5 capabilities that characterize technology innovators

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Page 1: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 0

capabilities that

characterize

technology

innovators5

Page 2: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 1

You can use these

five capabilities

as a diagnostic

framework to

assess how

“digital savvy”

your organization

is right now –

and what to

do next.

capabilities that characterize technology innovators5

Page 3: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2

capabilities that characterize technology innovators

Strategy embeddedwith digital DNA1

5

Page 4: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 3

• Senior leadership has a vision for digital

transformation

• Strategy recognizes the need to respond to digital

• There’s not a digital strategy layered on top of an

enterprise strategy – they are one in the same

• Board-level visibility into threats and opportunities

• Infuse the culture with digital DNA

capabilities that characterize technology innovators5

Strategy embeddedwith digital DNA

Page 5: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 4

Critical mass ofdigital talent2

capabilities that characterize technology innovators5

Page 6: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 5

• Develop strategic partner relationships

• Create talent pools combing a mix of internally

developed experts, external hires, strategic partner

resources, and contingent labor

• Leverage existing talent through centers of

excellence and digital acceleration teams

• Use a digital business road map to make it easier to

identify and fill talent gaps

capabilities that characterize technology innovators5

Critical mass of digital talent

Page 7: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6

3 Digital firstprocesses

capabilities that characterize technology innovators5

Page 8: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 7

• Quality measured by user experience

• Flexible and agile process development

• Multi-device, multi-mode, and multi-channel support

• Analytics-driven quality assurance

capabilities that characterize technology innovators5

Digital firstprocesses

Page 9: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 8

4 Flexible sourcingand infrastructure

capabilities that characterize technology innovators5

Page 10: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9

• New platforms must be:

• Secure enough to protect against cyber-attacks

• Resilient enough to eliminate outages and support 24/7 operations

• Agile enough to accommodate swings in demand, scaling up

or down

• Virtualize as much of the infrastructure as possible

• Support automated provisioning to improve overall

resiliency

capabilities that characterize technology innovators5

Flexible sourcingand infrastructure

Page 11: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 10

5 Governance fit for purpose

capabilities that characterize technology innovators5

Page 12: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 11

• Engage business leadership in the decision process

• Map decision rights and accountabilities to outcome owners

• Manage risks by balancing returns against level of potential

harm

• Document standards, approaches, policies, evaluation and

approval processes for digital

• Continually re-visit digital strategies and governance in light

of the changing landscape and disruptive technologies

capabilities that characterize technology innovators5

Governance fitfor purpose

Page 13: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 12

capabilities that characterize technology innovators5

Sample digital business aptitude assessment

Page 14: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 13

capabilities that characterize technology innovators5

Pace of

Adoption

Low

High

Limited Broad

Skeptic

Opportunist

Follower

Exploiter

Vision

Archetypes help you understand where you are

Page 15: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 14

capabilities that characterize technology innovators5

Business archetypes help provide contextExploiter

Attribute Value

Leadership CEO and Board

Digital Strategy Top-down, enterprise wide

Funding Enterprise level, multi-year digital business

budget

Execution Cross-functional digital business teams drive

innovation

CIO Role Visionary, consultant and collaborator

Opportunist

Attribute Value

Leadership Individual business unit heads

Digital

StrategyOpportunistic and siloed

Funding Limited, funded by individual business units

Execution Quick projects using mostly external

resources

CIO Role Supportive

Follower

Attribute Value

Leadership CEO and Board

Digital Strategy Evolving, conservative, low-risk

Funding Enterprise level for specific projects

Execution Managed centrally with mostly external

resources

CIO Role Implementer

Skeptic

Attribute Value

Leadership None

Digital Strategy None, none planned

Funding No budget for digital

Execution None or rogue projects

CIO Role Not involved

Page 16: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 15

1. Map out a digital business agenda

2. Identify your current digital business archetype and

determine if you need to change

3. Assess your digital business aptitude and perform a gap

analysis

4. Begin assembling a digital business team

capabilities that characterize technology innovators5

Four things CIOs can do to get started

Page 17: 5 Capabilities that Characterize Technology Innovators

© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 16

Get started

For further information about how KPMG can help your business,

please contact us:

Matt Bishop

Principal,

Global CIO Advisory Leader

214-840-2749

[email protected]

To learn more:

Marc Snyder

Advisory Managing Director,

CIO Advisory

978-807-0522

[email protected]

Rick Wright

Principal,

CIO Advisory

617-988-1163

[email protected]

Download: The Visionary CIO which explores how CIOs

can become evangelists for innovation in the C-suite.

Or visit the CIO Agenda website.