Redefining the CIO › Online_Assets_Jive... · and human capital are cascading violently across networks with decreasing regard for traditional industrial, geopolitical, or other

Redefining the CIO Envisioning and Enabling the Next Generation Enterprise

Executive Leadership Series

2© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise© 2015 Jive Software, Inc. All rights reserved | Jive Confidential

Brian Vellmure specializes in connecting dots, distributing intelligence, and driving change at the intersection of customers, technology and organizational growth.

Blending nearly two decades of work experience across a breadth of industries, functional domains, and company sizes, with a close sense of the market’s pulse, and a keen vision of the future, Brian helps B2B and B2C organizations accelerate growth through digital transformation initiatives. In addition, he often serves as an expert advisor for the world’s most successful and innovative technology vendors and their customers, providing market and product strategy guidance and thought leadership content. He is an accomplished business leader, management consultant, keynote speaker, and an award-winning syndicated blogger. Brian has served on boards of both non-profit and for profit organizations, and as an expert advisor to some of the most recognizable brands in the world, several entrepreneurs and mid-level executives. For more, please visit: http://www.brianvellmure.com and follow him on Twitter @BrianVellmure.

Chapter 1 The Changing Role Of The CIO.Learn how impact and control are being circumvented by cloud computing.

Chapter 2 The CIO Role Reaches A Critical Juncture. Explore the changing landscape of unprecedented access to technology.

Chapter 3 A New Focus.Envision the next generation enterprise.

About the Author

http://www.brianvellmure.com/

3© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise

Chapter 1 The Changing Role Of The CIO.



The pace of technology innovation is changing the world faster than many organizations can adapt.

Like many roles in the C-Suite, the CIO role is also changing. Its impact and control have been circumvented by cloud computing, the consumerization of IT, and employees that now have unprecedented access to technology. The role of the CIO is at a critical juncture. For some CIOs, the changing landscape forces them to act as a manager of a cost center of diminishing importance with a decreasing budget, narrowly focused on driving efficiencies and reducing costs. For others, it means unprecedented opportunity, increased salary, and a critical ascent into a more strategic leadership position for their organizations. In this eBook, we explore these changes and how CIOs can leverage their expertise to help their organizations succeed in the rapidly evolving landscape.


The wheel. The telegraph. The Internet. Each tool was created to serve a purpose, but subsequently unleashed decades of new innovation. They also rendered legacy practices and associated products, organizations, and industries obsolete.

While each of these progressive technologies were built to solve a specific problem, they also created new opportunities to leverage these new capabilities in new ways.

We find ourselves in a similar position today, but the speed and impact of these changes are catching most leadership teams by surprise.

The birth of the Internet was the foundation of a connected society. First, we connected a few mainframes, then the creation and adoption of the

PC allowed more widespread connections between universities, corporations and homes. The path of computing has continued its advance to smartphones, and the coming advances in wearables and embeddables will leave us more connected than ever before. The Internet of things will attempt to connect just about everything we see. Not only are the sheer numbers of new tools exploding, but simultaneously the pace is quickening with exploding breadth and depth. There is no reason to suspect that the pace of change will subsist. In fact there’s a strong argument that it will actually speed up. The exponential decrease in the cost of storage, processing power, and bandwidth has led to an exponential growth curve in innovation capabilities.

© 2015 Jive Software, Inc. All rights reserved | Jive Confidential

The Assault of Exponential Change

“We shape our tools and then our tools shape us.” Marshall McLuhan


The Accelerating Pace of Change Computing technology, shown here climbing dramatically by powers of 10, is now progressing more each hour than it did in the entire first 90 years.

Computer Rankings

By calculations per second

per $1,000

Analytical Engine

Never fully built, Charles Babbage’s invention was designed to solve computational and logical problems

HollerithTabulator

IBM Tabulator

National Elis 3000 Zuse 2

Zuse 3

Colossus

The electronic computer, with 1,500 vacuum tubes, helped the British crack the German codes during WWII

ENIAC

BINAC

IBM SSEC

UNIVAC I

The first commercially marketed computer, used to tabulate the U.S. Census, occupied 943 c. Ft.

