How does the cio contrinute to other CxOs?

Galit Fein and Einat Shimoni’s work/ Copyright@2014
Do not remove source or attribution from any slide, graph or portion of graph
/
How does the CIO contribute to
other CxOs?
Galit Fein & Einat Shimoni
EVP and senior analysts
STKI “IT Knowledge Integrators”
galit@stki.info einat@stki.info

Remember our new CIO? Everyone’s
IT

Board meeting: What do LoBs need from IT today?
CIO
CEO
COO
CCO
Employees CustomersTalent mng
3
InfrastructureDC
Today’s IT solutions & methodologies
are simply not enough
IT needs to reorganize itself
in the New World
Everyone’s
IT

IT’s clients are now “everyone”
Everyone's IT
From IT Monarchy
to
Every business is
tech based business
every company is
SW company.
Demands are coming
from every corner of
the organization
4
Everyone’s
IT

<60% of IT budgets going to ongoing support, the
CIO is forced to defer new initiatives
IT + LOB
18%
Only LOB
7%
Only IT
75%
Capex
38%
Opex
62%
Even IT budgets are Moving into the LOBs
• By 2017 the CMO will spend more
on IT than the CIO
• 30% of marketing technology &
services is already bought by CMO
(Gartner)
STKI 2014 5
Israeli IT budget distribution
Who is responsible
for IT budget?

STKI 2014
And procurement is shifting to a centralized unit
Pros Cons
Increased concentration of
procurement expertise
Central purchasing staff may
not be expert in buying
various types of items
Transparency &
measurability of procurement
procedures
Loss of IT control
Cost reduction through
economies of scale
Delay in receiving the
materials
Avoidance of duplication costs Problem when specific
requirement needed
‫מה‬ ‫חלק‬-IT
59%
‫מרכש‬ ‫חלק‬
‫מרכזי‬
‫בארגון‬
41%
IT procurement in Israel 2014
It’s all about transparency
6
Everyone’s
IT

Organizational expenditure on technology increasing!
21%
13%
28%
19%
19%
‫בין‬ ‫לרדת‬5%‫ל‬15%
‫עד‬ ‫לרדת‬5%
‫שינוי‬ ‫ללא‬ ‫להישאר‬
‫עד‬ ‫לעלות‬5%
‫בין‬ ‫לעלות‬5%‫ל‬15%
‫תקציב‬IT‫לשנת‬2014‫צפוי‬ ‫בארגונך‬:
20%
66%
technology
IT
Source: STKI 2014
Everyone’s
IT
7

Even if money
is not in short
supply,
resources are
New
technologyMore LOBs buy cloud-based services
Cost rather
than new
revenue
8
IT Obstacles
in a New
World
When CIO is focused
on old tasks, CXOs
begin to develop
their own systems
and IT capabilities
Everyone’s
IT

CIO role under growing tension between two implacable forces
1) maintaining infrastructure
and keeping existing IT systems
running smoothly
2) digitizing and applying
the latest technology innovations
to the organization
9
Israela Israeli
VP Tech
Everyone’s
IT

Two different words – two different approaches
Invest
in new
systems
Reduce
Operating
Expenses
Long development and
deployment cycles
Touch people
In-moment decisions
Personalized & in-context
Social and analytics driven
Short & rapid releases
10
IT has to adapt to rapid changes of
new technologies, otherwise SoE
are the first ones to be outsourced!

Don’t let LoBs bypass IT!
Most ITOs are still learning how to operate like a
service provider:
• IT staff built around technical capabilities,
and not deeply involved in clients’ business
• IT’s standards and regulatory compliance
don’t let them move fast (IT commando)
• If IT sees LOBs as real customers, they
should have a choice regarding how they obtain IT
services
11
Who is in charge of
internal customer experience?
HD experience, SLA, system access,
UX, rather than system availability
Everyone’s
IT

One tactic is “BRM” - Internal Customers Experience Mngt
• Because LoBs does not understand what can and cannot
be done with IT, CIOs create BRM role
• BRM brings a new skill set to the rest of the IT function:
 Two-way communication
 Marketing and IT technology sales representation
 Innovation
12
Business Relationship Officer :
• someone who communicate well
• respected by business and
technology executives
• report to IT but have a dotted line
to LOBs
BRM

Business-IT relationship has to be managed differently
CIO
CEO
COO
CCO
BRM
BRM is a voice
of internal customers
13
BRM has 2roles:
represent the IT (OCIO) and ALSO
represent internal customers needs.
Is this model here to stay???
BRM
BRM = OCIO ?
N

CMO and CCO are becoming very important customers of IT
What do they need?
CIO
CEO
COO
CCO
BRM
Omni-Channel
Real time campaigns
New advanced analytics
Customer Experience management
Amazonification
Social
Mobile
Customers
Ecommerce 14
CMO/CCO

