The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe
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The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe

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How can CIOs and the C-Suite reshape service delivery and get out ahead of the rapid pace of technology change? ...

How can CIOs and the C-Suite reshape service delivery and get out ahead of the rapid pace of technology change?

I explored the issues and strategies of grappling -- in scale -- with digital engagement, social media, smart mobility, big data, and consumerization in my CIO Pathway keynote at the ASAE @TechConf at the Washington Convention Center on December 4th, 2013.

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The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe Presentation Transcript

  • The New CIO Mandate Business Leadership in an Era of Disruptive Tech
  • Introduction Dion Hinchcliffe • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • ebizQ’s Next-Generation Enterprises http://www.ebizq.net/blogs/enterprise • •• • • Chief Strategy Officer http://dachisgroup.com mailto:dion.hinchcliffe@dachisgroup.com : @dhinchcliffe Spring 2012 ® 2013 Dachis Group 2
  • What will IT look like at the end of this decade? What should it achieve? ® 2013 Dachis Group 3
  • Dachis Group We Live In Era of Change 2013 2020 Lifespan of S&P 500 Company ~15 years ~9 years Portion of Digital Natives in Workforce 35% 75% Speed at which data in world doubles ~2 years 3 months Core Focus of IT Systems of record Systems of engagement Percentage of IT under CIO control 66% 10% (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 4
  • Dachis Group The way we engage is changing Usage delta on common workplace communications tech (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 5
  • Dachis Group A generation of technology is shifting... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 6
  • Dachis Group A perfect storm, happening almost all at once (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 7
  • Dachis Group From the outside, disruption has arrived (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group Technology has led to an era of unprecedented productivity (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 9
  • Dachis Group But is this coming from CIO budgets? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 10
  • Dachis Group Is IT leading innovation today? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 11
  • Dachis Group Our Service Delivery Models Aren’t Keeping Up (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 12
  • Dachis Group Yet 60% of CIOs believe they should be driving growth and productivity. Source: Deloitte Survey, 2011 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 13
  • Dachis Group The CIO Role Is Under Pressure in the C-Suite Data Point: By 2017, most CMOs will spend more on technology than the CIO (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 14
  • Dachis Group Partly Because There’s Too Much To Do Now Key Point: This is a minimum view of digital strategy today (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 15
  • Dachis Group And the CIO’s sub-roles are conflicting business continuity business innovation Source: Ray Wang, Constellation (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 16
  • Dachis Group The Backdrop: Digital Priorities of Business Leaders for 2013 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 17
  • Dachis Group But technology change is happening faster than ever before Tablet The tablet is the fastest adopted mainstream technology in history (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 18
  • Dachis Group Another Way of Looking At This World Workers IT (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. (Not To Scale) 19
  • Dachis Group New Digital Engagement Channels Are Now The Focus And where the value is... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 20
  • Dachis Group The channel shift has been global From: Social Business By Design, 2012 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 1.3 billon people 21
  • Dachis Group Yet most businesses are still immature with digital Maturing Competent Webinars online video big data direct mail P2P video social media gamification cloud mobile apps Immature (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • CIOs (and CMOs) Must Put All The New Pieces Together Using All Touchpoints To Engage Today’s Stakeholders in Scale interact research & learn Mobile join awareness Social participate Web Print In-Person learn get help traditional media social media co-support virtuous cycle get a recommendation The Engaged Constituent Journey advocate recommend
  • Dachis Group Is all this change worth it? Life Expectancy of S&P 500 Company Human Population Growth (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. Pace of Technology Change
  • Dachis Group The future: The fast co-evolution of tech & business • Technology makes all new • • • • • things possible Society and business adopt the new tech... Driving new aspirations, expectations, and innovations... Which creates new technologies... Today: Cycles in years and months 2020: Weeks and days business technology (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 25
  • Dachis Group Key Leadership Finding • CIOs can use • • - differentiation on the leading edge of tech for disruptive innovation Reinvent the business for the unique strengths and characteristics of new digital channels Lead the business in digital transformation Remember, technology is a force multiplier It separates the leaders and the laggards (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 26
  • Dachis Group Driving systemic changes in business and IT (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 27
  • Dachis Group A New CIO Mandate Then • • • • • - Act like an owner of the business Lead the business from the front Reinvent the business for next-gen digital Do not (just) literally translate the old business, or even old digital, to new digital channels Use the intrinsic powers of the latest digital channels (social, mobile, etc.) to transform business models Create new and highly engaging digital workplace and customer experiences Enable emergent, decentralized tech change in the organization Don’t constrain IT, fundamentally empower Everyone is now in the IT department Corollary: You have many new resources to help you (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 28