EDVAC

Whirlwind

Datatmatic1000

IBM 1620

DECPDP-4

IBM1130

DECPDP-10

Intellec-8

Data GeneralNova

Apple II

At a price of $1,298, the compact machine was one of the first massively popular personal computers

IBM PC

CompaqDeskpro 386

Pentium PC

Pentium PC 2

Power Mac G4

The first personal computer to deliver more than 1 billion floating-point operations per second

Dell Dimension 8400

Mac Pro

Nividia Tesla GPU & PC

2045

Surpasses brainpower equivalent to that of all humans brains combined

Surpasses brainpower of human in 2023

Surpasses brainpower of mouse in 2015

Source: The Year Man Becomes Immortal, Time Magazine, Feb. 10, 2011


Predicted Future

1000 1920 1940 1960 1980 2000 2011 2020 2045


But it’s hard for most of us to grasp this concept, as the tendency is to think in linear terms. Through the years, even the best leaders in top organizations have fallen pray to being captured in a previous paradigm, missing huge transformational shifts that will have massive impact:

“I think there is a world market for maybe five computers.” —Thomas Watson, Chairman of IBM, 1943

“There is no reason anyone would want a computer in their home.” —Ken Olson, President, Chairman and Founder of Digital Equipment Corp., 1977

2004 2006 2008 2010 2012 2015E 2016E 2018E

Wearables

Smart TVs

Tablets

Smartphones

Personal Computers(Desktop and Notebook)

1,000,000

2,000,000

3,000,000

4,000,000

8,000,000

10,000,000

9,000,000

7,000,000

6,000,000

5,000,000

Nu

mb

er O

f D

evic

es I

n U

se (

In T

hou

san

ds)

Our Installed Base Forecast For The Main Device Categories

Source: What All Those Smartphone Industry ‘Market Share,’ ‘Installed Base,’ And ‘Shipment’ Numbers Really Mean, Tony Danova, Business Insider, Nov. 10, 2013

Global Internet Device Installed Base

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If we cast our gaze out five years in advance, we begin to imagine—with a reasonable amount of clarity—that the rapid advancement of artificial intelligence and machine learning, the extended ubiquity of cloud computing, and the next generation of sensors and devices will conspire to increase the pressure on traditional business models and value chains. The pace of which these pressures are applied will continue to accelerate.

We are moving into a world of instantaneous feedback and offers, where context becomes more narrowly focused, and predictive intelligence becomes increasingly precise and accurate.

Author and futurist Kevin Kelly expands on the opportunity ahead in a recent blog post.

In terms of the Internet, nothing has happened yet. The Internet is still at the beginning of its beginning. If we could climb into a time machine and journey 30 years into the future, and from that vantage look back to today, we’d realize that most of the greatest products running the lives of citizens in 2044 were not invented until after 2014. People in the future will look at their holodecks, and wearable virtual reality contact lenses, and downloadable avatars, and AI interfaces, and say, oh, you didn’t really have the Internet (or whatever they’ll call it) back then. And they’d be right. Because from our perspective now, the greatest online things of the first half of this century are all before us.

All these miraculous inventions are waiting for that crazy, no-one-told-me-it-was-impossible visionary to start grabbing the low-hanging fruit — the equivalent of the dot com names of 1984.

Because here is the other thing the greybeards in 2044 will tell you: Can you imagine how awesome it would have been to be an entrepreneur in 2015? It was a wide-open frontier! You could pick almost any category X and add some AI to it, put it on the cloud. Few devices had more than one or two sensors in them, unlike the hundreds now. Expectations and barriers were low. It was easy to be the first. And then they would sigh, “Oh, if only we realized how possible everything was back then!

While this pace of technological advancement is paving the way for unprecedented innovation, it is also leaving in its wake a multitude of organizations that are failing to keep up, or are falling off of the competitive grid entirely.

