A New Approach to the CIO role by Redefining the IT Department’s Contribution to the Bottom Line
-
Upload
marcus-evans -
Category
Technology
-
view
209 -
download
0
description
Transcript of A New Approach to the CIO role by Redefining the IT Department’s Contribution to the Bottom Line
HUAWEI TECHNOLOGIES CO., LTD.
Reinvent Yourself
“Formulating a new
approach to the CIO role by
redefining the IT
Department’s contribution to
the bottom line”
Barry Lerner
CIO, Huawei Technologies
2 Copyright©2014 Huawei Technologies Co., Ltd.
What will the future hold for the CIO & IT Department?
Digitization and the value of IT to the Business
The future Role of CIOs and impact to the IT Organization
Core Focus Areas for CIOs and IT Departments
3 Copyright©2014 Huawei Technologies Co., Ltd.
We are in an
Retailers From Fixed Storefronts to Online
Health Personalized Remote Monitoring
Education Open Online Learning (MOOCs)
Banking Mobile Online Banking, PayPal
Home Surveillance
Sensor Cities
Smart Meters
Friendships are Changing
Proliferation of Smart Devices
Everyone is IT Literate
4 Copyright©2014 Huawei Technologies Co., Ltd.
We’re all talking about …..
Creating Social Networks with our Customers, Partners & Employees
The Social Enterprise
Retaining Customers & Increasing Wallet Share - Big Data, SQM / QoE
Customer Experience Mobility
Consumerization of IT / BYOD B2B and B2C Collaboration IoT / M2M
The Cloud Based Enterprise Agile Connected Efficient Cost Effective
5 Copyright©2014 Huawei Technologies Co., Ltd.
….. and all Enterprise will be
6 Copyright©2014 Huawei Technologies Co., Ltd.
Customer
Perception
Customer
Satisfaction
Customer
Loyalty
Customer
Profitability
Customer
Acquire
Customer
Fulfill
Service
Usage
Customer
Support
Customer
Optimize
Service
Design
Customer Touch Points
Delight and Serve your Customer Server our Customers
7 Copyright©2014 Huawei Technologies Co., Ltd.
How does having a happy customer
effect the profitability of your business?
Longer the relationship lower the cost
Decline over the life of the relationship
Less inclined to switch, less price sensitive
More likely to buy high margin products
Happy Customers spread the word
Satisfied Customer less likely to switch
Regular customers familiar with services & processes
Cost of Acquisition
Account Maintenanc
e Costs
Stable Sales Volumes
Increase Sales
Revenue
New Customer
Acquisition
Churn Reduction
Less Expensive to
Service
$ $ $ $ $ $ $
Example: Cost to Service a Customer Revenue Increase $
$
Server our Customers
8 Copyright©2014 Huawei Technologies Co., Ltd.
Supporting Tools
Portals, Web Sites , Content
Management - Access to Product
& Service Information
Online Self Care,
Contact Center,
Help Desk
Unified Communications, Social
Media, Office
Provisioning, Supply Chain
Automation
Purchasing Products
or Services online
Customer Data Analytics -
Understanding the Customer and
their needs
Server our Customers
9 Copyright©2014 Huawei Technologies Co., Ltd.
Collaborate with Partners to grow together
Organization
Human Resources
Technology Purchasing
Sup
po
rt
Act
ivit
ies
Inbound Logistics Operations
Outbound Logistics
Marketing & Sales Service
Pri
mar
y A
ctiv
itie
s
Materials Handling
Manufacturing Order Processing
Product Pricing, Promo
Customer Service
Collaborate with
Partners
10 Copyright©2014 Huawei Technologies Co., Ltd.
Supporting Tools
Online Self Care,
Contact Center,
Help Desk
Unified Communications, Social
Media, Office
Integration of Partner & Enterprise
Systems
Partner Contracts, Policies,
Procedures
Joint Co-Branding &
Marketing of Products
Channel Management
Partner Access to Enterprise
Information / Resources
Revenue Share,
Procurement
Collaborate with
Partners
11 Copyright©2014 Huawei Technologies Co., Ltd.
“Digital” should be central to most companies businesses… The Company becomes part of a dynamic ecosystem that connects digital resources both inside and outside the company Harnesses Digital resources to enable e.g. • Improved Customer Experience • Drive Business Agility & Take Out Cost
to maintain competitive advantage
The future of Business is
12 Copyright©2014 Huawei Technologies Co., Ltd.
Who should lead this Digital Transformation?
CEO
CMO
CSO
LOB CXOs
CIO
CIO is a business partner to the line of business (LoB), not a cost center.
An effective CMO/CSO+CIO relationship needs to be created and nurtured
13 Copyright©2014 Huawei Technologies Co., Ltd.
The Role of the CIO of the Future
Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR
Business Leaders Agile Companies
Business Leaders
IT Leaders
Expectation of Allocated Time
14 Copyright©2014 Huawei Technologies Co., Ltd.
The Role of the CIO of the Future
Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR
% Current
CIOs
Key
Metrics
15 Copyright©2014 Huawei Technologies Co., Ltd.
By 2018, 50% of business executives will view the CIO
as a Business Innovator
The CIO of the future will incorporate IT service provision and business process digitization into the “DNA” (i.e. Governance and Structure) of the company. Then the CIO will participate in sales, delivery and conducting digital conversations with customers or manage enterprise process operations, shared services, or product development.
