The CIO’s Role In Business Transformation

Marc Cecere

At our recent CIO Forum in D.C., I had a number of conversations with clients who either had gone through or were going through a business transformation. From our talks, one theme jumped out at me — most CIOs will either lead some part of this transformation or get run over by it. From their perspective, there was no middle ground. To paraphrase one CIO, “There’s no way you can just go along for the ride and not get hurt.”

 A little data first. In a survey Forrester performed for Tata Consultancy Services, approximately 30% of those surveyed responded that the CIO was the most important senior leader in driving or supporting a business transformation; CIOs were rated highest — even above CEOs! With about a third of the sample coming from IT, the numbers were slightly skewed, but follow-up interviews with both business and IT people confirmed the results. To paraphrase the leader of IT strategy from one meeting, “Once past the vision phase, 80% of the work falls to the CIO.”

So why is the CIO asked to do so much in what is essentially a business initiative?

Let’s use KPMG’s Value Delivery Framework to illustrate. In it are five stages of a business transformation — discovery, strategy, road map, implementation, and monitoring — and a number of activities such as program management that span the stages. Of the five stages, implementation requires the greatest effort. From talking with those who have been through it, the greatest implementation challenges are in data, enterprise process redesign, project management, and organizational change management. And for at least the first three areas, IT is the group that is required to commit the most resources to these areas because IT has the greatest depth of experience.

Read more

Amy’s Baking Company Social Media Meltdown: The ABCs Of Social Media

Nigel Fenwick

Of the many questions I get from clients, many center on the use of social media for customer engagement purposes — because sometimes IT staff are asked to block employees from using social media. But what should you do when the owners of the business take to social media?

Today, a small restaurant in Arizona is the hottest thing on social media. Their Facebook page has gone from 2,854 likes on May 14 to 74,687 on May 16. Was this incredible growth in “likes” the result of some incredibly successful social media campaign? Well not exactly.

The restaurant was recently featured on the season finale of Ramsey’s Kitchen Nightmares — a show my wife and I really enjoy as it happens. It seems the main reason why the owners, Amy and Samy Bouzaglo, invited the show to their restaurant was because business had gone downhill because of an Internet firestorm they themselves seemed to have not only started but also steadily fuelled.

Well one of the many, many lessons from the meltdown of Amy’s Baking Company (ABC) in Scottsdale, AZ is that owners should never try to use social media before understanding a few basic guidelines:

Read more

Winning The Customer Experience Game (Part 2)

Nigel Fenwick

It may come as a surprise to some to hear that technology teams play an important role in the implementation of an effective customer experience strategy, but that's the conclusion from our latest research.

Read more

Should Companies Allow Employees To Use Cloud-Hosted File Sync/Share Solutions? Yes, With Precautions.

Ted Schadler

 

The Wall Street Journal published a point-counterpoint article on cloud-hosted file sync/share solutions like Dropbox, Google Docs, and myriad others. They chose a title I wouldn't have used myself, but there you have it.
 
I took the pro side. You can read the whole article here.
 
My side of the argument is here:
 
Yes: Employees Are Doing What's Best for the Company
By Ted Schadler
 
Why do employees use cloud-based solutions like Dropbox, Box and SugarSync to sync and share files? As well over 100 million Dropbox customers have learned, it's because these services make it a cinch to move files from a computer to a tablet to a smartphone to another computer and back again. And it's a much better solution than email for sharing a bucket of files with others.
 
These services began life with a focus on home scenarios. But it didn't take savvy employees long to realize that these services also solve three big productivity problems at work: 1) getting all your work files on every device you use for work; 2) sharing files with colleagues; and 3) sharing files with trusted partners and customers.
 
So, should IT organizations allow employees to use these cloud-based services? That question is patently absurd. Why should an IT organization dictate what employees do to get their work done? Who made IT responsible for policing employee behavior and tools?
 
Read more

Too Many Chiefs? Do Public Organizations Need Chief Data Officers?

Jennifer Belissent, Ph.D.

I highly recommend reading Gene Leganza’s blog on the role of the Chief Data Officer, written several months ago.

Having had several related discussions this past week while in Washington DC, it is obvious that the question of how to use and manage the growing wealth of data, and incorporate it into an existing information governance organization and infrastructure (however mature or not), is top of mind in the public sector as well.  These questions are particularly timely for the federal government with the publication of the new Executive Order on Open Data and accompanying Memorandum on Open Data Policy – Managing Information as an Asset.  Do government agencies need a CDO in order to do this?

If they did, what functions does the new role take on?  Does the new role take on new uses of data for business strategy?  Who has responsibility for existing functions of information management and data governance?  Then from the organizational perspective, where does this new role sit?  Who reports to the CDO?  Gene discusses these questions in his blog.  With the increasing importance of data and the information they generate, organizations need to get their heads around the new assets they have – both for internal use and both partners external to the organization.  But the proliferation of “chiefs” doesn’t seem to be the answer.  Information is an asset to the company, yes. And it needs to be managed.  But not all assets have their own chief, nor should they.

