Digital leadership CIONET Magazine, October 2016
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Realise your ambition Contents CIOCITY 4
Orchestrating digital leadership Digital leaders join forces with startups to accelerate business innovation.
7 European CIO of the Year 2016 awards Celebrating CIOs who have proven leadership in digital business transformation.
10 Identifying excellence in research CIONET announced the European Research Paper of the Year 2016.
In a world where IT has become the nervous system of business and society, we believe that ClOs and their teams are the new heroes that drive change and innovation in their organisations. That’s why we have built CIONET, the leading global community of IT leaders. It is our mission to provide CIONET members and partners with the best
20 Using technology to reinvent the business Meet the winners of the Spanish Digital Leadership Awards 2016.
23 CIO’s next job Every second the CIO is planning to change his job within next two years.
25 How vital is cybersecurity training? Cybersecurity simulation provides a vital learning curve for organisations.
26 Capitalising on the Internet of Things How to integrate IoT into company operations to generate business opportunities?
11 NXTTCH 16 NXTTCH connects the corporate world to challengers of current business models.
12 Global Digital Leaders Alliance Sharing knowledge, research and best practices from around the globe.
14 What do we learn from the Connected Cow? The Internet of Things is offering new insights for innovating faster than ever.
EVENTS 18 Collaborating with start-ups on innovation How should the relationship between a big company and disrupters - such as start-ups - be?
THE NEXT CIO 30 The CIO, creator of value CIOs become drivers of change in a global context of digital transformation.
32 Added value for digital leaders CIONET Germany actively supports CIOs on their journey to become a CIO+.
34 Earning respect from the board Enforced CIO leadership drives successful digitalisation strategies.
36 Digital innovation in the construction industry The IT department lays the foundations for the company of the future.
possible platform to help them to succeed and make the world a better place. We do this by understanding the ClOs’ needs and by fostering their development and growth. We believe that community and collaboration are the heart of the organisations and society of the future. We are driven by the passion and ambition of our members.
CIO VISION 38 Digital transformation requires agility The vision of the CIO+ ITALIA AWARD 2016 winners on the role and challenges of IT
40 The CDO, leader of digital business transformation Digital transformation in companies is determining the new business strategies.
42 The balance between innovation and security We seek a balance between the simplicity of a solution from an enduser’s point of view and the security.
43 The four missions of the CIO, the disruption leader What are the roles the Digital CIO has to play to become the key player of change?
45 Enabling digital transformation IT-infrastructure optimisation leads to increased technological flexibility.
46 Redefining the customer journey with digital business In five years, digital innovation will bring together people, processes and technology.
CIONET PARTNERS 47 Have a look at the full list of CIONET’s Premium Business Partners, Business Partners and Research Partners.
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Digital leadership CIOCITY 16, the sixth edition of CIONET’s yearly international conference, gathered over 500 digital leaders and IT professionals in Amsterdam around the central theme ‘Orchestrating digital leadership’. The conference was thé place to be for CIO’s to meet with peers, pick up new ideas and exchange insights. At the same event we honoured three of Europe’s most successful digital leaders. Congratulations to the 2016 European CIO of the Year award winners Phil Jordan, Sergio Garcia Cebolla and Jordi Escalé. At CIOCITY we also proudly announced the winner of the first ever European Digital Leader of the Year award, which celebrates a leader from outside our member base who substantially contributed to the use of digital technology to achieve a bigger goal. The prize was granted to Rob van Gijzel, the mayor of Eindhoven. Furthermore, we congratulate the winners of the European Research Paper of the Year award. The jury granted the award to the paper ‘Coping with Information Technology: Mixed Emotions, Vacillation and Nonconforming Use Patterns’. The winning paper was co-authored by Mari-Klara Stein, Sue Newell, Erica L. Wagner and Robert D. Galliers. While CIOCITY is an exclusive conference for IT decision makers, their team members also want to benefit from new insights and ideas. Especially for them, the parallel conference NXTTCH was held in collaboration with ITWNET, our sister community with a global reach of over 200,000 IT professionals. NXTTCH focused on digital disruption and hosted a lot of world-class speakers and start-ups. CIONET continues its global growth. Today, we count over 6,350 members supported by CIONET teams in 15 countries in Europe and Latin America. Our community also keeps expanding globally by collaborating with CIO communities all over the world. At CIOCITY, digital leader associations from Europe, Latin America, China, India, Russia, and the United States signed a collaboration agreement - the Global Digital Leader Alliance. Together, these organisations represent over 20,000 digital leaders from around the globe.
Patrick Arlequeeuw, Strategy Director of CIONET International
Finally, we continue the value-adding development of peer groups, insight, mentoring and learning programs. This month we also launched a new way for CIOs to share their insights: CIO opinions. In short, two-page articles CIOs express their vision and conclusions on a variety of topics relevant to their peers. These opinions will be widely distributed within the community. Realise your ambition!
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Digital leaders join forces with start-ups to accelerate business innovation.
Orchestrating digital leadership Harley Lovegrove
CIOCITY 16 was attended by over 500 digital leaders from 17 countries. Both the networking opportunities and the programme are major attractions making this yearly international conference a major milestone on every digital leader’s agenda. This year’s central theme was ‘Orchestrating digital leadership’. Hendrik Deckers, Founder and Managing Director of CIONET International, and conference chairman John Higgins CBE, Director General of DIGITALEUROPE, opened the sixth edition of CIOCITY in the ‘Muziekgebouw aan ’t IJ’ in Amsterdam.
Digital leadership Harley Lovegrove, Chairman of The Bayard Partnership, Change Management Coach, author, lecturer and public speaker, stated that leadership in a digital age doesn’t necessarily have to do with ’digital’. “I’m getting less comfortable with the words ’digital age’, and I have a problem with the ’C’ in CIO or CDO. In these times the concept of ’chief’ is the most difficult.” For him, being a great CIO means being a great leader first. “You got to have vision, and you want to make a difference. Dare to go for it, bring in the best brains and lead by example. But most of all: If you want to change anything, having fun is extremely important.”
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CIOCITY CIONET International
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Paolo Cinelli, Kurt De Ruwe, Mattias Ulbrich and Federico Flórez Gutiérrez (from l. to r.)
Joost Visser, Head of Research at Software Improvement Group and Professor at Radboud University Nijmegen, argued that software is key to business success. “Whereas hardware is just a commodity, software is a differentiator, it is in the DNA of our society. But don’t forget to design for replaceability, because at some point the market makes something cheaper.” A panel of four CIOs discussed digital transformation. The participants were Federico Flórez Gutiérrez, Chief Information and Innovation Officer at Ferrovial; Mattias Ulbrich, CIO and Head of Organisation and IT at Audi AG; Kurt De Ruwe, CIO at Philips Lighting; and Paolo Cinelli, Digital Business Manager at IKEA. They agreed that Two-speed IT isn’t about two speeds. According to Ulbrich there is no difference in speed. Flórez agreed, adding that you do have to work in different ways. Cinelli stated that it cannot just be two but multiple speeds. De Ruwe replied that It should be about the right speed. How about trust in new technologies? Sander van Loosbroek, Director Distributed Ledger Technology and former Blockchain Solution Manager at Cegeka, predicted that blockchain will disrupt everything, from banks to elections and undeniably will have an impact on your business. “But we still are suspicious about blockchain, because trust is decentralised. If we want to benefit from it, we have to
Gerd Leonhard
take a step towards it. Technology is only beneficial if we trust it”, he stated. Next, Gerd Leonhard, Futurist, Author and Keynote Speaker, talked about how future technology will affect business. He predicted 10 megashifts that probably will happen in the next few years. Traditional industries, such as automotive, will be totally reshaped by these shifts. When looking at the megashifts he sees three key challenges and opportunities for digital leaders: we must see the exponential growth potential, always keep in mind how they combine but also look at their interdependency. Self-driving cars, for instance, will impact how we think about work, urban planning and ownership.
Collaborating with start-ups The second day of CIOCITY 16 was opened by Robin Raskin. She is the is Founder and CEO of Living in Digital Times (LIDT), a team of technophiles who bring together top experts and the latest innovations to look at the intersection of lifestyle and technology. LIDT produces a number of notable conferences and expos at CES (the Consumer Electronics Show) and at conferences and events worldwide. Dries Buytaert, Founder and Project Lead of Drupal, and Co-founder and CTO of Acquia, is the original creator and project lead for the Drupal open source web publishing and collaboration platform. He explained that if you want to succeed, it’s all about building
contextual experiences, finding out what the next best experience will be and what the customer really wants. He stressed the importance of building a 1-on-1 relationship with the customer. For Herman Kienhuis, Managing Director at KPN Ventures there are four good reasons to start collaborating with or investing in start-ups: startups create access to real innovation; they increase the speed of business and at the same time reduce the cost of in-house experiments; start-ups bring additional value to customers; and, finally, they create value for your existing assets, resources and channels. Mark Zawacki, Founder of 650 Labs, gave his learnings from Silicon Valley. He stated that successful disruption isn’t about tech, but about organisation. Top examples from Silicon Valley, such as Uber and Airbnb have a competitive advantage. There are seven things they are particularly good at: they are good in building platforms - not apps; they are great at forming disruptive hypotheses; it’s about open innovation - talking very openly and being transparent; they are great at UX / CX / design thinking; they are strong in decision making; and they prefer experimenting instead of doing a pilot. Zawacki added that start-ups are great at their motivation. Linda Liukas, Children’s book author at Hello Ruby, Co-founder of Railsgirls. com, and Digital Champion of Finland,
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Dries Buytaert
Mark Zawacki
Alain Leduc
talked about her children’s book project, which teaches programming fundamentals through stories and child-friendly activities. Rails Girls is a workshop for girls who want to learn to build the web. During one weekend they’ll learn to concept, code and ship a web application.
