Digitalist Flash Briefing Your Duty Of Care And The Increase In Traveler Concerns – Business Intelligence Info

Fornerds,theweeksrightbeforefinalsareaCinderellamoment。

Suddenlytheyrestars。

Pocketprotectorsarefashionable;peoplefindtheirjokesawholelotfunnier;DungeonsDragonssoundscool。

ManyCIOsareenjoyingthiskindofmomentnow,ascompanieseverywherefacethebusinessequivalentofafinalexamforavitalclasstheyhavemanagedtomostlyavoidsofar:digitaltransformation。

Butasalways,thereisalimittonerdymagic。

NomatterhowhelpfulCIOstrytobe,theirclassmatesstillwontpassiftheydontlearnthematerial。

WithITincreasinglycentraltoeverybusinessfromthecustomerexperiencetotheofferingtothebusinessmodelitselfweallneedtostartthinkinglikeCIOs。

Passthedigitaltransformationexam,andyouprobablyhaveabrightfutureahead。

ArecentSAP-OxfordEconomicsstudyof3,100organizationsinavarietyofindustriesacross17countriesfoundthatthecompaniesthathavetakentheleadindigitaltransformationearnhigherprofitsandrevenuesandhavemorecompetitivedifferentiationthantheirpeers。

Theyalsoexpect23%morerevenuegrowthfromtheirdigitalinitiativesoverthenexttwoyearsanestimate2。

5to4timeslargerthantheaveragecompanys。

Butthemarketisgradingonasteepcurve:thissameSAP-Oxfordstudyfoundthatonly3%havecompletedsomedegreeofdigitaltransformationacrosstheirorganization。

Othersurveysalsosuggestthatmostcompanieswontbegraduatinganytimesoon:inonerecentsurveyof450headsofdigitaltransformationforenterprisesintheUnitedStates,UnitedKingdom,France,andGermanybytechnologycompanyCouchbase,90%agreedthatmostdigitalprojectsfailtomeetexpectationsanddeliveronlyincrementalimprovements。

Worse:overhalf(54%)believethatorganizationsthatdontsucceedwiththeirtransformationprojectwillfailorbeabsorbedbyasavviercompetitorwithinfouryears。

Companiesthataremakingthegradeunderstandthatunlikeearliertechnicaladvances,digitaltransformationdoesntjustsupportthebusiness,itsthefutureofthebusiness。

Thatswhy60%ofdigitalleadingcompanieshaveentrustedtheleadershipoftheirtransformationtotheirCIO,andthatswhyexpertssaybusinesspeoplemustdomorethanhaveavagueunderstandingofthetechnology。

TheymustalsomasterawayofthinkingandlookingatbusinesschallengesthatisunfamiliartomostpeopleoutsidetheITdepartment。

Inotherwords,ifyoudontthinklikeaCIOyet,nowisaverygoodtimetolearn。

However,giventhatyouprobablydonthaveaspare15yearstolearnwhatyourCIOknows,weaskedtheexpertswhatmakesCIOthinkingdistinctive。

Herearethetopeightmindhacks。

1。

ThinkinSystems

Alotofbusinesspeopleareusedtoseeingtheirorganizationasaseriesoflooselyjoinedsilos。

Butintheworldofdigitalbusiness,everythingispartofalargersystem。

CIOshaveknownforalongtimethatsmartprocesseswin。

Whethertheywereinstallingenterpriseresourceplanningsystemsorworkingwiththebusinesstoimaginethecustomersjourney,theyalwayshadtothinkinholisticwaysthatcrossedtraditionaldepartmental,functional,andoperationalboundaries。

Unlikeotherbusinessleaders,CIOsspendtheircareerslookingacrosssystems。

Whydidoursupplychaingodown?

Howcanwesupportthisnewbusinessinitiativebeyondasingledepartmentorfunction?

Nowsupportedbyend-to-endprocessmethodologiessuchasdesignthinking,goodCIOshavedevelopedawayoflookingatthecompanythatcanleadtoradicalsimplificationsthatcanreducecostandimproveperformanceatthesametime。

Theyarealsousedtothinkingbeyondtemporalboundaries。

Thisideathatthepoweroftechnologydoubleseverytwoyearsmeansthatasyoureplanningaheadyoucantthinkintermsofalinearprocess,youhavetothinkintermsofhugejumps,saysJayFerro,CIOofTransPerfect,aNewYorkbasedglobaltranslationfirm。

NowondertheSAP-Oxfordtransformationstudyfoundthatoneofthevaluestransformationalleaderssharedwasatendencytolookbeyondsilosandviewthedigitaltransformationasacompany-wideinitiative。

