2014 Digital Leadership report

Transcrição

Accelerating local
innovations while boosting
global synergies
The 2014 Digital Leadership Report
What’s next.
Table of Contents
Methodology
Introduction ................................................................................... 3
2
Survey Results ............................................................................. 4
Profiles of Digital Leaders ......................................................... 7
Fabrice Benaut, IFR........................................................................ 8
Paolo Daperno, illycaffè SpA ...................................................... 9
Federico Florez, Ferrovial ............................................................ 10
Mark Foulsham, esure .................................................................. 11
Anita Gjesbakk, National Collection Agency of Norway ...... 12
Rui Gomes, Hospital Fernando Fonseca E.P.E. ....................... 13
Cécile Gonfroid, Radio Télévision Belge
Francophone ......................................................................... 14
Agustín González, Prosegur Compañía de
Seguridad S.A. ........................................................................ 15
Maarten Hillenaar, the Central Government of
the Netherlands .................................................................... 16
Vincent Léaux, City of Vélizy-Villacoublay .............................. 17
Eric Lippert, Lombard International Assurance S.A. ............... 18
Fernando Lucero Batalla, IBERDROLA S.A. .............................. 19
Nuno Miller, Farfetch Ltd. ........................................................... 20
Alexandre Ramos, Lusitania Companhia
de Seguros, SA and N Seguros .......................................... 21
Daniele Rizzo, Autogrill spa ........................................................ 22
Frank Stockx, ING Belgium ......................................................... 23
Jeroen Tas, Philips Healthcare ................................................... 24
Günter Weinrauch, ADAC e.V. .................................................... 25
Next Steps: Building a results-driven CIO community ....... 26
The findings in this report are based on two
principle sources of original data: survey data
from 89 Chief Information Officers (CIOs) from 10
European countries and in-depth interviews with
18 of Europe’s CIOs.
The survey questions are in part based on the
seminal work of Weill and Worner (2009) studying
how the roles of CIOs have changed, on questions developed last year in collaboration with
Joe Peppard, professor at the European School
of Management and Technology in Berlin, as
well as on questions developed in collaboration with Jeanne Ross, Director and Principal
Research Scientist at the MIT Sloan School’s
Center for Information Systems Research. The
brief survey asked participating CIOs to estimate
what percentage of their time in 2013 they and
their team spent across three general activities:
Managing and innovating delivery of IT services;
Managing and innovating business processes; and
Improving and innovating products and services
for external customers. In addition, participants
were asked to estimate what percentage of the
time spent on each of the three areas of activity
involved working with colleagues from the rest of
the business. Another set of questions asked them
about digitization. From April to May of 2014,
CIONET country offices solicited members to
participate in the brief survey. Over 110 member
CIOs participated. The results were first cleaned
(e.g., incomplete surveys were removed) and then
analyzed in detail.
In addition to the survey data, the authors conducted in-depth interviews with 18 CIOs. These
CIOs were selected by CIONET Country Offices
based on the winners of national awards for CIOs
of the Year. Building on their survey responses, the
authors asked interview participants for examples
of how they lead teams to achieve and sustain a
significant range of accomplishments. Another
set of questions was around what key skills are
necessary to fulfill each type of activity effectively
and how their organizations foster such skills.
Acknowledgements
This report was authored by Frederic De Meyer,
Program Director at CIONET, and Nils Olaya
Fonstad, Associate Director, INSEAD Faculty &
Research. This report and the research it is based
on would not have been possible without the
generous support of many people. The authors
greatly acknowledge the CIOs who took the time
to complete the survey and especially the CIOs
who took time from their busy schedules to be interviewed and their colleagues who helped review
the profiles. Special thanks to Hendrik Deckers,
Amandine Gatelier and Mieke Pauwels of CIONET,
along with the many leaders of CIONET’s Country
Offices. The authors are also grateful for the support of colleagues at INSEAD, Virginie BongeotMinet, Nurina Merdikawati, Aung Myint Thein, and
Eduardo Rodriguez Montemayor as well as for
Karel and his team at Echtgoed for designing the
report.
Introduction
What strikes us when reviewing the
profiles of the 18 finalists of this year’s
‘CIO of the year’ contest included in this
report, is the extent with which these
CIO’s are now embedded in all the
aspects of the operational and strategic
evolution of their organization. Some
have moved on to other (non-IT related) leadership roles, others have been
granted with additional responsibilities
that go well beyond the management
of ICT. Still others have initiated new
projects and ideas that have a substantial impact on the bottom line business
growth of their companies.
Chief Information Officers
are earning their role as
business leaders first and
foremost
We see this as a genuine sign that
through their vision and accomplishments, today’s digital leaders are considered to be business leaders first and
foremost. But more than this, we also
see this as an indication of a fundamental shift in the way organizations perceive the role of technology in general,
and digitisation more specifically, in
their overall strategy.
Now more than ever, so it seems, the
digital strategy is at the core of the
business strategy. This dramatic shift
originates from a renewed focus of the
CIO’s. The survey we conducted for
this report shows that CIOs, in average, spend at least 40% of their time
working with people outside of their IT
organization. They expect this amount
to increase in the coming years.
However, our in-depth interviews with
the finalists uncovered many more ways
in which CIO’s drive their IT team closer
to ‘the business’. Most of them require
from their IT employees to physically sit
next to non-IT employees for a couple
of days per year, in order to increase
their business acumen. Others go even
further and organize genuine ‘hackaton’
days with employees from other divisions, working together on strategic
technological initiatives, with quite
some impressive results.
Reflecting on our conclusions from
the previous editions of this report, we
see plenty of reasons to be optimistic about the future of digital leaders.
As the examples in this report show,
these leaders and their teams are now
an integral part of the business. Not
merely a reactive support function, but a
proactive strategic asset that brings their
businesses to the next level.
We hope the examples in this report
will inspire other companies to put their
digital strategy at the forefront of their
business, and provide ideas to other
digital leaders on how to shape the
future successes of their organisations.
Frederic De Meyer
Program Director, CIONET
Nils Fonstad
Associate Director, INSEAD
3
Survey Results
4
Consistent with the past three years of
surveying CIOs, and contrary to traditional perceptions of what CIOs do, our
data show that CIOs spend a significant
percentage of their time outside of
managing ICT services.
A
B
C
As organizations increasingly depend on
ICT for both their operations and their
innovations, they need digital leaders
that can simultaneously lead teams in
the following three areas.
Ensuring ICT services are delivered
across the organization at the
desired cost and service levels;
Managing and innovating business
processes; and
Improving and innovating products and services for external
customers.
We have identified three types of CIOs,
depending on what general areas of
activities they spend a greater than
average time percentage of their time
in. Please note that in the majority of the
cases, CIOs spend some percentage of
their time in all three activities. The key
distinction is in what activity they tend
to focus on most, relative to their peers.
1
2
3
Technology-focused
Business
Process-focused
External
Customer-focused
CIOs and IT Groups that are primarily focused on ensuring that
IT infrastructure, applications, and
related services are delivered across
the organization at the desired cost
and service levels.
CIOs and IT Groups who spend a
greater than average percentage
of time managing and innovating
business processes, such as shared
services, global supply chain, and
operations.
B
B
+
C
+
< 50%
B
>= 50%
and
- C >0
C
Types of CIOs in 2014 and anticipated in 2016
1
36%
3
25%
36+39+25A 15+49+36A
2014
2016
2
39%
3
36%
1
15%
2
49%
CIOs and IT Groups who spend a
greater than average percentage
of time improving and innovating
products and services for external
customers.
B
+
B
>= 50%
and
- C <= 0
C
In 2014, the 2 most common types of CIO were
Technology-focused and Business Process-focused
CIOs, representing respectively 36% and 39% of the total
CIO population. A majority of CIOs reported that over
the next couple of years, they anticipate that they will
be expected to spend more of their time either managing and innovating business processes or improving and
innovating products and services for external customers. Several reported that they expect their time to shift
so significantly that they will become a different type
of CIO. As a result, by 2016, only a sixth of CIOs will be
Technology-focused; about half expect to be Business
Process-focused; and just over a third expect to become External Customer-focused. As CIOs expect to
take on more responsibilities, the skills they and their
teams will need to draw on to accomplish those responsibilities will also expand.
3-D Expertise
As the survey data and profiles of CIOs
illustrate, effective digital leaders have
developed a “t-shaped” portfolio of
skills, representing three dimensions of
expertise.
-- A vertical set of competences
that represents expertise or “deep
knowledge” in systems of ICT, such
as enterprise architecture; IT governance; application development;
security and data analytics;
-- An overlapping vertical set of competences that represents expertise in
business operations, such function
and operational expertise; product
expertise; customer and sector
expertise; and
-- A horizontal set of “transversal competences” that represents expertise
in developing organizations, such
as developing a compelling vision;
design and experimentation; and
negotiation and change management. This set of competences is
relevant across a variety of situations
and enable them collaborate effectively across multiple boundaries
(e.g., organizational, geographic,
occupational, etc.).
Digital leaders spend on average 40
percent of their time engaged with nonIT colleagues. Our data reveal that for
all 3 types of CIOs, working with non-IT
colleagues is an important aspect of ensuring ICT services are delivered across
the organization at the desired cost and
service levels; managing and innovating
business processes; and improving and
innovating products and services for
external customers. Both Technologyfocused and Business Process-focused
CIOs, spend at least 45% of their time
managing and innovating business
processes with non-IT colleagues. All
three types of CIOs spend at least a
third of the time they spend improving
and innovating products and services
for external customers engaged with
non-IT colleagues. In short, the data
underscore a point made by all of the
18 CIOs profiled in this report: organizations that want to enhance the business
value of IT must share that responsibility
with IT.
Last year, % of total time working with
non-IT colleagues spent on
A
B
C
1
ICT services
business processes
external customers
A
B
C
2
A
B
C
3
A
B
C
370+630=
450+550=
350+650=
230+770=
550+450=
390+610=
280+720=
450+550=
490+510=
37%
45%
35%
23%
55%
39%
28%
45%
49%
5
Digital leaders are best qualified to
orchestrate competitive agility.
6
As organizations rely more and more
on digital technologies to operate and
innovate, more of what they do becomes interdependent and they must
contend with a fundamental paradox
of agility: sustained local agility requires
global coordination. In highly digital and
interdependent environments, those
who can sustain competitive agility are
those who have figured out the optimal
balance between providing local project
teams with the autonomy to develop
solutions specific to local needs and
coordinating synergies across local
solutions. When local project teams
within an organization are not suffi-
ciently coordinated with each other, the
organization accumulates disparate IT
solutions, creating “digital spaghetti” –
islands of technology, digitized business
processes and data that are increasingly expensive to maintain, difficult to
integrate and scale, and paradoxically,
inflexible. In fact, this “digital spaghetti”
soon presents a significant source of
operational, financial, and strategic
risk to the organization. Yet, if global
coordination consists of too many
standards and governance processes,
then local project teams are unable to
innovate solutions that are sufficiently
specific to local needs. The challenge
then is for organizations to quickly and
continuously learn the optimal balance
between local autonomy and global
coordination.
The profiles of the 18 successful digital
leaders in this report offer several examples of how Chief Information Officers
help organizations achieve and sustain
competitive agility.
Our survey data reveal several factors
that distinguish competitively agile
firms.
Two of the most significant factors that distinguish competitively agile firms are
digitized platform maturity and program management.
Digitized Platform Maturity
The degree with which the
components of a firm’s digitized
platform have been accumulated in a coordinated manner,
with sufficient standardization
and sharing of technologies,
digitized business processes and
data across business units.
(from a scale of 1-5)
An important distinction is digitized
platform maturity, which refers to the
degree with which the components of
a firm’s digitized platform have been
accumulated in a coordinated manner,
with sufficient standardization and sharing of technologies, digitized business
processes and data across business
units. When a firm has “digital spaghetti,”
it has an immature digitized platform.
Many of the digital leaders profiled in
the report inherited immature digitized
platforms and focused a significant part
of their time in maturing their organization’s digitized platforms. In order to
72+28+
61+39+
3,62
Competitively
Agile
Organizations
3,06
Insufficiently
Agile
Organizations
64+36
45+55+
2,57
Program Management
Grouping of interdependent
projects under a single manager
who can trade off resources
among them.
(from a scale of 0-4)
1,80
accelerate the maturity process, they
worked closely with non-IT colleagues
to speed up the necessary organizational changes.
Another important distinction is program management, which is an effective mechanism to ensure that non-IT
leaders learn how to and share responsibility for prioritizing resources. When
local projects are insufficiently coordinated, IT is often burdened with doing
too many at once, thereby risking all
with delays, over budgeting, and poor
execution. Several of the CIOs profiled
in this report draw on program management to help the rest of the business
take responsibilities for prioritization.
Organizations often mistake agility
with simply local autonomy, yet Chief
Information Officers know too well that
sustained competitive agility requires
both rapid local innovations and global
synergies, such as digitized platform
maturity. Our survey data underscore
that any organization struggling to
become competitively agile would do
well to seek digital leaders such as those
profiled in this report.