Punk management Alain Leduc, Creativity & Innovation Energiser and Public Speaker is the founder of Creativores (www.creativores.com). His company is specialised in activation and management of creativity and innovation in organisations. Alain leads creative assignments and conducts seminars, conferences and workshops on creativity throughout Europe. His mission is to make people and businesses creative and enhance innovation. During his sessions he wakes up creativity with real experiences in which he makes people
see and do things in a different way. At CIOCITY 16 he led a creative session called ‘Punk management’ in which he invited the participants to brainstorm about how to increase the sales volume of apples. He asked them to look for unexpected and funny answers. This lead to a variety of ideas and some of them seemed to be very bad at first sight. “In meetings we focus too much on ideas that are good or useful. But bad ideas often are very powerful if you consider them seriously and try to turn them into something positive”, explained Leduc. “We should become punk managers who think as a rebel, daring to think differently and changing the way we are used to see things. A changing perception can be the first step towards disruption”, concluded Leduc.
www.ciocity.com
CIONET celebrates first European Digital Leader of the Year At CIOCITY 16 in Amsterdam CIONET granted the first ever European Digital Leader of the Year award to the mayor of Eindhoven, Rob van Gijzel. With this award, the CIONET community wishes to celebrate a leader from outside of its member base who has substantially contributed to the use of digital technology to achieve a bigger goal. Rob van Gijzel (m.) with Frits Bussemaker (l.) and Hendrik Deckers (r.)
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CIOCITY CIONET International
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Celebrating CIOs who have proven leadership in digital business transformation.
European CIO of the Year 2016 awards At this year’s CIOCITY event in Amsterdam, the European CIO of the Year 2016 awards were granted to the most successful CIOs in three categories: Global responsibility, Regional responsibility and Public sector. Global responsibility
Phil Jordan, Group CIO of Telefonica. In the category Global responsibility, following careful consideration the jury decided to grant the award to an IT leader who is consistently being regarded as a key influencer by his peers. He has led the business
2016 transformation of his company through a tremendous amount of global initiatives, acting as a true visionary Phil Jordan is a leading Global CIO and Digital Leader in the Communications and High Tech Industry. He has a very successful leadership track record and is renowned for transforming IT and exploiting its the value in major global companies. He spent twelve years
Phil Jordan, European CIO of the Year, Global responsibility
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Sergio Garcia Cebolla, European CIO of the Year, Regional responsibility
at Vodafone where, in 2010, he became Regional CIO Northern Europe. Next he moved to become CIO at Telefonica O2 UK. Shortly after that, in 2011 he went to Madrid to become Global CIO of Telefonica, with 20 countries, 6,000 IT professionals and a multi-billion annual IT budget. In addition to these responsibilities, he has overseen the creation and exploitation of a wholly owned, independent but captive global technology company as CEO and now Chairman. Under his leadership, Telefonica has had many successes in the boldest transformation in the industry, including radical business simplification, building and exploiting unique and world class data centres, global shared services to optimise IT spending and in the transformation of the process and application landscape to enable the
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business vision: becoming the world’s best digital telecommunications company. Phil was consistently voted at the top of the CIO Top100 and in the UKTECH50 of the 50 most influential people in UK technology. He is a member of the board of directors for the TM Forum and has served as a non-executive independent advisor on IT for a major banking and financial services company.
Regional responsibility
Sergio Garcia Cebolla, CIO of HM Hospitales. For the category Regional responsibility the jury chose to hand out the award to
a professional who has demonstrated true leadership in collaborating with peers across the organisation in order to provide new added-value services to its clients and maximise the customer experience. Sergio Garcia Cebolla holds a degree in Computer Science Engineering from Antonio de Nebrija University since 2001. As Master in Information Systems from Alcala de Henares University, he started an internship for UNI-2 (France Telecom) and later worked for them as database administrator. By the end of 2001 he switched to a civil engineering consulting company (PEYCO S.A.) that was involved in the Spanish high speed train projects (AVE). There he started as system administrator and ended up managing the IT department. Sergio joined HM Hospitales group in 2004, starting as deputy IT director.
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Jordi Escalé, European CIO of the Year, Public sector
Later, in 2007, he was promoted to CIO, which is the position he still occupies today. Sergio is managing the projects belonging to the area and its three departments: CAU and Telecommunications, Security and Systems, and Software Development.
Public sector
Jordi Escalé, CIO of the Government of Catalunya. The jury chose to grant the award for the category Public sector to a professional who radically transformed public services by the use of new technology, providing more efficient services to the public, while in the meantime reducing costs and generating new revenue.
Jordi Escalé wants to be defined as transformational leader. He has an inspiring and charismatic leadership approach with a broad knowledge about business strategy. Having this strong business orientation with great energy level, Jordi creates the atmosphere that allows the growth of people and organisations. Jordi has a Bachelor and a Master degree in Business Administration M.B.A. from ESADE and did a General Manager Program at IESE. The first website at ESADE and the first database website in Spain were made by Jordi in 1994. He joined Telefonica by taking the eCommerce & eBusiness Managing position at Terra. He has been driving new business opportunities focusing on growth and profitability, and managing the whole product development cycle. Some examples are payment platforms,
shopping malls, as well as websites for FC Barcelona and Real Madrid. Strategic Marketing at Telefonica and Marketing & Innovation at Infojobs accelerates his capabilities to discover the business value of ICT. Jordi is CEO of CTTI (Centre de Telecomunicacions i Tecnologies de la Informació), the company in charge of managing and providing all Information Technology and Telecom services for the Catalonian government. As CIO of the Government of Catalonia, he achieves outstanding results in efficiency, transformation of ICT services and promoting the ICT sector. Intellectually stimulated and passionate about sharing knowledge he is professor at ESADE since 1995.
http://ecoty.eu
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CIONET announced the European Research Paper of the Year 2016.
Identifying excellence in research 2016
The aim of CIONET’s European Research Paper of the Year election is to identify the European research paper that embodies most excellence in both rigour and relevance of research.
In order to promote the exchange of ideas, experiences and knowledge among professionals and academics in the area of information and communications systems and technology management, the CIONET European Research Paper of the Year acclaims a yearly best research paper. There are first and second prize winners. After an extensive analysis of over 18 papers, the jury of the European Research Paper of the Year nominated the two finalists for this year’s award. Eventually, the jury decided to grant the award to the paper ‘Coping with Information Technology: Mixed Emotions, Vacillation and Nonconforming Use Patterns’, which was co-authored by Mari-Klara Stein
- Copenhagen Business School; Sue Newell - Sussex University; Erica L. Wagner - Portland State University; and Robert D. Galliers - Bentley University and Loughborough University. In their paper the authors state that achieving the promised business benefits of an IT system is intimately tied to the continued incorporation of the system into the work practices it is intended to support. While much is known about different social, cognitive, and technical factors that influence initial adoption and use, less is known about the role of emotional factors in users’ behaviours. Through an in-depth field study conducted in two North American universities, the authors examined the role of emotions in how specific IT use patterns emerge.
Runners-up
Mari-Klara Stein, Assistant Professor at Copenhagen Business School (m.); Carsten Trapp, CIO and Member of the Management Board at SICK AG (l.); and Egon Berghout, Professor at University of Groningen (r.) (Photo: Wiebke Wilting)
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Anne Scherer ,Lecturer & Post-Doctoral Researcher at ETH Zurich (l.) and Egon Berghout, Professor at University of Groningen (r.) (Photo: Wiebke Wilting)
A big congratulation went as well to the runners-up of this award, for their paper ‘The Value of Self-Service: Long-Term Effects of TechnologyBased Self-Service Usage on Customer Retention’, which was co-authored by Anne Scherer - ETH Zürich; Nancy V. Wünderlich - University of Paderborn; and Florian von Wangenheim - ETH Zürich. Their study underlines the importance of understanding when and how self-service technologies create valuable customer experiences and stresses the notion of actively managing customers’ co-creation of value.
www.erpoty.com
CIOCITY CIONET International
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NXTTCH connects the corporate world to challengers of current business models.
NXTTCH 16 While CIOCITY is an exclusive conference for IT decision makers, their team members also want to benefit from new insights and ideas such a gathering offers. Especially for them, the parallel conference NXTTCH 16 was held. CIOCITY 16 was held in parallel with a new conference for IT professionals: NXTTCH, the European Digital Innovation Conference that brought together many top speakers and startups. The conference was organised in collaboration with ITWNET, a community with a global reach to IT professionals of over 200.000. NXTTCH focused on digital disruption and hosted world-class speakers and start-ups to discuss issues such as the business impact of IoT, Fintech and other emerging technologies. Both NXTTCH and CIOCITY were held in the same venue, in ‘Muziekgebouw aan ‘t IJ’ in Amsterdam. Also, a number of presentations addressed both the NXTTCH
and CIOCITY participants to allow high value networking moments for both communities - mixing the Suits and the Hoodies. And all NXTTCH activities were open to CIOCITY delegates.
permanent beta will be central. NXTTCH challenged its visitors and their organisations with experiences, in-depth debates and with a focus on finding the right business cases.
Connecting with start-ups
www.nxttch.com
Many companies are reaching out to start-ups that challenge the current business models. NXTTCH is the first premium event in Europe that connects the corporate world to all kinds of disruptive technologies. Over the next few years there will be a struggle to find the right business cases and to find ways to successfully transform organisations and people into a new era where co-creation and
About ITWNET The global community of IT professionals is scattered over many silos, each with its own identity and each trying to survive with a mostly volunteer team to get the work done. Most of these organisations simply cannot cope with that in the long term. As a consequence, many organisations lose their momentum, and members look elsewhere for their need to connect and exchange knowledge. On top of that, everything connects, especially in IT, and IT professionals should learn to look across borders, working together, learning together, and being able to find each other and each other’s knowledge. ITWNET (short for IT World Net) is an umbrella organisation that connects 100.000s of IT professionals, not by competing with existing platforms and communities, but by bringing them together and enforcing their strengths.
Patrick de Zeeuw Co-Founder of Startupbootcamp Maarten Verkoren, Managing Partner at the Dutch start-up 3D Makers Zone
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Sharing knowledge, research and best practices from around the globe.
