A White Paper

The CIO’s Top Three PrioritiesTransforming From Technology Leader to Business Leader

WebFOCUS iWay Software Omni

1 Introduction

2 Priority 1 – The Shifting Role of the CIO

5 Priority 2 – Data: The CIO’s Most Important Asset

6 Priority 3 – Driving Broader BI Pervasiveness

8 Bringing It Together – A Single, Fully Integrated Platform

10 Conclusion

Table of Contents

Information Builders1

Introduction

The role of the CIO is a dynamic one. New technologies and emerging innovations, combined with the ever-shifting demands of the business, make the CIO’s list of priorities longer and longer each year.

For the foreseeable future, the biggest trend will be the continuing digitization of the enterprise – the transformation of physical processes and business models into digital ones. This trend will be driven by the rapid digitization of consumer habits and behaviors. For example, a Google study found that 84 percent of consumers use search browsers on their phones for help while shopping in-stores.1 As consumer demands and preferences continue to move in this direction, organizations must follow – or risk losing business to competitors.

While this trend will likely be huge, the list of resulting CIO priorities can be narrowed down to just three prominent goals. The first involves the CIO’s shift from technology leader to business leader, with both operational and cultural responsibilities in the enterprise. The second requires the CIO to view and manage enterprise information as the organization’s most critical asset. The third calls on the CIO to place stronger emphasis on business intelligence (BI) and analytics technologies, making them more pervasive by expanding their reach across all user communities.

Many of these initiatives are already in play at many leading companies. A recent CIO survey indicates that 55 percent of organizations view information management as a necessary means for solving business existing business challenges, while 31 percent view it as a strategic priority, critical for supporting future business objectives.2 And by 2018, IDC predicts that 30 percent of CIOs of global organizations will have rolled out a pan-enterprise data and analytics strategy.3

This white paper will take a close look at these objectives and what they entail. How intelligence, integration, and integrity technologies from Information Builders can help CIOs reach these goals will also be discussed, with real-world case studies presented to demonstrate the benefits.

1 Mobile In-Store Research, Google Shopper Marketing Council, April 2013.2 “Market Pulse: Approaches to Enterprise Information Management,” CIO Custom Solutions Group, October 2012.3 Hargraves, Heather; Murray, Sarah. “IDC Reveals CIO Agenda Predictions for 2015,” IDC Research, October 2014.

The CIO’s Top Three Priorities2

The part that CIOs play in their organization is a rapidly changing one. In the past, CIOs were responsible solely for evangelizing and procuring new technologies. Transforming business processes and influencing organizational culture because of those technologies was placed in the hands of line of business and operations managers, whom the CIOs supported through technology acquisition and management.

As technology visionaries, CIOs are now uniquely positioned to take a more active role in these transformations. “If you’re a great leader, you should be able to handle the two [IT and business] agendas simultaneously,” says Forrester CEO George Colony.4

CIOs, however, need to understand that technology, operations, and culture will play equal parts in their success. They need to step out of their comfort zone of inspiration leadership based on technology vision, and get directly involved in business operations, while simultaneously acting as change agents.

Business Process TransformationWith the digitization of the enterprise, the CIO will have to take active responsibility for transforming business processes. This means, the CIO must digitize existing processes, such as adding an online version of an existing physical process, and infuse physical processes with a digital experience (for example, combining online search with in-store customer support).

In both of these scenarios, Information Builders’ solutions can foster successful business process transformation. With a robust BI and analytics platform that empowers every user with actionable and relevant information, Information Builders gives all stakeholders – from analysts and power users, to executives, managers, and frontline workers – direct access to the insights they need to enhance key operations.

Priority 1 – The Shifting Role of the CIO

4 Boulton, Clint. “CIOs Must Balance IT, Business Tech,” The Wall Street Journal, February 2015.

The City of ColumbusThe City of Columbus, Ohio, the 15th largest in the U.S., needed to improve the way it responded to 311 service calls and enable deeper analysis of service-request trends. With the help of Information Builders technologies, it created a self-service BI environment that presents data via dashboards and interactive reports. City managers now have a clearer view into the operational performance of the call center, and frontline managers can access the information they need to deliver superior service.

