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1
Beyond the CIO/CMO Partnership
The Rise of the Chief Digital Officer
® 2014 ADJUVI 2
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
• Adjuvi Chief Strategy Officer
• http://adjuvi.com
• mailto:dion@adjuvi.com
• : @dhinchcliffe
3
Who will lead digital
transformation in the enterprise?
What should they achieve?
(cc) 2014 Creative Commons. Some Rights Reserved.
The Opportunity
• Our conception of business has
reached a crucial transition point
in the digital age
• Evidence now shows that the
industrial age model of the
enterprise is in widespread
decline
- Essentially failing to properly
employ our most important bridge to
the future: Technology
• We need better models with
which to rethink our
organizations for digital
• But the details of these news
models are not very well
captured and codified yet
• How can CIOs and CMOs better
capture the opportunity and
realize change?
4
Is a CDO the answer?
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 Story:
The Results:
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.
Industry:Telecommunications
Source: Financial Times
Example of rapid digital impact involving CIO + CMO
Cut customer defections
in half in a single quarter
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Technology Leaders Must Prepare For An Era of
Unprecedented Change
6
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 enterprise doubles
~2 years 3 months
Core Focus of IT
Systems of
record
Systems of
engagement
Percentage of IT
under CIO control
66% 10%
(cc) 2014 Adjuvi, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe
Adjuvi LLC
Technology is “destroying” companies in most industries
7
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
A perfect storm of tech change, happening
almost all at once
8
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
The Internet of Things: Everything will have an IP address
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Replicator technology has arrived
• 3D scanning and printing will
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 at the point
of use
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
The emerging social economy...
...one third of the world economy by 2020
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Technology has led to an era of unprecedented productivity
12
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Adjuvi LLC
But is this coming from CIO budgets?
13
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Adjuvi LLC
Is IT leading innovation today?
14
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Our Service Delivery Models Aren’t Keeping Up
15
Average
IT Dept.
End state: IT as a profit center
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Yet digital is
pervading the
core of our
businesses
16
Source: MIT Digital Transformation Study, 2013
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Executives feel
the urgency:
82% believe
digital
transformation is
critical within 2
years.
With most saying
they have to do it
now.
17
Source: MIT Digital Transformation Study, 2013
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Good news: 60% of CIOs believe they should
be driving growth and productivity.
18
Source: Deloitte Global CIO Survey
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
But CIO Role Is Under Pressure in the C-Suite
19
The Infamous Data Point: By 2017, most CMOs
will spend more on technology than the CIO
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Partly Because There’s Too Much To Do Now
20
Key Point: This is a minimum view of digital strategy today
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
And the CIO’s sub-roles are conflicting
21
Source: Ray Wang, Constellation
business
continuity
business
innovation
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Adjuvi LLC
And the “edge” of IT keeps growing into other business units
22
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Yet technology change is happening faster
than ever before
23
Tablet
The tablet is the fastest adopted mainstream technology in history
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Can we alter Martec’s Law?
24
CDO?
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Is all this change worth it?
Life Expectancy of S&P 500 Company
Pace of Technology Change
Human Population Growth
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Workers
26
IT
Another Way of
Looking At This
World
(Not To Scale)
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
New Digital Engagement
Channels Are Now The Focus
27
And where
the value is...
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
In fact, the biggest digital challenge CxOs must solve:
Engaging at scale
28
OK, and channel
fragmentation
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
So perhaps the most significant change this shift
29
And why CIO and CMO roles are intersecting
Adjuvi LLC
We have to reconcile IT with systems of engagement
A job for the CDO?
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
We need tech organization that can match successful digital natives
31
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Because most businesses are still immature with digital
Webinars
social media
P2P video
online video
direct mail
mobile
apps
Competent
Maturing
Immature
cloud
big data gamification
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
This means CIOs and CMO are still learning to work together
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
But CIOs are
getting the
external facing
message...
Mobile
Social
Web
Print
In-Person
awareness
get a
recommendation
research &
learn
join
learn
get help
participate
interact
co-support
traditional
media
social
media
The
Engaged Constituent
Journey
advocate
virtuous cycle
So CIOs and CMOs Must Put All These New Pieces Together
Using All Digital Touchpoints To Engage
Today’s Stakeholders in Scale
recommend
Example of market-facing IT impact at the edge in public sector
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Key Leadership Finding
• Technology leaders
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
37
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
The emergence of the Chief Digital Officer
• CDOs worldwide in 2012: 225
• CDOs worldwide in 2013: 448
• CDOs worldwide in 2014: 1000+
Source: The CDO Club
38
Mandate: Digitally enable lines of business
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Leading firms are hiring Chief Digital Officers...
