1.IBM Institute for Business Value

2. IBM Institute for Business IBM Institute for Business Value 3. The IBM global C-suite Study draws on a decade of research with over 20,000 interviewsCEOsCIOsCMOs6,3007,0002,200 600IBM Institute for Business ValueCSCOsCFOsCHROs4,5001,500 4. This study covers 4,183 face-to-face conversations with CxOs in 70 countriesNorth AmericaWestern EuropeCentral and Eastern Europe6051,349304631 Japan637475South AmericaIBM Institute for Business Value182 Middle East and AfricaAsia Pacific 5. CEOs consider technology the single most important external force shaping their organizations futureCEO Studies 20042013200420062008201020122013Technology factors Market factors Macro-economic factors People skills Regulatory concerns Socio-economic factors Globalization Environmental issues Geopolitical factorsIBM Institute for Business Value 6. In the most recent Interbrand study of most valuable brands 6 were based on information technologyIBM Institute for Business Value10 most valuable brands in the world 7. In the most recent Interbrand study of most valuable brands 6 were based on information technologyIBM Institute for Business Value10 most valuable brands in the world 8. Three characteristics of outperformers1. Open up to customer influence 2. Pioneer digital-physical innovation 3. Craft engaging customer experiencesIBM Institute for Business Value 9. Three characteristics of outperformers1. Open up to customer influence 2. Pioneer digital-physical innovation 3. Craft engaging customer experiencesIBM Institute for Business Value 10. Connect with your customerIBM Institute for Business Value 11. Connect with your customerInsert Video 1 here - Start automatically - Play full screenIBM Institute for Business Value 12. As customers gain more power over the business via social media, their expectations keep rising and their tolerance keeps decreasing. CIO, Retail, TurkeyIBM Institute for Business Value 13. CEOs say customers come second only to the C-suite in terms of strategic influence Key influencers on enterprise vision and strategy20%78%C-Suite55%Customers53%Board of Directors 44%Corporate strategy function Non-executive senior leadership26%Key external business partners25%Parent companyIBM Institute for Business Value23% 14. CEOs stand ready to involve customers in what is typically considered their domain: developing business strategyCustomer inclusion in business strategy development43% % 40moreToday60% 43%60%IBM Institute for Business Value35 Years 15. Deep collaboration is the key mechanism by which customers are embedded in the strategic planning processCxOs plan to collaborate much more extensively with customers90%46% % 96moreToday90% 35 Years46%IBM Institute for Business Value 16. Outperforming enterprises are more likely to collaborate extensively with their customersGreater collaboration with customers translates into greater financial success39% more 54%Underperformers60% OutperformersIBM Institute for Business Value 17. Three characteristics of outperformers1. Open up to customer influence 2. Pioneer digital-physical innovation 3. Craft engaging customer experiencesIBM Institute for Business Value 18. Two-thirds of enterprises have a weak digital-physical strategy or none at allTypes of digital strategy33%36%36%have an integrated digital-physical strategy31% Integrated digitalphysical strategy IBM Institute for Business ValueLimited digital strategyNo digital strategy 19. CMOs see a critical need to implement an organization-wide digital strategyDigital ambitions CMOs87%16%Integration of cross-channel touchpoints13%83% Analytics to capture customer insights20%78% Social networks to foster collaboration13%73% Workforce aligned to opportunities11%69% Digitally enabled supply chainTodayIBM Institute for Business Value3-5 Years 20. Developing a fully integrated digital-physical strategy reaps rewardsFully integrated digital - physical strategy31% % 26moreUnderperformers39% OutperformersIBM Institute for Business Value 21. Three characteristics of outperformers1. Open up to customer influence 2. Pioneer digital-physical innovation 3. Craft engaging customer experiencesIBM Institute for Business Value 22. Recognizing the change in customers expectations, CxOs are rebalancing their prioritiesAreas of personal involvement20% Customer experience management+8%+7%eCommerceTalent management+5%Supplier, vendor and partner management-5%Risk and security-5%IT systems and operationsIBM Institute for Business Value-6% 23. All CxOs plan to focus more on the customer experience in the future, with CIOs clearly upping their game Change of focus Customer Experience ManagementCEO CFO34% 9%41%13%CHRO29%CIO28%38%CMO75%CSCO29%TodayIBM Institute for Business Value64 ] more %46%37%35 Years77% 24. Most CxOs recognize that they dont understand their customers well today, yet anticipate greatly improving going forwardHigh level of customer understanding35% 76%% 117moreToday35%IBM Institute for Business Value76% 35 Years 25. The more deeply an enterprise understands its customers, the more likely it is to flourishHigh level of customer understanding29% % 62moreUnderperformers47% OutperformersIBM Institute for Business Value 26. In the coming months, we will further explore each of the specific C-suite rolesCxO Point of View Schedule CEO and CIO November 2013 CFO and CMO January 2014 CHRO and CSCO February 2014IBM Institute for Business ValueAddressing the opportunities and challenges facing the enterpriseTackling the opportunities and challenges facing their functional area Working with their C-suite colleagues 27. We invite you to continue the conversationConnect with usFor more information about this study and to get the full version of this report, see www.ibm.com/csuitestudy IBM Institute for Business ValueAccess interactive content and listen to CxOs in their own words by downloading the IBM IBV app for Android or iPad 28. IBM Institute for Business Value