Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Digital Enterprise: CIO perspectives

231 views

Published on

In February 2014 MWD Advisors carried out an online survey with a group of 41 CIOs and other IT leaders. Only genuine IT leaders’ responses were counted.
We asked this group questions about their current maturity in different Digital Enterprise enabler/ingredient areas, and their investment priorities among those same areas. We also asked them to tell us where they thought the value from each area would come from.

Published in: Leadership & Management
  • Be the first to comment

  • Be the first to like this

The Digital Enterprise: CIO perspectives

  1. 1. The Digital Enterprise: CIO perspectives May 2014 Neil Ward-Dutton All programmes Free report
  2. 2. Table of Contents page page page page Towards the Digital Enterprise How CIOs see things About the survey Your next steps 2© MWD Advisors 2014 3 8 23 25
  3. 3. Towards the Digital Enterprise Whether we know it or not, Digital technologies are changing our customers’ and stakeholders’ expectations; changing the art of the possible in business; and changing every commercial organisation’s competitive landscape. A proactive and strategic embrace of Digital technologies throughout an organisation, in order to counter competitive headwinds and meet market expectations, is what the ‘Digital Enterprise shift’ is all about.
  4. 4. Hyper-connectivity drives customer expectations We live in a world where information and communications technology is arguably the most potent force driving change. At the core of what’s happening is the proliferation of connections between people, organisations and goods and services, and the spread of ideas and expectations. From a business perspective, unpredictability is the outcome we all need to get our heads around. The accelerating global spread of ideas and expectations means that attempting to create a competitive position based purely on the price of goods or services that you offer, or on product features and functions, is increasingly difficult. Delivering sustainable competitive differentiation has to be about more than products and price – it has to also be about aiming to deliver the best possible experience to each customer. 4© MWD Advisors 2014
  5. 5. Digital expectations, digital disruptors Large organisations in particular are becoming orchestrators of many disparate third-party capabilities; but great customer experiences have to be integrated. Customers expect experiences that are joined up across multiple online channels, and that are personalised to their preferences. Competing on customer experiences has never been more challenging, because new digital- native players are busy disrupting industries of all kinds – from hospitality and transport (Airbnb, Lyft, Uber) to financial services (Zopa, Kickstarter). With no legacy infrastructure to hold them back, these digital natives are moving at speeds most large companies can scarcely dream of. To compete more effectively, established organisations have to be prepared to make the shift to a Digital Enterprise operating model. 5© MWD Advisors 2014
  6. 6. What is a Digital Enterprise? The vast majority of organisations large and small are already ‘digital’ to some extent – they use digital technologies to help with administrative work, communicate internally and externally, present their businesses to customers through websites, and so on. However, a Digital Enterprise takes a ‘digital-first’ approach – encouraging pervasive use of digital technologies to conduct, manage and govern business activities. This shift is currently being accelerated by cloud, social, mobile and big data technology trends, as well as the deep adoption of these trends by new, disruptive online businesses. A Digital Enterprise is a business in which digital technologies are strategically exploited to maximise global effectiveness, efficiency and responsiveness. Digital technologies power the co- ordination of work, the creation and use of operational and management insights, and the sharing of knowledge – at scale, across boundaries, and in a highly integrated way. Connect to your markets Deliver your products and services Manage your business CLOUD – SOCIAL – MOBILE – BIG DATA / ANALYTICS 6© MWD Advisors 2014
  7. 7. Ingredients and enablers A Digital Enterprise shift can have many starting points and undoubtedly has many enablers and ingredients. We’re particularly interested in exploring this set of 12 ingredients and enablers. Connected products and infrastructure Taking advantage of ‘Internet of Things’ possibilities Multi-channel customer and multi- channel partner and supplier interactions Customer, partner and supplier experiences that work seamlessly across online channels, including mobile and social Cloud-based services and resources Enabling you to fast-track development and change of capabilities and services Open data Offering your own business data, e.g. aggregated usage or customer data, online as a service to others Real-time analytics Using predictive models and rules to make recommendations, e.g. in sales or customer service roles or to drive dynamic offers or pricing Social collaboration platforms To drive better knowledge sharing and task co-ordination, whether internally or externally BPM and Case Management Enabling you to get critical work that spans individuals and teams done more effectively, and measure it better IT Governance, Enterprise Architecture, Portfolio Management Helping to direct and shape technology investments within fast-changing environments Design thinking Taking an ‘outside-in’ approach to designing business services that starts with customer personas and journeys Data literacy Educating employees about the value of data and tools that can be used to explore and manage it appropriately CIOs as Digital leaders Embracing Digital disruption as well as ‘keeping the lights on’ 7© MWD Advisors 2014
  8. 8. How CIOs see things In a study carried out in the first quarter of 2014, we asked a group of IT leaders about their current Digital Enterprise capabilities, their investment priorities and drivers, and the factors holding them back.
  9. 9. Investment priorities and maturity Across the board, our group of IT leaders feel they have more work to do. Four areas show a particularly significant gap between current capability and investment priority: multi-channel customer interactions; the CIO becoming responsible for Digital strategies; real-time analytics; and open data (though this last factor was cited as being the lowest priority overall by the group). 0.0 1.0 2.0 3.0 4.0 5.0 Open data Data literacy Design thinking BPM and Case Management Multi-channel partner interactions Social collaboration platforms Real-time analytics Connected products and infrastructure The CIO becoming responsible for Digital strategies Cloud-based services and resources IT Governance, EA and Portfolio Management Multi-channel customer interactions Maturity Priority 9© MWD Advisors 2014
  10. 10. 0% 7% 10% 22% 22% 29% 34% 49% 0% 10% 20% 30% 40% 50% 60% Retain employees N/A Improve risk mgt Match competitors Increase profit Drive innovation Improve flexibility Increase efficiency Connected products and infrastructure Over the following pages we show how our group sees the value of each of the 12 Digital Enterprise enablers/ingredients. Creating connected products and infrastructure is seen by our group principally as an opportunity to increase business efficiency (49%), with 34% citing flexibility as the driver and only 29% citing innovation. 10© MWD Advisors 2014
  11. 11. 2% 7% 10% 22% 24% 24% 37% 44% 0% 10% 20% 30% 40% 50% Retain employees Improve risk mgt N/A Improve flexibility Increase efficiency Match competitors Drive innovation Increase profit Multi-channel customer interactions Supporting multi-channel customer interactions is seen firmly as a profit driver (44% of our group made this association), with 37% linking it to innovation. 11© MWD Advisors 2014
  12. 12. 2% 10% 15% 17% 27% 32% 32% 44% 0% 10% 20% 30% 40% 50% Retain employees Match competitors Drive innovation N/A Increase profit Improve risk mgt Improve flexibility Increase efficiency Multi-channel partner interactions When it comes to multi-channel partner (as opposed to customer) interactions our group leans much more heavily towards efficiency as being the primary benefit (44%) with 32% citing increased flexibility as a key reason to invest in this area. 12© MWD Advisors 2014
  13. 13. 2% 5% 7% 17% 24% 32% 46% 66% 0% 10% 20% 30% 40% 50% 60% 70% Retain employees N/A Match competitors Improve risk mgt Drive innovation Increase profit Improve flexibility Increase efficiency Use of cloud-based services and resources Our group strongly endorses use of cloud-based services and resources in order to drive efficiency (66%) and, to a lesser extent, flexibility (46%). 13© MWD Advisors 2014
  14. 14. 0% 10% 12% 17% 22% 27% 27% 29% 0% 5% 10% 15% 20% 25% 30% 35% Retain employees Match competitors Improve risk mgt Improve flexibility Increase profit Increase efficiency N/A Drive innovation Open data initiatives Creating open data initiatives is something our group is pretty ambivalent about, at least as yet – with 29% seeing this as something that could drive innovation but 27% identifying open data as something that has no direct relevance to them. 14© MWD Advisors 2014
  15. 15. 0% 10% 12% 29% 34% 37% 37% 39% 0% 10% 20% 30% 40% 50% Retain employees N/A Match competitors Improve flexibility Drive innovation Increase efficiency Improve risk mgt Increase profit Real-time analytics A real-time analytics investment is a Digital Enterprise enabler that our group has a wide and even spread of views about. 39% see the driver as being profit growth; 37% highlight risk management and efficiency; and 34% point to innovation as being a key driver behind investment. 15© MWD Advisors 2014
  16. 16. 2% 12% 15% 22% 27% 34% 37% 44% 0% 10% 20% 30% 40% 50% Improve risk mgt N/A Increase profit Match competitors Retain employees Increase efficiency Improve flexibility Drive innovation Social collaboration platforms Social collaboration platforms are seen by our group as being primarily about driving innovation (44%), though 37% cite improving flexibility and 34% cite efficiency gains as key reasons to invest. 16© MWD Advisors 2014
