CIONET Magazine October 2015 by CIONET

From CIO to CIO+ CIONET Magazine, September 2015

Sharing and Caring Contents CIO CITY 4

Practice the art of anticipation The CIO has to harness the role of technology in business transformation.

European CIO of the Year 2015 Celebrating top CIOs who successfully transformed digital into value.

Perceptions of proximity Geographically dispersed colleagues can form strong bonds.

Non-linear thinking is key To stay competitive, creative thinking is a key skill for CIOs.

10 A new IT model IT needs to be a business-focused proactive partner and consultant.

11 Agile in the core Effective (software) development requires a lot more agility than before.

12 Digital leadership CIOs need to partner with the business and make it more agile.

15 Supporting science and society The CIO community is supporting major international programs.

EVENTS 16 The business impact of the CIO How can the CIO keep the lead in the digital transformation process?

In a world where IT has become the nervous system of business and society, we believe that ClOs and their teams are the new heroes that drive change and innovation in their organisations. That’s why we have built CIONET, the leading European community of IT leaders. It is our mission to provide CIONET members and partners with the best

18 When the CIO meets the CMO A stronger relationship between the CIO and the CMO is required.

20 CIO meets CEO When the CIO meets the CEO, should IT become a line of business?

22 CIONET arrives in Brazil The new community will help Digital Leaders to better position themselves.

24 Enhancing Digital Leadership CIONET Germany supports CIOs to become marketing-savvy.

26 The challenges of a digital nation CIONET Luxembourg focuses on the Digital Lëtzebuerg project.

27 New quality standards within a customer approach Dealing with the new ways clients access information.

STRATEGY 28 Keeping a finger on the pulse CIONET’s research provides its members with vital insights for success.

THE NEXT CIO 30 IT is transforming the business in Russia The Russian CIO community advances the digital agenda of unabated transformation.

32 The CDO, the next CIO The Chief Digital Officer catches trends and identifies new needs

possible platform to help them to succeed and make the world a better place. We do this by understanding the ClOs’ needs and by fostering their development and growth. We believe that community and collaboration are the heart of the organisations and society of the future. We are driven by the passion and ambition of our members.

33 The difference between a CIO and a CDO From system administrator to leader of business model transformation

34 The FinTech disruption New business opportunities for Luxembourg’s financial sector

36 Embracing the new era of digital IT creates value by increasing productivity and delivering a better customer experience.

CIO VISION 38 Digital transformation Becoming a digital company requires profound internal transformations.

40 Growing by hiring the right people Should the best people spend a lot of their time on hiring new staff?

44 Strategy for an intelligent state There is a clear urgency to reinvent government with a focus on the future.

46 Creating new business models New opportunities for the energy sector and its CIOs

CIONET PARTNERS 47 Have a look at the full list of CIONET’s Premium Business Partners, Business Partners and Research Partners.

From CIO to CIO+ CIO CITY 2015 brought together over 170 top IT professionals and thought leaders from 15 countries. In this fifth edition of our yearly international conference, there was unanimity about the leading role the CIO has to play in business transformation and digital innovation. At this event we honoured four of Europe’s most successful digital leaders. Congratulations to the 2015 European CIO of the Year award winners Mattias Ulbrich, Jean-Luc Martino, Paul Danneels and Piera Fasoli. They have proven how important the role of technology is in creating more growth and success for their businesses. We also congratulate the winners of the 2015 European Research Paper of the Year award. The winning paper, co-authored by Michael Boyer O’Leary, Jeanne M. Wilson and Anca Metiu, found that geographically dispersed colleagues can form strong bonds despite large distances. This is a very useful conclusion in this era of mobility and connectivity. In August, we celebrated CIONET’s 10th Anniversary. In 2005, CIONET started as an idea to bring together all CIO’s of Europe in one community. Today, we have 5,500 members from more than 20 countries, with CIONET teams in 14 countries. In 10 years, CIONET has organised over 1,100 events with a total of 13,000 attendees and there have been 7,500 posts by the online community with 2.5 million page views. What’s next? After the successful launch of CIONET Colombia, we gladly welcome our second Latin American national community, CIONET Brazil and we are looking forward to further expansion to come on this continent.

Patrick Arlequeeuw, Strategy Director of CIONET International

CIONET will continue to expand the community with more countries and more members. We will also actively explore partnerships with CIO organisations around the world with the goal of establishing a real global CIO community. Furthermore, we have started to develop new insight, mentoring and learning programs to support our members to become the best possible CIOs. All our programs, events and community activities are aimed at empowering the members to evolve from CIO to CIO+, the next CIO. The CIO+ addresses the continually changing business and market environment, harnesing existing and new resources and advanced technology. May the force be with you!

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The CIO has to harness the role of technology in business transformation.

Practice the art of anticipation As technology is at the forefront of digital business transformation, the CIO has to play the leading role. He or she has to keep up with the revolution but stay focused on the basics. Most of all, the CIO must always anticipate. At CIO CITY 2015, for the fifth year in a row CIONET gathered over 170 top thought leaders and IT professionals around vital topics enabling digital leaders to become even more successful in the future. As for previous editions this international conference was very inspiring and insightful. There was even a lot of fun, espacially during the interactive and highly creative workshops that allowed attendees to obtain more critical

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insights about how to be more successful in their role. Moreover, there were many memorable CIO speeches and keynote addresses, as well as informal and entertaining networking opportunities. This event has proven to be an invaluable opportunity for CIO’s around the globe to get new ideas and insights.

Role of technology What is the role of technology in

business transformation? Several top CIOs from various sectors formulated their insights. Rogério Campos Henriques, Executive Board Member and CIO at Fidelidade - Companhia de Seguros, SA (Portugal) shared his experiences. “The insurance industry is on the brink of a technology-driven change. Technologies such as IoT, big data, cloud, social, mobile will allow for better individual risk assessment by using real-time monitoring of risks.

Rogério Campos Henriques, Executive Board Member and CIO at Fidelidade Companhia de Seguros, SA

Alberto Pradilla Bermudez, CEO of Corporación Colombia Digital and Advisory Board President of CIONET Colombia

This enables tailor-made pricing, claims reduction and fraud prevention. In cars, for example, telematics allows for risk profiling based on real behaviour by tracking mileage, speed, aggressiveness, etc. There are many other examples, e.g. wearable diagnosis sensors controlling health parameters, etc. We are trying to keep up with the revolution of business transformation, e.g. by creating a Digital Lab and hiring new skills. But we have a pragmatic approach focusing on the basics, for instance by improving the online customer experience at the front end or - at the back office - by simplifying IT architecture and structuring new data architecture.”

Corporación Colombia Digital and Advisory Board President of CIONET Colombia, showed how technology can also play a major role in business transformation in the public sector. “Colombia Digital is establishing a strong IT strategy for all of Colombia’s government entities. We defined, for instance, a Reference Framework for enterprise architecture for public institutions and a Framework for interoperability enabling government institutions to share data. We also launched a module for online public purchasing of IT goods and services which has resulted in significant cost savings. These are just a few examples and we have many other IT projects and programs. But even more important than the programs is how people are mentally adapting to the new responsibilities. That is why IT people from public services are empowered and trained to become IT leaders who transform the government.”

Daniel Lebeau, Group CIO at GlaxoSmithKline.

Strategy is about gaining freedom of operation.

‘CIO CITY 2015 brought together over 170 top thought leaders and IT professionals.’

Freedom of operation

to anticipate change and business transformation. “For many people strategy is about fixing an objective, but in fact it is about gaining freedom of operation. If you have a fixed strategy, so many things can happen. Think of mergers and acquisitions, closing plants, etc. You will start to have disintegration and thousands of applications you never wanted before. So, you have to think and stay ahead, like a chess player who plans 12 moves ahead. If you don’t practice the art of thinking and anticipation, you will never get that freedom of operation and you will never achieve what you want.”

Alberto Pradilla Bermudez, CEO of

Daniel Lebeau, Group CIO at GlaxoSmithKline, pointed out the need

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Celebrating top CIOs who have successfully transformed digital into value.

European CIO of the Year 2015 awards The European CIO of the Year 2015 awards were handed out to top CIOs in the categories of Large Enterprise, Medium-sized Enterprise and Public Sector. All three types have their merits, and one is not necessarily better than the other. In the Public Sector category the jury selected two winners this year. Mattias Ulbrich Mattias Ulbrich, Chief Information Officer at AUDI AG, radically transformed the production process into a strong, digitised, lean and efficient ‘digital factory’ by ensuring clear and efficient links between logistics, production and quality processes. This has further increased the quality of vehicles and the efficiency of the production chain and reduced overall costs. He also introduced a cloud-based car IT architecture for mobile online services in cars, thereby facilitating the creation of new business models sharing the vehicles’ entire life cycle. 26 new services and functions have been built on this architecture, all of which aim to increase comfort and efficiency of the cars, and enhance the driving experience. Moreover, Ulbrich developed a series of initiatives aimed at digitising the customers’ touch points with the brand, enabling customers to use multiple devices to assist throughout the sales process and enabling the company’s capacity to innovate quickly.

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Jean-Luc Martino When Jean-Luc Martino, Chief Information Officer at Banque Raiffeisen s.c., started at Raiffeisen in 2012, IT was hardly involved in any corporate decision. In two years’ time he managed to change this profoundly through a number of high-profile projects: -- migration in one go of the whole banking activity to a new core banking system to achieve 100% availability and reliability for the over 100,000 daily electronic operations; -- introduction of lean practices in IT and strong internal SLA’s, aimed at partnering with the business; -- relocation of the headquarters with 300 people, including the data centre; -- reshaping the e-Banking end-user experience. This resulted in additional sales, increased customer satisfaction and major cost savings. Martino also launched a mobile banking app in five months’ time. After ten months it was already being used by 3,500 customers. This resulted in a substantial cost reduction in development thanks to strong integration with the back-end infrastructure and the streamlining of development for mobile and desktop applications. Moreover, Martino supported the successful launch of a new fidelity program impacting all aspects of IT operations.

