The Evolving Role of the CIO Where it s been; where it s going!

Transcription

1 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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3 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 Sales people Service Technicians

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5 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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7 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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9 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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11 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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13 The CIO Evolution The 2010 s Still the CIO Reporting to the CEO Digital Marketing Consumerization of IT Expertise in Innovation

14 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?

15 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 15 th century Venice (albeit with systems we have provided them)

16 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

17 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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19 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.

20 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!

21 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!

22 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

23 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!

24 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

25 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

26 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.

27 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!

28 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

29 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.

30 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

31 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

32 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

33 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

34 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!