Looking Ahead

https://medium.com/message/you-are-not-late-b3d76f963142


Competitive pressure is increasing. As barriers to entry continue to decrease, markets across the board are open to a growing onslaught of competitors. We live in a world where the average tenure of an S&P 500 company has decreased from 65 years to just under 15 years, where ROA (Return on Assets) have steadily decreased, and a growing set of companies (Facebook, Uber, Airbnb, WhatsApp, Spotify, Evernote) have risen from relative obscurity to multi-billion dollar valuations in short amounts of time.

In some cases, these sky-rocketing valuations are crushed just as quickly as they rise. Witness the journeys of Palm, Rim, Nokia, Zynga, Groupon, and MySpace as once dominant players that have faded (or appear to be fading) into relative obscurity.

Massive shifts of monetary assets, corporate valuations, and human capital are cascading violently across networks with decreasing regard for traditional industrial, geopolitical, or other previously defined market or time and space boundaries.

The speed at which the (corporate) game is played, and the complexity of the game itself will likely continue to increase.

Many of today’s leaders will tell you that they embrace change, and/or prefer to drive change. However, the pace of change appears to be catching many leaders off guard. It’s simply too fast for them to keep up.

If history is an indicator, even some of the most successful companies today will be blindsided by market forces and competitors that are not even on their radar.

http://twitter.com/intent/tweet?text=The+average+tenure+of+an+S%26P+500+company+has+decreased+from+65+years+to+just+under+15+years.+What%27s+changed%3F+http://jive.to/cio-ebook-tw





1 http://www.pwc.com/gx/en/ceo-survey/

Nilofer Merchant, author and well-respected business thinker, recounts a formative story from early in her career:

One of the experiences I had really early in my career was working with Steve Jobs. I did a presentation to him and he told me that what I was doing was going to be eliminated. It wasn’t necessary, it wasn’t even part of the picture, he said, and I was looking at him, and thinking, “you are out of your mind” because, at that time it was delivering something like 20 percent of the total revenues of Apple, and 47 percent of the profit of the company.

He was (right). Dead right. That’s given me so much perspective because it’s so easy to keep thinking that the base of revenue is what you need to protect. So if anything, I now have the opposite instinct, which is as soon as you know you’re succeeding you have to figure out how also to begin to build the next thing.

In the same way, CEOs need to constantly be thinking about what’s next. This has always been their role. The key change, however, is that we’re enduring shifts now that they are measures of magnitude larger in shorter periods of time.

Research paints a picture of an evolving C-Suite that is increasingly recognizing the need to respond to and leverage rapid technological changes, but seem to be struggling to keep up.

Several recent reports corroborate these observations:

Fifty seven percent (57%) of US CEOs (and 47% globally) are concerned about the speed of technological change as a potential threat to their organization’s growth prospects, up from 42% last year. 1

In the same report, these CEOs named tech advances as the most transformative trend.

What CEOs Need

Q: Which of the following global trends do you believe will transform your business the most over the next five years? (Top three trends CEOs named.)

81% 60% 59%

Technological

AdvancesDemographic

ShiftsShift in Global

Economic Power

CEOs Identified Three Transformative Global Trends

Base: All respondents (1,344)Source: PWC 17th Annual CEO Survey

http://www.pwc.com/gx/en/ceo-survey/

http://www.thinkers50.com/blog/creating-value-nilofer-merchant/


2004 2006 2008 2010 2012 2013

Additional research by IBM over the past decade shows the steady and drastic rise of technology on the agenda of the CEO.

Technology

Factors

Macro Economic

Factors

People Market

Factors

Macro Economic

Factors

Technology

Factors

% of CEOs Ranking Option 1st, 2nd or 3rd

Demographic

Shifts

Shift in Global

Economic Power

Resource Security

and Climate

Change

Technological

Advances

20%40%60%80% 0%

Urbanization

Western Europe

North America

Middle East

Latin America

CEE

Asia Pacific

Africa

All

What are the top three global trends which CEOs believe will transform their business the most over the next five years?

