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

My examination of the evolution of IT, the growing CIO and CMO partnership, and what happening with the rise of the Chief Digital Officer. Includes case studies, examples, and what a CIO can do to make IT a profit center.

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(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
® 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%

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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.