1. Business Value
Identifying how and where information
technology can assist with improving
an organisation’s performance
Sharon Richardson @joiningdots
Joining Dots www.joiningdots.com

2. Notes about this
presentation
O This is a condensed version of a workshop
delivered for organisations to help with defining a
digital strategy to support business goals
O In the absence of the presenter, some additional
notes have been added to the slides

3. The CIO Mandate
Mandate Definition IT Focus
Leverage Streamline operations and Standards, Governance
increase organisational Internal comms
effectiveness
Expand Refine business processes Integration
and enhance collaboration Internal collaboration
Transform Change the industry value Simplification
change through improved Dashboards to drive
relationships better decisions
Pioneer Radically innovate Data analysis including
products, markets, social network analysis
business models
Source: IBM Global Chief Information Officer Study 2011

4. The CIO Mandate
Business view of IT Leverage Expand Transform Pioneer
Provider of functional
technology services 52% 27% 14% 8%
Facilitator of
organisational 28% 32% 26% 14%
process efficiency
Provider of industry-
specific solutions to 14% 27% 34% 26%
support business
Critical enabler of
business vision
6% 15% 27% 52%
Source: IBM Global Chief Information Officer Study 2011

5. Mandate Summary
High-performing companies were able to
create significant value in each category
Pick the mandate that aligns to the needs of
the business today, not the one that sounds
the most interesting…
Industries under threat of disruption have
most to gain from Pioneering mandates

6. Business Benefits
Customer
Relationship
Survival
Successful
Market Leader
The Dip
Operational Product
Efficiency Quality
Based on Cranfield University School of Management course and Seth Godin’s ‘The Dip’

7. Business Benefits
Customer
Relationship
Notes:
Evaluating performance on three axis. Few companies
Survival
excel at all three. Can have a market leading product yet
Successful
be in survival mode due to poor operations and
Market Leader
customer service. Whether the company is successful,
in survival mode or pushing to be a market leader
The Dip
should influence the CIO mandate. The axis that most
needs improving should influence the direction of the
mandate
Operational Product
Efficiency Quality
Based on Cranfield University School of Management course and Seth Godin’s ‘The Dip’

8. The Dip
Results
Effort
Source: Seth Godin’s ‘The Dip’, published 2007

9. The Dip
Notes:
To go from being successful to a
market leader usually involves a dip –
where increased effort leads to worse
Results
results initially. The difference between
obtaining and mastering a skill. The
risk is that the dip becomes a cliff…
Effort
Source: Seth Godin’s ‘The Dip’, published 2007

10. Deciding Priorities
Customer
Relationship
Operational Product
Efficiency Quality

11. Deciding Priorities
Customer
Notes:
Relationship
In this example, the company is performing well but profits
are being damaged by inefficient operations, risking long-
term competitiveness. But beware mandates that lower
product quality or customer service in the drive to improve
operational efficiency and increase profit margins…
Pushing product or customer relations into market
leadership involves navigating the dip. Both could lead to
further inefficiencies in operations and possible
bankruptcy, but success could lead to new markets…
Operational Product
Efficiency Quality

12. How Technology Can Help
Create Business Value
Priority Mandate Technology Focus
Improve Leverage or Standardise, simplify and
operational Transform automate processes; Improve
efficiency internal communications
Improve Expand or Integrate systems; Analyse results;
product Pioneer Collaborative working and
quality knowledge sharing
Improve Transform or Personalisation; Data analytics –
customer Pioneer real-time dashboards; Improve
relations external communications

13. Competing Priorities
Creativity Knowledge
Personalise
Sharing
Collaborate Analyse
Communicate Automate
Efficiency
Standardise Integrate
Simplicity Complexity

14. Competing Priorities
Notes:Creativity
Knowledge
Personalise
Difficult to invest successfully in all areas at once, so pick
Sharing
wisely. Look for complements rather than conflicts. And not
always obvious. e.g. Online check-in for flights = more
Collaborate Analyse
efficient than manual check-in desk and personalised –
passengers get to choose their seats. Difficult to pursue a
knowledge-sharing strategy and automation simultaneously
unless each targets different areas – one to innovate for new
Communicate Automate
product ideas and development, one to improve efficiency of
Efficiency
current production lines. Automating knowledge capture
rarely succeeds…
Standardise Integrate
Simplicity Complexity

15. And… markets are not
static Customer
Relationship
Operational Product
Efficiency Quality

16. Redefining positions
Customer
Relationship
Operational Product
Efficiency Quality

17. Redefining positions
Notes: Customer
Relationship
Based on ‘Blue Ocean’ strategy – pursuing new markets not
in existence today (or currently insignificant) rather than
focusing on out-performing the competition. Side effects can
include a major decline in demand for an existing market
e.g. RIM Blackberry phone was previously a phone market
leader and its keyboard imitated until the iPhone came along
with no keyboard at all… Now full glass screens are the norm.
Demand for mobile devices – phones and tablets – now far
higher than for traditional desktop and portable computers. If
your market is redefined, position on all three axis will fall…
Operational Product
Efficiency Quality

18. References
O IBM Institute for Business Value
Global CIO Survey 2011
http://www-935.ibm.com/services/us/gbs/thoughtleadership/
O Cranfield University School of Management
Business Benefits course, attended 2004
http://www.som.cranfield.ac.uk/som/
O Blue Ocean Strategy, published 2005
http://www.blueoceanstrategy.com/
O The Dip by Seth Godin, published 2007
http://www.sethgodin.com/sg/books.asp

19. Sharon Richardson @joiningdots
Joining Dots www.joiningdots.com