The Evolving Role of the CIO - CDM Media · •3. Mistaking your managers for Innovators –They...
Transcript of The Evolving Role of the CIO - CDM Media · •3. Mistaking your managers for Innovators –They...
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The Evolving Role of the CIO
Where it’s been; where it’s going!
Lee W. Crump, CIO & Group Vice President
Rollins, Inc.
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Rollins, Inc. (Paid political announcement)
• 112 years old
• World’s Largest & Best Pest Control Company
• 1.3 Billion in annual revenue
• Holding Company; 8 pest control companies
• 500+ Branch locations
• 10,000 + employees
– 1000+ Sales people
– 4000+ Service Technicians
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The CIO Evolution • The 1970’s
– Data Processing Managers
– Glass room; computer operations, custom code all developed internally
– Accounting functions; we reported to Finance
– Technology Expertise
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The CIO Evolution • The 1980’s
– Director of I.T.
– Still reported to Finance in most cases
– Personal Computers breaking the glass room
– Packages were being developed now
– We had to add Project Management to our areas of expertise
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The CIO Evolution
• The 1990’s
– CIO
– Reporting to the CEO or COO
– Technology is evolving; networks are now
affordable, and distributed processing is prevalent
– Outsourcing is the hot button
– Now we need expertise in Vendor Management
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The CIO Evolution
• The 2000’s
– Still the CIO
– Reporting to the CEO
– It’s all about the Web
– Mobility becoming viable
– Expertise in Process Improvement
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The CIO Evolution
• The 2010’s
– Still the CIO
– Reporting to the CEO
– Digital Marketing
– Consumerization of IT
– Expertise in Innovation
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The CIO Paradox • (w/ thanks to Martha Heller)
• What other CXX position touches as much of the
business?
• What other CXX (or any) position is required to
adapt, change, and innovate while being
required to support and keep running every
decision of the last 15 (or more) years?
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The CIO Paradox • Marketing??
– Can you imagine the CMO, with a flat budget, being required to keep running all the campaigns from the last 15 years?
• Accounting??
– The CFO still does things the same way they did in 15th century Venice (albeit with systems we have provided them)
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The CIO Paradox • Our technology paradigm now evolves every 18 months
– Unfortunately, so do most CIO’s
• Successes are business successes; failures are I.T. failures
• We have many, many successes every day, but they are taken for granted and expected.
• Our few failures are shouted out to the world.
• “Blaming business failures on IT is the last refuge of a scoundrel”
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The CIO Evolution • What got us here won’t keep us here!!!
• Beyond today?? – Darwin’s Theory: Survival dependent on ability to
adapt and change; not about “survival of the fittest”.
– We will become a “Technology Broker” • Partnering with the business and moving IT into the
business.
– Develop Strategy; require oversight to insure consistency of technology direction & fit
– Give up staff; become a consultancy • Primarily to Marketing, Sales & Operations
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How do we adapt and change (and survive) • Gartner says: By 2017 the CMO IT budget
will exceed the CIO IT budget.
• IT budgets are decreasing as a % of revenue while CMO budgets are increasing. – Where do you think CEO’s prefer to invest?
– CMO’s are driving cross-functional teams to utilize Social Media; they aren’t waiting to use what IT gives them.
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It’s all about Marketing & Sales • We are entering an age of technology disruption
unlike anything we have ever seen – Business models are being destroyed more quickly
than ever before
– Look at your teens and people in their 20’s • Your new customers
– They carry phones, but don’t use them to talk
– They want everything on line and it is all about data
– It is the iAge!
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It’s all about Marketing & Sales • Become best friends with your CMO; don’t be viewed as
obstructionist. – Included, they are your partner. Excluded, they are your judge!
– It is where the action will be
– It is where the money will be
• Communicate effectively with the Executive team to share the paradox you face as CIO – the need to keep legacy systems alive and working
– The increasing TCO of legacy systems
– The futility of piling current technology on top of obsolete technology
– Complex interfaces & antiquated architecture
– Stop the madness!
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The Burning Platform
• Your best friend if it doesn’t kill you!
