nz cio summit 2017: leading digital and …...keynote presentations at idc and conferenz's...

August 2017, IDC #CIO Summit 2017

IDC PERSPECTIVE

NZ CIO Summit 2017: Leading Digital and Technology Disruption

Louise Francis Monica Collier

Chayse Gorton Jefferson King

Alex Yuen Donnie Krassiyenko

EXECUTIVE SUMMARY

Keynote presentations at IDC and Conferenz's annual CIO Summit, held in Auckland in June 2017, revolved around the breathtaking speed of change in a DX (digital transformation) economy, the importance of organisational culture and how it is the customer, not the organisation that determines the value of DX. In summary the six key themes that emerged at the summit were;

1. The dawn of the “DX economy” is here: By 2022 digital and global economy will be one and

the same – nothing will not be touched. In effect, most, if not all businesses will become a

"digital native" and the global economy will be reshaped in the process. In a DX economy

speed and flexibility will be critical. Those clinging to a siloed mentality will struggle to make an

impact therefore they must learn to connect the dots within their own digital economy.

2. Delivering digital transformation requires a focus on roles, culture and diversity: The CIO’s

role is now about unleashing the talents of people and managing the ecosystem of talent on a

global scale. Despite investment in DX technologies many organisations cannot move fast

enough because the culture of the organisation does not accept change. Culture and the rich

experiences that come with diversity are ingredients in the secret sauce for organisations to

keep ahead of competitors.

3. Transformation can occur at a city or country scale: The same principals of DX that apply in an

organisation, can be applied at an industry city or country scale. London’s Fintech sector and

Palo Alto City used deliberate actions to exploit the opportunities of the DX economy through

aspirational leadership and collaboration.

4. Disruption is not the friend of linear: Society trains people, from a young age, to think in a

linear way. There is an alternative route to success – the squiggly line. It is hard to move away

from a linear approach but non-linear thinking is the way to get to edgy interesting stuff and

real results. If an organisation or person stays within their comfort zone the market will shift

and opportunities will be missed.

5. New Zealand government is showing leadership in the DX economy: Government has no

natural competitors. Regardless, New Zealand’s government has taken on the opportunity to

disrupt and transform itself and become a global leader in digital government.

6. Organisations must shift from a product centric to customer centric: Too many organisations

are still product focused with customer needs taking a backseat. Technology and DX needs to

be centered on delivering what customers need, want and expect. CIOs must never forget that

that the value must be strengthen, not weaken, the customer experience.

©2017 IDC #CIO Summit 2017 2

IN THIS REPORT

This IDC Perspective summarises the key takeaway points from the 11th annual New Zealand CIO

Summit held at SKYCITY, Auckland from June 14 to 15, 2017. Over 500 CIOs and senior IT decision

makers attended, with 65 speakers across plenary and seminar sessions. This insight draws on the

content outlined by the presenters listed in Table 1.

Speaker Title and Organisation

Frank Gens* Senior Vice President & Chief Analyst, IDC (US)

Dr. Jonathan Reichental* CIO, City of Palo Alto (US)

Leo Minervini* CIO and VP Business Affairs, Carlo's Bakery (US)

Michael Cooper* CTO BT Radianz, BT PLC (UK)

Tim Occleshaw Government CTO & Deputy Chief Executive - Service and System, Department of Internal Affairs

David Kennedy Group CIO, Transaction Services Group

Angela Nash CIO, REANNZ

John Bell CIO, Fletcher Building

Alma Hong Chief Technology & Operations Officer, Radio New Zealand

David Healy Global CIO & GM - Business Transformation, Icebreaker

Glen Willoughby General Manager – IT, Downer

Simon Kennedy Group CIO, The Warehouse Group

Liz Gosling CIO, AUT University

Junaid UR Rehman* Security Advisor, HP Inc.

Jat Sahi* Digital Innovation Lead Retail & Hospitality EMEIA, Fujitsu (UK)

Gary Baird Chief Technology Officer, Inland Revenue (IR)

Claudia Batten Regional Director North America, New Zealand Trade and Enterprise (NZTE)

Winner of the 2017 Outstanding Contribution to Technology and Business in NZ award

Richard Kay CIO, NZTE, Winner of the 2017 CIO of the Year

Nick Whitehouse CDO, MinterEllisonRuddWatts, Winner of the 2017 Emerging ICT Leader of the Year

Simon Gould-Thorpe CIO & Head of Marketing at Turners

Carolyn Algar CIO, Z Energy

* Indicates international keynote speakers


SITUATION OVERVIEW: THEMES AND HIGHLIGHTS

Theme 1: The Dawn of the “DX Economy”

A clear theme that emerged from the 2017 CIO Summit was how fast the digital transformation (DX)

economy is evolving. In his opening keynote, IDC’s Frank Gens explained how large the impact would

be over the next five years saying, “By 2022 digital and global economy will be one and the same –

nothing will not be touched.” In effect, most, if not all businesses will become a "digital native" and the

global economy will be reshaped in the process.