Mattias Ulbrich

Jean-Luc Martino

European CIO of the Year 2015, category Large Enterprise

European CIO of the Year 2015, category Mediumsized Enterprise

Mattias Ulbrich is Chief Information Officer at AUDI AG.

Jean-Luc Martino is Chief Information Officer at Banque Raiffeisen s.c.

Paul Danneels

Piera Fasoli

European CIO of the Year 2015, category Public Sector

Paul Danneels is Chief Information Officer at VDAB.

Piera Fasoli is Chief Information Officer at Gruppo Hera.

Paul Danneels

Piera Fasoli

Paul Danneels, Chief Information Officer at VDAB, installed a business disruption lab to enhance the agility of VDAB and to harness the possibilities of co-creation for launching new services. This new approach has led to the development of specific apps to help schoolleavers get their first job. These apps are delivered to 70,000 youngsters with a minimum of budget and employees.

Piera Fasoli is Chief Information Officer at Gruppo Hera. To enhance waste collection management services, Fasoli led the HERGO program. One part of the program involved integrating the ERP with business and geo-analytics platforms so that data about assets, such as the more than 300.000 waste containers, was integrated with resource and service planning software. The introduction of mobile technologies and sensors, connected with a central system, resulted in more efficient and centralised management of the services.

Along with this, Danneels used open government data for the job-matching services of the VDAB, which is recognised as a best practice by the International Public Employment Services. This has made incremental services possible such as competence matching, online assistance to suggest vacancy improvements and advanced CV-based matching. This tool is integrated with private interim office applications and adopted by Maltaâ&#x20AC;&#x2122;s employment agency. Other European countries have also shown great interest. Danneels also established an Agile Software Development Factory. The SAFE framework is now applied to all development and maintenance activities of the organisation. Priorities are set in common agreement with business owners. Instead of using yearly planning VDAB now runs on quarterly releases with 2-week sprints.

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To facilitate working with external third parties, Fasoli and her team also made some of the data securely accessible for third parties who are responsible for part of the services. They access the SAP system through a web interface, which has the same functionality as the Hera portal. Fasoli also initiated Heraâ&#x20AC;&#x2122;s Beam project for managing the commercial and industrial gas smart meter reading units. The information generated by the smart meters feeds the central information network and is easily accessible by operators. Furthermore, employees and external vendors can now use the available services through mobile devices, related for example to energy consumption, remote re-programming, technical, account and reporting activities, etc. http://ecoty.eu

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EUROPEAN RESEARCH PAPER OF THE YEAR 2015

Geographically dispersed colleagues can form strong bonds despite large distances.

Perceptions of proximity The winning paper of the 2015 European Research Paper of the Year award is ‘Beyond Being There: the symbolic role of communication and identification in perceptions of proximity to geographically dispersed colleagues’. The paper was co-authored by Michael Boyer O’Leary from Georgetown University (Washington DC, USA), Jeanne M. Wilson from Mason School of Business (Williamsburg VA, USA) and Anca Metiu from ESSEC Business School (Cergy-Pontoise, France).

Perceived proximity

Anca Metiu from ESSEC Business School (Cergy-Pontoise, France) Ilan Oshri from Loughborough School of Business and Economics (Leicestershire, UK)

Using a mixed-methods approach, the authors develop the concept of perceived proximity, which is created through communication, shared identity, and the symbolic aspects thereof. Building on previous theoretical work, they create and validate measures of perceived proximity. Then, they compare how perceived proximity and objective distance relate to relationship quality for collocated and geographically dispersed work colleagues. The results show that perceived proximity (i.e. a cognitive and affective sense of relational closeness) and not physical proximity (i.e. geographic closeness measured in miles or kilometers) affects relationship quality of dyadic work relationships. They also found that people’s perceptions of proximity mediate the effects

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of communication and identification on relationship quality. Using qualitative data (2,289 comments from 1,188 respondents coded into 9 themes), the authors explore the symbolic meaning of perceived proximity. They show how people can form strong bonds despite being separated by large distances and continue to shift the emphasis from information systems as ‘pipes’ or channels to information systems as vehicles for conveying shared meaning and symbolic value.

Runner-up The runner-up paper ‘Coordinating expertise across knowledge boundaries in offshore outsourcing projects: the role of codification’ was co-authored by Julia Kotlarsky from Aston University (Birmingham, UK), Harry Scarbrough from Keele University (Staffordshire, UK) and Ilan Oshri from Loughborough School of Business and Economics (Leicestershire, UK). The authors’ research helps to resolve contested understandings of the coordinative role played by codification. www.erpoty.com

To compete in rapidly innovating markets, creative thinking is a key skill for CIOs.

Non-linear thinking is key In the digital era, creative thinking has become a key skill for CIOs. Non-linear thinking helps them to leverage new approaches of ICT for competitive advantage of their organisations. Jamie Anderson, Adjunct Professor at the Antwerp Management School, is an academic and keynote speaker. He has been named as a ‘management guru’ by the Financial Times, and recognised as one of the world’s top 25 management thinkers by the journal Business Strategy Review, alongside internationally renowned thought leaders such as Gary Hamel, Philip Kotler and Henry Mintzberg. Anderson’s research focuses on strategy, innovation and corporate renewal. He is an award-winning author, and in his book ‘The Fine Art of Success’ he explores what firms can learn from the way creative artists innovate. At CIO CITY 2015 he led the workshop ‘Non-linear thinking in a transforming digital world’. A recent survey conducted among over 1,500 CEOs from around the world revealed that creativity is considered as the most critical skill for success in the 21st century. In this workshop Professor Anderson focused on creative thinking as a key skill for CIOs. First, the risks of linear thinking in an IT environment were discussed.

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Anderson explained that innovation in the industrial age was linear. “Look at Gillette. They invested millions to develop a razor with three instead of two blades. Wilkinson Sword responded with huge investments in a four-blade razor. This kind of incremental innovation is just linear, building on the previous product or service by slightly adapting it. In the digital era, this linear thinking has become insufficient. To be competitive in rapidly changing and innovating markets you have to deal with highly creative start-ups and all kinds of new products and services based on new technologies such as big data, cloud computing and mobility”, Anderson explained.

Competitive advantage Next, the workshop focused on the concept of non-linear thinking and explored how successful organisations can leverage new approaches of ICT for improvements in business performance and competitive advantage. To add more value to their organisations, CIOs will need to have the courage to bring in fresh new thinking. During this highly interactive session participants had the opportunity to reflect upon

CIOs will need to have the courage to bring in fresh new thinking.

Jamie Anderson, Adjunct Professor at the Antwerp Management School, is a ‘management guru’ focusing on strategy, innovation and corporate renewal.

their own creative potential and received practical guidelines to increase the level of creativity and innovation in their organisations. www.ciocity.com www.jamieandersononline.com

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In the digital era, IT needs to be a business-focused proactive partner and consultant.

A new IT model To deal with the new reality of the digital age we need a new type of IT function. IT has to be a technology and service broker enabling new business models, products and services. Ian Cox is Adviser to boards and CxOs on technology and digital, CIO columnist and author of Disrupt IT. At CIO CITY 2015 he pointed out the need for a new IT model in the digital age. “As the rest of the business moved forward into the digital age, IT got left behind. It is still based on an old model that was designed before technologies such as social, mobile and cloud existed and when the rest of the business had different needs and expectations of the IT team.”

‘In the new model, the CIO is not technical and needs non-IT experience.’

Ian Cox is an Adviser to boards and CxOs on technology and digital, CIO columnist and author of Disrupt IT.

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How should we deal with this new reality? “We need a new type of IT function”, Cox said. “The traditional service provider model for IT focused on building, supporting and maintaining the technology. The IT function no longer needs to be a service provider. The digital business needs IT to be a partner that provides and manages its access to external services. And instead

of reacting to requests from the rest of the business the CIO and IT function need to be working alongside the rest of the business, as a proactive partner looking for opportunities to use technology to create new business models, products and services and enhance the customer experience. In this new model the CIO and IT function act as brokers, providing advice, guidance and access to the technology required by the rest of the business. It is a far more important and valuable role but it requires a different type of CIO and a different type of IT function.”

Platform But what about the platform? “There are many unknowns which make it difficult to design a platform for the digital business. Digital moves quickly, new services, solutions and technologies are becoming available all the time, customer needs are constantly changing and so what is needed from the platform will also change.” “But we do know at least it has to be easy to integrate, data and services need to be available anywhere on any device and the platform has to be quick to change. CIOs can use these principles to guide the decisions they make to ensure they are building a platform that can support a digital business”, Cox concluded. www.ciocity.com

In this fast-changing era, effective (software) development requires a lot more agility than before.

Agile in the core Agility is at the core of effective (software) development. The practice and very notion of agility has repercussions that stretch beyond software development teams and even beyond IT teams. It has an impact on the very foundation of a company’s success. “Many development projects run over time and over budget. Often the solution does not offer what the business needs and many solutions have a lot of hindering errors”, said Arie van Bennekum, Thought Leader at Agile in the Core (Cegeka Group) and co-author of the Agile Manifesto, at CIO CITY 2015. “Whereas 15 years ago, everyone had a Nokia, today nobody does anymore. Product life cycles and time-to-market have become shorter. Competition comes from everywhere in the global economy and often we don’t even know who our competitors are. We have to deliver what the business needs but sometimes the business doesn’t even know itself what it really needs. In the traditional development model, after the analysis, the information was frozen throughout the entire development process. But in today’s fast changing environment the development of the right solution requires a lot more agility”, van Bennekum explained.