Top Priority of the CEO Agenda


The pressure is mounting. In KPMG’s 2015 CEO study, it’s evident that CEOs are concerned about staying relevant.

These concerns become more tangible when expressed in the words of individual CEOs.

“I see more competitive disruptors on the landscape than I’ve ever seen. Does Google figure out how to own the wallet? Does Wal-Mart figure out how to really bank everybody?” —Beth Mooney, CEO, KeyBank 2

Over the past few years, manufacturers have seen an explosion of new technologies and innovative developments in materials science, advanced manufacturing and synergistic operating models. With this sea change, manufacturers the world over are now starting to take stock of the more complex world that they are operating in and use that insight to redefine ‘the art of the possible,’ fundamentally transforming the way manufacturers compete and succeed.(Jeff Dobbs, Global Chair, Industrial Manufacturing and Partner with KPMG in the U.S. 3)

While CEOs wrestle with delivering short-term results to keep shareholders happy, they’re simultaneously faced with the dilemma of innovating fast or dying a slow or sudden death. They need advisors and visionaries to help them navigate the transition to relevance and growth in a ubiquitously networked society.

While most CEOs recognize that they need to re-tool their organization for the next phase of evolution, most of them feel that their organization is unprepared for the changes they need to make. Only 33% of CEOs feel like their IT function is ready for the pending and necessary transformative change.

“I don’t know a business leader that thinks IT moves too fast. We need to change that.” —Kim Stevenson, CIO, Intel 4

Concerned about

competition taking

business away

Relevance of

products/services

three years

from now

New entrants

disrupting

business model

90% 72% 59%

How concerned are you about the following?

2 http://www.kpmginfo.com/ceo-study/documents/ceo-study1.pdf3 Ibid4 Oracle Open World, September 2014

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13© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise 13© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise

Chapter 2 The CIO Role Reaches A Critical Juncture.


Small efforts provided small returns, large efforts provided large returns.

The environment of closed, “command and control” hierarchies is quickly shifting to complex, interconnected networks. As more nodes (people, devices, organizations, and emerging ad-hoc work groups) connect to these networks, the ability to access and share information, collaborate and learn—and exchange value—multiplies.

It’s also important to note, that “nodes” aren’t just limited to singular people or things. They can also be small groups, large organizations, and/or other networks entirely—all connecting and exchanging information, products and services.

And as new nodes pour into the network, power laws take over, allowing those providing the greatest value to experience exponential rewards, with inactivity pushing competitors towards insignificance. The analog environments of Industrial era economies were linear. Small efforts provided small returns, large efforts provided large returns, and successful products and strategies often realized a sustained competitive advantage over years or even decades. Driving efficiencies helped add incremental success and scale into already successful models, and the bell curve portrayed average, above average, and below average performers. But the world operating by those guidelines is fading away.

A Journey of Transformation



Networked economies create positive self-reinforcing benefits for those adding the most value to the network, where derived value attracts new members who create more value, and the virtuous cycle continues.

We originally observed this phenomenon with telephone networks, AOL, and the early social networks. Today, we see this dynamic with Uber, Airbnb, WhatsApp, Google, Amazon, and Facebook, and are now seeing the effects take off with more frequency and scale.

As the world becomes more networked, increased fragmentation and consolidation take place. Smaller players become more narrowly focused, while larger players become platforms and aggregators.

The initial communication benefit of the networked revolution transcended the traditional boundaries of space and time. The current evolution continues to introduce broader and deeper ways for people to share thoughts and information, as well as exchange larger units of value.

Services like TaskRabbit, oDesk, eLance, and Mechanical Turk allow functions and tasks to be distributed outside of traditional corporate walls. And it’s more than small, menial tasks. Increasingly, “outsiders” are providing contributions at more strategic levels of the organization.

New Rules. New Models.

The current evolution continues to introduce broader and deeper ways for people to share thoughts and information, as well as exchange larger units of value.


As today’s leaders navigate from the post-industrial era into the networked age, framing future issues through the lens of the past will undoubtedly lead to missteps.

