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Business Gets Digital
Hung LeHong
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Find the right growth targetFind the right growth target
Educate your executivesEducate your executivesea e g a c argeea e g a c arge
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Find the right growth targetFind the right growth target
Educate your executivesEducate your executivesea e g a c argeea e g a c arge
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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What's Top of CEO "To Do" Lists?
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IT Is Directly Visible in Top
Strategic Business Priorities for 2014/15Growth
IT related
Profit improvement
Priority1st
Workforce related
Customer related 2nd
3rd
4th
Efficienc & roductivit
Financial
Product improvements 5th
"What strategic business
GRC
Innovation, R&D
address in the next 2 years?"
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
0% 20% 40% 60% 80%
n = 410 CEOs and Sr. Business Executives
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CIO "Heavy Lifting" Contribution to the Leadership Team:
Structure Their Growth Focus, Then Link IT Directly to It
Info., analytics
E-commerce5%
Mobile andm-commerce
5%
NewMarket Cloud
5%
and big data
4%
locations(various)
25%"Organic"
10%
10%
Uns ecified
Salesrevenue
17%
improvements
54%Digital, social
and online27%
21%"New
markets"17%
Growth Focus Categorized
IT Focus Categorized
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
uzzy an over app ngconcepts)
overlapping concepts)
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Most Growth Constraints Are External Factors
But Your Response to Them Is a Differentiator
"What are the twomost significant
80% of job seeking professionals usetheir mobile. Are you "m-hiring"?
factors acting as
constraints onyour company'sgrowth?"
20%
you now even spacecra are
being crowd-funded these days?
Any product can be digitally-
13%
11%11%
Long tail.
Ask your CEO about YOURbi est rowth constraint.
.
6% 6%5% 5%
4% 4% 3% 3% 3% 3% 3% 3% 3%
2014 Gartner, Inc. and/or its affiliates. All rights reserved.n = 410 CEOs & Sr. Business Executives
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Ageingcreates
External macro trends.
oppor un esfor manyindustries
.
Technology
"What are the two27%
3rd
external macrotrends shaping
your businessstrategy?"12%
mostimportant
5%
9%
6% 6% 6% 5% 5% 5% 4% 4% 4% 4% 4% 4% 4% 3% 3% 3% 3%
11%
2014 Gartner, Inc. and/or its affiliates. All rights reserved.n = 410 CEOs and Sr. Business Executives
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Find the right growth targetFind the right growth target
Educate your executivesEducate your executivesea e g a c argeea e g a c arge
2014 Gartner, Inc. and/or its affiliates. All rights reserved. 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Your
business
are morethan ready
to placedigital
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.
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Investment Intention Changes for 2014Digital
business ...
9% 43% 48%
Decrease No change Increase
12%13%
41%37%
47%51%
R&D & innovationInformation technology
productinnovation9%
7%
56%
53%
35%
40%
Risk mgmt., legal & compliance
Sales
10%
9%
65%
63%
25%
28%
Supply chain
People & culture
13%
20%
66%
52%
21%
29%
Property and facilities
Business servicesap a equ pmen
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
n = 152 CEOs & Sr. Business Executives
"Compared to fiscal year 2013, how will your organization's investments
in the following business areas change in fiscal year 2014?"
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Top Technology Investments,
Next 5 Years38%
34%
Digital marketing
E-commerceSocial organization/ 19%
Less than 20%:
34%32%
Customer experience mgmt.Business analytics
Sustainability 19%Business processoutsourcing
18%
24%
23%
Big data & data science
Enterprise mobility
process management
Electronic service
enablement
15%
22%
20%
20%
Supply chain & traceability
M-commerce
Product cost analytics
Mass customization 10%
E-discovery 9%
Sensor networks/ 8%
20%Enhanced business reportingn = 410 CEOs and Sr. Business Executives
Pay as you go 8%
Additive manufacturing 4%
Gamification 4%"Which 5 technology enabledca abilities will be the most im ortant
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Neurobusiness 2%
Multiple responses allowed
areas of investment to improve yourbusiness over the next 5 years?"
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Find the right growth targetFind the right growth target
Educate your executivesEducate your executivesea e g a c argeea e g a c arge
2014 Gartner, Inc. and/or its affiliates. All rights reserved. 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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What is the real meaning of"digital"
business?
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What Digital Business Means to CEOs
What do you mean when youthink about "digital business"
2014 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner CEO & senior business exec. survey 2014. Large Cos., WW, n = 410.
n e con ex o yourbusiness and industry?
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Targeted DD--businessbusinessEE--business +business +Ecommerce,
ebusinessOnline
customer
Marketing,
brandGeographic
reach
Security,
safetyMobilemarketing&selling
Multichannel
Di italized
value
chain
Distributionof
products,services
selfservice Direct
selling
Customerintimacyfinding
Virtual,
Product
advances
senior businessexecutive survey2014. Largecompanies,worldwide, 4Q2013. n = 410.
Cost
reduction
Automation
&productivity Businessmodelchange
CompetitiveadvantageBusinessgrowth
weightless
business
Lagging Leading
Online/webbased,
general
B2B
collaboration
,
content
Mobile
devices,
general
Analytics&
decisioning
Socialmedia
M2M,
Internet
What the term"digital business"means to CEOs
Paperless
information
flow
Speed,
convenience
Cloud
computing
Information
flowrelated
Big
data
ofThings
a o you meanwhen you think about"digital business" inthe context of your
2020thth CC--businessbusinessGeneraluseofIT,
computers
Digital
isdigital
Communication
frequency,
scope
Enterprise
useof
digital
eratech.