Learning from Accomplished
Digital Leaders
In this section, we present 18 profiles of
CIOs who clearly illustrate how digital
leaders are essential to the success
of their organizations and how they
are creating value for their customers
and partners. Featured in the following profiles is an impressive range of
business value created by the CIOs,
their ICT departments, and colleagues
from the rest of their organizations.
These profiles highlight the importance
of fostering digital leaders for European
organizations to succeed and compete
in today’s global and digital economy.
Fabrice Benaut
IFR
Paolo Daperno
illycaffè S.p.A
Federico Florez
Ferrovial
Mark Foulsham
esure
Anita Gjesbakk
National Collection Agency of Norway
Rui Gomes
Hospital Fernando Fonseca E.P.E.
Cécile Gonfroid
Radio Télévision Belge Francophone
Agustín González
Prosegur Compañía de Seguridad S.A.
Maarten Hillenaar
The Central Government of the Netherlands (CIO from 2009-2013)
Vincent Léaux
City of Vélizy-Villacoublay
Eric Lippert
Lombard International Assurance S.A.
Fernando Lucero Batalla
IBERDROLA S.A.
Nuno Miller
Farfetch Ltd. (CIO from 2011 until 2014)
Alexandre Ramos
Lusitania Companhia de Seguros, SA and N Seguros
Daniele Rizzo
Autogrill S.p.A
Frank Stockx
ING Belgium (CIO from 2011-2014)
Jeroen Tas
Philips Healthcare
Günter Weinrauch
ADAC e.V.
7
Fabrice Benaut
IFR
8
IFR
A selection of recent accomplishments
IFR is a global market intelligence company supplying marketing
intelligence to Fortune 500 manufacturers, retailers, distributors
and advertising agencies around the world.
--
-IFR is fully integrated into the GfK Group of companies. GfK is a
global market research firm headquartered in Germany. In 2013,
GfK generated 1,5B€ in turnover and employed over 13,000
employees. It is the 4th biggest company of its kind, and has
presence in over 100 countries.
A 360° approach to
collaboration
With 30 years of experience within the same
company, during 16 of which he has served
as CIO, Benaut had the chance to develop a
solid and original vision of his role as a CIO,
and develop himself as a thought-leader on
his favourite subject: Big Data.
Throughout his years as a CIO he has seen
the role evolve tremendously. “It is undoubtedly the function that has been subject to the
greatest changes”, he explains. And according
to Benaut, this function will even become
more important in the future. Where the CIO
is now very often a musician, he will become
the orchestrator in the future. However, this
demands a very new approach from the CIO,
where he is not necessarily leading projects
any longer, but participates and contributes
in multiple others, sometimes as a leader,
and sometimes not. He increasingly needs to
function in a matrix system, and contribute
according to the match between his specific
skills and the concrete requirements of the
project.
But what essentially will drive the increased
relevance of the CIO function, according to
Benaut, is Big Data. The key is not in maintaining and storing data, but to make them ‘talk’
and answer business questions that previously
were not asked. It is only in this way that IT
can maximize its relevance to the business.
“The new task of the CIO is to simplify what,
at first, looks complicated” Benaut says.
This vision is certainly influenced by the
professional environment in which Benaut
evolves, since data –and the comprehension of data- is the liveblood of the company
--
Developed a 360° approach to his organization, which
changes organically according to the skills and resources
needed for specific projects;
Developed an award-winning Big Data solution for GfK and
constantly works with external clients (sometimes in cocreation) to help them in their Big Data needs;
Integrated ICT environment of 16 acquired companies spread
over 60 countries.
Benaut works for. Unsurprisingly, Benaut has
spent major parts of his time as CIO with the
clients of IFR and its mother company GfK.
For instance, in close partnership with these
clients, Benaut and his team developed dedicated software to analyse the entertainment
market, and co-created a platform to provide
marketing reports for the book, video and
music markets.
But Benaut took on some important internal
challenges as well. From 2011 to 2013 the
major focus of Benaut was on the harmonization of the 16 companies IFR acquired
throughout its history, spread over 60
countries, as well as the integration of IFR
into GfK. In this capacity Benaut had the
overall responsibility over product-services
definitions, catalogue of services and usage
improvements, and the reduction of duplicate
processes and platforms.
The biggest realization of
Benaut, however, concerned the implementation
of a complex data integration platform to address Big
Data issues, such as data
variety, volume, velocity
and veracity, at IFR and GfK.
This new editor solution
was co-created by Benaut
and a software company,
and received several awards. Thanks to this
new solution business users can now provide
their own business rules that enable them
data collected into relevant, decision-driven
knowledge.
his organization works. This entails a holistic
view of the skills and expertise, the resources
available (including crowdsourcing), the value
(including things like brand image and reputation) as well as the opportunity to co-create
and co-produce projects and solutions.
In the highly organic type of organization
Benaut created the CIO can be project leader
or provide support, dependent on the type of
projects and the stage in which the project
resides. “The common goal of the project
team is the best way to ensure its success”,
according to Benaut.
Benaut has since collaborated on 2 books
about Big Data, and is a frequent speaker
about this topic at international events. He is
also involved in designing job definitions for
Big Data. Although he calls himself an intrapreneur, he is also increasingly involved with external
startups in the field of IT and
big data.
The fundamental
role of the CIO
is changing
dramatically from
a musician to an
orchestrator.
His experience and expertise in terms of Big
Data led Benaut to develop what he calls a
“collaborative 360° approach” to the way
Paolo Daperno
illycaffè S.p.A
illycaffè S.p.A
In 1933, Francesco Illy developed the modern espresso
machine in Trieste, Italy, the Adriatic port town where coffee first entered Europe. In 2013, it had over 1000 employees worldwide and its gross revenue reached 373.9 M€.
Available in over 140 countries, with more than 200 espressamente illy coffee bars locations worldwide and more
than 1500 independent cafes participating in its global
Artisti del Gusto network, 60% of illy coffee is enjoyed
outside of Italy. The company also runs over 20 Università
del caffè (“University of Coffee”), providing hands-on instruction to coffee growers, and guarantees above-market
prices to growers who meet its quality standards.
--
Boosting the digital
caffeine of the business
Since joining illycaffè in 2008, as both CIO and
Business Process Director, Paolo Daperno and
his team of about 25 employees have focused
IT on strengthening the company’s ability to
sense and respond quickly to the demands of
consumers and customers. “Our fundamental
role,” explains Daperno, “is to connect the
business to technology by explaining how
technologies can be exploited to serve business objectives.” In 2011, as part this objective,
they launched the Global Web Platform project
to build a robust web platform to support
a variety of digitally-enabled capabilities:
provide a rich, seamless and cohesive brand
experience across illy sites, e-shops and social
networks; establish one-to-one relationships
with customers, leveraging “Circolo illy” (a
vast online community for illy fans) and other
social networks; consolidate e-shops on a
single, global platform; and create a single,
unified business-to-consumer (B2C) database
with CRM capability. Within a year, they had
accomplished all but the B2C database. By
2013, the database was in place, enabling illy
to connect internal and external data, from
external partners such as suppliers and logistics
partners. With the new platform, the company
has been able to develop greater intelligence
on customers. It is now a key platform for
B2C marketing campaigns; next steps will be
connecting on and off line business and supporting the coffee cluster experience at Expo
2015 (Milan).
With the Global Web Platform in place,
Daperno and his team have been able to
introduce more quickly and more robust
capabilities. Illy recently decided to develop
the capabilities to focus the retail strategy,
--
---
Implemented a Global Web Platform from which the IT team then
helped illy provide a rich, seamless and cohesive brand experience
across illy sites, e-shops and social networks; establish one-to-one
relationships with customers; consolidate e-shops on a single, global
platform; and create a single, unified B2C database with CRM capability.
Any new business functionality can now be applied to more than one
country (e.g. coffee continuity program for consumers) is only paid
once.
Collaborated in the development of two new models of digitally enhanced coffee machines.
Built illy’s capabilities to enhance operations by generating and analyzing data.
requiring integration of the Point of Sales (POS)
in each store with the on line experience. First,
Daperno and his team integrated the POS with
their ERP and reporting system for the directly
managed stores. Now, they are implementing cross channel functionality. Daperno
emphasizes that he and his team “would not
have been able to react to business requirements without having a clear vision and state
of the art of the Global Web Platform. The next
step will be to strengthen consumer loyalty
management. It’s a process of continuous
improvement.”
As part of the process introducing digitallyenabled capabilities, Daperno and his team
have played a critical role in redesigning
processes. They helped shape an efficient process to manage payment from consumer and
logistics/shipping to fulfill customer orders.
They have also promoted
collaboration across business units, such as helping
direct channel managers/
directors in Italy, Europe
and China coordinate their
strategies and leverage
more from each other.
They also helped to better
integrate teams sitting in
US with those in Italy.
the committee in 2011 and it meets 8-10 times
a year.
As illy learns to innovate with IT, Daperno has
developed his IT team to better support digital
innovation. Within the IT group, he created a
new unit to support digital innovation, ecommerce development and customer-relations
management. Members of Daperno’s team
collaborated in the prototyping of two new
coffee machines. They contributed in two
fundamental ways. First, they helped the
team exploit the latest machine-to-machine,
WiFi, and data warehousing technologies.
Second, they are creating a data gathering and
standardizing process that was independently
of the model of the machine, avoiding ad-hoc
infrastructure development per each machine.
Daperno insists that these types of fruitful
collaborations “confirm that only when IT and
business work hand in
hand do projects succeed
beyond expectations.”
We are agile and
continuously
improving because
we took the time
to develop a digital
platform and
governance model
Another way Daperno
promotes synergies across
the company is by hosting
an IT Steering Committee where business
colleagues, such as the CEO, the CFO, as well
as those responsible for supply-chain management and customer relations, meet to share
how they are using IT; prioritize projects and
facilitate their execution; and allocate resources: people, time, money. Daperno introduced
Finally, as part of their collaborative process, the IT
group continuously seeks
to improve how it operates. For each new project,
for example, members
challenge themselves to
simplify existing processes
and organization in order
to increase efficiency and
flexibility; rationalize infrastructure and business systems; and increase
collaboration among countries and departments, centralizing activities and involving
everyone in common business projects. In this
manner, Daperno and his team aim to enhance
even further the digital capabilities of illy.
9
Federico Florez
Ferrovial
10
Ferrovial
Ferrovial is a Spanish group operating in infrastructure projects.
The group has four areas of activities: Services (including facility
management and waste services); Toll roads; Construction and
Airports (among which Heathrow). In 2013, its revenues grew
9% to reach €8,2b. It employs over 66,000 people worldwide,
and 78% of the ebitda comes outside of its home market Spain.
Ferrovial’s goal as a leading developer and operator in the infrastructure and services sector is to continue to shape the future
of society with a continuous focus on talent, integrity, safety,
excellence and innovation.
--
Leading by innovating
digitally
In 2008, when Federico Florez was appointed
as CIO of the industrial giant Ferrovial, he faced
a tremendous challenge. Due to the huge
number of historical acquisitions there was
no such thing as a centralized IT department.
Rather, Florez inherited a heterogeneous set of
10 local IT departments, each working with its
own systems and different vendors and serving
over 500 internal companies. Furthermore,
these IT divisions were purely IT-focused
organisations, rather than business-driven ICT
organisations.
Florez took a very structured approach to
tackle this challenge. His first step was to
simplify, align and integrate all the IT functions into one coherent, central business unit.
To achieve this, he undertook a vast array of
initiatives. One such initiative was to externalize several functions like infrastructure and
communications, resulting in savings of up
to 20%. For this project Florez and his team
received the Award of best outsourcing project
from the European Outsourcing Association.
Florez also centralized all the IT purchases at
group level to benefit from synergies and fully
leverage the buying power of Ferrovial. This
resulted in a cost savings of 25%. This effort
was so successful that Ferrovial decided to
nominate Florez as chairman of its Purchasing
Committee with responsibilities over all purchases at Ferrovial.
Florez also developed a highly strategic
approach to cloud services. He transferred
two key functions, Human Resources and
Purchasing, onto the cloud. Transferring HR –
---
--
Cost savings of 15-20% in infrastructure and communications with outsourcing;
Moved all HR and Purchasing systems in the Cloud in just 6
months;
Ensured business alignment of IT by creating a ‘business IT’
function, resulting in an customer satisfaction increase from
business customers for 4 to 7 (on a scale of 10) in three
years;
Established a new culture and process of innovation, leading
to 500 new ideas every two years, of which 35 become new
projects with impact in the P&L.
and 70,000 employees – to the cloud took 6
months instead of the anticipated 18 months
for such a project. This time-saving resulted
from observing a simple
yet hard-to-follow rule:
not to be misled into
believing that cloud
service providers have
no limits to their offering.
As Florez put it himself,
“We adapted ourselves to
the services in the cloud,
and not the other way
around”.
approach, taking some risks, and eliminating
projects early if they showed no value to the
P&L of Ferrovial. In many cases the projects
implied working with
startups, establishing new
types of partnerships and
experimenting with new
business models such as
open innovation.
To rapidly innovate
internally and with
external partners,
we streamlined
and consolidated
our operations and
developed a global
ICT-based platform
However, the major
challenge Florez needed
to tackle was to turn IT
from a cost center into
a business enabling and supporting function.
