How can CIOs and the C-Suite reshape service delivery and get out ahead of the rapid pace of technology change? I explored the issues and strategies of grappling -- in scale -- with digital engagement, social media, smart mobility, big data, and consumerization in my CIO Pathway keynote at the ASAE @TechConf at the Washington Convention Center on December 4th, 2013.

1. The New CIO Mandate
Business Leadership in an Era of Disruptive Tech

2. Introduction
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• ebizQ’s Next-Generation Enterprises
http://www.ebizq.net/blogs/enterprise
•
••
•
•
Chief Strategy Officer
http://dachisgroup.com
mailto:dion.hinchcliffe@dachisgroup.com
: @dhinchcliffe
Spring 2012
® 2013 Dachis Group
2

3. What will
IT look like
at the end
of this
decade?
What
should it
achieve?
® 2013 Dachis Group
3

4. Dachis Group
We Live In Era of Change
2013
2020
Lifespan of
S&P 500 Company
~15 years
~9 years
Portion of Digital
Natives in Workforce
35%
75%
Speed at which data
in world doubles
~2 years
3 months
Core Focus of IT
Systems of
record
Systems of
engagement
Percentage of IT
under CIO control
66%
10%
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5. Dachis Group
The way we engage is changing
Usage delta on common workplace communications tech
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A generation of technology is shifting...
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7. Dachis Group
A perfect storm, happening almost all at once
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From the outside, disruption has arrived
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9. Dachis Group
Technology has led to an era of unprecedented productivity
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But is this coming from CIO budgets?
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11. Dachis Group
Is IT leading innovation today?
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12. Dachis Group
Our Service Delivery Models Aren’t Keeping Up
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Yet 60% of CIOs believe they should be driving
growth and productivity.
Source: Deloitte Survey, 2011
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14. Dachis Group
The CIO Role Is Under Pressure in the C-Suite
Data Point: By 2017, most CMOs will
spend more on technology than the CIO
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15. Dachis Group
Partly Because There’s Too Much To Do Now
Key Point: This is a minimum view of digital strategy today
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And the CIO’s sub-roles are conflicting
business
continuity
business
innovation
Source: Ray Wang, Constellation
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17. Dachis Group
The Backdrop:
Digital Priorities of
Business Leaders for 2013
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18. Dachis Group
But technology change is happening faster
than ever before
Tablet
The tablet is the fastest adopted mainstream technology in history
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19. Dachis Group
Another Way of
Looking At This
World
Workers
IT
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(Not To Scale)
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20. Dachis Group
New Digital Engagement
Channels Are Now The Focus
And where
the value is...
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21. Dachis Group
The channel shift has been global
From: Social Business By Design, 2012
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1.3
billon
people
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22. Dachis Group
Yet most businesses are still immature with digital
Maturing
Competent
Webinars
online video
big data
direct mail
P2P video
social media
gamification
cloud
mobile
apps
Immature
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23. CIOs (and CMOs) Must Put All The New Pieces Together
Using All Touchpoints To Engage
Today’s Stakeholders in Scale
interact
research &
learn
Mobile
join
awareness
Social
participate
Web
Print
In-Person
learn
get help
traditional
media
social
media
co-support
virtuous cycle
get a
recommendation
The
Engaged Constituent
Journey
advocate
recommend

24. Dachis Group
Is all this change worth it?
Life Expectancy of S&P 500 Company
Human Population Growth
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Pace of Technology Change

