The document summarizes findings from a study by the IBM Institute for Business Value that interviewed over 20,000 C-level executives. It finds that CEOs see technology as the most important external factor shaping their organizations. Outperforming companies are more open to customer influence, pioneer digital-physical innovation, and craft better customer experiences. While two-thirds of companies have weak or no digital strategies, CxOs are prioritizing improving customer experience and engagement through digital means.

1. IBM Institute for Business Value
IBM Institute for Business Value

2. The IBM global C-suite Study draws
on a decade of research with over
20,000 interviews
CEOs
CIOs
CMOs
6,300
7,000
2,200 600
IBM Institute for Business Value
CSCOs
CFOs
CHROs
4,500
1,500

3. This study covers 4,183 face-to-face
conversations with CxOs in 70 countries
North America
North America
Western Europe
Western Europe
605
1,349
Central and Eastern Europe
Central and Eastern Europe
304
631
Japan
637
475
South America
IBM Institute for Business Value
182
Middle East and Africa
Asia Pacific

4. CEOs consider
technology the single
most important external
force shaping their
organization’s future
CEO Studies 2004–2013
2004
2006
2008
2010
2012
2013
Technology
Technology
factors
factors
Market factors
Macro-economic
factors
People skills
Regulatory
concerns
Socio-economic
factors
Globalization
Environmental
issues
Geopolitical
factors
IBM Institute for Business Value

5. In the most recent
Interbrand study of most
valuable brands 6 were
based on information
technology
IBM Institute for Business Value
10 most valuable brands in the world

6. In the most recent
Interbrand study of most
valuable brands 6 were
based on information
technology
IBM Institute for Business Value
10 most valuable brands in the world

7. Three characteristics of
outperformers
1. Open up to customer influence
2. Pioneer digital-physical
innovation
3. Craft engaging customer
experiences
IBM Institute for Business Value

8. Three characteristics of
outperformers
1. Open up to customer
influence
2. Pioneer digital-physical
innovation
3. Craft engaging customer
experiences
IBM Institute for Business Value

9. Connect with your
customer
IBM Institute for Business Value

10. ”
As customers gain more power
over the business via social
media, their expectations keep
rising and their tolerance
keeps decreasing.
CIO, Retail, Turkey
IBM Institute for Business Value

11. CEOs say customers come second only to
the C-suite in terms of strategic influence
Key influencers on enterprise vision and strategy
20%
78%
C-Suite
55%
Customers
53%
Board of Directors
44%
Corporate strategy function
Non-executive senior leadership
26%
Key external business partners
25%
Parent company
IBM Institute for Business Value
23%

12. Outperforming
enterprises are more
likely to collaborate
extensively with their
customers
Greater collaboration with customers translates into
greater financial success
39%
more
54%
Underperformers
60%
Outperformers
IBM Institute for Business Value

13. Three characteristics of
outperformers
1. Open up to customer influence
2. Pioneer digital-physical
innovation
3. Craft engaging customer
experiences
IBM Institute for Business Value

14. Two-thirds of
enterprises have a
weak digital-physical
strategy – or none at all
Types of digital strategy
33%
36%
36%
have an integrated
digital-physical
strategy
31%
Integrated digitalphysical strategy
IBM Institute for Business Value
Limited digital
strategy
No digital strategy

15. CMOs see a critical
need to implement an
organization-wide digital
strategy
Digital ambitions – CMOs
87%
16%
Integration of cross-channel
touchpoints
13%
83%
Analytics to capture customer
insights
20%
78%
Social networks to foster
collaboration
13%
73%
Workforce aligned to opportunities
11%
69%
Digitally enabled supply chain
Today
IBM Institute for Business Value
3-5 Years

16. Developing a
fully integrated
digital-physical strategy
reaps rewards
Fully integrated digital - physical strategy
31%
%
26more
Underperformers
39%
Outperformers
IBM Institute for Business Value

17. Three characteristics of
outperformers
1. Open up to customer influence
2. Pioneer digital-physical
innovation
3. Craft engaging customer
experiences
IBM Institute for Business Value

18. Recognizing the change in customers’ expectations,
CxOs are rebalancing their priorities
Areas of personal involvement
20%
Customer experience
management
+8%
+7%
eCommerce
+5%
Talent management
Supplier, vendor and partner
management
-5%
Risk and security
-5%
IT systems and operations
IBM Institute for Business Value
-6%

19. All CxOs plan to focus more on the customer
experience in the future, with CIOs clearly
upping their game
Change of focus – Customer Experience Management
CEO
CFO
34%
9%
41%
13%
CHRO
29%
CIO
28%
38%
CMO
75% 77%
CSCO
29%
Today
IBM Institute for Business Value
64
] more %
46%
37%
3–5 Years

20. Most CxOs recognize
that they don’t
understand their
customers well today,
yet anticipate greatly
improving going forward
High level of customer understanding
35%
76%
%
more
117
Today
35%
IBM Institute for Business Value
76%
3–5 Years

21. The more deeply an
enterprise understands
its customers, the more
likely it is to flourish
High level of customer understanding
29%
%
62more
Underperformers
47%
Outperformers
IBM Institute for Business Value

22. In the coming months, we will further explore
each of the specific C-suite roles
CxO Point of View
Schedule
CEO and CIO
November 2013
CFO and CMO
January 2014
CHRO and CSCO
February 2014
IBM Institute for Business Value
Addressing the opportunities and challenges
facing the enterprise
Tackling the opportunities and challenges
facing their functional area
Working with their C-suite colleagues

23. IBM Institute for Business Value