Role of the cio in the digital age

NGUYEN BA QUYNHEx-Deputy CEO of IBM Indochina

Role of the CIO in the Digital Age:

Leading through Business Partnership &

Innovation Management

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PwC 17th CEO Survey Result (Jan 2014)

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PwC 17th CEO Survey Result (Jan 2014) (cont.)

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CEO are more confident about growth in advanced economy than in emerging economies

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q1

Slide 5

q1 digital economy, social media, mobile device & big dataquynhnb, 11/23/2014

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Digital Business: Growth Engine For CEO

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Source: Accenture CEO Briefing 2014

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Customer-centricity requires a cross-functional approach

The new triumvirate:

Operations, IT and Line of Business

and business unit leaders

and technology leadersand cross- functional

business leaders

President

SVP/GM of Operations

Chief Transformation Officer

Chief Innovation Officer

Chief Customer Officer

Chief Risk Officer

…

VP of Claims Processing

VP of Retail Lending

VP of Commercial Loans

VP of Outpatient Services

VP of Power Delivery Services

Chief Technology Officer

VP of Software Development

Enterprise Architect

IT Architect

Successfully attracting and retaining customers requires companies to think and act cross functionally.

~ Adam Klaber, Managing Partner Emerging Markets,

IBM GBS

At HCF we have found that delivering a superior customer experience requires tight partnership between operations, IT and the various lines of business.

~ Stephen Nugent, General Manager - Operations,

Hospitals Contribution Fund

“

”

“

”

Strategic Leadership: Chief Executive OfficerChief Financial Officer

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Infrastructure (Traditional/ Cloud-base)

The Deconstruct & Conquer Game Changer – Industry Framework

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Transformation – Organizational & Process

Business Process Outsourcing

Mergers, Acquisitions, and Divestitures

Transformation – Organizational & Process

Business Process Outsourcing

Mergers, Acquisitions, and Divestitures

On Demand Operating Environment

Requires

Composable

Processes

(IBM

Component

Business Modeling)

Services Oriented Architecture (SOA)

SO

MA

Flexible Business

Flexible IT

Composable

Services

(SOA)

Software

Development

Development Infrastructure

Integration

Management

Infrastructure

Management

Business

Process

Modeling(IBM

WBM Modeler)

Process

Definition

Standards

A flexible business model requires flexible IT

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The Deconstruct & Conquer Game Changer

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9 Entry Points for a SOA Transformation, allow companies to identify the individually best suited starting point

Business Model

Processes

IT

Applications

IT Infrastructure

IT Transformation

Start

Business TransformationStart

Business Process Management

People

Productivity

Information as

Service

StartStartStart

Application

Integration

Application

Modernization

StartStart

Infrastructure

Modernization

Start

SOA

GovernanceStart

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Allows for dynamic

Service selection,

substitution & matching

Increased efficiency

and reuse of services

Increased access

to information

(e.g. “Get Customer”)

Faster

Development

& Delivery -

Reduces time & cost

to deploy a project

Improved

Flexibility -

Decouples point-to-

point connections

from the interfaces

Current State

Service Apps Apps Apps

Apps AppsService Service

Interface Interface Interface

Interface Interface Interface Interface

An Enterprise Service Bus (ESB) was [Client Name]’s technology entry-point into SOA

Future State

Service Service Service Service

Service ServiceApplications

Enterprise Service Bus (ESB)

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The Evolution of Cloud Computing

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Innovation Framework defines the activities, processes, enablers and linkages that enable innovation within an organization

Innovation Agenda

Innovation Management & Governance

Innovation Enablers

Innovation Enablers

� Elements that enable execution of the overall innovation process


� Structures, processes, policies, frameworks and tools used to manage innovation

Innovation Agenda

� Overall direction, life-stage, mix, characteristics and value proposition around innovation

Business Strategy

� Overall objectives of the business as defined by corporate vision, mission etc.Business

Strategy

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Elements of the Innovation Agenda define the overall direction for innovation and maintain alignment with the business strategy

Business

Strategy

Portfolio Management

Innovation Organization Management

Risk/Benefit Evaluation

Project Management


Knowledge Management

Innovation Performance Monitoring

Incentives and Rewards

Communi-cations

Innovation Agenda

Innovation Strategy

Vision

Innovation Mix

Innovation Model

Definition

Value Proposition

Innovation Enablers

Talent CultureInternal

CollaborationExternal

CollaborationTools &

FrameworksInfrastructure

Element Objectives

� Selecting the desired innovation lifecycle

stage (i.e. pioneer, leader, disruptor,

consolidator, follower)

� Establishing the organization’s overall

direction regarding Innovation and ensuring

alignment with defined business strategy

� Defining the desired mix of innovation (i.e.

business model, products and services,

segments and markets, operations,

channels)

� Defining the fundamental innovation model

characteristics (i.e. formal vs. adaptive;

specialized vs. disseminated; open to

external ideas vs. closed; integrated in LOB

vs. segregated in separate organization)

� Determining and communicating the value

proposition desired from innovation

Innovation Strategy

Vision

Innovation Mix

Innovation Model

Definition

Value Proposition

Innovation Agenda

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Innovation Management & Governance elements provide the structures, processes, frameworks and tools to manage innovation