25. Dachis Group
The future: The fast co-evolution of tech & business
• Technology makes all new
•
•
•
•
•
things possible
Society and business adopt
the new tech...
Driving new aspirations,
expectations, and
innovations...
Which creates new
technologies...
Today: Cycles in years and
months
2020: Weeks and days
business
technology
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26. Dachis Group
Key Leadership Finding
• CIOs can use
•
•
-
differentiation on the
leading edge of tech
for disruptive
innovation
Reinvent the
business for the
unique strengths and
characteristics of
new digital channels
Lead the business in
digital transformation
Remember, technology
is a force multiplier
It separates the leaders
and the laggards
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27. Dachis Group
Driving systemic changes in business and IT
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A New CIO Mandate Then
•
•
•
•
•
-
Act like an owner of the business
Lead the business from the front
Reinvent the business for next-gen digital
Do not (just) literally translate the old business, or even
old digital, to new digital channels
Use the intrinsic powers of the latest digital channels
(social, mobile, etc.) to transform business models
Create new and highly engaging digital workplace
and customer experiences
Enable emergent, decentralized tech change in the
organization
Don’t constrain IT, fundamentally empower
Everyone is now in the IT department
Corollary: You have many new resources to help you
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29. Dachis Group
How Emergent IT Might Look
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29

30. The Near Future of
Business & Tech
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31. Dachis Group
The Types of Business Change Today
open APIs
new types of devices
Technological
smart mobility
social media
app stores
comfort with self-service
Cultural
Structural
expectations of
job security
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wearable tech
predilection for sharing
tech savviness
desire for work flexibility
networks of networks
virtualization of workforce
social media communities
peer production
Process
new UXs
big data
non-hierarchical
management
user generated content
community management
social business processes
crowdsourcing
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We have to design IT for tomorrow’s worker
Source: Cengage
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33. Dachis Group
As we move to community-led workplaces...
• Story of Valve: A major company that is entirely non-
hierarchical and self-organized
• Story of Intuit: A company that used mass peer production
with its customers to create breakthrough customer care
See case study in Social Business By Design
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34. Dachis Group
Workforce engagement is the challenge
The CIO opportunity: In most companies, the majority of employees are not well engaged
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35. Dachis Group
Yet the benefits of better engagement
could not be more clear...
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36. Dachis Group
The management view of engagement
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37. Dachis Group
A physical view of the future engaged workplace
...designing the workplace experience around personas
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The case for building more engaging workplaces
Source: AON
Only in North America is engagement declining
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39. Dachis Group
So perhaps the most significant change...
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Mobility is
the future of
service
delivery
Smart mobile out-shipped PCs in 2011.
Tablets alone will outsell PCs this year.
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41. Dachis Group
So mobile is where engagement will happen
• Smart mobile devices
•
•
•
•
outshipped PCs in early 2011
Tablets are expected to on par
with PCs this year
Smart mobility strategies
(particularly the iPad) have now
become a top priority of most
Fortune 500 CIOs
Global mobile data going
geometric is going to be the
largest challenge to growth and
use
App stores are creating all new
conduits between IT suppliers
and workers
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42. Dachis Group
Mobile Internet Ramped Up Faster Than
Desktop Internet by 10x
Source: Mary Meeker, Morgan Stanley
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43. Dachis Group
But Channel Fragmentation Is Now The Norm
+
400 social networks with over 1 million users =
aggregate audience of about 1,400 million
2 billion mobile Internet users + 100 million
next-gen smart phone users across hundreds of
device types
Have Become The De Facto Primary Channels for
Customer and Worker Engagement
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44. Dachis Group
The Risks of Inaction on Mobile Engagement
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45. Dachis Group
The Smart Mobility Lesson
• Mobility isn’t just about computing that can
move around
• It’s a fundamental re-invention of computing
• Powerful new business possibilities now exist
• We must reinvent our businesses around what
these new platforms make possible
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46. Dachis Group
Why Smart Mobility is qualitatively different
•
•
•
•
•
•
•
•
•
•
Sensors (and lots of them)
Always connected
Location awareness in 3D space
App stores
Long battery life
Always on
Touch-based interfaces
Voice control
New operating systems
Integrated usage
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47. Dachis Group
App Stores: The new IT competitor
build
network
effect
ROI
cultivate
Reach
Business
commitment
Customer
Ecosystem
use
buy
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Developer
Ecosystem
App
Store
Richness
create
use
Applications
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48. Dachis Group
Opportunity - The Stories
•
•
•
•
•
•
Augmented Reality
Real-time Translation
The “Taxi” Button
Multi-point Video Conferencing
The CRM “lite” app & “walking the line”
Business intelligence
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49. Dachis Group
Wearable Work Tech
Enterprise Smart
Watches
Hitachi Business
Microscope
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Google Glass