To achieve this, Florez created business line IT
functions, whose mission consists of working
together with business unit to make sure IT
serves the needs of that business. As a result, in
just three years, customer satisfaction scores
for the IT division (another process introduced
by Florez) rose dramatically from 4 to 7 on a
scale of 10.
Having accomplished significant cost reductions and enhancing the business impact of IT,
Florez was in a stronger position to expand the
strategic role of IT at Ferrovial. He proposed to
the CEO of Ferrovial to establish an innovation
function. Today, it consists of 50 employees
who investigate about 100 ideas and launch
30 innovation projects a year. To achieve this
success, Florez introduced a new approach
to innovation at Ferrovial. The new culture of
innovation implied implementing a startup
Making this happen in a
risk-averse environment
took extensive efforts in
educating both executives and middle management in the value and
process of innovation.
This new approach to
innovation has led to the
creation of new and profitable business lines.
One example is the development new ways to
monitor and benchmark the energy usage of
buildings, which is now being commercialized
and which accelerated Ferrovial’s entrance into
the energy efficiency market worldwide.
The combination of his IT and innovation roles
has led to a new job title for Florez. He is now
the ‘Chief Information and Innovation Officer’
of Ferrovial. In the future Florez expects to
leverage both technology and innovation even
further to strengthen the competitive position
and sustain the business growth of Ferrovial.
Open innovation will be a vital aspect to his
future work since, as he mentions: “99% of
the ideas for our business growth sit with the
customers”.
Mark Foulsham
esure
esure
In 2000, Peter Wood CBE, founded esure to offer competitive insurance coverage using the Internet as its primary sales
channel. His aim was to harness internet efficiency to give a
better deal to responsible drivers and careful homeowners. From
the outset, esure’s goal was to offer superior service - on both
the internet and phone - while using technologically advanced
systems and underwriting to keep premiums low.
--
--
-In just a few years, esure became one of the fastest growing insurers ever, with over 1 million customers joining them before its
5th birthday and less than 13 years after launching the company
floated on the London Stock Market with a market capitalisation
of over £1.3bn.
How IT and business go
hand in hand
Operating in a multi-channel environment
is always challenging to anyone responsible
for IT. So what to think about an IT team that
deliberately creates an additional sales channel
for its organization?
This is what happened at insurance company
esure, where the IT team undertook the complete transformation of the customer-facing
web platform in order to make it mobileenabled and optimised for ‘small screen sales’.
Foulsham and his team saw mobile commerce
as a growing demand of esure’s customers
and hence an early mover opportunity for
the organization. An IT team anticipating new
business opportunities is no small feat, but the
true innovation was the unique way Foulsham
managed this dramatic transformation.
Firstly, the transformation was realized on top
of the existing legacy web platform. Foulsham
and his team found ways to prepare the
platform for esure’s mobile customers without
re-engineering any of the previous investments
it had made on its web platform. This dramatically reduced the total cost of this transformation by re-using the historic investment in the
company’s systems.
More impressive is how the transformation
itself was realized. Foulsham and his team
organized a series of ‘hackathons’ to manage
this project from the scoping phase through
to testing. This hackathon involved employees
from different business units of esure, all of
which were selected based on their specific
expertise and ability to provide maximum input
Created a new (mobile) quote and buy channel for esure in
just three months, a project that would have taken over a
year using a traditional project approach ;
Adopted a unique ‘hackathon’ methodology which includes
employees from multiple disciplines in the organization
to design and deploy new technology projects in short,
intensely focused timescales;
Alignment of IT with business strategy by requiring his team
to constantly look for best practices in other companies and
industries, and have them sit next to business functions at
least once a year.
to the project. Foulsham: “We recognized
that this ultra-agile approach needed to be
co-located, iterative and resourced by the
best subject matter experts with a ‘can-do’
attitude”. This team then came together in
three intensive 4-day sessions to work on all
aspects of the project and make sure it would
align smoothly with the business imperative.
Most of all, the distinct approach ensured a
delivery of the project in just three months.
“A classic approach could have meant over a
year’s worth of project work. On completion
we had overtaken our competitors in the level
of mobile sophistication,” says Foulsham, “the
way in which everyone worked collaboratively
towards a common goal was fantastic!”
This effort has resulted in a marked growth in
mobile sales revenue for esure at a time when
key competitors are still working to develop
truly mobile optimised journeys. Just as important to Foulsham, it created a genuine team-spirit
across the multidisciplinary
employees involved that the
company was able to draw
on for subsequent projects.
The team continues to deliver innovation opportunities
that social media may bring
to esure, such as enabling
customers to purchase insurance through Facebook.
The diversity of this team,
in tandem with business
colleagues, is certainly key to the success it
generates. After all, as Foulsham puts it, “there
is no monopoly on good ideas”.
the culture at esure, where the executives –
including Foulsham – meet every morning for
half an hour to go through the previous day’s
results, all using iPAD to assess business performance. It is also an embodiment of the way
Foulsham perceives his role and responsibility
as an IT leader, where “simplicity is key”.
“I spend a lot of my time with the business”,
Foulsham told us. It certainly helps that in the
nine years he has been in the company, he
has been in direct touch with many parts of
the organization, from Sales and Operations,
Customer Service, Fraud and Cyber criminality
to Procurement, which he still heads today.
This also explains a lot about how he sees
the mission of IT at esure: Foulsham aspires
to have IT completely correlated with the
business strategy of esure. To realize this,
Mark and his team relentlessly look for lessons
from other companies and
industries both within and
outside its business sector. He tasks his team with
staying in touch with market
trends and opportunities,
but equally important is he
requires from his team to
physically set next to a business function for at least one
day a year.
Be prepared
to fail fast and
move on
The hackathon ethic is a fine example of
As an IT leader he also
deems it critical to think
ahead on which parts of the overall business
will be affected by the changes initiated by IT,
and he is constantly on the outlook for synergies between all the requests he receives from
the business.
11
Anita Gjesbakk
National Collection Agency of Norway
12
National Collection Agency
The Norwegian NCA’s task is to collect debt for
35 agencies in the Norwegian government. In
addition they operate collection systems for the
bailiffs and manage accounting the Police. The
NCA is a subordinate agency organized under
the Ministry of Finance. The NCA’s task is to
collect on various state claims, such as police
fines, debt collection from defaulted government taxes or other government debts. With
370 employees, the NCA collects about 480M€
per year from the management of more than
190 different types of claims from 35 clients.
The NCA has bailiff authority.
--
Designing a self-service
based government services
Governments all over the world are under tremendous pressure to deliver more and better
services to their citizens, at an ever-decreasing
cost. To further complicate matters, citizens
are demanding to communicate with governmental institutions through a variety of new
channels. Face-to-face and telephone are no
longer the most sufficient nor efficient ways
of communicating – for both citizens and
government institutions.
The National Collection Agency of Norway
forms a fine example of how a government
agency is effectively responding to this challenge. The web-based, self-service system it
has built enables debtors to the Norwegian
state to grant themselves installment plans and
arrange deferred payments, but also automises
to a great extend the complaints and claims
citizens have with the administration. Through
a transparent system, the debtors can now
see the status of their claims, the payment
rate and the salary deduction performed by
the state. This project has been rewarded with
the “Rosing Award”, the Norwegian Computer
Society’s award for the most user-friendly
webpage.
However, the aim of this transformation was
not only to smoothen the services brought to
the citizens, but to optimize the internal processes as well. As part of the second endeavor,
Gjesbakk and her team initiated a project to
simplify the management and maintenance
of over 1000 letter templates the agency used
to generate. All of these are now managed on
a single module, and are optimized through
--
--
Implemented a self-service tool for debtors of the Norwegian state to
manage their claims, complaints and communication with the agency in an
automated way, resulting in less complaints and overall transparency to the
citizens;
Simplified processes and documents for internal use through technology,
hereby increasing the level of service to the clients while reducing the number of customer service agents needed;
Ensured a strong collaboration with the business part of the organization,
through constant evaluation and communication, by having the CIO as a
member of the top management group, by making sure to recruit people
from business to work in IT, and by asking IT people to physically sit next
to customer-facing employees in order to understand their challenges and
needs.
integration with email, text messages and
invoices.
The vision of Gjesbakk has no doubt been
instrumental to this success. The tools and
processes that were created were preceded by
extensive research about the exact wishes and
behavior of the end customer. While during
the design phase, the systems were regularly
tested by fictitious customers. The exact and
profound knowledge of the user was absolutely key, according to Gjesbakk, but so were
other factors.
challenges and problems they are facing, and
provide a technological answer to these.
Lots of things have improved thanks to the
work of Gjesbakk and her team. The selfservice tool for customer service has enabled a
better service with a reduced customer service
team, since this team now receives around 12%
less phone calls, letters and emails to handle.
The number of inquiries received through the
website has increased by 50%, at the cost of
inquiries through other channels.
The self-service system is likely the reason
why the voluntary phase of the debt collection
At least as important for this project just as for
has increased, while the number of instances
other projects Gjesbakk is leading, is the very
where debt was collected by coercive measstrong collaboration between her IT division
ures has actually decreased. The system has
and the business side of the agency. This is
done a great deal in making the salary deduckey to success – from the start the mission of
tion from the state more transparent, allowing
the agency was to be technology-driven, as
the debtors to check the calculation basis
well as to the IT mindedness of its CEO who,
of that deduction and acting whenever the
without being a gadget freak, understands the
information proves to be wrong – but these
importance of IT in the digital transformation
cases have been reduced significantly since
of government services and provide strong
the system was put in place. Overall, Gjesbakk
support to these transformations. But the
feels the eService reinforced the legal protecstrong collaboration is also fostered by some
tion of the debtors. The decline in number of
of the agility concepts Gjesbakk introduced.
complaints the agency receives is certainly a
Her emphasis is on continuous communicasolid indication of this feeling. Moreover, the
tion, evaluation and improvement. Equally
NCA has attained a reduction in collection cost
important is the business
per money unit at 35 %
acumen of the profesover the last five years. At
Continuous
sionals working in IT. To
the same time the colcommunication,
maximize this, Gjesbakk
lection per man year has
often recruits people
increased by 50 %.
evaluation and
from the ‘business side’
improvement are
of her organization, and
Going forward Gjesbakk
essential
to achieve and
demands from her staff
and her team will continue
sustain string alignment
that they would sit next
to be instrumental in the
between IT and the rest
to employees who deal
overall strategy of NCA
with customers, for them
– particularly its digital
of the organization.
to understand the real
strategy.
Rui Gomes
Hospital Prof. Doutor Fernando Fonseca (HFF) was created as a
public institution in October 2008, after 13 years under private
management. Currently, it has 2900 employees and about
750 beds serving the areas of Amadora and Sintra, near Lisbon
(about 600,000 inhabitants). While under private management, the hospital had accumulated a series of problems. Since
becoming completely public, the hospital has made a complete
turn-around. It is integrated with the country’s National Health
Services and has become a national role model to other hospitals and to the industry.
--
Using IT to significantly
enhance patient care
during tough economic
times
In 2009, when Gomes first joined Hospital
Fernando Fonseca, the institution had just
changed from a privately managed to a
completely public hospital. Under private
management, investments in IT were low
and uncoordinated and the IT landscape
had become “chaotic,” reflecting the inefficient and unsustainable manner in which the
hospital was operating more broadly. When
the government took complete control of
the hospital, the hospital’s Board of Directors
saw it as an opportunity to use IT to transform
the hospital into a role model for the industry. Unfortunately, at the same time, a global
financial crisis was affecting Portugal especially
negatively and in response, the government
slashed HFF’s budget for CAPEX and OPEX by
over 50%. Gomes and his colleagues at HFF
had to transform HFF with significantly fewer
resources than originally planned and IT was a
fundamental part of the solution.
Although HFF was working under significant
budget constraints, a clear indication of
the strategic importance of IT to the senior
management team of HFF is that the IT group
increased from 4 to 19 full-time equivalents.
To eliminate inefficiencies, and strengthen IT’s
capacity to deliver, Gomes and his team set
out to rationalize the IT landscape. They centralized all databases and application servers by
adopting a private cloud within the organization. They moved 80 percent of all the hospital’s 160 application servers onto the cloud and
replaced 500 desktops with cloud-enabled
ultra-thin clients, thereby allowing health pro-
---
Developed a low-cost high-quality Electronic Clinical Process
that enhanced patient and professionals safety and enabled
analysis of data to improve healthcare.
Rationalized and virtualized the IT landscape, and in the
process saved over 200K€ per year since 2010.
Established CI2, an internal competence unit that incubates
technological projects, fosters partnerships with universities and the industry, and stimulates the health information
systems market in Portugal.
fessionals to use their identify card to quickly
access, enter and share from and across hospital departments. These changes also helped
reduce the hospital’s carbon footprint.