  • Dachis Group How Emergent IT Might Look (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 29
  • The Near Future of Business & Tech ® 2012 Dachis Group 30
  • Dachis Group The Types of Business Change Today open APIs new types of devices Technological smart mobility social media app stores comfort with self-service Cultural Structural expectations of job security (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. wearable tech predilection for sharing tech savviness desire for work flexibility networks of networks virtualization of workforce social media communities peer production Process new UXs big data non-hierarchical management user generated content community management social business processes crowdsourcing 31
  • Dachis Group We have to design IT for tomorrow’s worker Source: Cengage (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 32
  • Dachis Group As we move to community-led workplaces... • Story of Valve: A major company that is entirely non- hierarchical and self-organized • Story of Intuit: A company that used mass peer production with its customers to create breakthrough customer care See case study in Social Business By Design (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 33
  • Dachis Group Workforce engagement is the challenge The CIO opportunity: In most companies, the majority of employees are not well engaged (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 34
  • Dachis Group Yet the benefits of better engagement could not be more clear... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 35
  • Dachis Group The management view of engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 36
  • Dachis Group A physical view of the future engaged workplace ...designing the workplace experience around personas (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 37
  • Dachis Group The case for building more engaging workplaces Source: AON Only in North America is engagement declining (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 38
  • Dachis Group So perhaps the most significant change... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 39
  • Dachis Group Mobility is the future of service delivery Smart mobile out-shipped PCs in 2011. Tablets alone will outsell PCs this year. (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 40
  • Dachis Group So mobile is where engagement will happen • Smart mobile devices • • • • outshipped PCs in early 2011 Tablets are expected to on par with PCs this year Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs Global mobile data going geometric is going to be the largest challenge to growth and use App stores are creating all new conduits between IT suppliers and workers (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 41
  • Dachis Group Mobile Internet Ramped Up Faster Than Desktop Internet by 10x Source: Mary Meeker, Morgan Stanley (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group But Channel Fragmentation Is Now The Norm + 400 social networks with over 1 million users = aggregate audience of about 1,400 million 2 billion mobile Internet users + 100 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer and Worker Engagement ® 2013 Dachis Group. Confidential and Proprietary 43
  • Dachis Group The Risks of Inaction on Mobile Engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group The Smart Mobility Lesson • Mobility isn’t just about computing that can move around • It’s a fundamental re-invention of computing • Powerful new business possibilities now exist • We must reinvent our businesses around what these new platforms make possible (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group Why Smart Mobility is qualitatively different • • • • • • • • • • Sensors (and lots of them) Always connected Location awareness in 3D space App stores Long battery life Always on Touch-based interfaces Voice control New operating systems Integrated usage (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group App Stores: The new IT competitor build network effect ROI cultivate Reach Business commitment Customer Ecosystem use buy (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. Developer Ecosystem App Store Richness create use Applications 47
  • Dachis Group Opportunity - The Stories • • • • • • Augmented Reality Real-time Translation The “Taxi” Button Multi-point Video Conferencing The CRM “lite” app & “walking the line” Business intelligence (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group Wearable Work Tech Enterprise Smart Watches Hitachi Business Microscope (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. Google Glass
  • Dachis Group Machine Brain Interfaces (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group The Internet of Things: Everything will have an IP address (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group Replicator technology has arrived • 3D scanning and printing will • • • • (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. fundamentally remake supply chains Design becomes the most important element of business Homes and workplaces will increasingly focus on suppliers of design, rather than suppliers For many industries, workers will have to move from building things to designing them A growing majority of things will eventually be 3d printed for work or home
  • Dachis Group What other changes to the tech landscape? • Rethinking the office • Virtual spaces. They’re • • • • back. Unification of communication Mass, open participation in business processes Community-centric work platforms The collaborative economy (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. mobile office pods
  • Dachis Group Key data point #2 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 1B 100% projected 75% 750M imate h est hig 500M 50% e stimat Percent of Enterprises dominant form of Internet communication on the planet • Enterprises are 2-4 years behind the rest of the world. • Yet data shows that revenue of social businesses is 20+% higher on average. Profitability is better too. - Source: McKinsey and Frost & Sullivan Global Users • Social is now the The Adoption Rates of E-mail, Social Networks, and E2.0 low e 25% 250M 2006 2007 Consumer Social Networks 2008 2009 E-mail 2010 2011 Enterprise 2.0 Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC 54
  • Dachis Group Hundreds of public social networks... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 55