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“That is why you have to value responding to change over following a fixed plan. You have to welcome changing requirements even late in the development process. You also have to value individuals and interaction over processes and tools. Create interaction with the right stakeholders. Business people and developers should work together daily throughout the project. Also value customer collaboration over contract negotiation.”

‘In the traditional development model, the information was frozen throughout the entire development process.’ Agile mindset “Agile is not a method but a mindset”, continued van Bennekum. “It is a paradigm shift when you are used to traditional ways of working. After I

Arie van Bennekum is Thought Leader at Agile in the Core (Cegeka Group) and coauthor of the Agile Manifesto.

noticed over and over again that when people struggle to make Agile successful, it always comes back to basic techniques they have to know by heart to make it work. They have to understand why they use them and use them in a very disciplined manner.” “If you build development projects around motivated people and give them the environment, support and trust to get the job done, you will create value for your organisation”, van Bennekum concluded. www.ciocity.com www.agileinthecore.com www.agileconsortium.net www.agilemanifesto.org

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To go digital, CIOs need to partner with the business and make it more agile.

Digital leadership IT has to enable digital business transformation and the CIO has to play a partner role for the business in leading the transformation process. At the same time, CIOs need to spend part of their time and budgets on cleaning up existing IT systems and making the business more agile. Otherwise, they won’t be able to really go digital. processes. Digital transformation requires a shift in the organisation strategy and in how you measure results”, explained Gill at CIO CITY 2015.

‘You have to think about digitising your business strategy.’

Martin Gill: “Digital business transformation is a journey, not a destination.”

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According to Martin Gill, Vice President and Principal Analyst eBusiness and Channel Strategy - at Forrester Research, far too many companies consider digital transformation as their technology strategy. “But digital transformation is about a cultural shift in the organisation, how you think about innovation and how Digital transforms your business

“Digital business transformation is a journey, not a destination. You have to think about digitising your business strategy. You have to reinvent your business for the Social Age, the Mobile Age and the Digital Age. Don’t look at Digital as something built on to your existing organisation. Digital businesses continuously exploit digital technologies to both create new sources of value for customers and increase operational agility in

service of the customers. You have to master both sides of Digital: new digitally enhanced products and services, as well as customer data and insights.” The CIO has to play a critical role in digital transformation. “IT has to enable digital business transformation and play a partner role for the business in leading digital transformation”, Gill concluded.

Team sport Gerry Pennell OBE, Director of IT at the University of Manchester and Non-executive Director at UCAS, went on: “CIOs have to be successful enablers of business transformation. They have to focus on their role as a team player with the rest of the executives. Digital and delivering digital is really a team sport. Traditionally, CIOs were delivering projects and were responsible for technology. But now the world is changing so fast that technology leaders have to start enabling, driving and facilitating change. CIOs need to think very carefully about the new roles and missions of their departments. This might mean they need to look at the balance of skills they have. This might also mean they have to think harder about their sourcing models, rethink the way they prioritise and manage their projects and the way they engage in business strategy discussions.”

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Learning from jazz Carl Størmer, Trainer, Speaker and Musician at Jazzcode, has done what many people dream of. He combined two of his greatest passions - jazz and business - to create a successful company. Carl uses jazz and personal stories to illustrate how the interaction quality of teams can be improved. At CIO CITY 2015, he combined live music with talks on how to boost team work by learning the ‘jazzcode’. He explained how a jazz quartet actually functions. The band begins to play a melody. Then, on top of this, one of the band members starts to play a solo. The other band members will immediately adapt the way they play in order to create a harmonious common sound. This way, a small ensemble of jazz musicians - often playing together for the first time - can instantly create an extraordinary musical experience.

Gerry Pennell: “Technology leaders have to start enabling, driving and facilitating change.” Carl Størmer: “Jazz music shows that being fully present in the moment enables instant creative action in unpredictable circumstances.”

CIOs need to think very carefully about the new roles and missions of their departments.

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people to become more agile and IT should play the role of evangelist to make things move. Another problem is that most big companies are running too many systems, CRMs ERPs, interfaces, codes, etc. This is especially the case when they have been facing mergers and acquisitions. At the same time, the market is asking for new apps based on a single code. So, they have to go back to the basics and first clean up their IT. Otherwise, they won’t be able to go digital.”

Marcello Cordioli: “Make simplification a KPI and reward people for reducing the number of systems and interfaces.”

‘We first need basic systems that are agile.’ “This kind of improvisation requires the musicians to be fully present in the moment”, Størmer explained. “Presence is the most important factor. It enables instant creative action in unpredictable circumstances.” The ‘jazzcode’ example helps leaders and professionals improve their performance by strengthening their ability to collaborate and be creative in complex circumstances. “This concept requires a shared language and works best in small and slack teams”, Størmer added.

Basics first Marcello Cordioli, Global IT Officer at Lixil and CIO at Permasteelisa, identified two problems regarding digital business transformation. “Many companies are like ‘stone cats’. Their business organisation is not ready to go digital. They need to start educating

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So, what can we do? Cordioli sees two options. “First of all, make sure your stakeholders understand that there still is a lot of maintenance and cleaning to be done in the existing systems. We need basic systems that are agile. If not, our digital transformation is not going to happen. Secondly, make simplification a KPI and reward people for reducing the number of systems and interfaces and for upgrading systems to the latest versions.” Cordioli’s conclusion is that we have to respond to the demands of Marketing and Sales to develop new apps, but at the same time, we need to spend part of our time and budgets on making business more agile and cleaning up existing IT systems. www.ciocity.com

The CIO community is supporting major international programs.

Supporting science and society The CIO community is playing a leading role in supporting major international research programs. In order to find solutions to support its long-term research objectives, CERN collaborates with many innovative IT companies. The community is also being solicited by another international institution - UNESCO - to support its information society agenda. At CIO CITY 2015, Alberto Di Meglio, CERN openlab Head at CERN pointed at the need for joint collaboration between CERN and industrial companies in the ICT sector. The detectors of CERN’s LHC (Large Hadron Collider) generate around 1 PB/s of data. “If we had to use the technology of the sixties, it would take 13 million years to process all the data”, said Di Meglio. “But today we make use of a worldwide computing grid. This distributed computing infrastructure consists of half a million cores working on a 24/7 basis. They process the data in one year. Nevertheless, we see that the increase of data processing speed is slowing down. Therefore, to provide for next generation research we have to find new technologies. That is why the CERN technical teams collaborate with innovative IT companies to find solutions to support the long-term research objectives of the LHC accelerator at CERN”, Di Meglio concluded.

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“We know that around 1 billion people all over the world are suffering from some kind of disability and that some 750 million people are illiterate. At the same time we also know that companies have technological solutions for these kinds of problems, but they don’t get to the ones who need them”, stated Indrajit Banerjee, Director at UNESCO, at CIO CITY 2015. “This is why UNESCO is now working on the information society. “To accomplish that, it is important that we establish partnerships with different stakeholders. We cannot only work with governments. We have a much larger agenda and are trying to change societies with a development agenda. We therefore also have to collaborate with private partners, civil society and expert groups such as CIONET. From a UNESCO point of view the question is: “How can we capitalise on the knowledge of the CIO community to create a knowledge society?” www.ciocity.com

Alberto Di Meglio, CERN: “The increase of data processing speed is slowing down. Therefore, to provide for next generation research we have to find new technologies.” Indrajit Banerjee, UNESCO: “We have to collaborate with governments, private partners, civil society and expert groups such as CIONET.”

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How can the CIO keep the lead in the digital transformation process?

The CIO’s business impact Digital transformation can be initiated by any part of the business. To make sure that the IT division keeps the lead, the CIO has to team up with the business and with external valueadding partners such as other companies, start-ups, customers, etc.

Moreover, in the digital world companies have to use new technology, such as big data, to track and trace the customer’s needs and behaviour and constantly experiment with the range of products and services they offer. The digital leader also has to team up with value-adding partners such as other companies, customers, start-ups, etc. Close collaboration between digitally connected partners will help to develop value-creating strategies and models for the entire ecosystem. Finally, the digital leader has to open up his digital assets for reuse and combination with those of external partners.”

Keep the power

Toon Martens, Vice President Operations & IT at Aviapartner Stijn Viaene, Professor and Partner of Vlerick Business School

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Stijn Viaene, Professor and Partner of Vlerick Business School, offers insight into digital transformation through a framework for digital leadership called ‘the ExConomy’, which refers to the words Experience, Experimentation, Collaboration and eCosystem. Viaene: “Using social media in a highly targeted manner allows companies to respond to their customers’ specific needs, improving their overall customer experience.

Toon Martens, Vice President Operations & IT at Aviapartner: “As from 2010, we carried out a complete transformation of our IT organisation, outsourcing, applications and infrastructure. At the same time, we evolved from the role of a service provider to the one of a business partner, e.g. introducing the Amadeus departure control system as a commercial enabler.” What were the most important lessons learned from this transformation process? “Make sure you introduce the right processes and IT. Achieve continuous improvements with discipline and hard work. Thirdly, don’t just be an IT provider but talk with the business to find out what they really

need. Also be careful about how you position IT in your company. If you act as a supplier, they will treat you as a supplier. Position yourself as a business partner who educates the business and shows added value. Finally, keep the decision power and the budgets in the IT department. Doing so, you are more likely to be regarded as a board member instead of a supplier.”

Define the IT role How did Veerle Lozie, Global IT & Operations Manager at Melexis, put IT on the business radar? “First of all, you have to clearly define the role of IT. Does your department want to be an exclusive taxi service or a solid bus service? At Melexis we chose to be the latter, which implies that we don’t respond to each and every specific request from the business. Secondly, we put the customer first. That is why partnering with the business is key at Melexis. In addition to customer orientation, we also focus on other strong corporate values, such as respect, enjoyment, profitability and leadership. Leadership implies that everybody in the team is responsible for the team’s success. Furthermore, IT has to be innovative but you need to really understand what innovation means. You have to look for a smart blend of creative innovation and lean quality.” Should we engage in the ‘next big things’ such as big data

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and IoT? “Don’t miss the bus of the next big thing but team up with the business and choose your battles consciously.”

