The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe
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Transcript of The New CIO Mandate | ASAE Tech Conference 2013 Keynote By Dion Hinchcliffe
The New CIO MandateBusiness Leadership in an Era of Disruptive Tech
® 2013 Dachis Group 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
• Chief Strategy Officer• http://dachisgroup.com
• mailto:[email protected]
• : @dhinchcliffe
Spring 2012
® 2013 Dachis Group 3
What will IT look like at the end
of this decade?
What should it achieve?
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We Live In Era of Change
4
2013 2020Lifespan of
S&P 500 Company ~15 years ~9 years
Portion of Digital Natives in Workforce 35% 75%
Speed at which data in world doubles ~2 years 3 months
Core Focus of IT Systems of record
Systems ofengagement
Percentage of ITunder CIO control 66% 10%
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The way we engage is changing
5
Usage delta on common workplace communications tech
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A generation of technology is shifting...
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A perfect storm, happening almost all at once
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From the outside, disruption has arrived
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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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Yet 60% of CIOs believe they should be driving growth and productivity.
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Source: Deloitte Survey, 2011
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The CIO Role Is Under Pressure in the C-Suite
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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
16
Source: Ray Wang, Constellation
business continuity
business innovation
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The Backdrop:Digital Priorities ofBusiness Leaders for 2013
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But 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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Workers
19
IT
Another Way ofLooking At This
World
(Not To Scale)
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New Digital Engagement Channels Are Now The Focus
20
And wherethe value is...
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The channel shift has been global
21
From: Social Business By Design, 2012
1.3 billon
people
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Yet most businesses are still immature with digital
Webinars
social mediaP2P video
online video
direct mailmobileapps
Competent Maturing
Immature
cloud
big data gamification
Mobile
Social
Web
In-Person
awareness
get arecommendation
research & learn join
learnget help
participate
interact
co-support
traditionalmedia
social media
TheEngaged Constituent
Journey
advocatevirtuous cycle
CIOs (and CMOs) Must Put All The New Pieces Together Using All Touchpoints To Engage
Today’s Stakeholders in Scale
recommend
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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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The future: The fast co-evolution of tech & business
• Technology makes all new things possible
• Society and business adopt the new tech...
• Driving new aspirations, expectations, and innovations...
• Which creates new technologies...
• Today: Cycles in years and months
• 2020: Weeks and days
25
technology
business
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Key Leadership Finding• CIOs can 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
26
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Driving systemic changes in business and IT
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A New CIO Mandate Then
• 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
and customer experiences• Enable emergent, decentralized tech change in the
organization• Don’t constrain IT, fundamentally empower- Everyone is now in the IT department- Corollary: You have many new resources to help you
28
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How Emergent IT Might Look
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The Near Future of Business & Tech
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The Types of Business Change Today
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Technological
Cultural
Structural
Process
new types of devices
smart mobility
open APIs
social media
new UXs
comfort with self-service
app stores
tech savvinesspredilection for sharing
desire for work flexibilityexpectations of
job security
virtualization of workforce
social media communities
peer production
crowdsourcing
user generated content
social business processes
networks of networks
non-hierarchicalmanagement
wearable tech
big data
community management
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We have to design IT for tomorrow’s worker
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Source: Cengage
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As we move to community-led workplaces...
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• Story of Valve: A major company that is entirely non-hierarchical and self-organized
• Story of Intuit: A company that used mass peer production with its customers to create breakthrough customer care See case study in Social Business By Design
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Workforce engagement is the challenge
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The CIO opportunity: In most companies, the majority of employees are not well engaged
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Yet the benefits of better engagementcould not be more clear...
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The management view of engagement
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A physical view of the future engaged workplace
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...designing the workplace experience around personas
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The case for building more engaging workplaces
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Source: AON
Only in North America is engagement declining
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So perhaps the most significant change...
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Mobility is the future of service delivery
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Smart mobile out-shipped PCs in 2011.Tablets alone will outsell PCs this year.
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So mobile is where engagement will happen
• Smart mobile devices outshipped PCs in early 2011
• Tablets are expected to on par with PCs this year
• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs
• Global mobile data going geometric is going to be the largest challenge to growth and use
• App stores are creating all new conduits between IT suppliers and workers
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Mobile Internet Ramped Up Faster ThanDesktop Internet by 10x
Source: Mary Meeker, Morgan Stanley
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But Channel Fragmentation Is Now The Norm
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400 social networks with over 1 million users = aggregate audience of about 1,400 million
2 billion mobile Internet users + 100 millionnext-gen smart phone users across hundreds of device types
Have Become The De Facto Primary Channels for Customer and Worker Engagement
+
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The Risks of Inaction on Mobile Engagement
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The Smart Mobility Lesson
•Mobility isn’t just about computing that can move around
•It’s a fundamental re-invention of computing
•Powerful new business possibilities now exist
•We must reinvent our businesses around what these new platforms make possible
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Why Smart Mobility is qualitatively different
• Sensors (and lots of them)• Always connected• Location awareness in 3D space• App stores• Long battery life• Always on• Touch-based interfaces• Voice control• New operating systems• Integrated usage
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App Stores: The new IT competitor
Business Developer Ecosystem
Applications
CustomerEcosystem
App Store
cultivate
create
build
usebuy
ROI
use
networkeffect
commitment
Reach
Richness
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Opportunity - The Stories
• Augmented Reality • Real-time Translation• The “Taxi” Button• Multi-point Video Conferencing• The CRM “lite” app & “walking the line”• Business intelligence
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Wearable Work Tech
Hitachi Business Microscope Google Glass
Enterprise Smart Watches
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Machine Brain Interfaces
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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
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What other changes to the tech landscape?