Changing Pace & Scale of Business

Responding to the pace and scale of change is now a reality for businesses competing in the DX

economy. But, despite the thirst for innovation, many organisations are not yet in a position to create

innovative new products and services at pace.

Connecting the Dots

What do organisations need to do to compete in this rapid innovation world? In a DX economy speed

and flexibility will be critical and those clinging to a siloed mentality will struggle to make an impact.

Several speakers brought up the concept of connections and connecting the dots, which will be

essential for survival and success in this new economy. For example;

CIO of the Year Award Alumni, Kevin Angland of Mercury and Peter Muggleston of Foodstuffs

North Island, discussed how the traditional CIO role has changed from being about the

delivery of strategy to about designing and leading strategy. There is more emphasis on

storytelling and the ability to connect the organisation's mission, vision and purpose. It is this

connection that enables people to understand the value created in the hands of both the

business and its customers.

CIOs must also determine how to unleash the talent of others, both internal and external to the

organisation. Muggleston said he considers himself "part storyteller, part street sweeper".

Storytelling is about creating direction and ambition and the street cleaning involves constantly

running ahead of the team to remove barriers to success. Angland said that it's not his role to

have all the good ideas; his role is to turn the light on to build and create connections within

people's heads.

IDC’s Frank Gens quantified the idea of connecting the dots using a Digital Innovation Graph

(Figure 1). This is a framework that organisations should use to understand how groups of

stakeholders and technologies connect together the DX dots within their organisation’s own

digital economy. It is an approach has been adopted by many innovators to illustrate complex

relationships and interactions and examples of this include Google’s Knowledge Graph and

Facebook’s Social Graph.


FIGURE 1

The Digital Innovation Graph

Source: IDC, 2017

Security and the next new attack

In this year’s security keynote address, HP INC’s Junaid Ur Rehman asked the CIO Summit audience,

“Is your printer secure?” Printers are the new edge of hackers' attacks as hackers shift their attention

to the fringe of end point devices because of inherent security vulnerabilities such as default

passwords and a lack of end point anti-virus solutions. Rehman identified the following security threats

associated with printers to illustrate the threat to all organisations:

A malicious email can come to a company's email where the OS will not run the malicious

message. But if the message is sent to printer, it will run there as printers 'speak' the same

language as computers.

Printer security has no ownership due to poor awareness of the problem. Organisations do not

include it in their policies, consultants exclude them from security audits, and print service

providers may not provide cyber-security in contracts (fix/repair closures do not include

malfunctioning due to cyber-attacks).

Organisations need to develop security policies to manage printers. All regular security processes

should be extended to printers, this includes privilege access control, incident response, patches

and firmware updates.

© IDC Visit us at IDC.com and f ollow us on Twitter: @IDC 7

DX Developers/

Digital Supply

Chain

Data

Providers

Cloud

Mega-

Platforms

Connected “Things”

Customers/

DX Use Cases

Code

Data

Relationships

Industry

Platforms/

Marketplaces

Channel/

Digital GTM

Partners


The cost of printer security is relatively low. There is no specific software, rather it is about having

a specific policy and enabling embedded security features which are often not activated during

the deployment (because no one is responsible for that).

Organisations need to learn to protect all end points. The rise in the number of often unsecured

network capable devices presents an increasing threat of being hacked at an end-point.

Theme 2: Delivering Digital Transformation – Roles, Culture and Diversity

Another theme was the impact of DX on roles within the organisation and the importance of

organisational culture and diversity in this transformation. When asked about the perceived skills

shortage, David Kennedy (TSG) asserted that there was no skills shortage, but rather it was a training

shortage that was challenging the market. Skills and talent was a consistent theme in many other

presentations. For example;

Peter Muggleston (Foodstuffs) said a key part of the CIO’s role is now about unleashing the

talents of people and managing the ecosystem of talent everywhere in the world.

Talent was identified by Michael Cooper (BT Radianz) as integral to London’s success in

FinTech. Not just leadership, industry and technology talents, but also the strong academia

presence in London.

Richard Kay (NZTE) talked about the importance of investing in the personal development of

employees, succession planning, involvement in board meetings, and challenging employees.

“Focus on culture, look after your people and genuinely connect with them as human beings.

Employees want to give back if they think they are genuinely making a difference”.

Nick Whitehouse (MinterEllisonRuddWatts) recommended giving talent a strong voice. With

the incredible talent coming out of universities it is essential that organisations support those

assets. “If you are lucky enough to be successful send the elevator back down. Be the leader

you wish you had”.

Angela Nash (REANNZ) observed that there was a shift back to roles that are multifaceted,

after years of specialization. There is now more consolidation of roles and that talks to the

diversification of the teams.