CxOs are asking me to:
“use new technologies”
“make everything contextal”
“amazon-ification”
“agile & dynamic applications”
“Faster Time-to-market”
“change – please!”
15
CMO/CCO

They are mainly asking the CIO to CHANGE
16
Our CIO is not afraid of change
but HOW should she change?
CMO/CCO

Era of Experience and Engagement
17
Galit Fein & Einat Shimoni’s work/ Copyright@2014
CMO/CCO

What do customers want today?
Today’s customers expect to:
 Browse
 Research
 Solicit feedback
 Evaluate
 Push the “buy” button at their own pace at the time
and place (via the platform) of their choosing
Affect product design
Affect price
Simple, isn’t it?
18

Customer Delight
• Exceeding customer expectations
• In a world of multiple choices - customer loyalty
is almost a mirage
• BUT, delighted loyal customers:
buy more
become a volunteer marketing force for your brand
http://gyselagervais.wordpress.com/2013/06/19/falling-into-the-love-glow/
of consumers would pay more for a better CX
86%
89%
of consumers began doing business
with a competitor following a poor CX
Better CX leads to better
performance & profitability
of organizationsSource: RightNow 2014
19
CMO/CCO

CX is a top strategic priority
 95% of senior business leaders say that
the CX is the next competitive battle
ground
 88% of CEO’s say that top focus area in
next 5 years is getting closer to
customer
 90% of CEO’s want to include
customers in new product and
services definition and testing
Source: IBM
20
CMO/CCO

CxOs are asking me for:
21
CMO/CCO

What do customers want?
Image via RenegadeChicks.com
Compare Products
In context
notifications
Valuable
Analytics
Real time
Recommendation
Social media Wish ListsLikes Much more
Amazon
like
Relevancy Recognition
Prices Compared to Suggested RetailRecommended Items Based on Prior Activity
CMO/CCO
22

Meet the VP of Customer Experience
23
Chief Customer Officer:
The voice of the customer in the
organization
Responsible for customers’ engagement
journey
CMO/CCO

24
Now it is all about Journeys
First important step is to define the journeys that really matter
Source: McKinsey
CMO/CCO

The engagement journey never really ends
The engagement journey never ends
Source :McKinsey
http://www.slideshare.net/McK_CMSOForum/big-data-and-big-profits
25
CMO/CCO

Traditional funnel is
not relevant anymore
The engagement journey never really ends CMO/CCO

journeys generate a lot of data!
27
CMO/CCO

Why is multi-channel not good enough?
• We used to assume customers are staying on the same channel
• Wrong! They are continually switching between channels (to perform a single process)
28
CMO/CCO

Evolution of channel strategy
Single
Channel
Multi
Channel
Cross
Channel
Omni
Channel
Several channels, with a possibility to switch between them (But
the company needs to work very hard to enable this type of
switching).
The customer experiences and interacts with a brand
(not channels). Company operations defined in
terms of “services” not in terms of “channels”.
Several channels, customer experiences each channel as independent. Silos of data
(sometimes combined via DW). The company’s business operations for each
channel are separate.
One main channel for interactions
29
CMO/CCO

Source: STKI 2013
Channels – new ones on top (not instead!) of old ones
Customers
continue
to use
same old
channels
But are also
staring to use
(additional)
new ones
Source: Forrester 30
CMO/CCO

Your future channels might be wearable:
31
CMO/CCO

What does all this mean?
Do we need a NEW IT
architecture to support
this “new world”?
32
CMO/CCO

Introducing – the Systems of Engagement Ecosystem
Web Mobility Social
Face-to-
Face
Contact
Center
Doc.
Output
(coupons etc.)
Channels
UX & the customer journey
Alerts &
Events
Persona
lization
Analytic
filters,
NBA
Digital
Analytics
Cross &
Up-sell
Aggregation
frameworks
Enablingtechnologies:
NLP;Semantics;Predictiveanalytics;APIs(Rest);Eventengines
/CEP,Personalizationengines,contentmng.,Bigdata
technologies,Recommendationenginesetc.
Marketing
suites
Campaigns
analytics, execution,
optimization
Ecommerce Suites
Payment, Order,
Fulfillment, Catalogue,
Pricing, PIM
Social Listening
Platforms
Sentiment Analysis
Multi-channel
apps
Applications
Back-end processes
APIs & Filters
Customer experience analytics
33
CMO/CCO

Mobility
In 2013 were sold 1.6 billion iOS and Android devices
Compared to 0.7 billion in 2012
Bill Gross
We are right in the middle of Mobile First trend– the
first device people tend to pick up when they need access
to information will be smartphone or tablet
5.1billion people
own a mobile phone
Only 4.2own a toothbrush!
34
@ SalesForce