Business process automation is also important. Information Builders offers powerful tools that facilitate the transformation of any existing application, legacy database, or transaction into fully reusable services that aid in rapid, efficient process composition. Companies can enhance vital operations, increase staff productivity, and reduce expenses by automating key processes and workflows across the business.

Information Builders3

Driving Cultural ChangeTo achieve their goals, CIOs must drive cultural among front-line employees. Operational workers must be encouraged to adopt a digital and collaborative culture. For example, they must feel comfortable with and embrace new technologies, while helping to ensure full transparency in every step of their activities.

There are also new dynamics in customer interactions, and employees must be convinced to acclimate themselves to these changes. All information is now shared, and meant to help a customer make more informed choices between the company’s – and a competitor’s – products.

Managing Transformed OperationsCIOs must also manage those operations, once they have been transformed. This will require not only service-level agreements, performance monitoring, and reliability, but also the measurement of user satisfaction with each process – because a digitized process is a product or service, and therefore its success is highly dependent upon adoption. The management of these new, digitized processes will be very custom-centric.

Information Builders’ intelligence solutions include analytics, performance management, and other advanced capabilities that are ideal for managing transformed operations. Robust functionality empowers CIOs to closely track, measure, and manage transformed operations in real time – through dashboards, scorecards, KPIs, and more.

Schawk, Inc.A leading provider of brand management services, Schawk, Inc. relies on Information Builders’ integration and business process automation technologies to improve data-exchange processes and streamline communications throughout internal information systems. This enables clients to quickly and easily maintain product-packaging specs and enforce brand consistency and accuracy. Complex internal business processes have been fully automated, while externally, clients can better respond to packaging guidelines and stay ahead of shifting market dynamics.

ThyssenKruppThe Materials division of ThyssenKrupp embarked on a crucial purchasing initiative designed to strengthen related activities across the business. Coordinating and standardizing purchasing procedures among multiple business segments proved to be a challenge. A web-based scorecard, built on Information Builders BI technologies, allows the company to streamline and optimize processes, as well as create formal structures for purchasing-related reporting and control. This scorecard defines, records, summarizes, and presents strategic objectives and related performance indicators, increasing both visibility and accountability.

The CIO’s Top Three Priorities4

Performance management apps can be a driving force for change on the front lines. CIOs can share information about goals and related tasks and processes, and drive accountability by allowing everyone, at every level of the business, to participate in measuring achievement towards those objectives.

Ford Motor CompanyFord is successfully changing its culture with an app that provides full transparency into dealer repair trends. In just a single click, general managers at each dealership can see how their warranty repair costs compare to those of other dealers. This benchmarking enables them to make smarter decisions about repairs and replacement parts, result-ing in 40 percent fewer dealers being audited or entering Ford’s global warranty counseling process.

Information Builders5

Today’s enterprises have an abundance of data, and CIOs must learn to treat it as the most important weapon in the company’s competitive arsenal. Moving away from physical assets, into digital ones – like data – can drive greater business value. In fact, if an average Fortune 1000 company increased the usability of its data by just 10 percent, it could expect an increase of over $2 million.5

This has serious implications, but what does that mean for the CIO, who is the custodian of all this data?

As Milton Friedman once famously quipped, “The duty of managers is to maximize shareholders’ returns.” Therefore, it is the duty of the CIO to optimize the return on data. That means looking at data to, first, drive more product and service innovation. For example, all customer touch points can be leveraged to collect data not only about what people do, but why. The analysis of such data points will help identify unmet customer needs.

Priority 2 – Data: The CIO’s Most Important Asset

5 Barua, Anitesh; Mani, Deepa; Mukherjee, Rajiv. “Measuring the Business Impacts of Effective Data,” Sybase; University of Texas, September 2010.

