Digital Leadership and Governance of IT in the Third Sector. Mark Toomey Project Editor: ISO/IEC 38500:2008 Author: Waltzing with the Elephant Managing Director Infonomics Pty Ltd Australian ICT Professional of the Year 2012 Forthcoming: Digital Leadership Manifesto. 0:00/1. - PowerPoint PPT Presentation
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Digital Catastrophes - despite brilliant technology advice and insight• Fairfax
– “Almost every time a company fails or stumbles, industry experts saw the fall coming before the board. The board is often the last to know that its company has serious problems.”.. Eric Beecher to Fairfax
– “I don’t ever want anyone coming into this boardroom again,” he told his colleagues as he held up a copy of one of Fairfax’s hefty Saturday papers, “and telling us that people will buy houses or cars, or look for jobs, without this.”… referring to Roger Corbett, now chair of Fairfax.
• HMV– "The three greatest threats to HMV are online retailers, downloadable music
and supermarkets discounting loss leader product”… the MD was visibly angry… "I have never heard such rubbish, I accept that supermarkets are a thorn in our side but not for the serious music, games or film buyer… …downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping".
Digital Transformers – major change in outlook with top level leadership
• David Murray, CEO 199x – 2005– blamed technology sector for the
“tech wreck” in 2002 – Mainstream $300 m
• IT-driven innovation hard won.
• Ralph Norris CEO 2005 – 2012– We are going to rebuild this bank– Total systems replacement– Total banking process overhaul– Total executive focus on goal
• From 2008 to 2013– Profit up 8%(13), 11%(12), 13%(11)– Share price up 31% (1y) 79% (5y)– Satisfaction – market leader
Four key elements of business capability• People – who participate in business
events• Process – what business events take place• Structure – where business events happen• Technology – enabling and recording
events
IT enables your business capability• Your entire value chain• Your supporting capabilities• But it is not autonomous, or omnipotent• Digital transformation involves more than
just adopting digital technology!
• Business capability development and change
• Process• Technology• Structure• People
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People
Tech-nology
Process Structure
Business Capability
People
Tech-nology
Process Structure
New or Improved Capability
Based on H.J. Leavitt’s Model of organisational change, published in 1965.
Achieving Digital Transformation requires…• Comprehend the current and future change in the market:
– As others are driving it;– As you will influence it;– Accounting for uncertainty;
• Conceive your evolving business model and capability:– Place in the market;– Value proposition;– Mode of operation;– Continuously updating as change unfolds;
• Orchestrate transformational change:– In your business;– In your business ecosystem;– Addressing the four fundamental pillars of change;– Constantly adjusting for external events.
• Digital Leadership is the capability of (business) leaders to identify and realise opportunity for (business) growth and value through effective, efficient and acceptable use of Digital Technologies (IT).
• Digital Leadership:– seeks technology enabled opportunity to reinvent the business;– seeks technology enabled opportunity to expand and disrupt markets;– understands how customers, suppliers, competitors and regulators are
using technology to advance their own interests;– energises and focuses the organisation on a new and evolving vision;– does not need deep technology skill – just the ability to see the
potential in technology;– understands that success is not in technology delivery, but technology
enabled business transformation;– organises, engages and focuses the organisation for change;– activates all resources for change.
Reframing ISO 38500 Governance of ITfor Digital Leadership & Transformation
ISO 38500 Definition:• (Corporate) governance
of IT is the system by which the current and future use of IT is directed and controlled.
• The current and future use of IT includes digital transformation of the organisation and the organisation’s participation in digital transformation of the marketplace.
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Market
Evolution
Digital EraGovernance
Management of Digital Business Transformation - Digital Leadership
Some questions for you to ask, derived from the principles• Responsibility
– Do your executives, managers and staff have a clear understanding of their role in respect of planning, building and running a successful 3rd sector organisation in the digital era?
– Who are the significant actors external to your organisation who will play a significant part in setting and realising its digital era agenda?
• Strategy– How is your organisation tackling the essential task of planning its
journey into a digital future over which it has little control?– How complete is your understanding of the evolving landscape in
which you, your peers, your clients and other actors are moving inexorable toward the digital future?
Some questions for you to ask, derived from the principles• Acquisition
– How do the plans for evolution of your organisation exploit new digital opportunity to create improved business capability, with particular reference to evolving the business model and practices?
– How do the decision-making arrangements in your organisation enable timely and decisive action to invest in, redirect and terminate technology-enabled change initiatives?
• Performance– How deeply are your organisation’s leaders engaged in oversight
and control activities to ensure success of initiatives that are delivering digital era capability and digital transformation?
– To what extent do gaps in capability and weakness in currently used technologies limit the ability of your organisation to remain relevant and be successful as the digital era unfolds?