39
Common Skillset:
“Overall, CDOs are
generally professional
leaders and business
builders with digital DNA
who have P&L
responsibility and
backgrounds in General
Management, Corporate
and Business Development,
entrepreneurial disruption,
and the ability to get buy-
in from multiple
stakeholders across
company silos.”
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
A cross check on demand for CDOs...
40
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Recent Chief Digital Officer success story
41
Revenue
US$ 6.2 billion
Founded:
1972
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Key Roles of the Chief Digital Officer
42
Maintain an easy-to-explain
story for the corporate digital
strategy.
1
Earn company-wide
commitment for the digital
strategy.
2
Embrace data-based
experimentation.
3
Connect with digital experts in
the company and the broader
industry.
4
Speak multiple business
languages (IT, marketing,
strategy, finance).
5
Strive for tangible and
measurable results.
6
Keep the strategy fresh with
the latest innovations & shifts
in the market.
7
Maintain focus on and
commitment to executing the
strategy over multiple years.
8
Source: Joe McKendrick, ZDNet
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
Key Skills for the Chief Digital Officer
43
Business Skills
Marketing/
Communications
Tech/IT
Legal,
Logistics
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
How it will impact existing C-level roles
44
Chief
Marketing
Officer
(cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved.
Adjuvi LLC
The New Tech Leader Mandate
• 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,
customer, and business partner experiences
• Enable emergent, decentralized tech change in the
organization
• Don’t constrain IT, fundamentally empower
- Everyone is now in the IT department
- Put up guardrails and get out of the way (security,
governance, etc.
45
(cc) 2014 Creative Commons. Some Rights Reserved.
Summing Up: Designing the New Enterprise
46
Adjuvi LLC
The Next Generation CxO
• 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.”
• Enable the CDO to rethink the business from the edge-in:
Budget, resources, cooperation.
• Identify “future of business” skills, then cultivate or hire
for them.
- Hire your CDO instead of waiting for one to be imposed
- Engagement skills of every flavor (mobile, social, IoT,
analytics)
- Both IT & the business must become design thinkers
• Become a change agent and an IT revolutionary. You
might not have your job in it’s current form long anyway.

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Beyond the CIO/CMO - The Rise of the Chief Digital Officer | CIO Perspectives Virginia 2014 | Keynote by Dion Hinchcliffe

  • 1. (cc) 2014 Adjuvi, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe Adjuvi LLC 1 Beyond the CIO/CMO Partnership The Rise of the Chief Digital Officer
  • 2. ® 2014 ADJUVI 2 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 • Adjuvi Chief Strategy Officer • http://adjuvi.com • mailto:dion@adjuvi.com • : @dhinchcliffe
  • 3. 3 Who will lead digital transformation in the enterprise? What should they achieve?
  • 4. (cc) 2014 Creative Commons. Some Rights Reserved. The Opportunity • Our conception of business has reached a crucial transition point in the digital age • Evidence now shows that the industrial age model of the enterprise is in widespread decline - Essentially failing to properly employ our most important bridge to the future: Technology • We need better models with which to rethink our organizations for digital • But the details of these news models are not very well captured and codified yet • How can CIOs and CMOs better capture the opportunity and realize change? 4 Is a CDO the answer?
  • 5. 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 Story: The Results: 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. Industry:Telecommunications Source: Financial Times Example of rapid digital impact involving CIO + CMO Cut customer defections in half in a single quarter
  • 6. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Technology Leaders Must Prepare For An Era of Unprecedented Change 6 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 enterprise doubles ~2 years 3 months Core Focus of IT Systems of record Systems of engagement Percentage of IT under CIO control 66% 10%
  • 7. (cc) 2014 Adjuvi, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe Adjuvi LLC Technology is “destroying” companies in most industries 7
  • 8. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC A perfect storm of tech change, happening almost all at once 8
  • 9. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC The Internet of Things: Everything will have an IP address
  • 10. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Replicator technology has arrived • 3D scanning and printing will 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 at the point of use
  • 11. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC The emerging social economy... ...one third of the world economy by 2020
  • 12. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Technology has led to an era of unprecedented productivity 12
  • 13. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC But is this coming from CIO budgets? 13
  • 14. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Is IT leading innovation today? 14
  • 15. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Our Service Delivery Models Aren’t Keeping Up 15 Average IT Dept. End state: IT as a profit center
  • 16. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Yet digital is pervading the core of our businesses 16 Source: MIT Digital Transformation Study, 2013
  • 17. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Executives feel the urgency: 82% believe digital transformation is critical within 2 years. With most saying they have to do it now. 17 Source: MIT Digital Transformation Study, 2013
  • 18. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Good news: 60% of CIOs believe they should be driving growth and productivity. 18 Source: Deloitte Global CIO Survey
  • 19. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC But CIO Role Is Under Pressure in the C-Suite 19 The Infamous Data Point: By 2017, most CMOs will spend more on technology than the CIO
  • 20. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Partly Because There’s Too Much To Do Now 20 Key Point: This is a minimum view of digital strategy today
  • 21. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC And the CIO’s sub-roles are conflicting 21 Source: Ray Wang, Constellation business continuity business innovation
  • 22. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC And the “edge” of IT keeps growing into other business units 22
  • 23. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Yet technology change is happening faster than ever before 23 Tablet The tablet is the fastest adopted mainstream technology in history
  • 24. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Can we alter Martec’s Law? 24 CDO?