Nash also recommended encouraging to let teams to build their own communications network

and not being prescriptive. She suggested giving teams tool boxes (to remove the random

element) to select from because being inflexible can shut communications down.

Glen Willoughby (Downer), said that the single largest change in the workforce was the sheer

collaboration of the teams. This requires skills that bring teams together to move fast and at

pace. As a result, organisations are becoming a network of multidisciplinary teams.

David Kennedy (TSG) told the audience that people collaborate when they have a shared

vision. To achieve this, he referred to his six-word strategy: create time (stop doing things that

don’t add value), kill complexity and think big.

Gary Baird (IR) pointed out that roles will change and the skills relevant in today’s workplace

will not necessarily be the same. Managing services and outcomes will become more the norm

and to take your employees on the journey you will need the right skills mix for this new world.

An overarching theme of diversity is a lack of minorities in technology, which can lead to a

team of people who all think in similar ways. Muggleston said that we need to encourage

diversity and tech as a career option before young people already have predetermined ideas

about their careers. Many companies are offering graduate programmes already which is


great, but the concern is that it may already be too late by then. How do we encourage tech to

a diverse range of people at a younger age? Whilst hiring someone for their gender or race is

illegal, that is not what the diversity debate is about. Instead the need for diversity in IT teams

is not a gender or race conversation. It is a conversation about skillsets and cultural fit.

Creating Innovation Cultures

Expanding on the role of team and organisational culture, Fujitsu’s Jat Sahi explained how many

organisations, despite being able to invest in DX technologies, cannot move fast enough because the

culture of the organisation does not accept change.

He pointed out that “culture is the secret sauce for keeping ahead of competitors”. Yet too many

businesses forget that what they do is for the customer, instead acting like they are doing the customer

a favour. For example, when you get on a train everyone yells at you to get on board or the train is

leaving without you - it is about the trains and not the customers.

The path of delusion and the way of the truth

In an effort to avoid failure, organisations tend to develop a plan which is often out of date by the time it

is delivered. Building silos becomes more important than the delivery outcome objectives and in a

stable world it is easy to design silos. But, with this approach, dissenting voices are unheard and the

business lives on an opinion, holding on even when value is not there. People are constrained by roles

and they don’t change so how can you tell if someone is doing a great job?

In contrast Sahi presented an alternative: the way of the truth. This approach embraces learning

through thoughtful experiment. An organisation anticipates and accepts change with the business

reaching out for collaboration and there will be a clear purpose and passion where people take

ownership of their role in success. The culture of the organisation reflects the understanding that

people are constantly changing and creating relationships.

Digital culture is purpose, not vision driven

According to Sahi, organisations need a strong purpose or mission, not a vision. Companies like

Apple, Amazon, Google and Facebook did not know what they would do in the future – instead they

had a mission i.e. Apple “we want to make tools for the mind, for all mankind” Google “we want to

organise the world’s information” and Amazon “we want to let people find and discover anything they

want to buy online”. The reason for focusing on purpose and not vision include;

Vision has a defined end state (we want to be the biggest car manufacturer in the world) whereas

purpose focuses on customers and the ongoing journey (we want to help people travel the world).

An organisation needs to realise that they cannot decide outcomes because these outcomes are

uncertain – only the customer can decide the outcomes. In contrast to a vision-led a purpose led

approach is positive, motivating, encourages experimentation and encourages collaboration.

The future is so unpredictable, therefore setting a goal with a defined state encourages caution

and over analysis. In reality change is never this structured and organisations need to take a non-

linear approach, which was also advocated by Claudia Batten in her keynote presentation on day

two of the summit. For example, in a traditional model of change the accepted process is analyse,

think and change. But in reality people see, feel and change what is visible. Collaboration,

humanity and self-expression all determine the course of change.


CIOs need to ask themselves, “what would my customers want and am I creating the right space

for experimentation?” In the business you need to create a new world for your colleagues and

visibility of IT services allows good experiments.

People are too often put under pressure to conform. Disruption is when newcomers see and react

to the truth ahead of their competitors and incumbents. As technologists today we may need to go

further than the truth of the market to find out the truth of who we are. Look deeply at your

organisation’s common processes and roles and determine what types of thinking and conformity

are encouraged by the current structure.

Evolution of Innovation

Simon Gould-Thorpe, CIO & Head of Marketing at Turners, talked about how his organisation is going

through an evolution and is actively encouraging innovation.

Turners now actively encourages the use of cloud based tools for staff and it is now embracing a

certain level of Shadow IT, concluding that it is sometimes better to let the business find a

solution that will work for them. It means they will own it and make it work and it cuts down on IT’s

list of initiatives to be delivered.

Fixing tactical issues can have huge amounts of value in terms of how IT are perceived. These

are the low hanging fruit process issues, where the business has permanent awkward

workarounds in place. Fixing these makes life easier for people and improves their perception of

the IT department.

