Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Business value 2012

Identifying how and where information technology can assist with improving an organisation's performance. Including statistics from IBM's latest Global CIO survey

  • Login to see the comments

  • Be the first to like this

Business value 2012

  1. 1. Business ValueIdentifying how and where information technology can assist with improving an organisation’s performance Sharon Richardson @joiningdots Joining Dots
  2. 2. Notes about thispresentationO This is a condensed version of a workshop delivered for organisations to help with defining a digital strategy to support business goalsO In the absence of the presenter, some additional notes have been added to the slides
  3. 3. The CIO MandateMandate Definition IT FocusLeverage Streamline operations and Standards, Governance increase organisational Internal comms effectivenessExpand Refine business processes Integration and enhance collaboration Internal collaborationTransform Change the industry value Simplification change through improved Dashboards to drive relationships better decisionsPioneer Radically innovate Data analysis including products, markets, social network analysis business models Source: IBM Global Chief Information Officer Study 2011
  4. 4. The CIO MandateBusiness view of IT Leverage Expand Transform PioneerProvider of functionaltechnology services 52% 27% 14% 8%Facilitator oforganisational 28% 32% 26% 14%process efficiencyProvider of industry-specific solutions to 14% 27% 34% 26%support businessCritical enabler ofbusiness vision 6% 15% 27% 52% Source: IBM Global Chief Information Officer Study 2011
  5. 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. 6. Business Benefits Customer Relationship Survival Successful Market Leader The Dip Operational Product Efficiency QualityBased on Cranfield University School of Management course and Seth Godin’s ‘The Dip’
  7. 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 QualityBased on Cranfield University School of Management course and Seth Godin’s ‘The Dip’
  8. 8. The Dip Results Effort Source: Seth Godin’s ‘The Dip’, published 2007
  9. 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. 10. Deciding Priorities Customer RelationshipOperational Product Efficiency Quality
  11. 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. 12. How Technology Can HelpCreate Business ValuePriority Mandate Technology FocusImprove Leverage or Standardise, simplify andoperational Transform automate processes; Improveefficiency internal communicationsImprove Expand or Integrate systems; Analyse results;product Pioneer Collaborative working andquality knowledge sharingImprove Transform or Personalisation; Data analytics –customer Pioneer real-time dashboards; Improverelations external communications
  13. 13. Competing Priorities Creativity Knowledge Personalise Sharing Collaborate Analyse Communicate Automate Efficiency Standardise Integrate Simplicity Complexity
  14. 14. Competing PrioritiesNotes:Creativity Knowledge PersonaliseDifficult to invest successfully in all areas at once, so pick Sharingwisely. Look for complements rather than conflicts. And notalways obvious. e.g. Online check-in for flights = more Collaborate Analyseefficient than manual check-in desk and personalised –passengers get to choose their seats. Difficult to pursue aknowledge-sharing strategy and automation simultaneouslyunless each targets different areas – one to innovate for new Communicate Automateproduct ideas and development, one to improve efficiency of Efficiencycurrent production lines. Automating knowledge capturerarely succeeds… Standardise Integrate Simplicity Complexity
  15. 15. And… markets are notstatic Customer RelationshipOperational Product Efficiency Quality
  16. 16. Redefining positions Customer RelationshipOperational Product Efficiency Quality
  17. 17. Redefining positionsNotes: Customer RelationshipBased on ‘Blue Ocean’ strategy – pursuing new markets notin existence today (or currently insignificant) rather thanfocusing on out-performing the competition. Side effects caninclude a major decline in demand for an existing markete.g. RIM Blackberry phone was previously a phone marketleader and its keyboard imitated until the iPhone came alongwith no keyboard at all… Now full glass screens are the norm.Demand for mobile devices – phones and tablets – now farhigher than for traditional desktop and portable computers. Ifyour market is redefined, position on all three axis will fall… Operational Product Efficiency Quality
  18. 18. ReferencesO IBM Institute for Business Value Global CIO Survey 2011 Cranfield University School of Management Business Benefits course, attended 2004 Blue Ocean Strategy, published 2005 The Dip by Seth Godin, published 2007
  19. 19. Sharon Richardson @joiningdotsJoining Dots