perception: The association of blockchain with
volatile cryptocurrencies can create uncertainty and
skepticism.
Good Signs :
Increased Investment: VC investment is surging.
Industry Collaborations: Consortiums and partnerships
are forming to develop industry-specific solutions.
Real-World Applications: Projects in various sectors,
from supply chain to healthcare to voting systems.
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Cloud Computing
• NIMBUS
• Hyperscale data centers in
Israel (international & local)
• Level 5 SaaS Marketplace
• Over 33% of companies increased
scope and volume of cloud initiatives
• Surge in government IT cloud
commitment over the past two years
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Cloud Computing
Navigating the Future:
• Strategic Planning: Developing a strategy aligned with
business goals.
• Security-First Approach: Prioritizing security
• Cost Optimization: Managing and optimizing costs.
• Talent Development: Investing in cloud skills and expertise.
• Staying Informed: Keeping up with the latest trends and best
practices
Promising Trends:
• Hybrid and Multi-Cloud Dominance
• Serverless Computing Takes Center Stage:
• Edge Computing Expands:
• AI and Machine Learning Integration:
Challenges and Concerns:
• Security Concerns:
• Data Breaches
• Shared Responsibility Model
• Vendor Lock-in
• Cost Management:
• Unpredictable Costs
• Hidden Costs
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Video conferencing
Jimmy uses
FACETIME while
driving 2011
Zoom during
Covid
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Video Conferencing Futures
AI-Powered Features:
• transcribe meetings in real-time,
• provide summaries
• analyze sentiment to gauge participant engagement.
AI assistants that
• schedule meetings,
• take notes,
• generate action items.
Interactive Whiteboards and Shared Workspaces:
• seamless brainstorming,
• design thinking,
• co-creation in virtual environments.
Integration with Other Platforms and Devices
• integrated with competing video conferencing tools
• Integrated with other productivity suites
Real-time Translation and Captioning:.
• accurate and instantaneous translation features
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Listening Culture
Emphasis on
Emotional
Intelligence
Not yet but
hoping that we
are moving in the
right direction
shift where truly listening to others
becomes the norm, not the exception.
‫הקשבה‬ ‫מול‬ ‫שמיעה‬
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Driving Forces Towards
a Listening Culture
Tipping Point
Workplace Dynamics:
• Employee Engagement: creating a listening culture leads to higher
employee engagement, productivity, and retention.
• Leadership Styles: new generation leaders prioritize listening and
feedback.
• Remote Work: highlighted the importance of clear communication
and active listening.
Technological Influences:
• Social Media: exposes people to diverse perspectives and encourages
dialogue (when used mindfully).
• Communication Tools: Platforms like Slack and Microsoft Teams
promote active listening, such as threaded conversations and reaction
emojis.
• AI-Powered Transcription and Analysis: Tools that transcribe and
analyze conversations identify patterns and improve communication
skills.
Challenges to Overcome:
• Information Overload
• Short Attention Spans
• Ego and Bias
• Lack of Training:
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No longer just the "chief information
officer”, no longer just about “keeping the
lights on in the server room" the roles of
the CIO should be broken up into four
different“roles”:
• Orchestrator
• Builder
• Protector
• Operator
This shift reflects the evolving demands of
the digital age, where technology is no
longer just a support function but a core
driver of business strategy and innovation.
The role of the CIO is
undergoing a dramatic
transformation.
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Strategic Value
Creation by
different CIO Roles
Orchestrator
Translate business strategy into
a technology roadmap.
Leads digital and AI initiatives
across IT and business
Accountable for value creation
Builder
Creates new digital- and AI-first
businesses
Generates revenue
Protector
Owns revenue protection
Owns technical debt repayment
Focuses on cybersecurity and
business resiliency
Operator
Integrates technology into core
business functions
Runs and maintains enterprise
systems
Enhances operational efficiency
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CIOs act as strategic partners to other business
units, collaborating to identify opportunities and
solve problems using technology.
Aligning the tribes of the digital economy when it
comes to allocating IT resources for maximum
business value.
CIOs are evolving budget planning from an annual
cycle to a quarterly one, allowing for more fluidity to
move NIS depending on new priorities or changes to
the business.
IT Budget governance has labeled and studied as
“deservingness”(who gets what and why )
“Organizations get the technology they deserve.”
IT exec mediate disputes between:
• Business strategy groups and IT teams
• Application developers and operations people
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Tech leadership has evolved from focusing
solely on core technology to harnessing
digital and AI products
The link between new tech and building
business value … examples :
• Personalized Content Recommendations:
• AI-Powered Personalized Learning Platforms:
• Chatbots and Virtual Assistants:
• Interactive Virtual Assistants for Customer
Service:
• AI-Driven Content Creation
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Some of the areas the protector is involved:
• Data Protection:
• Network Security:
• Endpoint Security:
• Application Security:
• Cloud Security:
• User Awareness and Training:
• Incident Response:
• Physical Security:
• Maintenance
• Proactive and Reactive Maintenance
• Regular Maintenance
• Unexpected Failures
• Technical Debt (old and new)
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Nightmares of
my house in
trouble
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we built our house with all the
“innovations”
that we could afford*
• american house technology
• (wooden house, shingles, etc),
• every room
• (has a coaxial TV cable, ethernet cable
and phone connector);
• many other systems not relevant
today
• (satellite TV, window alarm sensors,
septic tank, etc)
* problems with mortgage
Most of those innovations are either
disconnected or “working legacies”or
“technical debt”today
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My neighbor’s Automated House 2024
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Before we automate, we must make
sure all systems are
“maintained, fixed and ready“
• Windows
• Doors
• Paint (outside & inside)
• Foundation
• Security (alarm + cameras)
• Kitchen Appliances
• GAS (cooking)
• HVAC (Heating, Ventilation, and Air Conditioning)
• Plumbing
• Appliances (TV, etc)
• Electricity (+ generator)
• Internet
• Roofing
• Insulation
• Sewerage
• Hot Water and Solar Panels:
• etc
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What is your Maintenance KPIs?
measure how well you are doing at achieving maintenance
goals (reducing downtime, building a preventive maintenance
program, improving safety, etc.)
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• Age of most senior manpower employees (that hold
important application software knowledge) is over 65
• Outdated infrastructure (software/ hardware)
• Outdated software (several versions behind latest vendor
version)
• ERP and/or CRM
• Outdated data management tools (ETL, DW, BI)
• Core systems based on outdated technologies (not in itself
broken systems) but are critical to day-to-day operations
• Inability to integrate applications or processes (in-house or
partners)
• Missing documentation
• Un-commented configuration
• Un-documented code changes
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How To FIX NEW
Technical Debt
“Make technical debt part of every
conversation with your developers
and maintenance managers.”
Be an organizational advocate for
maintenance
“Encourage your teams to track
technical debt in the same place
they track other development items.”
Technical Debt is everything that
stops us from developing software
quickly.
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How To FIX NEW
Technical Debt
“Make technical debt part of every
conversation with your developers
and maintenance managers.”
Be an organizational advocate for
maintenance
“Encourage your teams to track
technical debt in the same place
they track other development items.”
Technical Debt is everything that
stops us from developing software
quickly.
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STKI Summit 2024 Dr Jimmy Schwarzkopf presentation

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