• Rethinking the office• Virtual spaces. They’re
back.• Unification of
communication• Mass, open
participation in business processes
• Community-centric work platforms
• The collaborative economy mobile office pods
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Key data point #2
• Social is now the dominant form of Internet communication on the planet
• Enterprises are 2-4 years behind the rest of the world.
• Yet data shows that revenue of social businesses is 20+% higher on average. Profitability is better too.
- Source: McKinsey and Frost & Sullivan
54
The Adoption Rates of E-mail, Social Networks, and E2.0
20112006
1B
750M
500M
250M
2007 2008 2009 2010
Sources:
Glo
bal U
sers
projected
ConsumerSocialNetworks
100%
75%
50%
25%
Enterprise 2.0
comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC
high estimate
low estimate
Per
cent
of
Ent
erpr
ises
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Hundreds of public social networks...
55...channel fragmentation
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21% increase in bottom line in Q4 2011
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Organizations that extensively use social media have 1.6 times higher profit growth.
-Frost and Sullivan
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The benefits of social engagement
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Fully social organizations get outsized benefits
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Source: 2011 McKinsey Web 2.0 Survey
3,103 large firms represented in total
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The biggest challenge: Engaging at scale
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The Cloud Is Increasingly Subversive
• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people
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A new mindset has arrived: Consumerization
• “It’s not so hard, I can do this myself.”• “There’s an app for that.”• “I’ll just install this myself.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.”
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Simple Fast Easy
And WorksThe Way
They Want It To
DIY
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A tidal wave of data
• 80-90% of IT information is not accessible
• The amount of information today is just a trickle compared to what it will be in 2-3 years
• It will require all new technologies and skills that IT departments don’t have
• Google Search and Analytics has taught all of us how easy it should be
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Our information landscape is now measured in millions of exabytes
• Social ecosystems are largely responsible today.• Soon it will be sensors that are the dominant data
source.• The good news: Information is no longer
submerged.• However, it is increasingly becoming an onslaught.
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1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes
VisibleKnowledge Us
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“Information overload is not the problem. It’s filter failure.” - Clay Shirky
66
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Big Data in the future workplace
• Obtain simple, easy to use business intelligence tools anyone can use
- Don’t forget Google is a big data app• Should be cross silo• Must integrate internal
and external data• Must provide actionable business-level insights,
not just raw stats• Some existing BI tools can do this• Then “Moneyball” your business processes• But brand new online services will typically bring
this to your organization
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Last year, WiseWindow, a syndicated data provider, provided its real-time social media sentiment measurement technology, Mobi, across Bloomberg's network of 300,000 desktop terminals.The Story:
The Motivation:
WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sources are truly predictive of an industry's stock prices." Their social data analysis was found to boost investment returns by over 30% annually.
Industry: Finance
In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter turned out to be the first and richest source of data, even over the official U.S. Geologic Survey.
The Story:
The Motivation:Many visualizations have been created to show how the information about natural disaster (see the Wall Street Journal example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.
Industry: Disaster Management
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
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So. How Do We Get There?
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For IT, tech change today is nearly unsustainable
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Rethinking tech adoption
• Ignoring technology change isn’t the answer
• Maintaining backlogs isn’t the answer• Giving up isn’t the answer• Proceeding in the same direction isn’t the
answer• Letting everyone do whatever they want
isn’t the answer
• Should we look at new models for IT?
74
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Facing Reality:IT is becoming pervasive and user-driven
75
• In 2000, only 10% of IT was unsanctioned or outside of central control
• Today that’s 30% and climbing quickly.• Gartner now says 90% by 2019
2000 2010
CoIT
TraditionalIT
2013
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We Must Become Resilient to Constant Change
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There is great economic and social value in achieving this (in pink above)
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How do we design for loss of control?
• “Make change an integral function. Native.” - JP Rangaswami
77
growthrefinement
disruptionrenewal
cycles ofchange
frequentadaptivecourse
corrections
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The Next Generation CIO• Empower workers and business
partners on the edge: New techfundamentally changes what’s possible
• 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.”• Identify future workforce skills, then cultivate or hire for
them.- Engagement skills of every flavor- Both IT & the business must become design thinkers- Continuously cultivate, measure, and optimize workforce
engagement• Become a change agent and an IT revolutionary. You
might not have your job in it’s current form long anyway.
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Also See: Social Business By Design
• Published May, 2012• From John Wiley & Sons• The definitive management
strategy guide and handbook on social business.
• Explores major real-world successes and how to emulate them..
• The most complete and business-focused statement on what social business is and why it’s strategically vital.
• Recently #1 in Amazon’s Hot New Releases
• Companion Web site at
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http://socialbusinessbydesign.com