We’ve been telling you that you need to transition from strictly managing an IT Agenda to owning a BT Agenda, too. 2016 is the year that needs to happen: your CEO will be looking for you to drive digital in your company — and increasingly digital is becoming your business.
Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers.
The scary news? Only a quarter of businesses have a coherent digital strategy to create customer value as a digital business. The onus is on you to deliver that strategy. As CIO, you need to offer a holistic view on the digital transformation that encompasses not just how your firm can harness emerging technology to create customer value, but how your team can help drive synergies across the customer experience ecosystem. We believe the only way to achieve this is a customer-obsessed operating model that will permeate throughout your business and focus on six elements: structure, talent, culture, metrics, processes, and technology.
Here are three things you can do in 2016 to win at driving digital:
Digital technologies have shifted control into the hands of your customers. Your customers are now independent, active agents in everything, from selecting the channels and platforms they prefer, to the very definition of your brands. As CIO, you’re in an enviable position and are more essential to your firm’s success than ever. You have the technology know-how to tap into these digital technologies. And together with your CMO, you can lead your firm to become customer obsessed and create the digital experiences that win, serve, and retain customers. But you have to be willing to change the way you work.
CIOs of customer obsessed firms must embrace an accelerated pace of change and reinvention, for themselves and their organizations. But years of radical IT outsourcing have denuded many technology management organizations. In fact, Forrester's Q1 2015 Digital Experience Delivery Survey found that the top barrier to success was a lack of resources. So your first order of business as CIO? Invest heavily in new skills:
Software engineering.Software (and how well it does or doesn’t perform) underpins the brand for digital businesses, making core software development and delivery skills paramount to your firm’s future success. Agile methods, continuous-delivery techniques, and product management skills will be critical – not just in pockets, but scaled up to address all software engineering needs.
Our Forum For Technology Management Leaders in London starts tomorrow and I'm very excited about the program that we have been able to put together across the two days. On day one, we will be hearing from Jeroen Tas, Chief Executive Officer, Informatics Solutions and Services, Philips Healthcare, about how he and his team have evolved IT to become a fundamental enabler of growth for Philips as a real-time, connected company. Jeroen has over 30 years of global experience as an entrepreneur and senior executive in the financial services, healthcare, and information technology industries. Before taking on his current position, Jeroen was the Group Chief Information Officer of Royal Philips, leading IT worldwide.
In the run-up to the Forum, I asked Jeroen to answer a number of questions on Philips Healthcare's digital business journey. Jeroen's answers are a must-read for healthcare- and other technology management leaders about to embark on the same journey, and provide great insight into the challenges of making connected healthcare a reality. I look forward to hearing Jeroen speak on the main stage tomorrow!
Q: You have been a driving force behind Philips Healthcare’s strategy to create a connected healthcare world. Can you explain your approach?
In advance of next week’s Forrester’s European Forum For Technology Management Leaders in London (June 12-13), we had an opportunity to speak with Oliver Bussmann, one of our industry keynote speakers, about digital business and how UBS is responding to the challenges of digital disruption and to rising customer expectations.
Oliver Bussmann joined UBS in June 2013 as Group Chief Information Officer (CIO), responsible for the Group Technology organization. As Oliver will explain in his presentation on day 2 of the Forum, digital business transformation success in his view hinges on three key factors: A joint and strong partnership of IT and the business working together; creating a culture of innovation and entrepreneurship; consistent and authentic support of senior leadership to demonstrate by example that this transformation is real, necessary and appreciated.
I hope you enjoy Oliver's responses as much as I did, and do join us on June 12-13 to hear the full story!
Q: What is your agenda as CIO at UBS?
As CIO my job is to position IT as a business enabler, this involves understanding the firm's strategic priorities, and ensuring we strike the right balance between (1) managing the traditional IT functions to ensure a cost-effective, reliable and secure infrastructure and (2) focusing on strategic IT, driving transformational change through innovation, to increase revenue opportunities and deliver real value to our business.
As the Practice Leader for the CIO role at Forrester, I have talked at length with many of our CIO clients about how they’d like to engage with Forrester - particularly when it comes to our Forrester Leadership Board community. Our current CIO Group is a robust community and I wanted to learn more.
A pattern quickly emerged - our CIO clients with 250+ FTEs want to interact with Forrester differently: their needs are focused on developing their team, and they want different deliverables than our core CIO Group.
Therefore, we designed a new program for these CIOs with more than 250 FTEs: The CIO Executive Program.
