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A presentation based on research I conducted for Harvard Business Review Analytic Services, delivered at the St. Louis Gateway to Innovation conference.
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Digital Innovation, IT & the Art of Influence
Abbie LundbergResearcher, advisor & former editor in chief, CIO magazine
Innovation imperative in business
Value shift for IT
Collaboration and the art of influence
HBR Survey: Respondent Profile420 HBR subscribers – mostly senior or exec management
Large organizations
Key industry sectors
Globally diverse
3
15% Technology
12% Financial Services
11% Manufacturing
8% Healthcare
8% Consulting
7% Government/NFP
Other sectors = 6% or less
45% 10,000+
employees
41% 1,000 to 10,000
Average 2011 revenue: $3.3B
32% with revenue of $5B or more
40% North America
24% Asia
23% Europe
8% MEA
5% South/Central America
Posture toward digital innovation
4Q: Which of the following best describes your company’s posture toward IT-driven business innovation?
32%
50%
18%
In company DNA; consciouslypursued strategy throughoutorganization
Pockets of ad hoc innovation, butnot pervasive or replicated acrosswhole company
Innovation not a top priority; focuselsewhere
Innovator Accelerators
Ad hoc Innovators
Low Prioritizers
The IT sector is most likely to contain Innovation Accelerators (52%, index 168)
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Our IT department is seen as…
a. Cost center
b. Service provider
c. IT partner, trusted collaborator
d. Business peer or game changer
Source: CIO Executive Council
16%
20%
33%
29%
2%
Business peer/game changer
IT partner
Service provider
Cost center
None of the above
Q: How would you
characterize your
company’s current IT
organization?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
53% of Low
Prioritizers view their IT department as a cost center v. 29% of all respondents
30% of Innovation Accelerators
see their IT department as a peer or game-changer v. 16% of all respondents
View of IT today
Innovation imperative
7
32%
28%
25%
22%
18%
16%
31%
33%
29%
29%
32%
27%
32%
35%
42%
46%
48%
55%
Supply chain/partner ops
Internal enterprise operations
Business models
Products and services
End user business processes
Customer engagement/insight
Minimally affected (scores 1-5) Moderately affected (6-7) Transformed (8-10)
Q: What areas of your business will be most affected by IT-enabled innovation over the next three years?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Innovation imperative - transformed (8-10)
8
44%
45%
64%
64%
64%
70%
35%
26%
41%
41%
34%
53%
23%
23%
38%
31%
29%
36%
35%
32%
48%
46%
42%
55%
Internal enterprise ops
Supply chain/partner ops
End user processes
Products & services
Business models
Customerengagement/insight
All Low Prioritizers Ad hoc Innovators Innovation Accelerators
Q: What areas of your
business will be most
affected by IT-enabled
innovation over the next
three years?Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Accelerators are commercializing IT40%
25%
16%
28%
Innovation Accelerators Ad hoc InnovatorsLow Prioritizers All
Q: Has your company
commercialized any of
its own internal IT
initiatives?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
What’s being commercialized
10
23%
23%
47%
74%
35%
35%
29%
58%
25%
25%
25%
67%
28%
29%
37%
66%
Redefined product value chainas service to others
Make analytics capabilityavailable for a fee
Offer internally developedcapability as cloud-based
service
Used IT to make products/services smarter and sell info.
around them
All
Low Prioritizers
Ad hoc Innovators
Innovation Accelerators
Q: What types of IT initiatives has
your company commercialized?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Staying on top of new IT developments
11
29%
36%
42%
32%
33%
63%
41%
42%
19%
22%
24%
27%
28%
41%
41%
48%
Social platforms
Futurist groups or individuals
Technology labs
Mgmt consulting cos. likeMcKinsey or Accenture
Analyst organizations likeGartner or Forrester
Emerging tech group in IT
Super users in the businessbring new ideas to IT
Industry conferences/events
All Innovation Accelerators
Q: What
mechanisms does
your company
employ to stay on
top of new IT
developments?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Innovation Funnel
12
20% 20%
30%
51% 51%
61%
18%
25%
20%
44%46%
36%
13%
17%
23%
27%
39%
35%
18%
22%24%
43%46%
44%
Skunk works in IT Skunk works in biz Ext crowdsourcing Int crowdsourcing End-user app dev X-funct. innov board
Innovation Accelerators
Ad hoc Innovators
Low Prioritzers
All
Q: Which of the following approaches to IT-driven business innovation does your company employ?Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
Accelerators lead together
13
39%
2%
11%
48%
42%
12%14%
32%
44%
12%
6%
38%41%
9%11%
38%
Business-Led Stealth IT IT-Led Collaborative
Innovation Accelerators Ad hoc Innovators Low Prioritizers All
Q: Which best describes your organization’s approach to IT-enabled business innovation?
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
33%
36%
38%
38%
39%
50%
52%
52%
59%
17%
13%
22%
20%
11%
23%
22%
24%
28%
17%
8%
17%
16%
9%
17%
18%
16%
13%
Available budget
Ability to generate new ideas
Staffing levels
Communication skills
Overall speed & agility
Receptiveness to new ideas
Technical skills & expertise
Knowledge of the business
Access to right technology
Low Prioritizers
Ad hoc Innovators
Innovation Accelerators
Accelerators: Highly capable IT depts.Top box scores (8-10; highly capable)
Q: The following is a list of capabilities that enable an IT organization to support new business
ideas and opportunities. Please rate your own IT organization on each.
38%
20%
16%Low Prioritizers
Ad hoc Innovators
Innovation Accelerators
Communication – needs improvementTop box scores (8-10; highly capable)
Q: The following is a list of capabilities that enable an IT organization to support new business
ideas and opportunities. Please rate your own IT organization on each.
Source: Business Transformation and the CIO Role, Harvard Business Review Analytic Services
3 PILLARS OF INFLUENCE
Credibility Relevance Trust
CREDIBILITYManage
ExpectationsCreate Proof
PointsPublicize Results
RELEVANCE
TRUSTBe
HonestAdopt
TransparencyBuild
Relationships
RELATIONSHIPSWhat do you
have in common?
What can youdo for them?
(go first)
Practicethe art of the
schmooze
Innovation imperative in business
Value shift for IT
Collaboration & InfluenceCredibility Relevance Trust
