Reinventing the rules of engagement In the first installment of IBM Global C-suite Study, we spoke in person with 4,183 top executives covering more than 20 industries to find out how CxOs are earning the loyalty of digitally enfranchised customers and citizens. In this report, we delve more deeply into the perspectives of the 884 CEOs we interviewed. Every two years since 2004, we have met with CEOs and public sector leaders around the world to understand their points of view on issues ranging from globalization to talent. For many years, CEOs consistently identified market forces as the biggest driver of change. Then in 2012, CEOs for the first time placed technology at the top of the list of issues they believed would exert the strongest influence on their organizations and strategy. This year, CEOs again ranked technology first. Believing the impact of emerging technologies on their organizations will be profound, CEOs anticipate three areas for action: • Embrace disruption • Build shared value • Dare to be open

1. 70
6
more
40%
4040
54
©2013 IBM Corporation
www.ibm.com/csuitestudy
Our latest study aims to identify
drivers of outperformance
Open up to
customer influence
Pulling together:
Collaboration will intensify with customers,
partners and employees
Pioneer digital-physical
innovation
Craft engaging
customer experiences
C-suite
Today
Customers
Boardof
Directors
Corporate
strategyfunction
Non-executive
seniorleadership
Keyexternal
businesspartners
Parent
company
interviews in
countries
4,183
roles
CEO, CFO, CHRO, CIO, CMO, CSCO
Our interviewees come from more than
20 industries in 5 major sectors
Technology rises to the top
of the CEO agenda
How the C-suite is
preparing for the future:
Customers are second only to the C-suite in the level
of influence they wield in the organization
53%
44%
26%
25%
23%
Underperformers Outperformers
78%
22%
13%13%
55%
Central & South America
637 interviews
Japan
631 interviews
North America
605 interviews
Western Europe
1,349 interviews
Asia-Pacific
475 interviews
Central & Eastern Europe
304 interviews
Middle East & Africa
182 interviews
29%
23%
60%
43%
Pioneer digital-physical
innovation
Open up to
customer influence
Looking to the future
CMOs want to put the components of
a strong digital strategy in place
Advanced analytics to
capture customer insights
Customer collaboration using
social networks
Network workforce with correct skills
for alignment to opportunities
Digitally enabled supply chain
across enterprise
Today 3-5 years
Today 3-5 years
Customer touchpoints across
all physical/digital channels
Two-thirds of organizations have a weak
digital strategy - or none at all
Integrated digital-physical
strategy
Limited digital strategy
No digital strategy
31%
33%
36%
36%
3-5 years
Customers
46%
90%
Partners/Suppliers
47%
89%
Employees
50%
91%
CEOs expect customer influence to grow most
in business strategy development
More outperfomers intensively
collaborate with customers
Today 3-5 years Today 3-5 years Today 3-5 years
Face
to face
Call
centers
Traditional
media
CxOs plan to use digital channels extensively
in the future to engage with customers
Organizations that have a
united C-suite are more likely
to be outperformers
Craft engaging
customer experiences
Most CxOs recognize that they don't understand
their customers well today
35%
76%
Today
3-5 years
52%
88%
80%
70%
57%
48%
45%
24%
Digital
more
39%
60%
CIOs are planning to focus on
digitizing the front office
To a large extent
Somewhat
To a limited extent
83%
83%
12%
5%
69%
more3-5 years
Today
Insights from IBM’s Global C-suite Study
IBM Institute for Business Value
The
Customer-activated
Enterprise
To drive performance CxOs form an
intricate web of relationships
28more
72%
92%
Outperformers
Underperformers
Communications
Distribution
Financial Services
Industrial
Public
Market factors
People
2004 2006 2008 2010 2012 2013
Technology
factors
Macro-economic
factors
69%
11%
73%
13%
78%
20%
83%
13%
87%
16%
will focus
on front office
digitzation