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© Copyright 2013 Innosight LLC© 2019 Innosight Consulting, LLC and/or its affiliates

Building New Operating Models: the Art and Science of Digital Execution

September 2019

© 2019 Innosight Consulting, LLC and/or its affiliates 1

CIO EDGE: WHAT ARE YOUR BARRIERS TO SUCCESS?

“Internal conflict, legacy, budgets, inability to transform and unclear ROI are the five reasons

for CIOs’ IT initiatives to fail or to be dismissed.”

© 2019 Innosight Consulting, LLC and/or its affiliates 2

ANALYSIS

ALIGNMENT

ACTION

Lack of leadership alignment: Companies can’t manage the cadence of solution development and alignment

© 2019 Innosight Consulting, LLC and/or its affiliates 3

Growth and transformation are a major part of the CIO agenda. . . But what do they mean?

© 2019 Innosight Consulting, LLC and/or its affiliates 4

CUSTOMERS

IT INFRASTRUCTURE

AREA 2 (EXPERIENCES)DIGITIZE EXTERNAL STAKEHOLDER INTERFACESCreate better end-to-end stakeholder experiences through connectivity, data and automation

AREA 3 (GROW & TRANSFORM)DISCOVER & SCALE DIGITAL

BUSINESSES1.Producer offering digital

products or services2.Platform facilitating

exchange of value

AREA 1 (OPERATE & OPTIMIZE)DIGITIZE CORE PROCESSES

Lower costs and increase efficiencies by capturing data and automating processes

DATA

Companies must be clear about the priorities of their digital strategy

© 2019 Innosight Consulting, LLC and/or its affiliates 5

© 2019 Innosight Consulting, LLC and/or its affiliates 6

Priority JOBS are both important and high value

+Priority Job

=IMPORTANT

Failure to satisfy the job has significant

consequences

HIGH VALUE

A large number of customers can pay a

reasonable amount to satisfy this job

ORa small number is

willing to pay a lot to satisfy the job

Customer evaluate solutions to their JOBS to be done based on dynamic performance criteria that changes as certain

performance criteria becomes commoditized

© 2019 Innosight Consulting, LLC and/or its affiliates 7

The parable of the white sneakers. . .

© 2019 Innosight Consulting, LLC and/or its affiliates 8

The parable of the microwave. . .

© 2019 Innosight Consulting, LLC and/or its affiliates 9

“Jobs to be done is

all we use…[we]

have been pushing

it for 3 years across

the organization

and at the board

level."Jack Dorsey

Cofounder and CEO,

Twitter and Square

© 2019 Innosight Consulting, LLC and/or its affiliates 10© 2018 Innosight Consulting, LLC and/or its affiliates 10

(what is done)

(why it is done)

(how it is done)

DISRUPTION:A NEW WAY TO SOLVE AN OLD PROBLEM

(by leveraging business models and technology and attacking form below)

© 2019 Innosight Consulting, LLC and/or its affiliates 11

Innosight’s Dual Transformation Framework provides a powerful lens to categorize Area 3 initiatives

How We Do It(Business model)

What We Do

Current Different

Current

Different

Core A

BAdjacency

A BWhat capabilities or assets will

we leverage?

Core

C

© 2019 Innosight Consulting, LLC and/or its affiliates 1212

© 2019 Innosight Consulting, LLC and/or its affiliates 13

Real leadership alignment around new growth is both critical and rare

Optimists Vs. Pessimists Walk the LineState Your Case

UNITE YOURSENIOR TEAM

© 2019 Innosight Consulting, LLC and/or its affiliates 14

If we wait for perfect information, we will have no freedom of action

Kissinger’s Cross

TimeThe Patient Visionaries

The Deliberate Innovators The Market

© 2019 Innosight Consulting, LLC and/or its affiliates 15

What is the most important word in innovation ?

© 2019 Innosight Consulting, LLC and/or its affiliates 16

THANK YOU

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