Beyond the CIO/CMO - The Rise of the Chief Digital Officer | CIO Perspectives Virginia 2014 |...

(cc) 2014 Adjuvi, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe

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Beyond the CIO/CMO PartnershipThe Rise of the Chief Digital Officer

® 2014 ADJUVI 2

IntroductionDion 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:[email protected]

• : @dhinchcliffe

http://blogs.zdnet.com/Hinchcliffe

http://blogs.zdnet.com/Hinchcliffe

http://www.ebizq.net/blogs/enterprise

http://www.ebizq.net/blogs/enterprise

http://hinchcliffeandco.com/

http://hinchcliffeandco.com/

mailto:[email protected]

mailto:[email protected]

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Who will lead digital transformation in the enterprise?

What should they achieve?

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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?

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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

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Technology Leaders Must Prepare For An Era of Unprecedented Change

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2013 2020Lifespan 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 ofengagement

Percentage of ITunder CIO control 66% 10%

(cc) 2014 Adjuvi, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe

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Technology is “destroying” companies in most industries

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A perfect storm of tech change, happening almost all at once

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The Internet of Things: Everything will have an IP address


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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


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The emerging social economy...

...one third of the world economy by 2020


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Technology has led to an era of unprecedented productivity

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But is this coming from CIO budgets?

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Is IT leading innovation today?

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Our Service Delivery Models Aren’t Keeping Up

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Average IT Dept.

End state: IT as a profit center


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Yet digital is pervading the core of our businesses

16Source: MIT Digital Transformation Study, 2013


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Executives feel the urgency:

82% believe digital transformation is critical within 2 years.

With most saying they have to do it now.

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Source: MIT Digital Transformation Study, 2013


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Good news: 60% of CIOs believe they should be driving growth and productivity.

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Source: Deloitte Global CIO Survey


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But CIO Role Is Under Pressure in the C-Suite

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The Infamous Data Point: By 2017, most CMOs will spend more on technology than the CIO


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Partly Because There’s Too Much To Do Now

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Key Point: This is a minimum view of digital strategy today


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And the CIO’s sub-roles are conflicting

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Source: Ray Wang, Constellation

business continuity

business innovation


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And the “edge” of IT keeps growing into other business units

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Yet technology change is happening faster than ever before

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Tablet

The tablet is the fastest adopted mainstream technology in history


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Can we alter Martec’s Law?

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CDO?


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Is all this change worth it?Life Expectancy of S&P 500 Company Pace of Technology Change

Human Population Growth


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Workers

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IT

Another Way ofLooking At This

World

(Not To Scale)


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New Digital Engagement Channels Are Now The Focus

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And wherethe value is...


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In fact, the biggest digital challenge CxOs must solve: Engaging at scale

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OK, and channelfragmentation


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So perhaps the most significant change this shift

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And why CIO and CMO roles are intersecting

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We have to reconcile IT with systems of engagement

A job for the CDO?


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We need tech organization that can match successful digital natives

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Because most businesses are still immature with digital

Webinars

social mediaP2P video

online video

direct mailmobileapps

Competent Maturing

Immature

cloud

big data gamification


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This means CIOs and CMO are still learning to work together


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But CIOs are getting the external facing message...

Mobile

Social

Web

Print

In-Person

awareness

get arecommendation

research & learn join

learnget help

participate

interact

co-support

traditionalmedia

social media

TheEngaged Constituent

Journey

advocatevirtuous cycle

So CIOs and CMOs Must Put All These New Pieces Together Using All Digital Touchpoints To Engage

Today’s Stakeholders in Scale

recommend

Example of market-facing IT impact at the edge in public sector


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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

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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

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Mandate: Digitally enable lines of business


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Leading firms are hiring Chief Digital Officers...

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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.”


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A cross check on demand for CDOs...

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Recent Chief Digital Officer success story

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RevenueUS$ 6.2 billion

Founded:1972


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Key Roles of the Chief Digital Officer

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Maintain an easy-to-explain story for the corporate digital strategy.

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Earn company-wide commitment for the digital strategy.

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Embrace data-based experimentation.

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Connect with digital experts in the company and the broader industry.

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Speak multiple business languages (IT, marketing, strategy, finance).

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Strive for tangible and measurable results.

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Keep the strategy fresh with the latest innovations & shifts in the market.

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Maintain focus on and commitment to executing the strategy over multiple years.

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Source: Joe McKendrick, ZDNet


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Key Skills for the Chief Digital Officer

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Business Skills Marketing/Communications Tech/IT Legal,

Logistics


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How it will impact existing C-level roles

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Chief Marketing

Officer


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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

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Summing Up: Designing the New Enterprise

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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.

Beyond the CIO/CMO - The Rise of the Chief Digital Officer | CIO Perspectives Virginia 2014 |...

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Transcript of Beyond the CIO/CMO - The Rise of the Chief Digital Officer | CIO Perspectives Virginia 2014 |...