Global Digital Leaders Alliance
At the CIOCITY 16 conference in Amsterdam, CIONET invited the executive teams of the CIO communities from China, India, Russia and the United States and Europe & Latin America. Together they signed a collaboration agreement to establish the ‘Global Digital Leaders Alliance’. If you are a CIO, the challenges you face and the experiences you have are basically the same for you as for your peers. Organisations like CIONET have proven the benefits of sharing your best practices and vision and learn from each other. This is true for the various CIO communities around the globe. Over the years CIONET has established a working relationship with a couple of the other CIO communities. E.g. we participate in the US based annual Global IT Trends survey. And, we were on the international steering committee of the 2014 World CIO Forum in China where we signed a collaboration agreement with the Chinese CIO Union. These activities have so far resulted in the exchange
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of trends, knowledge and speaking opportunities around the world. Furthermore, the collaboration agreement facilitated for CIOs to meet with their peers in other parts of the world. This positive experience led to a CIONET initiative in the summer of 2015 to reach out to a number of CIO communities around the globe. The executive teams of the communities were approached with in essence just one question: “What do we have in common?” We live in an era of a Global Digital Transition touching all global markets and organisations. We see new organisations, business models and processes emerge at an increasingly faster speed. The Digital Leaders
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Together, these organisations represent over 20,000 Digital Leaders from all over the world. Signing the Global Digital Leaders Alliance. From left to right: Hendrik Deckers, Steve Hufford, Vladimir Soloviev, Frits Bussemaker (on behalf of the China CIO Union) and Shirish Gariba. (Photo: Wiebke Wilting)
represented in these networks are responsible for the Digital Transition within their organisations. And as CIO communities we are all looking for the best ways to support our members. CIONET invited the executive teams of the CIO communities from China, India, Russia, the United States and Europe & Latin America to attend the CIOCITY 16 conference in Amsterdam. And, after long and productive discussions at the CIOCITY dinner, we signed the collaboration agreement to establish the ‘Global Digital Leaders Alliance’. Through collaboration it will be possible to share peer-to-peer knowledge, research and best practices from around the globe on the Global Digital Transition. The collaboration agreement was signed by CIONET International, the China CIO Union, the CIO KLUB from India, the Russian Union of CIO and the Society for Information Management from the United States. Together, these organisations represent well over 20,000 Chief Information Officers (CIOs) and Digital Leaders from all over the world and represent billions in IT
investments. The agreement is also open to geographic regions which are not represented yet. We are already experiencing the effects of our collaboration, as CIOs from Europe and India are invited to share their knowledge at the World CIO Forum in China. And a visit to the US is being scheduled. Furthermore, we hope to bring the Indian ‘International CIO Day’ initiative on April 25th to a true global level. This initiative did not go unnoticed in Amsterdam: Kasja Ollongren, deputy-mayor of Amsterdam: “We are proud to be the host city for CIOCITY. Amsterdam has the ambition of being a Global Digital Hub and this international top IT event gathers exactly the people that fit in that ambition. We are also very happy that you choose Amsterdam to be the birthplace of the Global Digital Leaders Alliance (GlobalDLA) connecting Digital Leaders from around the world”. The CIO communities were also invited to open the Amsterdam Stock exchange on Monday June 27th.
For more information on the Global Digital Leaders Alliance, please contact Frits Bussemaker, Secretary General of CIONET. Email: frits@cionet.com
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The Internet of Things is offering new insights for innovating faster than ever.
What do we learn from the Connected Cow? KPN shared its vision of digitisation in Amsterdam on June 27th. During the workshop entitled ‘The Connected Cow’ - part of the international CIOCITY 16 event - Chief Information Officers were updated extensively and inspired by the opportunities arising from IoT, among other things. connectivity, KPN is investing hugely in expanding the coverage of the Low Power Wide Range (LoRa) network in the Netherlands. With this network, small data packages can be sent across very long distances. It is ideal for connecting small, energy-efficient sensors to the internet.
The most fertile moment
Mark Benioff, CEO of Salesforce, believes speed is the new currency for companies. The organisation that can profit from innovations faster than its competitors has a significant lead. It is hardly surprising that advisory firm Gartner says the definitive question CEOs are posing to CIOs is: “How can you implement changes faster?” The Internet of Things (IoT) is offering new insights for innovating
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faster than ever, and thus for staying ahead of the competition. In the workshop ‘The Connected Cow’, Joris Geertman, Director Portfolio & Innovation, Marketing and Alliances at KPN Consulting Netherlands, pointed out that the number of connected devices is forging ahead worldwide. In 2020, there will be 25 million connected objects, according to KPN. To keep pace with the demand for (smart)
The LoRa network will have national coverage in the Netherlands. But it is already being tested to the fullest, noted Geertman. For example in the Connected Cow. In this trial conducted by KPN with partners Clickey (IoT developer) and the University of Utrecht, a cow has been fitted with a sensor. The cow wears it on its leg or neck, or simply swallows it. Among other things, the sensor can monitor temperature, weight, height, activity and sleep patterns. An app receives the data. Smart algorithms convert the data into usable information. Thus the app indicates clearly whether the cow is likely to fall ill. The app also shows when the cow is at its most fertile,
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The ‘digital transformation’ is a technology-based organizational change. Technologies are transforming from merely functional tools to strategic enablers that allow organizations to optimize and innovate on multiple fronts. However, although technology is essential, it is ultimately people who make the difference. Some sectors are being shaken to their core by digital disruptors who are reducing the effectiveness of proven business models. Many organizations feel that this is a time of ‘sink or swim’. They wonder where they should invest in order to benefit from the digital transformation. In technologies like robotics or beacons? In outsourcing or working agile? However, an excessive focus on technology is a major pitfall. Of course it is important to choose the right technologies, but only to a certain extent. The true key to success lies in applying innovation to change organizations. Effective leadership, a focus on value creation, and an organization-wide approach
will ensure that technology can be used effectively to achieve a true transformation.
software: they all contribute to the customer experience and the success of the organization.
We believe that the best course of action is investing in expertise and creating room for change. This means attracting and retaining talent with a digital mindset. They are the people who can make the difference, provided they are given the room to do so. We also recommend investing in training, coaching and inspiration sessions to ensure that everyone in the organization is included in the digital transformation. Provide teams with the autonomy they need to identify opportunities and devise solutions. Whether employees interact with customers or develop
In short: the digital transformation is not only the perfect opportunity to use technologies in smarter ways, but also to make organizations as a whole more efficient, productive and customer-friendly. Particularly customer experience should be a key spearhead. After all, no matter how you look at it – the digital transformation is all about people. Interested? If you would like to know more about the digital transformation, contact Richie van Heuven van Staereling at richie.vanheuven@kpn.com.
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Joris Geertman, Director Portfolio & Innovation, Marketing and Alliances at KPN Consulting Netherlands
Dennis Groot, Portfolio Manager Data Management at KPN
Johan Barnhard, Innovation & Portfolio Manager at KPN Consulting Netherlands
for instance. That means the farmer can perform insemination at the most opportune moment. The initial results from the trial are encouraging. Milk production from ‘connected cows’ rose by 100%, because the farmer took clever advantage of the cow’s circumstances and needs. Thanks to the innovation, a participating dairy farmer also expanded his herd from 100 to 200 cows, without needing to put in any extra time.
of Utrecht are applying themselves to these questions. Their view: a cow has no need for privacy, but must certainly be treated with respect. It is up to the farmer, the ‘guardian’ of the cow, to monitor the boundaries. “He or she is also liable. This means, among other things, that the farmer must ensure any data is secure and does not fall into the wrong hands”, noted Groot. Ideas, concepts and further elaborations must be interwoven with preconditions such as security and privacy. Dennis Groot indicated that there is an area of tension here, because devoting attention to these points could slow down further development. “Companies will need to strike a balance between speed and these types of trust aspects. Ultimately, it is true that if you pay attention to privacy and security at an early stage, you will reap its fruits at a later stage.”
experiments. Johan Barnhard, Innovation & Portfolio Manager at KPN Consulting Netherlands, emphasised the need to stay small and agile in the experimentation phase. “Take up to 90 days to set up a small, well-organised study. If it doesn’t work in that time, then it hasn’t been set up properly and you should launch a new study.” The focus then is on building a Minimum Viable Product in a short time: the simplest possible first design. Does this work in practice? If so, companies can add functionality gradually, and work on its realisation. Important aspects here are choosing the right connectivity and a stable infrastructure.
The need for trust Geertman’s colleague Dennis Groot, Portfolio Manager Data Management at KPN, raised the aspect of ‘trust’ during the workshop. Groot pointed out how important it is that organisations give careful consideration to the social impact of their smart solutions. For example, does a cow have a right to privacy? How far may we go? Ethicists and researchers from the University
Organisations need to create their partner ecosystem intelligently.
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Small and agile The possibilities already exist, but Geertman concedes that many companies are not yet ready. More than 67% of Dutch companies are not yet aware of the term IoT. So a Chief Digital Officer or innovation manager will often have to create awareness first, through workshops and presentations. From there, a company could deploy hackathons, makeathons and co-creation sessions to formulate ideas and, ultimately, concrete
Smart collaboration The IoT landscape is fragmented. Countless small organisations are delivering numerous small solutions. “Organisations can never do everything themselves and need to create their partner ecosystem intelligently”, offered Geertman as a final word of advice. “At KPN, we also see our own role in this. We have an extensive partner ecosystem, which we deploy to support clients as fully as possible.” He concluded: “Ultimately, it’s not the technology that is the problem.” He concluded that the only thing that is important to companies, is the answer to the question ‘What is your Connected Cow?’.
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How to handle the increasing speed of innovation and how to apply innovation
Don’t you just love the smell of innovation in the morning? Innovation is to companies what food is to people. It is the fuel for growth and survival. But innovation only has value if it can be applied in a concrete way that leads to more or new business. Otherwise, it is like coffee; a quick rush with no long-term effects.
Frank Wammes Chief Technology Officer Capgemini Europe
As I enter our offices in Utrecht, for the past nine months I have walked straight to our Applied Innovation Exchange CoZone. There’s a buzz here. It’s bustling here. I can smell the innovation here. Our consultants and developers work here, together with our clients, on new ideas and concrete projects in weekly sprints. This CoZone is an environment that not only invigorates me; it inspires our people and our clients in equal measure.
their business objectives. After all, innovation only has value if it is applied. Our solution to this is the Applied Innovation Exchange: a framework, ecosystem and physical location where clients can shorten the cycle time from concept to application quickly and safely. We do this by bringing them into contact with start-ups, innovators and niche players. And even more importantly, by working with them in the aforementioned CoZone.
And that is sorely needed, because IT technology is developing at breakneck speed. In 2008, Apple’s App Store offered around 500 apps. Today, it offers around 1.5 million. Just check out the success of Pokemon Go. We got to catch them all! Not every application will duplicate the success of WhatsApp, Spotify or Snapchat, of course. Or launch a successful disruptive business model like Über, Tesla or Netflix. But the digital revolution’s far-reaching effects on established market players are unmistakable. Organization must, therefore, incorporate innovation as a daily part of their business. Not separate from the existing business but as an integral part of the business. Digital innovation is not an IT game; it is the foundation for every future-proof organization.
