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Dave Aron
Graham P. Waller
Lee Weldon
Flipping to Digital Leadership: The 2015 CIO Agenda
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Based on Gartner's Annual CIO Survey
1
2,810 CIO respondents from 84 countries, representing $12.1 trillion revenue, $397 billion of IT spend
Insurance
7%Healthcare
6%Manufacturing
23%Education
7%
Retail
5%Transportation
4%
Communications
2%Media
2%
Services
9%Government
12%Banking
10%
Utilities
3%Wholesale Trade
2%
7%
Latin
America
37%
EMEA
20%
APAC
36%
North
America
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Supplemented by 11 Case Study Interviews
2
BJP
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The 2014 CIO Agenda Introduced the Third Era of Enterprise IT
IT Craftsmanship IT Industrialization Digitalization
ADOPT IDEATE
ENGAGE
CREATE
OFFER
MONETIZE
We Were
HereWe Are
Here
Digital has moved to center stage
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Increasingly Has the Power to Determine the Winners ...
4
Social and holograms proved
critical differentiators in the
BJP/Narendra Modi winning the
Indian election
The connected car empowers Volvo
to address persistent societal
problems
A Digital platform helped Quicken
Loans grow from $70 billion in
home loans in 2012, to $80 billion
in 2013
Advanced approaches to analytics
allowed the State Auditor of
Massachusetts the insight to
uncover tens of millions of dollars in
potential value
Digitalization has powered
Crutchfield to flip its cash and space
constraints to become advantages
Digitalization allows Spring Airlines
to be the first successful low-cost
airline in China
Applying thinking machines in
wealth management promises
competitive advantage
Natura is embarking on a radical
digitalization program to transform
its ecosystem
The Internet of Things and
autonomous vehicles radically
improve yields and effectiveness in
mining
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
… and the Losers
The digital world is creating new types and levels of risk for our business.
Investment in risk management and risk management practices are not keeping up with new and higher levels of risk arising in a more digital world, creating greater exposure for our business/entity.
The agility to sense and respond to unknown and unexpected types of risk is increasing in importance relative to practices for prioritizing, managing and mitigating known and expected risks.
n = 1,377
89% Agree
69% Agree
83% Agree
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
As digital moves to center stage,
??
CIOs are given the opportunity to be digital leaders
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
CEO Reporting Reflects the Rise of the Digital Narrative
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
CIO's View CEO's View
CIO 47%
BU Leads 17%
CMO 11%
Others 25%
CIO 15%
BU Leads 9%
CMO 10%
Others 66% CIO
How Will Your CEO Distribute Relative Responsibility for Leading Digital Innovation and Change Over the Next Two Years?
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Seizing the Opportunity Requires Flipping Long-Held Behaviors and Beliefs
Information and
Technology Leadership
People and Culture
LeadershipValue
Leadership
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flipping /flɪpɪŋ/Radically rethinking the fundamental beliefs and paradigms of a discipline to reflect new realities and opportunities
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip Information and Technology Leadership
11
Information and
Technology LeadershipPeople and Culture
Leadership
Value
Leadership
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Top Technology Spending Priorities —The Nexus Has Taken Up Residence
Source: Gartner 2015 CIO Survey, n = 2,793
1. BI/Analytics
2. Infrastructure and Data Center
3. Cloud
4. ERP
5. Mobile
6. Digitalization/Digital Marketing
7. Security
8. Networking, Voice and Data Communications
9. Customer Relationships
10. Industry-Specific Applications
11.Legacy Modernization
12.Enterprise Applications
41%
31%
27%
26%
24%
17%
13%
12%
11%
9%
7%
6%
50%
37%
32%
34%
36%
11%
11%
12%
8%
10%
7%
2%
Rank Technology 2015 2014
Percentage of CIOs identifying each as a top
three new spending priority
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Cloud Is First for Some, an Option for Most
1st
OPTION EXCEPTION
NEVER OTHER
10%
46%
27%
15%
2%
16%
55%
20%
9%
1%
IaaS
SaaS
2015 ACTION
Build in a
"Why Not
Cloud" Step
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Mobile Is the Rule, Not the Exception
1st 2nd
MINORITY
26%
36%
24%
14%12%
36% 37%
15%
Customer-facingEmployee-facing
2015 ACTION
Maximize
Context-
ualization
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The Analytics Game Is Flipping
Backward-Looking Reporting
Passive Analysis of Data
Structured Information
Separate Analytics
Forward-Looking Predictive Analytics
Active Experimentation Informed by Data
New Types of Information, Including Social and Multimedia
Embedded Analytics
80%
80%
65%
62%
2015 ACTION
Exploit
Unstructured
Info
2015 ACTION
Run Data-Led
Experiments
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Post-Nexus Technologies Are Closer Than We Think
16
7%2% 2% 3% 7%
13%
8% 9% 7%5%
24%
14% 12%9% 9%
28%
28%25%
20% 16%
Internet ofThings
ThinkingMachines
AugmentedHumans
3D Printing Robotics
Approach to "SMART" Technologies
Not relevant rightnow
On the radar, butno action planned
In medterm or long-term planning
2015 ACTION
Get Post-
Nexus on
Your Radar
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip Value Leadership
18
Value
Leadership
Information and
Technology LeadershipPeople and Culture
Leadership
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IT Budgets Are Mostly Flat
19
n = 2,711
0.4%
Latin
America
0.9%
EMEA
3.0%
APAC
0.8%
North
America
Global Weighted Average: 1.0%
79%Inside IT
21%
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Planning Horizons — Appropriate for a Decade of Digital Disruption?