Except the desktop itself – Mobile First
Source: Forrester
CMO/CCO
35

Being Mobile all the Time
36
CMO/CCO

Mobile experience is better than PC or Web
37
CMO/CCO

Even Web Doesn't Look Like Web Anymore
Chrome Web Store For Your Desktop
Awesome apps that run offline and outside the browser
38
CMO/CCO

Build Better Engagements
VS
Web = AM radio Mobile = Streamed music
Maybe we shouldn’t even call it a browser anymore.
Browser is really an antiquated word. People don’t really
browse all that much anymore. Instead, we now mostly use
our browsers to access sophisticated web apps, web-based
productivity tools and social networks Source: Mozilla
39
Are you in your
customers’ pocket?
Image Credit: Spectrum Blog

What do mobile customers want?
High expectation for any info
on anydevice, in context at
any moment of need
40

Amazon-ification and Apple-fication
Organizations are feeling
pressure, not from other org.,
but from customers to improve
their mobile apps and they are
turning to the likes of Amazon &
Apple for inspiration:
• Amazon's recommendations
engine
Amazon Mayday
myControl banking, help customers
predict what their daily bank balances
will look like until their next paycheck
money mngt app
on-demand video customer service
representative to troubleshoot any
what-am-I-doing moments
Deutsche Bank Expands Its App Store
41

WANTED: Mobile Payment
42
“Don't think of us as a bank, think of us as commerce.
We are experts in payments and enable commerce.“
Chief Innovation Officer for payments at U.S. Bank
CMO/CCO

M-Commerce - relevance, convenience and value
More and more non banking offering products
“My Offers” sync
programs with Facebook,
Twitter & Foursquare
connecting merchants &
Card members
43
AMEX upgraded its digital wallet to
make it more “bank like” prepaid card:
Bill pay/ Direct deposit/ Check capture Cash load/
Rewards card/ Check your balance in kiosks
Leumi Card mobile wallet

Pressure is also Coming from Digital Startups
Moven:
From Mobile Banking to Mobile Money
Mint.com Personal Finance Check Your Credit Score For Free
Venmo “Paying friends is fun!”
It's not just branding and colors anymore.
It's the experience
Customers don't want giant spreadsheets of
what they have done, but only translation of the
valuable data 44
Ynet.co.il

Digital Strategic VS Tactic Approach
45
CMO/CCO

Strategic Approach – Customer Journey
Customer
Journey
CMO/CCO
46

Mobile First is not Mobile Only
Source: Google/Ipsos/Sterling
47

Tactic Approach – How to do it?
1. B2C
2. B2E
3. Senior Management
4. Mobile force
Target audience:
Operation System
1. All
2. iOS
3. Android
4. Microsoft
1. Outsourcing or inhouse
2. Development or Mobile Platform
3. Proprietary SW or Open Source
Project and ongoing support
1. Responsive Website.
2. Native Application.
3. Web Application.
4. Hybrid Application.
Development Method
Our mobile presence
should provide:
1. Information
2. Competitive advantage
3. Better productivity
Should also consider:
1. Data integration
2. Security
3. Lifecycle mngt and versioning
4. Offline access
5. Push notification
In an utopian world with unlimited resources:
responsive Web + native App for all OS
48
CMO/CCO

Achilles Heel of Mobile Projects
49
• Big effort to support the diversity of devices
and OS, write 3 different native data code and
maintain different mobile silos
• Early approaches run out of gas
49
CMO/CCO

A Few Options Have Been Tried
Use of existing skills &
backend systems
Customer experience
RWD
Hybrid
Native
50
Native Hybrid Web
Consumer 40% 40% 20%
Enterprise 10% 60% 30%
Mobile Development Split in Future
JUST DO IT
make a decision –
any decision.
In 2 -3 years
you’re going to
change it anyway
CMO/CCO

Mobile is number 1 project in your Organization
Source: STKI 2014
51
CMO/CCO
STKI 2014

What is the best way for apps development?
8%
17%
15%
38%
12%
19%
28%
45%
Open Source
Mobile Development Platform
TouchPoint, WorkLight, etc.
Mobile Web
Native or Hybrid App
B2C B2E
Source: STKI 2014
Enterprise IT developers are relatively
slow in adopting development tools,
with 45% not using any tool - clearly
an opportunity for the 100s of tool
vendors targeting corporate budgets
52
CMO/CCO

Native Hybrid Mobile Web (RWD)
- Little reuse of existing IT
skills and assets
- App is wrapped in a native
container + HTML5
- High degree of code reuse with
native app access
- Tasks oriented + a lot of info
changes
- There is a compromise in
the UX
- Entire website (performance issues)
will display the same content most
suited to the device
- High degree of existing IT skill and
assets reuse
- Access via browser, reach people 5
times more than app
- Available online only
- Information oriented
- UX is necessarily compromised-
not leveraging mobile device features
- Best CX
- Best advantage of mobile
device features – in-
context actions:
personalization, NBA,
push notification
- Available offline
- Tasks oriented
UX
i
Touch
Rule
53