Business Strategy




Project Management



Business Value

Analysis


Communi-cations

Innovation Agenda

Innovation Strategy

Vision

Innovation Mix

Innovation Model

Definition

Value Proposition

Innovation Enablers





Innovation Management & Governance Element Objectives

� Tracking, monitoring and analyzing the

portfolio of innovation projects from

inception to completion

� Managing resources within the innovation

organization

� Developing criteria and benchmarks to

evaluate risks associated with the

innovation portfolio

� Managing and reporting on individual

projects against timeline and budget

� Collecting, organizing, storing and

distributing corporate innovation knowledge

� Developing, tracking and reporting

individual and organizational KPIs to asses

the business value of innovation

� Creating mechanisms to reward individual

and team performance

� Systematic internal and external

communications around innovation




Project Management

Business Value

Analysis



Communi-cations

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Innovation Enablers provide necessary support for execution of the overall innovation process

Business Strategy




Project Management



Business Value

Analysis


Communi-cations

Innovation Agenda

Innovation Strategy

Vision

Innovation Mix

Innovation Model

Definition

Value Proposition

Innovation Enablers





Innovation Enablers Element Objectives

� People assets assigned to innovation, and

through the company

� Organization personality and innovation

archetype as defined by assumptions,

values, norms, behaviors

� Amount of collaboration (both horizontally

and vertically) within the organization

across various LOBs and divisions

� Amount of collaboration between the

organization and other external businesses,

institutions and/or people

� Methods and tools to support the various

phases of the innovation cycle

� Systems, environments and internal IT

processes in place to support development

and testing of innovations

Talent

Culture

Internal Collaboration

External Collaboration

Infrastructure

Tools & Frameworks

A company’s individual innovation culture needs to be fully understood to appropriately structure and invigorate an innovation program

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By understanding the existing corporate culture and innovation archetype, the innovation enablement approach can be customized

� “Bottoms up” approach

� Content with “leading from

behind”

� Fully uses employees

� Recruited for creativity

and passion

� Well-stated innovation

goals for individuals

� Effective stage gate

process, pilots and trials

� Clear metrics of success

and failure

� Environments that

allow experimentation

� Generates Large number

of ideas – mainly internal

Marketplace of ideas (16%)

En

vir

on

men

tP

rocess

Peo

ple

Lead

ers

hip � “One man show”

� Leader determines direction of

innovation & selection of ideas

� Adept at the teamwork

necessary to execute leaders’

plans

� Fast implementation of select

ideas

� Portfolio maps and strategic

plans to link executive vision to

daily activities

� Few inter-dependencies with

outside parties

� Select ideas generated and

pursued

� Involved leadership

� Sets priorities, raises urgency,

and allocates resources

� Small groups dedicated

to problem-solving

� Strong team culture

� Fewer ideas, with strong formal

vetting process

� Strong focus on cross-functional

teams for rapid execution

� Diffuse product lines impossible

for a small set of visionary

individuals to control

� Rigorous scanning

� Leadership sets framework for

collaboration

� Ideas generated with partners &

customers

� Collaborators

� Empowered to make deals with

outside vendors

� Robust stage gating and

implementation mechanism

� Frequent pilots and trials,

involving partners and

customers

� Understanding of customer

needs and partner participation

� White space innovations

Visionary leader (22%)

Innovation through rigor (37%)

Innovation through collaboration (25%)

Source: IBM Innovation Archetype research and analysis

A research study of 174 organizations across 24 countries and a broad set of industries, identified four unique innovation models (or archetypes) that represent how companies innovate

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The Innovation Cycle represents an iterative process for assessing capabilities and ideating, developing and realizing innovations

Innovation Cycle

Capability assessment� Identify and assess innovation capabilities, structures,

processes, assets, tools, methods and innovation archetype (generally restricted to the first cycle)

Sensing and Envisioning� Obtain inputs into, and scope the innovation effort through

activities which may include trends analysis, scenario envisioning, area identification and selection

Ideation� Leverage various techniques and tools to conceive ideas

around the innovation areas

Evaluation� Prioritize and select a set of high value ideas for each defined

innovation area for future investment and development

Development� Refine selected ideas through additional research, compliance

assessment, clear business model articulation, full business case development, etc.

Realization� Execute, release or implement the idea

Capability Assessment

of the client organization

Sensing & Envisioning

of inputs into the innovation process

Ideation

around identified areas

Evaluation

of ideas identified

Development

of selected ideas

Realization

of ideas through execution

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Combining the Innovation Framework and the Innovation Cycle provides an integrated, comprehensive approach to expanding innovation within a corporate environment

� The Innovation framework summarizes all

the elements necessary to align strategies

and implement robust structures and

processes to support innovation.

� The Innovation Cycle provides a timeline

and engine to drive and capture innovative

ideas and initiatives.

� Without a supportive organization, innovative

ideas are unlikely to be embraced or

managed effectively.

� Without clear timelines and an engine, even

the most innovative organization may not

deliver practical results.

Capability Assessment

of the client organization

Sensing & Envisioning

of inputs into the innovation process

Ideation

around identified areas

Evaluation

of ideas identified

Development

of selected ideas

Realization

of ideas through execution

Business Strategy




Project Management



Business Value Analysis


Communi-cations

Innovation Agenda

Innovation Strategy

Vision

Innovation Mix

Innovation Model

Definition

Value Proposition

Innovation Enablers





By coordinating the innovation framework and the innovation cycle, measurable benefits and growth from innovation are possible

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Thank you!

Enabling Growth and Differentiation through Innovation Management