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CIO Relevance in a Digital World

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How can Chief Information Officers remain relevant in this time of digital transformation. Here is a link to the corresponding blog post on ZDNet: http://www.zdnet.com/article/cio-relevance-in-the-age-of-digital/

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CIO Relevance in a Digital World

  1. 1. 1 CIO Relevance in the Digital Era Michael Krigsman Founder, cxotalk.com @mkrigsman mkrigsman@cxotalk.com
  2. 2. Relevance Challenges Navigating the Path Opportunities 2
  3. 3. Relevance: Today’s IT Challenge
  4. 4. 4 Most IT Organizations Believe they Serve Business Needs
  5. 5. Do Business Partners Agree? No. 52% 20% CIO / CTO Non-Technology CIO has Strong Impact on Technology Innovation and Creativity? Relevance Gap 5 Michael Krigsman / cxotalk.com
  6. 6. 6 Does the CIO Impact Innovation? CIO / CTO: 52% Others: 20% Strong Impact Michael Krigsman / cxotalk.com
  7. 7. / cxotalk.com 7 Does the CIO Accelerate Success? Cust service: 21% Product dev: 22% Sales: 26% R&D: 31% Marketing: 49% IT: 57% “Yes” Responses
  8. 8. 8 How Business Decision Makers View IT Collaborate with business: 43% Efficient support: 40% Deliver projects on time: 39% IT Capabilities Michael Krigsman / cxotalk.com
  9. 9. / cxotak.com 9 CFO: Does IT Benefit Us? Agree: 28% CFO Routinely Realizes IT Benefit? Michael Krigsman / cxotalk.com
  10. 10. 10 CFO: Is IT a Competitive Advantage? Primary competitive advantage: 10% CFO View of IT Michael Krigsman / cxotalk.com
  11. 11. 11 Digital Transformation: The Great Disruption
  12. 12. Technology sophistication Social media Universal connectivity Powerful devices Digital Proliferation 12 Michael Krigsman / cxotalk.com
  13. 13. Technology Cloud Mobile Social Data / Analytics Internet of things (IoT) Blockchain People and Process Shifting technology budgets (business-led IT) Pervasive technology outside IT Consumerization of IT Changing consumer expectations Demographic shifts (Millennials) Technology, People, Process 13 Michael Krigsman / cxotalk.com
  14. 14. Technology Budgets Outside IT 14 Michael Krigsman / cxotalk.com
  15. 15. 79 percent: Have own technology budget 27 percent of tech spend: Outside of IT 43 percent: Technology development is too slow 15 Marketing is a Perfect Example Michael Krigsman / cxotalk.com
  16. 16. Digital Maturity by Industry 17 Michael Krigsman / cxotalk.com
  17. 17. 18 Conflicting Expectations of IT EfficiencyReduce Costs Stability / security / speed Business benefit User experience Maintain Infrastructure Drive Co-Innovation Michael Krigsman / cxotalk.com
  18. 18. Multiple Tensions
  19. 19. Digital Transformation: A Great Opportunity 20
  20. 20. Capturing Relevance Support Strategic Business Imperatives: Increase customer satisfaction Agility and responsiveness Other organizational imperatives 21 Michael Krigsman / cxotalk.com
  21. 21. Customer Experience is Central Systems of Record (Transactions) ERP CRM Finance Inventory Manufacturing Systems of Engagement (Experience) User-Centric Customer Focused Collaborative, Interactive Cloud, Social, Mobile Personalized Data Predictive Analytics 22 Michael Krigsman / cxotalk.com
  22. 22. “I’m not a transaction.” 23 Michael Krigsman / cxotalk.com
  23. 23. Larry Augustin CEO “Engagement is a measure of customer satisfaction.” 24 Michael Krigsman / cxotalk.com
  24. 24. 25 FinTech: Improving User Experience Michael Krigsman / cxotalk.com
  25. 25. The CIO Opportunity 26 Address Business Imperatives Michael Krigsman / cxotalk.com
  26. 26. 1. How well do you know where change is occurring? 2. Do you know which customer journeys matter? 3. Are your teams collaborating across functions? 4. Do you have a disciplined ‘test and learn’ approach? 5. Are your budgets tied to progress? 6. Do you have mechanisms to challenge ideas? 7. Are your people empowered to act? 8. Is your IT operating at two speeds? 9. Are you coordinating a portfolio of initiatives? 27 McKinsey: Nine Digital Business Questions Michael Krigsman / cxotalk.com
  27. 27. 28 Revenue Profit Why Digital? Michael Krigsman / cxotalk.com
