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Role of the cio in the digital age

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Role of the CIO in the Digital Age:
Leading through Business Partnership &
Innovation Management

Published in: Technology
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Role of the cio in the digital age

  1. 1. Role of the CIO in the Digital Age: Leading through Business Partnership & Innovation Management NGUYEN BA QUYNH Ex-Deputy CEO of IBM Indochina
  2. 2. Strategy & Change PwC 17th CEO Survey Result (Jan 2014) 2
  3. 3. Strategy & Change PwC 17th CEO Survey Result (Jan 2014) (cont.) 3
  4. 4. Strategy & Change CEO are more confident about growth in advanced economy than in emerging economies 4
  5. 5. Strategy & Change 5 q1
  6. 6. Slide 5 q1 digital economy, social media, mobile device & big data quynhnb, 11/23/2014
  7. 7. Strategy & Change Digital Business: Growth Engine For CEO 6 Source: Accenture CEO Briefing 2014
  8. 8. Strategy & Change Customer-centricity requires a cross-functional approach and cross- functional business leaders President SVP/GM of Operations Chief Transformation Officer Chief Innovation Officer Chief Customer Officer Chief Risk Officer … and business unit leaders VP of Claims Processing VP of Retail Lending VP of Commercial Loans VP of Outpatient Services VP of Power Delivery Services The new triumvirate: and technology leaders Chief Technology Officer VP of Software Development Enterprise Architect IT Architect Operations, IT and Line of Business 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 Officer Chief Financial Officer
  9. 9. Strategy Change The Deconstruct Conquer Game Changer – Industry Framework Infrastructure (Traditional/ Cloud-base)
  10. 10. Strategy Change 9 Transformation – Organizational Process Business Process Outsourcing Mergers, Acquisitions, and Divestitures Requires On Demand Operating Environment Composable Processes (IBM Component Business Modeling) Services Oriented Architecture (SOA) SOMA Flexible Business Flexible IT Composable Services (SOA) Development Infrastructure Software Development Integration Management Infrastructure Management Business Process Modeling (IBM WBM Modeler) Process Definition Standards A flexible business model requires flexible IT
  11. 11. Strategy Change The Deconstruct Conquer Game Changer
  12. 12. Strategy Change 11
  13. 13. Strategy Change 12
  14. 14. Strategy Change 13
  15. 15. Strategy Change 14
  16. 16. Strategy Change 9 Entry Points for a SOA Transformation, allow companies to identify the individually best suited starting point Business Model Processes IT Applications IT Infrastructure 15 IT Transformation Start Start Business Transformation Business Process Management People Productivity Information as Service Start Start Start Application Integration Start Application Modernization Start Infrastructure Modernization Start SOA Governance Start
  17. 17. Strategy Change An Enterprise Service Bus (ESB) was [Client Name]’s technology entry-point into SOA Service Service Apps Apps Interface Interface Interface Interface 16 Interface Interface Interface Allows for dynamic Service selection, substitution matching Increased efficiency and reuse of services Applications Service Service Enterprise Service Bus (ESB) 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 Future State Service Service Service Service
  18. 18. Strategy Change The Evolution of Cloud Computing
  19. 19. Strategy Change Innovation Framework defines the activities, processes, enablers and linkages that enable innovation within an organization 18 Business Strategy Overall objectives of the business as defined by corporate Business vision, mission etc. Strategy Innovation Agenda Innovation Management Governance Innovation Enablers Innovation Agenda Overall direction, life-stage, mix, characteristics and value proposition around innovation Innovation Management Governance Structures, processes, policies, frameworks and tools used to manage innovation Innovation Enablers Elements that enable execution of the overall innovation process
  20. 20. Strategy Change Elements of the Innovation Agenda define the overall direction for innovation and maintain alignment with the business strategy 19 Business Strategy Innovation Management Governance 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 Culture Internal Collaboration External Collaboration Tools Frameworks Infrastructure 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
  21. 21. Strategy Change Innovation Management Governance elements provide the structures, processes, frameworks and tools to manage innovation 20 Innovation Management Governance Element Objectives Business Strategy Innovation Management Governance Portfolio Management Innovation Organization Management Risk/Benefit Evaluation Project Management Knowledge Management Business Value Analysis Incentives and Rewards Communi-cations Innovation Agenda Innovation Strategy Vision Innovation Mix Innovation Model Definition Value Proposition Innovation Enablers Talent Culture Internal Collaboration External Collaboration Tools Frameworks Infrastructure 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 Portfolio Management Innovation Organization Management Risk/Benefit Evaluation Project Management Knowledge Management Business Value Analysis Incentives and Rewards Communi-cations
  22. 22. Strategy Change Innovation Enablers provide necessary support for execution of the overall innovation process 21 Innovation Enablers Element Objectives Business Strategy Innovation Management Governance Portfolio Management Innovation Organization Management Risk/Benefit Evaluation Project Management Knowledge Management Business Value Analysis Incentives and Rewards Communi-cations Innovation Agenda Innovation Strategy Vision Innovation Mix Innovation Model Definition Value Proposition Innovation Enablers Talent Culture Internal Collaboration External Collaboration Tools Frameworks Infrastructure 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 Tools Frameworks Infrastructure A company’s individual innovation culture needs to be fully understood to appropriately structure and invigorate an innovation program
  23. 23. Strategy Change By understanding the existing corporate culture and innovation archetype, the innovation enablement approach can be customized A research study of 174 organizations across 24 countries and a broad set of industries, identified 22 four unique innovation models (or archetypes) that represent how companies innovate Marketplace of ideas (16%) “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 Environment Process People Leadership “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
  24. 24. Strategy Change The Innovation Cycle represents an iterative process for assessing capabilities and ideating, developing and realizing innovations Realization of ideas through execution 23 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
  25. 25. Strategy Change Combining the Innovation Framework and the Innovation Cycle provides an integrated, comprehensive approach to expanding innovation within a corporate environment 24 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 Innovation Management Governance Evaluation of ideas identified Realization of ideas through execution Development of selected ideas Business Strategy Portfolio Management Innovation Organization Management Risk/Benefit Evaluation Project Management Knowledge Management Business Value Analysis Incentives and Rewards Communi-cations Innovation Agenda Innovation Strategy Vision Innovation Mix Innovation Model Definition Value Proposition Innovation Enablers Talent Culture Internal Collaboration External Collaboration Tools Frameworks Infrastructure By coordinating the innovation framework and the innovation cycle, measurable benefits and growth from innovation are possible
  26. 26. Strategy Change 25 Enabling Growth and Differentiation through Innovation Management Thank you!

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