presented by: how strategic cios are changing the dynamics of the business enterprise phil weinzimer...

Presented by:

How Strategic CIOs Are Changing The Dynamics of the

Business Enterprise

Phil WeinzimerPresident, Strategere Consulting

Tuesday November 4, 2014 10-11am

Breakout Session I

Phil Weinzimer

©2014 Strategere Consulting

Strategere Consulting


Implication Theme

• Consumerization of IT

•CIOs & IT Partner in Business Teams

• IT needs to develop business skills to collaborate in business teams that create new markets and competitive opportunities.

•Increased Pressure to Increase Pace of Change

• IT organizations need to improve throughput/ organization agility

•Role of CIO / IT

•Play an important strategic role in leveraging information and technology for competitive advantage

•Consumers demand new/information rich products and services, which impact business personnel across the entire value network.

Today’s Realities

Forewords

Rob Carter – CIO, FedEx

Filippo Passerini-CIO, P&G

Valu

eStrategic IT Organization

Transformation Phases4. Leverage Technologies

Strategically to Innovate Value

3. Implement Initiatives to Improve Margin (Sales / Cost)

2. Understand the Business, Focus on User Experience, and Improve Business Skills of IT Personnel

1. Deliver Commodity and Business Services Exceptionally Well


Time

6

How Strategic is Your IT Organization?Deliver Commodity and

Business Services Exceptionally Well

Understand Business, Focus on User Experience / Improve

Business Skills

Implement Initiatives to Improve Margin (Sales / Cost)

Leverage Technologies Strategically to Innovate Value


7

How Strategic is Your IT Organization?

Tactical

Bus

ines

s Va

lue

Strategic

Efficient Inefficient IT Efficiency

25 50 75 100

25

50

75

100

0

Tactical FocusInefficient Delivery

Strategic Value Delivered

Inefficiently

Tactical FocusEfficient Delivery

Strategic Value Delivered Efficiently


8


Strategic IT OrganizationTransformation Phases

You will never partner or build credibility with the business if the IT organization delivers services that disrupt daily work activities…Mike Hedges, CIO - Medtronic


9

Identify Basic

Services

Identify Key

Stakeholders

Develop Business Services

Catalogue

Develop / Execute

Work PlanSocialize

Across Enterprise

Continuously Improve

1

23

5

A Common Process to Improve Delivery of Services

67

Measure Service Delivery

• An Incremental Roadmap to Develop Exceptional Business and Commodity Services

• Incremental Quick Wins • Steps Build upon Each Other• Duration Depends on Organization

4


10

http://www.aits.org/Portals/18/WhitePapers/GTAProjectGovernance.pdf


11

Improve Project Governance

Improve Value to Georgia Citizens

As the stewards of taxpayer dollars, we need to ensure project success through a well-defined and proven governance process…Calvin Rhodes, CIO-State of Georgia

•Identifies the Key Predictors for Project Success•Proactive versus Reactive Solution

•Promotes Teaming through Active Communication via Assessment Process

Multi Million Dollars Savings to Reinvest in Innovative Projects

12


“I learned the business quickly participating in business simplification initiative, which involved all major work processes”..Mike McClaskey –CIO, Dish Network


13


“I spent time at our satellite uplink installation

where our giant 10-meter dishes link to satellites

distributing the video products customers receive

through their dishes.”

“I also spent days in a truck with an installation

technician, including a snowy, below-zero day

watching our technician install the satellite dish atop a

customer's roof and interact with the customer during

the installation process.”

“I spent days in a call center wearing a headset

and listening in on customer service calls

sitting aside a customer service agent”.

Mike McClaskey –CIO, Dish Network


14

Improving Business Skills of IT Personnel


15

BUSINESS KNOWLEDGE (Business Awareness Skills)


16

MARKET KNOWLEDGE(Strategic Product/Market Skills)


17

TECHNOLOGY PROWESS(Strategic Technology Skills)


18

CROSS COMPETENCYLeadership Skills


19

TECHNOLOGY PROWESS(Strategic Technology Skills)

BUSINESS KNOWLEDGE (Business Awareness Skills)

• Environment • Opportunities• Process Centric

• Technology Strategy / Adaptability• Organization Agility• Strategic Project Capability

Strategic IT Organization Competencies and Skills Framework

MARKET KNOWLEDGE(Strategic Product/Market Skills)

• Product Knowledge• Industry Insight• Competitive Landscape

• Vision

OrganizationCulture

•Leadership

•Communication

CROSS DIMENSIONCOMPETENCIES


20

Strategic IT Organization Competencies and Skills


21©2014 Strategere Consulting

Knowledge

How to Use a Hammer

How to Build A House

Applying Knowledgevs.