50. Dachis Group
Machine Brain Interfaces
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51. Dachis Group
The Internet of Things: Everything will have an IP address
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52. Dachis Group
Replicator technology has arrived
• 3D scanning and printing will
•
•
•
•
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fundamentally remake supply
chains
Design becomes the most
important element of
business
Homes and workplaces will
increasingly focus on
suppliers of design, rather
than suppliers
For many industries, workers
will have to move from
building things to designing
them
A growing majority of things
will eventually be 3d printed
for work or home

53. Dachis Group
What other changes to the tech landscape?
• Rethinking the office
• Virtual spaces. They’re
•
•
•
•
back.
Unification of
communication
Mass, open
participation in
business processes
Community-centric
work platforms
The collaborative
economy
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mobile office pods

54. Dachis Group
Key data point #2
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1B
100%
projected
75%
750M
imate
h est
hig
500M
50%
e
stimat
Percent of
Enterprises
dominant form of
Internet
communication on
the planet
• Enterprises are 2-4
years behind the
rest of the world.
• Yet data shows
that revenue of
social businesses
is 20+% higher on
average.
Profitability is
better too.
- Source: McKinsey
and Frost & Sullivan
Global Users
• Social is now the
The Adoption Rates of E-mail, Social Networks, and E2.0
low e
25%
250M
2006
2007
Consumer
Social
Networks
2008
2009
E-mail
2010
2011
Enterprise 2.0
Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen
Norman Group, Social Business Council, NetStrategy/JMC
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55. Dachis Group
Hundreds of public social networks...
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...channel fragmentation
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56. Dachis Group
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57. Dachis Group
21% increase in bottom line in Q4 2011
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58. Dachis Group
Organizations that
extensively use social
media have 1.6 times
higher profit growth.
-Frost and Sullivan
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59. Dachis Group
The benefits of social engagement
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Fully social organizations get outsized benefits
Source: 2011 McKinsey Web 2.0 Survey
3,103 large firms represented in total
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61. Dachis Group
The biggest challenge: Engaging at scale
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62. Dachis Group
The Cloud Is Increasingly Subversive
•
•
•
•
•
•
•
It’s in our worker’s homes
It’s on their laptops and PC at work
It’s in our worker’s pockets
It’s the world’s largest IT department
It has all the data
It has all the apps
It has all the people
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63. Dachis Group
A new mindset has arrived: Consumerization
•
•
•
•
•
•
DIY
“It’s not so hard, I can do this myself.”
“There’s an app for that.”
“I’ll just install this myself.”
“What’s the URL for that?”
“We’ll ask for forgiveness instead of permission.”
“This app is way too hard to use. I’ll use my own.”
Simple
Fast
Easy
And Works
The Way
They Want It To
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64. Dachis Group
A tidal wave of data
• 80-90% of IT
information is not
accessible
• The amount of
information today is
just a trickle
compared to what it
will be in 2-3 years
• It will require all new
technologies and
skills that IT
departments don’t
have
• Google Search and
Analytics has taught
all of us how easy it
should be
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65. Dachis Group
Our information landscape is now measured in
millions of exabytes
1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes
• Social ecosystems are largely responsible today.
• Soon it will be sensors that are the dominant data
source.
• The good news: Information is no longer
submerged.
• However, it is increasingly becoming an onslaught.
Visible
Knowledge
Us
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66. Dachis Group
“Information overload is not the problem. It’s
filter failure.” - Clay Shirky
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67. Dachis Group
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68. Dachis Group
Big Data in the future workplace
• Obtain simple, easy to use business
•
•
•
•
•
•
intelligence tools anyone can use
Don’t forget Google is a big data app
Should be cross silo
Must integrate internal
and external data
Must provide actionable business-level insights,
not just raw stats
Some existing BI tools can do this
Then “Moneyball” your business processes
But brand new online services will typically bring
this to your organization
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68

