CIO Relevance in a Digital World

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CIO Relevance in the Digital Era

Michael KrigsmanFounder, cxotalk.com

@[email protected]

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Presentation Notes

Photo by Michael Krigsman

Relevance

Challenges

Navigating the Path

Opportunities

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Relevance:Today’s IT Challenge

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Most ITOrganizations Believe they

Serve Business Needs

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Photo from iStockphoto

DoBusiness

Partners Agree?

No.

52%

20%

CIO / CTO Non-Technology

CIO has Strong Impact on Technology Innovation and

Creativity?

RelevanceGap

5Michael Krigsman / cxotalk.com

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http://www.techproresearch.com/article/research-33-report-cio-role-is-losing-relevance/ http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

http://cxotalk.com/

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Does the CIO Impact Innovation?

CIO / CTO: 52%

Others: 20%

Strong Impact

Michael Krigsman / cxotalk.com

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Presentation Notes

http://www.techproresearch.com/article/research-33-report-cio-role-is-losing-relevance/ http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

http://cxotalk.com/

/ cxotalk.com 7

Does the CIO Accelerate Success?

Cust service: 21%

Product dev: 22%

Sales: 26%

R&D: 31%

Marketing: 49%

IT: 57%

“Yes” Responses

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https://www.forrester.com/Top+Technologies+For+Your+BT+Agenda/fulltext/-/E-RES115732 http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

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How Business Decision Makers View IT

Collaborate with business: 43%

Efficient support: 40%

Deliver projects on time: 39%

IT Capabilities


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https://www.forrester.com/Forrsights+Business+DecisionMakers+Survey+Q4+2012/-/E-SUS1851 http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

http://cxotalk.com/

/ cxotak.com 9

CFO: Does IT Benefit Us?

Agree: 28%

CFO Routinely Realizes IT Benefit?


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http://www.financialexecutives.org/KenticoCMS/Research/FERF-Files/Survey-Analysis-CFOs-Top-Imperatives.aspx http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

http://cxotalk.com/

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CFO: Is IT a Competitive Advantage?

Primary competitive advantage: 10%

CFO View of IT


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http://www.financialexecutives.org/KenticoCMS/Research/FERF-Files/Survey-Analysis-CFOs-Top-Imperatives.aspx http://www.zdnet.com/article/cios-make-progress-but-still-get-no-respect/

http://cxotalk.com/

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Digital Transformation:

The Great Disruption

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Technology sophistication

Social media

Universal connectivity

Powerful devices

Digital Proliferation


http://cxotalk.com/

TechnologyCloud

Mobile

Social

Data / Analytics

Internet of things (IoT)

Blockchain

People and ProcessShifting technology budgets (business-led IT)

Pervasive technology outside IT

Consumerization of IT

Changing consumer expectations

Demographic shifts (Millennials)

Technology, People, Process


http://cxotalk.com/

Technology Budgets Outside IT


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http://www.pwc.com/gx/en/services/advisory/2015-global-digital-iq-survey/60-second-overview.html

http://cxotalk.com/

79 percent: Have own technology budget

27 percent of tech spend: Outside of IT

43 percent: Technology development is too slow

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Marketing is a Perfect Example


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http://www.zdnet.com/article/deloitte-digital-chief-marketing-officers-invading-it-turf/ --- Deloitte Digital

http://cxotalk.com/

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http://chiefmartec.com/2015/01/marketing-technology-landscape-supergraphic-2015/

Digital Maturity by Industry


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http://www.pwc.com/gx/en/services/advisory/2015-global-digital-iq-survey/60-second-overview.htmls

http://cxotalk.com/

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Conflicting Expectations of IT

EfficiencyReduce Costs

Stability / security / speed

Business benefitUser experience

Maintain Infrastructure

Drive Co-Innovation


http://cxotalk.com/

Multiple Tensions

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http://www.avanade.com/en/innovative-approach/research-and-insights/it-without-boundaries

Digital Transformation:

A Great Opportunity

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Capturing Relevance

Support Strategic Business Imperatives:Increase customer satisfactionAgility and responsivenessOther organizational imperatives


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http://cxotalk.com/

Customer Experience is Central

Systems of Record (Transactions)

ERPCRM

FinanceInventory

Manufacturing

Systems of Engagement (Experience)User-Centric

Customer FocusedCollaborative, Interactive

Cloud, Social, MobilePersonalized Data

Predictive Analytics22Michael Krigsman / cxotalk.com

http://cxotalk.com/

“I’m not a transaction.”


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http://cxotalk.com/

Larry AugustinCEO

“Engagement is a measureof customer satisfaction.”


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https://www.cxotalk.com/crm-empowered-consumer-larry-augustin-ceo-sugarcrm

http://cxotalk.com/

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FinTech: Improving User Experience


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http://insights.venturescanner.com/venture-scanner-sector-maps/

http://cxotalk.com/

The CIO Opportunity

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AddressBusiness Imperatives


http://cxotalk.com/

1. How well do you know where change is occurring?2. Do you know which customer journeys matter?3. Are your teams collaborating across functions?4. Do you have a disciplined ‘test and learn’ approach?5. Are your budgets tied to progress?6. Do you have mechanisms to challenge ideas?7. Are your people empowered to act?8. Is your IT operating at two speeds?9. Are you coordinating a portfolio of initiatives?

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McKinsey: Nine Digital Business Questions


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http://www.mckinsey.com/insights/organization/nine_questions_to_help_you_get_your_digital_transformation_right

http://cxotalk.com/

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Revenue

Profit

Why Digital?


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http://www.mckinsey.com/Insights/Business_Technology/Cracking_the_digital_code

http://cxotalk.com/

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Growth

Competitive Advantage

Why Digital?


