Role of the CIO in the Digital Age: Leading through Business Partnership & Innovation Management

1. Role of the CIO in the Digital Age:
Leading through Business Partnership &
Innovation Management
NGUYEN BA QUYNH
Ex-Deputy CEO of IBM Indochina

2. Strategy & Change
PwC 17th CEO Survey Result (Jan 2014)
2

3. Strategy & Change
PwC 17th CEO Survey Result (Jan 2014) (cont.)
3

4. Strategy & Change
CEO are more confident about growth in advanced economy than in
emerging economies
4

5. Strategy & Change
5
q1

6. Slide 5
q1 digital economy, social media, mobile device & big data
quynhnb, 11/23/2014

7. Strategy & Change
Digital Business: Growth Engine For CEO
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Source: Accenture CEO Briefing 2014

8. Strategy & Change
Customer-centricity requires a cross-functional approach
and cross- functional
business leaders
President
SVP/GM of Operations
Chief Transformation Officer
Chief Innovation Officer
Chief Customer Officer
Chief Risk Officer
…
and business unit leaders
VP of Claims Processing
VP of Retail Lending
VP of Commercial Loans
VP of Outpatient Services
VP of Power Delivery Services
The new triumvirate:
and technology leaders
Chief Technology Officer
VP of Software Development
Enterprise Architect
IT Architect
Operations, IT and Line of Business
Successfully attracting
and retaining customers
requires companies to
think and act cross
functionally.
~ Adam Klaber, Managing
Partner Emerging Markets,
IBM GBS
At HCF we have found
that delivering a superior
customer experience
requires tight partnership
between operations, IT
and the various lines of
business.
~ Stephen Nugent, General
Manager - Operations,
Hospitals Contribution Fund
Strategic Leadership:
Chief Executive Officer
Chief Financial Officer

9. Strategy Change
The Deconstruct Conquer Game Changer – Industry Framework
Infrastructure (Traditional/ Cloud-base)

10. Strategy Change
9
Transformation – Organizational Process
Business Process Outsourcing
Mergers, Acquisitions, and Divestitures
Requires
On Demand Operating Environment
Composable
Processes
(IBM
Component
Business Modeling)
Services Oriented Architecture (SOA)
SOMA
Flexible Business
Flexible IT
Composable
Services
(SOA)
Development Infrastructure
Software
Development
Integration
Management
Infrastructure
Management
Business
Process
Modeling
(IBM
WBM Modeler)
Process
Definition
Standards
A flexible business model requires flexible IT

11. Strategy Change
The Deconstruct Conquer Game Changer

12. Strategy Change
11

13. Strategy Change
12

14. Strategy Change
13

15. Strategy Change
14

16. Strategy Change
9 Entry Points for a SOA Transformation, allow companies to identify
the individually best suited starting point
Business Model
Processes
IT
Applications
IT Infrastructure
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IT Transformation
Start
Start Business Transformation
Business Process
Management
People
Productivity
Information as
Service
Start Start Start
Application
Integration
Start
Application
Modernization
Start
Infrastructure
Modernization
Start
SOA
Governance
Start

17. Strategy Change
An Enterprise Service Bus (ESB) was [Client Name]’s technology entry-point into
SOA
Service Service Apps Apps
Interface Interface Interface Interface
16
Interface Interface Interface
Allows for dynamic
Service selection,
substitution matching
Increased efficiency
and reuse of services
Applications Service Service
Enterprise Service Bus (ESB)
Increased access
to information
(e.g. “Get Customer”)
Faster
Development
Delivery -
Reduces time cost
to deploy a project
Improved
Flexibility -
Decouples point-to-point
connections
from the interfaces
Current State
Service Apps Apps Apps
Future State
Service Service Service Service

18. Strategy Change
The Evolution of Cloud Computing

19. Strategy Change
Innovation Framework defines the activities, processes, enablers and
linkages that enable innovation within an organization
18
Business Strategy
Overall objectives of the business as defined
by corporate Business vision, mission etc.
Strategy
Innovation
Agenda
Innovation Management
Governance
Innovation Enablers
Innovation Agenda
Overall direction, life-stage, mix, characteristics and
value proposition around innovation
Innovation Management Governance
Structures, processes, policies, frameworks
and tools used to manage innovation
Innovation Enablers
Elements that enable execution of
the overall innovation process