Open, transparent cooperation; these are the key words for the successful business of the future. We not only seek to understand our clients’ business, IT legacy and ambitions, but also to work with them in a dynamic and fluid way. Our CoZone is an important catalyst for this; in fact, many clients have expressed a desire to create similar zones in their own organisations. I fully understand this. It is applied innovation in its purest form. I invite you to come and experience it for yourself.
Our clients, therefore, not only wish to explore innovation but also to accelerate and apply it in a concrete way to
Capgemini Nederland B.V. Frank Wammes Follow me on: Twitter: fwammes www: capgemini.nl/applied-innovation-exchange
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How should the relationship between a big company and disrupters - such as start-ups - be?
Collaborating with start-ups on innovation The third CIONET Brazil’s Networking Encounter had the theme ‘Innovation and Start-ups’ and it was hosted in CUBO’s* auditorium. The Encounter was attended by around 98 attendees.
The most innovating ideas from external sources could be used in new projects.
The first presentation was made by Federico Flórez, Chief Information and Innovation Officer at Ferrovial, and Advisory Board President of CIONET Spain. He exposed many innovation experiences within his company and also elaborated on strategies to select the most innovating ideas from Ferrovial’s employees and from external sources that could be used in new projects.
Investing in start-ups The next speaker was Anderson Thees, Managing Director at Redpoint eVentures, an investment company for start-ups. He presented best practices and strategies for investing in start-ups - both to acquire and use their services and solutions. Some successful and unsuccessful cases
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‘Moments of crisis are a good opportunity to utilize new alternative technologies.’ were presented. The final message to CIOs was that in moments of crisis companies try to improve their efficiency, and that is a good opportunity for them to utilize new technologies and new alternatives. After a coffee-break for interaction and networking, three start-ups (Fhinck, GetUpCloud and Looqbox) had 10 minutes each to present their services and solutions. After the end of the encounter some CIOs went for a tour through CUBO’s facilities.
How to go ahead with innovation Closing the encounter, there was a round table with members of CIONET’s Advisory Board: Federico Flórez (Ferrovial), Agenor Leão (Natura), Alessandro Leal (Google)
and Roberto Portella (Valor Econômico). There were also three special guests: Ítalo Flammia (Porto Seguro), Guilherme Horn (Accenture Digital), and Rodrigo Baer (Redpoint eVentures). The round table was moderated by Professor Dr. Nicolau Reinhard (FIA). They discussed how to use innovation within business models and technologies and how the relationship between a big company and disrupters - such as start-ups should be. After the round table the audience interacted in a Q&A session.
*CUBO is a co-working space dedicated for start-ups to develop their solutions and services and also to build relations with other companies.
Closing the encounter, there was a round table with members of CIONET’s Advisory Board and three special guests.
Federico Flórez, Chief Information and Innovation Officer at Ferrovial, and Advisory Board President of CIONET Spain
Anderson Thees, Managing Director at Redpoint eVentures
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Meet the winners of the Spanish Digital Leadership Awards 2016
Using technology to reinvent the business
The second edition of the Digital Leadership Awards 2016, organised by CIONET Spain in Madrid, has gathered over 150 technology directors of the major Spanish companies to celebrate the three best digital transformation achievements, which will represent the Spanish technology sector and aim for the European CIO of the Year award at CIOCITY 17.
‘Cooperation is something crucial in this new digital era.’
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The award ceremony was organised jointly by CIONET, The Excellence Net - a network and meeting point for interest groups and professionals that are currently active in the digital society - and ComunicacionesHoy Spanish Publishing Group TPI. They have joint forces to raise more awareness of the main goal of the event: recognise publicly the great labour that Spanish CIOs are doing in order to position their companies in the new digital era.
maturity of the IT environment of the different candidates, the complexity and the impact of the achievements in digital transformation in their businesses, how the attainments of the company resulted in economic savings and incomes, the improvement in business processes and the impact of the achievements on the customer experience. These criteria have been used in the three different award categories Large Enterprise, Medium-sized Enterprise, and Public Sector.
The different projects, presented online in February, were analysed based on parameters such as the complexity and
The jury The jury responsible for the analysis of all candidates and the selection of
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There is a lot to share and learn from the many creative projects. Cristina Álvarez, CIO at Telefónica de España, together with her team, was the winner in the category of Large-sized Enterprise.
the winners is a very high-level and selected group of professionals that has independent criteria and different points of view for this important award. CIONET Spain is proud and thankful for their time and knowledge. They are: Federico Flórez, CIIO of Ferrovial and President of the Advisory Board at CIONET Spain, Nils Fonstad, Research Scientist at MIT CISR, José María de Santiago, Regional Vice President and Executive Partner at Gartner, José Manuel Galdón, CEO of TPI Group, Mona Biegstraaten, President of CIONET Spain and Latam, and Luis Miguel Rosa, General Manager of CIONET Spain, The Excellence Net.
cooperation is something crucial in this new digital era.”
The level of the candidates was very high and “it is truly impressive to hear how the candidates use technology to reinvent their business. They are really creating new digital business models based on technology”, said Mona Biegstraaten at the opening of the event. Luis Miguel Rosa outlined the importance of cooperation between the IT teams and the rest of the business units, which many of the candidates had in common. “This
The winners
From the many candidates CIONET Spain welcomed in February 2016, only 16 passed through the first selection and from those 16 the jury selected three finalists and the three winners that were proudly announced at the special award event last June. Although CIONET had to select three winners, it must be said that all projects were really high level and because of that, it will publish and communicate about their achievements within the CIONET community. There is a lot to share and learn from these kinds of creative projects.
Cristina Álvarez, CIO at Telefónica de España, was the winner in the category of Large-sized Enterprise. Her (and her team’s, of course) achievement has been the development of ‘Movistar + in the cloud’, transforming the way to watch television at home - going from zapping to a complete TV on demand experience. They have achieved the best customer satisfaction level with this added-value service.
Álvarez said that the key factor for success is the consistency and the emotional link within her team. “It is good to celebrate the success cases and not only look at the failures. Sometimes it happens that in this sector we are more known by our failures, but today we are happy to celebrate our efforts. At Telefónica we believe that the emotional link with our work and the team is important to generate successes”. Carlos Garriga, CIO at Sareb Bank, was awarded together with his partners (Joan Planella, CIO at Servihabitat, Santiago Uriel, CIO at Haya, Alberto Bazaga, CIO at Altamira and Jorge García, Solvia’s Operations and Technology Manager) in the category of Medium-sized Enterprise. He also mentioned the importance of unity and trust in instinct within the different teams in which he has worked. The achievement that made them win the award is the development of digital transformation under a new contractual model in Sareb and each of its servicers, including the migration of the financial and real-estate activities towards the five servicers
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Carlos Garriga, CIO at Sareb Bank, was awarded together with his partners (Joan Planella, CIO at Servihabitat, Santiago Uriel, CIO at Haya, Alberto Bazaga, CIO at Altamira and Jorge García, Solvia’s Operations and Technology Manager) in the category of Mediumsized Enterprise.
Alfonso Castro (l.), CIO at AEAT (Spanish public taxes), was awarded in the Public Sector category.
and the integration of processes and systems from Sareb and the servicers. Also, they have improved the accounting, documental, informational and operational management and progressed the commercial showcase. Sareb’s CIO explained that the strong connection between the five teams of the different companies has made them win this award. Alfonso Castro, CIO at AEAT (Spanish public taxes), was awarded in the Public Sector category for improving the electronic administration as an alternative channel in which the citizen can process and manage in an integral way all the procedures related to this institution. At AEAT, they simplified the use of technology and they converged the two online tax systems into one single product called Renta-WEB, which is available for all the contributors to present their income statement in an assisted way. Castro commented on his achievement that assuming risks is part of the job but he emphasized that “it is really
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‘CIONET Spain is proud to share the incredible good digital transformation projects of its members.’ important not to lose the motivation to drive projects forward”. These three winners will represent Spain at the European CIO of the Year 2017 awards. The CIONET awards are taken so seriously and are so strict and powerful, that the Spanish CIO community can be proud of its huge victory in the European CIO of the Year 2016 awards (Amsterdam, June 2016). The Spanish candidates have won two awards this year, in the categories ‘Regional Responsibility’ and ‘Public Sector’. CIONET Spain hopes to have such a success next year again. But most of all it is proud to see and be able to share the incredible good digital transformation projects of its members.
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Every second the CIO is planning to change his job within the next two years.
CIO’s next job The subject of the CIO’s professional career always stirs up emotions. CIONET Poland has carried out the first survey on this issue within the Polish CIONET community. The results of this survey, presented at the ‘CIO’s Next Job’ meeting, gave rise to a heated debate. The survey indicated that half of the IT leaders consider their position at work as stable. However, as much as 71% of CIOs receive at least two interesting job offers yearly and every second, the CIO is planning to change job within two years time. The most appealing incentives include: pay rise, position in the management board or participation in an interesting project.
Maciej Wiśniewski, Executive Coach and Mentor, and founder of LDMC, talked about the psychological aspect of the job change.
What employers look for, first of all, are good leaders with a proven track record of successful achievements. Among indispensable qualities are great communication abilities and practical business skills, as well as experience in IT reorganisation. Networking, speeches at conferences and contacts with headhunters are the factors which help most in building up a strong position on the labour market.
The change challenge The change - whether planned or not - is always a challenge. Maciej Wiśniewski, Executive Coach and
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‘It pays to make bold decisions and set ambitious goals.’ Łukasz Neuman, GoTechnologies; Przemysław Henschke, PZU; Jakub Chabik, Intel; Andrzej Sieradz, Microsoft; and Dawid Pawłowski, LOT (from l. to r.) discussed different possible scenarios for a CIO’s professional career.
Mentor, and founder of LDMC, talked during the meeting about the psychological aspect of the job change. “Stepping out of your comfort zone, the space that you know really well, is a good thing to do because only then you can experience personal growth. You must constantly expand the range of your competencies. The next stage is thinking, than fear and conscious action. Most people give up the idea of changing job because of fear and they return to the starting point. That is why it is worthwhile motivating to make a change.”
representatives of the other side those who look for new employees - took the floor: Sylwia KujawskaFrydrych, Partner at Amberstone, Dorota Serwińska, labour market expert at Executive Search, and Andrzej Borczyk, HR Director at Microsoft. According to them it is necessary to
define anew the CIO’s role, because it has changed a great deal in recent years. The competencies that the employers seek are, above all, consistency, a clear vision of the own career path, a positive outlook on life and an energetic personality.