69. Industry: Finance
The Story:
The Motivation:
Last year, WiseWindow, a syndicated data provider, provided its
real-time social media sentiment measurement technology, Mobi,
across Bloomberg's network of 300,000 desktop terminals.
WiseWindow showed social media sentiment correlated with stock
returns, saying “Only the aggregate opinions from ALL sources
are truly predictive of an industry's stock prices." Their social
data analysis was found to boost investment returns by over
30% annually.

70. Industry: Disaster Management
The Story:
The Motivation:
In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter
turned out to be the first and richest source of data, even over
the official U.S. Geologic Survey.
Many visualizations have been created to show how the
information about natural disaster (see the Wall Street Journal
example below, on the Virginia earthquake) The U.S. Geologic
Survey is now exploring how to use social media to augment its
own reports, which take 2-20 minutes to issue.

71. Industry: Telecommunications
The Story:
The Results:
Source: Financial Times
T-Mobile wanted to get out ahead of customer defections to
other carriers. They needed an accurate and scalable source of
information. They looked to social media.
The firm integrated big data across their IT systems, using near
real-time the analysis of 33M customer data records, web logs,
billing data and social media information. The result: The company
was able to cut customer defections in half in a single quarter.

72. So. How Do We Get There?
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73. Dachis Group
For IT, tech change today is nearly unsustainable
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74. Dachis Group
Rethinking tech adoption
• Ignoring technology change isn’t the
•
•
•
•
answer
Maintaining backlogs isn’t the answer
Giving up isn’t the answer
Proceeding in the same direction isn’t the
answer
Letting everyone do whatever they want
isn’t the answer
• Should we look at new models for IT?
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74

75. Dachis Group
Facing Reality:
IT is becoming pervasive and user-driven
• In 2000, only 10% of IT was unsanctioned
or outside of central control
• Today that’s 30% and climbing quickly.
• Gartner now says 90% by 2019
CoIT
Traditional
IT
2000
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2010
2013
75

76. Dachis Group
We Must Become Resilient to Constant Change
There is great economic and social value
in achieving this (in pink above)
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77. Dachis Group
How do we design for loss of control?
• “Make change an integral function. Native.”
- JP Rangaswami
frequent
adaptive
course
corrections
growth
renewal
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cycles of
change
refinement
disruption
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78. Dachis Group
The Next Generation CIO
• Empower workers and business
•
•
•
•
•
partners on the edge: New tech
fundamentally changes what’s possible
Unconstrain: Provide everyone simple,
easy to understand rules of engagement for social,
mobile, big data, and cloud.
Lay the foundation for managing and governing 10-100x
more IT and data.
Throw out the traditional IT playbook & go “emergent.”
Identify future workforce skills, then cultivate or hire for
them.
- Engagement skills of every flavor
- Both IT & the business must become design thinkers
- Continuously cultivate, measure, and optimize workforce
engagement
Become a change agent and an IT revolutionary. You
might not have your job in it’s current form long anyway.

79. Dachis Group
Also See: Social Business By Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
•
•
•
•
strategy guide and handbook
on social business.
Explores major real-world
successes and how to
emulate them..
The most complete and
business-focused statement
on what social business is
and why it’s strategically
vital.
Recently #1 in Amazon’s Hot
New Releases
Companion Web site at
http://socialbusinessbydesign.com
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79

80. Thank you
dion.hinchcliffe@dachisgroup.com | @dhinchcliffe