Belcan Corporation Belcan Corporation, a provider of engineering, staffing, and other innovative outsourc-ing solutions to the manufacturing industry, is strategically leveraging the information contained in its J.D. Edwards systems to enhance project management. An intuitive dashboard allows stakeholders to more effectively track and manage projects in prog- ress, ensuring that they are completed on time and within budget so client expectations can be most effectively met.

Scherer Bros.Lumber and materials provider Scherer Bros. is making the most of customer information and other data to determine purchase patterns, maximize sales opportunities, and improve product offerings. Fresh insight has given the company the ability to predict true customer needs, empowering them to outmaneuver its competitors.

Engineering and services feedback can also be leveraged to optimize products and services. In the past, the source of many innovations was pure observation. Today, detailed data can be rapidly sifted through to illuminate usage, failures, and unmet needs.

The CIO’s Top Three Priorities6

Analysis creates insights, and insights create opportunities. That’s why CIOs need to ensure that BI and analytics permeate user communities and business processes across the entire enterprise. Success depends on the CIO’s ability to make BI and analytics pervasive and ubiquitous.

In the past, analysis was reserved for executive managers, who were directly supported by analysts – i.e., just 25 percent of employees in the enterprise. Today, BI is everywhere and for everyone. For example, a UPS driver has an analytic app helping him make routing decisions to save one mile a day. This may seem small, but when spread across the entire organization, it can translate into $50 million in savings a year.7 This type of complex analysis has become invisible, as it is embedded in a simple-to-use application. Intelligence has leaked out of the human realm into objects, thanks to sensors and embedded analytics.

What is driving this pervasiveness? On the one hand, the vast amount of data collected makes analysis more time consuming. Hence, more analysts spend time analyzing data. On the other hand, analysis is only useful if it supports decisions. The analytic insights have to be converted to an operational app that provides information to employees at the point of decision-making, like the UPS app does. Or, it must pass the decision information to another machine.

This means that the CIO has to focus on the operationalization of insights, because the more users that leverage the insights, the greater the savings that can be accumulated (like in the UPS example). In turn, this calls for a new approach – moving away from report-centric information delivery to a more app-centric environment, so that users can easily and interactively get the information they need for decision-making. The CIO would need to develop teams with skills to translate the analytic conclusions into end-user apps that change performance and behavior.

Priority 3 – Driving Broader BI Pervasiveness

AmeritasNebraska-based insurer Ameritas also deployed InfoApps to transform its business through the power of pervasive analytics. InfoApps that streamline billing, enrollment, and reconciliation processes for Group Insurance customers are the foundation of the company’s enterprise-wide self-service analytics strategy, which aims to provide thou-sands of business users inside and outside the company with access to key information.

AppvionAppvion, a Wisconsin-based manufacturer of paper coating and chemical products, replaced numerous departmental reporting tools with InfoApps to eliminate problems with information consistency and reduce maintenance. An InfoApp for its Custom Manufacturing Services division improves inventory management, providing KPIs and reports that help stakeholders spot anomalies and boost on-time deliveries. InfoApps for Finance, Procurement, and Accounting will soon be rolled out. These InfoApps will enhance day-to-day operations and drive better decision-making, while reducing costs and saving the company more than $100,000 annually.

7 Wohlsen, Marcus. “The Astronomical Math Behind UPS’ New Tool to Deliver Packages Faster,” Wired Magazine, June 2013.

Information Builders7

InfoApps™ from Information Builders represent a new era in self-service analytics, empowering CIOs to help their organizations to operationalize insights by making them accessible to everyone. InfoApps can drive pervasive BI and large returns on analytics by delivering content such as data visualizations, charts, graphs, and reports to users through a portal, for an easy “app store like” experience. More than just dashboards, InfoApps offer a variety of controls and filters through a custom user interface to aid in decision support.