During the panel ‘Polish ways for CIOs’, Przemysław Henschke (PZU), Łukasz Neuman (GoTechnologies), Andrzej Sieradz (Microsoft), Jakub Chabik (Intel) and Dawid Pawłowski (LOT) discussed different possible scenarios for a CIO’s professional career. They pointed out that it is necessary to look further than the IT sector, by building a network in other areas and learning more about the business. It pays to make bold decisions and set ambitious goals.
Redefining the CIO’s role During the following panel, the
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Krzysztof Frydrychowicz, CIONET; Sylwia Kujawska-Frydrych, Partner at Amberstone; Andrzej Borczyk, HR Director at Microsoft; and Dorota Serwińska, Labour Market Expert at Executive Search (from l. to r.)
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Cybersecurity simulation provides a vital learning curve for organisations.
How vital is cybersecurity training? At the CIONET Belgium event ‘How to optimise risk & security awareness?’, over 40 IT executives gathered to exchange thoughts and best practices about this vital subject. The first part of the meeting was spent on two eye-opening cybersecurity and cyber resilience business simulation games. The aim was to show how a business simulation can create awareness and change attitudes by creating new insights and capturing new behaviours. Security awareness should result in behaviour change to prevent the human factor being the most damaging security risk. The goals of the simulation sessions were to explore: -- What is the role of an executive manager in understanding the issues and of setting strategy and policy? -- What should leaders do to ensure a change in attitude and discipline in behaviour? -- What should leaders do to balance the right investments in cybersecurity and cyber resilience? -- What actions can be taken and initiated in an organisation?
Business simulation game In the game - called Ocean’s 99 - the various stakeholders make use of information systems for planning, managing, transporting and monitoring three world-renowned objects that the Bank of Tokyo is exhibiting. The challenge is to bring the objects to Tokyo - on time, safely and securely. However, there are rumours that Oceans 99, a criminal organisation, wants to steal the objects. The two teams were tasked with designing a security policy, performing a risk assessment and developing a strategy for investing in security countermeasures, all this in a very limited amount of time. This business simulation was both fun and insightful. Even in this intense, time-pressured situation it was interesting to see how an IT-related set of stakeholders and decision makers all
focused on ‘technology solutions’ and not the ‘human factor’. At the end of the game, the attendees were asked to share their key learning points and takeaways of the session. You may share some of them or perhaps others may come as a surprise: -- Identify your ‘crown jewels’ (critical information assets) before writing your security policy. It isn’t all about systems, servers and technology; -- Security policy is a team effort - not only IT - that needs advance preparation; -- Create more security and risk awareness of threats, vulnerabilities and business risk among both the board and employees. People awareness is key, especially with social engineering as the current threat; -- Create a structured approach for risk assessment and a security roadmap for everyone. Organise the business to listen and actively steer the risks while involving business leaders in the risk management process. Work with all key stakeholders to define a risk strategy and prioritise appropriate investments; -- Users are the most vulnerable assets. They need awareness training and control systems (including clear consequences) to mitigate risk; -- You need to balance security with end-user requirements for flexibility; -- Governance is the basis of an information security programme. The board needs to take ownership and the lead in getting approval for communicating, implementing and enforcing security governance. The board needs to recognise the risks their business is facing today and whether these risks are well mitigated or managed; -- Roles and responsibilities are key to any project; -- Technology is not the solution. This article was written by Christian Tijsmans, Founder of Connect The Dotz and Chairman of itSMF Belgium, and Paul Wilkinson, Director and Owner of GamingWorks, at the occasion of the business game they ran at the CIONET Belgium event ‘How to optimise risk & security awareness?’ of March 8th in Diegem.
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How to integrate IoT into company operations to generate business opportunities?
Capitalising on the Internet of Things Over 50 CIONET members joined the CIONET Belgium conference ‘Capitalising on the Internet of Things’, which was held last May. They discussed how companies can integrate IoT within their operations, turning IoT projects into business opportunities. Today, almost every company is looking at the Internet of Things but few businesses have found ways to turn the IoT into a contributor to revenues in their business model. At the conference, around 50% of the audience already had tangible IoT projects running, while the other half were still in the discovery phase. By presenting four tangible case studies from different industries, the event offered the participants an overview of how companies are integrating IoT within their operations and how to turn IoT projects into business opportunities.
Solving mobility issues
Professor Sidharta Gautama from the Department of Telecommunications and Information Processing at Ghent University Johan De Geyter, CEO of Zembro
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Professor Sidharta Gautama from the Department of Telecommunications and Information Processing at Ghent University explained how IoT and Big Data can help to solve mobility issues. The MOVE smart city platform integrates different data sources, and has been used as demonstrator platform in several smart city projects in order to support policy insight on individual mobility behaviour. The platform is applied
in specific ‘living labs’ (e.g. concerning mobility budget, electric company bikes, …), as well as in public mobility campaigns (such as Bike Counting Week Flanders and the Netherlands, M-SCORE, Routecoach). (http://hdl. handle.net/1854/LU-8053897) Gautama heads i-KNOW - the Innovation Centre for Intelligent Information Processing. This academic innovation centre incubates state-ofthe-art research in ICT with multidisciplinary teams of experts in the field of technology (micro-electronics, information processing, knowledge engineering) and domain expertise (environment, transport & mobility, sociology, economy). As a strategic platform, i-KNOW upscales from lab to industrial scale in close partnership with industry, government and society, working towards social and economic valorisation of academic research. The centre provides a user-centric research methodology for sensing, prototyping, validating and refining complex solutions in multiple and evolving real life contexts. i-KNOW has incorporated seven UGent spin-off companies in fields such as mobile mapping, smart home and smart cities. (http://iknow.ugent.be/)
Connecting generations Johan De Geyter, CEO of Zembro, showcased the use of IoT in an intelligent bracelet, which was
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Christine Billaud, Director Business Technology - Connected Solutions at Volvo Construction Equipment. Paul Poelmans, Manager Business Development Innovation at Verhaert Lieven Claeys, Business Consultant Innovation - Internet of Things at Verhaert
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Paul Poelmans, Manager Business Development Innovation at Verhaert, and Lieven Claeys, Business Consultant Innovation - Internet of Things at Verhaert, showed the intrinsic innovation capabilities of IoT. With the myJINI solution, for instance, motorists get insight into their driving behaviour. The solution has a module for trip registration and customers who use the module for avoiding driving through rush hours save for value points. The solution can be considered as Mobility-as-aService (MaaS). Innovation specialist Verhaert wants to put focus on a few crucial points when you start doing innovative IoT projects: -- Understand well the objectives of the projects you start. Where is the added value? -- What is the ecosystem that you can activate around it? -- What is the business model you envisage?
S: 265mm
Christine Billaud, Director Business Technology - Connected Solutions, leads the Business Technology track within the Industrial Internet Strategy & Business Development team at Volvo Construction Equipment (headquarters in Brussels). She gave her perspective on how IoT enables new business models in the usually traditional market of construction equipment, where productivity has not increased since the 1960s. She also talked about Volvo Construction Equipment’s journey to transform into a solution provider leveraging on disruptive technologies such as
Mobility-as-a-Service
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Enabling new business models
IoT, Connectivity and Data Analytics. In addition to improving the quality, the efficiency and the safety of Volvo machines, the use of digital technologies is also enabling Volvo CE to deliver new services to customers, improving their operational processes.
B: 275mm
specially designed for elderly people. The bracelet enables their relatives to keep an eye on them and to monitor their health remotely. This wearable device connects the wearers with other people in a smart, intuitive way. The use of this technology enables individuals to connect and helps generations to take care of each other. De Geyter is a serial innovator with a track record in start-ups and spinoffs, ranging from planning software for television stations to fundamental research in chips development at the high-tech R&D hub imec. The last few years he has been travelling around the world helping companies such as Chanel, LVMH, Smuckers, CA and others to identify the next-wave innovation. His passion is to combine ‘bits and chips’ knowledge with design and usability to create next-generation products.
This article is based on the CIONET Belgium conference ‘Capitalising on the Internet of Things’, which was held on11.May 11th at the Vlerick Business School in Brussels.
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GO_NY
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google.com/gsuite
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CIOs become drivers of change in a global context of digital transformation.
The CIO, creator of value Harvey Nash and KPMG recently unveiled the results of their annual survey amongst CIOs*. This new edition reveals the increasingly more important role of IT leaders in the creation of business value.
“From a position of operations manager, who ensures that the light remains lit, the CIO acquires an increasingly greater role of creator of
business value”, says Jean-François Gueldre, Manager, IT Advisory at KPMG Luxembourg. “He becomes one of the drivers of change in a global context of digital transformation. CIOs are getting closer to the CEO, while in the past their superior was more generally the CFO or COO. The CIO is also increasingly more present in the Executive Committees of companies.” Actually, the study found that 34% of the CIOs now report directly to the CEO and that 57% of them participate in the board. “This fast growing rate in (38% in 2005 and 42% in 2010) is indicative of the greater expectations of the business towards the IT leaders”, explains Vincent Koller, Partner of the Advisory Department Advisory at KPMG. A large
34%
67%
Everywhere around the world, the role of the CIO is changing. That is the main conclusion of the latest edition of the CIO Survey, conducted for the 18th consecutive year by Harvey Nash Group and KPMG. 3,352 CIOs from 82 countries responded to the questionnaire which was sent to them online by the two co-authors of the study. This important sample makes undoubtedly of this study one of the most legitimate of its kind. In Luxembourg, some 20 CIOs agreed to answer the questions.
Change engine
34+66
34% of the CIOs now report directly to the CEO and 57% of them participate in the board.
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67+33
67% of the CIOs hope to see the strategic dimension of their role strengthening in 2016.
majority (67%) of the CIOs hope to see the strategic dimension of their role strengthening in 2016. “The priorities are changing. Today, four out of ten CIOs say they spend one day a week outside the IT Department, in order to get closer to the business”, explains Geoffroy Gailly, Partner of KPMG Luxembourg. The study reveals that the strengthening of the commitment with the client is an increasingly more important priority. However, it should be noted that in Luxembourg, for 84% of the surveyed CIOs, the main priority remains operational efficiency.
