IT Business Models & The 4 Faces of the CIO
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Transcript of IT Business Models & The 4 Faces of the CIO
[email protected] @aspiringarc
so what business are you
in?
the evolution of the CIO & the changing business of IT
survival & evolution
Agenda: the evolution of the CIO & the changing business of IT
• Discover a new tool • Get a glimpse at the future
Business Modelers: Envision, Discover, Design FACILITATOR & GUIDES: manage the process & explain the tool Have fun doing it!
Draw, scribble, imagine, experiment Everyone participates no-one dominates No invalidation if you have a different idea share it Don’t be afraid Be active & alert
17:30 – Setting the scene 18:00 – Intro (3) 18:03 – Review the agenda (2) 18:05 – Business Model Canvas
Intro & Research (20-25)
GET COFFEE & START WORK 18:35 – Make 2-3 teams (1) 18:36 – Business Model
Workshop (45) 19:21 – Teams playback (15) 19:36 – Q&A (15) 19:51 - CLOSE
what business are you in?
who are your customers?
How do you deliver you sell/deliver
your products & services?
What’s your relationship with your
customer?
what products & services do you ‘sell’?
Who do you pay?
Who pays you?
What do you do?
What do you use?
“If you want to teach people a new way of thinking, don't bother trying to teach them. Instead, give them a tool, the use of which will lead to new ways of thinking.”
― Richard Buckminster Fuller
but first some background
Peter Weill MIT CISR Chair & Snr Research Scientist
Stephanie Woerner MIT CISR Research Scientist
Jeanne Ross MIT CISR Director & Principal Research Scientist
http://cisr.mit.edu/locker/WeillWoernerMISQE2013FutureofCIO.pdf http://cisr.mit.edu/blog/documents/2012/08/16/2012_0801_customer-facingdigitization_woernermcdonaldweill.pdf/
I expect • hi-quality • cost-effective
IT Services
THE BUSINESS
THE INFLUENCERS
e2e digitization experience is everything
revenue ge
neration
shared serv
ices
optimize bi
z process
customer ex
perience
digitize e2e
oversee op
erations
goals
let’s meet the characters
Joe ‘order-taker’
John ‘facilitator’
Tony ‘optimizer’
Angela ‘experience-shaper’
1508 CIOs - 60 Countries
44% 36% 10% 10%
‘Joe’ IT Services (Order Taker) CIO Managing IT Organization INFRA | APPS | PROJECTS Concerns: Cost, Risk, Service levels
44%
Performance Measure Mixed overall performance
Lower return on equity Increase sales from existing products
Increase price competition & impact on profitability
‘The Dinosaur Farmer’
‘John’ Embedded (Facilitator) CIO Business Strategy INFRA | APPS | PROJECTS Concerns: Non-IT focused process optimization, new product/service dev reg. compliance, risk, investment prioritization
36% Performance Measure
Better ROIC
‘Tony’ Enterprise Process (Optimizer) CIO External focus, customer oriented CUSTOMERS | SUPPLIERS | USERS | EMPLOYEES | GOVERNMENT Concerns: Relationship management, alignment
Performance Measure Profitability (net margin %) 10%
‘Angela’ External Customer (Experience-shaper) CIO External focus, customer oriented CUSTOMERS | SUPPLIERS | USERS | EMPLOYEES | GOVERNMENT Concerns: Shaping services, creating experience, vertical integration
Performance Measure Innovation
(sales from new products / 3 years) 10%
Business Model Workshop Who are your customers; what’s your value proposition….
Spotify Business Model Example http://www.businessmodelsinc.com/free-drives-paid-the-business-model-of-spotify/