Redefining Boundaries Government Point of View
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Transcript of Redefining Boundaries Government Point of View
Redefining BoundariesInsights from the Global C-suite Study
Government Industry Perspective
©2015 IBM Corporation2
For this study we surveyed
industry leaders…
Chief Executive Officers (CEOs)Chief Financial Officers (CFOs)Chief Human Resources Officers (CHROs)Chief Information Officers (CIOs)Chief Marketing Officers (CMOs)Chief Operating Officers (COOs)
818 643601
1,805723657
©2015 IBM Corporation2
were from Government organizations347
©2015 IBM Corporation3
The study covers more than countries
North America
Central and South America
Western Europe
Middle East and AfricaCentral and Eastern Europe
Asia Pacific
Japan
©2015 IBM Corporation4
interviews
6%
4%5%7%
3%
2%
8%
4%
3%
3%
2%
6%
18%6%
8%
5%
3%
8%
Our respondents represent a wide range of public and private enterprises
Energy and Utilities
Media and Entertainment
Telecommunications
Consumer Products
Life Sciences and PharmaProfessional and Computer ServicesRetail
Travel and Transportation
DISTRIBUTION SECTOR
COMMUNICATIONS SECTOR
Banking and Financial Markets
Insurance
Aerospace and Defense
Automotive
Chemicals and Petroleum
Electronics
Industrial Products
Education and Research
Healthcare
Government and NGOs
INDUSTRIAL SECTOR
PUBLIC SECTOR
FINANCIAL SERVICES SECTOR
©2015 IBM Corporation5
We identified a small group of leading innovators that financially outperform: Torchbearers
Torchbearers 24%
of the total population are Leading Innovators
20%
of Leading Innovators areOutperformers; thus
5%
of the total populationare Torchbearers
*Peer level
Market Followers
Leading Innovators
24%42%34%
2% 5% 20%
*
Outperformers in revenue growth and profitability
Market perception of the enterprise
©2015 IBM Corporation6
What’s putting the world’s top executives on edge?
©2015 IBM Corporation6
“The ‘Uber syndrome’ – where a competitor with a completely different business model enters your industry and flattens you.”CIO, Transportation, United States
©2015 IBM Corporation7
So what does this mean for Governments?
2. Governments must create business environments that enable the private sector to compete in increasingly dynamic industries and contribute to economic vitality
1. Governments can leverage lessons from market leaders to help improve service delivery and transform business and operating models
©2015 IBM Corporation8
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Enabling economic vitality
Agenda
©2015 IBM Corporation8
©2015 IBM Corporation9
CxOs expect industry convergence to have the biggest impact on their business
Total CEO CFO CHRO CIO CMO COO
70%
60%
50%
40%
30%
20%
10%
0%
Industry convergence
The “anywhere” workplace
Rising cyber risk
The redistribution of consumer purchasing power
The sustainability imperative
Alternative finance and financing mechanisms
The sharing economy
Top trends to impact business (in 3 to 5 years)
©2015 IBM Corporation10
Government CxOs expect rising cyber risk and the “anywhere” workplace to have the greatest impact
Industry convergence
The “anywhere” workplace
Rising cyber riskThe redistribution of consumer purchasing powerThe sustainability imperativeAlternative finance and financing mechanismsThe sharing economy
Top trends to impact business (in 3 to 5 years)
66% 49%
50% 65%
46% 67%
43% 18%
32% 39%
25% 17%
24% 26%
Global Government
©2015 IBM Corporation11
CEOs again selected technology as the most important external force that will affect their enterprise
External forces impacting the enterprise (in 3 to 5 years)2006 2008 2010 2012 20152004
Technology factors
Market factors
Regulatory concerns
Macro-economic factors
Socio-economic factors
Globalization
People skills
Geopolitical factors
Environmental issues
2013
©2015 IBM Corporation12
Government CxOs rate budgets, people skills and geopolitical factors higher than global CxOs
External forces impacting the enterprise (in 3 to 5 years)
Technology factors
Budgets People skills Geopolitical factors Regulatory concerns
72%
15%
48%
31%
55%
72%68%
64%
51%49%
Global Government
©2015 IBM Corporation13 ©2015 IBM Corporation13
New permutations are emerging out of “old” industries
©2015 IBM Corporation14
“The biggest threat is new competitors that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland
©2015 IBM Corporation May 1, 202314 ©2015 IBM Corporation14
©2015 IBM Corporation15
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Enabling economic vitality
Agenda
©2015 IBM Corporation15
©2015 IBM Corporation16
CxOs continue to see interactions with constituents moving increasingly online…
no change
no change
Business landscape change (in 3 to 5 years)
More face-to-face interaction More digital/virtual interaction
Global Government
©2015 IBM Corporation17
…and CxOs plan to create more individualized customer experiences
no change
no change
Business landscape change (in 3 to 5 years)
More focus on customers as segments More focus on customers as individuals
Global Government
©2015 IBM Corporation18 ©2015 IBM Corporation18
…against of the global sample
of Government CxOs plan to expand their partner network
©2015 IBM Corporation19
CxOs in general see a need for more decentralized decision-making – Government CxOs are mixed
no changeMore centralized decision-making More decentralized decision-making
Business landscape change (in 3 to 5 years)
Global Government
©2015 IBM Corporation20
How to prepare for the new digital competition
Decentralize and delegateDelegate all but the most important decisions to the people closest to your customers
Share to shineRatchet up plans to form new partnerships and share key resources with partners
Seize the middle spaceLook to become the linchpin in networks where other companies reach their customers
©2015 IBM Corporation20
©2015 IBM Corporation21
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Enabling economic vitality
Agenda
©2015 IBM Corporation21
©2015 IBM Corporation22
“The hardest thing is working out whether what’s happening is hype, trend or tsunami.”Faik Açıkalın, CEO, Yapı Kredi Bankası, Turkey