  • Dachis Group (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group 21% increase in bottom line in Q4 2011 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group Organizations that extensively use social media have 1.6 times higher profit growth. -Frost and Sullivan (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.
  • Dachis Group The benefits of social engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 59
  • Dachis Group Fully social organizations get outsized benefits Source: 2011 McKinsey Web 2.0 Survey 3,103 large firms represented in total (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 60
  • Dachis Group The biggest challenge: Engaging at scale (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 61
  • Dachis Group The Cloud Is Increasingly Subversive • • • • • • • It’s in our worker’s homes It’s on their laptops and PC at work It’s in our worker’s pockets It’s the world’s largest IT department It has all the data It has all the apps It has all the people (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 62
  • Dachis Group A new mindset has arrived: Consumerization • • • • • • DIY “It’s not so hard, I can do this myself.” “There’s an app for that.” “I’ll just install this myself.” “What’s the URL for that?” “We’ll ask for forgiveness instead of permission.” “This app is way too hard to use. I’ll use my own.” Simple Fast Easy And Works The Way They Want It To (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 63
  • Dachis Group A tidal wave of data • 80-90% of IT information is not accessible • The amount of information today is just a trickle compared to what it will be in 2-3 years • It will require all new technologies and skills that IT departments don’t have • Google Search and Analytics has taught all of us how easy it should be (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 64
  • Dachis Group Our information landscape is now measured in millions of exabytes 1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes • Social ecosystems are largely responsible today. • Soon it will be sensors that are the dominant data source. • The good news: Information is no longer submerged. • However, it is increasingly becoming an onslaught. Visible Knowledge Us (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 65
  • Dachis Group “Information overload is not the problem. It’s filter failure.” - Clay Shirky (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 66
  • Dachis Group (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 67
  • Dachis Group Big Data in the future workplace • Obtain simple, easy to use business • • • • • • intelligence tools anyone can use Don’t forget Google is a big data app Should be cross silo Must integrate internal and external data Must provide actionable business-level insights, not just raw stats Some existing BI tools can do this Then “Moneyball” your business processes But brand new online services will typically bring this to your organization (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 68
  • Industry: Finance The Story: The Motivation: Last year, WiseWindow, a syndicated data provider, provided its real-time social media sentiment measurement technology, Mobi, across Bloomberg's network of 300,000 desktop terminals. WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sources are truly predictive of an industry's stock prices." Their social data analysis was found to boost investment returns by over 30% annually.
  • Industry: Disaster Management The Story: The Motivation: In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter turned out to be the first and richest source of data, even over the official U.S. Geologic Survey. Many visualizations have been created to show how the information about natural disaster (see the Wall Street Journal example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.
  • Industry: Telecommunications The Story: The Results: Source: Financial Times T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media. The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.
  • So. How Do We Get There? ® 2012 Dachis Group 72
  • Dachis Group For IT, tech change today is nearly unsustainable (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 73
  • Dachis Group Rethinking tech adoption • Ignoring technology change isn’t the • • • • answer Maintaining backlogs isn’t the answer Giving up isn’t the answer Proceeding in the same direction isn’t the answer Letting everyone do whatever they want isn’t the answer • Should we look at new models for IT? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 74
  • Dachis Group Facing Reality: IT is becoming pervasive and user-driven • In 2000, only 10% of IT was unsanctioned or outside of central control • Today that’s 30% and climbing quickly. • Gartner now says 90% by 2019 CoIT Traditional IT 2000 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 2010 2013 75
  • Dachis Group We Must Become Resilient to Constant Change There is great economic and social value in achieving this (in pink above) (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 76
  • Dachis Group How do we design for loss of control? • “Make change an integral function. Native.” - JP Rangaswami frequent adaptive course corrections growth renewal (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. cycles of change refinement disruption 77
  • Dachis Group The Next Generation CIO • Empower workers and business • • • • • partners on the edge: New tech fundamentally changes what’s possible Unconstrain: Provide everyone simple, easy to understand rules of engagement for social, mobile, big data, and cloud. Lay the foundation for managing and governing 10-100x more IT and data. Throw out the traditional IT playbook & go “emergent.” Identify future workforce skills, then cultivate or hire for them. - Engagement skills of every flavor - Both IT & the business must become design thinkers - Continuously cultivate, measure, and optimize workforce engagement Become a change agent and an IT revolutionary. You might not have your job in it’s current form long anyway.
  • Dachis Group Also See: Social Business By Design • Published May, 2012 • From John Wiley & Sons • The definitive management • • • • strategy guide and handbook on social business. Explores major real-world successes and how to emulate them.. The most complete and business-focused statement on what social business is and why it’s strategically vital. Recently #1 in Amazon’s Hot New Releases Companion Web site at http://socialbusinessbydesign.com (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 79
  • Thank you dion.hinchcliffe@dachisgroup.com | @dhinchcliffe