In parallel, Gomes and his colleagues also succeeded in deploying a high quality Electronic
Clinical Process across all specialized clinical
services (about 30), accessible to over 500
health professionals and supporting staff working in Emergencies, Inpatient and Outpatient
Services. Traditionally, processes were too
bureaucratic and from the point of view of
patients, too uncoordinated. For example,
a simple request like purchasing inventory
needed around 3 weeks to be approved and
included a review by
the Board and multiple
approvals from several
departments. During the
process of receiving care
from HFF, patients interact with several stakeholders, from doctors,
to administrative staff,
to nurses and managers.
Unfortunately, there was
poor coordination across
the stakeholders.
The results of the Electronic Clinical Process
were impressive. Overall, Gomes estimates
over 200K€ per year since 2010, were saved
due to operational efficiencies. In addition,
the collaboration and data sharing enabled by
the platform fostered synergies, such as the
monitoring of influenza epidemics. In 2013,
the Emergency Department was able to track
and predict flu peaks and allocate resources
accordingly needed in advance for treatment,
thereby improving the treatment of outbreaks.
Gomes and his colleagues at HFF believe that
key to sustaining the transformation of HFF
and achieving even more with IT at the hospital
is to ensure HFF has digital leaders – people
who understand both
how hospitals operate and how develop
systems of IT. In 2010,
they established within
the hospital CI2 (http://
www.ci2.pt), an internal
competence unit where
hospital employees work
with software vendors
and universities to develop healthcare applications. Teams representing
a variety of stakeholders
and occupations collaborate on achieving
target and measurable results. In the process,
CI2 aims stimulate the development of health
information systems market in Portugal. Since
2009 until 2014, about 24 graduate students
had completed internships at CI2, of which
20% were employed by the hospital and the
rest are working in the healthcare sector.
The real value and
the real challenge
of virtualization is
changing, simplifying
and integrating the
business processes
that rely on IT.
To correct these problems, Gomes and his
colleagues at the hospital redesigned and
integrated key processes into a single portal.
The online portal allows for important supplies to be approved within a day rather than
several weeks. For example, if the cardiology
department needs to buy equipment, such as
an imaging workstation for daily diagnosis, the
directors who need to approve the request will
get an e-mail and with a click of the button
the requisition will be granted. The Electronic
Clinical Process also enhanced the process of
tracking and managing complaints.
13
Cécile Gonfroid
Radio Télévision Belge Francophone
Radio Télévision Belge Francophone (RTBF)
14
RTBF is the public broadcasting company of the French-speaking
community in Belgium. RTBF has the mission to provide its audience
with radio and television services that value news, cultural development, continuous education as well as entertainment. The programs
of RTBF are primarily based on its own production as well as the
promotion of original productions that enhance the culture and heritage of the French community and its regional specificities. As a public
company, RTBF is funded for 75% by the French Community, which
is also its supervisory authority. The remaining 25% of its revenue
originates from advertisement income and distribution rights.
Taking charge of IT to
become that strategy
engine of the business
Her passion for sports drove Gonfroid to
start her career at the French speaking public
broadcast company RTBF. There, she quickly
developed professionally, taking on a variety
of positions leading different aspects of managing TV channels. As she took on increasingly challenging positions at RTBF Gonfroid
developed another passion: technology. In
2009, her profound knowledge of managing TV broadcasting, in combination with her
drive for technological excellence, got her
to lead the freshly created ‘DGTE’ division,
a result of the integration of the technology
teams in IT and in Broadcasting.
From the start this was a highly strategic position. The emergence of new competitors with
different business models, such as Netflix and
Google, was putting tremendous pressure on
traditional broadcasters to realize substantial
efficiency improvements and to use technology in highly agile and innovative ways.
Gonfroid’s first priority was to get the basics
right. She was now heading a division that
consisted of two very distinct cultures and set
of processes, so she need to streamline both
in order to create a coherent, value added
service to the business.
At the core of this transformation Gonfroid
put forward the governance tool COBIT 4.1,
which she used for 15 internal processes. At
the start of her mission the division scored
a meager 1.2 on a scale of 5 on the maturity
index of COBIT. Within a year, with the new
processes Gonfroid put in place, the score
already increased by a full point. More important, the changes have led to other substantial
improvements, such as
a 50% reduction of the
resolution time of the more
than 2000 incidents and
demands her team receives
each year.
A selection of recent
accomplishments
--
---
Completely digitalized the content platform and workflow of news, sports, magazines and entertainment
production at RTBF, a project that has been awarded by
the International Broadcasting Convention;
Integrated the IT and the technology team in broadcasting into one coherent, customer-centric service;
Revamped the core mission of IT, which is now the
strategic engine of RTBF instead of its enabler.
so Gonfroid made sure to
have an effective communication plan in place
in order to realize this. Last
but not least, Gonfroid
installed a culture of (internal) customer centricity in
her teams by making sure
they listen carefully to business needs in all the stages
of the project as well as
implementing a constant
feedback loop with the users throughout the rollout of the project.
We have passed the
state of alignment
with the strategy
and have become
the strategy engine
of our company.
With the basics improving, Gonfroid was ready
to tackle the strategic
challenge of digitalizing
the workflow of RTBF. This
was a highly critical project,
since the tape-based video production system
lead to excessive production time, and simply
didn’t match the requirements of the speed at
which news, sports, magazines and entertainment needs to be delivered in the digital age.
Furthermore, with its 60 years of broadcasting
history, the RTBF owned a wealth of content
that needed to be leveraged efficiently in
order to keep its competitive position.
This digitization project, called ‘NumProd’,
lead to a productivity increase of 30%. RTBF is
now able to integrate heterogeneous media
sources in its workflow, and has now integrated all its content creation into one simplified
system that allow it to publish on multiple
channels, such as website, mobile, and
video-on-demand. Gonfroid and her team
have even been awarded by the International
Broadcasting Convention for this project.
One of the key elements of the success of
Gonfroid and her team was the clear set of
Key Performance Indicators she put forward
in her transformation mission. First and
foremost she ensured the buy-in of the highest levels of the hierarchy for her project, to
make sure everyone within the organization
realized the strategic relevance of her project.
This relevance needed to be communicated
extensively to all the stakeholders internally,
Looking forward the short-term agenda
of Gonfroid and her team contains multiple other strategic challenges, such as the
digitization of the archives of RTBF, as well
as the digitization of the workflow of other
divisions such as finance and HR. Her biggest
priority, however, if the enhancement of the
digital platform she put in place: improving its
user friendliness and implementing a proactive monitoring system to further improve
its impact on RTBF’s business. However, since
the media business is undergoing so much
transformation, it is virtually impossible to
anticipate what the business priorities of the
RTBF will be in the future. Hence, Gonfroid’s
major concern, and focus, lies in keeping a
maximum agility within the IT operations.
Thanks to Gonfroid’s efforts RTBF is now a
modern broadcaster where journalists have
access to a vast array of research information
anywhere, anytime, and where the workflow
is optimized in ways to ensure the smooth
and fluent production of news and entertainment for its audience. As a result, RTBF is
ready to face its new breed of competitors. As
Gonfroid puts it: “IT is driving the business […]
There are no boundaries in an organization,
only competences.”
Agustín González
Founded in 1976, Prosegur provides integrated security solutions, which consist of Manned Guarding services, such as
airport security, security in large events, geotracking and GPS
monitoring; Cash Management, which includes Cash in Transit
and covers the entire value chain of cash management, such
as correctly supplying automated tellers; Technology, such as
integrated security and fire protection systems; and Residential,
where it offers a wide range of security products and services
for residential homes and businesses. In 2013, with a presence
in 17 countries across 4 continents and more than 150.000
employees, Prosegur’s sales amounted to 3,695M€.
--
Building and protecting the
global competitiveness of
the business
Six years ago, Augustin González joined
Prosegur as its CIO for Europe and within 3
years was promoted to Global CIO. González
is most proud of how he has transformed the
role of IT within Prosegur from 12 IT organizations functioning independently to a single
integrated Global IT department that serves as
more pro-active and flexible partner with the
rest of the business. The transformation was
ambitious yet necessary for Prosegur to enhance its global agility and defend its competitiveness as it expanded internationally.
To accomplish the transformation, González
and his team launched several action lines in
parallel: information systems, infrastructure,
and organization. With regards to information
systems and infrastructure, they developed 19
corporate platforms for each line of business, as well as for support areas (they plan
on developing 3 more). This enabled them
to optimize maintenance costs of applications; standardize core technologies (e.g.,
they deployed an Enterprise Data Warehouse,
eliminating 31 independent Data Marts, and
centralized 18 datacentres into 4 global datacentres); and eliminate over 21 legacy systems
since 2011. The overall result has been a
considerable increase in systems flexibility and
cost efficiency. For example, shifting service
to 4 global datacenters has allowed them to
decommission many local facilities in each
country, delivering significant improvements in
reliability, flexibility and cost efficiency.
Creating a single truly global services organization from 12 traditionally independent groups
---
Transformed IT from 12 IT organizations functioning independently to a single integrated Global IT department.
Saved over 14M€ through a series of changes, centralizing,
simplifying and upgrading the global digital platform.
Significantly enhanced several key business processes, such
as reducing the life cycle of managing new contracts from
3 days to less than 1 day; reducing the surveillance planning
scheduling process from 1 week to 2 days; automated the
reconciliation process of ATM electronic journals, thereby
reducing the process from 1 day to 2 hours; and by virtualizing the global infrastructure, improved provisioning time from
2 months to 15 minutes.
proved especially challenging. There were significant barriers to transform the department,
such as the existing inertial culture, insufficient
language skills and entrenched positions of
certain key stakeholders. In some cases the
existing teams didn’t know how to collaborate
effectively, and could not grasp the fundamental challenges at corporate level, much less
resolve them efficiently. They were accustomed to work in constrained silos, defaulting
to traditional boundaries and frequently losing
valuable time and effort to turf battles.
per line of Business), and reduce geographic
dependency encouraging global services.
Another area in which González and his team
are playing an increasingly strategic role is in
mergers and acquisitions. During the last 3
years, Prosegur acquired and integrated more
than 30 new companies, some of them in new
markets and countries. Several of the acquisitions brought in a considerable volume of
employees, IT systems and platforms. When
González first started, the IT group had not
developed any best-practice capabilities to
To address these issues, González and his team
address M&A operations. González and his
centralized the IT budget, taking full control
team developed a new framework to specifiover all IT investment and running costs from
cally deal with M&A projects, which consisted
a central point. This provided senior manageof a specialised methodology; identifying
ment with a holistic view of IT across the firm,
and addressing key business continuity issues
vastly improving corporate decision-making
early on, and deploying appropriate actions to
and prioritization. They also created several
support new scenarios; developing new roles
Shared Services Centres. González explained
and skillsets within the IT organization; and
that “pooling, industrialising and optimising the
adapting the vendor / provider engagement
localisation of commodity services provided us
strategy and relationship model accordingly.
higher flexibility and significant cost reduction.”
Today, González and his team play a key role
This change also involved moving a number of
in ensuring the success of M&A transactions by
people to different locations.
simultaneously providing quick, flexible and effective integration capabilities; exercising tight
To address internal resistance to change,
control of the entire IT budget throughout the
González pursued a transparent and robust
M&A operation, especially regarding transitioncommunication strategy focusing on flexibility,
related investments; and optimising the inherteam-collaboration, crossing boundaries and
ited organisations and technologies to lower
collective leadership. He also
overall operating costs.
developed a new organiGonzález is proud of the
sational structure based on
fact that he and his team are
As the entire company
global and functional intersuccessfully providing global
is learning new ways to
ests. This enabled them to
services to 4 lines of busicollaborate with IT and
eliminate redundancy and/
ness in 17 countries across
develop solutions that
or overlap between local,
4 continents while also
are simultaneously local
regional and global roles,
improving the way Prosegur
and global, it continues
present a more cohesive
integrates acquisitions and
to grow and expand
customer-focused interface
expands globally.
(one IT Business Partners
throughout the world.
15
Maarten Hillenaar
Central Government of the Netherlands (CIO from 2009-2013)
16
The role of ICT in the Central
Government of the Netherlands
In November 2011, the Dutch Government released its
“iStrategy,” a key component of a broader programme to use
ICT to increase the effectiveness and efficiencies of services
provisioned by 11 ministries, while reducing the costs of provisioning them. The iStrategy outlines the role to be played by ICT,
including unifying the current fragmented ICT infrastructure,
establishing a single Central Government ICT security authority,
and digitalising services provided by Central Government to the
public. The Dutch Government relies on ICT to respond flexibly
to new trends and developments; control costs; and enable
ministries to work more efficiently together.
Making IT matter for the
better of citizens
On January 1st, 2009, Maarten Hillenaar
was officially appointed as the first Chief
Information Officer for central government
of the Netherlands (CG-CIO). The creation
of a CG-CIO was part of a series of efforts
to significantly strengthen the role of IT,
after a series of IT project failures that were
widely covered in the press and addressed in
Parliament. The main immediate objective was
to have no more accidents with ICT-projects.
Fortunately, with a series of critical changes
and accomplishments, there was success.
During Hillenaar’s 5-year tenure, from 20092013, there were no accidents with IT projects
started in this period and funded by the Central
Government.
One of the fundamental changes that Hillenaar
led was to develop a government-wide information infrastructure (the ‘i-infrastructure’).