  28. 28. 29 Growth Competitive Advantage Why Digital? Michael Krigsman / cxotalk.com
  29. 29. 30 CEO: 34% CIO: 27% CFO: 14% CDO: 14% Who Leads Digital?
  30. 30. 31 CIO: 69% CEO: 61% CMO: 61% CDO: 30% CIO is a Natural Digital Leader Michael Krigsman / cxotalk.com
  31. 31. 32 Vision Capability Culture Technology Measurement Digital Strategy Michael Krigsman / cxotalk.com
  32. 32. 33 Customer Experience Product Innovation Marketing and Sales Distribution Governance Across the Enterprise Michael Krigsman / cxotalk.com
  33. 33. Gartner: Third Era of Enterprise IT 34 Are You Ready for Digital? Michael Krigsman / cxotalk.com
  34. 34. Navigating the Path
  35. 35. 36 IT Value and Digital Mindset
  36. 36. IT Value in the Digital Era 37 Operational Excellence Business Collaboration Strategic Contribution Co-Innovation Lower Value Higher Value Historical Focus: Infrastructure Modern Focus: Business Outcomes Michael Krigsman / cxotalk.com
  37. 37. Traditional Digital Strategy Efficiency Innovation Culture Hierarchy Collaboration Talent Low cost High skill Technology Legacy Cloud, mobile, apps User experience “Who cares?” Mission critical IT Philosophy Default to “No” Default to “Yes” Project management Waterfall Iterative (agile) Business model Service & support Relationship & partner Digital IT Mindset 38 Michael Krigsman / cxotalk.com
  38. 38. Examples from Innovative CIOs
  39. 39. Intel: Path to Strategic IT 40 Kim Stevenson CIO, Intel Operational Excellence Collaboration Strategic Partnership Michael Krigsman / cxotalk.com CXOTalk video: http://cxo.news/1OcJRDo
  40. 40. 41 Equinix: Four Attributes of High-Performing IT Time, Budget, Results Operational Scale and Improve Processes Transformational Evolve, Adapt, Experiment Innovation Attract Great People Organizational Brian Lillie CIO, Equinix Michael Krigsman / cxotalk.com CXOTalk video: http://cxo.news/1OcJxnT
  41. 41. 1.Earn credibility 2.Go deep in the business 3.Track technology trends 4.Innovate to serve the business 42 Kroger CIO: Four Steps to IT Relevance Chris Hjelm CIO, Kroger Michael Krigsman / cxotalk.com CXOTalk video: http://cxo.news/1OcK7SG
  42. 42. 1.Predictable and visible 2.Active business engagement 3.Build business partnerships 4.Offer strategic advice 43 Red Hat CIO: Engage and Partner Lee Congdon CIO, Red Hat Michael Krigsman / cxotalk.com CXOTalk video: http://cxo.news/1OcKGMn
  43. 43. Kim Stevenson CIO, Intel / cxotalk.com 44 “There are no IT projects. They are all business projects.” CXOTalk video: http://cxo.news/1OcKRHD
  44. 44. CIO Opportunities
  45. 45. Go Beyond Technology
  46. 46. Focus on Business Talk with business counterparts Improve customer satisfaction Increase agility and responsiveness Move to the cloud (capacity and speed) Goal: Become a trusted advisor 47 Michael Krigsman / cxotalk.com
  47. 47. Support User-Led Technology Security Data integration Governance Contracts and lowering costs Strategic use of technology 48 Michael Krigsman / cxotalk.com
  48. 48. Adapt and Evolve
  49. 49. Impact of digital and cloud: Orchestrate multi-vendor delivery chains Cross-silo information flows Two-speed IT DevOps skills Iterative projects Shorter projects Dev skills replace traditional IT skills IT Must Evolve 50 Michael Krigsman / cxotalk.com
  50. 50. Business functional lead Enterprise architect Data scientist Customer experience expert Project management Change management IT account management Digital IT Roles 51 Michael Krigsman / cxotalk.com
  51. 51. Engage with Colleagues
  52. 52. Take Action Tell the Story 53 ABC: Always Be Communicating Deliver Outcomes Michael Krigsman / cxotalk.com
  53. 53. IT Organization: Sophisticated understanding of business functions Orchestrate rather than control Business Groups: Want and request IT involvement Respect IT constraints Signs of True Partnership 54 Michael Krigsman / cxotalk.com
  54. 54. 3 Strategic Partnership 2 Active Engagement 1 Operational Excellence Path to Relevance 4 Ongoing Co-Innovation 55
  55. 55. 56 CIO Relevance in the Digital Era Michael Krigsman Founder, cxotalk.com @mkrigsman mkrigsman@cxotalk.com

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