As an example of an innovative new service, Turners' research had discovered that people who

are time poor and looking for a premium product tend to look and buy online. As a result, Turners

created an online store called Cartopia which sells higher end vehicles. The vehicles are pre-

inspected, are delivered to the purchaser's address and there is a seven day right of return. This

means that customers can purchase online confidently.

Getting teams working more effectively

The Warehouse Group’s Simon Kennedy, provided the audience with pragmatic and actionable take

outs and tips of how to get your teams to work more effectively:

Three strikes on actions. If an action has been agreed but then more than twice in a row at check-

in the action has not been completed, then just strike it out. Sometimes you might have to do

some coaching with a team member but it is more likely that you will be decluttering yourself and

your team. If the action had been important, it would have been completed already.

Separate out long term and short term agendas. Deliberately have very separate agendas for the

short term and the long term. This creates clear space between what is important and urgent from

a short-term perspective and a long-term perspective. Rotate the short term and long term

meetings.

Write things down. This is not about forgetting stuff this is about the lost art of writing things down

and forcing yourself to articulate your ideas well. Write in prose not in bullet points. Writing things

down will allow you to distil your thoughts to get to high impact things like TSG’s David Kennedy

put forward in his six-word slogan, "Create Time. Kill Complexity. Think Big".

Use pictures. For example, to represent goals. Too often people do not get help to get skilled in

creating pictures or even recognising the value that pictures can have.

Scale Stuff. Sometimes we go after problems that do not need to be solved or we go after

opportunities which, even if converted correctly, will not be able to be scaled up. So, scale before

proceeding. This was emphasised by another retailer at the summit, Paper Plus’s Mandy


Kennedy who pointed out that the key was not to create an innovative IT solution, and then find a

problem to solve. Ultimately it is better to be led by the business for the business, rather than IT

trying to pull along the business. To achieve this, the right people need to understand and be on

board with IT projects such as the CEO.

Ask for an opinion and observe behaviour. If you ask someone you will get an opinion but this

opinion can often be very different to their actual behaviour. For example, and organisation could

ask a customer if they would like a app, the answer might be yes, but when the customer

interacts with the organisation, it becomes clear the app is not solving the customer's problem.

Frame the problem. You will start coming up with very different solutions if you reframe technical

problems as customer problems.

Assume positive intent within your people. This will help you and your organisation move forward.

Scrum Meets Students: Student Digital Workplace

Auckland University of Technology (AUT) wanted to create a new student digital workspace leveraging

Office 365 and creating innovative digital experiences – all within a 14-week window of opportunity.

AUT’s Liz Gosling, explained how they created a dedicated project team and the low numbers of

students and employees on campus over summer meant minimal interruptions. They did weekly

sprints and daily scrums with just one business owner which considerably sped up decision making.

A human centred design approach was taken using student interviews to understand how teens

work. For example, teens don't use email, they communicate using apps like snapchat and

Instagram. Young adults are also very comfortable swapping between devices and doing several

things at the same time.

Student experience workshops. One of the take outs of the workshops was that a Year 1 student

has very different needs than a Year 3 student. The project asked students to draw how they

would like their digital workspace to look.

Be tough on scope. When delivering in a constrained period you must be very tough on scope,

deliverables and what you can and will deliver.

Identify the keys to success. The project’s main success factors were the great communication, a

tight knit team and trust.

Diversity and Inclusion in IT

Carolyn Algar, CIO, Z Energy, said that there is a richness of experiences that can only be found in a

diverse team. While diversity is about the mix of people in your team and the key to making the mix

work is inclusiveness. As leaders, CIOs also need to think about how to make the workplace more

inclusive so that minority groups want to be at that workplace. Algar's tips for leaders include:

Know your biases. Consider your conscious or unconscious bias when you make decisions. For

example, there are online quizzes and tools that can determine your bias.

Make personal connections. Bias applies to categories and once you know someone it is hard to

treat them like a category anymore.

Treat people how they want to be treated. How do you know how they want to be treated?

Aligning Vision, Passion and Technology

Alma Hong from Radio New Zealand (RNZ), described how her organisation is a good example of how

a traditional broadcaster can quickly evolve to take advantage of digital platforms, to transform from a


radio broadcaster to a multimedia organisation. With a vision to create a connected and informed

nation RNZ are embracing digital leadership. For example;

Altering content in response to audience feedback. RNZ is rapidly changing way it creates

content in journalism. New Zealanders like interviews, commentary and analysis which is

demonstrated in the high levels of participation in talk back radio. If content is not stimulating

debate it is not doing its job.

Leveraging new media channels: Mobile technology plays an increasingly big part of RNZ’s

upgrades, not only for broadcasting but also capturing content. This is also enabling the audience

to take part in content creation. For example, the VoxPop app enables people to comment

through their smartphone, which can be quickly curated and played back to audiences.

