One of my colleagues, Karen Rubenstrunk, is a principal advisor for our CIO Executive Program. I’ve known Karen for close to 20 years; she is a superior CIO coach. Recently, we found ourselves discussing the challenges CIOs have communicating business value. Here is Karen’s point of view:
If you’ve been around tech management as long as I have, at some point you’ve had the conversation that keeps on giving (like heartburn): how to better communicate the value of technology to the business.
Like me, I’m sure you’ve continued to wonder why we keep having this conversation over and over and over.
At a recent CIO Group Member Meeting, I found myself drawn into this conversation yet again — and being the lone dissenter in the room about what to do about it. While we kept talking about which new technologies or recent economic trends were making the task of communicating value so difficult, I’ve learned that the real problem isn’t technical, it’s personal: CIOs need to focus on perceptions and invest in the power of personal relationships with business peers.
Perceptions Drive Value
Technology’s perceived value to the institution is directly related to the maturity of the relationship between technology management and other functional managers and their teams, and that relationship is built on two fundamental perceptions: 1) the business’ perception of its dependence on technology, and 2) the business’ perception of technology management competence (see figure below).
On February 28, 2013, India (as part of its 2013-2014 budget) announced that it would increase the excise duty on mobile phones costing more than $36 to 6%, up from the current level of 1%. Forrester believes that this increase will not affect the mobile industry in India very much because:
Sub-$100 smartphones will trigger new kinds of competition in the market. As high-end mobile phones get more expensive, Forrester predicts that smartphones costing less than $100 will be in much greater demand. Moreover, handset manufacturers will absorb a large portion of the price increase to sustain their sales.
Explosive mobile Internet growth. With increasing urbanization and improving per capita income, more people will begin to use the Internet, and the use of smartphones will rise quickly. We forecast that the mobile Internet user base in India will grow by more than 30% year-on-year over the next five years.
Addicted social media youngsters. With more than 61 million Facebook users, India ranks as Facebook’s third-largest audience in the world after the US and Brazil. Half of these users are between 18 and 24 years of age, and the majority of them use their mobile phones to connect to the world.
Rapid eCommerce growth complementing the mobile sector. Forrester estimates that eCommerce revenues in India will increase more than fivefold by 2016, jumping from US$1.6 billion in 2012 to US$8.8 billion in 2016. Mobile-friendly sites from various players and eCommerce website aggregators will help accelerate mobile Internet adoption.
I recently had the chance to spend some quality time with Dell in Singapore at their event for Forrester analysts in the Asia Pacific region. As Dell is a company traditionally known for its hardware products, I had low expectations – to date, few of my CIO clients would consider Dell a “strategic” supplier.
However, I was pleasantly surprised – Dell is reinventing itself from a PC and server supplier into an IT solutions provider. The benefits of the acquisition of Perot Systems and various software assets in North America and around the globe are starting to pay dividends in Asia Pacific.
As a late entrant into many of the newer markets they play in, they have the rare advantage of being able to do things differently – both from a solution and a pricing standpoint. From data centre transformation through legacy migration and application modernisation, to networking solutions, Dell is attempting to be disruptive player in the market – simplifying processes that were typically human-centric, and automating capabilities to reduce the overall burden of owning and running infrastructure.
Their strategy is to stay close to what they know – much of their capability is linked directly to infrastructure – but their open, modular, and somewhat vendor agnostic approach is in direct opposition to the “vendor lock-in” solutions that many of the other major vendors push.
During the first week of June, we had one of our quarterly Sales Enablement Leadership Council meetings in Barcelona, Spain. (A leadership council is comprised of executives from leading companies who work with us to set the direction for the near-term and long-term role of sales enablement.) For an entire day, we discussed the application of Forrester’s SIMPLE framework, which is a model designed to help combat the random acts of sales support that persist within most B2B companies, to common sales enablement leadership challenges.
The sheer volume of insight, ideas, new research topics, and techniques shared during that session was tremendous – far too much to share in one blog post. So, I am going to pick two issues that came up.
First off, Tamara, I hear you. I was told point blank that I need to participate in the social community more. I’m going to make a more dedicated effort to do this moving forward, but I need your help. Please tell me what you’d like me to share and how. Honestly, I get a little caught up around the axle about the many deliverable formats I’m responsible for (research reports, teleconferences, conference presentations, facilitating council meetings, client deliverables, etc.) so I would love the coaching from the community on what would be the most useful.
Secondly, at the beginning of our council meeting, we had a good discussion about where the sales enablement profession is heading. I’ve written a very detailed document defining the scope and role of sales enablement strategically, but there is an easier way to summarize the trends based on how you define the word “sales.”