presented by: how strategic cios are changing the dynamics of the business enterprise phil weinzimer...
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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
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Phil Weinzimer
©2014 Strategere Consulting
Strategere Consulting
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©2014 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
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Forewords
Rob Carter – CIO, FedEx
Filippo Passerini-CIO, P&G
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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
©2014 Strategere Consulting
Time
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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
©2014 Strategere Consulting
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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
©2014 Strategere Consulting
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1. Deliver Commodity and Business Services Exceptionally Well
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
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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
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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
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http://www.aits.org/Portals/18/WhitePapers/GTAProjectGovernance.pdf
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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
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2. Understand the Business, Focus on User Experience, and Improve Business Skills of IT Personnel
“I learned the business quickly participating in business simplification initiative, which involved all major work processes”..Mike McClaskey –CIO, Dish Network
©2014 Strategere Consulting
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2. Understand the Business, Focus on User Experience, and Improve Business Skills of IT Personnel
“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
©2014 Strategere Consulting
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Improving Business Skills of IT Personnel
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BUSINESS KNOWLEDGE (Business Awareness Skills)
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MARKET KNOWLEDGE(Strategic Product/Market Skills)
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TECHNOLOGY PROWESS(Strategic Technology Skills)
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CROSS COMPETENCYLeadership Skills
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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
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Strategic IT Organization Competencies and Skills
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Knowledge
How to Use a Hammer
How to Build A House
Applying Knowledgevs.
How to Measure Competencies and Skills ?
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•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
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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
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Strategic IT Organization Maturity Assessment – Summary6 Month Assessment Compared to 2 Year Assessment
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Strategic IT OrganizationTransformation Phases
3. Implement Initiatives to Improve Margin (Sales / Cost)
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
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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”
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Strategic IT OrganizationTransformation Phases
4. Leverage Technologies Strategically to Innovate Value
Value comes from seeing what customers need and delivering it…..James McQuivey, Forrester Research
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4. Leverage Technologies Strategically to Innovate Value
“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
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Inaugural Recipient, Fisher-Hopper Prize for Lifetime Achievement in CIO Leadership, UC-Berkeley’s Haas School of Business, 2012
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“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/
4. Leverage Technologies Strategically to Innovate Value
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Historical trend analysis / forecasting / standardized reporting
•Data Visualization•Simulation•Scenario Development•Analytics•Modeling
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4. Leverage Technologies Strategically to Innovate 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."
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•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.
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DecisionCockpits
4. Leverage Technologies Strategically to Innovate Value
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/
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4. Leverage Technologies Strategically to Innovate Value
Develop a Digitize, Visualize, and Simulate data strategy to manage, display, and model data.
Virtualize The Virtual Shelf
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4. Leverage Technologies Strategically to Innovate Value
Business Sphere Conference Rooms
Simulate
Develop a Digitize, Visualize, and Simulate data strategy to manage, display, and model data.
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4. Leverage Technologies Strategically to Innovate Value
"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
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4. Leverage Technologies Strategically to Innovate Value
“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
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4. Leverage Technologies Strategically to Innovate Value
Love Me Station
Hear Me Station
Fluff Me Station
Earned Friendship Station
The Store of the Future
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Valu
e
3. Implement Initiatives to Improve Margin (Sales / Cost)
2. Understand the Business, Focus on User Experience, and Improve Business Skills of IT Personnel
4. Leverage Technologies Strategically to Innovate Value
Strategic IT OrganizationTransformation Phases
Time
Summary
1. Deliver Commodity and Business Services Exceptionally Well
©2014 Strategere Consulting