Now +1 +2 +3 +4 +5 +6
Years
Proportion of Planning Effort Allocated to Time Horizons
•••
51%
33%
13%
3%
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Expose Three Types of Investment
21
FEAR FACT FAITH
Extending
Within the
Known
Keeping the
Business in
Business
Transforming
Beyond the
Known
ROIRisk Cost
Quality
Experiments
Platforms
2015 ACTION
Strengthen
Categories
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Move Metrics From Visible …
13%
20%
17%
18%
18%
32%
34%
54%
63%
77%
26%
38%
41%
44%
49%
41%
49%
37%
29%
20%
Minimum failure rates
IT morale
Innovation ratio
IT skills
Non-financial value
Financial value
IT-related risk levels
Internal customer…
Service levels
IT cost
Use of IT Performance Metrics
Major Metric Minor Metric
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
… To Valuable
COSTIT
REVENUES
COSTIT
REVENUES
2015 ACTION
Invert
Metrics
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Only 7% Are Strong at Reaping the Value
2%
5%
34%
45%
13%
Harvesting reviews, learning andmechanisms to capture unplanned benefit
are all mature
Sponsor recommits to benefits, we createa harvesting committee and schedule
harvesting reviews
We analyze the benefits realized, andconsider whether we have provided theplatform to harvest the benefits or not
We hold postimplementation reviews toreview on time, on budget, in scope and
informally discuss value
We do nothing beyond delivering thesolution/project output
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Rebalance Benefits Realization
C
PLAN EXECUTE HARVEST
Optimize for
Strategically
Focused Value
Deliver the
Solution With
Value in Mind
Ensure the
Expected Value
Is Delivered
90% 10% 0%40% 20% 40%
2015 ACTION
Deploy
Value
Engineers
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Address Faith-Based Investments
Avoid
Experiment
Scenario Planning
Real Option Valuation
2015 ACTION
Clarify
Platform
Approach
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip People Leadership
27
People and Culture
LeadershipInformation and
Technology Leadership
Value
Leadership
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
75% of
respondents anticipatethey will need to change theirleadership style over next three years
Digital
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Leading CIOs Spend a Day per Month More With the Top Team and Customers
29
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
A COO of IT Gives You Back One Day per Month
30
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip 1: Leadership Style
are
64% of
CIOs
Pragmatic Leaders
Are
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip From "Control First" to "Vision First"
Based on Dan Goleman's Leadership Styles
65%reducing
commandingstyle
47%increasing
visionary style
22%
Visionary
18% Democratic
17%
Coaching
16%
Pace Setting
15%
Affiliative
12% Commanding
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip 2: Digital Cultural Revolution
When Doing Something New or Uncertain, Vision Is the Only Road Map,
Inspiration Is the Only Fuel
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
At Quicken Loans, Culture Drives Digital Success
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
What is your main role?
Leadership Flip 3
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Techniques to Increase Digital Savvy of Enterprise
2015 ACTION
Consider a
Forcing
Project
30%
43%
51%
57%
66%
76%
0% 20% 40% 60% 80% 100%
Hackdays
Reverse Mentoring
Study Tours
Digital Nonexecutives
Brown-Bag Lunches
Tech Showcases
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Flip 3: From IT Management to Digital Inspiration
1. Engender shared purpose in terms of digitalization
2. Stimulate the appetite of the enterprise for higher levels of digital
3. Inspire people to higher levels of performance, and attract great people
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
It's Not Time to Admire the Problem, It Is Time to Take Action
38
UNCONSCIOUS
INCOMPETENCE
CONSCIOUS
INCOMPETENCE
CONSCIOUS
COMPETENCE
UNCONSCIOUS
COMPETENCE
NOT RELEVANT
(FOR NOW)
Digital Accelerators
Information and Technology
T1. Governance of Simplification
T2. Cloud-First Mindset
T3. Mobile-First Mindset
T4. Context-Rich Design
T5. Unstructured Information
T6. Data-Led Experimentation
T7. Post-Nexus
Value and Risk
V1. Investment Categorization
V2. Inversion of Cost Metrics
V3. Deploy Value Engineers
V4. Valuing Faith Investments
V5. New Digital Risk Mgmt.
V6. Cost of Doing Nothing
Leadership
L1. COO of IT
L2. Visionary Style
L3. Culture-Changing Projects
L4. StudyTours/TechShowcases
L5. Digital-Savvy Nonexecutives
L6. Reverse Mentoring
L7. Hack Days
T1
Example Positioning
T3
T4
T5 T6 V1
V2
V3
V4
V5
L1
L2
L3
L4
L5 L6 L7
T7
V6
T2
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Are You?
??
As Digital Moves to Center Stage,
Top Related