Native Hybrid Mobile Web (RWD)
- Little reuse of existing IT
skills and assets
- App is wrapped in a native
container + HTML5
- High degree of code reuse
with native app access
- Tasks oriented + a lot of
info changes
- There is a compromise in
the UX
- Entire website (performance issues) will display
the same content most suited to the device
- High degree of existing IT skill and assets reuse
- Access via browser, reach people 5 times more
than app
- Available online only
- Information oriented
- UX is necessarily compromise - not leveraging
mobile device features
- Best customer experience
- Best advantage of mobile
device features – in-context
actions: personalization, NBA,
push notification
- Available offline
- Tasks oriented
UX
i
Touch
Rule
Apps
CMO/CCO
54

Pull VS Push Service
VS
CMO/CCO
55
RWD Native App

Apps Win the Web in Mobile Consumption
app
56
CMO/CCO

Over 70% of Cost & Effort on Mobile Projects
spent on Supporting Back-End Processing
Source: Forrester 2013
57
CMO/CCO

MBaaS - Mobile Backend as a Service
● Deliver app content
● Store data
● Perform social interactions
● Geo and search services
● Push notifications
● User statistics and errors
● Perform
● Systems integration
58
Mobile app lifecycle :
build, deploy & manage
The way to connect mobile app to backend cloud storage and
processing while providing common features such as user mngt,
push notifications, social networking integration & other features
CMO/CCO

Mobile Development Platform
Run everywhere.
Mobile
Tablets
Desktops and Kiosks
Build everywhere.
Broad Native Support
Web (mobile + desktop)
Single Page
Architecture
Standard
Mixed Mode
Hybrid
Individual, device-optimized sites
MBaaS
Messaging Sync Integration
Write once.
A single code base.
• Centralized management:
• Deploy, configure,
report, update
• Authorization, statistics
• Enterprise App Store
• Push notification
messages distribution
• Application portfolio
Source: Kony
59
CMO/CCO

APIs are the lifeblood of mobility
60
API definition - an Application programming interface
is a way for 2 computer applications to talk to each
other over a network (internet) using common
language that both understand
CMO/CCO

The World of Open APIs
Due to NY trip,
I’ll be out of the
office for the
next week
01/04-07/04/14
61
CMO/CCO
N
Open API
Open API
Open API

Data is Value
Crowdsourcing
BUT Context is King!
62
CMO/CCO

Personalized Filters
A moment before consumers will be bombarded with daily deals
they need a personalized filters curating meaningful offers
for them
Users can download the dashboard app that shows offers
added to their card, expiration dates, and delivered savings
Analytics eliminate the guesswork in mobile success
Social platforms - Syncing your card with Tweeter
and saving money. On Facebook, "Link Like Love" is about
deals, and experiences based on your "likes" and interests Information overload is not a
problem. It’s filter failure.”
Clay Shirky 63
Analytics
Filtered
data
CMO/CCO

Analytics – as always – a HOT topic
80
76
7168
62
5353535350
44
3229
21
12111
‫הפרויקטים‬ ‫תחומי‬,‫ב‬ ‫בארגונך‬ ‫החלו‬ ‫אשר‬-2013/‫ל‬ ‫מתוכננים‬-2014
Source: STKI inquiry barometer, 2014
CMO/CCO
64

Evolution of analytics
Passive
Classic
DW
Proactive
Classic
DW
Self Service
and
Discoveries
Analytics
& Insights
Cognitive
Insights
Deep use of semantics, text analytics,
NLP and machine-learning to provide
new wisdom. Real time analysis
Business users gaining control over BI (use of Self service tools).
DW updated more frequently but is still in the classical model.
Advanced Visualization
More use of predictive and analysis tools by business
users. Some analysis of unstructured data in an
external “big-data style” data mart
BI insights linked to operational processes (i.e, marketing lists to call service agents;
risk analysis leads to operational process). Classic DW, structured data only. IT
doing most BI work
Pull-only model (need to extract reports from it). IT is doing most of BI work. Classic DW model
(single version of the truth), updated ~once a day. Structured data only
IT focus
Business
focus
Structured
data only
Unstructured
data
Reports
Insights
65
Letting go
Enabling
experiments
CMO/CCO

The data sandbox
A data sandbox, in the context of big data, is a standalone datamart, scalable and
developmental platform used to explore an organization's rich information sets through
interaction and collaboration.
A data sandbox is primarily explored by data science teams. Data sandbox platforms provide
the computing required for data scientists to tackle typically complex analytical workloads.
66
What are we
looking for?
I don’t know,
but it’s going
to be amazing!
CMO/CCO

Pattern spotting
Events detection
Proactive
Data Warehouse architecture Phase 1: Co-existence
Analytic platform for
external, unstructured data
Text analysis
Internaltransactionaldata
Externaldata
Insights from external data
Data Science
INFORMATION
REPOSITORY
67
CMO/CCO

Pattern spotting
Events detection
Proactive
Text analysis
Externaldata
Data Science
INFORMATION
REPOSITORY
“Bureaus” that analyze and
track social media as an
external service:
68
CMO/CCO

Pattern spotting
Events detection
Proactive
Text analysis
Externaldata
Data Science
INFORMATION
REPOSITORY
69
CMO/CCO

Data Warehouse architecture Phase 2: Virtual DW/Hybrid BI
Text analysis
Externaldata
Data Science
The virtual Data Warehouse
INFORMATION
REPOSITORY
Metadata Permissions Caching
Part of the data can be kept here
70
CMO/CCO

Data Warehouse architecture Phase 3: OLTP + OLAP
Analytic platform
for external,
unstructured data
Text
analysis
Externaldata
Data
Science
The virtual Data Warehouse
INFORMATION
REPOSITORY
Metadata – semantic layer
Same database for both analytical and transactional data
71
CMO/CCO

The 4 V’s
Source: IBM
72
CMO/CCO

Veracity
Big Data Veracity refers to the biases, noise and abnormality
in data. Is the data that is being stored, and mined meaningful
to the problem being analyzed. Inderpal feel veracity in data
analysis is the biggest challenge when compares to things like
volume and velocity
Source: http://inside-bigdata.com/2013/09/12/beyond-volume-variety-velocity-issue-big-data-veracity/
73
CMO/CCO
You don’t know the value
of your data
until you reach a
discovery or by using it

Wisdom is the application of Knowledge
Data
Information
Knowledge
Wisdom
“To attain knowledge, add things everyday.
To attain wisdom, remove things every day.”
― Laozi
Discrete elements like words, numbers, names
Linked elements with concepts
Applied
Knowledge
Organized Information
74
CMO/CCO

“What’s the difference between
information and knowledge?
It’s like the difference between
knowing Julia Roberts’ phone number
and Knowing Julia Roberts”
- Woody Allen
75
CMO/CCO

Pattern spotting
Events detection
Proactive
New analytics category
76
CMO/CCO

Do you know this artist?
David Mccandless:
Infographic artist.
“My pet-hate is pie charts.
Love pie. Hate pie-charts”
CMO/CCO
77

His works of art
http://www.informationisbeautiful.net/
CMO/CCO
78

Why do we care so much about sentiment?
79
CMO/CCO

Text analytics
• Automatic categorization /Content Analysis:
• IBM ICA, Vivisimo
• Integrators/ BI players solutions
(i.e, Opisoft, Matrix, Taldor, Ness…)
• Sentiment analysis:
• Radian6 (Salesforce)
• FocalInfo
• SAP
• SAS
• Tracx (Israeli startup)
• New social listening in Microsoft dynamics CRM
• Search players:
• Attivio
• Melingo
• HP (Autonomy)
Several projects in financial organizations and defense sector 80
CMO/CCO

What do the COO and CFO need?
CIO
CEO
COO
CCO
BRM
ERP
EPM
Logistics
Procurement
DW
Operational CRM
Finance
Supply Chain mng
WMS
81
CFO/COO

http://www.forbes.com/sites/joshbersin/2012/08/16/the-
move-from-systems-of-record-to-systems-of-engagement/ 82
CFO/COO

Sales staff
Service
Agents
Marketing
staff
Procurement staff
HR Staff
Employees
Finance dept.
employees
Logistics
staff
Manufact.
staff
Knowledge/Content
Management
Logistics
Finance
Industry-
Specific
Solutions
Legacy
Systems
Sales
Automation
Marketing
Automation
Mobile Sales
(Prod. CFG)
Field
Service
Financial
Data Mart
HR
Data Mart
Product
Data Mart
Closed-Loop Processing
(EAI Toolkits, ETLM tools,
Embedded Mobile Agents)
Customer
Data Mart
Order
Data Mart
Operational
SCM
ERP
CRM
Manufacturing
Execution
Warehouse
Management
Transportation
Management
Transportation
Planning
Distribution
Planning
Supply
Planning
Manufacturing
Planning
Order
Management
Service
Automation
Web/
Intranet
Human
Resources
Manu-
facturing
Demand
Planning
Analyze
Design
Build
Deliver
Data
Warehouse
Product
Lifecycle
Systems of records architecture
83
CFO/COO

3 Different ERP markets
Enterprise Mid-Large SMB
• Very large enterprises
• Very large scale
implementations
• Typical number of
users: >1000
• Large organizations
• Large scale
implementations
users: 100-1000
• Small-medium
organizations
• Small-mid
implementations
users: 20-100
• Each market has different
characteristics, needs, players and
cost structure
• We position each of these markets
and its players separately
84
All vendors data and positioning is in a separate presentation:
CFO/COO