The democratization of access to networks is allowing individuals to occupy multiple roles in multiple marketplaces, whether they’re employed full time or not. In addition to finding new markets for their talents, people are also modularizing and enabling access to their physical things and spaces like books, cars, offices, and homes. New peer-to-peer exchanges make utilizing resources more efficient, and extending the laws of supply and demand to just about anything.

Financing is now available through networks like Kickstarter, Indiegogo, Prosper, and Lending Club. And Bitcoin and several monetary alternatives continue to proliferate. As a percent of overall economic impact, these services are small (today), but growing rapidly.

It’s not just people that are connecting in new ways. The much-hyped Internet of Things is also set to explode over the coming decade.

As digital platforms, networks, and ecosystems grow, the value of the network also expands (often exponentially) and attracts new members to join, perpetuating the positive feedback loop. And with each new node that joins a network, possibility grows.

Connection = Increased Complexity

It’s not just people that are connecting in new ways. The much-hyped Internet of Things is also set to explode over the coming decade.

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Disconnected items generally have a finite purpose. But when things become connected, possibilities are multiplied. The ability to connect and communicate with other nodes in a network opens up tremendous potential for new innovations, new models, and unprecedented complexity.

As the world gets more connected, an exponential number of new possibilities arise, many of which are being imagined for the first time. Mary Meeker, Venture Capitalist of Silicon Valley-based Kleiner Perkins Caufield Byers, calls this “the re-imagining of everything.”

Knowledge, resources, capabilities, machinery and all sorts of emerging technologies are increasingly becoming available to anyone from anywhere.

This advancing ability to connect, communicate, and interact with new people and things is opening up more opportunities than most of us can grasp.

While corporations watch emerging stories with interest, many don’t realize that these strange new models may soon have the power to overthrow their organizations, and in some cases, entire industries. When Facebook acquired WhatsApp, it was five years old, had 55 employees and 450 million users, more than half of which had joined in the preceding nine months. Facebook determined that it was worth more than the entire US coffee industry ($19 Billion). It’s been estimated that the telecommunications industry will lose almost $400 billion between 2012-2018 to OTT (Over the Top) services like WhatsApp, Skype, etc.

Connect, Communicate and CreateIt’s been estimated that the Telecommunications industry will lose almost $400 billion between 2012-2018 to OTT (Over the Top) services like WhatsApp and Skype 1

1 http://fortune.com/2014/06/23/telecom-companies-count-386-billion-in-lost-revenue-to-skype-whatsapp-others


We know what Netflix did to Blockbuster. We know what Amazon did to Borders. We see what Tesla is doing to the automotive industry.

In each of these cases, industrial giants didn’t realize the change that was happening because, often, the competitors came from outside their industry.

Even for organizations that do grasp what’s happening, adopting and integrating the right strategies and practices of digitally networked organizations is a challenge, because of decades old management practices and organizational structures.

In March 2011, Square processed about

$1 million ($365 million annualized) worth of payments per day. This year, it is estimated that they will process about

$30 billion. They did not exist in 2009. 2

2 http://techcrunch.com/2014/01/13/putting-squares-5b-valuation-into-context

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The role of a CIO has always been to leverage information technology to create value for the business. Often, a significant investment of the CIO’s time was spent on tooling and managing the organization’s infrastructure to support the stated goals of the organization. In many ways, this hasn’t changed, but for a small, critical nuance.

IT has traditionally been, and appropriately so, subservient to the corporate vision. CIOs would meet with senior leadership who had a clear idea of where they were trying to go, and what the end goals were, from a strategic perspective. The role of the CIO was to bring that vision to reality by leveraging information technology to create value for the business.

However, over the past decade, we’ve seen a new wrinkle. The technology of today is now, more than ever before, opening up new opportunities. Additionally, this is not just for corporations, but for individuals as well. This new reality is having a profound impact on organizational strategy. Consider the following examples:

• Amazon: A retail device manufacturer, and an infrastructure provider (in addition to their core business).

• Google: Making self-driving cars, Internet-enabled balloons, and wind turbines (and a zillion other things).