20. Strategy Change
Elements of the Innovation Agenda define the overall direction for
innovation and maintain alignment with the business strategy
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Business
Strategy
Innovation Management Governance
Portfolio
Management
Innovation
Organization
Management
Risk/Benefit
Evaluation
Project
Management
Knowledge
Management
Innovation
Performance
Monitoring
Incentives
and Rewards
Communi-cations
Innovation Agenda
Innovation
Strategy
Vision
Innovation
Mix
Innovation
Model
Definition
Value
Proposition
Innovation Enablers
Talent Culture
Internal
Collaboration
External
Collaboration
Tools
Frameworks
Infrastructure
Element Objectives
Selecting the desired innovation lifecycle
stage (i.e. pioneer, leader, disruptor,
consolidator, follower)
Establishing the organization’s overall
direction regarding Innovation and ensuring
alignment with defined business strategy
Defining the desired mix of innovation (i.e.
business model, products and services,
segments and markets, operations,
channels)
Defining the fundamental innovation model
characteristics (i.e. formal vs. adaptive;
specialized vs. disseminated; open to
external ideas vs. closed; integrated in LOB
vs. segregated in separate organization)
Determining and communicating the value
proposition desired from innovation
Innovation
Strategy
Vision
Innovation
Mix
Innovation
Model
Definition
Value
Proposition
Innovation Agenda

21. Strategy Change
Innovation Management Governance elements provide the
structures, processes, frameworks and tools to manage innovation
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Innovation Management Governance Element Objectives
Business
Strategy
Innovation Management Governance
Portfolio
Management
Innovation
Organization
Management
Risk/Benefit
Evaluation
Project
Management
Knowledge
Management
Business
Value
Analysis
Incentives
and Rewards
Communi-cations
Innovation Agenda
Innovation
Strategy
Vision
Innovation
Mix
Innovation
Model
Definition
Value
Proposition
Innovation Enablers
Talent Culture
Internal
Collaboration
External
Collaboration
Tools
Frameworks
Infrastructure
Tracking, monitoring and analyzing the
portfolio of innovation projects from
inception to completion
Managing resources within the innovation
organization
Developing criteria and benchmarks to
evaluate risks associated with the
innovation portfolio
Managing and reporting on individual
projects against timeline and budget
Collecting, organizing, storing and
distributing corporate innovation knowledge
Developing, tracking and reporting
individual and organizational KPIs to asses
the business value of innovation
Creating mechanisms to reward individual
and team performance
Systematic internal and external
communications around innovation
Portfolio
Management
Innovation
Organization
Management
Risk/Benefit
Evaluation
Project
Management
Knowledge
Management
Business
Value
Analysis
Incentives
and Rewards
Communi-cations

22. Strategy Change
Innovation Enablers provide necessary support for execution of the
overall innovation process
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Innovation Enablers Element Objectives
Business
Strategy
Innovation Management Governance
Portfolio
Management
Innovation
Organization
Management
Risk/Benefit
Evaluation
Project
Management
Knowledge
Management
Business
Value
Analysis
Incentives
and Rewards
Communi-cations
Innovation Agenda
Innovation
Strategy
Vision
Innovation
Mix
Innovation
Model
Definition
Value
Proposition
Innovation Enablers
Talent Culture
Internal
Collaboration
External
Collaboration
Tools
Frameworks
Infrastructure
People assets assigned to innovation, and
through the company
Organization personality and innovation
archetype as defined by assumptions,
values, norms, behaviors
Amount of collaboration (both horizontally
and vertically) within the organization
across various LOBs and divisions
Amount of collaboration between the
organization and other external businesses,
institutions and/or people
Methods and tools to support the various
phases of the innovation cycle
Systems, environments and internal IT
processes in place to support development
and testing of innovations
Talent
Culture
Internal
Collaboration
External
Collaboration
Tools
Frameworks
Infrastructure
A company’s individual innovation
culture needs to be fully understood
to appropriately structure and
invigorate an innovation program