Chief Digital Officer As IT projects likely to create value are regarded today with growing interest, the digital transformation of the business is an important challenge which is not necessarily simple to grasp. According to the study, 35% of the companies have adopted a largely integrated digital strategy (against 27% last year). “We note that one organisation out of five employs a Chief Digital Officer (CDO), or 2% more than in the previous survey”, explains Jérôme Bernard, Associate Partner of KPMG Luxembourg. In the Grand Duchy, 24% of the
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surveyed participants declare having implemented a CDO within their organisation to better meet the challenges of the business transformation. Luxembourg stands out positively to other countries considering the resources made available to CIOs. “60% of the Luxembourgish CIOs have clearly defined budgets for IT challenges, and these budgets are increasing. While, considering the responses of all CIOs, only 31% report having a clear budget”, adds Jérôme Bernard.
‘Luxembourg’s market fails to provide sufficiently relevant or interesting cloud offers.’ Slow cloud adoption On a technological level, however, the study reveals that Luxembourg is barely moving to the cloud. While 60% of the planet’s CIOs plan investments in the cloud, in Luxembourg this rate is only 33%. “For once, we are lagging behind. Only Greece does less well than Luxembourg”, states Jean-François Gueldre. Obviously, the requirements of the regulator of the financial sector constitutes a brake on the adoption of the cloud by the Luxembourg actors. “Today, the Luxembourg market, considering its size, fails to provide sufficiently relevant or interesting cloud offers. And the CSSF requirements prevent players access to international offers. “Yet, the bankers are looking for offers, but the Luxembourg market is not mature enough to meet their needs”, says Vincent Koller. “On the
other hand, the players expect more clarity from the CSSF as to the possibilities of using infrastructure or shared services in the cloud. In the absence of a sufficiently clear attitude they prefer to stick to the principle of precaution,” says Jean-François Gueldre. Overall, the study found that the main obstacles to the adoption of the cloud are fears related to data loss and risk in data privacy. “Cloud still has to convince, even though the IT world seems to believe in the opportunities it presents,” says Jean-François Gueldre. According to experts from KPMG, the Luxembourg actors should also take advantage of the possibilities offered by the cloud for activities which don’t involve data processing, such as the use of resources for test and development missions. Big Data is another challenge identified by the CIOs. The main identified difficulty relates to the available talent. 39% of respondents say they struggle to find skills in this area. Another interesting indicator of this study relates to cybersecurity. “Facing a strongly evolving threat, CIOs are quite pessimistic about the risks involved. Only 22% of respondents say they are very confident about the protection offered by their systems to a major IT threat”, explains Geoffroy Gailly. However, according to the results, Luxembourg is not a bad student. 21% of the surveyed Luxembourg actors had to report a major incident during the previous two years. The European average European is 29%.
Slow wage development If one considers career changes of the Luxembourgish CIOs, only 7% have changed employer in the last
60+40 60%
While 60% of the planet’s CIOs plan investments in the cloud, in Luxembourg this rate is only 33%. year, whereas the European average is situated at 15% (and 20% in Germany). Moreover, only 17% of the Luxembourgish CIOs have benefited from a salary increase during the last year of activity. In this respect, Luxembourg is also behind (the average is 34%). “One could find this surprising, as there is a tendency to think that we are in a market shortage”, says Vincent Koller. “Maybe Luxembourg needs more technicians and developers than managers. But that would overlook the many challenges of the transformation.” Finally, it is interesting to note that there are far fewer female staff in IT management in Luxembourg than in the rest of the world. Indeed, according to the CIOs, the number of women present at the leadership level amounts to 5% in Luxembourg. This rate is 8% in Europe and 11% on a global scale. This article was written by Sébastien Lambotte for ITnation Mag, July 2016.
*Find out more about: - the survey: www.hnkpmgciosurvey.com - the KPMG services related to this survey: www.kpmginfo.com/ cioagenda/
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CIONET Germany actively supports CIOs on their journey to become a CIO+.
Added value for digital leaders Every year CIONET Germany asks its members to share the topics that are really keeping them busy, both during the day and sometimes at night. Quite often, these topics are different from the priorities published in media and research publications on which CIOs should be focusing. In the CIONET Germany annual member survey for 2016, the German members identified three major focus areas: -- The impact of technology: ‘Cyber Security and Data Protection’
have been rated as their biggest technology-driven challenge. ‘Management of legacy infrastructure vs disruptive innovations’ came second and the ‘Business value of connections’ - combining data,
In the CIONET Germany annual member survey for 2016, the members identified three major focus areas: The impact of technology, Engaging with the CIO Ecosystem, and Professional Development for the CIO+.
Impact of Technology
CIO+ CIO+ Professional Development
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The CIO Ecosystem
things and people/organisations – was rated third; -- Engaging with the CIO Ecosystem: Reaching out beyond the traditional internal client, CIOs are increasingly (interested in) interacting with various stakeholder groups inside and outside their organisation. Their top three wish list shows CEOs, CFOs and Vendor Senior Management as their preferred partner for dialogue; -- Professional Development for the CIO+: skills and methods to establish the CIO as key digital influencer received the most votes, with the following top three topics: 1. P repare the organisation for the transformation; 2. S upport of business decision making; and 3. Talent management to get, foster and keep digital talents both in IT and in the rest of the organisation. This valuable input from its members provided CIONET Germany with a roadmap for its activities in 2016 and most likely beyond. The following activities and events are a direct result of this.
Preparing for the digital transformation By combining the three focus areas, since March 2016 CIONET Germany is inviting CIOs from its CIONET community, as well as their peers from HR, Marketing and other
THE NEXT CIO CIONET Germany
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Top 10 key topics by relevance
The TOP 10 of the German CIONET Community Business Value of Connections Support Business Decision Making Preparing the Organisation for Transformation
875= 833= 818= 818= 800= 714= 692= 636= 600= 600= 85,7%
83,3% 81,8% 81,8%
in-house transformation executives to jointly discuss the challenges of preparing the organisation for the digital transformation, and jointly develop approaches on how to resolve them. In small mixed workgroups, the teams address topics such as Two-speed IT, Talent Management, Digital Leadership, as well as local legal and social factors which have a heavy impact on the execution of organisational change activities.
CIONET Peer Group Service The new CIONET Peer Group Service - a personal and professional development tool - has now also been launched in Germany. With this major initiative CIONET Germany supports its members to further develop themselves, both personally as well as professionally. The applied concept has been successfully in use internationally for several years and is an ideal platform to raise and discuss CIO
100
90
80
70
60,0%
0
How to improve Customer Experience & Engagement
60,0%
60
Future of the IT Department
63,6%
50
Innovation through design thinking methods
69,2%
40
Business Model Innovation
71,4%
30
Cybersecurity & Data Protection
80,0%
20
Implementing a dual-speed IT
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Managing (digital) Talents
leadership issues for which CIOs rarely find counterparts internally and externally. The biggest benefit of the peer group program is that advice comes from peers who have been in these situations and know exactly what works and what doesn’t.
Enable CIOs to adopt technology Returning from the highly successful CIOCITY conference in Amsterdam in June 2016, a group of CIOs approached CIONET Germany. They asked for a CIONET event enabling them to get in-depth understanding of the blockchain technology as well as presenting them use cases of blockchain. Based on the input, CIONET Germany has jointly with MaibornWolff, our content partner for this event, developed a four hour workshop which uses gamification elements to provide insights into blockchain and cryptography. Start-ups are invited to the event to show their
When using relevance as the measure for prioritising the key topics of the CIONET Germany members, the following top 10 came out of the survey. It shows that the German CIOs are increasingly focusing on topics with high business impact and high importance for the successful digital transformation of their organisations. It is also an important message to those who doubt that CIOs are willing to play an important role in this transformation. If not done yet, CIONET Germany recommends that CEOs (and other board members) invite their CIOs to participate more actively in their business transformation and innovation activities, and enable them to become a key influencer in this important journey.
solutions based on this technology and, finally, the workshop leaves room for the participants to jointly develop new blockchain solutions, which their organisations could use. CIONET Germany is looking forward to engage with its existing and future members to jointly develop addedvalue solutions which help them solve their major challenges and be more successful as a digital leader.
Join us for ‘Blockchain for CIOs’ - October 20th, 2016 in Munich CIONET Germany invites German speaking CIOs to join its exclusive ‘Blockchain for CIOs’ event on October 20th in Munich. More information as well as registration details can be found at www.blockchainforcios.de
CIONET Germany THE NEXT CIO
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Enforced CIO leadership drives successful digitalisation strategies.
Earning respect from the board What are the leadership and management requirements for successful digitalisation strategies? Interview with Morten Findsen Schou, Head of IT development at PFA Pension A/S, by Kristine Koed, partner at CIONET Denmark. Kristine Koed: “Most companies and institutions are continuously challenged by globalisation, disruption, technology, SoMe (social media), efficiency and productivity. Moreover, organisations are typically looking for high job satisfaction. Not to mention the company shareholders who are asking for better return on investment. Not all of this, but a lot of it, has to do with providing efficient and flexible IT solutions and services. So, Morten as a senior IT manager in a financial company, what is your
view on the IT executive’s role in this maze of technology and business challenges?” Morten Findsen Schou: “Obviously I and my fellow IT executives are up to a major shift in work and management focus. Priorities have shifted dramatically the last two to three years. What I see is that the ongoing IT transformation is about reconfiguration of priorities. Today you can’t perform successfully unless your IT operations and projects are stable, high quality, budget controlled and
Morten Findsen Schou: “Put a face on IT so that we are considered as an open and know ledgeable resource for the business.”
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business fit. My personal view is that a stable high quality IT base earns you the respect and room for influence in the board of directors. If you are not there today, my advice is to get there very soon.” Koed: “The IT executive challenge is universal, present and requires action. Do you have guidence and lessons learnt for IT managers who want to make a change?” Findsen Schou: “There is no universal key to how to keep a positive IT reputation. But, as said before, basic IT stability - stable IT operations, fulfilment of agreed SLA’s and KPI’s, etc. - is mandatory. If not there yet, my advice would be to initiate some kind of transformation programme fixing the broken. Influence in the board is directly related to trust and confidence in the IT executive’s ability to manage IT successfully.”
‘Influence in the board is directly related to trust and confidence in the IT executive’s ability to manage IT successfully.’
THE NEXT CIO CIONET Denmark
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Morten Findsen Schou, Head of IT development at PFA Pension A/S (l.) and Kristine Koed, partner at CIONET Denmark (r.).