Veerle Lozie, Global IT & Operations Manager at Melexis Peter Billiau, CIO of EDF Luminus

Co-create the strategy Peter Billiau, CIO of EDF Luminus, explains how the CIO could influence the business. “Since 2012, utility companies have been experiencing tough market conditions and IT has been facing underinvestment. At the same time, key enablers for growth are new smart services, e.g. smart meters at the customers’ homes. Our reaction was to invest in sustainable development and growth. The EDF-Luminus IT mission statement became ‘progress powered by IT’. To face the challenges, the CIO has to evolve beyond IT and become the Chief Innovation Officer. To do that, the CIO must ensure his relationship with the CEO evolves. The CEO should deliver a business strategy, provide IT with the means to deliver and empower IT within its scope. This approach will enable CIO to identify the right combination of physical and digital means to create wholly new sources of value and co-create the future corporate strategy.” This article is based on the CIONET Belgium event ‘The Business Impact of the CIO’, which was held on May 5th 2015 at the Vlerick Business School in Brussels.

The CIO has to identify the right combination of physical and digital means to create wholly new sources of value.

CIONET Belgium EVENTS

A stronger relationship between the CIO and the CMO is required to maintain customers, win new ones, and to serve and retain them.

When the CIO meets the CMO How should the relationship between a CIO and a CMO be in order to have success for both? Is there confidence between these roles? Before CAPEX and OPEX annual budgeting, should CMOs and CIOs be aligned in a unique technology strategy? Is this possible? In a world where IT has become integrated into the nervous system of companies and societies, CIOs and their teams are the new heroes who lead change and innovation in the organisations, since technology keeps revolutionising the way we work and interact and is creating new models which in most cases are very different from the traditional ones. It is in fact expected that the organisations which will increase in the present and the years to come, are those where CIOs and CMOs build together â&#x20AC;&#x2DC;Information Technology and Communication Strategy Plansâ&#x20AC;&#x2122; focused on the customers and their digital experience in accessing company information, product purchases and administration of comments, suggestions, complaints and claims. As part of the first CIONET Colombia annual event, this theme was

EVENTS CIONET Colombia

discussed by a panel, taking into account the following: -- According to Forrester and Forbes, in Europe only 60% of CMOs trust in their CIOs. Why is this? -- According to Forrester and Forbes, in Europe only 47% of CMOs are in agreement with the idea of having a CAPEX and OPEX annual budgeting defined by CMOs and CIOs as a single technology strategy. What is the reason? -- Could the CMO and the CIO choose and implement technology solutions together? According to Forrester and Forbes, in Europe only 51% of CMOs believe in this. Why? -- The customer is not always at the centre of technology initiatives proposed by CIOs and CMOs. According to Forrester and Forbes, in Europe only 51% of CIOs think that customers are the focus and only 46% of CMOs think the same. Is there any reason for this?

Outcomes One of the main outcomes from this debate was that CIOs and CMOs must work together on business strategy. This means their initiatives should respond to organisational requirements, not area needs. In this way their confidence must increase and CAPEX and OPEX annual budgeting should be aligned in a single technology strategy. Another conclusion was that CIOs and CMOs can select and implement technology solutions together and the advice here is to have detailed plans with keystone goals to be reached in order to increase confidence between these two roles. Prior pilot exercises could be considered to better define big projects. Also, every change in any requirement should be defined taking into account its impact in terms of human resources, timeline and investment. Therefore a written

Fernando Llano CIO at Crystal Group in Colombia (l.) and Ricardo Olarte CEO of CIONET Latam North (r.).

agreement must be signed in order to approve it, thus avoiding any further misunderstanding. Moreover, CIOs and CMOs should consider that customers are at the centre of any technological initiative and in 2015 CIOs and CMOs must work together to obtain, serve and keep customers by: -- clarifying roles and responsibilities, -- directing together the service transformation process where the customer is the centre of attention, -- leading digital services for mobile devices, -- ensuring that data stored in systems allow timely decisions regarding market trends. Finally, the panel pointed to the difference in focus between the CIO and the CMO. CIOs, in general, are working to keep everything related to information technology and

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communications. But CMOs are generally working to develop strategies for higher sales volume and margins. Will the creation of a new role, such as a CDO (Chief Digital Officer) or CMTO (Chief Marketing Technology Officer) be needed?

â&#x20AC;&#x2DC;CIOs and CMOs should consider that customers are at the centre of any technological initiative.â&#x20AC;&#x2122;

Patricio Melo (CIO at Davivienda Bank) and Maritza Perez (CMO at Davivienda Bank). I also wish to thank Alberto Pradilla, CIO at Digital Colombia and President of the CIONET Colombia Advisory Board, and Ricardo Olarte, CEO of CIONET Colombia, for their passion and commitment to the success of this event and the entire CIONET Colombia annual program, along with all the members of the Advisory Board for their support and participation in all the activities of CIONET Colombia. This article was written by Fernando Llano, CIO at Crystal Group in Colombia.

Keynote speakers As host or moderator of this panel, I want to take this opportunity to express my gratitude to the four keynote speakers: Roberto Puche (CIO at Telefonica Colombia), Juan Vicente Martin (CMO at Telefonica Colombia),

CIONET Colombia EVENTS

When the CIO meets the CEO, should IT become a line of business?

CIO meets CEO We live in an era of unprecedented digital change that is reshaping the relationship between customers and companies, breaking down the walls between industry sectors and, by extension, prompting forward-thinking CEOs to question the very business they are in.

In what ways do the business and its operational model need to change to fulfil evolving customer needs? How do we ensure access to the right skills now and in the future? How to assess the impact of cross-sector competition, emerging business models and new technologies? How to navigate the sea of information out there in order to focus on the things that really matter? Three top CIOs and two top CEOs, invited by CIONET Italy at the Italian CIOsummit 2015, gave their answers at this crowded event that took place in Milan on 21 May 2015. More than 40 CIOs and IT Directors from Top Italian companies were present at this high profile event on the relationship

between the CIO and the CEO in the era of transformation. Basically, the CIOs asked the CEOs for the opportunity to spend more on creativity, agility and velocity at work. “Stop considering IT as a business service function only. Start managing IT as a line of business that creates value added services. Stop measuring the IT function in terms of cost reduction only. Start measuring the IT function by the value that it is creating for the business”, they asked.

CEO view What were the views of the two top CEOs? “Customer care and a number-driven approach are the two strategic and priority factors in

The CIO needs to evolve his/her role to become a strategic partner of each line of business. Giuseppe Tamola, Head of Italy and Spain at Zalando

EVENTS CIONET Italy

Marco Terranova, CEO at SBB Cargo Italy

our business model”, said Giuseppe Tamola, Head of Italy and Spain at Zalando. “Monitoring and data in-depth analysis ensure that we constantly test new features and make improvements to our services regularly. This day-by-day working impacts directly on the indices related to customer satisfaction, our priority KPI. As the CIO is at the core of technology, he cannot ignore these considerations”, he went on. “Our customers are interested only in the punctuality of our trains and the quality of our services”, Marco Terranova, CEO at SBB Cargo Italy, pointed out. “The IT function is fundamental to ensuring that everything works on our 600 trains that run across four different countries every day” he explained.

CIO view In their turn, the three top CIOs also formulated their views. “What is clear to us is that Digital is not simply one more element added to the list. It is not just one more channel. It’s different”, stated Enzo Bertolini, Group CIO at Ferrero and President of the CIONET Italy Advisory Board. “It’s about changing the way we are

Enzo Bertolini, Group CIO at Ferrero and President of the CIONET Italy Advisory Board

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operating. This transformation has to be understood by and shared with the CEO, the first innovator inside the organisation. On the same wavelength was Luciano Guglielmi, Group CIO at Mondadori. “In my opinion, in a world in which the bottom line depends more and more on technology, the CIO needs to evolve his/her role from being a simple manager of technology to being a strategic partner of each line of business”.

‘Start measuring the IT function by the value that it is creating for the business.’ “At Georg Fischer, IT governance is under the control of a team, called the IT board”, explained Marco Tagliavini, Corporate IT manager at Georg Fischer. “The IT Board is a multi-competences and skills team, composed of the Chief Financial Officer of each of its three divisions, the Chief of the internal audit department, the Strategic Director and the Corporate IT manager.

Luciano Guglielmi, Group CIO at Mondadori

What’s next? CIOs and CEOs will continue the conversation they started at the CIOsummit 2015. CIONET Italy has prepared a booklet called ‘CIO MEETS CEO’, in which it has collected the different points of view from the Italian CIOs. The basic question to the CIO is: “What do you expect of the CEO to ensure that IT is and will be relevant for the innovation process of your company?” On the other hand, the question to the CEO is: “In your opinion, what is and what should be the role of IT and the CIO inside your company?” CIONET Italy would like to invite all the CIOs of the international CIONET community to contribute to this work in a crowdsourcing approach. CIONET Italy will be very happy to receive the contributions from CIOs and CEOs of every country. It will collect and share all the contributions inside and outside the community. Are you interested? For you, this is an opportunity to gain digital visibility on the theme of Innovation. For more information, please contact CIONET Italy.

Marco Tagliavini, Corporate IT manager at Georg Fischer

CIONET Italy EVENTS

The new community will help Digital Leaders to better position themselves amongst the many challenges.