ERP at its best (practice)
•Best practice is king
• Pre-built blueprint
• Skip gap analysis
• Show the users a pre-set application
upfront (only then “must-have”
changes will be made)
• Cloud = “a good excuse” for avoiding
massive customizations
• Degree of customizations decreasing:
from 30% customized code to 10-15%!
• Price of implementation can be
“sane” (1:5)
• Ongoing support drops by 20%
Source: http://areyoufrank.com/ERP-Employee-Communication-and-Engagement-Experts
85
CFO/COO
Best practice is not
only about $, it’s
about agility

ERP Staffing is (still) an issue
On average, the ERP staff accounts for 10% of the total IT staff
86
Source: STKI
CFO/COO

Mid-Large ERP market:
The battle begins!
87
Local players Global players

What does the HR manager need?
CIO
CEO
COO
CCO
BRM
UX
Social
Gamification
Solutions for:
Knowledge mng.
88
Talent management
HR

Talent Management
• Preference of suites (versus point solutions)
• Cloud as preferred (sometimes only) model
• Social, mobile, cloud & analytics - all inside
89
Source: Johns Hopkins University
https://hrnt.jhu.edu/tmod/talent_mgmt/talent_mgmt.cfm
HR

90
HR

Every system of records has an “engagement layer”
Engagement Layer
System of
Records
Engagement Layer
91
And it is
getting
all the
attention
Workers’ mobility
Next best offer
Contextual IT
services
Millenials
HR
G

Millennials ask for new models of work
70% of users never login to
enterprise communities
50% of enterprise software
goes unused
• 76% own smartphones
• 83% sleep with their smartphones
• 68% own a game console
Don’t
call
80% of current gamified applications
fail, because business
objectives are not defined at
the outset
ages 19-36
Millennials:
92
@Gartner
HR

Like it or not, Millenials will change the workplace
In 5 years, nearly
50% of workforce
will consist of
Millennials
U.S. Bureau of Labor Statistics
93
But wait,
if you still do not understand the Gen Y
HR

It’s all
they know
Gen Z - “Digital Natives” Coming to Your Office Soon
ages 4-19
Born
digital &
social
Constant
Connection
94
HR

Your Employees Deserve Better
VS
95
SAP UI: Also SAP UI
Employee view Customer view
HR

No More Dumb Stuff!
Print Sign Fax Scan
  
Mobile Learning
Gamification expected
Video-based training
Autodidactic
HR
96

Gamification
• The use of game design techniques,
game thinking, and game mechanics
to enhance non-game contexts
97
Average age of gamers is 37
45% of gamers are female.
62% of gamers play games with others
46% of gamers play games on their
smartphones

Why do people like games?
Collaboration
Sense of Control
Shared Experience
“There is the mismatch between what science knows and what business does.
The gap is wide. Its existence is alarming.”
Fun
Immediate Feedback
It takes us out of everyday live
Chance to learn new skills Feel of Competence
- Daniel Pink
98
HR

Motivation is bigger than money
Gamification isn’t
about badges, levels,
competition, or points
It’s about great
engagement design
It’s a business channel that gets
invested for the long-term
It’s not a project…
+
99
HR
N

How “active” is your enterprise portal?
What is the connection between the 2 images?
Enterprise
Portal
100
HR

Portals evolution
101
HR

The organizational Portal
(“Intranet”)
• A single view for all (lowest common denominator)
• Can also be narrowed down to a specific group
(subsidiary / geographical location)
• Content (not transaction)-centered
• Common set of “services”
• No high value / ROI
• PR/ Brochure nature
102
HR

Process Portals
• Defined around a specific process or role
• More operational in nature (work environment)
• Sometimes the only place to perform a task
• Linkage to e-forms/WF tools (i.e, Nintex)
103
HR

Personalized portals
(“mysite”)
• Designed for a specific individual
• The person can chose his / her specific portlets
or web parts (like an app-store experience)
• Some apps will be mandatory
104
HR

Meanwhile, Knowledge management challenges are growing even bigger
“I don’t need any other tools for knowledge & collaboration, thank you.”
105
What’s in it
for me?
HR
KM projects
must be
task focused

Does this mean we have
to behave more like a
startup and less like an
enterprise?
106
OCIO
G

CIO has 2 faces
COO CDO
107
OCIO

IT Organization 2014
Enterprise Procurement
Software House IT Delivery Services
Managed
Services
LOBs
BRM
- CX
Bill of
materials
Scope of
Work
Infra
requirements
108
OCIO
Pay per Use
OCIO