23. Strategy Change
By understanding the existing corporate culture and innovation
archetype, the innovation enablement approach can be customized
A research study of 174 organizations across 24 countries and a broad set of industries, identified
22
four unique innovation models (or archetypes) that represent how companies innovate
Marketplace of
ideas (16%)
“Bottoms up” approach
Content with “leading from
behind”
Fully uses employees
Recruited for creativity
and passion
Well-stated innovation
goals for individuals
Effective stage gate
process, pilots and trials
Clear metrics of success
and failure
Environments that
allow experimentation
Generates Large number
of ideas – mainly internal
Environment Process People Leadership
“One man show”
Leader determines direction of
innovation selection of ideas
Adept at the teamwork
necessary to execute leaders’
plans
Fast implementation of select
ideas
Portfolio maps and strategic
plans to link executive vision to
daily activities
Few inter-dependencies with
outside parties
Select ideas generated and
pursued
Involved leadership
Sets priorities, raises urgency,
and allocates resources
Small groups dedicated
to problem-solving
Strong team culture
Fewer ideas, with strong formal
vetting process
Strong focus on cross-functional
teams for rapid execution
Diffuse product lines impossible
for a small set of visionary
individuals to control
Rigorous scanning
Leadership sets framework for
collaboration
Ideas generated with partners
customers
Collaborators
Empowered to make deals with
outside vendors
Robust stage gating and
implementation mechanism
Frequent pilots and trials,
involving partners and
customers
Understanding of customer
needs and partner participation
White space innovations
Visionary leader
(22%)
Innovation through
rigor (37%)
Innovation through
collaboration (25%)
Source: IBM Innovation Archetype research and analysis

24. Strategy Change
The Innovation Cycle represents an iterative process for assessing
capabilities and ideating, developing and realizing innovations
Realization
of ideas
through
execution
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Innovation Cycle
Capability assessment
Identify and assess innovation capabilities, structures,
processes, assets, tools, methods and innovation archetype
(generally restricted to the first cycle)
Sensing and Envisioning
Obtain inputs into, and scope the innovation effort through
activities which may include trends analysis, scenario
envisioning, area identification and selection
Ideation
Leverage various techniques and tools to conceive ideas
around the innovation areas
Evaluation
Prioritize and select a set of high value ideas for each defined
innovation area for future investment and development
Development
Refine selected ideas through additional research, compliance
assessment, clear business model articulation, full business
case development, etc.
Realization
Execute, release or implement the idea
Capability Assessment
of the client organization
Sensing
Envisioning
of inputs
into the
innovation
process
Ideation
around
identified
areas
Evaluation
of ideas identified
Development
of selected
ideas

25. Strategy Change
Combining the Innovation Framework and the Innovation Cycle
provides an integrated, comprehensive approach to expanding
innovation within a corporate environment
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The Innovation framework summarizes all
the elements necessary to align strategies
and implement robust structures and
processes to support innovation.
The Innovation Cycle provides a timeline
and engine to drive and capture innovative
ideas and initiatives.
Without a supportive organization, innovative
ideas are unlikely to be embraced or
managed effectively.
Without clear timelines and an engine, even
the most innovative organization may not
deliver practical results.
Capability Assessment
of the client organization
Sensing
Envisioning
of inputs into
the innovation
process
Ideation
around
identified areas
Innovation Management Governance
Evaluation
of ideas identified
Realization
of ideas through
execution
Development
of selected
ideas
Business
Strategy
Portfolio
Management
Innovation
Organization
Management
Risk/Benefit
Evaluation
Project
Management
Knowledge
Management
Business Value
Analysis
Incentives and
Rewards
Communi-cations
Innovation Agenda
Innovation
Strategy
Vision
Innovation
Mix
Innovation
Model
Definition
Value
Proposition
Innovation Enablers
Talent Culture
Internal
Collaboration
External
Collaboration
Tools
Frameworks
Infrastructure
By coordinating the innovation framework and
the innovation cycle, measurable benefits and
growth from innovation are possible

26. Strategy Change
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Enabling Growth and Differentiation through Innovation Management
Thank you!