Digital asset management: Visual and audio is growing very fast so RNZ need a good plan on

how to manage and support the creation of audio assets.

Strategy innovation and opportunity: Have a vision, ensure the senior management team is

engaged, contribute, stimulate, listen and translate vision to a clear technology strategy. Distill a

complex strategy into simple compelling concepts because large complex strategies are a thing

of the past.

Surround yourself with passionate people. Successful change requires people who are willing to

go on the journey with you.

Other Speaker’s References to Teams, Culture and Innovation

Culture was a recurrent theme at the core of many presentations and panel discussions. Some

discussion examples included;

REANNZ’s Angela Nash talked about the constant struggle in cultivating innovation. But this

tension is where the value is coming from. A business must focus on innovation that fits with the

organisation and give everyone voice. Organisations that set up a separate innovation team must

be aware of the inherent dangers of this approach. For example, “a complete separation of the

two teams (innovation and business as usual) won’t work because people won’t volunteer for stuff

that is boring.”

Downer’s Glen Willoughby explained how creating an innovation model is a journey with no

defined end game. But organisations must remember, the first priority is keeping the lights on and

addressing the businesses primary needs. Echoing Nash’s earlier comments, if an organisation’s

approach to innovation creates the perception of “cool kids” it will create a division amongst the

employees. Organisations need to creating a culture that enables employees to connect with the

right people. In New Zealand there is an ecosystem that enables the sharing of thoughts and the

freedom to get ideas from where-ever.

TSG’s David Kennedy told the audience to understand what is important to their business, their

team and themselves. There must be clarity to the teams by getting the message right and

providing them with confidence by “taking the bullets” for the employees and giving them the

space to innovate. Fail fast is not the ideal, it should be about learning to change direction

quickly. Agile is now an overused term. To cultivate innovation, you need to recognise that

emotion is involved and a multifaceted innovation and delivery model is needed. To foster

innovation, you need to understand the innovator and what drives them.

Kevin Angland (Mercury Energy) said the value in innovation is in solving problems or creating

opportunities. Angland said it's important to stop calling IT a 'shop' and to talk about capabilities.

Innovation is about thinking differently, bringing together different minds and thought patterns. As


a CIO, you need to create trust. Trust, when well respected, will encourage collaboration, and we

need to be inviting our partners and customers into the conversations.

John Bell (Fletcher Building) discussed how one of the outcomes of transformation had to be

around creating a place to work where employees excited about coming to work. Bell pointed out

that just doing digital things will not make organisations more digital; it's about creating great

experiences. The three critical factors to success were authentic leadership, get the culture right

and the rest will follow, and learning to walk in your customer's shoes.

Theme 3: Transformation at a City Scale

Two of the international keynote speakers discussed how their cities were maximising the digital

economy opportunity. Both Dr. Jonathan Reichantal, CIO, City of Palo Alto and Michael Cooper, CTO

of BT Radianz, talked of how deliberate actions were required negotiate this revolution, particularly

aspirational leadership.

Palo Alto: Culture Change and the Chief Inspiration Officer

Technology is changing our world in profound ways. If you are a leader today, then you are changing

the world! When a CIO is invited into C-suite he or she has to learn the C-suite and their business.

Now the tables have been turned and it is the rest of the C-Suite that has to learn the role of the CIO,

because technology is the centre of organisational change. But, Dr. Reichantal pointed out, “As

leaders we cannot do this alone. We need to hire the right people and inspire our teams.”

The definition of a start-up is where an organisation has "operating conditions of extreme uncertainty",

so almost every organisation is operating like start-ups these days due to the uncertainty of disruption.

As organisations negotiate the 4th industrial revolution things are going to get a little bit bumpy. New

business models are weights that pull you down as an established business if your business has a

culture that does not embrace change.

Dr. Reichantal said that changing culture is a deliberate set of actions and that CIOs should be asking

themselves "am I managing or leading?” and “are my employees doing stuff because they were told to

or because they want to?” Leaders have followers but managers do not. Management is doing things

right but leadership doing the right things and it is about principles. Therefore, being an inspiring leader

is about having ethics and values and consistency in how you deliver those ethics and values. Dr.

Reichantal suggested to the audience that they consider their new job as the Chief Inspiration Officer.

This requires the CIO to;

Create a Vision: Whether it be for a team of three of a team of 900. Having a vision gives people

something bigger than themselves to aspire to.

Codify your vision into everything: Into your communications, your meetings, your processes,

your interviews etc.

Show progress: Illustrate progress towards your vision to encourage and motivate your staff.

Celebrate successes.

London: Winning in a changing world

Michael Cooper, CTO of BT Radianz, said that to win in a changing world we must find the

intersections between people, places and policy. The connections that these intersections provide


open up the exchange of information. His case study was how London has become a hotbed for

Fintech innovation. Cooper said it was about finding the intersections between:

Executive insight and leadership: driving and financing innovation.