IT Organization 2014
Enterprise
Procurement
Software House IT Delivery Services
Managed
Services
LOBs
BRM
Scope of
Work
Infra
requirements
109
OCIO
- CIO’s
execution
arm
LOBs
LOBs
Business requirements
SW
OCIO

Office of the CIO - From Gatekeeper to Conductor
• IT strategy, IT budget mngt
• PPM, PMO, SOW, implementation
• Quality Assurance - methodologies
• Measurement, control and reporting:
 IT solutions usage
 Ongoing support
• Sourcing mngt
 Managed services
 Cloud computing
• Vendor mngt
 Contracts, agreements, SLAs
• IT chargeback, IT service catalog,
Dashboards
0%
10%
20%
30%
40%
50%
60%
70%
80%
OCIO responsibilities
STKI 2014
110
OCIO

Holistic Approach to IT Project Management Tool
111
OCIO

Managing the Change
“Change - it feels like trying
to juggle a number of balls,
with new balls suddenly
appearing and the floor
moving” One manager
Source: lindsay-sherwin.co.ukproject
Managing
the stresses and
pressures
Managing
project’
plan &
activities
At the end of the day, managing change is about managing people,
and in particular in managing their reactions to the changes
112
OCIO

Shamrock Organization - 3 Types of Workforce
Flexible organizations can
react quickly to ever-changing
environments
Org. don’t consist of just the
Core and Outsourced.
Periphery can be subdivided
multi-skilled core of
professional
technicians &
managers
Sourcing of non
central activities
Part-time &
temporary
workers
Sourcing fringe
113
OCIO

Is outsourcing still a good strategy?
Sourcing large projects + fix price = It doesn’t work so well
A few big outsourcing contracts have been
renewed: IMI, Mada, Court
An explosion in public sector outsourcing:
Ministry of Sviva, Knesset, Judicial Authority, ECA,
Taasuka , Immigration Authority
Although
ClientsVendors
• Highly competitive market
• Vendors entering almost no profit
projects hopping to get new business
• Hashkal effect – 12.5% has become
the upper limit
• Israel as China’s offshore
• Looking for creative ways to offset
losses
• Chooses service provider by lowest price
• Doesn’t take the risk element into account
• Ready to pay for additional work to a
certain limit
• Clients are disappointed and blaming the
service providers for lack of transparency
and fairness
Business model:
"‫בסדר‬ ‫יהיה‬"
114
OCIO

Managed Services…
115
Disappointment from outsourcing service provider for failing to meet client expectations
isn’t relevant if you never managed or told him what exactly went wrong
Small, manageable packages of work:
Well defined, SLA based price list
security
HD
QA e-commerce
Develop
ment
Mobility
Outsourcing of non
central activities
YOU have to be
in charge of core
managed services
OCIO

Two kinds of temporary workers
Temps
• Temp Workers who are
"Permanently" stuck in
their 'temporary' situation
• Often with more pay but
without any benefits and
labor rights
• It’s the small things that
bother you the most:
• Parking, dining room,
gift for holidays,
second-class worker
"‫כתף‬ ‫אל‬ ‫"כתף‬ ‫עובדי‬If it quacks like a duck…
it’s a ‫כתף‬ ‫אל‬ ‫כתף‬ ‫עובד‬
‫ממשלתי‬ ‫במשרד‬
Disappearing trend
• ITOs will always use temps for
flexibility and scalability
• Partial Jobs
• Need for different skill sets at
different times
• Temporary hiring - Try Before
You Buy
• To hire a FTE, you have to have a
long term need.
• But a lot of the time, IT only
has an immediate need. It’s
much easier to budget for a
contractor
Here to stay
116
Permatemps

The Cloud Is Just One Of The Sourcing Models
117
XaaS
IT Delivery Services (SW + HW)
Shared services drive lower cost
and faster T2M.
When you’re outsourcing DC
infrastructure, why would you like
to own the servers, network gear,
and other support equipment?
OCIO
Source: The METISfiles
IT delivery will consist of a mix of in-house
software and systems, cloud services and
some outsourced –
all layered with various degrees of complexity

Cloud empower 6 potentially “game changing” business enablers
Cloud’s Business Enablers
Cost
Flexibility
1
 Shifts fixed to variable cost
 Pay as and when needed
Business
Scalability
2
 Provides limitless, cost-
effective computing capacity
to support growth
Masked
Complexity
4
 Expands product
sophistication
 Simpler for customers/users
Context-driven
Variability
5
 User defined experiences
 Increases relevance
Ecosystem
Connectivity
6
 New value nets
 Potential new
businesses
Market
Adaptability
 Faster time to market
 Supports
experimentation
3
Source: IBV Analysis
We want to pay only for what we use
And we want to control it accurately.
118
OCIO
N