CIONET arrives in Brazil The largest European network of CIOs and IT leaders arrives in Brazil, the world’s sixth-largest ICT market, representing 40% of investments in technology in Latin America. The so-called third platform, involving technologies such as IoT (Internet of Things), 3D printing, Cognitive Systems, Robotics, Neural Interfaces and Next Generation Security will be the basis for accelerating innovation and business in companies. The Brazilian ICT market will continue to grow above GDP, but this year, the increase is more moderate, in the order of 5% compared to last year, moving to $ 165.6 billion, according to the latest study from IDC. The telecom market will continue rising and will still be almost 80% higher than the IT market in Brazil, reaching $ 104 billion in revenues. Mobile and professional services for corporate networks will boost demand, and 4G must acquire critical mass, surpassing 11 million users by the end of the year, says IDC Brazil. In 2015, IoT will continue expanding in the country.

EVENTS CIONET Brazil

By the end of the year it is estimated that 130 million devices will be connected, equivalent to half of ‘things’ connected in Latin America. IDC says that CIOs are increasingly aware of this market, but considers that there are still many questions, especially regarding the cloud, security, networking and business model. Regarding Big Data/Analytics, experts believe that the proximity of the line of business executives (LOB) and a better understanding of the possibilities that technology offers will make new projects shift their focus from assessment and problem-solving to innovation and competitive differentiation - 35% of the budget for Big Data projects will come from business executives - which should also boost projects related to IoT initiatives. “The tendency is a more active participation of vendors in the

The CIONET Brazil Advisory Board expects the community to count 200 members representing large and medium-sized companies from various segments by the end of this year.

project definition process with customers, often bringing a risk-sharing proposal”, says IDC. The market for Business Intelligence and Analytics should reach $ 788 million of investments in Brazil by the end of the year.

CIONET in Brazil The timing could not be more suitable for the arrival of the CIONET network. According to the above reported scenario, CIOs and IT leaders today face many challenges related to strategy, management, innovation, labour and budget. These are exactly the biggest concerns and focus of the discussions within the CIONET community, that

through the sharing of experiences, case analyses, expert presentations, reports and research, helps Digital Leaders to better position themselves amongst so many challenges. We count on the valuable collaboration of the following members of the CIONET Brazil Advisory Board: -- Prof Dr Nicolau Reinhard, PhD, IT MBA, General Coordinator at FIA, -- Guilherme Cruz, CIO at Wilson Sons Group, -- Luis Phelipe, CIO Brazil and CTO Latin America at The Coca-Cola Company, -- João Lencioni, CIO Latin America at GE Corporate, -- Renata Marques, CIO Latin America at Whirlpool, -- Dave Gonzalez, Country Manager of Intel Brazil, -- Agenor Leão, VP Digital Technology (CIO) at Natura, -- Teresa Sacchetta, CIO at Grupo Fleury, -- Julio Baião, CIO at Via Varejo (Casas Bahia/Ponto Frio), -- Adriano F. Oliveira, CIO at Rede Dór (Hospitais São Luiz), -- Christiane Edington, CIO at Telefonica Brazil, -- Prof Nivaldo Marcusso, FIA, -- Alexandre Donner CIO at Infoglobo. -- Alex Tosetto, CIO Latam at DHL -- Roberto Portella, CIO at Valor Economico -- Luzia Sarno, CIO at Copersucar The local community of IT leaders has positively welcomed CIONET. We already have over 100 members representing large and medium-sized companies from various segments, and we expect to reach 200 by the end of this year.

Testimonials Luis Phelipe: “There are many issues, from the growing pressure to reduce costs (do more with less) to the never

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ending run to keep the pace with constant technology innovations. My favorite one is to keep up innovation. It is a challenge to build your IT plans when you know that very likely the entire technology landscape may change in less than 2 years. And if you add to this equation the fact that consumer-driven technology runs even faster, things can get really crazy and out of control. That is where CIOs have a crucial role in putting some order to the chaos and making sure that the IT organisation delivers value to the business. We have to use the CIONET network to learn from the experiences of our peers. But this can only happen if we have the spirit of collaborating with each other in a transparent manner.” Guilherme Cruz: “New technologies are changing the way companies are doing business. Enterprises need to deliver superior performance faster than ever before. As a CIO, our challenge will be to leverage technology and improve business results. We must find game-changing innovations and process improvements that have a real impact. Driving business innovation, we should be cultivating partnerships and developing business strategies. Using CIONET as a collaborative and user-friendly environment will enable us to exchange ideas, solve issues and create good solutions. We have an international high level network that allows us to share experiences, provide information and help each other to achieve our goals.” João Lencioni: “The meshing of the physical and digital world is creating unparalleled opportunities for new business models and is likely to impact every industry, as it will change the way companies design and deliver products and services. As this is a technology-based transformation, CIOs must take a leading role

in guiding companies to understand the landscape of possibilities and how they can influence or change business plans. A lot of the technologies and capabilities that will drive these new business possibilities will have to be understood and experimented by CIOs, and there will certainly be pressure for speedy learning curves. CIONET could foster the exchange of experiences as CIOs try and learn new platforms and solutions, and understand how to find and balance the new resources and partnerships required to succeed.” Prof Dr Nicolau Reinhard: “FIA professors and researchers, in their association with the University of Sao Paulo, have, for years, been educating Brazilian CIOs in coping with the challenges of the digital enterprise: leading the provision of sustained mission-critical services, conceiving technology-supported business models and acting as innovation entrepreneurs and intrapreneurs. Their business environment is increasingly constrained by legislation, standards, public opinion, competition and scarce resources, requiring new personal and business skills. FIA provides an environment for building awareness, providing solutions and developing personal managerial competences. CIONET plays an important role in complementing this process nurturing selected personal networks, allowing benchmarking, giving access to technical and management information sources, sharing tacit market knowledge and raising personal visibility. In an increasingly globalised community, linking the Brazilian CIOs to the world-wide CIONET network is of special value to all participants.” CIONET Brazil has the support of FIA (Fundação Instituto de Administração) through its MBA in IT Management and Intel Brazil as strategic partners.

CIONET Brazil EVENTS

CIONET Germany supports CIOs to become marketing-savvy.

Enhancing Digital Leadership In today’s rapidly changing environment both the IT and the Marketing function are facing new massive challenges. That is why they need to discuss these together and find ways to a successful collaboration between both departments. Based on its ongoing ’CIO Stakeholder Agenda‘, in which CIONET Germany aims to engage its members with the other stakeholder groups of the CIO Ecosystem, it organised a CIO round table themed ‘CIO meets CMO’ in March 2015. The aim was to share the challenges both the IT and the Marketing function are facing and to discuss ways in which a successful collaboration between both teams can be created. The round table was kicked off by Pascal Matzke, Global Leader CIO Practice at Forrester Research who presented some showcases of successful collaboration between Marketing and IT. But he also warned the attendees that existing silo structures in organisations need to be overcome to make this possible. His advice was: “Sit close to each other, so that you can listen and learn from each other every day. Once you speak a common language, create a joint business case and present it together to the board”. Christiane Ritter, who has an outstanding track record as Marketing Executive both in the B2B and

EVENTS CIONET Germany

Consumer markets and who has recently joined CIONET Germany as Associate Director to provide practical and customised marketing knowledge to our German members, shared the set of expectations of CMOs and how the appearance of the ‘Prosumer‘ is influencing the go-to-market strategies of companies. She also introduced the attendees to important marketing topics such as Customer Journey and CLTV (Customer Life Time Value) which are aimed at building long standing customer relationships.

Enhanced CIO profile In a recent interview, she highlighted the importance of enhancing the profiles of CIOs with marketing know-how both for business and for personal reasons. “CMOs are under tremendous pressure to provide timely and precise information on customer behaviour and expectations, based on state-of-the-art technology solutions. Marketing-savvy CIOs understand these needs and can support their marketing peers with best-inclass solutions”, she explained. Adding to that, Christiane Ritter is convinced

”that for those CIOs, who want to play an important role in the business transformation process of their organisations, sound marketing understanding is of strategic importance”.

‘Existing silo structures in organisations need to be overcome.’ During the discussions at the event many very important topics were raised. Obviously the differences in culture and speed of execution between ‘brick and mortar’ organisations compared to e-commerce/Internet companies were highlighted. While in the latter category a collaborative culture is part of the organisation’s DNA, for traditional (large) enterprises a top-down approach was the common recommendation of the CIOs, in order to overcome the abovementioned silo thinking. Most CIOs conceded that IT was too defensive in the past, but agreed that a proactive approach presents a huge opportunity for CIOs to increase their standing. They also agreed that it might be

What’s next on the CIONET Germany Agenda for 2016? CIONET Germany strongly believes in its mission to make CIONET members more successful in their roles.

improve the collaboration between the CIOs and their major internal and external stakeholders.

To achieve that goal and based on the input of its local CIONET community, every year CIONET Germany develops - together with its members and local Advisory Board - the CIONET agenda and activity planning for the upcoming year.

In the coming months CIONET Germany will organise Discovery Meetings in which it will introduce new exclusive CIONET Programs, whith the aim of supporting the CIONET members in their personal development as well as in addressing their genuine business challenges.

What’s next on the German agenda? Based on the positive feedback received, CIONET Germany will continue to roll out its ’CIO Stakeholder Agenda’, enabling an open exchange of ideas on how to establish and

worthwhile to start with quick wins and drive the collaboration deeper, based on these first success stories.