CIO of the Future Find Time
• Finding the time to enable the Enterprise to be more agile, more global and increase revenues
Design Governance
• Governance matched to strategic goals to help free up time for strategic issues
Build New
Teams
• Build new teams and skills to undertake a transformation
Source: Center of Information Systems Research (CISR) @ MIT Sloan CISR
16 Copyright©2014 Huawei Technologies Co., Ltd.
The Role of IT is evolving to that of a Business Innovator
Source: Derived from IDC, 2013 (% = ICT spend share of wallet; left = spend today, right = desired %)
0
10
20
30
40
50
60
70
80
90
Transform the Business Change the Business Research & Explore Optimize Business
Today
Desired
0-10%
18-25% 5-25%
25-35%
0-5% 3-10%
60-80%
35-50%
CEO Focus CIO Focus Line of Business Executives
CXO IT is Business
17 Copyright©2014 Huawei Technologies Co., Ltd.
… and how Enterprises Invest in IT will change
Source: IDC Predictions
Line of Business Executives will be
directly involved in 80% of new IT investments
90% of it Investments will be evaluated in
terms of strategic goals
CIOs and CFOs will move to “zero capital” and transform
the IT financial model
18 Copyright©2014 Huawei Technologies Co., Ltd.
Additionally IT Service Consumption Models will need to
evolve; freeing up IT to become a Transformation Engine
IT needs to act as intermediaries between internal customers and all IT services (internal or external). IT becomes a service broker
Internal clouds are hampered by lack of experience and skills. Focus on Education and Automation Tools
Popular option for augmenting IT capacity and enabling DR over new data centres or a long-term outsourcing agreements
Key Challenges: •Secure & Backup Data •Support Broader range of Devices •Manage End to End Service Delivery
Traditional Computing
Hybrid IT
Hybrid Cloud
Internal Cloud
Source: IDC Predictions
19 Copyright©2014 Huawei Technologies Co., Ltd.
IT will need to focus on 4 main pillars; supporting
Internal, Partner and Customer needs
Big Data reshapes companies
Cross-industry partnerships will also grow in this area as
Telco, Retailer & Bank come together to share customer
insights
By 2016 70% of CIOs will embrace a “cloud first”
strategy
Data Center ownership will not be a priority for
the CIO by 2017
The rise of many cloud providers – Retailers, Wholesalers, Brokers
30% of all new apps development will target
mobile
CMOs will deploy mobile to reach customers
BYOD will become the
norm
Social software will be embedded in UC&C &
enterprise apps
Social will give rise to B2B2C as consumers and brands interact
20 Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 1:
The emergence of the new Cloud-Based Enterprise
AGILE &
CONNECTED
EFFICIENT &
COST EFFECTIVE
New Business & Process Demands ‒ Work Smarter , Be Flexible & Agile
Need Business & Customer Insight ‒ Data Exploding, Need Real Time
Intelligence
Need to Connect to Partners ‒ Business to Business Connect &
Communicate
Infrastructure Inflexible & Costly ‒ Respond Quickly to Business, Need
Dynamic Infrastructure
Environmental Costs Escalating ‒ Optimized & Green to Reduce
Carbon Footprint
Inefficient & Costly Operations • Respond Quickly to Business
needs, Manage IT Efficiently
21 Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 2:
Mobility and rise of the Knowledge Worker
8/4/2014
Empowerment of the Consumer Shifting Business Models require Tech Savvy always
connected employees, partners and customers
The blurring of Home & Work The Trend to Telecommute
Driving changes in how Businesses Acquire and Consume IT
Employees expectation of IT are changing
Employees are solving business problems using technology that they utilize in their personal life.
Always Connected
Technology Savvy
Multitasked Socially Engaged
22 Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 3:
The rise of the Social Enterprise – Social Networks
Source: Brian Solis Author and Media Strategist
1. Planning: “Listen to Learn”
2. Presence: “Stake Our Claim”
3. Engagement: “Dialog Deepens Relationships”
4. Formalized: “Organize for Scale”
5. Strategic: “Becoming a Social Business”
6. Converged: “Business is Social”
23 Copyright©2014 Huawei Technologies Co., Ltd.
Pillar 4:
Big Data - from Business Operations to Business Innovation
Data to Run Business
• Basic Reporting & Spreadsheet
• Hindsight based
• Manual, ad-hoc
• No version of truth
• Basic search, query, reporting and analytics
• Some automation
• Multiple versions of the truth
Information to Manage Business
Information as Strategic Asset
• Insight thru analytics, real-time
• Enhanced automation
• Single version of truth
Information to enable Innovation
Information Competitive Differentiation
• Foresight, predictive analytics
• Capabilities embedded in workflow
• Strategic insight
• Enablement of strategic business innovation
24 Copyright©2014 Huawei Technologies Co., Ltd.
Summary
In the future Business is IT – IT is intrinsic to how
Enterprises will conduct business and operate
CIOs need to lead the Transformation and become the business partner to the
line of business (LoB)…. not a cost center
The IT Department needs to be wired for Innovation
CIO’s must move from Command and Control to
Business Innovator; developing relationships with
Partners and Customers
Focus on The 4 Pillars to enable this Transformation
Thank you
www.huawei.com
Copyright ©2014 Huawei Technologies Co.,Ltd. All Rights Reserved.
The information contained in this document is for reference purpose only, and is subject to
change or withdrawal according to specific customer requirements and conditions.