29
CEB CIO Leadership Council Integrating IT and Business Strategy for Digitization December 2016

28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

28-July-2016

CEB CIO Leadership Council

Integrating IT and Business Strategy for DigitizationDecember 2016

Page 2: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

28-July-2016

A Framework for Member Conversations

The mission of CEB Inc. and its affiliates is to unlock the potential of organizations and leaders by advancing the science and practice of management. When we bring leaders together, it is crucial that our discussions neither restrict competition nor improperly share inside information. All other conversations are welcomed and encouraged.

Confidentiality and Intellectual Property

These materials have been prepared by CEB Inc. for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB, and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced.

Legal Caveat

CEB Inc. is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims, or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.

Page 3: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

28-July-2016

HOW DIGITIZATION CHANGES STRATEGY-SETTING

Traditional Approach Implications of Digitization

1 Technology strategy cascaded from business strategy.

Technology Strategy = Business Strategy (and vice versa)

2 A few senior leaders had the information needed to make strategic decisions.

Strategy decisions require a very diverse range of inputs and sources of expertise.

3Senior leaders generally shared a view of what the future will look like.

Perspectives on how digitization will impact business models are very divergent.

4 Strategic decisions were made in an annual planning cycle.

Strategic decisions have to be made as opportunities or threats arise.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 4: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

28-July-2016

Requirements for a truly digital business strategy:

1. A common definition of digitization, and

2. A common framework with which to assess the impact of digitization on our business.

IT AS A CHANGE AGENT

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 5: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 5© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

A PRACTICAL DEFINITION OF DIGITIZATION

Enhancement Scope of Change Transformation

Using data and technology to enhance existing products and services

Improving channel coordination and performance

Improving productivity or optimizing enterprise activities and processes

Launching new products or services beyond the core business portfolio

Transforming channels to match customer behaviors and preferences

Making broad improvements in one or more corporate functions

■ Automated data discovery ■ Smart sensors

■ E-commerce platform ■ Mobile customer service

■ Digital workplace ■ Dynamic resource reallocation

■ User-customized products

■ Open platforms

■ Multichannel marketing ■ Social customer service

■ Predictive analytics ■ Robotic process automation

■ Serving cars, not selling cars ■ Selling “wellness,” not medicine

■ Omnichannel marketing ■ Just-in-time customer service

■ Digital manufacturing ■ Supply chain digitization

Source: CEB analysis.

Note: During this session, we will treat digitization, digitalization, and digital as synonymous.

Digitization leads to an integrated, customer-centric perspective across the enterprise.

PRODUCT

Changes to the Product or

Service Portfolio

CHANNEL

Changes to Sales, Marketing,

and Customer Service

Capabilities

OPERATIONS AND WORKFORCE

Changes to Other Business

Capabilities

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 6: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 6© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

UNDERSTAND DIGITIZATION’S IMPACTSix Shifts in the Business Context That Will Shape Digitization Efforts

Source: CEB analysis.

4. Work Adapts to Broader  Role for Machines

■ Automation and machine learning move into more complex, less structured activities.

■ Employees must demonstrate greater judgment creativity, flexibility, and collaboration.

3. Data Reliance Deepens

■ Customers rely on data, especially from peers, for purchase decisions.

■ Managers and employees use data for virtually every business decision.

■ Overabundance and uncertain veracity of data make it harder to reach decisions quickly.

1. Demand Grows More Personal

■ Customers seek services that align with their preferences and values as individuals (not segments).

■ Customers demand lower-effort, non-intrusive service.

6. Everything Accelerates (Except Large Companies)

■ New capital-light competitors scale rapidly.

■ Demand changes at a faster rate. ■ Size, complexity, and regulation slow incumbent responses.

5. Internal and  External Boundaries Blur

■ Companies collaborate through open models.

■ Functional boundaries and hierarchies give way to fast-changing matrices.

■ Employees pursue flexible roles, employment models, and career paths.

2. Products Become Information-Rich Services

■ Value creation shifts toward information-rich services.

■ Companies facilitate or broker services through an interface.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 7: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 7© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

USE THE SIX SHIFTS TO BRING STRATEGIC CLARITY

Use the six shifts framework to understand digitization opportunities for your enterprise.

Action Steps

Source: CEB analysis.