Physical characteristics: All the major London Fintech supply chain players are in Zone 1,

London’s transport services are an innovation enabler and the city’s ability to convene quickly is

an important factor.

Historical attributes: GMT puts London in an excellent position for trading from a time zone

perspective.

Talent: Not just leadership, industry and technology talents but the strong academia presence in

London. For example, the MIT (Massachusetts Institute of Technology) Media Lab collaborating

with Aspire London

Clear government policy and regulatory response: including specific legislation, taxation and visa

schemes to encourage Fintech innovation.

Disruption as the impetus for change and opportunity

Two major disruptive events played a big role in the success of the London FinTech sector;

Financial markets ‘Big Bang’ event: London’s success as a FinTech hub has disruption at its

core. The first shockwave was the “Big Bang” deregulation of London’s financial services market

in1986, which saw the city leap ahead of competing financial markets, such as New York. As a

result, financial market exports increased from £2b in 1986 to £23b in 2006. This precipitated

massive change of culture and environment in stock exchanges, particularly around the

automation of the stock exchange from manual human driven processes to an electronic

environment.

The 2008 global financial crisis: In 2008 the GFC, combined with other events (including

emerging issues in the middle east and challenges coming out of Asia), threatened to undermine

London's position in the financial markets.

How London FinTech Adapted and Thrived

Geographic advantage and collaboration with peers: Because most players are located centrally

in London its ability to convene became an incredibly important attribute. As a result, market

players were able to work together under Chatham House rules to lay out thoughts and ideas on

how they saw the future of the industry.

Leveraging emerging entrepreneurial memory: The ability to share experiences and knowledge

of successful startups and sets of people with experience of entrepreneurial initiatives.

Enabling government policy and investment. Specific legislation has been designed to enable

innovation, such as taxation systems that encourage people to invest in innovation. Secondly, the

regulatory response plays a big role. For example, London’s Financial Conduct Authority (FCA)

and the Prudential Regulation Authority (PRA) complement each other and work well together.

FCA’s role in promoting innovation: FCA’s Project Innovate has run since 2014 – has been very

successful with initiatives such as a regulatory sandbox, advice for innovators and encouraging

FinTech innovation in the UK and internationally. The regulatory sandbox has been so successful

the Monetary Authority of Singapore (MAS) is investigating a similar model.

Bank of England’s FinTech Accelerator program: This has been set to understand how FinTech

innovations and firms could be used in central banking.

Government’s FinTech Week: Bringing together industry, government and regulators to

showcase the Fintech sector’s successes and aims to attract more investment into Britain.


Globalisation: The city is always looking for the next opportunity. To do this it needs relationships

with other cities and financial hubs. It needs the best technology and it needs to be talking to

people who are doing that. Because it needs connections to scale.

Theme 4: Disruption is not the friend of Linear

Society trains people, from a young age, to think in a linear way. We tend to believe that measured

steps forward are the key to get from A to B. Claudia Batten, winner of the 2017 Outstanding

Contribution to Technology and Business in New Zealand Award provided the audience with an

alternative route to success – the squiggly line. It is hard to move away from a linear approach but non-

linear thinking is the way to get to edgy interesting stuff and real results.

Don’t forget the human element

When Batten joined NZTE as part of their change journey, she was asked to find places to disrupt,

innovate and switch things up. However, there seemed to be a lot of resistance, rather than

acceptance. It would take a conversation with one of the team members to understand why. The

person said “you were brought in to disrupt us – are you here to fix us and if you are does that mean we

are broken?” There is this fundamental human coding that makes disruption hard and unbalances

people. Disruption is about doing really edgy things and as a disruptor Batten was perceived as a

destabilising threat by the people she was trying to bring along on the journey. The next decade or two

will be defined more by fluidity than by any new, settled paradigm, so we need to ask ourselves, how

do we bring people on the journey and in a place where they are oriented to disrupt themselves?”

Don’t wait to be asked

When Harley Davidson announced its split with its advertising partner, Batten's crowdsourced ad

agency Victors & Spoils did not wait to be asked to produce a brief. It started working as if Harley

Davidson was a client, tweeting the motorcycle company about what it was doing for them. This non-

traditional approach won the agency the contract. Batten points out that one success does not always

indicate sustainability of an approach; we must test our new ways enough to be sure they will be

consistently successful. The biggest impact occurs when you step beyond executing online to push

yourselves to win business online.

Don’t let the market shift without you

Lego was given as an example of a company that got staid before it realised the market was shifting

and they were not shifting to adapt to the change. Their orientation to find what was obviously there

but never seen or thought about before. Disruption was embraced and the company reinvented itself to

regain relevancy and market leadership by re-orientating itself to find what was obviously there but not

seen before.