Offered exclusively to CIOs at the biggest global companies of $5b+, The CIO Executive Program addresses the unique challenges and opportunities faced by technology leaders at the world’s largest firms: a need to support and develop the leaders on their team, no time to read research or talk to analysts themselves, a desire to bounce ideas off of and be challenged by true peers, and a need to benchmark their IT organization against others.
If you are interested in learning more about this program, to find out if you qualify, or would like to recommend someone for this exclusive program, please email us at firstname.lastname@example.org.
We’ve been talking to many of you in the last year about improving our Forrester Leadership Boards for Enterprise Architecture Professionals -- our peer collaboration program for senior executives.
In our research, we found there was a clear distinction between the executive audience: the enterprise architects and the leaders of strategy, planning and innovation for their IT organizations.
As such, in addition to our existing Enterprise Architecture Council, we have just launched our Business Technology Strategy Council to better serve our executives in this role! In order to distinguish between these groups, below are some examples of some of the member challenges you’ll find in each of these groups.
Business Technology Strategy Council:
Establish strategies with quantifiable business impact.
Drive innovation and embracing emerging technologies.
Mobilize executives, peers, and customers around your BT strategy.
Speed and agility are at the heart of business today — and, unfortunately, those are two areas in which IT is falling short. Two trends — neither of which is going away anytime soon — are impacting this increased need. Consumerization is rapidly changing the expectations of today’s information workers. In too many instances that we care to acknowledge, your employees are using faster, more agile solutions at home than they are at the office. On top of that, businesses are under an increased demand to change.
Enterprise architects are in a unique position to be change agents for their businesses — if they aggressively change the way they work with the business. Join us at our Enterprise Architecture forums — May 3 to 4 in Las Vegas and June 19 to 20 in Paris — for practical guidance on how to connect EA with your business’ bottom line.
In today’s business environment, the pressure to change, and change quickly and often, is growing, thanks to the proliferation of empowered customers, emerging global markets, regulation (and deregulation), and growing social responsibilities. For the past several years, I’ve worked with CIOs from all types of industries as they’ve worked to transform the culture, the tactics, and the technology of their organization to become more agile. The successful ones, like Michael Mathias at Aetna or Glenn Schneider at Discover Financial Services, now sit in organizations where the business leaders look to IT as a key enabler of business agility.
And interestingly, when you speak with these successful CIOs, they often point to their enterprise architecture (and business architecture) as the secret weapon for how they achieve that agility -- the ability to tap new technologies and processes to help their businesses shift and innovate quickly. That’s great news, and shows the potential for high-performance EA practices.
Recently my colleague David Cooperstein and I had the opportunity to meet with Robert Mead and Michael Mathias, the CMO and CIO respectively at Aetna. They will be speaking at our upcoming CIO-CMO Forum on September 22 in Boston, so this serves as a bit of a preview to what should be an eye opening presentation. Enjoy!
David Cooperstein: What external changes drove you to build a deeper partnership with your technology peers?
Robert Mead, Senior Vice President, Aetna Marketing, Product & Communications: The U.S. health care system is fragmented and well behind the curve in terms of price transparency and consumer-friendly products and services. The deep partnership between technology and marketing at Aetna lets us put leading-edge technologies and powerful tools and applications directly into the hands of people so that they can be confident consumers and informed patients. Our close collaboration with our colleagues in technology is driven by a few external factors:
the increasing cost of care and the corresponding changes in employer-based insurance – consumers are being asked to take more ownership of their health and wellness and their health care spending;
the introduction and rapid adoption of technology that empowers consumers (and patients) to engage in the health care system where they are in life and in the way they want to be connected; and
health care reform, which aims to bring millions of previously uninsured Americans into the marketplace as consumers.
Forget Brad and Angelina (or "Brangelina" for those that are more plugged in to pop culture than I), the new "it" couple is the CIO and CMO. Why? In the digital world we live in today, which Forrester defines as the Age of the Customer, empowered buyers demand a new level of customer obsession. That means firms must deliver marketing and technology solutions that have visible impact on the customer. CIOs and CMOs are best positioned to deliver because they have a broad, end-to-end purview of their businesses and they understand how to innovate. But, CIOs and CMOs also often come with conflicting expectations and priorities that can sabotoge well-intentioned collaboration efforts.
Charles Rutstein, Forrester's COO, recently sat down with my CMO Practice Leader peer David Cooperstein and me to discuss the role that CIOs and CMOs play in this customer-obsessed new world. See what we had to say here: