EY-CIOs-Born-to-be-digital

EY-CIOs-Born-to-be-digital EY-CIOs-Born-to-be-digital

10.07.2015 Views

“I spend little time on back office and a loton what you could categorize as digital.”Herman de Prins, CIO, UCBSwanepoel has sometimes engaged external managementconsultants to help bring a fresh perspective on what the core ofthe narrative ought to be: “If you are working in IT all day, you’vegot to concentrate on lifting the conversation to a level at which theboard can be comfortable. But sometimes the story is just toocomplicated, and you need some external help to tell it in acompelling fashion. That was definitely an inflection point for me.”An important factor that can further put weight on CIOs’communication skills is their relative position within the business.This is extremely vital for those CIOs who don’t hold board-levelpositions. With a seat at the top table, you have greater authority topush through changes directly. But others must rely more on theirpowers of persuasion, which makes a closer link to the CEO or otherkey executive stakeholders more vital. At the French-Japanese caralliance Renault-Nissan, Managing Director IT/IS Celso Guiotokomakes use of his strong relationship with the CEO, and of moreinformal approaches, to garner the necessary influence. “The factthat we have the corporate executive cafeteria is very useful forme, because I can sit with some of the corporate officers and talkabout any issues and opportunities, or about how they can getmore value from IT,” he says. “In addition, I have a very goodcommunication line to the CEO: we meet on a monthly basis.”At the same time, digital-ready CIOs are using media channels todrive influence. You can talk up the potential of IT and to help fostermomentum internally. “That is one of the reasons why we go publicon certain things, so that the media can come back and ask wherewe’ve gotten to on this. It puts a bit more pressure on us to getthings done,” says Guiotoko. The use of social media can also helpto build a greater presence both internally and externally, and tomake the CIO more approachable. For example, UCB’s Herman dePrins, who prefers to keep work-related topics out of social media,uses his passion for cycling as a source for non-work-relatedupdates and links them to technology, which in turn has helped himto forge a range of positive connections across the business.5Digital-readyCIOs move beyondoperations and infrastructure.Something common among many of the CIOs interviewed for thisreport is a desire to prevent their roles from being taken over by theoperations and infrastructure elements. As Sanofi CIO BrunoMénard points out, it is a question of CIOs deciding where theyreally want to invest their time. “If you want to run the operationsyourself, that is a huge management demand, so it will affect yourabilities on strategy and innovation. You cannot do both,” heexplains.This isn’t to suggest that leading CIOs think that operations andinfrastructure are not important, but rather that they see these asfoundational elements that should be run as efficiently as possible,to free up their time for the more strategic aspects of their role.“The first thing for digital CIOs is to move spending away from ‘keepthe lights on’ kind of operational stuff that doesn’t make theircompanies any money or serve their customers any better,” arguesInformationWeek’s Rob Preston. “Those who focus solely on this arejust chief infrastructure officers, and that’s not a good long termcareer prospect.”A lot of CIOs agree, noting that many of the traditional IT leadersthey meet at conferences appear to be no more than infrastructuremanagers. “They typically don’t come close to having board-leveldiscussions, and usually lie several layers away from the CEO,”notes Zooplus CIO Richard Alan Herz. Nedbank’s Fred Swanepoeladds: “In our business, sorting out the operational and efficiencyside is just the foundation for reliably delivering excellent clientservice. We build on that foundation by focusing on innovation todrive sales, deliver product breakthroughs, and fine-tune pricingmodels to influence changes in client behavior.”26 | Born to be digital

“I spend little time on back office and a lot on what you couldcategorize as digital,” explains UCB’s Herman de Prins. “I made achoice not to micromanage projects and get caught up in steeringcommittees and so forth. We do 150 projects per year but I trustmy team to manage them well. That frees up my time to dodifferent things, such as being more connected externally andfocusing on a few areas that are transformational,” he says. Evenso, he still finds scope for innovation. For example, UCB’s IT teamdeployed a new flash memory-based system that boosted theoverall performance of the company’s statistical programming by afactor of 20. “Is that a back-office thing? I don’t think so, becauseefficiency is good for everybody and most importantly for patients.”SAP Americas CIO Michael Golz agrees. He sees that embracingdigital has meant a much clearer focus on more radical innovationelsewhere in the business, rather than on trying to squeeze limitedgains from the company’s core IT systems. “You can optimizeendlessly, and it’s going to create some incremental improvements,but the real spending is being redirected into platforms, aroundanalytics, big data, mobility and the cloud or whichever area hasthe highest benefit for your company,” he says.This is borne out in the survey results. While for IT-intensiveindustry CIOs, the most notable increase in their focus has been onissues relating to ensuring basic IT needs are up and running,digital-ready CIOs have been putting more attention on otherissues, such as enhancing business processes and preparing theorganization for change. Even so, they do not forget the operationalelements — understanding that smooth operational running is whatallows them to have other focuses.Nevertheless, digital-ready CIOs do seek out bigger opportunities inIT infrastructure. But with one such opportunity, the cloud, theattraction for many IT leaders is that it has the potential to reducethe time and money spent on systems and infrastructure.Chart 9Priority of tasks compared with five years agoPreparing anddeveloping theorganizationfor change100%DEVELOPMENTShaping the futureof the businesswith the righttechnology100%81%54%55%54%Sustaining and extending theorganization's strategiesand objectives48%52%68%ENABLEMENTDigital-ready CIOControlling theimpact of IT spendon the organization48%61%78%Providing insightto support businessdecisionsEXECUTIONEnsuring theIT and securityneeds are upand runningIT-intensive industry CIO(Percentage of respondents who have chosen 8, 9 or 10 on a scale from 1= much less a priority to 10 =much more a priority)Born to be digital |27