Resilience
surprisingly efficient, I must admit.”
“On top of this, my management team and myself work with resilience i.e. our ability to absorb changes and/or avoid damage and hereby enable high quality IT. My view is that advanced IT infrastructure and software have to be designed, planned and developed being resilient, flexible, process driven and 24/7. In essence our objectives for IT boil down to six objectives: -- Our IT solutions are independent of the IT infrastructure and vice versa; -- The IT architecture is open and service enabled; -- Software solutions are developed, adopted, deployed, released automatically and frequently (within days); -- We actively support PFA’s strategic needs for new IT functionality; -- We ensure compliance and security with global standards; -- We look beyond the fence for solutions and technology of the future.
Koed: “Back to what we discussed earlier, how do you earn the respect and room for influence in the company? What is the formula?” Findsen Schou: “Besides my day-to-day operational management tasks, I have copied a work approach inspired by the Aboriginals, called ‘walkabouts’ - making journeys in the company to learn from, enlighten and inspire my non-IT business colleagues. As an IT executive I must be much more visible and present in the business space. Put a face on IT so that we are considered as an open and knowledgeable resource for the business. These grand tours provide me with valuable insights but also with the network among my internal costumers. And by the way, the quality of the discussions you can have around the coffee machines must never be underestimated - many good things derive form these talks.”
Koed: “The hype around digitalisation and disruption seems to expose IT management in a way never seen before. What is your thinking?” Findsen Schou: “I think that we need to keep things apart as digitalisation is the shift of manual processes towards fully automated digital work processes. Whereas disruption is about business models, attacking old and new businesses structures. It leads to complete new ways of doing business and is leveraged by the massive use of IT. Digitalisation means a high degree of process automation capabilities in the core, the back office and the front office processes. The business priority of PFA in 2020 is to have all internal processes automated and self-service aligned. The net effect is a huge efficiency and quality enhancement, but also more agility in the PFA end-customer support and service. Back to disruption. PFA is not in an airbnb type of disruption environment. We see and use disruption internally as a tool for exposing IT, work habits and processes. It drives habits and processes out of the comfort zones, in order to simplify work processes and differentiate new ones. This works
Morten Findsen Schou
Morten Findsen Schou is Head of IT development at PFA Pension A/S. Morten is M. sc. IT, Communication and Organisation. He has been in the IT industry since 2003, working in IT, process and workflow optimisation, and general management. Morten is a person looking for challenges in his work life. His professional career includes the Danish and European Golf Championships. PFA Pension A/S is an independent Danish pension company serving 1.1 million customers. It has more than DKK 500 billion under management. The company has 1,300 employees situated in Copenhagen.
CIONET Denmark THE NEXT CIO
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C W
The IT department lays the foundations for the company of the future.
Digital innovation in the construction industry The construction business must address global megatrends like urbanisation, sustainability or mobility, as well as new technologies and innovations to foster efficiency and to fulfill demanding client requirements. At Skanska, IT closely cooperates with the business to provide innovative solutions and drive digital transformation. New trends and digitalisation become reality even in such a conservative sector as construction is. At Skanska we already make use of digital technologies on the construction sites, in our offices and for better cooperation with our clients and partners. Among other things, there are Building Information Management platforms which use digital models to integrate business processes from design, operations and maintenance, making use of augmented and virtual reality, drones, automation, robotics and BI. Our company is also focusing on people development and knowledge sharing and that is supported by company-wide IT platforms as well.
Modern digital leader Nowadays, to be a digital leader it is not enough to have professional expertise or to understand the business. You also need to have passion and a high level of emotional intelligence. It is not only about the dialogue with the business, but also about being brave, inspiring, agile, and willing to compromise in
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order to achieve long-term goals. First of all, it is necessary to ensure the desired quality of the basic IT services in order to be able to move IT to the next level. Leadership is not based on one person, it is a matter of creating and developing outperforming teams and new competences needed to embrace the coming digital age. It is important to create a positive environment with bottom-up mechanisms to make people feel that they take part in the development of novelties. One of the most important challenges
for coming digital challenges. We have a value here, called ‘Be Better Together’. In our decentralised integrated company, IT becomes increasingly more integrated and - thanks to that - more efficient, stronger and business-aligned.
Security and innovation Growing by acquisitions worldwide, having both local as well as global IT solutions, such as integrated WANs, the process of ensuring the desired level of security is a journey and a challenge. The critical factor is to carry out business impact analyses covering both information and IT security aspects, taking advantage of the lessons learned and observe what is going on outside. All projects and maintenance should contain security business cases. And of course testing, testing… and improving.
T I c c r a c i y w T
‘You need to have passion and a high level of emotional intelligence.’ which I face right now is to lead a global digital IT strategy - aiming to harmonize IT processes and solutions worldwide, and to define the IT role in the digital transformation process, as well as to make the company ready
This article was written by Jarosław Urbańczyk, Senior Vice President IT and CIO at Skanska AB.
THE NEXT CIO CIONET Poland
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Generated at:
The vision of the CIO+ ITALIA AWARD 2016 winners on the role and challenges of IT
Digital transformation requires agility Digital transformation is the only way to respond effectively to market challenges. IT must be able to transform the internal organisation and to implement innovative solutions. Agility has become an essential feature in delivering these new solutions. The winners of the CIO+ ITALIA AWARD 2016 consider the role of IT in an organisation as strategic. One of the major challenges of IT is to lead the digital transformation. This requires agility, which can be translated as flexibility and speed,
Strategic role of IT in the organisation
Carlo Bozzoli, Global CIO at Enel, winner of the ‘CIO+ Improvement Officer’ award “Technology covers the strategic task of supporting companies to promote
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a culture of innovation, to make them more agile and more competitive. There is only one message: ‘Be digital’. We should use technology to unleash employees’ creativity, to inspire customers, to identify opportunities through data and to rethink our business models in that fashion. Today, becoming digital is an imperative for the business and every company needs to start a digital transformation process, in which technologies are the engine of innovation and growth. Digital Transformation is the only way to respond effectively to market challenges. To transform has become crucial, and to do that we need to focus on technologies that ensure the right time-to -market and to establish an innovation plan, a kind of corporate Digital Agenda.”
CIO VISION CIONET Italy
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IT challenges
Domenico di Francescantonio, CIO at Fater Group, winner of the ‘CIO+ Innovation Officer’ award “IT is facing two major challenges. The first is connected with the ability to maintain a high level of service at the best market costs, offering the flexibility and security of the latest available technologies. IT must be able to transform the internal organisation, thus, it should not only invest in commodities management but increasingly more in research and in the implementation of innovative systems. The second challenge is to get the company used to thinking digital. To do this, the way we communicate is crucial: we need to be able to communicate with colleagues, customers and suppliers by offering simple, smart, fast and effective solutions. Lastly, if IT will be able to measure digital readiness and the concrete
benefits resulting from this revolution, we can hope to increase investments in this regard. Thus, especially for productivity and digital marketing projects, it is essential to know how to identify the right measurements in the corporate scorecard.”
Balancing IT efficiency and IT innovation
agility, which in this sense we can translate as flexibility and speed, has become an essential feature in delivering these solutions. We believe that the adoption of such an operating model pushes the company even more towards a mindset change, introducing digital culture not only to the customer, but also in internal processes and in the relationships with partners and suppliers.”
CIO+ ITALIA AWARD 2016 Mario Martinelli, CIO at Sisal, winner of the ‘CIO+ Efficiency Officer’ award “In our company we are acting in several ways in order to structure ourselves adequately to better deal with the new digital challenges. In particular, we have defined an operating model based on Competence Centers with the aim to enhance the internal skills for technologies that we deem critical. At the same time, we are experimenting a trial-and-error agile approach to the new solutions in order to be quick in field-testing and to improve time to market. The
The aim of the CIO+ ITALIA AWARD is to promote the excellence of Chief Information Officers of top Italian companies. The award was instigated in 2010 by CIONET Italy. This well-known award is dedicated to Italian CIOs of large and medium organisations in three categories: ‘CIO+ Efficiency Officer’, ‘CIO+ Improvement Officer’, and ‘CIO+ Innovation Officer’. The CIO+ ITALIA AWARD 2016 ceremony took place in Milan on April 21th.
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Digital transformation in companies is determining the new business strategies.
The CDO, leader of digital business transformation Innovation experts talk about the urgency of transforming as much possible in companies or entities, because they have to be prepared to attend to the digital customer. This is a reality that cannot be ignored and companies that are not connected to this reality will have problems to survive.
Carlos Bolivar is Director Business Transformation at Bancolombia Group and he is also member of the CIONET Colombia Advisory Board. He has been speaker in several meetings in Colombia and other countries in Latin America. His 25 years experience has led him to become an important leader in digital transformation in Colombia. He tells about what digital transformation is, who are involved and what is the key to achieve digital transformation inside a company.
Digital transformation “We see digital transformation as a way to improve people’s lifes through a radical change in the businesses, intensively supported by technology”, says Carlos Bolivar. It is important to mention that in April 2016, the Administrative Science, Technology and Innovation Department
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of the Colombian Government (COLCIENCIAS), recognised the Bancolombia Group as a ‘highly innovate’ company, because of the systematic generation of innovation processes. But why is it important that entities and companies make a bet for digital transformation? “It is imperative to respond in a timely manner to the business changes, to the changing customer needs, and to the technology advances that enable us to be connected anytime. With digital transformation we make it possible to deliver solutions more easily, quickly and adjusted to the customer needs. At the same time we make an organisation more efficient. In the near future, the digital media will be the most important communication channel between people and companies. In fact, it is already the main channel in many industries. Companies that are not connected to this reality will be in trouble to survive.”
CIO VISION CIONET Colombia
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‘It is key that the executive team is convinced of the importance of the transformation.’ The main key What is the main key that companies must take into account to achieve a digital business transformation? “It is key that the executive team is convinced of the importance of the transformation, taking a strategic decision and assuring the means to execute it in the medium and long term. Once the north has been set, it should evaluate the integral transformation concept and understand all processes as they touch the external customers as well as the internal customers inside the company”.
