Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © Info-Tech Research Group Inc. Create a Customer-Centric Digital Strategy Harness the power of digital to transform your customer interactions. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 – 2016 Info-Tech Research Group

Info-Tech Research Group2 2 The digital way of doing business encompasses an innovative use of modern technologies that continuously transforms the business to gain competitive advantage and improve value realization. A successful customer-focused digital transformation will improve how your customers perceive your organization, and will open the doors for new opportunities, business models, or even industries. Alexander Zverintsev CIO Advisory Info-Tech Research Group Don’t be relegated to a supporting role – be a partner in determining how to create a better customer experience through digital transformation. ANALYST PERSPECTIVE

Info-Tech Research Group3 3 Prove your value as a partner to the business in leading digital transformations The realm of “digital” is complex and the CIO rarely helps plan digital transformations due to the perceived lack of experience with end customers. The reality, however, is that CIOs often do lack the necessary experience and exposure to end customers. This blueprint will enable technology leaders to contribute to the discussion by identifying occasions for the organization to capitalize on customer-facing opportunities using digital technology, culture, people, and processes. The first component of a digital strategy is the focus of this blueprint. These components will not be addressed in the blueprint. Address the remaining components after you have successfully planned and started implementing the customer-centric digital strategy. Customer experienceEmployee performanceCollaboration with vendors and partnersInternal processes

Info-Tech Research Group4 4 Blueprint Outcomes: Blueprint Benefits Audience for this Blueprint: Engage Info-Tech to assist with your digital strategy development CIOs or IT leaders who have been tasked with developing or contributing to a plan for leveraging digital technology to improve customer engagement. CIOs or IT leaders who have historically never been perceived as partners in planning digital transformations. CIOs or IT leaders who want to align their customer- facing digital strategy with overall organizational strategies. Help your organization improve its customer engagement and brand perception, while enabling the organization to collect data and utilize it to make better decisions. Improve your personal brand by proving that you are able to identify opportunities to improve the organization’s interactions with end customers. Uncover valuable customer insights and contribute to the revenue mandate of the organization. A clear and documented understanding of the end customer’s experience through the interactions with the organization. A list of opportunities to innovate using digital technology to improve the customer experience and create additional value for the organization. A holistic analysis of the current state of digital capabilities within the organization. A digital roadmap outlining the key digital initiatives that your organization will implement to address opportunities provided by interactions with end customers. Alignment between the internal leadership and digital transformation initiatives through a common vision and a shared sense of purpose.

Info-Tech Research Group5 5 Resolution Situation Complication Info-Tech Insight Executive summary All organizations are currently undergoing or planning to undergo digital transformation, but the CIO is often left out from the planning phase because of the historical isolation of the role from customer-facing activities. By the end of 2015, it is estimated that 25% of all businesses employed a Chief Digital Officer to help achieve digital transformation, relegating the CIO to a support role. Only 20% of CIOs have filled the CDO role in their organizations (Brinker, 2013). 50% of CEOs rate their CIOs negatively in terms of understanding the business and how to apply new technology to innovate business (Stikeleather, 2013). A customer experience map requires the CIO to map out the entire experience of a customer with the business, helping the CIO gain a better understanding of the business and how digital initiatives can improve a customer’s experience. The collaborative approach to creating a customer experience map, and then defining the required digital maturity, will position the CIO as a key contributor, not just a supporter or order-taker when it comes to digital transformation. 1. CIOs must prove their ability to plan digital transformation, or risk being relegated to a supporting role. 2. Successfully planning a digital transformation will improve the business’ perception of IT’s ability to be a partner. 3. Planning a digital transformation is a collaborative effort between all functions of the business and the CIO must engage other business leaders to create a truly successful digital strategy.

Info-Tech Research Group6 6 Digital transformation drives top-line results Adapted from: Harvard Business Review. RedHat Report, May Digital Leadership: Creating and communicating a compelling digital vision and strategy. Digital Management: Putting in place and managing people, processes, and technology to execute strategy. Leaders: Possess both attributes Followers: Possesses one Laggards: Possess none

Info-Tech Research Group7 7 Business leaders are looking to IT to drive innovation, but it’s up to the CIO to seize the opportunity Adapted from: Harvard Business Review and Red Hat: Driving Digital Transformation, 2015.

Info-Tech Research Group8 8 The CIO is often perceived as having a limited understanding of the organization’s customer-facing activities Note: For IT, 3532 Technology leaders were surveyed. All other functions, N = 270. Adapted from: Forrester’s Business Technographics Global Priorities and Journey Survey, 2014.

Info-Tech Research Group9 9 The IT organization is also perceived as unable to consistently deliver value from digital transformation 66.3%66%65.8% Business Satisfaction Analytical Capability Rank out of 12 Business Satisfaction IT Innovation & Leadership Rank out of 12 Business Satisfaction Client-Facing Technology Rank out of th 11 th 12 th Source: Info-Tech Research Group – CIO Business Vision. Number of organizations = 313. When it comes to digitally enabled IT capabilities, IT organizations fall short of business expectations. Business stakeholders rank their satisfaction with IT’s ability to deliver analytical capabilities, innovation & leadership, and client-facing technology as the worst compared to other IT-enabled capabilities and services.

Info-Tech Research Group10Info-Tech Research Group10 As a result, business leaders have started looking to the CDO to fill the gap and collaborate with CMOs and executive peers Adapted from: CDO club. 3 rd annual NYC Chief Digital Officer Summit Data Business leadership has begun to rely on chief digital officers to spearhead digital transformation, which has resulted in CIOs being left out of planning discussions.

Info-Tech Research Group11Info-Tech Research Group11 CIOs need to recognize that digital transformation is firstly about the customer, and secondly, the technology Adapted from: PwC Global Digital IQ Survey. N = 1968 The key difference in thinking between the CIO and CDO is that the CIO thinks of digital as technology innovation-related activities. CDOs, on the other hand, think of digital as technology investment in all parts of the business. Thus, CIOs need to change their approach to ensure that digital transformation is focused on generating value across the entire organization.

Info-Tech Research Group12 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: