CIO Relevance in a Digital World

1
CIO Relevance in
the Digital Era
Michael Krigsman
Founder, cxotalk.com
@mkrigsman
mkrigsman@cxotalk.com

Relevance
Challenges
Navigating the Path
Opportunities
2

Relevance:
Today’s IT
Challenge

4
Most IT
Organizations
Believe they
Serve Business
Needs

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
Does the CIO Impact Innovation?
CIO / CTO: 52%
Others: 20%
Strong Impact

/ 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
How Business Decision Makers View IT
Collaborate with
business: 43%
Efficient support: 40%
Deliver projects on
time: 39%
IT Capabilities

/ cxotak.com 9
CFO: Does IT Benefit Us?
Agree: 28%
CFO Routinely
Realizes IT Benefit?

10
CFO: Is IT a Competitive Advantage?
Primary competitive
advantage: 10%
CFO View of IT

11
Digital
Transformation:
The Great
Disruption

Technology sophistication
Social media
Universal connectivity
Powerful devices
Digital Proliferation
12

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

Technology Budgets Outside IT
14

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

Digital Maturity by Industry
17

18
Conflicting Expectations of IT
EfficiencyReduce Costs
Stability / security / speed
Business benefit
User experience
Maintain Infrastructure
Drive Co-Innovation

Digital
Transformation:
A Great
Opportunity
20

Capturing Relevance
Support Strategic Business Imperatives:
Increase customer satisfaction
Agility and responsiveness
Other organizational imperatives
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

“I’m not a transaction.”
23

Larry Augustin
CEO
“Engagement is a measure
of customer satisfaction.”
24

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FinTech: Improving User Experience

The CIO Opportunity
26
Address
Business Imperatives

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

28
Revenue
Profit
Why Digital?

29
Growth
Competitive Advantage
Why Digital?

30
CEO: 34%
CIO: 27%
CFO: 14%
CDO: 14%
Who Leads Digital?

31
CIO: 69%
CEO: 61%
CMO: 61%
CDO: 30%
CIO is a Natural Digital
Leader

32
Vision
Capability
Culture
Technology
Measurement
Digital Strategy

33
Customer Experience
Product Innovation
Marketing and Sales
Distribution
Governance
Across the Enterprise

Gartner: Third Era of Enterprise IT
34
Are You Ready for Digital?

36
IT Value and
Digital Mindset

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

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

Intel: Path to Strategic IT
40
Kim Stevenson
CIO, Intel
Operational
Excellence
Collaboration
Strategic
Partnership
CXOTalk video: http://cxo.news/1OcJRDo

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
CXOTalk video: http://cxo.news/1OcJxnT

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
CXOTalk video: http://cxo.news/1OcK7SG

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
CXOTalk video: http://cxo.news/1OcKGMn

Kim Stevenson
CIO, Intel
/ cxotalk.com 44
“There are no IT
projects.
They are all
business
projects.”
CXOTalk video: http://cxo.news/1OcKRHD

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

Support User-Led Technology
Security
Data integration
Governance
Contracts and lowering costs
Strategic use of technology
48

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

Business functional lead
Enterprise architect
Data scientist
Customer experience expert
Project management
Change management
IT account management
Digital IT Roles
51

Take Action
Tell the Story
53
ABC: Always Be Communicating
Deliver Outcomes

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

3
Strategic
Partnership
2
Active
Engagement
1
Operational
Excellence
Path to Relevance
4
Ongoing
Co-Innovation
55

56
CIO Relevance in
the Digital Era
Michael Krigsman
Founder, cxotalk.com
@mkrigsman
mkrigsman@cxotalk.com

CIO Relevance in a Digital World

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