• The pain of change….. – Bury yourself in the business; identify the critical
systems
– Determine and communicate their TCO and threat of outage
– Get the business executives on your side by getting on their side
• Be sure you understand the business strategy
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Innovation:
• Per Jeff DeGraff, a professor at the University of Michigan
• Stop researching & start doing
• Planning is important, but learning from experience is more important
• The exact opposite of what made us successful in the past!
• Get ready for change on a huge scale !
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Innovation:
• Innovation isn’t waiting until you can do a “big
bang”
• It is a whole bunch of very rapid baby-steps
• Innovation is spending time with your customers
to see what they are having to work around.
• What is annoying them?
• Stop their pain
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Innovation:
• The seven deadly sins according to Professor DeGraff:
• 1. Believing you can see the future
– Make smaller, wider & more frequent bets
• 2. Choosing Big over Fast
– Pick up your pace & don’t be afraid to fail
• Fail fast; fix fast; deliver fast
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Innovation: • The seven deadly sins:
• 3. Mistaking your managers for Innovators – They aren’t; find and encourage the “Deviants”.
– Your managers will always opt for small, incremental change.
• 4. Having more ambition than capability – Base your strategy on what you know you can do
successfully
– Small quick successes will bring capability! – Celebrate the incremental progress.
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Innovation:
• The seven deadly sins:
• 5. Starting at the center and moving out – Instead, work from the outside in; start at the edges
and move back to the center.
• 6. Listening to the wrong customers
– Follow the customers that move first; the change has already happened.
– You just don’t know it yet!
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Innovation:
• The seven deadly sins:
• 7. Failing to connect the dots – Educate your leaders and peers about the pace of change
– The need to re-act quickly; big change in small steps.
• Tips: – Make sure the person you are pitching is open to new
ideas
– Don’t provide a “polished & finished” pitch
• You aren’t that smart!
• You need to inspire involvement and expansion
• Polished invites critique; not involvement
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Survey data; food for thought: • CEO Survey by IBM (bi-annual)
– Technology is the number 1 external force impacting their organizations.
– They expect technology to drive the most change in their organizations in the next 3-5 years
• This was number 6 in 2004; has moved up every 2 years since and is now number 1
• They are ranking it higher than people skills, market factors, economic factors, regulation, globalization, geopolitical,and environment.
– Over 50% say that Social Media will be the primary form of engaging with their customers 5 years from now.
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Survey data; food for thought:
• CEO Survey by IBM (bi-annual)
– CEO’s are tackling disruptive innovation
• They aren’t implementing more efficient
operations; they are creating brand new ones
– The three Leadership Traits they seek in their
Direct Reports:
• 61%: Customer Obsession
• 60%: Inspirational Leadership
• 58%: Leadership Teaming
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Survey data; food for thought:
• CMO Survey by IBM (bi-annual)
– CMO Critical Priorities matched CEO priorities
exactly.
• Do yours?
– CMO “Game-Changers”
• The Data Explosion
• Social Media
• Proliferation of devices and channels
• Shifting Consumer Demographics
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Survey data; food for thought: • CMO Survey by IBM (bi-annual)
– The “out-performer” companies are focused on understanding individuals; not just markets
• Customer intimacy is crucial and the CEO’s and the CMO’s both know it.
• Business success in this century will depend on that intimacy
• It will be about relationships; not about transactions
• Belief and behavior from the eyes of the customer will be critical
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Survey data; food for thought:
• CMO Survey by IBM (bi-annual)
– CMO’s are drowning in data
• They need information
• Marketing and IT need to not just collect the right
information, they need to:
– Make sure the right people have access
– Make sure it can be properly analyzed
– Make sure the right decisions can be made
based on the data
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Survey data; food for thought: • CMO Survey by IBM (bi-annual)
– Key areas CIO’s can provide value to the CMO:
• Lead, Invest, Engage
• Increase customer loyalty
• Digital technology will be (if it isn’t already) the most important channel to interact with customers and attract new ones.
– What’s in it for you? • Survival!