During the 1980s and 1990s, ministries were
not required to use centrally developed facilities and instead were free to choose their own
service providers. As a result, each ministry developed and managed ICT in an independent
and uncoordinated manner, and a patchwork
of different ICT facilities and suppliers/providers gradually emerged. The “stovepiping” led to
growing costs, risks and failures.
To reduce the stovepiping, Hillenaar developed and relied on the CIO-Council. At the
same time Hillenaar’s position was created,
every Ministry had to appoint its own CIO.
Together the CIOs formed a CIO-Council
chaired by Hillenaar. Having all started at the
same time, Hillenaar developed the council in
several ways. They went to school together to
develop a common language and held regular
--
--
--
Orchestrated a government-wide strategy for the use of
ICT that was approved by Parliament and is used by all
ministries.
Designed and implemented major parts of a governmentwide information infrastructure (the ‘i-infrastructure’) that
reduces costs and mitigates risks due to unnecessary
variation and improved the control and delivery of project
delivery and IT services.
Created the ‘Central Government’s ICT Dashboard’ where
information about all large-scale and high-risk ICT projects
is published on a dedicated public access website.
meetings, once a month for half a day and
every 6 months for a 2-day meeting for more
in-depth discussions. Every departmental CIO
(e.g., Defense) was made responsible for a
government-wide objective (e.g., Information
Security). As Hillenaar explained, “We became a
team that worked on a team-mission.”
respective ministries, and with the public, they
were also implementing the ‘i-infrastructure.’
They succeeded, for example, to consolidate
66 datacenters into 4, saving an approximate
100M€. The impact of consolidation went
beyond cost savings. Doors were opened to
many more consolidation opportunities, such
as applications, being each other’s backup,
creating a uniform set of rules on information
security, and pooling expertise, such as project
managers. It also is the basis for the Closed
Government Cloud.
The CIO-Council also developed the iStrategy
for the Dutch Government that eventually
became approved by Parliament. “We made
sure that we told the story over and over to
the IT-community and –more importantly – to
top management. Top management accepted
Finally, when Hillenaar started as CG-CIO,
ICT as a ‘boardroom-matter’. It became clear
one of his objectives was that a public servto them that they couldn’t stay away from
ant should be able to work anywhere, with
ICT-issues.” The CIOs aimed to help top manany device, at any time. Today, an important
agement within their respective ministry take
aspect of the existing i-infrastructure, is the
control of ICT and count on IT to do better
shared National Government Digital Work
and for less. They increased transparency by
Environment that enables civil servants to have
publishing information about all large-scale
access to the information and functionality
and high-risk ICT projects on a dedicated pubthey need to do their work from any device,
lic access website (‘The Central Government’s
any place, any time. All the ministries are able
ICT Dashboard’ available in
to use the services, the maDutch at www.rijksictdashjority finished the migration.
board.nl). This helped creTo accomplish this required
Now that we have taken
ate attention with both the
harmonizing the design
control of ICT, ICT is no
press and the parliament. As
and use of software. One
longer a subject that is
a result, each ministry now
intranet portal replaced
avoided. There’s a lot of
discusses its ICT-portfolio
eleven separate intranets.
positive energy; meetings
every three months during
the general board of direcand conferences are more During the five years that
tors meeting. After reviewHillenaar served as CG-CIO,
fun; and participating is
ing the accomplishments
he and his colleagues sucmuch more attractive.
of the CIO-Council, the
ceeded in turning-around
Dutch national accounthow others in government
ability office (Algemene
and the public viewed ICT,
Rekenkamer) concluded “the CIO-system
from an expensive source of risk to a fundaworks (yet it isn’t finished yet)”
mental source of value. This is best exemplified
in an observation that Hillenaar made, “For top
As CIO-Council members were developing
management knowing the impact of ICT on
stronger relations with each other, with their
their job is now part of their profile.”
Vincent Léaux
City of Vélizy-Villacoublay
Vélizy-Villacoublay
Vélizy-Villacoublay is a French town in the South-Western suburbs of Paris,
3 km from the Versailles, and contains 22,000 inhabitants. The town consists
of six residential neighborhoods, all on edge of the Meudon national forest.
It is home to the renowned business park, INOVEL PARC. More than 43,000
employees work in INOVEL PARC, representing over a thousand companies,
including some of the biggest names in industry, such as EADS, MessierBugatti, Alcatel-Lucent, Inéo, Thalès, Bouygues Telecom and PSA Peugeot
Citroën, and Dassault Systèmes. The budget of the administration of the city
is €76M. In 2010 the city went through a crowdsourcing project, asking its
citizens to submit ideas to make the city more ecological, promote solidarity and combat pollution. This project resulted in the ‘Agenda21’, a concrete
roadmap for a sustainable future.
Strengthening and
expanding local
government services
When Vincent Léaux started his function as
CIO of the French city Vélizy-Villacoublay
three years ago, he inherited a rather dramatic
situation. The IT team of 4 people had no
particular IT skills and the service it provided
to internal customers was so poor that clients
hesitated to call it when they experienced
trouble. There was no backup system at all
for the HR and financial data of the city, and
no particular security system for this data.
Furthermore, coming from the private sector,
Léaux had to adapt to the slow and cumbersome processes of the public administration.
It was a discouraging situation. What was
needed was a complete rebuilding of the IT
organization, from scratch!
It took Léaux 3 years of hard labor to revamp
the IT organization into a high-performing
and accountable service to both internal
clients and citizens of the city.
His first priority was to build a coherent and
reliable infrastructure, connecting all the
systems and applications in a secure way.
Easier said than done, with a small team of
people that didn’t have the right skills and
were primarily firefighting issues rather than
working on long-term projects. Hence the
need for Léaux to rebuild and expand his IT
team. Since processes in public administration tend to be slow and cumbersome, Léaux
was looking for professionals who were
patient and perseverant, confident in working on operational issues as well as strategic
projects and who were both communicative
accomplishments
--
--
--
Revamped the complete IT organization from
scratch to enable a seamless, efficient administration and back-office;
Implemented a series of services for citizens,
such as electronic boards in classrooms, electronic fines and online administration services;
Installed a culture and practice of IT governance that resulted in 94% of customers expressing satisfaction and an IT budget increase
of 300%.
and customer-centric. With such a complex
profile, it took him 18 months to find the right
professionals and expand his team threefold.
equipped with digital white board, a number
that will increase to 100% by September 2015,
including maternity schools.
In the meantime, Léaux needed to put new
processes and practices in place, to professionalize the IT operations, but also to
communicate to the major stakeholders what
the IT department was doing at what it aimed
to achieve. As part of the IT
governance culture Léaux
put in place, he established
numerous performance
dashboard, project and services catalogues and tasks
and responsibility matrices.
Léaux impacted the security of his town as
well, by installing a video surveillance system
in the major streets of Vélizy-Villacoublay. He
also equipped the police force with electronic
devises to manage fines more quickly and
reliably. “Something the
citizens are not necessarily extremely happy about”,
jokes Léaux.
As a CIO you don’t
realise anything
without a close
partnership with all
the stakeholders
The town’s administration
was so impressed by all
that Léaux and his team
had accomplished that it
agreed to increase of the IT
budget by 300%. This paid
off in a number of ways. Customer satisfaction reached at an all-time high of 94%, and
digitization projects led to substantial cost
reductions and efficiency increases.
But the most striking results of Léaux and his
team’s work have been the services provided
to the citizens of Vélizy-Villacoublay. Before,
inquiries to the town’s administration could
easily take up to four weeks before they received a response. Today, after Léaux and his
team streamlined and automated key backoffice functions, citizens receive responses in
less than a week. Léaux is keen to reduce the
response time even further.
Léaux also undertook to install digital white
boards in the schools of his city. At this day,
95% of the classes in primary schools are
Looking at the future, Léaux
still has numerous plans
to increase the impact of
his IT organization on the
services the administration provides to its citizens.
Optic fiber that he deployed
throughout the city will
serve to connect all the
public institutions seamlessly and has already
resulted in saving of €180K per year. Léaux
also intends to deploy Wi-Fi throughout the
city as a service to the inhabitants. Finally, his
team will focus its efforts on getting as many
administrative processes online, to permit
citizens to manage their relationship with the
administration from home.
But Léaux is looking into more innovative services to the citizens as well. One such thing
is a crowdsourced reporting system of minor
problems citizens are facing –such as holes
in the road or illegal dumping sites. The app
would permit citizens to report these issues,
whereby it would automatically be directed to
the right public service in order to fix the issue, and once the issue is fixed the app would
automatically inform the citizens of the fact.
17
Eric Lippert
18
Lombard International Assurance S.A. is Luxembourg’s leading pan-European, unit-linked life assurance company. The
company uses life assurance in combination with wealth
structuring to provide solutions to high and ultra-high net
worth individuals. In 2013, total assets under administration
reached a record high, in excess of €24 billion (a 4% increase)
and new business premium income reached €2.34 billion.
We do not market directly to end clients but collaborate with
a strong international distribution network of private banks,
wealth managers and independent financial advisers. Over
350 employees work in the Grand Duchy’s head office, with
teams of consultants spread across 14 markets.
---
Orchestrating a sustained
competitive advantage
In 2011, about a year after joining Lombard
International Assurance as CIO, Eric Lippert
was asked to be directly involved in designing
and implementing an ambitious transformation of the organisation. In May 2011, the senior management team had a “20/20 moment”,
with the company reaching its 20th anniversary and holding over €20 billion of policyholder assets. The senior management team
decided it was the right moment to hold an
off-site retreat and take a critical look at the
company’s past and future, asking themselves
“if we were to start this all over, how would
we do it even better?” They realised that as
Lombard International Assurance had grown,
new demands had been addressed in ways
that made sense at that point in time but, in
the long-term, were insufficiently coordinated
to support future synergies. They were concerned that operating costs would eventually overtake profits and that the quality and
relevance of their solutions to partners and
their clients could be put at risk. They agreed
to significantly and rapidly transform how
Lombard International Assurance operated.
During the first 5 months, Lippert worked
closely with other senior managers to define
the vision of the transformation. They then
spent about 8 months designing the realisation of the vision. According to Lippert, “a
critical success factor was that stakeholders
from all over the company spent time up
front to define the vision and design an agile
execution.”
A main pillar of the transformation effort was
a complete rethink of the IT platform and
core business activities. Lippert and others
--
--
Annual reduction of €8.4 million in operating costs;
Increased automation and productivity of all processes linked to
Fund Administration. For example, a 72% decrease in the number
of manual transactions and a 20% increase in terms of number of
funds administrated per headcount.
Increased efficiency and effectiveness of client-facing processes
linked to policy administration (from on-boarding new business
to lapses and surrender). For example, average time per transaction was reduced by 50% and user experience rating doubled.
IT infrastructure landscape was simplified and transformed in
close collaboration with the business without any service outage
or negative business impact.
redesigned and implemented a series of key
services and their corresponding IT platform.
They structured their efforts around guiding
principles such as Maximise Benefit to the
Enterprise; Reuse – Buy – Build; and Business
Process Simplification. For Client and Policy
Servicing, for example, they reduced handoffs, delegated data capture to partners and
reduced administrative paper management.
For Investment Administration, they simplified
the way they manage data and produce daily
valuation reports for the 17,000+ funds they
administer.
mation of the IT landscape was the catalyst
for a complete business restructure and
change of operating model for our company.”
It resulted in enhanced efficiency and flexibility for the company’s partners and their
clients, a significantly smaller carbon footprint
and significant financial savings. By simplifying
the Investment Administration platform from
15 software systems to 1, the company saved
€100,000 in licensing costs. Technical interfaces within the IT platform were reduced
from 279 to 94, significantly lowering operational risks and costs. The new functional
monitoring platform allowed business users
to be independent and, thus, more efficient in
their daily activities. As a major consequence,
the company can detect and fix functional
issues earlier in the process (e.g. at capture
instead at reconciliation) which lowers the risk
and impact of issues.
With very clear targets of what they wanted
to achieve, Lippert and others applied “the
best of SCRUM methodology” to realise their
targets. The process enabled multiple stakeholders from different parts of the business
to collaborate closely
and communicate
regularly. Amongst the
Finally, to sustain
The new role of the CIO is
many changes they acthese changes, Lippert
to raise awareness and listen
complished, Lippert and
introduced a varito the business (because
his team migrated the
ety of committees and
very good ideas emanate
company’s IT infrastrucgovernance mechafrom the business) and to
ture (datacentres, hardnisms. For example, to
orchestrate their demands. If
ware, network, storage)
ensure both immedibusiness owners pursued their
without any service
ate and long-term
own technologies without
outage or negative
objectives are met
business impact; simpli(and to manage any
someone to coordinate and
fied the Investment
trade-offs between
prioritise across their demands,
Administration platform;
them), a Change Team
there would be a much less
and introduced an
is in charge of both
structured approach.
end-to-end business
managing the current
oriented monitoring/
portfolio of projects
repairing platform.
and maintaining the
long-term target operating model for the
Within 18 months of intense collaboration
company. Overall, costs dropped by 35 %
between IT and the rest of the business, the
over 3 years and IT are now considered an
massive transformation of IT was completed
essential partner in developing competitive
successfully. Lippert explained, “the transforadvantages to the business.