119
OCIO

Open Source & cloud in the eyes of new centralized procurement
Centralized Procurement is more open to consider new software
models (SaaS, Open Source) in alongside classic models
In some cases, Cloud and OS are a better fit for fast changing
requirements of the market (i.e, mobile, big data, social)
Local services (SI) market is progressing but is still a barrier
120
#1 reason is not about price, it’s about (innovative) functionality and agility
OCIO

Israeli organizations are finally embracing open source
•Search
• Lucene based projects - Elasticsearch, Solr
•Learning Management
• Moodle
•Web Content Management
• Drupla
• Joomla
• Umbraco
• Liferay
•Analytics:
• BI: Pentaho, Jaspersoft, Birt
• Data mining: R Statistics
121
OCIO

122
OCIO

CRM SaaS will be the preferred model
70% of enterprises of all sizes (globally) having deployed all or some CRM, or planning to
deploy CRM as a SaaS solution (Forrester)
20% of Israeli organizations are
already using SaaS CRM
An additional 20% are planning to
deploy SaaS CRM during 2014
(STKI Survey)
Source: STKI Survey 2014
123
OCIO
Agiliy and
TTM are the
main driver
G

IT customers would like to get
exactly the same from IT
Cloud Provider Value Based Pricing List
Clear price list, predictable billing, pay only per use
124
OCIO

Chargeback Pain or Gain?
IT costs allocationChargeback connected to
actual consumption
125
IT cost can’t be split evenly
between the LOBs!
OCIO
3%
18%
79%
‫מתבצע‬ ‫כיצד‬IT ChargeBack‫בארגונך‬:
NO chargeback
STKI 2014

Unfortunately ,You Can’t Separate the Transparency from Chargeback
IT budget management ONLY solution example:
Excel report with 100x of
categories is not a
transparent tool
BUT self service, process
automated, IT service-
based, tied to actual usage
Aternity
BMC
CA
HP
IBM
Neebula
SAS
ServiceNow
VMware
In alphabetical order
126
OCIO

Start with IT Service Catalog
Business
Next year you have to be
prepared to answer both
questions from executives:
1) “How much is this IT
service cost me?”
2) "How do I know this is a
reasonable expenditure?"
127
OCIO

Traditional Approach for SW Development Life Cycle is Over
18
6
X
Average
Duration
First
result
On budget
months
months
Project
128
OCIO
16%
31%53%
Standish – The Chaos Report
on-time, on-budget, on-scope
project is completed and operational but over-budget, over the time
project is canceled at some point during the development cycle

Large IT Projects are More Likely to Fail than Small Projects
Think big
Start small
Act fast
projectSmall is beautiful —small projects are easier to
manage and execute
If the greatest projects difficulty is ever changing
requirements by the client, there is no sense to
be so strict about scope and budget far in advance
Embrace agile spirit - work tied with project shareholders;
small sprints; ability to show some product in several
weeks
129
OCIO

What defines a successful project?
In use 5 years
after going live
Maintainable
after 5 years
Easily connected to
other applications
It is NOT about on-time or on-budget!
130
1. 2. 3.
OCIO
N

What does the CEO need from the CIO?
CIO
CEO
COO
CCO
BRM
131
Omni-Channel
CX
Mobile
Ecommerce
Dashboard &
aggregated data
Mobile & personal
productivity tools
UX
Social
Gamification
KM
ERP
EPM
Logistics
Procurement
DW
Finance
Real time campaigns
Amazonification
Social listening
Summary

What does the CEO need from the CIO?
CIO
CEO
COO
CCO
BRM
132
Omni-Channel
CX
Mobile
Ecommerce
Dashboard &
aggregated data
Mobile & personal
productivity tools
UX
Social
Gamification
KM
ERP
EPM
Logistics
Procurement
DW
Finance
Real time campaigns
Amazonification
Social listening
Technologies
that enable
innovation and
create
competitive
advantage
A necessary
critical
“backend”
to support
operations
Summary

Bottom Lines
•The challenge will be weaving together systems of records
with systems of engagement:
•Systems of engagement create valuable records and information that
needs to be stored and managed
•The engagement layer will become increasingly more important in systems
of records to increase usability, effectiveness and productivity
•Every new project / application needs to start with the
customer experience in mind (internal or external)
133
Summary

Please check yourself
• Are you capable of providing “dynamic” applications that change as
fast as business requirements?Agile applications
• Do you support BYOE? Solutions for all types of employees? UX for
internal apps?Generations
• How can you personalize IT services (per user/ role/ location etc.)?Contextual services
• Do you have a BRM (for internal CX) and CCO (for external CX)?CX manager
• Are you open to open source?Open Source
• Have you deployed SaaS applications?Cloud
• Can you provide IT cost transparency and chargeback as cloud
providers do?Transparency
Summary
134

What are you getting:
1 2 3 4
5 Newsletters
What are you getting Summary
135

Thank you!
136

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