CEO Concerns 2014_Business Gets Digital (1)

8/10/2019 CEO Concerns 2014_Business Gets Digital (1)

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Business Gets Digital

Hung LeHong

2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed inany form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted ongartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completenessor adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's researchorganization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a

discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and itsshareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of thesefirms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further informationon the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."


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Find the right growth targetFind the right growth target

Educate your executivesEducate your executivesea e g a c argeea e g a c arge

2014 Gartner, Inc. and/or its affiliates. All rights reserved.



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What's Top of CEO "To Do" Lists?



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IT Is Directly Visible in Top

Strategic Business Priorities for 2014/15Growth

IT related

Profit improvement

Priority1st

Workforce related

Customer related 2nd

3rd

4th

Efficienc & roductivit

Financial

Product improvements 5th

"What strategic business

GRC

Innovation, R&D

address in the next 2 years?"


0% 20% 40% 60% 80%

n = 410 CEOs and Sr. Business Executives


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CIO "Heavy Lifting" Contribution to the Leadership Team:

Structure Their Growth Focus, Then Link IT Directly to It

Info., analytics

E-commerce5%

Mobile andm-commerce

5%

NewMarket Cloud

5%

and big data

4%

locations(various)

25%"Organic"

10%

10%

Uns ecified

Salesrevenue

17%

improvements

54%Digital, social

and online27%

21%"New

markets"17%

Growth Focus Categorized

IT Focus Categorized


uzzy an over app ngconcepts)

overlapping concepts)


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Most Growth Constraints Are External Factors

But Your Response to Them Is a Differentiator

"What are the twomost significant

80% of job seeking professionals usetheir mobile. Are you "m-hiring"?

factors acting as

constraints onyour company'sgrowth?"

20%

you now even spacecra are

being crowd-funded these days?

Any product can be digitally-

13%

11%11%

Long tail.

Ask your CEO about YOURbi est rowth constraint.

.

6% 6%5% 5%

4% 4% 3% 3% 3% 3% 3% 3% 3%

2014 Gartner, Inc. and/or its affiliates. All rights reserved.n = 410 CEOs & Sr. Business Executives


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Ageingcreates

External macro trends.

oppor un esfor manyindustries

.

Technology

"What are the two27%

3rd

external macrotrends shaping

your businessstrategy?"12%

mostimportant

5%

9%

6% 6% 6% 5% 5% 5% 4% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3%

11%

2014 Gartner, Inc. and/or its affiliates. All rights reserved.n = 410 CEOs and Sr. Business Executives


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2014 Gartner, Inc. and/or its affiliates. All rights reserved. 2014 Gartner, Inc. and/or its affiliates. All rights reserved.


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Your

business

are morethan ready

to placedigital


.


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Investment Intention Changes for 2014Digital

business ...

9% 43% 48%

Decrease No change Increase

12%13%

41%37%

47%51%

R&D & innovationInformation technology

productinnovation9%

7%

56%

53%

35%

40%

Risk mgmt., legal & compliance

Sales

10%

9%

65%

63%

25%

28%

Supply chain

People & culture

13%

20%

66%

52%

21%

29%

Property and facilities

Business servicesap a equ pmen


n = 152 CEOs & Sr. Business Executives

"Compared to fiscal year 2013, how will your organization's investments

in the following business areas change in fiscal year 2014?"


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Top Technology Investments,

Next 5 Years38%

34%

Digital marketing

E-commerceSocial organization/ 19%

Less than 20%:

34%32%

Customer experience mgmt.Business analytics

Sustainability 19%Business processoutsourcing

18%

24%

23%

Big data & data science

Enterprise mobility

process management

Electronic service

enablement

15%

22%

20%

20%

Supply chain & traceability

M-commerce

Product cost analytics

Mass customization 10%

E-discovery 9%

Sensor networks/ 8%

20%Enhanced business reportingn = 410 CEOs and Sr. Business Executives

Pay as you go 8%

Additive manufacturing 4%

Gamification 4%"Which 5 technology enabledca abilities will be the most im ortant


Neurobusiness 2%

Multiple responses allowed

areas of investment to improve yourbusiness over the next 5 years?"


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What is the real meaning of"digital"

business?



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What Digital Business Means to CEOs

What do you mean when youthink about "digital business"

2014 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner CEO & senior business exec. survey 2014. Large Cos., WW, n = 410.

n e con ex o yourbusiness and industry?


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Targeted DD--businessbusinessEE--business +business +Ecommerce,

ebusinessOnline

customer

Marketing,

brandGeographic

reach

Security,

safetyMobilemarketing&selling

Multichannel

Di italized

value

chain

Distributionof

products,services

selfservice Direct

selling

Customerintimacyfinding

Virtual,

Product

advances

senior businessexecutive survey2014. Largecompanies,worldwide, 4Q2013. n = 410.

Cost

reduction

Automation

&productivity Businessmodelchange

CompetitiveadvantageBusinessgrowth

weightless

business

Lagging Leading

Online/webbased,

general

B2B

collaboration

,

content

Mobile

devices,

general

Analytics&

decisioning

Socialmedia

M2M,

Internet

What the term"digital business"means to CEOs

Paperless

information

flow

Speed,

convenience

Cloud

computing

Information

flowrelated

Big

data

ofThings

a o you meanwhen you think about"digital business" inthe context of your

2020thth CC--businessbusinessGeneraluseofIT,

computers

Digital

isdigital

Communication

frequency,

scope

Enterprise

useof

digital

eratech.