CEO/Business Leadership

1. Identify which areas of the business will be most impacted by digitization.

IT Staff

5. Communicate the importance of digitization to direct reports and teams.

6. Link workforce and IT strategic planning priorities to the six shifts to ensure relevance.

Business Areas

2. Use framework in conversations to frame and explain opportunities for digitization.

External Customers

3. Understand how digitization changes customer expectations for effortless experience.

4. Identify opportunities to meet customer information needs.

External Partners

7. Identify opportunities to work with partners and vendors to accelerate digitization.

IT Leadership

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 8: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 8© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

1. DEMAND GROWS MORE PERSONALBusiness Leaders’ Focus on Customer Experience

Context Behind the Shift ■ Customers seek services that align with their preferences and values as individuals (not segments).

■ Customers care more about the effort they put forth than “satisfaction.”

■ Customers are willing to share information in exchange for more personalized offerings.

n = 2,419 business leaders.Source: CEB Digital Enterprise 2020 Survey.

85%of business leaders say that simplifying the customer experience will be critical to success in their market by 2020.

Source: CEB analysis.

Context Behind the Shift What the Shift Means Counter-Forces

■ Customers care more about the effort they put forth than “satisfaction.”

■ Customers are willing to share information in exchange for more personalized offerings.

Organizations will need to balance the cost of personalization with the ability to scale.

Greater importance of UX, design thinking, customer journey mapping.

Privacy concerns; customers won’t want interactions to be overly intrusive.

Personalization won’t always be appropriate as a great message will still have significant value or resonance.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 9: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 9© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Adidas unveiled concept footwear with a 3D-printed midsole that can be tailored to customers’ cushioning needs.

Novartis uses wearable technology to help multiple sclerosis (MS) patients track and monitor their, daily activity. This enables patients to tailor their lifestyle to get the most from their treatment.

Intesa Sanpaolo created an “opt-in” program in which customers who provide their personal data receive more personalized offerings.

1. DEMAND GROWS MORE PERSONALExamples

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 10: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 10© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

2. PRODUCTS BECOME INFORMATION-RICH SERVICESGreater Focus on New ServicesPercentage of Business Leaders

n = 2,419 business leaders.Source: CEB Digital Enterprise 2020 Survey.

Context Behind the Shift ■ Value creation shifts toward information-rich services.

■ Customers expect more comprehensive or ongoing experiences with their purchases.

■ Customers will increasingly pay for services via subscriptions.

69%of business leaders expect they will prioritize creating services in 2020 to enhance existing products over creating new, additional products.

Context Behind the Shift What the Shift Means Counter-Forces

■ Customers expect more comprehensive or ongoing experiences with their purchases.

■ Customers will increasingly pay for services via subscriptions.

Enhancing existing products with data rich services becomes a critical differentiator.

Interfaces through which customers access products and the products of others also become critical differentiators.

Product software development becomes more critical.

Products won’t disappear, rather the way they are delivered and how they generate value will change.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 11: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 11© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

2. PRODUCTS BECOME INFORMATION-RICH SERVICESExamples

Caterpillar offers analytics-based services so that their customers can identify areas where productivity can be improved.

GE collects flight data to help its aviation customers identify fuel efficiency opportunities and reduce aircraft downtime.

Nike created a suite of apps to sit alongside its traditional products so its customers can use data to improve their health and well being.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 12: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 12© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

3. DATA RELIANCE DEEPENS

Context Behind the Shift What the Shift Means Counter-Forces

■ Companies now collect data at every point in the value chain.

■ Consumers rely more on peer-sourced data and their own research to make buying decisions.

Brand power may erode as customers rely on their own information.

Organizations need to keep up with their customers’ information expectations.

Increased demand for employees with analytical skills and the ability to apply judgment.

Large investments in big data tools will be insufficient to build enterprise capabilities without other changes.

Creating products or services out of data will require new internal skill sets.

Regulation, and the question of data ownership could hinder this shift’s adoption.

Information Drives Purchase DecisionsPercentage of Business Leaders Who Agree

n = 2,419 business leaders.Source: CEB Digital Enterprise 2020 Survey.

79%of business leaders report that customers (B2B and B2C) arrive at sales interactions having already done extensive research.

■ Customers rely on data, especially from peers, for purchase decisions.

■ Managers and employees use data for virtually every business decision.

Source: CEB analysis.

Page 13: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 13© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

3. DATA RELIANCE DEEPENSExamples

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Nationwide provides a quality verification mechanism for reports produced by employees. They use a report catalog to help educate employees on the purpose, business relevance, and quality of available reports.

Cisco mines the context of onlineconversations to understand where the interests of different customer segments overlap (in this case CIOs and CMOs) to getmarketing campaign synergies.