The CIO’s Top Three Priorities8

Intelligence solutions from Information Builders – such as those used at Scherer Bros. and Belcan – are ideal for such types of analysis. A single, fully integrated platform provides advanced capabilities such as data visualization, location intelligence, and predictive analytics that enable users to glean deep insight from any structured or unstructured data, regardless of its source or location. This makes it easier to use enterprise information to improve operations, reduce costs, boost revenues, and much more.

CIOs should also seek to create new business models based on data. Product-as-a-service (PaaS) is just one recent example of how the power of data can be leveraged to create new revenue streams. Why just sell the product when you can sell the servicing of it based on the data collected from embedded sensors? It is a win/win proposition, as it makes a product or service proactive based on early detection signals, which in the long run lowers the cost of maintenance. On the other hand, it is a high margin business for the PaaS providers. This led the CEO of GE to claim, in his 2013 Annual Report6, that all industrial companies will become software companies. This is great news for the CIO.

Furthermore, the CIO has to think about data monetization – the best approach to realizing the financial value hidden in data – in the same way line of business managers traditionally maximized the use of their fixed assets. In addition to selling high-value information or charging a fee for access to it, organizations can monetize their data by leveraging the insight it contains to:

■n Enhance customer loyalty, retention, and wallet share

■n Increase cost efficiency by improving resource allocation, streamlining supply chains, and boosting productivity in other important operations

■n Uncovering and preventing fraud and waste

Bringing It Together – A Single, Fully Integrated Platform

Helzberg Diamonds By empowering managers to analyze point of sale (POS) and other data, Information Builders is enabling Helzberg Diamonds to monetize data by using it to better anticipate market trends and boost revenues. Users at 230 stores can examine product sales and campaign performance, and track store-specific information, such as individual associate performance, credit sales, and extended care plan performance. The insight derived helps the company up-sell and provides additional value to customers and partners, while also increasing the average sale.

Scotiabank Integration and intelligence solutions from Information Builders were also leveraged to monetize data at Scotiabank, supporting a robust, modern sales information infrastructure. Data is captured from multiple retail banking systems and delivered as weekly sales reports to the bank’s 1,024 branches. By accelerating its ability to open new channels and improving the way sales officers reach out to customers, qualify leads, and align customer profiles with the product mix, Scotiabank expects the environment to help generate an additional $250 million in annual sales across all its products.

6 Immelt, Jeffrey R. Letter to Shareholders, GE 2013 Annual Report, February 2014.

Information Builders9

Information Builders provides a single, fully-integrated platform that effectively and economically supports any data monetization strategy. Award-winning integration and integrity solutions ensure the accessibility and quality of data from across the enterprise and beyond, while intelligence and analytics make it readily available to executives, employees, customers and partners. With Information Builders, businesses are empowered to realize the full financial potential of their most critical information assets.

The CIO’s Top Three Priorities10

As CIOs become more prominent players in business strategy, focus on making information an integral part of their organization’s value proposition, and work to make BI and analytics available to every stakeholder in every role, they need to ensure that the right supporting solutions are in place.

A solid technology foundation – built on powerful, fully integrated intelligence, integration, and integrity solutions – will enable CIOs to achieve their three primary goals by:

■n Creating a comprehensive data experience, where a trusted “single source of truth” exists to support decision-making at all levels

■n Delivering hidden insights to foster greater business agility and adaptability, while accelerating response to critical business issues

■n Integrating digital platforms with business processes, as well as automating key workflows and activities to increase productivity and reduce operating costs

■n Extending the reach of BI and analytics to enable proactive business management, promote customer-centric operations, and drive higher profits through data monetization

Information Builders is uniquely positioned to provide today’s CIOs with the solutions they need to achieve their most important goals. Our three product lines – intelligence, integration, and integrity – work together seamlessly to unify enterprise information, ensure its quality and consistency, and make it readily available to users across and beyond the organization. From data inception to information quality and delivery, Information Builders provides a single, powerful, scalable, and reliable architecture to transform data into a strategic asset.

Conclusion

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