©2015 IBM Corporation22
©2015 IBM Corporation23
CxOs see cloud and mobile having the greatest impact on their business in the future
Cloud computing and services
Mobile solutions
Internet of Things (IoT)
Cognitive computing
Advanced manufacturing technologies
New energy sources and solutions
Bioengineering
Man-machine hybrids
Technologies revolutionizing business (in 3 to 5 years)
63% 79%
61% 72%
57% 54%
37% 38%
28% 13%
23% 17%
12% 6%
10% 5%
Global Government
©2015 IBM Corporation24
“There’s no one technology that matters most. It’s connecting the dots between
them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States
©2015 IBM Corporation24
©2015 IBM Corporation25
IT security has emerged as the top risk; Government CxOs are even more concerned
68% 83%
36% 36%
35% 30%
35% 26%
30% 35%
27% 29%
25% 11%
24% 26%
Global Government
IT security risks
Reputational damage
Financial risks
Regulatory compliance violations
Loss of intellectual property
Extended periods of downtime
Data tampering
Workforce disruption
Future risks (based on next “wave” of technology)
©2015 IBM Corporation26
CxOs rely mainly on conventional techniques to identify new trends – Governments are no exception
Brainstorming Predictive analytics
Simulations Prescriptive analytics
Crowd-sourcing Cognitive computing
Internal tools and techniques to identify and explore new trends and technologies
Global Government
©2015 IBM Corporation27
Government CxOs look to external thought leaders for insight; less than half rely on customer feedback
External thought leaders
Customer feedback
Market research firms and analysts
Competitors
Companies in adjacent industries
Blogs and social media sites
Traditional media
55% 69%
51% 45%
50% 42%
47% 26%
39% 32%
29% 30%
21% 41%
Global Government
External sources to identify and explore new trends and technologies
©2015 IBM Corporation28
Torchbearers pay greater attention to customer feedback than CxOs in Government…
External sources to identify and explore new trends and technologies
Customer feedback
GovernmentGlobal Torchbearers
©2015 IBM Corporation29
… and they place far more weight on next generation technologies than Government CxOs
Cognitive computing Advanced manufacturing technologies
New energy sources and solutions
GovernmentGlobal Torchbearers
Technologies revolutionizing business (in 3 to 5 years)
©2015 IBM Corporation30
How to create a panoramic perspective
Form your own futures squadSet up a specialist forecasting team, equipped with the right technologies and skills
Cultivate your cognitive capabilitiesLook to cognitive and predictive analytics capabilities to improve confidence levels in forecasts
Take an ecocentric view of the world Leverage the collective abilities of your ecosystem to better read – and prepare for – the future
©2015 IBM Corporation30
©2015 IBM Corporation31
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Enabling economic vitality
Agenda
©2015 IBM Corporation31
©2015 IBM Corporation32 ©2015 IBM Corporation32
PartnershipsProduct/service portfolio
Operating model
Strategic direction
Customer segments
Delivery channels
Revenue model
“Disruptive technologies could change the fundamentals of our business.”
Kazuo Hirai, CEO, Sony Corporation, Japan
©2015 IBM Corporation33
Government CxOs believe technology will force them to reassess most aspects of their business
Product/service portfolio
Operating model Partnerships Delivery channels Revenue model Customer typesor segments
Parts of the business most impacted by technology
Global Government
©2015 IBM Corporation34
of global CxOs are experimenting with different business models or thinking of doing so
©2015 IBM Corporation34
©2015 IBM Corporation35
When Government CxOs explore new business models, “open” and “platform” are the top choices
Open(ecosystem)
Platform Integrator Freemium Razor and blade Long tail
Business model types (experimenting with or considering)
Global Government
©2015 IBM Corporation36
“Uber has a market cap that exceeds the market cap of all the car rental companies
combined, and it’s only an app.”CMO, Transportation, United States
©2015 IBM Corporation36
©2015 IBM Corporation37
Nobody said it would be easy: CxOs face many obstacles when deploying new business models
©2015 IBM Corporation37
©2015 IBM Corporation38
Torchbearers are leveraging innovative business models; governments are embracing “open” models
Open(ecosystem)
Platform
Business model types (currently using)
GovernmentGlobal Torchbearers
©2015 IBM Corporation39
… and whether launching a new business model or product offering, Torchbearers prefer to be first
Preference to reach the market first
GovernmentGlobal Torchbearers
©2015 IBM Corporation40 ©2015 IBM Corporation40
How to be first, or best
Investigate unfamiliar territoryLook to unrelated industries and organizations for completely new and different ideas
Go offline to test for the bestSet up an innovation center outside the current organization structure
Create – and capture – the momentOnce you’ve decided to launch a new business model, product or service, move fast
©2015 IBM Corporation41
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Enabling economic vitality
Agenda
©2015 IBM Corporation41
©2015 IBM Corporation42
The public sector must create business environments that enable the private sector to thrive
Source: Improving economic competitiveness and vitality: A smarter approach to economic development. IBM Institute for Business Value. October 2013.
©2015 IBM Corporation43
Key takeaways to enable economic vitality
Understand your clients’ value chains and keep your finger on the pulse
Collaborate with private sector leaders to better understand their needs
Ensure your education ecosystem is coordinated and agile
Embrace open data initiatives to encourage and enable innovation
©2015 IBM Corporation44
What’s next?
©2015 IBM Corporation45
We invite you to continue the conversation
ibm.com/csuitestudy
©2015 IBM Corporation45
Redefining Boundaries
Insights from IBM’s Global C-suite Study
©2015 IBM Corporation