Fernando Lucero Batalla
IBERDROLA S.A.
IBERDROLA S.A.
Over 150 years old, IBERDROLA is the world leader in wind
power, one of the top electric utilities in the world, and
Spain’s number one energy group. Since 2007, its strategy has been marked by strong international expansion,
with the integration of ScottishPower, Energy East (today
Iberdrola USA), and Brazil’s Elektro. By 2013, IBERDROLA
had achieved total installed capacity of 45,009 MW (61% of
which was CO2-free) and supplied 211,000 GWh a year to
around 100 million people globally. The Group’s net profits
reached €2.572 billion and the company employed 30,680
people in almost 40 countries.
--
Energizing innovation with
ICT
In 2010, Fernando Lucero Batalla was asked
to join IBERDROLA as group CIO. IBERDROLA
had been expanding globally and consisted of
a matrix of over a dozen large business units
located across in 39 countries, mainly in Spain,
UK, Brazil, USA, and México. In such a complex
organization, it is especially challenging to
manage the tension between local and global
interests – i.e., between rapidly developing
solutions tailored to the specific needs of business units and achieving synergies across business units that take advantage of IBERDROLA’s
scale and scope. Lucero’s accomplishments
are proof that he and his colleagues are managing that tension successfully.
At such a diverse energy company such as
IBERDROLA, IT is strategic for a variety of
reasons. IT continues to play a fundamental
role in helping the company achieve operational efficiencies and cost reductions. IT is
also essential for developing innovative ways
to streamline and automate a vast volume and
diversity of data into mandatory reports and in
the process, minimize the resources required
for achieving compliance. In addition, Lucero
explains, “We have different IT strategies,
depending on the business, because each has
a distinct strategic focus and operates along a
distinct set of business processes.”
Within Networks, for example, IT is focused
on increasing the quality of services that the
business provides to its customers by helping it
optimize its processes. For example, IT developed a geo-referenced information integration
system that enables Networks to mine the data
that exists in various systems supporting core
--
--
Over €12 million saved and €70 million in revenues generated as a
result of accomplishments involving the IT Group.
Significantly enhanced the experience of customers of key business groups: increase of end customer satisfaction; increase of
end customer web site visits; reduction of customer calls for
issues resolution; and increase of number of end customer offers
accepted.
Put into practice a new process for innovating collaboratively with
multiple stakeholder groups, including external suppliers. Has led
to several significant innovations and prevented resources from
being wasted in promising yet ultimately not valuable innovations.
processes and integrate them with graphic
features and advanced operations.
almost 30 ideas were developed, of which
11 were eventually developed into proof of
concepts. In the end, 7 were selected to deWithin Renewables, IT worked with the rest
velop further into projects. These all involved
of the business to develop a comprehensive
representatives from IT, the business, and from
weather station management platform for onsuppliers, collaborating iteratively, using agile
shore wind farms that enables immediate availmethods. Electric vehicle charging stations opability and reliable storage of
eration, mobile app for retail
meteorological data, in addicustomer, information kiosk,
tion to effective data processfraud detection systems,
IT has succeeded
ing, rapid incidence detection
smart meters customer load
in becoming a key
and the automated generation
curves are resulted from this
of statistical analyses. They
process.
driving force for rapid
also introduced drones to
local innovation,
capture meteorological data,
internationalization and In addition, the IT Group
as well as information about
is structured in a way that
Group-wide synergies.
the wind generators. The data
enables both engagement at
is used it to calculate when it
the local level to understand
makes most sense to accomthe business and subsequent
plish a maintenance of the generator without
demand, and engagement at the global, corhaving to stop the generator (if a generator is
porate level, to analyze demand globally and
stopped during a specified period, the business
identify enterprise-wide synergies. Business
would incur a penalty from regulators).
Relations Directors (one dedicated to each of
major business units) serve as a critical linking
Soon after joining IBERDROLA, Lucero
mechanism between the interests of local
realized that the IT Group was “simply takand global stakeholders. During a monthly
ing orders.” To be more proactive and be in
meeting the Business Relations Directors share
a stronger position to both foster innovation
and discuss their portfolio of projects in the
and orchestrate synergies across solutions and
pipeline and explore synergies across existacross the enterprise, Lucero strengthened IT
ing and past projects, including ways to reuse
governance. He introduced a series of comsolutions. For example, for the Network group
mittees to increase engagement between IT
in Spain, IT had developed a solution that enaand the rest of the business. To enhance digital
bled them to collect data from smart meters
innovation, Lucero introduced an IT Innovation
and the produce consumer load curves that
Committee, which consists of people from
could be viewed by customers on the web.
within the business (“Business Delegates”)
A few months later, the IT team realized that
who champion new ways of innovating within
the technology used for that solution could
their respective business groups. In collabobe applied to other, very different business
ration with external technology suppliers,
(e.g., within Renewables, use the solution to
they explore ways of applying promising new
collect, integrate, predict and display weather
technologies to enhance the business. In 2013,
information).
19
Nuno Miller
Farfetch Ltd. (CIO from 2011 until 2014)
Farfetch
20
Farfetch is an innovative e-commerce company that brings together over 350 independent fashion boutiques from around the
world and provides their range of unique products, representing
over 1000 fashion labels, to fashion lovers globally. Customers
can shop from any boutique within Farfetch’s network and then
have their orders delivered directly to their door, wherever they
are in the world. Launched in 2008 by Jose Neves, Farfetch rapidly became a global company back by investors such as Advent
Venture Partners, Index Ventures, and Condé Nast International.
By October 2013, the site had 4.3 million visits a month and an
average order of around 500€.
Enhancing the
competitiveness of an
innovative business model
during rapid growth
Farfetch is an e-commerce marketplace,
whose sales depend totally on its websites
uptime. If a website is down or faces a performance issue for even a couple of minutes,
visitors won’t buy goods and Farfetch must
contend with a non-recoverable loss of sales
and decrease in customer satisfaction. IT is
fundamental to Farfetch’s operations and
growth. About a fifth of Farfetch’s 370 employees are in the IT group.
In 2011, when Nuno Miller became Chief
Information Officer of Farfetch, he discovered
that most of its servers were inadequately
serviced. Miller and his team reorganized and
transformed the company’s storage services
in two different datacenters. The most critical
services and tools, such as those supporting
Farfetch’s transactions and payments were
given to one of most robust and advanced
hosting companies based in London. All
other services and tools were hosted at a
different hosting company, in a private cloud
model, with lower yet sufficient service level.
The entire project – from creating a service
catalog, defining each service’s impact on the
business, defining the required architecture,
and implementing both types of solutions –
took just over a year.
During the process, Miller and his team also
transformed several processes that were
using internal tools into processes that could
be accomplished with cloud-based software
services. For example, they changed how
incidents, problems and change requests
accomplishments
---
---
Strengthened e-commerce site availability from 99,5% to
99,95%
Increased ability to support and increase of 300% in the
number of visitors, with peeks up to 1000% - essential capabilities for an e-commerce marketplace.
Enhanced the performance and availability of back-office
tools, thereby increasing team efficiency by 10%.
Saved 200K€/year and generated more than 140M€ in 2
years.
were reported and tracked; how customer
service tickets were handled, as well as how
the Business Development team managed
potential business partners.
As a result of the changes, the new ecommerce platform was able to support an
average increase of daily visits by 300%, with
peeks around 1000% and the availability of
key services increased from 99,5% to 99,95%.
The increase in availability and speed led
to an increase in productivity of the back
office teams (mostly production, operations
and boutique management), resulting in an
estimated savings of 200K€ per year. The
enhanced digital platform helped support a
significant increase in volume of sales, from
27,5M€ in 2011 to 75M€ in 2012 and 140M€
in 2013.
avoid reprocessing, by introducing a series
of checkpoints and features to the product
creation process. As a result, around 25% of
products are being identified as duplicated
in early stages, resulting in 20% productivity
increase in the production team.
While upgrading and improving the reliability
of Farfetch’s digital platform and steamlining
operational processes, Miller and his team
were also helping Farfetch manage its yearly
growth rate of over 100%. In a 3 year period,
the total number of employees at Farfetch
increased from 150 to 370, as the company
added new functions, teams and managers. To
address the corresponding growth of demands
on IT, the IT team increased its size from 13 to
75 people. This fast pace required a change on
the IT governance model
and on project manageMiller and his team were
ment methodologies. Miller
Critical to sustaining
also instrumental in
organized the IT group into
growth of more than
streamlining Farfetch’s
different teams and exper100% a year has been
product management
tizes and adopted SCRUM
balancing the need to
process. Product creation
as the main methodology.
respond rapidly to new
process is done jointly by
In order to align priorities
opportunities with the
Farfetch and the boutiques.
with the company strategy
need to have an effective
All of the products are
and operational needs,
and efficient global
catalogued, categorized
Miller creates a yearly roadand photographed by
map, with quarterly reviews,
platform.
Farfetch. Until a product
for all strategic projects. All
is photographed and its
projects have prioritization
attributes are catalogued it remains ofmeetings every 3 weeks, with main business
fline. With each season, around 50 000
stakeholders, in order to define the cross-team
products were catalogued. However, due
priorities. Each sprint lasts for 3 weeks, meanto process inefficiencies, there are several
ing that every 3 weeks they deliver a set of
duplicates – products that have already been
new features (designed, developed, tested and
photographed by one boutique and are reapproved). In this manner, Miller and his team
photographed by another. Farfetch wanted to
have ensured that Farfetch can continue grow
reduce the resources (including time) necesand respond rapidly to new opportunities while
sary to get products online. Miller helped
improving the effectiveness and efficiency of
develop a process to identify duplicates and
its core operations.
Alexandre Ramos
Lusitania Companhia de Seguros and N Seguros
Lusitania Companhia de Seguros, SA and
N Seguros
accomplishments
Based in Lisbon, Lusitania was founded in 1986 and by 2014, was one of the
largest insurers operating in Portugal. It is part of the Montepio Group, the
largest mutual association in Portugal and one of the largest mutual associations in Europe. Lusitania provides insurance in five key areas: Accident and
Health; Aviation; Automobile; Maritime Transportation; and Fire and Other
Damages. In early 2008, N Seguros was established as a separate company
within the Montepio Group, focused solely on the direct insurance market in
Portugal, in the areas of Automobile, Motorcycle, Personal and Health.
----
Focusing multiple
stakeholders on the
most valuable IT-enabled
innovations
Since joining Lusitania in 2008, Ramos has
played a central role in synchronizing the
focus of key stakeholder groups on what matters most to the business. Through a series of
weekly and monthly engagements with Board
and first-line directors, Ramos translates
the strategic business objectives into action
plans, assigns key performance indicators
(KPIs) to each action plans, and translates
KPIs into projects (most involving IT, however
not necessarily). The process enables Ramos
and participants to identify and remove any
projects that do not support the strategic
business objectives. Ramos explains, “If a
project does not add value, then it needs to
be dropped out.” By linking IT so closely with
the rest of the business, prioritization is now
shared by all business leaders.
To effectively align IT with the rest of the
business, Ramos spent considerable effort
ensuring that his team of 35 was prepared to
deliver significantly higher levels of service.
“First we align IT; then we align with the business,” is a motto that Ramos strongly believes
in. “If IT cannot deliver then alignment efforts
are useless.”
Once Ramos was sure that his team was
capable of practicing proper methodologies, controls, and project management, they
succeeded in developing in just 6 months e+
Plans, a system that changed how business
units throughout Lusitania operated.
--
More than 1M€ in savings
An increase in revenue of 2.7%
The number of policies per customer increased
from 1,33 to 2,0
The number of cancelations decreased by 40%
The idea for e+ Plans was deceivingly simple.
On the one hand, the basic idea was, similar
to a monthly bank statement, to provide customers with a single monthly statement of all
their activities within Lusitania. Each month,
each customer would receive a statement describing what insurance policies the customer
has with Lusitania, as well as how much the
customer needs to pay by the first day of the
next month.
On the other hand, to
provide such a service
required a completely
new and fundamentally
different relationship
with customers. A key
feature of the e+ Plan
was that a customer
that signed-up for
insurance during the
start of a month would
not need to start paying
for it until receiving the
monthly statement.
In addition, for each policy that a customer
signed up for with Lusitania, the customer
could decide when and how they wanted to
pay for the policy (e.g., monthly, yearly, credit,
debit, etc.). In other words, this new service
required that Lusitania provide customers
insurance services before they had paid for
them – i.e., essentially, it required Lusitania
provide insurance credit. While banks provide
credit to their customers, insurance companies traditionally do not.
could support these new services in such a
manner that from the point of view of customers, the services were simple and reliable.
Operational efficiency and effectiveness was
essential to manage credits, mitigate operational risks, and provide competitive pricing to
customers. Coordination of policy data and
payments across traditionally independent
business units was key to provide customers
with a single and integrated view of all their
policies. To accomplish
all this, marketing and
IT collaborated closely
with each other and with
the other business units,
negotiating changes every
day – from transforming and integrating the
collection process to the
redesigning the layout of
the monthly statement.
