HUAWEI TECHNOLOGIES CO., LTD.
Reinvent Yourself
“Formulating a new
approach to the CIO role by
redefining the IT
Departmen...
2Copyright©2014 Huawei Technologies Co., Ltd.
What will the future hold for the CIO & IT Department?
 Digitization and th...
3Copyright©2014 Huawei Technologies Co., Ltd.
We are in an
Retailers
From Fixed Storefronts to Online
Health
Personalized ...
4Copyright©2014 Huawei Technologies Co., Ltd.
We’re all talking about …..
Creating Social
Networks with our
Customers, Par...
5Copyright©2014 Huawei Technologies Co., Ltd.
….. and all Enterprise will be
6Copyright©2014 Huawei Technologies Co., Ltd.
Customer
Perception
Customer
Satisfaction
Customer
Loyalty
Customer
Profitab...
7Copyright©2014 Huawei Technologies Co., Ltd.
How does having a happy customer
effect the profitability of your business?
...
8Copyright©2014 Huawei Technologies Co., Ltd.
Supporting Tools
Portals, Web Sites , Content
Management - Access to Product...
9Copyright©2014 Huawei Technologies Co., Ltd.
Collaborate with Partners to grow together
Organization
Human Resources
Tech...
10Copyright©2014 Huawei Technologies Co., Ltd.
Supporting Tools
Online Self Care,
Contact Center,
Help Desk
Unified Commun...
11Copyright©2014 Huawei Technologies Co., Ltd.
“Digital” should be central to most
companies businesses…
The Company becom...
12Copyright©2014 Huawei Technologies Co., Ltd.
Who should lead this Digital Transformation?
CEO
CMO
CSO
LOB
CXOs
CIO
CIO i...
13Copyright©2014 Huawei Technologies Co., Ltd.
The Role of the CIO of the Future
Source: Center of Information Systems Res...
14Copyright©2014 Huawei Technologies Co., Ltd.
The Role of the CIO of the Future
Source: Center of Information Systems Res...
15Copyright©2014 Huawei Technologies Co., Ltd.
By 2018, 50% of business executives will view the CIO
as a Business Innovat...
16Copyright©2014 Huawei Technologies Co., Ltd.
The Role of IT is evolving to that of a Business Innovator
Source: Derived ...
17Copyright©2014 Huawei Technologies Co., Ltd.
… and how Enterprises Invest in IT will change
Source: IDC Predictions
Line...
18Copyright©2014 Huawei Technologies Co., Ltd.
Additionally IT Service Consumption Models will need to
evolve; freeing up ...
19Copyright©2014 Huawei Technologies Co., Ltd.
IT will need to focus on 4 main pillars; supporting
Internal, Partner and C...
20Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 1:
The emergence of the new Cloud-Based Enterprise
AGILE &
CONNECTED...
21Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 2:
Mobility and rise of the Knowledge Worker
8/4/2014
Empowerment of...
22Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 3:
The rise of the Social Enterprise – Social Networks
Source: Brian...
23Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 4:
Big Data - from Business Operations to Business Innovation
Data t...
24Copyright©2014 Huawei Technologies Co., Ltd.
Summary
In the future Business is IT
– IT is intrinsic to how
Enterprises w...
Thank you
www.huawei.com
Copyright ©2014 Huawei Technologies Co.,Ltd. All Rights Reserved.
The information contained in th...