J Sainsbury plc incentivized farmers in their supply chain to identify additional data sets that farmers can collect and integrate with Sainbury’s existing data sets. Sainbury’s validates the data that farmers suggest to ensure they extract value.

Page 14: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 14© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

4. WORK ADAPTS TO BROADER ROLE FOR MACHINES

Context Behind the Shift What the Shift Means Counter-Forces

■ Machines are increasingly able to learn and adapt, meaning automation can move into more complex and less structured activities.

Knowledge work will become increasingly automated through the use of intelligent software systems.

Employees must demonstrate greater judgment, creativity, flexibility, and collaboration.

Demand for STEM talent will grow.

While many types of innovative automation will not cause unemployment, employees’ perception of automation as a threat to their jobs may create resistance.

Machine Learning GrowsPercentage of Business Leaders

n = 2,419 business leaders.Source: CEB Digital Enterprise 2020 Survey.

57%of business leaders say their companies already uses machine learning to automate work activities previously conducted by employees.

Automation and machine learning move into more complex, less structured activities.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Page 15: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 15© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

4. WORK ADAPTS TO BROADER ROLE FOR MACHINESExamples

O2 a Telefónica company deployed 160 robots to process as many as 500,000 transactions per month, including SIM swaps and applying pre-calculated credit to customers accounts, reducing follow-up calls by 80%.

MasterCard uses machine learning to monitor 1.3 billion transactions per day, and assess customer behavior. This has helped them quickly control cyberattacks that target automated bank tellers and limit potential damage.

NTT Communications is partnering with IPSoft to launch a cognitive service agent that will communicate in both English and Japanese and learn from its experience to improve the quality of service.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

O2 a Telefónica company deployed 160 robots to process as many as 500,000 transactions per month, including SIM swaps and applying pre-calculated credit to customers accounts, reducing follow-up calls by 80%.

MasterCard uses machine learning to monitor 1.3 billion transactions per day, and assess customer behavior. This has helped them quickly control cyberattacks that target automated bank tellers and limit potential damage.

NTT Communications is partnering with IPSoft to launch a cognitive service agent that will communicate in both English and Japanese and learn from its experience to improve the quality of service.

Page 16: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 16© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

5. INTERNAL AND EXTERNAL BOUNDARIES BLUR

Context Behind the Shift What the Shift Means Counter-Forces

■ The number of stakeholders that employees collaborate with has increased significantly.

■ As technology becomes an important component of products, there are more opportunities for cross-company partnerships.

More companies will operate as platform business models.

More employees will need cross-functional skills to support new digital ways of doing business.

Employees will demand more flexibility in how they work.

Information risk and regulation on competition will factor into the types of partnerships firms’ create.

It’s unlikely that non-hierarchical management will be mainstream by 2020.

Not Staying Within the LinesPercentage of Business Partners Who Agree

n = 2,419 business leaders.Source: CEB Digital Enterprise 2020 Survey.

74%of business leaders expect their companies to have many internal initiatives spanning multiple functions by 2020.

■ The boundaries between and within functions and companies give way to fast changing matrices.

■ Employees pursue flexible roles, employment models and career paths.

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Page 17: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 17© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

5. INTERNAL AND EXTERNAL BOUNDARIES BLURExamples

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Walgreens uses APIs to enable external developers to create applications for its photo printing and pharmacies businesses. This has enabled them to improve customer engagement through a suite of popular apps.

PwC has tapped into the gig economy by launching a marketplace where freelance workers can apply to work on projects for PwC’s clients.

LEGO Group recognizes in an era of increasing complexity and interdependence that employees’ roles must reflect their key relationships. Leaders are able to reorient their job roles based on their relationships with key “co-producers,” rather than just their tasks and accountabilities.

Page 18: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 18© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Context Behind the Shift What the Shift Means Counter-Forces

■ Customer demands are changing rapidly, and digitally-native companies respond more quickly than incumbents.

■ Incumbent companies are hampered by decision making complexity, legacy technology, and regulation.

New entrants will adopt asset-light business models for speed to market.

Customer demands for responsiveness will intensify pressure to shorter product cycles.

Cyber-security threats are moving and changing faster.

Many start-ups and digital businesses won’t capture significant market share, but will disrupt aspects of the value chain.

The Pace of Technology Change is Too SlowPercentage of Business Leaders

■ New capital-light competitors scale rapidly.

■ Demand changes at a faster rate.

n = 1,559.Source: “Embracing Digital Technology: A New Strategic Imperative,”

MIT Sloan Management Review, 7 October 2013.