Don’t let linear define you

We have been trained in linear ways all our lives, from childhood, through school and beyond. We

have been taught that things happen in progressive steps that will take us from step A to B. This is

taught on such a fundamental level that it is engrained in our DNA and results in us walking away from

all the edgy stuff - linear has a great hold on us. The biggest concern is that it orients itself to removing

any risk from the creation process. We have been coded that the linear approach is where things

happen. In a startup organisation linear is useless for innovation.


Don’t forget 4 magic words

There are 4 magic words that say “I don’t know what is going to happen but I need to start

somewhere.” These words are MVP (Minimum Viable Product), pivot, beta and agile. The language is

often not correctly used – so there needs to be a lot of training needed around terms like these.

Don’t stay in your comfort zone

Mind the gaps – looking for the gaps and finding the difference between what goes right and what goes

wrong. The gaps are what allow you do something different than anyone else. Usually to move forward

requires doing something that is outside your comfort zone. Batten said, “What had impact was doing

stuff that I didn’t want to do. The real stuff that happens is when we do stuff that makes us

uncomfortable and you should make friends with that feeling.” During the CIO Leadership panel,

Richard Kay and Nick Whitehouse supported this approach for aspiring leaders. Based on their

experiences they both recommended leaders take a leap and back themselves. IT leaders need to

move out of their comfort zone and believe in the squiggly line. Every day will bring some sort of

change and IT leaders must be prepared for that. If you are too comfortable you are not learning and

the tapestry of life should make you think differently.

Don’t be afraid to make mistakes

Amazon’s CEO, Jeff Bezos is failure and mistakes oriented. He sees it as his job to find ways to make

mistakes and believes that as a company gets bigger the size of the mistakes it makes must get

bigger.

Theme 5: Digital Transformation in Government

Technology Enabled Business Transformation at IR

Inland Revenue (IR) has no natural competitors. Regardless, IR has taken on the opportunity to disrupt

and transform itself. CTO, Gary Baird, took the audience through IR’s transformation journey and how

it was connecting the dots of its ecosystem. IR is seeking to transform by leverage real time

processing, simplifying tax, more intelligent use of information and freeing up staff from transactional

tasks so they can work on and solve more complex problems. This is not just about technology

transformation but also people and processes with a focus on customer outcomes by;

Consolidating and simplifying the core tax system by using a commercial off the shelf solution

(originally the environment was 80% bespoke). Despite this it was highly configurable.

Roles will change and the skills will not necessarily be the same with a shift to managing services

and outcomes. IR need to bring employees on the journey and get the skills mix right.

Advanced analytics and business intelligence (BI) are the dark heart. IR want to automate as

much as it can and get create algorithms to answer complex questions.

IR want people to work differently in networked teams and create a culture that is hugely

customer focused, doing right thing for New Zealand and New Zealanders.

The future of digital government

DIA’s Tim Occleshaw introduced the audience to the digital revolution occurring within New Zealand

government, through its transformation projects. Occleshaw described it is a revolution because the

level of change and expectations by customers and stakeholders is unprecedented. Through the

hyperconnectivity now available, the opportunities for society and the economy are phenomenal.


New Zealand is on a journey to becoming a connected government and ecosystem. To do this the

following success factors were identified by Occleshaw as important to building a successful digital

government;

Trust. For citizens it is about enabling trust to interact with government on your terms. It is

important to remember that digital is just a way of doing things.

Culture. It is about a cultural change across government and the ecosystem. Government needs

to embrace this change and rethink and reimagine how services are delivered.

Pervasive. The future for digital is a world where citizens, businesses and others can curate their

own experience of government. As a result, experiences will become more pervasive and sticky.

Seamless. A successful digital government experience should be seamless. Future citizens will

be interacting with government without knowing that government is involved. Government will be

a facilitator of services in the background.

Collaborative. New Zealand government’s success can be attributed to its collaborative approach

and demonstrating value, not sitting on the sidelines shouting instructions to the team. Part of

the collaboration is at an international level. For example, New Zealand is part of the D5, network

of leading digital governments with the goal of strengthening the digital economy Other

collaborations include the OECD E-leaders Group (digital identity) and the Fletcher School at

Tufts (digital evolution index which shows New Zealand as standout nation).

Integrated. In 2016 SmartStart was launched, the first successful integrated digital service across

multiple agencies including the Ministry of Social Development, Internal Affairs, Ministry of

Health, Inland Revenue, Plunket and NZ Midwives.

Theme 6: From Product Focused to Customer Centric

Icebreaker’s David Healy talked on a topic that is central to the success of digital and business

transformation; customer centricity. Icebreaker shifted from a culture of a product led organisation and

needed to become a consumer focused organisation involved a brand refresh, listening to customer

stories and looking at the product lifecycle from source to shelf.