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A New Approach to the CIO role by Redefining the IT Department’s Contribution to the Bottom Line

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A New Approach to the CIO role by Redefining the IT Department’s Contribution to the Bottom Line
by Barry Lerner, Huawei Technologies at the Australian CIO Summit 2014

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A New Approach to the CIO role by Redefining the IT Department’s Contribution to the Bottom Line

  1. 1. HUAWEI TECHNOLOGIES CO., LTD. Reinvent Yourself “Formulating a new approach to the CIO role by redefining the IT Department’s contribution to the bottom line” Barry Lerner CIO, Huawei Technologies
  2. 2. 2Copyright©2014 Huawei Technologies Co., Ltd. What will the future hold for the CIO & IT Department?  Digitization and the value of IT to the Business  The future Role of CIOs and impact to the IT Organization  Core Focus Areas for CIOs and IT Departments
  3. 3. 3Copyright©2014 Huawei Technologies Co., Ltd. We are in an Retailers From Fixed Storefronts to Online Health Personalized Remote Monitoring Education Open Online Learning (MOOCs) Banking Mobile Online Banking, PayPal Home Surveillance Sensor Cities Smart Meters Friendships are Changing Proliferation of Smart Devices Everyone is IT Literate
  4. 4. 4Copyright©2014 Huawei Technologies Co., Ltd. We’re all talking about ….. Creating Social Networks with our Customers, Partners & Employees The Social Enterprise Retaining Customers & Increasing Wallet Share - Big Data, SQM / QoE Customer Experience Mobility Consumerization of IT / BYOD B2B and B2C Collaboration IoT / M2M The Cloud Based Enterprise Agile Connected Efficient Cost Effective
  5. 5. 5Copyright©2014 Huawei Technologies Co., Ltd. ….. and all Enterprise will be
  6. 6. 6Copyright©2014 Huawei Technologies Co., Ltd. Customer Perception Customer Satisfaction Customer Loyalty Customer Profitability Customer Acquire Customer Fulfill Service Usage Customer Support Customer Optimize Service Design Customer Touch Points Delight and Serve your Customer Server our Customers
  7. 7. 7Copyright©2014 Huawei Technologies Co., Ltd. How does having a happy customer effect the profitability of your business? Longer the relationship lower the cost Decline over the life of the relationship Less inclined to switch, less price sensitive More likely to buy high margin products Happy Customers spread the word Satisfied Customer less likely to switch Regular customers familiar with services & processes Cost of Acquisition Account Maintenanc e Costs Stable Sales Volumes Increase Sales Revenue New Customer Acquisition Churn Reduction Less Expensive to Service $ $ $$$$$ Example: Cost to Service a Customer Revenue Increase$ $ Server our Customers
  8. 8. 8Copyright©2014 Huawei Technologies Co., Ltd. Supporting Tools Portals, Web Sites , Content Management - Access to Product & Service Information Online Self Care, Contact Center, Help Desk Unified Communications, Social Media, Office Provisioning, Supply Chain Automation Purchasing Products or Services online Customer Data Analytics - Understanding the Customer and their needs Server our Customers
  9. 9. 9Copyright©2014 Huawei Technologies Co., Ltd. Collaborate with Partners to grow together Organization Human Resources Technology Purchasing Support Activities Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Primary Activities Materials Handling Manufacturing Order Processing Product Pricing, Promo Customer Service Collaborate with Partners
  10. 10. 10Copyright©2014 Huawei Technologies Co., Ltd. Supporting Tools Online Self Care, Contact Center, Help Desk Unified Communications, Social Media, Office Integration of Partner & Enterprise Systems Partner Contracts, Policies, Procedures Joint Co-Branding & Marketing of Products Channel Management Partner Access to Enterprise Information / Resources Revenue Share, Procurement Collaborate with Partners
  11. 11. 11Copyright©2014 Huawei Technologies Co., Ltd. “Digital” should be central to most companies businesses… The Company becomes part of a dynamic ecosystem that connects digital resources both inside and outside the company Harnesses Digital resources to enable e.g. • Improved Customer Experience • Drive Business Agility & Take Out Cost to maintain competitive advantage The future of Business is
  12. 12. 12Copyright©2014 Huawei Technologies Co., Ltd. Who should lead this Digital Transformation? CEO CMO CSO LOB CXOs CIO CIO is a business partner to the line of business (LoB), not a cost center. An effective CMO/CSO+CIO relationship needs to be created and nurtured
  13. 13. 13Copyright©2014 Huawei Technologies Co., Ltd. The Role of the CIO of the Future Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR Business Leaders Agile Companies Business Leaders IT Leaders Expectation of Allocated Time
  14. 14. 14Copyright©2014 Huawei Technologies Co., Ltd. The Role of the CIO of the Future Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR % Current CIOs Key Metrics
  15. 15. 15Copyright©2014 Huawei Technologies Co., Ltd. By 2018, 50% of business executives will view the CIO as a Business Innovator The CIO of the future will incorporate IT service provision and business process digitization into the “DNA” (i.e. Governance and Structure) of the company. Then the CIO will participate in sales, delivery and conducting digital conversations with customers or manage enterprise process operations, shared services, or product development. CIO of the Future Find Time • Finding the time to enable the Enterprise to be more agile, more global and increase revenues Design Governance • Governance matched to strategic goals to help free up time for strategic issues Build New Teams • Build new teams and skills to undertake a transformation Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR
  16. 16. 16Copyright©2014 Huawei Technologies Co., Ltd. The Role of IT is evolving to that of a Business Innovator Source: Derived from IDC, 2013 (% = ICT spend share of wallet; left = spend today, right = desired %) 0 10 20 30 40 50 60 70 80 90 Transform the Business Change the Business Research & Explore Optimize Business Today Desired 0-10% 18-25% 5-25% 25-35% 0-5% 3-10% 60-80% 35-50% CEO Focus CIO FocusLine of Business Executives CXO IT is Business
  17. 17. 17Copyright©2014 Huawei Technologies Co., Ltd. … and how Enterprises Invest in IT will change Source: IDC Predictions Line of Business Executives will be directly involved in 80% of new IT investments 90% of it Investments will be evaluated in terms of strategic goals CIOs and CFOs will move to “zero capital” and transform the IT financial model
  18. 18. 18Copyright©2014 Huawei Technologies Co., Ltd. Additionally IT Service Consumption Models will need to evolve; freeing up IT to become a Transformation Engine IT needs to act as intermediaries between internal customers and all IT services (internal or external). IT becomes a service broker Internal clouds are hampered by lack of experience and skills. Focus on Education and Automation Tools Popular option for augmenting IT capacity and enabling DR over new data centres or a long-term outsourcing agreements Key Challenges: •Secure & Backup Data •Support Broader range of Devices •Manage End to End Service Delivery Traditional Computing Hybrid IT Hybrid Cloud Internal Cloud Source: IDC Predictions
  19. 19. 19Copyright©2014 Huawei Technologies Co., Ltd. IT will need to focus on 4 main pillars; supporting Internal, Partner and Customer needs Big Data reshapes companies Cross-industry partnerships will also grow in this area as Telco, Retailer & Bank come together to share customer insights By 2016 70% of CIOs will embrace a “cloud first” strategy Data Center ownership will not be a priority for the CIO by 2017 The rise of many cloud providers – Retailers, Wholesalers, Brokers 30% of all new apps development will target mobile CMOs will deploy mobile to reach customers BYOD will become the norm Social software will be embedded in UC&C & enterprise apps Social will give rise to B2B2C as consumers and brands interact
  20. 20. 20Copyright©2014 Huawei Technologies Co., Ltd. Pillar 1: The emergence of the new Cloud-Based Enterprise AGILE & CONNECTED EFFICIENT & COST EFFECTIVE New Business & Process Demands ‒ Work Smarter , Be Flexible & Agile Need Business & Customer Insight ‒ Data Exploding, Need Real Time Intelligence Need to Connect to Partners ‒ Business to Business Connect & Communicate Infrastructure Inflexible & Costly ‒ Respond Quickly to Business, Need Dynamic Infrastructure Environmental Costs Escalating ‒ Optimized & Green to Reduce Carbon Footprint Inefficient & Costly Operations • Respond Quickly to Business needs, Manage IT Efficiently
  21. 21. 21Copyright©2014 Huawei Technologies Co., Ltd. Pillar 2: Mobility and rise of the Knowledge Worker 8/4/2014 Empowerment of the Consumer  Shifting Business Models require Tech Savvy always connected employees, partners and customers The blurring of Home & Work  The Trend to Telecommute Driving changes in how Businesses Acquire and Consume IT  Employees expectation of IT are changing  Employees are solving business problems using technology that they utilize in their personal life. Always Connected Technology Savvy MultitaskedSocially Engaged
  22. 22. 22Copyright©2014 Huawei Technologies Co., Ltd. Pillar 3: The rise of the Social Enterprise – Social Networks Source: Brian Solis Author and Media Strategist 1. Planning: “Listen to Learn” 2. Presence: “Stake Our Claim” 3. Engagement: “Dialog Deepens Relationships” 4. Formalized: “Organize for Scale” 5. Strategic: “Becoming a Social Business” 6. Converged: “Business is Social”
  23. 23. 23Copyright©2014 Huawei Technologies Co., Ltd. Pillar 4: Big Data - from Business Operations to Business Innovation Data to Run Business • Basic Reporting & Spreadsheet • Hindsight based • Manual, ad-hoc • No version of truth • Basic search, query, reporting and analytics • Some automation • Multiple versions of the truth Information to Manage Business Information as Strategic Asset • Insight thru analytics, real- time • Enhanced automation • Single version of truth Information to enable Innovation Information Competitive Differentiation • Foresight, predictive analytics • Capabilities embedded in workflow • Strategic insight • Enablement of strategic business innovation
  24. 24. 24Copyright©2014 Huawei Technologies Co., Ltd. Summary In the future Business is IT – IT is intrinsic to how Enterprises will conduct business and operate CIOs need to lead the Transformation and become the business partner to the line of business (LoB)…. not a cost center The IT Department needs to be wired for Innovation CIO’s must move from Command and Control to Business Innovator; developing relationships with Partners and Customers Focus on The 4 Pillars to enable this Transformation
  25. 25. Thank you www.huawei.com Copyright ©2014 Huawei Technologies Co.,Ltd. All Rights Reserved. The information contained in this document is for reference purpose only, and is subject to change or withdrawal according to specific customer requirements and conditions.

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