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Irrelevant/
nothoughts
Improvement
vs.analogue Vague
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Management Teams Must Focus More on
Information as a Corporate Asset
Data is
We measure the
benefits thateach type ofinformation
We quantify thefinancial value ofour information
the oil
of the21st
centuryasset generates
for us33%
assets, as if theywere a balance
sheet asset
24% 010011010001110101
We donot regard
Our informationassets are well
cataloged(inventoried)and defined
We directlymonetize
n orma onas a kindof asset
11%
22% informationassets bybartering withthem or sellingthem outri ht
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
n = 410 CEOs and Sr. Business Executives
10%"To what extent does your organization treat
information itself as a kind of corporate asset?"
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Which companies doCEOs most admire ...
for competing
with tech.?
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Watch and Learn From the Top 15
1 5 =
2 6 =
37 =
4 = "Which 'non-tech.' company do youmost admire for its ability to applyIT-related or digital business capabilities
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
for competitive advantage?"
Gartner CEO and senior business executive survey 2014 Large companies, worldwide, 4Q 2013. n = 410.
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Admired Company Examples: DeepInvestment-led, Strategic Innovations
Business Sphere Drive thru. click & collect Warehouse robots
"By eliminating the delayof manually collecting andaggregating data, thispatent-pending BI system
Is one reason Tesco,achieved $730 million inonline sales in the six weeksto 4 January 2014, up 14%
Drones might comeone day. But during2013 Amazoninstalled over 1,300
mproves pro uc v y ancollaboration, simplifieswork processes, reducesdecision-making cycle time,
on e prev ous year. escotook more than 3 milliononline grocery orders, up11%, and 1.5 million non-
oor rov ng ro o sfrom Kiva Systems a company it boughtin 2012. Subsidiary
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
on consumer innovation."
, .using them for years.
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Find the right growth targetFind the right growth target
Educate your executivesEducate your executives
ea e g a c argeea e g a c arge
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How Will Digital Tools and CultureChange the Nature of Leadership?
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Tag cloud generated from survey response data using Tagul.com.License paid.
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Impact of the Digital Age on CEO'sLeadership Style
No changeof style
14%
MoreCommunication
Style dinosaurs linked tounderperforming firms
Noanswer4%
MoreTransparent& Accountable
Better informed6%
29% Impersonal,Less Face to
Face6%
16%
Decisionprocess-related
5%Customerinteraction
Long tailof other
responses
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
"What is the most significant way (if at all) that the digital age
has changed your leadership style over the last 5 years?"
n = 410 CEOs and Sr. Business Executives
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Recommendations
Find the rightFind the right growthgrowth target.target.Discuss with CEO CFO and strateDiscuss with CEO CFO and strate
your business head.head.
Seize fresh investment.Seize fresh investment.Change the tune. ProposeChange the tune. Propose businessbusinessinvestmentsinvestments including acquisitionsincluding acquisitionsandand new products.new products.
uca e your execu ves.uca e your execu ves.Offer digital tours. Drip feed contentOffer digital tours. Drip feed contentintointo CEO, board and leadershipCEO, board and leadershipteamteam meetings.meetings.
To lead the digital
Lead the digital charge.Lead the digital charge.Start setting the digital business agenda,increase the sense of urgency. Ask for
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
industrial revolution forgiveness not permission.
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Recommended Gartner Research
CEOs and CIOs Must Co-Design the C-Suite for
Mark Raskino, Dave Aron and others (G00258536) The Gartner Travel Guide to the First Digital Decade
ee e on, e rey o e an o ers
CEO Advisory: Three Changes You Can Make to the
Mark Raskino and Jackie Fenn (G00250367)
The Digital Edge, Exploiting Information
an ec no ogy or us ness van ageMark McDonald and Andy Rowsell-Jones(2012 e-book)
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
For more information, stop by Gartner Research Zone.
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Methodology Record
Gartner conducted this research September to December, 2013 in order to examine CEO and seniorbusiness executive views on current business issues as well as some areas of technology agendaim act. 410 business leaders were ualified and surve ed. The bulk of the research was achievedonline (368), an additional 20 surveys were conducted via telephone interview, and paper-baseddocuments. All respondents were screened for active employment in organizations greater than$250M in annual revenue, excluding technology vendors.
The sam le mix is as follows: CEOs = 227 responses CFOs = 93 responses COOs = 31 responses
Chairman, President, BOD, or other C-level = 59 responsesy reg on:
North America = 154 responses Europe = 114 responses APAC = 117 responses Brazil = 10 res onses
South Africa = 8 responses Middle East = 6 responses
The survey was developed collaboratively by a team of Gartner analysts who examine IT's role in'
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
,team. The results of this study are representative of the respondent base and not necessarily businessas a whole.
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Survey Respondent Regions & Countries
28%28%
38%N. America38%N. America
EuropeEurope
29%
APAC
29%
APAC
M. East
M. East
2%Brazil2%
Brazil
2%S. Afr ica
2%S. Afr ica
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
n = 410 CEOs and Sr. Business ExecutivesResponding countries
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Survey Respondent Roles
55%
Other14%
COO8%
, ,
Chairman
Board of Directors
Other C-level Executive
University Chancellor/President
CFO23%
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
n = 410 CEOs and Sr. Business Executives
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Survey Respondent Industries
25%
23%
23%Manufacturing Multiple responses
13%
11%11%
9%
Business services
Retail
9%
8%
6%
5%
6%
4%
Insurance
Transportation
Natural resources
56%
Value chain position:
5%
5%
5%
4%
3%
Healthcare providers
Wholesale trade
44%
37%
4%
3%
3%
3%
Media
UtilitiesB2B B2B2C B2C
2014 Gartner, Inc. and/or its affiliates. All rights reserved.
3%2%Education
n = 410 CEOs and Sr. Business Executives
Multiple responses allowed
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Survey Respondent Company Size
Annual revenue: Number of employees:
$250M to