• Starbucks and Nike: Making commercially available software.

The CIO’s New RoleNot only is technology still an enabler, it’s also increasingly a disruptor. A prime example being how Google Maps killed (seemingly overnight) GPS companies like Garmin and TomTom.

http://twitter.com/intent/tweet?text=Not+only+is+technology+an+enabler,+it%27s+a+disruptor.+Prime+example+is+how+Google+Maps+killed+both+Garmin+and+TomTom.+http://jive.to/cio-ebook-tw










Technology is no longer just supporting change, it’s leading it. In many organizations, shadow IT has forced new BYOD (Bring Your Own Device) policies and has flipped the traditional IT model on its head. Instead of dictating to employees what devices they are to use and how to use them, users are increasingly taking the initiative to use widely available devices and applications to help them do their jobs better, regardless of the corporate rules, policies, and guidelines.

They can do this because for the first time in history, it’s possible, and often probable, that employees and individuals have better personal technology than what’s been provided by the organization. It’s the organization’s job to understand, and align with, these rapidly shifting technological currents. The ebbs and flows of technology are simply shifting too rapidly to constrain and manage them.

IT departments that aim to stifle user-led innovation are often perceived as authoritarian and militaristic, and at odds with their line of business counterparts. Controlling risks, as the “organizational watchdog” is an important role, but only if it’s coupled with the unleashing of new opportunities.

Developing a core competency of appropriately throttling the right amount of innovation, coupled with the appropriate privacy and security constraints is a skill that must be further developed and refined.

Decades ago, any organization that initially prohibited Internet access ultimately understood it couldn’t be controlled. It required new approaches to blending the hiring of the right people with appropriately extended autonomy, trust, and empowerment.

For the right employees, this allowed them to learn, share, and harness the power of connection to assist with the quality of their work and deliverables.

Following this trajectory, extending outward and lowering the boundaries of the organization is a significant challenge for today’s CIO, especially given the inertia of yesterday’s organizational structures, policies, and political structures.

The extension of the Internet into the smaller crevasses of our world and ever broadening computing capabilities into our handheld devices and social networks has extended the typical challenges of IT Infrastructure management onto a broader and more complex scale. Privacy, data security, and intellectual property concerns continue to increase for organizations and the CIOs / CTOs responsible for compliance and security.

Leading The Charge

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Today’s CIO stands at a crossroads that will have significant impact on the CIOs themselves, and also the organizations they lead and serve.

As more functionality is outsourced at every level of the technology stack, the value that CIOs provide, by simply managing and maintaining the infrastructure of the current state, is diminishing. Those that are responding best to the tectonic landscape changes are:

• Becoming strategic architects of the organization’s ecosystem

• Getting closer with customers

• Brokering and forging alliances with their line of business counterparts, vendors, and a myriad of cloud technology solution providers

Somewhat ironically, CIOs are also seemingly not immune from the changes that technology is driving across the rest of the C-Suite. We are at an inflection point where the best-performing CIOs are successfully transitioning from traditional roles of enablement of a top-down strategy to a strategic driver of change and innovation.

A Critical Juncture For The CIO

90%

86%CIOs believe their role is becoming more important to the business

CIOs say their role is becoming more challenging 3

3 http://www.cio.com/article/2380234/cio-role/state-of-the-cio-2014-the-great-schism.html

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The best CIOs have a tremendous opportunity to lead their organizations into the future by leveraging emerging technology to be more responsive, agile and dynamic.

A 2014 report from Gartner 4 highlights two concurrent burdens facing CIOs:

1. Responding to ongoing needs for efficiency and growth by renovating the core of IT

2. Shifting to exploit a fundamentally different, digital paradigm, including new technologies and trends

Current enterprise IT is not set up to easily deliver on the second goal. 51% of CIOs are concerned that the digital torrent is coming faster than they can cope, and 42% don’t feel they have the right skills and capabilities in place to face this future.