Healy stressed the importance of understanding the strategic objectives in an organisation and how

the strategic intent is articulated in the boardroom and leadership meetings. Icebreaker had become

too product focused and the customer’s needs had taken a backseat. The company then conducted an

independent value chain analysis to identify what needed to happen to become customer centric.

Mapping out the entire product lifecycle with the consumer at the forefront. Key outcomes of the

mapping exercise, were desirability of product (customers as excited for the product as the

employees) and commercial viability (the product may be desirable but not relevant at a

commercially unviable price).

Transformation must be relevant to your organisation and culture. It is important to get people

along for the journey. Icebreaker was very open with employees who had a lot of hard questions,

i.e. "will my job be safe? Will there be cost cutting?" Honesty and involvement in the process

helped improve buy in and as a result employees became the change agents. There was a sense

of pride for people involved, despite roles changing.

Seeing the wood for the trees. With 75 new ideas Icebreaker needed to decide how to deliver and

implement projects. A cull was conducted, then business cases were created to ensure the

reward matched the strategic intent and to establish if the project was worth the effort. Initiatives

were run concurrently with business as usual.


Presenting findings to the organisation: Icebreaker made a digest with several key deliverables

and delivered it to the organisation using pictures instead of large reports. An unexpected bonus

were inefficiencies that were uncovered in the process.

Continuous improvement and continuous change. Transformation is a continuing process.

Icebreaker have established dates for seasonal review and a seasonal teardown where they go to

employees and customers to establish what is working and what is not for continual improvement.

Transforming the Technology Function Across Fletcher Building

John Bell discussed how Fletcher Building is partway through its transformation journey. After 15 years

of systemic underinvestment and running on the smell of an oily rag, the need for transformation

became compelling. There was no governance, direction or standards and everyone was acting

independently. IT was not meeting the needs of the business and there was no confidence from the

board or executive team.

Fletcher Building needed to get digital, it needed governance, everyone needed to go in the same

direction and it needed to rationalise its fragmented platforms. As a result, it developed three

underpinning transformation strategies;

Fix Group Technology: starting with hygiene factors, installing an owner's mindset around budget,

developing PMO, Governance and HR functions. Creating performance management in teams.

Putting lots of leadership into this area to improve culture. There needed to be honest

conversations with employees on whether they wanted to go on the transformation journey.

Employees have to be engaged and this starts with authentic leadership.

Integrate the Enterprise: Change activity included: standardising websites, creating a single

payroll system, a single HR and single email system to create uniformity and economies of scale.

Get Digital: An innovation lab for digital apps to enable business units to grow new customers and

new revenues. It is about creating a great experience for internal and external customers.

The critical factors to success were authentic leadership, getting the culture right and the rest will

follow, and learning to walk in your customer's shoes. Ultimately, it is about solving the right problems

for your customers; do not assume you know what they want and what their customers want.

Balancing technology to deliver what customers need, want and expect

Closing the CIO Summit, Leo Minervini, from Carlo’s Bakery talked about how an intensely traditional

organisation was able to transform, whilst bringing the employees along on the journey. Since the

organisation’s syndicated television show, The Cake Boss, was launched, the business has tripled in

size. The show is now syndicated in 120 countries has been viewed over two billion times.

Digital transformation has been a catalyst for growth and enhancing the customer experience. But the

big challenge has been delivering this innovation into a business that has been around for almost a

century and very paper based.

Start Small and Don’t Boil the Ocean

The focus of transformation was not on the building of infrastructure, rather the focus was on the

business problems and challenges facing Carlo’s Bakery. Key success factors were:


Not forgetting that the value must lie with the customer and bottom line impact of any changes

that were made. Strategic buys should not about the technology; it must focus on business value

and customer experience first.

The adoption of cloud computing to allow businesses to be nimble and accelerating business

value. Because the organisation is completely in the cloud it has been able to stay ahead of the

competition and able to scale for business growth. Other tools that facilitated the transformation

included the use of agile methodology and solutions.

Learning to listen to its customers and deliver solutions based on customer base feedback.

Reducing the complexity of business. As the business grew it became harder and harder to keep

track of design requirements and documentation, which endangered the ability to deliver

customer value. A cloud based ticketing system provided the ability to learn from the data aspect.

Get data right day one. If you put dirty data in you get dirty data out. Initially there was a focus on

the outcome and how the reports looked, rather than ensuring that data was normalised,

structured and managed appropriately. A lot of executive decisions now driven by data such as

where to open new retail spaces – so you must get it right.

Be open to change and have a broad mindset. If you are too siloed in your approach you will get

in trouble. Expands your view by getting out with other mentors and other industries. Seek to

understand who is making what investments where and why.

Overcome resistance to change by putting the technology aside and focusing on the outcomes

and where it will add value to the business. There is natural resistance to change but you must

continue being persistent on where the outcome will be. When implementing any level of

technology start small, listen and see what the reaction is.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory

services, and events for the information technology, telecommunications and consumer technology

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