  • 25. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Is all this change worth it? Life Expectancy of S&P 500 Company Pace of Technology Change Human Population Growth
  • 26. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Workers 26 IT Another Way of Looking At This World (Not To Scale)
  • 27. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC New Digital Engagement Channels Are Now The Focus 27 And where the value is...
  • 28. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC In fact, the biggest digital challenge CxOs must solve: Engaging at scale 28 OK, and channel fragmentation
  • 29. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC So perhaps the most significant change this shift 29 And why CIO and CMO roles are intersecting
  • 30. Adjuvi LLC We have to reconcile IT with systems of engagement A job for the CDO?
  • 31. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC We need tech organization that can match successful digital natives 31
  • 32. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Because most businesses are still immature with digital Webinars social media P2P video online video direct mail mobile apps Competent Maturing Immature cloud big data gamification
  • 33. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC This means CIOs and CMO are still learning to work together
  • 34. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC But CIOs are getting the external facing message...
  • 35. Mobile Social Web Print In-Person awareness get a recommendation research & learn join learn get help participate interact co-support traditional media social media The Engaged Constituent Journey advocate virtuous cycle So CIOs and CMOs Must Put All These New Pieces Together Using All Digital Touchpoints To Engage Today’s Stakeholders in Scale recommend
  • 36. Example of market-facing IT impact at the edge in public sector
  • 37. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Key Leadership Finding • Technology leaders 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 37
  • 38. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC The emergence of the Chief Digital Officer • CDOs worldwide in 2012: 225 • CDOs worldwide in 2013: 448 • CDOs worldwide in 2014: 1000+ Source: The CDO Club 38 Mandate: Digitally enable lines of business
  • 39. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Leading firms are hiring Chief Digital Officers... 39 Common Skillset: “Overall, CDOs are generally professional leaders and business builders with digital DNA who have P&L responsibility and backgrounds in General Management, Corporate and Business Development, entrepreneurial disruption, and the ability to get buy- in from multiple stakeholders across company silos.”
  • 40. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC A cross check on demand for CDOs... 40
  • 41. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Recent Chief Digital Officer success story 41 Revenue US$ 6.2 billion Founded: 1972
  • 42. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Key Roles of the Chief Digital Officer 42 Maintain an easy-to-explain story for the corporate digital strategy. 1 Earn company-wide commitment for the digital strategy. 2 Embrace data-based experimentation. 3 Connect with digital experts in the company and the broader industry. 4 Speak multiple business languages (IT, marketing, strategy, finance). 5 Strive for tangible and measurable results. 6 Keep the strategy fresh with the latest innovations & shifts in the market. 7 Maintain focus on and commitment to executing the strategy over multiple years. 8 Source: Joe McKendrick, ZDNet
  • 43. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC Key Skills for the Chief Digital Officer 43 Business Skills Marketing/ Communications Tech/IT Legal, Logistics
  • 44. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC How it will impact existing C-level roles 44 Chief Marketing Officer
  • 45. (cc) 2014 Adjuvi LLC. Creative Commons. Some Rights Reserved. Adjuvi LLC The New Tech Leader Mandate • 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, customer, and business partner experiences • Enable emergent, decentralized tech change in the organization • Don’t constrain IT, fundamentally empower - Everyone is now in the IT department - Put up guardrails and get out of the way (security, governance, etc. 45
  • 46. (cc) 2014 Creative Commons. Some Rights Reserved. Summing Up: Designing the New Enterprise 46
  • 47. Adjuvi LLC The Next Generation CxO • 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.” • Enable the CDO to rethink the business from the edge-in: Budget, resources, cooperation. • Identify “future of business” skills, then cultivate or hire for them. - Hire your CDO instead of waiting for one to be imposed - Engagement skills of every flavor (mobile, social, IoT, analytics) - Both IT & the business must become design thinkers • Become a change agent and an IT revolutionary. You might not have your job in it’s current form long anyway.