CIONET Germany’s new offerings The importance of a good working relationship between IT and Marketing has been discussed many times before. In a recent study, Korn Ferry states that “more than ever, CMOs and CIOs need to be fluent in each other’s languages”. In addition to that, it was highlighted that best in class CIOs and CMOs also speak the ‘language’ of their enterprise-wide goals and the priorities of the CEO and board. So, where can CIOs get this marketing knowledge customised to their specific needs? Based on the feedback from the ’CIO meets CMO’ round table, as well as from conversations with individual members, CIONET Germany is currently rolling out a set of new offerings, which are aimed at delivering custom marketing content to CIOs in different formats, either as individual mentoring services or as workshops or deep dive sessions for

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The third component of the agenda addresses the five building blocks of a Digital Strategy: improve customer experience and engagement, increase efficiency, improve business decision

specific marketing topics. CIONET Germany is taking the lead on member services related to marketing content for CIOs. But it is also preparing the launch of its new CIONET mentoring services (including the CIONET Peer Group Program), CIONET Insights (services from the community for the community) and the Executive Learning Services (such as the Social CIO). All these new services have one common goal: supporting the German CIONET members in this quickly changing environment to become great CIOs and Digital Leaders.

making, improve innovation and transform the business. Interested in participating and contributing? As a German CIO you are invited to join the CIONET Germany community and benefit from its extensive services offering. As a C-Level Executive from outside of IT please connect in order to join CIONET Germany’s respective Stakeholder Collaboration Events. If you are interested in contributing to the agenda, please contact CIONET Germany: tobias.frydman@cionet.com

Pascal Matzke, Global Leader CIO Practice at Forrester Research: “Once IT and Marketing speak a common language, they can create a joint business case and present it together to the board.”

Christiane Ritter, Associate Director of CIONET Germany: ”For those CIOs, who want to play an important role in the business transformation process of their organisations, sound marketing understanding is of strategic importance.”

CIONET Germany EVENTS

CIONET Luxembourg focuses on the Digital Lëtzebuerg project.

The challenges of a digital nation The Golden-i Gala 2015, a not-to-be missed event for the IT community where the annual ’CIO of the Year’ award is handed out, took place on June 4th at the Casino 2000 in Mondorf-lesBains. More than 800 decision makers from the IT sector were present for an unforgettable evening.

Pierre Zimmer, CIO of the POST group, CIO of the Year 2015: “You can expect the POST group to create innovative projects at different levels in the months to come.”

At the Golden-i Gala 2015, the key issues for the CIOs of today and tomorrow were discussed. The speakers at the event were Brendan Ives, CEO of TeliaSonera International Carrier; Robert Madelin, Director-General of DG Connect, European Commission; and Paul Louis Iske, Professor, Open Innovation and Business Venturing at the Maastricht University, and Chief Dialogues Officer at ABN AMRO. They presented their vision of digital and disruptive innovation, FinTech and the importance of eSkills for Luxembourg. These issues are at the focus of the working groups set up by CIONET Luxembourg that support the government’s Digital Lëtzebuerg project.

EVENTS CIONET Luxembourg

Another guest was Prime Minister and Communications Minister Xavier Bettel. In his speech he evoked Luxembourg’s challenges to become a digital nation and the need to replace silo thinking by a more horizontal vision.

need to face up to in a world that is becoming more and more digital. He said CIOs have to collaborate better to develop innovative projects. “You can expect the POST group to create innovative projects at different levels in the months to come”, he said.

CIO of the Year

‘Silo thinking needs to be replaced by a more horizontal vision.’

Also at the Golden-i Gala 2015, the CIO of the Year was celebrated. This award, sponsored by PwC Luxembourg, is handed out to the CIO who stood out from the crowd in the past year. Pierre Zimmer, CIO of the POST group, was honored by his peers for his impressive career that has included various positions at state institutions, amongst others the CTIE and Luxtrust, and which led him to the position he has been occupying since last year. In front of more than 800 people, Pierre Zimmer said it was an honor for him to receive the award. He talked about the challenges that CIOs

Pierre Zimmer will represent Luxembourg at the 2016 European CIO of the Year awards, the annual event organised by CIONET International. One of the 2015 European CIO of the Year award winners is Jean-Luc Martino, CIO of Raiffeisen Luxembourg. He received the award in Brussels the same evening (http://www.itnation.lu/news). This article was written by ITnation.

Dealing with the new ways clients access information about products, prices and competitors.

New quality standards within a customer approach IT may play a key role in implementing new standards for the customer approach and in gaining a competitive advantage. The CIO becomes an initiator of changes aimed at identifying and satisfying clients’ needs in all distribution channels. During the meeting organised by CIONET Poland, entitled ‘Focus on Customer’, Dawid Pawłowski, Senior IT Business Partner, EMEA Marketing Systems, Poland & Nordics, at Avon Cosmetics Polska, emphasised the need for comprehensive thinking about business and IT. At Avon, he manages very complex solutions used by approximately 235,000 sales agents working out of office. They are the most important customers of the company. Implementing a real omnichannel strategy in a direct-selling company is a huge challenge and may be a key factor in gaining a competitive advantage.

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“The IT department must be aware that clients’ requirements change and it should help in satisfying these evolving expectations”, said Piotr Chrząszcz, Sales Channels Department Director at T-Mobile Polska. In his opinion, there are three apparently simple rules to be followed in customer service: ‘I know who you are’, ‘I can provide you with an individually tailored offer’ and ‘I will remember who you are when we meet next time’. “If a logistics company operating on a global scale is to attract and keep its clients, it cannot afford any downtime of the IT systems. Modern customer service in a company such as DHL Parcel is about ensuring continuity of operations”, claims Łukasz Sibielak, CIO at DHL Parcel Poland, where he has managed to build up a mutual understanding and trust between IT and business.

‘The IT department should help in satisfying client’s evolving expectations.’

change is more apparent than real. “The decision-making process is ruled by the same principles as before. What has changed is the way clients access information about products, prices and competitors using mobile appliances while entering a retail outlet.”

CIONET Poland events CIONET Poland has been in business since November 2014. It has already organised four very successful events dedicated to the following subjects: Digital Leadership, Business Change Management, Agile in Business and Focus on Customer. This year, during the CIONET Poland Annual Conference, discussions will take place on Security and Virtual Teams as well as on the subject of the biggest challenges facing CIOs.

The CIONET Poland event ‘Focus on Customer’ was held on 15 June 2015 in Warsaw.

It has become commonplace to say that clients’ behaviour changes, but according to Grzegorz Wachowicz, General Director of Sony Poland, this

CIONET Poland EVENTS

CIONET’s research provides its members with vital insights for success.

Keeping a finger on the pulse In total, CIONET International will conduct seven major research projects in 2015. Surveys and research are becoming a substantial part of CIONET’s activity, as they provide our members with vital means to benchmark themselves with peers on specific, vital subjects, and help them become more successful. Key European IT Management trends for 2015 This research is based on a survey conducted with over 2,500 respondents globally, and investigates subjects such as IT priorities, organisation, budget, time allocation and the reporting structure of IT divisions. For the second year in a row, ‘IT and business alignment’ comes out as a key management concern for CIOs. Looking at the future developments of the IT organisation, ‘value to the

Value to the business Organisational reporting The survey report ‘Key European IT Management trends 2015’ reveals that ‘value to the business’ and ‘organisational reporting’ are seen as the major drivers of future change.

STRATEGY CIONET International

business’ and ‘organisational reporting’ were seen as the major drivers of change. 2015 European Digital Leadership Report: Turning Digital into Value This report is designed to help business leaders who are concerned about digital disruption and who are keen to become competitively agile. It consists of profiles of 23 digital leaders – all of whom have been selected by peers as the most accomplished in their respective countries – with valuable insights into how they have helped transform the disruptive potential of digital technologies into competitive advantages. Benchmark yourself with your peers in positioning IT Services This report is based on a survey conducted in March and April 2015. It investigates practices with regard to chargebacks of IT services, governance tools and KPI measurements. Among other findings, the survey shows that only 50% of IT divisions are using KPI’s and dashboards to update C-level executives regularly.

What governance does IT need to support an Agile Business? Based on a survey among CIONET’s 5,000 members, this research investigates which performance indicators are needed for IT and business agility. It identifies do’s and don’ts in Agile IT and uncovers best practice minimum governance requirements. (Report coming soon) All the research is freely available for download on: www.cionet.com/ research For any question related to CIONET research feel free to contact Frederic De Meyer, Head of Research and Programs at CIONET International: frederic@cionet.com

Innovate like Paul, with agile by Cegeka

Cegeka is very proactive in helping us think about what we want to achieve. We look at how we need to shape future projects together, and how we can further improve the IT organisation. European CIO of the Year, Paul Danneels, chose Cegeka as strategic partner for agile development.

Cegekaâ&#x20AC;&#x2122;s Agile Software Factory helps organisations with custom built software to support specific needs and create competitive advantages. This virtual operation, with onshore and nearshore teams in 11 European countries, achieves higher quality software with shorter time-to-market and lower total cost of ownership. Discover what we have learned in 10 years of agile practice:

www.cegeka.com/agile

The Russian CIO community advances the digital agenda of unabated transformation.

IT is transforming the business in Russia Information technology has been the necessary condition of business for a long time, but rapid development and adoption of technology led us for the past decade to a world where IT itself does not give competitive strengths. Business is quite clearly accelerating to the speed of thought, and the only way to stay in the market is by unabated transformation. Vladimir Soloviev, CIO of Financial University under the Government of the Russian Federation: â&#x20AC;&#x153;IT helps us to receive from each one according to his ability and to give back to each one according to his need.â&#x20AC;?

Tangible product markets are transforming into intellectual and digital goods markets.

Banks are now truly virtual, and core banking is now running not in the system of branches, but in the system of data centres and client devices. Cash is transformed to electronic money. It is barely thinkable to believe that production life cycles, supply chains, and sales management could work without information systems. Technology innovations are playing the key role even in mining, and the shale revolution proves that innovations could lead to a radical change of the supply and demand balance. In general, the state of technology development and adoption in Russia is the same as in most European countries but Russia, being a big country, has many large and very large enterprises. For example, Financial University with 60,000 students and 2,500 professors is

THE NEXT CIO CIONET International

one of the leading Russian scientific and educational centres, but not the largest one. Facing the challenge of moving from business process automation to ITenabled business model engineering, most Russian CIOs now have a track record of transforming their organisations by moving them to the cloud, enabling mobility and introducing social functions. Around 30% of large Russian enterprises consider their sales and marketing activities as the main area of IT-enabled transformation, 27% are transforming operations, production and supply chains with the use of IT, 20% of organisations are changing their finance units, 18% are transforming their client relationship service, and only 5% see the challenge in back-office transformation.