“It is an art where you’ve got to deal with the demands of every day but at the same time place it strategically at the heart of what the company is doing.” —Jeroen Tas, group CIO of Philips 5

In the midst of this transition, there appears to be an unprecedented junction in the role of the CIO. According to the most recent edition of the State of the CIO survey:

of CIOs surveyed make more money ($249,000 vs. $182,000), are viewed as strategic and innovative partners, and control a majority of the technology budget for their organization. These folks appear to be well on their way to transforming themselves into the model CIO of the future enterprise.

of CIOs however still mostly carry the traditional responsibilities of rolling out large-scale enterprise projects, while constantly looking to cut costs, maintaining IT as a cost center.

of CIOs feel “sidelined” and are relegated towards managing contracts and aggressively cutting costs, likely as their senior leadership fails to adapt to the transition to a hyper-connected economy.

It’s important to note that IT budgets are generally not increasing, so most CIOs are held hostage by current challenges, the inertia of previously defined budgets, and several year initiative backlogs. But their organizations desperately need their help to “jump” to the next level of organization.

Challenges and Opportunity

48%

28%

25%

4 Taming the Digital Dragon, Insights from the 2014 Gartner CIO Agenda5 http://www.i-cio.com/big-thinkers/oliver-bussmann/item/ensuring-it-is-viewed-as-a-strategic-business-function

23© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise 23© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise

Chapter 3 A New Focus.


We now operate in a world enabled by knowledge flows that stream through layers of networks. Thriving in this complex environment will require significant adaptation and evolution by today’s organizations and the IT systems that power them. In order to overcome the challenges outlined earlier in this e-book, they must first be understood by the many companies that encounter them. In many cases, there is no one better positioned to help leadership address these challenges than the CIO. CIOs have the background and know-how to to harness emerging technological capabilities and create new value propositions for their customers.

The strategic levers of the next generation enterprise do not consist of defining a clear path and then leading everyone down it, but rather creating a platform where network participants can operate in their own preferred style, and meet their own, unique needs. It’s about unleashing innovation for individuals, the organizations they serve, and the ever-expanding ecosystem of participants and stakeholders to exchange value across a broad range of participation levels. How do...• Large hotel chains respond to the uptick of

Airbnb usage?

• Corporations with regional transportation needs adopt or co-opt the user experience and network efficiencies displayed by Uber?

• Retail manufacturers re-imagine the multi-channel or omni-channel customer experience, and re-configure their value chains?

• Organizations harness the intelligence of hundreds of thousands of people, and enable them to connect, communicate, and collaborate in just a fraction of the time they did two years ago?

• CIOs enable collaboration to take place across devices, operating systems, geographies, time zones, databases, and applications? Perhaps more importantly, how can they build a platform that evolves as quickly as market demands do?

A Strategic Necessity: Envisioning The Next Generation Enterprise

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In most organizations, CIOs have been pigeonholed as the helpdesk or the technology infrastructure provider/maintainer to help the business execute on their goals. In fact, only 17% of CIOs have a seat at the strategic table in their organizations.6

It’s fast becoming apparent that every company, in every industry and geography, is becoming (or will soon become) a technology company. Senior leadership across the globe increasingly recognizes that they must leverage emerging technology to adapt and evolve, or be left behind.

From a knowledge perspective, today’s CIO has the pole position to lead their organizations into this complex and unpredictable future. Their technical

acumen, knowledge, and experience are far ahead of their C-Suite peers. However, they’re often challenged politically, strategically, and lack the financial insight to drive real change.

These realities dictate that successfully leading the way forward will require a broadening of skillsets, capabilities and investment. Failure to do so will lead to a continuation of the status quo and/or further encroachment on the CIO’s value proposition by the advance of more widely available cloud-based technologies.

Embracing Change. Increasing Impact.Only17%of CIOs have a seat at the strategic table.

6 http://www.ey.com/Publication/vwLUAssets/DNA_of_the_CIO/$FILE/DNA_of_the_CIO.pdf

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Here are some action steps to help CIOs prepare and position their organizations to embrace the opportunities ahead.