Irrelevant/

nothoughts

Improvement

vs.analogue Vague


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Management Teams Must Focus More on

Information as a Corporate Asset

Data is

We measure the

benefits thateach type ofinformation

We quantify thefinancial value ofour information

the oil

of the21st

centuryasset generates

for us33%

assets, as if theywere a balance

sheet asset

24% 010011010001110101

We donot regard

Our informationassets are well

cataloged(inventoried)and defined

We directlymonetize

n orma onas a kindof asset

11%

22% informationassets bybartering withthem or sellingthem outri ht



10%"To what extent does your organization treat

information itself as a kind of corporate asset?"


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Which companies doCEOs most admire ...

for competing

with tech.?



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Watch and Learn From the Top 15

1 5 =

2 6 =

37 =

4 = "Which 'non-tech.' company do youmost admire for its ability to applyIT-related or digital business capabilities


for competitive advantage?"

Gartner CEO and senior business executive survey 2014 Large companies, worldwide, 4Q 2013. n = 410.


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Admired Company Examples: DeepInvestment-led, Strategic Innovations

Business Sphere Drive thru. click & collect Warehouse robots

"By eliminating the delayof manually collecting andaggregating data, thispatent-pending BI system

Is one reason Tesco,achieved $730 million inonline sales in the six weeksto 4 January 2014, up 14%

Drones might comeone day. But during2013 Amazoninstalled over 1,300

mproves pro uc v y ancollaboration, simplifieswork processes, reducesdecision-making cycle time,

on e prev ous year. escotook more than 3 milliononline grocery orders, up11%, and 1.5 million non-

oor rov ng ro o sfrom Kiva Systems a company it boughtin 2012. Subsidiary


on consumer innovation."

, .using them for years.


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Educate your executivesEducate your executives

ea e g a c argeea e g a c arge



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How Will Digital Tools and CultureChange the Nature of Leadership?


Tag cloud generated from survey response data using Tagul.com.License paid.


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Impact of the Digital Age on CEO'sLeadership Style

No changeof style

14%

MoreCommunication

Style dinosaurs linked tounderperforming firms

Noanswer4%

MoreTransparent& Accountable

Better informed6%

29% Impersonal,Less Face to

Face6%

16%

Decisionprocess-related

5%Customerinteraction

Long tailof other

responses


"What is the most significant way (if at all) that the digital age

has changed your leadership style over the last 5 years?"



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Recommendations

Find the rightFind the right growthgrowth target.target.Discuss with CEO CFO and strateDiscuss with CEO CFO and strate

your business head.head.

Seize fresh investment.Seize fresh investment.Change the tune. ProposeChange the tune. Propose businessbusinessinvestmentsinvestments including acquisitionsincluding acquisitionsandand new products.new products.

uca e your execu ves.uca e your execu ves.Offer digital tours. Drip feed contentOffer digital tours. Drip feed contentintointo CEO, board and leadershipCEO, board and leadershipteamteam meetings.meetings.

To lead the digital

Lead the digital charge.Lead the digital charge.Start setting the digital business agenda,increase the sense of urgency. Ask for


industrial revolution forgiveness not permission.


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Recommended Gartner Research

CEOs and CIOs Must Co-Design the C-Suite for

Mark Raskino, Dave Aron and others (G00258536) The Gartner Travel Guide to the First Digital Decade

ee e on, e rey o e an o ers

CEO Advisory: Three Changes You Can Make to the

Mark Raskino and Jackie Fenn (G00250367)

The Digital Edge, Exploiting Information

an ec no ogy or us ness van ageMark McDonald and Andy Rowsell-Jones(2012 e-book)


For more information, stop by Gartner Research Zone.


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Methodology Record

Gartner conducted this research September to December, 2013 in order to examine CEO and seniorbusiness executive views on current business issues as well as some areas of technology agendaim act. 410 business leaders were ualified and surve ed. The bulk of the research was achievedonline (368), an additional 20 surveys were conducted via telephone interview, and paper-baseddocuments. All respondents were screened for active employment in organizations greater than$250M in annual revenue, excluding technology vendors.

The sam le mix is as follows: CEOs = 227 responses CFOs = 93 responses COOs = 31 responses

Chairman, President, BOD, or other C-level = 59 responsesy reg on:

North America = 154 responses Europe = 114 responses APAC = 117 responses Brazil = 10 res onses

South Africa = 8 responses Middle East = 6 responses

The survey was developed collaboratively by a team of Gartner analysts who examine IT's role in'


,team. The results of this study are representative of the respondent base and not necessarily businessas a whole.


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Survey Respondent Regions & Countries

28%28%

38%N. America38%N. America

EuropeEurope

29%

APAC

29%

APAC

M. East

M. East

2%Brazil2%

Brazil

2%S. Afr ica

2%S. Afr ica


n = 410 CEOs and Sr. Business ExecutivesResponding countries


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Survey Respondent Roles

55%

Other14%

COO8%

, ,

Chairman

Board of Directors

Other C-level Executive

University Chancellor/President

CFO23%




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Survey Respondent Industries

25%

23%

23%Manufacturing Multiple responses

13%

11%11%

9%

Business services

Retail

9%

8%

6%

5%

6%

4%

Insurance

Transportation

Natural resources

56%

Value chain position:

5%

5%

5%

4%

3%

Healthcare providers

Wholesale trade

44%

37%

4%

3%

3%

3%

Media

UtilitiesB2B B2B2C B2C


3%2%Education


Multiple responses allowed


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Survey Respondent Company Size

Annual revenue: Number of employees:

$250M to

Documents

CEO Concerns 2014_Business Gets Digital (1)