Thiswillcomeinhandybecauseindigitaltransformation,notonlydobusinessprocessesevolvebutthecompanysentirevaluepropositionchanges,saysJeanneRoss,principalresearchscientistattheCenterforInformationSystemsResearchattheMassachusettsInstituteofTechnology(MIT)。

Iteitheralreadyhasoritsgoingto,becausedigitaltechnologiesmakethingspossiblethatwerentpossiblebefore,sheexplains。

2。

WorkinDiverseTeams

Whenitcomestolargeprojects,CIOshavealwaysneededinputfromadiversecollectionofbusinesspeopletobesuccessful。

Thebesthavedevelopedwaystoconvinceandcajolereluctantparticipantstocometothetable。

Theyseekouttechnologyenthusiastsinthebusinessandthosewhoarerespectedbytheirpeerstohelpbuildpassionandcommitmentamongthehalfhearted。

Digitaltransformationampsuptheurgencyforbuildingdiverseteamsevenfurther。

Asmall,focusedgroupsimplywonthavethesamebreadthofperspectiveasateamthatincludesasalespersonandaservicepersonandadevelopmentperson,aswellasanITperson,saysRoss。

AtLenovo,theglobaltechnologygiant,manyofthesecross-functionalteamsbecomesousedtoworkingtogetherthatitshardtotellwhereeachmemberoriginallybelonged:YoucanttellwhoisbusinessorIT;youcanttellwhoisproduct,IT,ordesign,saysthecompanysCIO,ArthurHu。

Oneinterestingcorollaryofthistrendtowardbroaderteamworkisthattalentisapriorityamongdigitalleaders:theyspendmoreontrainingtheiremployeesandpartnersthanordinarycompanies,aswellasonhiringthepeopletheyneed,accordingtotheSAP-OxfordEconomicssurvey。

Theyrealsoalreadybeingrewardedfortheirfaithintheirteams:71%ofleaderssaythattheirsuccessfuldigitaltransformationhasmadeiteasierforthemtoattractandretaintalent,and64%saythattheiremployeesarenowmoreengagedthantheywerebeforethetransformation。

3。

BecomeaConsultant

GoodCIOshavelongneededtobeinternalconsultantstothebusiness。

Eversincetechnologymovedoutoftheglasshouseandontoemployeesdesks,CIOshavenotonlyneededadeepunderstandingofthegoalsofagivenprojectbutalsotomakesurethattheprojectdidntstrayfromthosegoals,evenafterthebusinesspeoplewhohadorderedtheprojectwentbacktotheirdayjobs。

BusinesspeopledidntreallyneedtogetintothedetailsofwhatITwasreallydoing,recallsFerro。

Theyjusthadasetofdemandsandsaid,Hey,IT,godothat。

Butthatwasthen。

Nowsoftwarehasbecomesointegraltothebusinessthatnobodycanaffordtowalkaway。

BusinesspeoplemustjointheranksoftheITconsultants。

Ifyourebuildingahouse,youdontjustdisappearforsixmonthsandcomebackandgo,Oh,itlooksprettygood,saysFerro。

Youreonthatworksiteconstantlyandallofasuddenyourelookingatsomething,going,Well,thatlookedreallygoodontheblueprint,notsureitmakessenseinreality。

Letsmovethatoversixfeet。

Or,IdontknowifIlikethatanymore。

ItsreallynotmuchdifferentinapplicationdevelopmentorforITortechnicalprojects,whereonpaperitlookedreallygoodandthreeweeksin,inthatsecondsprint,youregoing,Oh,nowthatIlookatit,thatsreallystupid。

4。

LearnHorizontalLeadership

CIOshavealwaysneededtheabilitytoeducateandinfluenceotherleadersthattheydontdirectlycontrol。

FormajorITprojectstobesuccessful,theyneedotherleaderstocontributebudget,time,andresourcesfrommultipleareasofthebusiness。

Itsakindofhorizontalleadershipthatwillbecomecriticalforbusinesspeopletoacquireindigitaltransformation。

Theleadershiprolebecomesonemuchmoreofcoachingothersacrosstheorganizationencouragingpeopletobecreative,makingsureeverybodyknowshowtousedatawell,Rosssays。

Inthisteam-basedenvironment,havingalltheanswersbecomeslessimportant。

Itusedtobethatthebestbusinessexecutivesandleadershadthebestanswers。

Todaythatisnolongerthecase,observesGaryCokins,atechnologyconsultantwhofocusesonanalytics-basedperformancemanagement。

Increasingly,itstheexecutivesandleaderswhoaskthebestquestions。

Thereistoomuchvolatilityanduncertaintyforthemtorelyontheirintuitionorpastexperiences。

Manyexpertsexpectthistrendtocontinueastheconfluenceofautomationanddatakeepschippingawayattheorganizationalpyramid。

Hierarchical,command-and-controlleadershipwillbecomeobsolete,saysEdwardHess,professorofbusinessadministrationandBattenexecutive-in-residenceattheDardenSchoolofBusinessattheUniversityofVirginia。

Flatter,distributiveleadershipviateamswillbecomethedominantstructure。

5。

UnderstandProcessDesign

Whenbusinessprocessesweresimpler,ITcouldanalyzetheprocessandimproveitwithoutinputfromthebusiness。

Buttodaymanyprocessesaretriggeredontheflybythecustomer,makingaseamlesscustomerexperiencemoredifficulttobuildwithoutthebenefitofalarger,multifunctionalteam。

InahighlydigitalizedorganizationlikeAmazon,whichreleasesthousandsofnewsoftwareprogramseachyear,ITcannolongerdoitall。

Whilebusinesspeoplearentexpectedtostartcoding,theirinvolvementinprocessdesigniscrucial。

OneofthetechniquesthatmanyorganizationshaveadoptedtohelpITandbusinesspeoplevisualizebusinessprocessestogetherisdesignthinking(formoreondesignthinkingtechniques,seeACultofCreation)。

Customersarenttheonlyoneswhobenefitfrombetterprocesses。

Amongthe100companiestheSAP-OxfordEconomicsresearchershaveidentifiedasdigitalleaders,two-thirdssaythattheyaremakingtheiremployeesliveseasierbyeliminatingprocessroadblocksthatinterferewiththeirabilitytodotheirjobs。

Ninetypercentofleaderssurveyedexpecttoseevaluefromtheseprojectsinthenexttwoyearsalone。

6。

LearntoKeepLearning

TheabilitytolearnandkeeplearninghasbeenapartofITfromthestart。

Sincethefirstmainframesinthe1950s,technologistshaveunderstoodthattheyneedtokeepreinventingthemselvesandtheirskillstoadapttothechangesaroundthem。

Nowthatsstartingtobecomepartofotherjobdescriptionstoo。

Manycompaniesareinvestinginteachingtheiremployeesnewdigitalskills。

OneSouthAmericanautoproductscompany,forexample,hascreatedacustom-educationinstitutethattrained20,000employeesandpartner-employeesin2016。

Inadditiontotrainingcurrentstaff,manyleadingdigitalcompaniesarealsohiringnewemployeesandcreatingnewroles,suchasachiefroboticsofficer,tosupporttheirdigitaltransformationefforts。

NicolasvanZeebroeck,professorofinformationsystemsanddigitalbusinessinnovationattheSolvayBrusselsSchoolofEconomicsandManagementattheFreeUniversityofBrussels,saysthatheexpectstheabilitytolearnquicklywillremaincrucial。

IfIhadtothinkofonecriticalskill,heexplains,Iwouldhavetosayitstheabilitytolearnandkeeplearningtheabilitytochallengethestatusquoandquestionwhatyoutakeforgranted。

7。

FailSmarter

Traditionally,CIOstendedtobegoodatthinkingthroughteststhatwouldallowthecompanytoexperimentwithnewtechnologywithoutriskingtheentirenetwork。

Thisisanotherunfamiliarskillthatsmartmanagersaretryingtopickup。

Theresalotoftrialanderrorinthebestcompaniesrightnow,notesMITsRoss。

Buttheresacatch,sheadds。

Mostcompaniesarentdesignedfortrialanderrortheyretryingtoavoidanerror,shesays。

Tolearnhowtodoitbetter,takeyourleadfromIT,wheremanypeoplehavealreadylearnedtoworkinsmall,innovativeteamsthatuseagiledevelopmentprinciples,advisesRoss。

Forexample,businessmanagersmustlearnhowtothinkintermsofaminimumviableproduct:buildasimpleversionofwhatyouhaveinmind,testit,andifitworksstartbuilding。

Youdontbuildthewholethingatonceanymore。

…Itsreallyimportanttobuildthingsincrementally,Rosssays。

Flexibilityandtheabilitytocapitalizeonaccidentaldiscoveriesduringexperimentationaremoreimportantthanhavingaconcreteprojectplan,saysRoss。

AtSpotify,themusicservice,andCarMax,theused-carretailer,changeisdrivennotfromthecenterbutfromsmallteamsthathavedevelopedsomethingnew。

Thethingyouhavetogetcomfortablewithisnothavingtheformalizedplanthatwewouldhavetraditionallyreliedon,becauseassoonasyouinsistonthat,youlimityourabilitytokeeplearning,Rosswarns。

8。

UnderstandtheTrueCostandSpeedofData

GutinstinctshaveneverhadmuchtodowithbeingaCIO;nowtheyshouldhavelesstodowithbeinganordinarymanageraswell,asdatabecomesmoreimportant。

Aspartofthatcalculation,businesspeoplemusthavetheabilitytoanalyzethevalueofthedatathattheyseek。

Youllneedtoapplyapinchofknowledgesalttoyourdata,advisesSolvaysvanZeebroeck。

Whatreallymattersistheabilitynotjusttotapintodatabuttoseewhatisbehindthedata。

Isitafairrepresentation?

Isitimpartial?

Increasingly,businesspeoplewillneedtodotheiranalysisinrealtime,justasCIOshavealwayshadtomanagelivesystemsandprocesses。

Movingtowardreal-timereportsandawayfrompaper-baseddecisionsincreasesaccuracyandeffectivenessandleaveslesstimeforlongmeetingsandPowerPointpresentations(letusallrejoice)。

NotEveryCIOIsReady

Ofcourse,notallCIOsarereadyforthesechanges。

JustashighschoolhasalotoffalsepositivesgeniusnerdswhoturnouttobemerelynearsightedsotherearemanyCIOswhoarentgoodrolemodelsfortransformation。

SuccessasaCIOthesedaysrequiresmorethandeliveringnear-perfectuptime,saysLenovosHu。

Youneedtobeabletounderstandthebusinessaswell。

SomeCIOssimplydonthaveallthebusinessskillsthatareneededtosucceedinthetransformation。

Otherslacktheinternalclout:a2016KPMGstudyfoundthatonly34%ofCIOsreportdirectlytotheCEO。

Thislackofastrategicperspectiveisholdingbackdigitaltransformationatmanyorganizations。

Theyapproachdigitaltransformationasacool,one-offproject:weregoingtoputthisnewmobileappinplaceandweredone。

Butthatsnotasystematicapproach;itsanislandofinnovationthatdoesntjoinupwiththeotherislandsofinnovation。

Inthelongerterm,thiskindofdevelopmentcreatesmoreproblemsthanitfixes。

Suchorganizationsarenotbuildinginthecapacityforchange;theyretryingtogetawaywithjustdoingitonceratherthanthinkingabouthowtheyregoingtousedigitalizationasameanstoconstantlyexperimentandbecomeabettercompanyoverthelongterm。

Asaresult,insomecompanies,themostinterestingtechdevelopmentsarehappeningdespiteIT,notbecauseofit。

Theresanalarmingdigitaldividewithinmanycompanies。

Marketersaredevelopingnimblesoftwaretogivecustomersanengaging,personalizedexperience,whileITdepartmentsremainfocusedonthelegacyinfrastructure。

Thefrontandbackendsarentworkingtogether,resultinginappealingwebsitesandappsthatdontquitedeliver,writesGeorgeColony,founder,chairman,andCEOofForresterResearch,intheMITSloanManagementReview。

Thankstocloudcomputingandeasierdevelopmenttools,manydepartmentsaredevelopingontheirown,withoutITssupport。

Thesedays,anybodywithacreditcardcandoit。

Traditionally,ITdepartmentslookedaskanceatthesekindsofdo-it-yourselfshadowITprograms,butthatschanging。

Ferro,forone,saysthatitsbettertolookatthoseteamsnotasroguegroupsbutaspeoplewhoaretryingtohelp。

ItslessaboutHey,somethingsescaped,andmoreaboutNo,wejustactuallygrewourcapacityandgrewourabilitytoinnovate,heexplains。

IdontlikethetermshadowIT,agreesLenovosHu。

IthinkitsanartifactofaverytraditionalCIOteam。

IfyouthinkofitasshadowIT,youreoutofstepwithreality,hesays。

TherealitytodayisthatacompanyneedsbothastrongITdepartmentandstrongdigitalcapacitiesoutsideitsITdepartment。

Iftherelationshipisgood,theCIOandITbecomevaluablealliesinhelpingbusinesspeopleadddigitalcapabilitieswithoutdisruptingorduplicatingexistingITinfrastructure。

Ifacompanyalreadyhasstrongdigitalcapacities,itshouldbeabletomoveforwardquickly,accordingtoRoss。

Butmanycompaniesarestillplayingcatch-upandarentevenreadytobegintransforming,astheSAP-OxfordEconomicssurveyshows。

ForenterpriseswherebusinessandITareunabletogettheircollectiveacttogether,Rosspredictsthatthenextfewyearswillberough。

Ithinkthesecompaniesoughttopanic,shesays。

D!

AbouttheAuthors

ThomasSaueressigisChiefInformationOfficeratSAP。

TimoElliottisanInnovationEvangelistatSAP。

SamYenisChiefDesignOfficeratSAPandManagingDirectorofSAPLabs。

BennettVoylesisaBerlin-basedbusinesswriter。

Letsblockads!

(Why?

)

DigitalistMagazine