Read more

Lessons From A CIO Forum Conversation On Employee Engagement

TJ Keitt

Yesterday afternoon, I moderated a panel on the role the IT department can play in the business's employee engagement efforts. Any follower of this blog knows that this is a topic I've talked about a lot lately (see previous posts here and here) because hiring, developing and retaining talented and productive employees is critical in the Age of the Customer. The panelists were Ed Flahive, Vice President Global Learning & Development at State Street, Mike Peterson, CIO and Vice President at CHG Healthcare Services, and Ray Velez, Chief Technology Officer at Razorfish. As you've probably observed, this was an eclectic group, representing human resources, IT and client delivery groups respectively. Well, that was on purpose. This topic requires perspectives from both business leaders and technologists. Having had 24 hours to think about that discussion, I thought I would share a few a-ha's I had from my conversation with these gentlemen:

Read more

2013 Huawei Global Analyst Summit: welding together networks, devices and services

Dan Bieler

 

Dane Anderson, Dan Bieler, Charlie Kun Dai, Chris Mines, Nupur Singh Andley, Tirthankar Sen, Christopher Voce, Bryan Wang

 

Huawei is one of the most intriguing companies in the ICT industry, but its overall strategy remains largely unchanged: imitating established products and services, then adjusting and enhancing them, and making them available at an attractive price point. But to be fair: Huawei is pushing more and more innovative products.

In 2012, Huawei’s annual revenue growth slowed down to 8% to CNY 220 billion (about US$ 35 billion). During the same period, its EBIT margin remained flat at 9%, despite the changing revenue composition due to the growth of its consumer and enterprise business. Unlike last year’s event which was dominated by the announcement to push into the enterprise space, this year’s Global Analyst Summit in Shenzhen saw little ground breaking news. It was more of a progress report:

Read more

Business Leaders Spending On Technology Because It’s Too Important To Let I.T. Go It Alone

John McCarthy

In Forrester’s latest report, “Tracking The Renegade Technology Buyer,” we uncover the motivations and technology spending priorities of over 1,000 North American and European business executives. The data from the Forrsights Business Decision-Makers Survey was collected in Q4, 2012.  Of the 891 respondents that had a budget over US$1 million, 824 spent their own money on hardware, software, telecom or services. Twenty-four percent of the 891 spent over 21% of their budget on technology, accounting for over $US 31 billion in expenditures. Senior management and sales and marketing were the top spending business functions and financial services/insurance and telecom/utilities lead the pack from a vertical perspective.

So why are business leaders carving out part of their own budgets for technology? It’s contrary to what you think. The high business spenders are not doing it because it is faster or cheaper than central IT – they are doing it because they see technology as too important to their success not to be involved. In parallel, senior management is more relaxed in dealing with the technology – 33% of the high spenders say there technology IQ has increased and they are more comfortable working with IT. Another 20% say that their use of consumer technology has changed their expectations of how technology should be used. The consumerization of IT is not just about younger Gen Y staff wanting to bring their own Macs and iPhones to the office; just as or more importantly, it’s also changing the way senior managers drive business and technology strategy.

Read more

US Tech Market Will Grow By 6.2% In 2013 And 6.8% In 2014, As Improving Consumer Spending And Housing Offset Government Cutbacks

Andrew Bartels

No one would claim that the US tech market is booming.  With Europe still mired in recession and debt problems, US economic growth looking soft, and business and consumer worries about the US government raising tax rates and cutting Federal spending, it is not surprising that businesses and governments are being cautious in their purchases of technology goods and services.  But we think the fear is overblown.  Forrester's forecast for the US tech market in 2013 and 2014 -- published today as "US Tech Market Outlook For 2013 And 2014: Better Times Ahead" -- projects a 6.2% rise in 2013 and a 6.8% growth in 2014 in US business and government purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing.  Adding in slow growing telecommunications services pulls growth down to 5.7% in 2013 and 6.1% in 2014. That may not be a boom, but it is certainly not a bust.

While CIOs are cautious in their tech buying -- and in the case of the Federal government, actually cutting back -- that caution has and will show up mostly in reduced spending on computer and communications equipment (with the exception of tablets).  CIOs will be most aggressive in software, especially for SaaS apps, analytics, and mobile apps. IT outsourcing will see good growth in 2013 as the result of 2012 selection decisions, while IT consulting and systems integration will come on strong in 2014.  Business and government purchases of telecommunications services will continue to grow at a slower rate than the overall tech market.  

Read more

Winning The Customer Experience Game

Nigel Fenwick

We all hear and read stories of terrible customer experiences; like me, you probably have had your own share of bad experiences. And social media has made it possible for these bad experiences to be shared instantly with millions of people. But in our journey through life, we also experience service that exceeds our expectations. And as we read reviews online, we're more likely to see a mixture of both good and bad experiences. For example, I recently posted a glowing review for a B&B in Bethel, ME, even though a few things about my stay would have typically caused me to deduct points. My five-star review was extremely positive because the proprietor had blown away my expectations on service, delivering an experience way beyond any I've had in a five-star hotel.

But excelling at the personal touch in a small-town B&B is far easier than doing it at scale in a multibillion-dollar business. Yet there are companies that consistently deliver great customer experiences. (My colleagues even wrote a book on them). They aren't perfect all the time, but, on average, they are better than their competitors. At Forrester, we identify these companies through our annual Customer Experience Index (CXi) research. Toward the top of the 2013 index, we find companies like Marshalls, Courtyard by Marriott, USAA, TD Bank, Southwest Airlines, Vanguard, Home Depot, Kohl's, Fidelity Investments, and FedEx.

Read more