Who are in charge? Who are in charge of implementing digital transformation inside a company? “The transformation is an integral concern of the whole organisation, but especially the business area must lead this transformation, supported by the technology and processes areas. Once the transformation
Future changes won’t be gradual as in the past, but faster and sometimes unpredictable.
process starts, it is important to accompany during the process the people in the organisation as well as the customer. This assures the adoption. However, this process should not be so intensive because the digital transformation must find natural ways to do things, which implies that it must be simple. It is understood that digital innovation must be built in an integral way together with all the people in the company, but the leadership of the business and technology areas is indispensable because they are the main basis of digital business transformation inside the company.”
The future “Companies around the world must go forward to a digital business transformation”, explains the leader of digital transformation. “Our country has quickly adopted the new technologies and we have only just seen a little bit of the changes that will come in the future. The increasing quantity of devices, the increase of the communications speed and the adoption of technology use in all sectors, make it important for the majority of the industries to be digitally connected. The changes that will come won’t be gradual as in the past, they will be faster and some of them unpredictable. Finally, digital transformation is the tool to win new markets and continue growing in our country.” This article is based on an interview with Carlos Bolivar in June 2016, in Colombia.
Carlos Bolivar, Director Business Transformation at Bancolombia Group and member of the CIONET Colombia Advisory Board
CIONET Colombia CIO VISION
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We seek a balance between the simplicity of a solution from an end-user’s point of view and the security. .
The balance between innovation and security Adam Marciniak’s greatest success is the change of the development strategy at PKO Bank Polski, by focusing on the end-user experience improvement and by enriching PKO’s offer for remote customer service channels. Inspiration Banking is one of the most dynamically growing sectors. Technology is vital for its development, offering, for example, mobile solutions, big data analysis systems or CRM, and building a customised omnichannel offer. We get inspiration from a dialogue with the business, looking together for ways to satisfy changing consumer demands.
Security The banking sector is one of those that are attacked most often. The necessity to follow the development of new technologies and issues related to IT security makes us work constantly and proactively on new solutions and protection measures. Security and customer satisfaction are linked with each other. We seek a balance between the simplicity of a solution from an end-user’s point of view and security. We work on an ongoing basis with the security department, trying to identify current trends and security requirements and to find
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adequate solutions in order to minimise the risk of fraud (i.e. biometrics). Security is one of the most important challenges for building the banks’ business cohesion for future.
- that are authorised to have access to accounts and transactions on behalf of their clients - will also require new effective solutions. Otherwise, by providing access to the Application Programming Interface, we would lose the exclusiveness of the relationship between the bank and its client. Another challenge is data analytics the implementation of the right algorithms and the skilful use of data for building a proper client profile. Finally, there is the challenge of deficiency of skilled big data specialists.
Challenges The pace of development is getting faster and the time to market is getting shorter. Thus, the development areas and teams must be adjusted and must cooperate with the business so that
In dialogue with the business, we look for ways to satisfy changing consumer demands.’ the changes get implemented as fast as possible. It is necessary to work out a straight development path. On the other hand, stability and security in the functioning system must be ensured. New regulations, according to which banks will be obliged to make accessible their interfaces to business entities
This article was written by Adam Marciniak, Director of the Application Development and Maintenance Division at PKO Bank Polski.
CIO VISION CIONET POLAND
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What are the roles the Digital CIO has to play to become the key player of change?
The four missions of the CIO, the disruption leader
Digital transformation is an opportunity for the CIO to establish himself amongst the board members, provided he leads the disruption. The opportunity is here and now.
35+65 65%
In companies showing a strong commitment to digital, 65% of the CIOs are involved in the creation of new products and services
Last Spring, CIONET France organised in the Google premises in Paris a seminar dedicated to disruption. The event was the opportunity to bring together key decision makers, experts in change management, industry leaders and innovative, disruptive start-ups. One of the findings of the seminar was that the digital transformation of companies has started. It accelerates around Innovation, Data and Markets. The challenges for the CIO are multiple: -- Some departments’ practices adopting technology solutions in shadow-IT mode; -- Lack of necessary talents making it necessary to select innovative companies to support projects; -- Value improvement of data rather than its simple management.
All this requires the CIO to establish a strategic dynamic to accompany the growth of the company. In fact, the time has never been better for the CIOs, provided of course they have widely embraced the technology. Thus, in companies showing a strong commitment to digital, 65% of digital CIOs are involved in creating new products and services, and 53% are member of the Executive Committee (against an average of 17% for their peers).
Four key areas Nowadays, it is difficult to find a company or an industry in which technologies do not have a high profile. It is up to the CIO to grasp the opportunity offered to him to lead the way to digital processing and disruption. Here are four key areas where the CIO will be able to play the disruption card:
CIONET France CIO VISION
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1. Leading the Digital Strategy. The digital transformation goes well beyond automating manual processes and information flows. For the CIO, it is an opportunity to make the information more productive for internal and external clients, and to use the data as a product. Technology should help to generate new revenue for the company, and the CIO should be the trigger of this dynamic; 2. Migrating to the cloud. The digital business strategy starts with cuts in commoditised IT services and infrastructure spending. For CIOs, this usually results in a shift of the information system and business applications to the cloud, and a migration to new applications in SaaS mode, billed low and on a consumption base. The IT department as well as the whole company have there a gain in agility and elasticity; 3. C larifying and accelerating. The competitive position of the company - as well as the one of the CIO facing shadow IT - demands high speed changes. It is certainly difficult, but we must remember that change must be a core competency of IT. Slow companies will quickly find themselves behind their more agile competitors or
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those who enter the markets by seeking a paradigm shift. But change must also lead to clarity, starting with the business model. The CIO must have a clear vision on the company’s objectives and outcomes to define behaviours that are necessary to reach them. Implementing a rapid digital transformation will require the CIOs to equip themselves in areas such as measurement and communication. 4. Rejuvenating the teams. As mentioned above, talent management is a key issue for the CIO. But is the question not rather about how to inspire the teams to use their talents, and how to set up a
generational transition of aging experts to younger ones? Indeed, the so-called Millennials represent a real opportunity for the CIO. They are digital natives, seeking for change, and they have a bias for transparency.
If the tools mentioned above provide more fluidity in work, bridge the gap of experience between generations, and allow young people to engage, the CIO will realise rapid growth and the company will have to follow. This article was written by Yves Grandmontagne, Editor-in chief at IT Social, media partner of CIONET France.
Four key areas where the CIO will be able to play the disruption card Leading the Digital Strategy Migrating to the cloud Clarifying and accelerating Rejuvenating the teams
CIO VISION CIONET France
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IT-infrastructure optimisation leads to increased technological flexibility.
Enabling digital transformation EDP has acknowledged its ambition to become a Digital Utility Company in its Strategy 2020. Already recognised as one of the most efficient utility companies in the Iberian Peninsula, EDP boasts an efficient IT infrastructure, which facilitates its business by allowing for high levels of integration and automation. Using digital technologies boosted the business and enabled stronger customer relationships. EDP’s digital transformation has already become a reality, witnessed both by its customers - who benefit from a series of features, such as electronic invoicing, smart metering, management of teams working in the field, the customer app and the mobile app for manual readings - and by its employees - who benefit from features such as the data lake and cloudbased collaborative environments. Crucial to EDP’s digitisation process, this transformation is being carried
out according to a consistent, multidisciplinary plan, designed for the purpose of creating a secure, efficient, sustainable, flexible and resilient IT infrastructure. This plan, of which the implementation started in 2010, is expected to be completed by 2018. EDP’s digital transformation is based on an infrastructure-oriented strategy of which the main goals are the acquisition of skills by the company’s employees, improved service quality, increased technological flexibility (multi-sourcing) and cost reduction.
Three phases The transformation process includes three phases: -- Phase I: ITC architecture simplification and implementation of changes to service management models; -- Phase II: Stabilisation - increasing the ICT architecture robustness and source diversification, namely the inclusion of cloud sources; -- Phase III: Modernisation - progressive automation and introduction
of analytics into infrastructure management. Each of the phases listed above comprises a wide range of interrelated projects, implemented over the last five years, which resulted in a complete change in the group’s ICT infrastructure. On its turn, this transformation resulted in the following: -- Reduced operating costs; -- Improved service quality; -- Increased integration of company operations carried out in different geographical areas; -- Ability to respond to new strategic challenges; -- Acquisition of the necessary skills required in connection with the ongoing digitisation process. As one of the world’s leading utility companies in what concerns efficiency ratios, EDP has created the necessary conditions to be recognised as a Digital Transformer, by using digital technologies to boost its business and build stronger relationships with its customers.
This article was written by Vergílio Rocha, IT Department Director at EDP Group.
CIONET Portugal CIO VISION
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In five years, digital innovation will bring together people, processes and technology.
Redefining the customer journey with digital business By 2020, business will be digital. According to a Forrester Research report, 46 percent of executives surveyed believe that in less than five years digital will have an impact on more than half of their sales.* This digital transformation is offering companies unprecedented ways to do business. What do these digital opportunities - or customer dialogues - look like? “First, they help to think of them as a momentary event that requires a nearly instantaneous reaction. The companies that can take advantage of such opportunities will effectively use digital applications to address customer needs. Changes in customer behavior, new buying patterns, and new demands combined with empowered consumers are truly driving a new digital economy. Companies that are able to make the jump to digitisation and sustain relevant connection with their customer will thrive in this new economy.
‘Enabling companies to make the jump to digitisation explains the race to develop new applications.’
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Many such organisations are finding themselves in something resembling a relay race. The challenge is coordinating each member of the relay team to run in the right direction and to smoothly hand over the baton to the next teammate. But what is happening is that digital applications are being developed without a plan that takes their full lifecycle into consideration. Companies are discovering that their applications do not work on all devices, or that they do not integrate with legacy back-end systems, or that fixing bugs creates new issues to solve. All of this is leaving companies unprepared to compete in the digital economy.
Deliver fast, change faster Businesses seeking to benefit through digital opportunities must not only develop innovative digital applications that efficiently solve real problems, they also need equally innovative and
scalable methods for delivering these applications. Today, CIOs must adapt software to their organisation instead of adapting their organisation to the software. Innovation comes through fast app delivery, an agile and iterative development approach, and continuous, instant delivery of changes. CIOs looking to instigate or accelerate their digital transformation should begin by reinventing their customer journey towards the new digital model, prototype a real-life customer process, and adopt technology that will allow for rapid delivery and change.
This article was written by Paulo Rosado, Founder and CEO of OutSystems.
www.outsystems.com * The State Of Digital Business, 2015 To 2020, Forrester Research, November 2015
CIO VISION CIONET Potugal
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