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Digital Innovation, IT and the Art of Influence

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A presentation based on research I conducted for Harvard Business Review Analytic Services, delivered at the St. Louis Gateway to Innovation conference.

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Digital Innovation, IT and the Art of Influence

  1. 1. Digital Innovation, IT & the Art of Influence Abbie Lundberg Researcher, advisor & former editor in chief, CIO magazine
  2. 2. Innovation imperative in business Value shift for IT Collaboration and the art of influence
  3. 3. HBR Survey: Respondent Profile 420 HBR subscribers – mostly senior or exec management Large organizations Key industry sectors Globally diverse 3 15% Technology 12% Financial Services 11% Manufacturing 8% Healthcare 8% Consulting 7% Government/NFP Other sectors = 6% or less 45% 10,000+ employees 41% 1,000 to 10,000 Average 2011 revenue: $3.3B 32% with revenue of $5B or more 40% North America 24% Asia 23% Europe 8% MEA 5% South/Central America
  4. 4. Posture toward digital innovation 18% Q: Which of the following best describes your company’s posture toward IT-driven business innovation? 4 32% 50% In company DNA; consciously pursued strategy throughout organization Pockets of ad hoc innovation, but not pervasive or replicated across whole company Innovation not a top priority; focus elsewhere Innovator Accelerators Ad hoc Innovators Low Prioritizers The IT sector is most likely to contain Innovation Accelerators (52%, index 168) Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  5. 5. Our IT department is seen as… a. Cost center b. Service provider c. IT partner, trusted collaborator d. Business peer or game changer Source: CIO Executive Council
  6. 6. 16% 20% 33% 29% 2% Business peer/game changer IT partner Service provider Cost center None of the above 53% of Low Prioritizers view their IT department as a cost center v. 29% of all respondents Q: How would you characterize your company’s current IT organization? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services 30% of Innovation Accelerators see their IT department as a peer or game-changer v. 16% of all respondents View of IT today
  7. 7. Innovation imperative 7 18% 22% 25% 28% 32% 16% 33% 31% 32% 29% 29% 27% 48% 46% 42% 35% 32% 55% Customer engagement/insight End user business processes Products and services Business models Internal enterprise operations Supply chain/partner ops Minimally affected (scores 1-5) Moderately affected (6-7) Transformed (8-10) Q: What areas of your business will be most affected by IT-enabled innovation over the next three years? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  8. 8. Innovation imperative - transformed (8-10) 8 46% 45% 41% 44% 64% 64% 64% 70% 32% 35% 23% 29% 26% 41% 34% 53% 23% 38% 31% 36% 35% 48% 42% 55% Customer engagement/insight Business models Products & services End user processes Supply chain/partner ops Internal enterprise ops All Low Prioritizers Ad hoc Innovators Innovation Accelerators Q: What areas of your business will be most affected by IT-enabled innovation over the next three years? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  9. 9. Accelerators are commercializing IT 40% 25% 16% 28% Innovation Accelerators Ad hoc Innovators Low Prioritizers All Q: Has your company commercialized any of its own internal IT initiatives? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  10. 10. What’s being commercialized 10 25% 25% 23% 23% 47% 74% 35% 35% 29% 58% 25% 67% 29% 28% 37% 66% Used IT to make products/ services smarter and sell info. around them Offer internally developed capability as cloud-based service Make analytics capability available for a fee Redefined product value chain as service to others All Low Prioritizers Ad hoc Innovators Innovation Accelerators Q: What types of IT initiatives has your company commercialized? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  11. 11. Staying on top of new IT developments 11 27% 29% 33% 36% 42% 41% 42% 32% 63% 41% 22% 19% 24% 28% 41% 48% Industry conferences/events Super users in the business bring new ideas to IT Emerging tech group in IT Analyst organizations like Gartner or Forrester Mgmt consulting cos. like McKinsey or Accenture Technology labs Futurist groups or individuals Social platforms All Innovation Accelerators Q: What mechanisms does your company employ to stay on top of new IT developments? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  12. 12. Innovation Funnel 12 Innovation Accelerators Ad hoc Innovators Low Prioritzers All 20% 20% 30% 51% 51% 61% 18% 25% 20% 44% 46% 36% 13% 17% 23% 27% 39% 35% 18% 22% 24% 43% 46% 44% Skunk works in IT Skunk works in biz Ext crowdsourcing Int crowdsourcing End-user app dev X-funct. innov board Q: Which of the following approaches to IT-driven business innovation does your company employ? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  13. 13. Accelerators lead together 13 39% Innovation Accelerators Ad hoc Innovators Low Prioritizers All 2% 11% 48% 42% 12% 14% 32% 44% 12% 6% 38% 41% 9% 11% 38% Business-Led Stealth IT IT-Led Collaborative Q: Which best describes your organization’s approach to IT-enabled business innovation? Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  14. 14. Accelerators: Highly capable IT depts. Top box scores (8-10; highly capable) 33% 38% 38% 36% 39% 52% 52% 50% 59% 16% 18% 16% 17% 13% 24% 22% 20% 22% 11% 23% 28% 17% 8% 17% 9% 17% 13% Access to right technology Knowledge of the business Technical skills & expertise Receptiveness to new ideas Overall speed & agility Communication skills Staffing levels Ability to generate new ideas Available budget Low Prioritizers Ad hoc Innovators Innovation Accelerators Q: The following is a list of capabilities that enable an IT organization to support new business ideas and opportunities. Please rate your own IT organization on each.
  15. 15. Communication – needs improvement Top box scores (8-10; highly capable) 38% 20% 16% Low Prioritizers Ad hoc Innovators Innovation Accelerators Q: The following is a list of capabilities that enable an IT organization to support new business ideas and opportunities. Please rate your own IT organization on each. Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
  16. 16. 3 PILLARS OF INFLUENCE Credibility Relevance Trust
  17. 17. CREDIBILITY Manage Expectations Create Proof Points Publicize Results
  18. 18. RELEVANCE
  19. 19. TRUST Be Honest Adopt Transparency Build Relationships
  20. 20. RELATIONSHIPS What do you have in common? What can you do for them? (go first) Practice the art of the schmooze
  21. 21. Innovation imperative in business Value shift for IT Collaboration & Influence Credibility Relevance Trust
  22. 22. Thank You Abbie Lundberg Twitter, LinkedIn, Slideshare: abbielundberg abbie@lundbergmedia.com 508-269-3547

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