First we align IT; then
we align with the
business. If IT cannot
deliver then alignment
efforts are useless.
Although the e+ plans project was led by
marketing, Ramos and his team were fundamental to both redesigning how Lusitania
operated and developing the systems that
Before, only banks provided customers with a
consolidated view of their
accounts. Now, Lusitania customers can see
clearly what premium, what discount, what
taxes are in any policy. In addition, all policies
have the same renewal day (1st of the month).
Overall greater transparency enabled Lusitania
to claim their policies had “no fine print” – i.e.,
that there were no hidden caveats. The results
to the business were significant. The number
of policies per customer increased from 1,33
to 2,0 and the number of cancelations decreased by 40%.The success of e+ Plans also
set the foundation for new ways of engaging
with customers. It has enabled a more efficient treatment of collecting and it will be the
vehicle for total “paper free” communication.
21
Daniele Rizzo
Autogrill S.p.A
22
Autogrill S.p.A
Autogrill is the world’s leading provider of food and beverage
services for travelers. Active in 30 countries with some 55,000
employees, it has over 4,500 points of sale in more than 1,000
locations and operates prevalently under concession agreements in airports, on motorways and in railway stations, as well
as in select shopping centres, trade fairs and museums. The
Company has a portfolio of over 250 international and local
brands, managed directly or under license. Listed on the Milan
stock exchange, Autogrill is indirectly controlled by Edizione
S.r.l., the financial arm of the Benetton family, with 50.1% of the
share capital.
--
Helping the company
become even more
customer centric
By 2014, Daniele Rizzo had already worked
14 years at Autogrill, 12 of them as Chief
Information Officer for Europe. In a company
such as Autogrill, where stores are open 24
hours and business is highest when travel
is highest, IT is a fundamental backbone for
operational continuity. Many of these services
can be done cheaper and more reliably by external service providers. As a result, about 75%
of the IT budget is spent on external services
providers. This enables Rizzo and his team of
about 70 people to focus on strategic uses
of ICT, such as improving business process
efficiencies, enhancing the customer-focus of
the firm, and enabling greater globalization of
Autogrill.
With regards to business process efficiencies,
in 2013, Rizzo was put in charge of a newly
created shared services unit. Consisting of
33 employees, the unit was responsible for
providing finance transactional services, such
as accounts payable, accounts receivable and
general ledger, to 14 business units operating
in Italy, France and Spain. To accomplish the
efficiencies expected from the unit, Rizzo led
a team that transformed what were previously
paper-based processes into mostly digital and
automated processes. For example, more than
70% of the documents that are involved in
accounts payable processes were switched to
electronic data exchange (EDI), when before
none had been. In addition, the entire accounts payable cycle was switched to a digital
and integrated document management platform. Within account receivable, 25% of documents were moved to digital. In addition to
achieving greater efficiencies, they were able
--
--
Introduced an enterprise-wide shared services unit to provide administrative services such as accounts payable and
accounts receivable. As a result, most of those processes
are digitized and automated and internal productivity has
more than doubled.
Significantly reduced processing time of invoices and
consequently, improved customer satisfaction and relations
with suppliers.
Developed significant trust with other departments such
that the IT group is now an integral collaborator as departments, such as Marketing, become more customer-centric.
to reduce by half business process outsourcing
implied closer interaction with relevant busi(BPO) costs, which accounted for more than a
ness leaders (CEO, BU leaders, Marketing,
third of overall processing costs, and improve
Operations, etc.) in brainstorming sessions, etc.
internal productivity accordingly. An estimated
As a result, customer centricity roadmaps were
700K€ has already been saved. In 2014, they
developed and put in place.
expect to eliminate BPO costs completely.
Productivity also increased because digitizaToday, for example, together with other detion enabled personnel to spend less time
partments, the IT group is collaborating closely
auditing processes and more time on controls,
with the Marketing department to develop and
reconciliations, and quality checks. As a result,
implement a new marketing plan that, accordthe employee engagement index also rose
ing to the Chief Marketing Officer, Ezio Balarini,
from 23% (2012) to +90% (2014). Finally, by
“fundamentally changed our attitude of how to
improving services such as accounts payable
do business … today, IT is the glue of all of our
and account receivable, they also improved
activities.” In January 2014, they embarked on
relations with suppliers by tracking and reduca program to develop wider analytical knowling processing backlogs by 60% and reducing
edge about our customers’ purchasing habits,
supplier’s invoice processby leveraging new statistical,
ing pass-through time from
marketing and IT capabilities;
39 to 22 days and to just
develop new capabilities and
I now expect two
2 when they could be acresources in order to manthings from IT: to
complished using EDI.
age customer information
and interaction (e.g. mobile
challenge us and to
While the recent and still
touchpoints); and develop and
support us.
ongoing economic downlearn from tailored customer
(Ezio Balarini, Chief
turn has affected the flow
campaigns. As part of the
Marketing Officer of
of travelers in Europe, and
collaboration, the Marketing
Autogrill)
consequently consumers
department has agreed to take
demand and revenues in
responsibility for prioritizing
Europe, Rizzo’s IT organisawhile it expects IT to challenge
tion has helped implement Autogrill’s ongoing
them, based on their understanding of what
strategic transformation from a traditional high
customers want from Autogrill and how they
volume, efficiency oriented food service proexperience digital technologies, be accountvider to a more customer centric organisation.
able, to support integration. As the Chief
Marketing Officer explained to the IT Group,
Since 2012, Rizzo and his team have worked
“This is not about one-way communication.
on creating wider digital awareness within the
This is about two-way communication.”
business management community and connecting IT market opportunities with business
The combination of business process efficiengrowth objectives through tailored innovation
cies and strong alignment between IT and
workshops. At the beginning of 2013 a more
other departments places Autogrill in an even
focused, customer centric strategic planning
stronger position to expand internationally.
process was set up through the partnership
of a primary global system integrator, which
Frank Stockx
ING Belgium (CIO from 2011-2014)
ING Belgium
ING Belgium is the Belgian subsidiary of the Dutch
financial institution ING Group. The Belgian organization
employs over 9000 persons, serving more than 500,000
clients in 749 branches. ING Belgium realized a turnover of
over €3B last year.
--
-ING Belgium is investing heavily in online banking. In 2011
ING was the first Belgian bank to launch a mobile app. Its
‘smart banking’ mobile app for smartphone and tablet has
been downloaded over 448,000 times since its launch. In
combination with PC banking ING is handing over 30 million online sessions per quarter.
Putting ICT on the agenda
of the whole organisation
When Stockx was appointed as CIO of ING
Belgium in 2011, the bank was in the midst of
a major shift in strategic focus. Its ambition
was to become the first universal direct bank in
Belgium, and technology needed to play a key
role in fulfilling that ambition.
Stockx and his team have been instrumental in
the fundamental transformation of how ING
Belgium interacts with its customers, undertaking a vast array of projects along the way. The
sales force of ING are being equipped with
mobile technology that grants them access to
state-of-the-art customer intelligence data, in
order to close deals at the preferred location
of the clients and answer requests while facing
the clients. Customers can make appointments with an advisor online, indicating the
topics they needed advise on, which enables
the advisor to be fully prepared when he meets
the clients. Business clients are allowed to sign
lending agreements online, and can do their
mandate management through a self-service
tool. Furthermore, Stockx rolled our Wi-Fi to
all ING’s branches and, driven by technology,
revamped each one of them into a full service
branch.
Under his leadership the bank was the first
Belgian bank to offer a mobile app with innovative features like budget insights, which
has been downloaded almost 450,000 times
since its launch. The smartphone and tablet
applications are becoming an increasingly vital
new channel for ING Belgium.
Through the offshoring of its legacy system
and commodity IT tasks, Stockx was able to
--
Initiated a multitude of projects to make clients do transactions
online, resulting in huge productivity improvements. Today, 43%
of basic transactions are performed online by its clients, and the
bank has now the highest Net Promoter Score of the 4 largest
Belgian banks;
Launched new services to support sales-force mobility with
remote access to customer intelligence system. The sales people
can now meet their clients wherever the clients wants, not where
the bank wants;
Installed a culture where IT projects are sponsored by non-IT
business leaders, hence ensuring a better comprehension by both,
as well as a coherent integration of IT in all business functions.
free the time of his team and make them work
on strategic projects that impact the business.
This has helped tremendously in turning IT into
an integral part of the business.
The results of all these projects have been
impressive. The bank has the highest Net
Promoter Score amongst the top four Belgian
banks. About 43% of ING’s basic products are
now being sold online, and the homepage of
ING receives 3,5 million visitors per month. The
technology now enables ING’s sales people
to meet their clients wherever they want,
instead of having to meet in the branches.
This resulted in tremendous efficiency gains.
Branches are now places to provide advise
instead of places where transactions are made.
Hence, there is no need for branch directors
anymore. In general, Stockx’s projects have
enabled ING Belgium to reduce its workforce
by 350 employees.
The key to the success of these projects is
a unique approach to how IT projects are
chosen and implemented.
The sponsors of these
projects are not IT people,
but leaders in other Business
Units. This ensures that the
IT projects respond to clearly
defined business objectives,
but it also ensures that business leaders understand the
subtleties of the IT projects.
As Stockx put it, “All business units need to have an
IT agenda”. As a result, the IT
practices are closely aligned
with the business priorities and strategy of ING
Belgium. After all, as Stockx makes clear, “IT
needs to support the future, not the past.”
This required a tremendous shift in culture at
ING Belgium. Resources were dedicated to
training and educating the business leaders on
IT. Stockx wanted to ensure business leaders
felt committed to and accountable for their
additional responsibilities. Though this new
approach does not work all of the times, it
did help ING Belgium in staying ahead of the
competition with the successful implementation of new technology, which now resides at
the core of ING’s strategy.
From Stockx, implementing this new culture required a lot of diplomacy and drive.
Unsurprisingly, he frequently mentions soft
skills as being key in his success, although it
probably helps that he spent 20 years at ING in
a multitude of functions and divisions before
he became CIO. His three years as CIO of ING
Belgium will no doubt help him in his future
challenges, as he was recently promoted to
head the product management and operations
division of the bank. But before moving on, he
had one vital task to accomplish: ensure his
succession. As a true visionary, he knew he needed
to find someone with very
strong consultancy skills as
much as experience with the
banking sector. Fortunately
Stockx found the right person for the job.
There are no
boundaries in an
organization, only
competences.
23
Jeroen Tas
Philips Healthcare
24
Royal Philips
Royal Philips is a diversified technology company, focused
on improving people’s lives through meaningful innovation
in the areas of Healthcare, Consumer Lifestyle and Lighting.
Headquartered in the Netherlands, Philips posted 2013 sales of
EUR 23.3 billion and employs approximately 112,000 employees with sales and services in more than 100 countries. The
company is a leader in cardiac care, acute care and home
healthcare, energy efficient lighting solutions and new lighting
applications, as well as male shaving and grooming and oral
healthcare. In 2013, Philips rose to 40th on Interbrand’s annual
ranking of global brands, with its brand value increasing by 8%
to close to USD 10 billion.
--
Achieving local relevance
through global scale
In 2011, two weeks after becoming CEO,
Frans van Houten hired Jeroen Tas as Philips’
CIO. Although IT was integral to innovation throughout the diversified-technology
company, Philips had been operating for
too long as a disparate set of business units
working somewhat independently. As Tas
explained, “We had to fundamentally change
our approach to products and processes,
how people work together, as well as the
overall IT landscape.” To accomplish such
extensive transformation, Philips launched the
Accelerate! transformation program and Tas
and his team were integral to all aspects of
the program.
One of the most important aspects of the
transformation was the cultural change:
new mindsets and behaviors. Philips had to
become an organization where collaboration in multi-functional teams was the norm.
The IT organization introduced news ways
of collaborating closely with the business to
develop solutions both rapidly and iteratively.
They built strong governance around business
processes and related IT investments. The
leadership style also changed from command
and control to guide and coach.
Today, all of Philips’ development projects
and problem-resolution projects apply Agile
Scrum. To achieve this, over 1,000 employees
followed a 3-day training to learn to work in
self-directed, multi-disciplinary teams. Boston
Consultancy Group has classified the Philips
Agile Output-Based model as ‘Advanced’ and
the speed and rigor in executing the transformation as ‘Best in class.’
Tas and his team, in close collaboration with
--
--
All of Philip’s development projects in Delivery and problemresolution in Operations are applying Agile Scrum. Boston
Consultancy Group has classified the Philips Agile OutputBased model as ‘Advanced’ and the speed and rigor in
executing the transformation as ‘Best in Class.’
Set up the Digital Accelerator Lab where cross-functional
teams are able to go from consumer insight to prototype in a
shorter time.
Implemented an award-winning Enterprise Architecture
Repository that documents Philips Business Models, Winning
Value Chains, Processes, IT Architecture and Data Models.
business colleagues, co-created an architectural blueprint for business processes and
corresponding IT systems and designed and
delivered platforms that support the core processes, rather than point solutions for business units. As a result, IT costs were reduced.
mentation in Healthcare and by May 2014
had completed deployment in more than 100
countries across all sectors.