How to Measure Competencies and Skills ?

22

•Business Knowledge •Market Knowledge

•Technology Prowess •Cross Competency Skills

What is the Maturity Score of Your IT Organization Strategic Competencies and Skills?

15 15 15 15

15 1515 15


23

Business Knowledge

Market Knowledge

Technology Prowess

Cross Dimension

Average Maturity

Cost Benefit Range

MaturityLevel

1

2

3

4

25-50%

15-35%

15-35% 5-15%

Optimized

Need to Improve Knowledge and Skills

Continuous Improvement Drives AdditionalOutcomes

Greatest Opportunity to Create Business Outcomes

Skill

Kno

wle

dge

Low ValueCost Center

Valued Business Partner

Applying Skills for Business Outcomes

Inefficient

7.5

150

7.5 15

Reevaluate Knowledge and Skills Training

25-50%

15-35%

15-35%

5-15%

1

2 3

4

How to Measure Your IT Organization Strategic Competencies and Skills


24

Strategic IT Organization Maturity Assessment – Summary6 Month Assessment Compared to 2 Year Assessment


25



21st-century CIOs have a dual responsibility: driving down costs and creating new business value. Managing this seeming dichotomy is the domain of top business executives, and CIOs everywhere are learning to step it up …Randy Spratt, Executive Vice President, CIO/CTO - McKesson

26

Increase the Speed of Integrating Acquired Businesses

12 Weeks 3 Weeks

75% Improvement

$$$ Benefits Realization

The team documented the information into a "process play book," defining the specific processes, work activities, and artifacts used by all McKesson departments for integrating actions.

“We need to improve the integration process. The faster we integrate, the sooner we will derive the economic benefit”


27


4. Leverage Technologies Strategically to Innovate Value

Value comes from seeing what customers need and delivering it…..James McQuivey, Forrester Research



“Our role is to help the business make well-informed business decisions”

Filippo Passerini-Group President-Global Business Services Group President, Chief Information Officer, P&G

28

Inaugural Recipient, Fisher-Hopper Prize for Lifetime Achievement in CIO Leadership, UC-Berkeley’s Haas School of Business, 2012


“What Matters is What is Changing”…Filippo Passerini

Analytics: The New Path to Value; MIT Sloan Management Review; Research Report; Fall 2010; October 2010;' http://sloanreview.mit.edu/reports/analytics-the-new-path-to-value/


29

Historical trend analysis / forecasting / standardized reporting

•Data Visualization•Simulation•Scenario Development•Analytics•Modeling


http://sloanreview.mit.edu/reports/analytics-the-new-path-to-value/


Create Information Democracy Competency

•Debating data accuracy creates wasted energy. Employees around the world make decisions every day.

“By having access to the right data at the right time, we can make informed decisions and address the needs of our customers and consumers."

30

•Changed the name of IT organization to Information Decision Solutions (IDS) to focus on value-added solutions

•Develop a Digitize, Visualize, and Simulate data strategy to manage, display, and model data.


31

DecisionCockpits


Develop a Digitize, Visualize, and Simulate data strategy to manage, display, and model data.

Digitize

Tom Davenport -HBR; http://blogs.hbr.org/2013/04/how-p-and-g-presents-data/


32



Virtualize The Virtual Shelf


34


"Kids brains are wired differently than those of previous generations. They live in a world centered on technology”

“We wanted to create an experience leveraging technology to innovate value for our customers”

David Finnegan, CIO


35


“When you talk about innovation, it's often difficult to really understand the concept unless you can actually experience it.”

David Finnegan, CIOCub Advisory Board


36


Love Me Station

Hear Me Station

Fluff Me Station

Earned Friendship Station

The Store of the Future


37

Valu

e





Time

Summary



Questions

Phil [email protected]

www.strategere.com


http://www.strategere.com/

presented by: how strategic cios are changing the dynamics of the business enterprise phil weinzimer...

Documents

business skills

business teams

business services catalogue

exceptional business

delivery of services

impact business personnel

pg slide

strategic cios