  17. 17. 7% 7% 12% 15% 22% 22% 32% 56% 0% 10% 20% 30% 40% 50% 60% Match competitors Retain employees Drive innovation Increase profit Improve flexibility N/A Improve risk mgt Increase efficiency BPM and Case Management BPM and Case Management investments are clearly seen by our IT leader group as being primarily interesting in order to drive efficiency (56%); but overall, our group showed a fairly weak level of interest in this topic – 22% indicated it wasn’t a current consideration at all. 17© MWD Advisors 2014
  18. 18. 5% 5% 7% 10% 12% 22% 51% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Match competitors N/A Retain employees Increase profit Improve flexibility Drive innovation Increase efficiency Improve risk mgt IT Governance, Enterprise Architecture, Portfolio Management Interest in IT Governance, Enterprise Architecture and Portfolio Management amongst our group quite closely matches interest in BPM and Case Management – with risk management and efficiency the most oft-cited drivers for investment. Here, risk management is highlighted by 68% of our group, and efficiency by 51%. 18© MWD Advisors 2014
  19. 19. 2% 7% 10% 12% 17% 27% 32% 44% 0% 10% 20% 30% 40% 50% Retain employees Match competitors Improve risk mgt Increase profit N/A Improve flexibility Increase efficiency Drive innovation Design Thinking Investments in Design Thinking initiatives are seen by our group as being primarily about driving innovation (44%), and secondarily about driving efficiency (32%) and improving flexibility (27%). 19© MWD Advisors 2014
  20. 20. 5% 7% 10% 15% 20% 27% 32% 39% 0% 10% 20% 30% 40% 50% Match competitors Retain employees Improve flexibility Increase profit N/A Drive innovation Improve risk mgt Increase efficiency Data literacy Investing to improve ‘data literacy’ across an organisation is seen by our group as being primarily a way to boost efficiency (39%), improve risk management (32%) and drive innovation (27%). 20% of our group, however, indicate that data literacy is not currently of interest. 20© MWD Advisors 2014
  21. 21. 15% 17% 20% 24% 29% 29% 44% 51% 0% 10% 20% 30% 40% 50% 60% Retain employees N/A Match competitors Improve flexibility Improve risk mgt Increase profit Increase efficiency Drive innovation The CIO driving Digital strategies When it comes to the CIO becoming responsible for Digital strategies, our IT leader group primarily sees this as being a way to boost innovation (51%), and increase efficiency (44%). 21© MWD Advisors 2014
  22. 22. 29% 34% 37% 51% 56% 56% 0% 10% 20% 30% 40% 50% 60% Understanding of what a business case looks like Availability of funds for investment Buy-in from budget holders Co-ordination and availability of resources to work on projects Understanding of how other businesses are moving ahead Clarity of our business strategies Moving forward We also asked our IT leader group what they need to improve in order to be able to move forward with investing in Digital Enterprise capabilities. The two most common responses were: improving clarity of business strategies (56%) and improving understanding of how other businesses are moving ahead (also 56%). Improving availability of resources to work on projects was also commonly- cited (51%). 22© MWD Advisors 2014
  23. 23. About the survey
  24. 24. A survey of IT leaders In February 2014 we carried out an online survey with a group of 41 CIOs and other IT leaders. Only genuine IT leaders’ responses were counted. We asked this group questions about their current maturity in different Digital Enterprise enabler/ingredient areas, and their investment priorities among those same areas. We also asked them to tell us where they thought the value from each area would come from. 7% of the group came from organisations with 0-50 employees; 24% from organisations with 50-1,000 employees; 41% from organisations with 1,000-10,000 employees; and 20% from organisations with greater than 10,000 employees. 8% did not provide this information. 32% of the group have a seat on the main board of their organisations; 44% report to someone on the main board; 17% are in neither position. 7% did not provide this information. 0-50 7% 50-1,000 24% 1,000-10,000 41% 10,000+ 20% ? 8% Main board 32% Reports to board 44% Neither 17% ? 7% 24© MWD Advisors 2014
  25. 25. Your next steps
  26. 26. Explore the possibilities – develop a Digital Enterprise strategy framework Deciding what to do about disruptive digital technology trends is hard – it’s really difficult to know where to start. It’s perhaps too easy to focus on one aspect of digital disruption – for example, mobile technology – and explore potential projects there. But perhaps you should be prioritising investigations into Cloud computing, social platforms, Big Data, or something else? Maybe an Open Data product or service is something that could yield value for your business? A Digital Enterprise strategy only really makes sense when you can make sense of your business mission and strategy, and tie these to digital technology opportunities and threats to create a strategy framework. If you’d like to find out how we can help you build a framework for Digital Enterprise investment exploration and investment prioritisation, please contact us at info@mwdadvisors.com. 26© MWD Advisors 2014

×