It’s Time To Take Action


CIO Action Steps

Most CIOs have traditionally been tasked with solving today’s (or yesterday’s) challenges. Investing more time in understanding what’s next, and more importantly, translating these coming changes into possible opportunities will help position the CIO as a visionary and meaningful contributor to the future of the organization.

Align Towards The Future



We’re smack dab in the middle of a several-decade transition from the industrial to the networked age. Interconnected meshes that move faster and more effectively are overwhelming traditional hierarchies.

Instead of leveraging narrowly defined point solutions, the Internet’s next wave involves:

• Harnessing knowledge flows across networks.

• Leveraging the power of digital networks to accelerate discovery, connection, learning, and communication.

• Using collaboration to predict and respond to changing market demands.

• Developing infrastructures and platforms that allow rapid technology adoption for defined needs and use cases.

And, in turn, adaptation for new and evolving use cases will be a critical differentiator moving forward. It’s important to note that this is no longer just a technology discussion, and the lens must zoom out to consider changes to the entire business model.

Think Networks and Platforms

CIO Action Steps


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Trust and relationships have always been proxies for influence. Earning attention is largely based on developing authentic relationships and contributing value. While forming relationships with any Line of Business (LOB) has always been important, it may be time to reassess these relationships and invest the time and efforts to create deeper partnerships.

Your best bet is to always strive to understand what truly motivates and drives your LOB partners’ decisions, behaviors and successes. Then evaluate ways to help to amplify their efforts.

Understand and Evaluate

CIO Action Steps



One of the biggest challenges of adopting emerging technology is developing a deeper understanding of what it is, and the implications it can and will have on existing models and processes.

The bedrock of change is a common understanding of the issues at hand, and a clear vision of what needs to be done. Evolving the company leadership’s views and perspectives of what’s happening, what’s possible, and what’s next will take time and persistence.

This places increased demand on visioning and effective communication. Most CIOs will need to step up their investment in communicating their ideas in a way that resonates.

Educate and Evangelize

CIO Action Steps


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The future of your organization depends on new solutions. Critical thinking and creativity have never been more important. As the world becomes more connected, it creates more possibilities and complexities for value exchange.

Innovation will rely on constantly reframing the landscape and creating new value propositions. While the best practices help aid the lagging areas within your organization, tomorrow’s leaders will re-imagine and re-invent the status quo, and cultivate a culture that ideates and invents. Passion projects, hackathons, and labs may help spur new and interesting ideas that lead to commercially viable innovations.

Spark Creativity and Imagination

CIO Action Steps



CIOs have long been the information technology enablers of their organizations. This requirement isn’t going away anytime soon. Augmenting enablement capabilities with insightful contributions around leveraging technology to gain market share, developing deeper customer intimacy, and/or improving critical financial metrics will help increase the CIO’s value to the organization. In other words, humbly beat your peers to where they’re wanting to go, and then help show them the way.

Envision and Enable

CIO Action Steps



Capturing the opportunity of the future will require rapid, strategically focused change. And selling that change centers around having a compelling vision, justifiable business cases and value propositions.

Projects that can reasonably expect to provide a meaningful impact to the organizations have a much higher chance of being “green lighted”. Improving financial acumen reduces another barrier to making a strategic impact on the organization.

Convincing the CFO often requires speaking the same language—an area of growth for most CIOs. Driving change will partially rely on being able to sell to your primary investors (CFO, CEO, COO, and Board). Get the pitch down. Practice and refine.

Craft New Value Propositions

CIO Action Steps


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34© 2015 Jive Software, Inc. All rights reserved | Jive Confidential Envisioning and Enabling the Next Generation Enterprise© 2015 Jive Software, Inc. All rights reserved | Jive ConfidentialJive is the leading provider of modern communication and collaboration solutions for business.For more information, visit www.jivesoftware.com

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There is no better time to be in business. There is no better time to be a CIO.

Best wishes on your journey.

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Redefining the CIO › Online_Assets_Jive... · and human capital are cascading violently across networks with decreasing regard for traditional industrial, geopolitical, or other