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http://www.mckinsey.com/insights/business_technology/the_digital_tipping_point_mckinsey_global_survey_results

http://cxotalk.com/

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CEO: 34%

CIO: 27%

CFO: 14%

CDO: 14%

Who Leads Digital?

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http://www.pwc.com/gx/en/services/advisory/2015-global-digital-iq-survey/60-second-overview.htmls

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CIO: 69%

CEO: 61%

CMO: 61%

CDO: 30%

CIO is a Natural Digital Leader


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http://www.mckinsey.com/insights/business_technology/the_digital_tipping_point_mckinsey_global_survey_results

http://cxotalk.com/

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Vision

Capability

Culture

Technology

Measurement

Digital Strategy


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http://blogs.forrester.com/martin_gill/14-11-07-digital_business_transformation_will_gain_critical_mass_in_2015

http://cxotalk.com/

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Customer Experience

Product Innovation

Marketing and Sales

Distribution

Governance

Across the Enterprise


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http://www.mckinsey.com/insights/business_technology/finding_your_digital_sweet_spot

http://cxotalk.com/

Gartner: Third Era of Enterprise IT

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Are You Ready for Digital?


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http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_execsum2015.pdf

http://cxotalk.com/

Navigatingthe Path

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IT Value andDigital Mindset

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IT Value in the Digital Era

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Operational Excellence

Business Collaboration

Strategic Contribution Co-Innovation

Lower Value Higher Value

Historical Focus:Infrastructure

Modern Focus:Business Outcomes


http://cxotalk.com/

Traditional Digital

Strategy Efficiency Innovation

Culture Hierarchy Collaboration

Talent Low cost High skill

Technology Legacy Cloud, mobile, apps

User experience “Who cares?” Mission critical

IT Philosophy Default to “No” Default to “Yes”

Project management Waterfall Iterative (agile)

Business model Service & support Relationship & partner

Digital IT Mindset


http://cxotalk.com/

Examples from Innovative CIOs

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Intel: Path to Strategic IT

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Kim Stevenson CIO, Intel

OperationalExcellence Collaboration Strategic

PartnershipMichael Krigsman / cxotalk.com

CXOTalk video: http://cxo.news/1OcJRDo

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http://www.intel.com/content/dam/www/public/us/en/documents/best-practices/cio-kim-stevenson-intel-it-mid-year-performance-report-2013-brief https://www.cxotalk.com/intel-it-delivering-business-value

http://cxotalk.com/

http://cxo.news/1OcJRDo

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Equinix: Four Attributes of High-Performing IT

Time, Budget, ResultsOperational

Scale and Improve ProcessesTransformational

Evolve, Adapt, ExperimentInnovation

Attract Great PeopleOrganizational

Brian LillieCIO, Equinix


CXOTalk video: http://cxo.news/1OcJxnT

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https://www.cxotalk.com/cio-innovation-modern-data-center-brian-lillie-cio-equinix

http://cxotalk.com/

http://cxo.news/1OcJxnT

1.Earn credibility 2.Go deep in the business3.Track technology trends4.Innovate to serve the business

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Kroger CIO: Four Steps to IT Relevance

Chris HjelmCIO, Kroger


CXOTalk video: http://cxo.news/1OcK7SG

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https://www.cxotalk.com/chris-hjelm-evp-cio-kroger-digital-transformation-large-scale-retail

http://cxotalk.com/

http://cxo.news/1OcK7SG

1.Predictable and visible2.Active business engagement3.Build business partnerships4.Offer strategic advice

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Red Hat CIO: Engage and Partner

Lee CongdonCIO, Red Hat


CXOTalk video: http://cxo.news/1OcKGMn

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http://www.zdnet.com/article/cio-leadership-seminar-advice-from-red-hat/ https://www.cxotalk.com/lee-congdon-cio-red-hat-transformation-digital-cio

http://cxotalk.com/

http://cxo.news/1OcKGMn

Kim StevensonCIO, Intel

/ cxotalk.com 44

“There are no IT projects.

They are all businessprojects.”

CXOTalk video: http://cxo.news/1OcKRHD

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https://www.cxotalk.com/kim-stevenson-cio-intel-0

http://cxo.news/1OcKRHD

CIO Opportunities

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Go BeyondTechnology

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Focus on Business

Talk with business counterpartsImprove customer satisfactionIncrease agility and responsivenessMove to the cloud (capacity and speed)Goal: Become a trusted advisor


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http://cxotalk.com/

Support User-Led Technology

SecurityData integrationGovernanceContracts and lowering costsStrategic use of technology


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http://www.zdnet.com/article/deloitte-digital-chief-marketing-officers-invading-it-turf/

http://cxotalk.com/

Adaptand Evolve

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Impact of digital and cloud:Orchestrate multi-vendor delivery chainsCross-silo information flowsTwo-speed ITDevOps skillsIterative projectsShorter projectsDev skills replace traditional IT skills

IT Must Evolve


http://cxotalk.com/

Business functional leadEnterprise architectData scientistCustomer experience expertProject managementChange managementIT account management

Digital IT Roles


http://cxotalk.com/

Engage with Colleagues

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Take Action

Tell the Story

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ABC: Always Be Communicating

Deliver Outcomes


http://cxotalk.com/

IT Organization:Sophisticated understanding of business functionsOrchestrate rather than control

Business Groups:Want and request IT involvementRespect IT constraints

Signs of True Partnership


http://cxotalk.com/

3Strategic

Partnership

2Active

Engagement

1OperationalExcellence

Path to Relevance

4Ongoing

Co-Innovation

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CIO Relevance in the Digital Era

Michael KrigsmanFounder, cxotalk.com

@[email protected]

Presenter

Presentation Notes


CIO Relevance in a Digital World

Technology

Transcript of CIO Relevance in a Digital World