63%of business leaders feel that their company responds too slowly to technology opportunities.

Source: CEB analysis.

6. EVERYTHING ACCELERATES (EXCEPT LARGE COMPANIES)

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Page 19: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 19© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

6. EVERYTHING ACCELERATES (EXCEPT LARGE COMPANIES)

Examples

Source: CEB analysis.

Project # xxxxxx

Catalog # CIO5766916SYN

Year Range 2016

Zara has invested in digital innovations in its supply chain and marketing to respond to the rapidly changing fashion needs of its consumers.

Carbon3D aims to speed up 3D printing and is now valued at $1 billion after its founding in 2013. It has the potential to disrupt the manufacturing industry by expanding the 3D printing market.

Nest Labs develops Wi-Fi enabled home thermostats and security systems that can be controlled by a smart phone. After their founding in 2010, they were acquired by Google for $3.2 billion in 2014.

Page 20: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 20© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

UNDERSTAND THE WIDER BUSINESS CONTEXTSix Shifts in the Business Context That Will Shape Digitization Efforts

Source: CEB analysis.

4. Work Adapts to Broader  Role for Machines

■ Automation and machine learning move into more complex, less structured activities.

■ Employees must demonstrate greater judgment creativity, flexibility, and collaboration.

3. Data Reliance Deepens

■ Customers rely on data, especially from peers, for purchase decisions.

■ Managers and employees use data for virtually every business decision.

■ Overabundance and uncertain veracity of data make it harder to reach decisions quickly.

1. Demand Grows More Personal

■ Customers seek services that align with their preferences and values as individuals (not segments).

■ Customers demand lower-effort, non-intrusive service.

6. Everything Accelerates (Except Large Companies)

■ New capital-light competitors scale rapidly.

■ Demand changes at a faster rate. ■ Size, complexity, and regulation slow incumbent responses.

5. Internal and  External Boundaries Blur

■ Companies collaborate through open models.

■ Functional boundaries and hierarchies give way to fast-changing matrices.

■ Employees pursue flexible roles, employment models, and career paths.

2. Products Become Information-Rich Services

■ Value creation shifts toward information-rich services.

■ Companies facilitate or broker services through an interface.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 21: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 21© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

LESSONS FROM PRACTITIONERS

Create cross-functional teams to look for “blind spots” where opportunities do not fit neatly into one functional area or business unit.3

Collaborate with “digital disruptors” (e.g., startups, platform providers) to accelerate digitization.2

Develop a coherent, strategic vision to maximize digital opportunities.1

Align strategic decision making around changing market and technology developments, rather than the calendar.4

Apply a customer experience lens to find where digitization will have outsized impact5

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 22: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 22© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

CEB CIO LEADERSHIP COUNCIL WEBINAR SERIESWebinars for January–February 2017

January

IT Operating Model for Digital Webinar Series Overview of the New IT Operating Model for Digital12 January 2017 12:00 p.m. EST

IT Operating Model for Digital Webinar Series: Products Over Projects26 January 2017 12:00 p.m. EST

February

IT Operating Model for Digital Webinar Series: Adaptive Business Engagement23 February 2017 12:00 p.m. EST

Tactics to Improve Gender Balance in IT8 February 2017 11:00am EST

Registration information and audio for past webinars is available at cebglobal.com/member/cio/events.html in the Events section.

Project # xxxxxx

Catalog # CIO167425PR

Year Range 2016

Page 23: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 23© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Appendix

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 24: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 24© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Project # xxxxxx

Catalog # CIO166788PR

Year Range 2016

ADDITIONAL SUPPORT FROM CEB IT PRACTICE

CEB Applications CEB CIO CEB Enterprise Architecture

Understand how organizations are responding to digitization by reviewing Digital Enterprise 2020Initiative.

Understand how organizations are responding to digitization by reviewing Digital Enterprise 2020Initiative.

Understand how organizations are responding to digitization by reviewing Digital Enterprise 2020Initiative.

Create an applications strategy linked to business outcomes using CEB Ignition™ Guide toStrategic Planning for Applications.

Create an IT strategy linked to business outcomes using CEB Ignition™ Guide to Strategic Planning for IT.

Review examples from progressive Enterprise Architecture (EA) groups to improve strategic planning effectiveness using EA in a Box:Develop IT Strategy.

Inform your portfolio planning with analysis from 60 Applications functions by reviewing Applications Technology Roadmaps.