Boris Slavin, Academic Supervisor at the Faculty of Applied Mathematics and Computer Science of Financial University under the Government of the Russian Federation, ex-CIO of several large Russian enterprises, one of the founders of the Russian CIO Union: “We are working hard on developing IT solutions allowing us to produce collective intelligence, not just to average individual competences and not just to add them, but to create synergetic advantages.”

A couple of million small enterprises in Russia now not only have their sales in the web, but also use a lot of business processes as services, from printing to accounting.

Main challenges What are the main challenges in our digital agenda? First of all, we now see that tangible product markets are transforming into intellectual and digital goods markets. The main products in the university are not lectures and seminars given in tangible classes, but the ability to perform research applied to real world organisations and online courses based on the results of our research. These electronic courses could be accompanied by offline education or could just go fully virtual. As we understand that having the ‘long tail’ of niche value propositions may be more profitable than producing bestsellers, we now have the learning management system (LMS) helping the students to build tailored educational programs. The system also helps the university administration to manage such customised educational programs. Now we are transforming our LMS into a university competence management platform by making the service available to external organisations in order to help them search through our R&D competences, and the service helping

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the university administration to train and manage R&D teams. We are working hard on developing IT solutions allowing us to produce collective intelligence, not just to average individual competences and not just to add them, but to create synergetic advantages.

‘Most Russian CIOs now have a track record of transforming their organisations.’

own devices. We have now published all the training applications in the cloud, making our training information systems available to the students and professors over the network from anywhere. In these ways IT helps us to receive from each one according to his ability and to give back to each one according to his need. This article was written by Vladimir Soloviev, CIO of Financial University, and Boris Slavin, Academic Supervisor at the Faculty of Applied Mathematics and Computer Science of Financial University.

We also see democratising the means of production as one of the most important results of the IT revolution. For example, we have 2,000 different courses in our university. If we should use a video production studio to produce video lectures, we would never have them up to date because it would take not less then 10 years to make video lectures for all the courses. But now, professors could easily produce professional video lectures on their own computers and we could have all the courses always up to date. Moving to self-service is very imminent. One of the important challenges is using computer labs when all the students and professors have their

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Around 30% of large Russian enterprises consider their sales and marketing activities as the main area of IT-enabled transformation.

CIONET International THE NEXT CIO

The Chief Digital Officer catches trends and identifies new needs of the external clients.

The CDO, the next CIO The modern CIO understands and even feels the business needs of the organisation for which he is responsible. It is not anymore a matter of providing only infrastructure and technology. The IT and Digital services should also address the question: what are the needs of external clients? Of course the internal clients should not be forgotten, but the borderline between these two groups of clients is becoming increasingly blurred. The CIO responds to new needs and catches trends, because the end client is the best source of knowledge. The very fact that external clients are asked for their opinions through social media - for example, what they would like us to do for them or which of our proposals suit them best - is a huge step forward in this transformation. The modern CIO is interested in consumer behaviour and easily identifies segments of end clients. The key challenge is to collect and process data wisely to create behavioural profiles in order to help our business partners carry out effective online activity. It is a huge challenge for social CRM and social BI. At Avon, the direct sales business, we do not intend to collect the knowledge about

THE NEXT CIO CIONET Poland

customers and keep it away from our representatives.

The first consumer It is the CIO who initiates such changes. He sometimes follows the work of representatives during field visits, participates actively in the management board meetings, goes beyond the IT structures, meets with clients, spends time in the contact centre, observes social media and is the first user of the solutions proposed by his organisation. In fact, the next CIO is the first consumer of what he delivers himself.

â&#x20AC;&#x2DC;The modern CIO is interested in consumer behaviour.â&#x20AC;&#x2122; At Avon, we are interested in an omnichannel approach. That is not typical for companies in our direct-selling business sector. But we want to deliver

full omnichannel experience and we are testing and trying new solutions. In direct-selling companies, the digital transformation is progressing in two areas. One consists of integrating the e-commerce system and the direct sales model. The other one concerns the youngest generation of representatives (so-called Millennials). It is absolutely natural for them to carry out promotional activities, sales and recruitment mainly on the Internet and social media. The CDO, the next CIO, must be aware of needs which come along with this transformation and must propose and implement the best solutions having in view potential benefits for the whole business model. This article was written by Dawid PawĹ&#x201A;owski, Senior IT Business Partner, EMEA Marketing Systems, Poland & Nordics, at Avon Cosmetics Polska.

From system administrator to leader of business model transformation.

The difference between a CIO and a CDO Technology helps us automate processes to make our firms more efficient. However, the ability to identify revolutionary technologies with the potential to transform the business model, is what marks the difference between a CIO and a CDO. The real challenge for a CIO lies in becoming a leader in the digital transformation of a firm and withdrawing sufficiently from technical aspects, in order to lead a technological innovation, creating other leaders who can identify changes and opportunities at all levels. The difference between growing or simply surviving change lies in whether or not a firm has a good leader. Thus it is crucial to always be observant and to awaken the desire for observation in all the team. This is what we continually aim for at UCAM, and we are achieving it with satisfactory results across the whole organisation. We continually look for ways of improving services through the use of technology, resulting in increased work satisfaction for employees and students, as well as greater economic efficiency. Our most significant projects include: Optimisation systems for classrooms, ThinClient, Google Apps, electronic

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signatures, automation and digitalisation of bureaucratic processes, multifunctional and shared printers, and Smart Campus. These help us to optimise processes and achieve better productivity in teams and greater efficiency within the institution as a whole. Although these projects have resulted in economic improvements and progress in terms of services, they have not caused a transformation in our business model.

themselves deployed a platform of online teaching, which resulted in a threefold increase in the number of students within a year. We extrapolated this model to other degrees, which resulted in a notable increase in students across the whole university. Today, one third of our 15,000 students are taking virtual or semi-virtual degrees. If the CIO is not capable of becoming a leader, the CEO will end up having to look for a substitute. According to John Maxwell, an influential author on leadership, the law of ’magnetism‘ is paramount in leadership, as one leader feels attracted by another. This article was written by Samuel Mendoza García, CIO at UCAM, the Catholic University San Antonio of Murcia.

Changed business model On the other hand, the Virtual Learning Environment was a project which signified a huge change in our business model, although this was not evident at the time. It adapted the teaching system to a 100% online model, allowing for fully virtual as well as semi-virtual learning, which now generates almost a third of our University’s income. This stemmed from the steep drop in demand for our Degree in Information Technology. The professors

CIONET Spain THE NEXT CIO

New business opportunities for Luxembourgâ&#x20AC;&#x2122;s financial sector

The FinTech disruption With the FinTech concept now firmly established in Luxembourg, there is some speculation about who might get the biggest slice of the cake: new disruptive businesses or existing financial institutions. The answer may be both if the two parties are able to collaborate to get the best from both worlds. The new disruptive businesses emerging from London and Silicon Valley provide an outstanding digital experience to their customers. Payment services, virtual currencies, investment and market intelligence services as well as crowd funding and peer-to-peer lending: the new FinTech market is growing fast and is triggered by behavioural change, whereby customers crave a more personalised, mobile and cheaper service. This pulls clients away from traditional banking providers and towards new disruptive alternatives. Nonetheless, FinTech is opening doors for existing financial institutions. It allows for greater efficiency, customer insights, personalised services and higher quality advice. FinTech disrupters may create additional cost pressure, but at the same time they open up business opportunities that Luxembourg financial companies are currently seeking.

A perfect example is private banking, where FinTech could strengthen communication between financial advisors and customers. A secure digital chat facility, for example, could be particularly interesting for highly mobile, global HNWIs (high-net-worth individuals) who wish to contact their banker any place and any time. Beyond communication, FinTech can also help with customer relationship management and reduce costs by consolidating back-office operations in powerful digitised shared service centres.

Funds industry In the funds industry, FinTech has huge potential for digital fund distribution. This will mainly benefit retail investors, who expect a high-value digital experience with product recommendations and lower fees. In the future, buying a mutual fund should be as easy as buying an e-book on an e-reader. Changes in commissions (ban on inducements), triggered by the MiFID II Directive, will also push fund promoters to go directly to retail

THE NEXT CIO CIONET Luxembourg

investors, bypassing traditional distribution channels. Highly complex regulation and a need to simplify regulatory research, reporting and compliance, open a third opportunity for Luxembourg. FinTech could help make identity management and KYC (Know Your Customer) procedures a market commodity service for all, served by a central hub. A FinTech-enabled KYC hub would benefit banks, insurance companies, investment companies and even players outside the financial sector. This is also valid for outsourced regulatory reporting platforms. KPMG and CIONET are collaborating to help CIOs navigate their way through the many challenges faced today. From autumn 2015 to summer 2016, they will co-host a series of events focusing on Luxembourgspecific trends, including FinTech and KPMG Plage. This article was written by Luc Maquil, Senior Manager - Advisory at KPMG Luxembourg.

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#Feelfree The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate The information contained there herein can is ofbe a general nature and is not intended to address the circumstances anyitparticular individual or it entity. Although we endeavour to in provide accurate and timely information, no guarantee that such information is accurate as of the of date is received or that will continue to be accurate the future. No one should act on and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such such information without appropriate professional advice after a thorough examination of the particular situation. information without appropriate professional advice after a thorough examination of the particular situation. © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG © 2015 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated International”), a Swiss entity. All rights reserved. Printed in the United Kingdom. with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. The name KPMG, logo and ‘cutting through complexity’ are registered trademarks of KPMG The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International. CIONET Poland EVENTS 35 International. Read more on iPad in the CIONET+ app. OLIVER for KPMG | OM032409A | March 2015

IT creates value by increasing productivity and delivering a better customer experience.