“I spend little time on back office and a lo<strong>to</strong>n what you could categorize as <strong>digital</strong>.”Herman de Prins, CIO, UCBSwanepoel has sometimes engaged external managementconsultants <strong>to</strong> help bring a fresh perspective on what the core ofthe narrative ought <strong>to</strong> <strong>be</strong>: “If you are working in IT all day, you’vegot <strong>to</strong> concentrate on lifting the conversation <strong>to</strong> a level at which theboard can <strong>be</strong> comfortable. But sometimes the s<strong>to</strong>ry is just <strong>to</strong>ocomplicated, and you need some external help <strong>to</strong> tell it in acompelling fashion. That was definitely an inflection point for me.”An important fac<strong>to</strong>r that can further put weight on <strong>CIOs</strong>’communication skills is their relative position within the business.This is extremely vital for those <strong>CIOs</strong> who don’t hold board-levelpositions. With a seat at the <strong>to</strong>p table, you have greater authority <strong>to</strong>push through changes directly. But others must rely more on theirpowers of persuasion, which makes a closer link <strong>to</strong> the CEO or otherkey executive stakeholders more vital. At the French-Japanese caralliance Renault-Nissan, Managing Direc<strong>to</strong>r IT/IS Celso Guio<strong>to</strong>komakes use of his strong relationship with the CEO, and of moreinformal approaches, <strong>to</strong> garner the necessary influence. “The factthat we have the corporate executive cafeteria is very useful forme, <strong>be</strong>cause I can sit with some of the corporate officers and talkabout any issues and opportunities, or about how they can getmore value from IT,” he says. “In addition, I have a very goodcommunication line <strong>to</strong> the CEO: we meet on a monthly basis.”At the same time, <strong>digital</strong>-ready <strong>CIOs</strong> are using media channels <strong>to</strong>drive influence. You can talk up the potential of IT and <strong>to</strong> help fostermomentum internally. “That is one of the reasons why we go publicon certain things, so that the media can come back and ask wherewe’ve gotten <strong>to</strong> on this. It puts a bit more pressure on us <strong>to</strong> getthings done,” says Guio<strong>to</strong>ko. The use of social media can also help<strong>to</strong> build a greater presence both internally and externally, and <strong>to</strong>make the CIO more approachable. For example, UCB’s Herman dePrins, who prefers <strong>to</strong> keep work-related <strong>to</strong>pics out of social media,uses his passion for cycling as a source for non-work-relatedupdates and links them <strong>to</strong> technology, which in turn has helped him<strong>to</strong> forge a range of positive connections across the business.5Digital-ready<strong>CIOs</strong> move <strong>be</strong>yondoperations and infrastructure.Something common among many of the <strong>CIOs</strong> interviewed for thisreport is a desire <strong>to</strong> prevent their roles from <strong>be</strong>ing taken over by theoperations and infrastructure elements. As Sanofi CIO BrunoMénard points out, it is a question of <strong>CIOs</strong> deciding where theyreally want <strong>to</strong> invest their time. “If you want <strong>to</strong> run the operationsyourself, that is a huge management demand, so it will affect yourabilities on strategy and innovation. You cannot do both,” heexplains.This isn’t <strong>to</strong> suggest that leading <strong>CIOs</strong> think that operations andinfrastructure are not important, but rather that they see these asfoundational elements that should <strong>be</strong> run as efficiently as possible,<strong>to</strong> free up their time for the more strategic aspects of their role.“The first thing for <strong>digital</strong> <strong>CIOs</strong> is <strong>to</strong> move spending away from ‘keepthe lights on’ kind of operational stuff that doesn’t make theircompanies any money or serve their cus<strong>to</strong>mers any <strong>be</strong>tter,” arguesInformationWeek’s Rob Pres<strong>to</strong>n. “Those who focus solely on this arejust chief infrastructure officers, and that’s not a good long termcareer prospect.”A lot of <strong>CIOs</strong> agree, noting that many of the traditional IT leadersthey meet at conferences appear <strong>to</strong> <strong>be</strong> no more than infrastructuremanagers. “They typically don’t come close <strong>to</strong> having board-leveldiscussions, and usually lie several layers away from the CEO,”notes Zooplus CIO Richard Alan Herz. Nedbank’s Fred Swanepoeladds: “In our business, sorting out the operational and efficiencyside is just the foundation for reliably delivering excellent clientservice. We build on that foundation by focusing on innovation <strong>to</strong>drive sales, deliver product breakthroughs, and fine-tune pricingmodels <strong>to</strong> influence changes in client <strong>be</strong>havior.”26 | <strong>Born</strong> <strong>to</strong> <strong>be</strong> <strong>digital</strong>

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