Receive direct, personalized advice CEB on opportunities toimprove your strategy with our IT Strategic Plan Review Service.

Create an IT strategy linked to business outcomes using CEBIgnition™ Guide to Strategic Planning for IT.

Page 25: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 25© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Project # xxxxxx

Catalog # CIO166788PR

Year Range 2016

ADDITIONAL SUPPORT FROM CEB IT PRACTICE

CEB Information Risk CEB Infrastructure CEB PMO

Understand how organizations areresponding to digitization by reviewing Digital Enterprise 2020Initiative.

Understand how organizations areresponding to digitization by reviewing Digital Enterprise 2020Initiative.

Understand how organizations areresponding to digitization by reviewing Digital Enterprise 2020Initiative.

Expand Information Security’s work outside of the core protection mandate by reviewing Enhance Credibility and Influence by Signaling Commitment to Business Outcomes.

Understand which technologiesorganizations are evaluating or deploying until the end of 2017 using Emerging Technology Roadmap 2016-2017.

Create a PMO strategy linked to business outcomes using CEBIgnition™ Guide to Strategic Planning for the PMO.

Create an Information Security strategy linked to business outcomes using CEB Ignition™ Guide to Strategic Planning forInformation Security.

Create an Infrastructure strategy linked to business outcomes usingCEB Ignition™ Guide to Strategic Planning for Infrastructure.

Uncover and release potential bottlenecks that might impact portfolio deliver using Portfolio Interdependency Tool (CareFirst).

Page 26: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 26© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

THREE VALUE STREAMS FOR DIGITAL OPPORTUNITIES

PRODUCT

Changes to the Product or

Service Portfolio

CHANNEL

Changes to Sales, Marketing,

and Customer Service

Capabilities

OPERATIONS AND WORKFORCE

Changes to Other Business

Capabilities

Enhancement Scope of Change Transformation

Using data and technology to enhance existing products and services

Improving channel coordination and performance

Improving productivity or optimizing enterprise activities and processes

Launching new products or services beyond the core business portfolio

Transforming channels to match customer behaviors and preferences

Making broad improvements in one or more corporate functions

Source: CEB analysis.

Note: During this session, we will treat digitization, digitalization, and digital as synonymous.

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

Page 27: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 27© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

Project # xxxxxx

Catalog # CIO165536PR_20

Year Range 2016

PRODUCT

Enhancement Scope of Change Transformation

Using data and technology to enhance existing products and services

Launching new products or services beyond the core business portfolio

■ Automated data discovery

■ Smart sensors

■ Mobile apps

■ Smart meters

■ Consumer-specified pack sizes

■ User-customized products

■ Open platforms

■ 3D printing personalized devices

■ Preventative maintenance through analytics

■ Personalized premiums/ charging

■ Serving cars, not selling cars

■ Selling “wellness,” not medicine

■ Preventative insurance

■ Delivering products through subscription services

■ Intelligent packaging

■ “Smart” homes

Source: CEB analysis.

Page 28: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 28© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

CHANNEL

Enhancement Scope of Change Transformation

Improving channel coordination and performance

Transforming channels to match customer behaviors and preferences

■ E-commerce platform

■ Mobile customer service

■ Real-time consumption information

■ Online-only brands

■ Mobile policy access

■ Multichannel marketing

■ Social customer service

■ Home monitoring apps

■ Digital signatures

■ Personalized digital marketing and promotions

■ Omnichannel marketing

■ Just-in-time customer service

■ Just-in-time fulfillment

■ In-home digital assistant

■ Omnichannel patient portals

■ AI agents

Source: CEB analysis.

Page 29: 28uly216 Integrating IT and Business Strategy for Digitization€¦ · Integrating IT and Business Strategy for Digitization December 2016. 28-July-2016 A Framework for Member Conversations

 29© 2016 CEB. All rights reserved. CIO167605PR

28-July-2016

OPERATIONS AND WORKFORCE

Enhancement Scope of Change Transformation

Improving productivity or optimizing enterprise activities and processes

Making broad improvements in one or more corporate functions

■ Digital workplace

■ Paperless production

■ Dynamic resource reallocation

■ M2M communication

■ Public cloud for operations

■ Predictive analytics

■ Robotic process automation

■ Automated billing

■ Real-time data capture

■ Remote control asset management

■ Digital manufacturing

■ Supply chain digitization

■ Real-time publication of clinical trial data

■ Intelligent facilities

■ Predictive disruption monitoring

Source: CEB analysis.