While transforming Philips, Tas and his team
also helped Philips respond innovatively to
increasingly rapid changes in the market.
With the transformation of Philips – including its digitized platform – well underway,
To speed up Philips’ digital innovation, Tas set
Tas focused next on strengthening the data
up the Digital Accelerator Lab where specialdimension of “Philips’ real-time enterprise”
ists from Design, R&D, Marketing, Sales and
ambition. Before, customer information was
IT co-produce innovation in self-managed
scattered and consumer feedback months out
teams. Teams in the lab are now able to go
of date by the time it reached decision makfrom consumer insight to prototype much
ers. Tas and his team established an Enterprise
faster than in the past.
Information Management group to manage data models and take responsibility for
In January 2014, Philips announced the
data operations, performance measurement
formation of Healthcare Informatics Solutions
and advanced analytics. “We are controland Services, a new business group within
ling data (like data on customers, products,
Philips’ Healthcare sector that offers hospiemployees, suppliers,
tals and health systems
financials) separate from
the customized clinical
our systems and we are
programs and advanced
We are reshaping the
rolling out “Information
data analytics to implecompany to create solutions
Factories” that manage
ment new models of
that are relevant to local
master data and allow
care. Reflecting the
markets, while leveraging
real-time monitoring and
value of the accomplishour global scale. We are
analysis of the business.
ments he led as CIO, as
standardizing our value
This gives the business
well as the importance
the tools to perforof accomplished digital
chains, while enabling
mance manage, but also
customer centricity and rapid leaders to new areas of
get forecasts and new
growth, Tas was selected
innovation. We enabled this
insights.”
to lead the new business
through IT.
group as its CEO. A few
They also rolled out
months later, in a case
a standard Sales and
study they developed
Service cloud solution, giving visibility into
on Tas’ accomplishments, Forrester research
customer information, sales, and other key
recognized Tas as “one of the most renowned
metrics. It helps customers track their orders
technology visionaries in Europe.”
and manage service requests, and it provides
enhanced communication and coordination
with channel partners. They started imple-
Günter Weinrauch
ADAC e.V.
ADAC e.V.
Headquartered in Munich, Germany, the Allgemeiner Deutscher
Automobil-Club (ADAC) e. V. is Europe’s largest automobile club
with almost 19 million members. Its key service offerings include
roadside assistance and towing services provided by the ADAC
Road Patrol and its road service partners and ambulance service.
Most Germans know the expression “Gelbe Engel” (“yellow angels”) in reference to the organization’s road assistance service.
Since 2013, ADAC employees from all branches of the company
work in a new and energy-efficient building marked by architectural openness.
Business and IT jointly
driving the organization in
new directions
When Günter Weinrauch was appointed CIO
of ADAC in 2011, ADAC’s IT organization had
some fundamentals well in place. IT systems
were stable and cost-effective and the IT
group provided functional enhancements to
the IT systems only upon request from the
user departments. This foundation enabled
Weinrauch and his team of approximately 400
internal and external staff members to play a
more strategic and proactive role in realizing
ADAC’s new strategy.
In response to new challenges in the market,
ADAC introduced a new corporate strategy
focused on becoming more agile by combining cross-functional fields of action. The
refinement and execution of the new strategy
involved all departments within ADAC continuously collaborating and iterating between
four key elements: observation, orientation,
decision, and action. It also involved balancing two groups of interests: improving
responses to new opportunities (“adequate
response to new situations”) and improving
internal operations (“keeping the house in
order”).
Weinrauch has linked IT’s strategy closely
with ADAC’s digital strategy to ensure that
the target IT architecture was synchronized
with technological developments such as the
Internet of Things, connected vehicles, wearable technology and location-based services.
In addition, he insisted that IT and the rest of
the business share responsibilities for keeping IT tightly aligned with ADAC’s strategy.
Today, according to Weinrauch, IT works so
closely with project teams that “it is difficult
accomplishments
---
--
Saved approximately 7M€ over a timeframe of 3 years
through IT-strategy initiatives.
Enhanced the overall speed and effectiveness of the ITorganization, such as shortening time-to-market, improving
business cases of new initiatives and reducing overhead.
ADAC became the largest non-consulting organization
in Germany to implement such a comprehensive set of
changes to its workplace, including flexible desks, BYOD,
and work anyplace anywhere policies.
to tell who is from IT and who is not.” When
IT identifies a promising new technology, they
explore its potential business relevance jointly
with the relevant business department. “In this
respect,” explained Weinrauch, “the ADAC IT
department now considers itself to be a “driver” of new topics, and no longer a “processor”
of orders from other departments.”
Key to Weinrauch’s effectiveness is his approach to leadership. “If I tell my people what
to do, I essentially tell them to shut off their
brain and heart and just use both hands to
fulfill my orders. Instead, I try to inspire people
to use their skills and to perform beyond their
abilities – to employ their
hands, their brain and
their heart at the same
time. If I accomplish that,
my role is to provide
direction and guidelines,
stand out of their way and
clear any roadblocks.”
existing components rather than be customdeveloped. They used SCRUM agile development methods to enhance and integrate
the new IT systems stack with mixed teams,
consisting of business and IT staff members,
as well as external experts. And they adapted
business processes to fit the design principles
of the new systems infrastructure instead of
building constant customizations (“balconies”)
that would limit the future flexibility of the
systems. As a result, they significantly reduced
complexity and business limitations due to an
outdated systems infrastructure.
Weinrauch and the ADAC IT team have also
been essential to support
the company’s “Future
Workplace,” consisting of flex offices and a
clean desk policy for all
workers, up to the top
management levels, bring
your own device (BYOD)
policy for Smart Phones
and Tablets, and a Mobile
Working regime allowing
employees (including call
centre staff) to work anywhere inside and outside
of the ADAC-premises
according to personal and company needs
without technical limitations while maintaining a high level of IT-security. ADAC became
the largest non-consulting organization in
Germany to implement such a comprehensive set of changes to its workplace.
IT is working handin-hand with the
rest of the business,
identifying new
possibilities and
bringing them to
fruition.
One area where the
ADAC IT team has made a
notable difference is with
the ADAC assistance business (roadside assistance
and medical assistance).
Over the years, the IT-landscape for the
ADAC assistance business had developed into
several legacy systems that were increasingly inadequate for supporting current and
future planned business activities. Instead of
prolonging the lifespan of the existing legacy
systems or planning a new custom development, Weinrauch introduced a completely
new approach. They purchased and implemented a highly configurable systems
platform where – apart from the integration
with legacy applications – almost all business requirements can be configured from
In 2014, after enhancing the proactive
capabilities of IT, Weinrauch and the ADAC
IT-organization received the Handelsblatt ITStrategy Award for their accomplishments.
25
Next Steps:
26
Building a results-driven CIO community
As we see the strategic role of CIO’s
increasing, we also observe that this
role is perceived very differently from
company to company, from industry
to industry. There is still confusion on
the exact nature of the role of a CIO.
The question arises whether he or she
should be driving the shift towards
digitalization, or whether other divisions
within the company should drive this.
There is even debate about who exactly
a CIO should report into.
Amidst these discussion, it becomes
clear that there is a strong need for
CIO’s to benchmark their activities and
performance with their peers, across
industries and across countries. Sharing
ideas, best practices and visions about
the future becomes an imperative for
every digital leader who wants to drive
his organization to the next level.
The ‘European CIO of the year’ contest,
as well as the publication of this report
at the occasion of the contest, is a solid
step in this direction. The examples of
digital leaders included in this report
might inspire others to become as successful in driving the growth of their
businesses, and increase the business
relevance of the CIO role.
But it does not stop here. What is needed is a platform for constant discussion
and exchanges of ideas, the establishment of a community where CIO’s can
share best practices among their peers
in other industries and countries.
This is the core of CIONET’s mission.
For the last eight years we have been
building on such a community, which
now exceeds 4000 members across
Europe and expanding to new regions
beyond Europe.
Building on the future
Looking at the future we plan to further
enhance the international character of
this community, and enable our members to leverage the knowledge and
experience of their international peers
through our platform. We plan to bring
new services to our members, get them
together around hot issues and offering
them new ways to find solutions to their
specific challenges.
This way CIONET will become a key
instrument for CIO’s to lead their
organization towards a successful and
impactful future.
27
Leading by example:
Fostering more role
models for succeeding in a
digital global economy
This year’s report findings reinforce both
our findings from previous years and
what many organizations are learning
the hard way: any organization that
does not strive to have at least one of
the three types of digital leaders featured in this report is failing to pursue
important opportunities to create value
and be competitive in today’s digital
global economy.
The good news is that within CIONET’s
community, there are many digital
leaders as accomplished as the 18
profiled in the report. The bad news
is that, according to research that we
have collaborated on with the European
Commission, demand for digital leaders
already exceeds supply and that the gap
between demand and supply will only
increase, as more organizations realize they need digital leaders.1 While this
gap could evolve into a crisis, it is also a
significant opportunity for employment.
Raising awareness of what digital leaders and their teams are doing to create myriad value for different types of
organizations is core to increasing the
supply, reducing the gap, and ensuring organizations have the leadership
necessary to compete.
In several of the profiles featured in
this report, a critical success factor to
enhancing the strategic value and role
of IT from a reactive order taker to a
proactive orchestrator is raising awareness of how different aspects of IT from
across the organization relate to the
business interests of a local unit within
the organization. An initial and fundamental task that many of the featured
CIOs had to accomplish was to ensure
the rest of the business was aware of
what their organization’s digitized platform consisted of, including redundant
and insufficiently compatible islands of
technology, business processes, and
data, so that the business (rather than
simply IT) could decide whether to
continue operating in that manner or
change.
With regards to raising awareness outside of the organization, the European
Commission is funding a variety of
projects and events to raise awareness
of e-skills and digital leadership, such
as e-skills week (http://eskills-week.
ec.europa.eu/) a project to help educational institutes develop graduates who
are better prepared and enthusiastic to
become digital leaders (http://eskillsguide.eu/home/), and a project to better
understand and foster e-leadership for
small and medium sized enterprises
(http://eskills-lead.eu/home/). Students
need more role models such as those
featured in this report to inspire them
to develop the skills to lead exciting endeavors. Finalists and winners from past
European CIO of the Year events have
already participated in several of these
events and projects. Please contact us
if you and your organization are interested in participating.
If you are interested in participating or
learning more about what CIONET is
doing to help CIOs raise awareness both
within and outside of their organizations, please contact us.
1 INSEAD, empirica and IDC. (2013). “e-Leadership:
Skills for competitiveness and innovation.” available at
The 2014 Digital
Leadership Report
Accelerating local
innovations while boosting
global synergies
The report represents results from indepth research which surveyed Chief
Information Officers from 10 European
countries and interviews with 18 of
Europe’s most distinguished CIOs, as
judged by their peers. Together, these
findings help us better understand
how organizations are taking control
of information and communication
technologies to create significant
business value in myriad ways, such as
operating globally, better and cheaper;
collaborating more effectively; enhancing customer experiences; innovating
services and products; and increasing
the efficiency and success of mergers
and acquisitions.
The report identifies three types of
IT-enabled leaders who are helping a
wide variety of organizations be more
competitive and create more value:
Technology-driven CIOs; Business
process-driven CIOs, and Client-driven
CIOs. As a whole, the report’s findings
highlight the importance of fostering
digital leaders. They suggest that any
organization that does not strive to have
at least one of the three types of digital
leaders is failing to pursue important
opportunities to create value and be
competitive in today’s increasingly
interdependent and dynamic global
economy.
About CIONET
CIONET is the biggest community of IT
executives in Europe. Bringing together
What’s next.
over 4000 CIOs, CTO’s and IT directors
from wide ranging sectors, cultures, academic backgrounds and generations, CIONET’s membership
represents an impressive body of expertise in IT management. CIONET’s mission is to feed and develop that expertise
by providing top-level IT executives with the resources they
need to realize their full potential.
CIONET develops, manages and moderates an integrated
array of tools and services from the online CIONET platform – the world’s first social network for CIOs – to a range
of offline networking events, conferences, workshops and
executive education programmes all tailored to top-level
management. CIONET also provides exclusive access to the
latest research through regular online and offline publications and a number of value adding partnerships with key
players from the academic and corporate worlds.
Faced with the rapidly changing role of today’s IT executive, CIONET not only helps its members keep up with the
pace of change but empowers them to take an active role
in shaping the future of their field, always challenging them
with “What’s next.”
Keep in touch:
follow us on Twitter @cionet or through our LinkedIn page.
If you are a CIO and wish to become a member please
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About INSEAD
As one of the world’s leading and largest
graduate business schools, INSEAD brings
together people, cultures and ideas to
change lives and to transform organisations. With campuses
in Europe (France), Asia (Singapore) and Abu Dhabi, INSEAD’s
business education and research spans three continents. Its
146 renowned Faculty members from 34 countries inspire
more than 1,300 degree participants annually in our MBA,
Executive MBA, Specialised Master’s degrees (Master in
Finance, Executive Master in Consulting and Coaching for
Change) and PhD programmes.
Design: echtgoed.be

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