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

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]


® 2013 Dachis Group 3

What will IT look like at the end

of this decade?

What should it achieve?

(cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group

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%


Dachis Group

The way we engage is changing

5

Usage delta on common workplace communications tech


Dachis Group

A generation of technology is shifting...

6


Dachis Group

A perfect storm, happening almost all at once

7


Dachis Group

From the outside, disruption has arrived


Dachis Group

Technology has led to an era of unprecedented productivity

9


Dachis Group

But is this coming from CIO budgets?

10


Dachis Group

Is IT leading innovation today?

11


Dachis Group

Our Service Delivery Models Aren’t Keeping Up

12


Dachis Group

Yet 60% of CIOs believe they should be driving growth and productivity.

13

Source: Deloitte Survey, 2011


Dachis Group

The CIO Role Is Under Pressure in the C-Suite

14

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


Dachis Group

Partly Because There’s Too Much To Do Now

15

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


Dachis Group

And the CIO’s sub-roles are conflicting

16

Source: Ray Wang, Constellation

business continuity

business innovation


Dachis Group

The Backdrop:Digital Priorities ofBusiness Leaders for 2013

17


Dachis Group

But technology change is happening faster than ever before

18

Tablet

The tablet is the fastest adopted mainstream technology in history


Dachis Group

Workers

19

IT

Another Way ofLooking At This

World

(Not To Scale)


Dachis Group

New Digital Engagement Channels Are Now The Focus

20

And wherethe value is...


Dachis Group

The channel shift has been global

21

From: Social Business By Design, 2012

1.3 billon

people


Dachis Group

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

Print

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


Dachis Group

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

Human Population Growth


Dachis Group

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


Dachis Group

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


Dachis Group

Driving systemic changes in business and IT

27


Dachis Group

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


Dachis Group

How Emergent IT Might Look

29

® 2012 Dachis Group

The Near Future of Business & Tech

30


Dachis Group

The Types of Business Change Today

31

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


Dachis Group

We have to design IT for tomorrow’s worker

32

Source: Cengage


Dachis Group

As we move to community-led workplaces...

33

• 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


Dachis Group

Workforce engagement is the challenge

34

The CIO opportunity: In most companies, the majority of employees are not well engaged


Dachis Group

Yet the benefits of better engagementcould not be more clear...

35


Dachis Group

The management view of engagement

36


Dachis Group

A physical view of the future engaged workplace

37

...designing the workplace experience around personas


Dachis Group

The case for building more engaging workplaces

38

Source: AON

Only in North America is engagement declining


Dachis Group

So perhaps the most significant change...

39


Dachis Group

Mobility is the future of service delivery

40

Smart mobile out-shipped PCs in 2011.Tablets alone will outsell PCs this year.


Dachis Group

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

41


Dachis Group

Mobile Internet Ramped Up Faster ThanDesktop Internet by 10x

Source: Mary Meeker, Morgan Stanley

® 2013 Dachis Group. Confidential and Proprietary

Dachis Group

But Channel Fragmentation Is Now The Norm

43

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

+


Dachis Group

The Risks of Inaction on Mobile Engagement


Dachis Group

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


Dachis Group

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


Dachis Group

47

App Stores: The new IT competitor

Business Developer Ecosystem

Applications

CustomerEcosystem

App Store

cultivate

create

build

usebuy

ROI

use

networkeffect

commitment

Reach

Richness


Dachis Group

Opportunity - The Stories

• Augmented Reality • Real-time Translation• The “Taxi” Button• Multi-point Video Conferencing• The CRM “lite” app & “walking the line”• Business intelligence


Dachis Group

Wearable Work Tech

Hitachi Business Microscope Google Glass

Enterprise Smart Watches


Dachis Group

Machine Brain Interfaces


Dachis Group

The Internet of Things: Everything will have an IP address


Dachis Group

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


Dachis Group

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


Dachis Group

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

E-mail

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


Dachis Group

Hundreds of public social networks...

55...channel fragmentation


Dachis Group


Dachis Group

21% increase in bottom line in Q4 2011


Dachis Group

Organizations that extensively use social media have 1.6 times higher profit growth.

-Frost and Sullivan


Dachis Group

The benefits of social engagement

59


Dachis Group

Fully social organizations get outsized benefits

60

Source: 2011 McKinsey Web 2.0 Survey

3,103 large firms represented in total


Dachis Group

The biggest challenge: Engaging at scale

61


Dachis Group

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

62


Dachis Group

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.”

63

Simple Fast Easy

And WorksThe Way

They Want It To

DIY


Dachis Group

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

64


Dachis Group

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.

65

1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes

VisibleKnowledge Us


Dachis Group

“Information overload is not the problem. It’s filter failure.” - Clay Shirky

66


Dachis Group

67


Dachis Group

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

68

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

® 2012 Dachis Group

So. How Do We Get There?

72


Dachis Group

For IT, tech change today is nearly unsustainable

73


Dachis Group

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


Dachis Group

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


Dachis Group

We Must Become Resilient to Constant Change

76

There is great economic and social value in achieving this (in pink above)


Dachis Group

How do we design for loss of control?

• “Make change an integral function. Native.” - JP Rangaswami

77

growthrefinement

disruptionrenewal

cycles ofchange

frequentadaptivecourse

corrections

Dachis Group

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.


Dachis Group

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

79

http://socialbusinessbydesign.com



Thank [email protected] | @dhinchcliffe



the new cio mandate | asae tech conference 2013 keynote by dion hinchcliffe

Technology

social media

dachis group

2013 dachis

social business

rights reserved

creative commons

hinchcliffedachisgroup

geologic survey