Embracing the new era of digital Club Med‘s Group CIO Stéphane Kersulec and his team have rebuilt the company’s core application, its Central Reservation System. The new application is more open, more flexible and perfectly adapted to Club Med’s business needs. As it is customer-oriented and also multi-channel and multi-devices ready, it embraces the new era of digital. Stéphane Kersulec, Group Chief Information Officer of Club Méditerranée: “The ongoing projects are assessed together with the business units every three months. Thanks to this, the business people are completely integrated in the IT decision process.”

Club Méditerranée, commonly known as Club Med, today operates a total of 71 Resorts worldwide. With a turnover of 1.38 billion euros, it employs 20,000 people. The IT division of Club Med employs 72 full-time equivalents worldwide and almost 40% of its budget is spent on new application developments. Stéphane Kersulec, Group Chief Information Officer of Club Méditerranée, is an engineer, a graduate of the Ecole Supérieure d’Electricité (Supélec) and of the Ecole Nationale Supérieure de l’Electronique et de ses Applications (ENSEA) in France. He is passionate about potential uses of new technologies for creating value for a company. Stéphane is results-oriented and interested in business strategies and team management. Besides ensuring that the IT infrastructure and applications remain state of the art, it is also

THE NEXT CIO CIONET France

his mission to innovate, contributing to the transformation of Club Med. Could you explain your key missions at Club Med? Stéphane Kersulec: “I joined Club Méditerranée in 1998 to contribute to building an IT organisation, to designing the infrastructures and to defining technologies required by the business for the transformation plan of the company. The IT department and the business teams have implemented and deployed worldwide, in more than 30 countries, ERP systems for Finance and Human Resources, Business Intelligence and Yield Management tools, call centers and the first B2C websites. We also rebuilt the Property Management System software in the hotels and designed an internal RFID means of payment. Moreover, we outsourced the network and the telecoms and consolidated the data centres. I was appointed CTO of Club Med in

2003 and CIO in 2009. As a CIO, I have several missions among which are of course delivering and maintaining state of the art the high quality business applications. But it is also my mission to innovate, contributing to the transformation of our company, internally to improve our productivity through implementing new digital tools and, externally for our customers, to deliver a better customer experience and also to create more value.”

IT transformation Could you give more details regarding the IT transformation that you have led at Club Med ? Kersulec: “I have built an IT organisation to better respond to the business needs and to embrace the new era of digital, which requires agility, flexibility, time to market, customer orientation, etc. We have launched the redesign and the rebuild of the Club Méditerranée core application, its Central Reservation System. This was developed 25 years ago on a legacy system. The new one is more open, more flexible, multi-channel and multi-devices ready, and interconnected with external partners providing services such as a Global Distribution System for transportation, E-payment, Metasearch, etc. This new application has been built using the same algorithms which are perfectly adapted to Club Méditerranée business and is based on technologies that are frequently used in web applications (Open-source software, Web services, Enterprise service bus, API). We have also developed a proprietary call centre application with a customised vendor interface and pop-up screens with data on the customer. This resulted in a substantial increase in the quality of customer relationships with, among other key performances, 100% of the calls globally being answered within 15 seconds. On top of all this, my team has contributed to a project to digitise the

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new Club Med resort in Val Thorens. To avoid queues at the reception customers can - via mobile - check in and have access to an online ski and boots reservation system. We have also provided for enriched entertainment, including, for instance, Spotify capabilities.”

‘One of the CIO’s missions is to innovate, contributing to the transformation of the company.’

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Almost 40% of the budget of Club Med’s IT division is spent on new application developments.

What are your criteria to define new projects? Kersulec: ’We use three criteria for the annual assessment of the division’s new project portfolio: people available; benefits (return on investment, customer satisfaction, productivity, etc.); and the degree of complexity and maturity (quick wins versus complex or structural projects). The quick wins are dealt with immediately, while the more complex projects are submitted to the board for a decision. The ongoing projects are assessed together with the business units every three months and eventually they get reprioritised or abandoned. Thanks to this, the business people are completely integrated in the IT decision process.”

The quick wins are dealt with immediately, while the more complex projects are submitted to the board.

CIONET France THE NEXT CIO

Becoming digital requires profound internal transformations.

Digital transformation The CIO must facilitate the evolution or revolution of the business to become digital. What are the different dimensions of this profound transformation journey? Becoming digital is much more that having a website, an online channel and an Intranet. The transformation has to go beyond to address the expectations of the digital native employees. And therefore, the first transformation condition is to have enough young employees with digital DNA that can rate our company as an ‘I like it’ place to work. Three key attributes of the digital society that have an importance in the company’s transformation are real time, mobility and ubiquity. The younger generations expect everything to happen immediately, in a seamless manner with all the devices and everywhere. Take this into account when designing the transformation programs and the technology behind them. Nobody will question the need to invest in web technologies to sell and manage our products or services. Still be prepared for debates with the ‘old sales guys’ on how the online channel competes with the traditional ones. And still there are websites where the customer is prompted to fill in a

CIO VISION CIONET Spain

‘last century’ template in order to get something. Social networks are progressively being introduced for customer relationships. But typically, this is difficult to position within the traditional business culture. Here, to have young employees knowing how to integrate them with the legacy systems and operating and managing them will be extremely useful, because digital is in their DNA and social networks are in the DNA of digital.

The internal journey Most traditional companies have managed to build a web channel for their customers. However, most have not made enough investments to transform their processes and their workplace to become digital. The processes to run our company require a deep redesign. As CIO, challenge the long and sequential approval flows. Put ‘real time/immediately’ and ‘mobility’ at the top of your mind to create the vision of how the digital company would operate

and ask your young employees about it. Social network principles and a variety of devices can sustain a new way of implementing your processes, making the company more transparent and agile. Finally, workplace is an enabler. There are big companies spread out in different locations where it’s not possible for employees to connect in a seamless way. Goodbye to the traditional office space where proximity is the only way of sharing. If a traditional business wants to embrace the digital world, the CIO plays a key role in helping to create the vision and making the transformation real in all the different aspects of it, not only in the most evident customer facing areas but also inside the company. It’s the only possible journey, not only to generate more revenue but also to not disappear in the near future when the digital natives become a major part of the market and work force. This article was written by Araceli García Cuartango, CIO at Telefónica Global Technology.

DIGITAL BUSINESS LEADERS FORUM 2015 November 19-20, 2015, Sound Garden Hotel, Warsaw IT and Business Relations A meeting of representatives of the business and technology worlds as an opportunity to reflect upon methods of co-operation and goal achievement thanks to digitization.

Practice We focus on presenting solutions, examples and methods of operations in the era of digital transformations based on everyday practice and experience.

Workshops Eight unique workshops during which the participants will learn about the practical solutions used in Polish organizations.

Debates Decision-makers and experts who create concepts of digital transformations in Polish enterprises will take part in the debates.

Inspiration An opportunity to compare oneâ&#x20AC;&#x2122;s own strategies of the use of technology with solutions already implemented by other enterprises.

The Leader of the Digital Business In the evening, we will announce the nominees of the nation-wide contest, the Leader of the Digital Business.

Special price for the readers of the CIONET Magazine code: FLCB_by_CIONET (select a promotion code)

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CIONET Poland EVENTS

Should the best people spend a lot of time on hiring new staff?

Growing by hiring the right people Working in autonomous, multidisciplinary teams, holding few meetings, a minimal hierarchy within the organisation, and a CIO who supervises the recruitment process… Booking.com does not always opt for the traditional way of working. To many CIOs, this is a different world or perhaps a futuristic idea, but to Brendan Bank, CIO at the successful e-commerce company, it is the most natural thing in the world. Bank has been nominated for the title of European CIO of the Year. CIONET Netherlands welcomes Brendan Bank, CIO of Booking.com and Dutch nominee for the 2015 European CIO of the Year award, as a new CIONET Advisory Board member. (© Executive-People)

Booking.com was founded in 1996 and has since developed into a market leader. The company has offices in more than 60 countries and about 850,000 hotel stays are booked by customers of the company on a daily basis. And the business is still growing. According to Bank, various features make Booking.com such a strong company. “It starts with a good supply for our customers. In order to enable this, we have to ensure there is a good relationship with the suppliers. These are the hotel owners, apartment owners and owners of bed & breakfasts. You also need to constantly monitor what the customer wants. The wishes of the customers keep changing. Take, for example,

CIO VISION CIONET Netherlands

the changes in the area of ‘mobile’. When we noticed that there was a need for a mobile app, we launched one within six weeks. Now it is one of the most successful travel apps of the moment.”

‘We do not economise on call centres and we are not going to outsource this important service.’ The third reason Bank identifies for the success of Booking.com is the high service level. “The service has

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111100010101010001001111001010101010101111011110000101000100011100011100110100001000110001110011100010000111000100 0001000110010001100110011001000100111101110001001000100010101000111100010101010001001111001010101010101111011110 0100100010001100100011001100110010001001111011100010010001001 0101010001111000101010100010011110010101010101011110 0010001110001110011010000100011000111001110001000011100010010101010010001000110010001100110011001000100111101110 000101000100011100011100110100001000110001110011100010000111000100101010100100010001100100011001100110010001001111 0010001010100011110001010101000100111100101010101010111101111000010100010001110001110011010000100011000111001110 001001000100101010100011110001010101000100111100101010101010111101111000010100010001110001110011010000100011000111 1110001001010101001000100011001000110011001100100010011110111000100100010010101010001111000101010100010011110010 Todayâ&#x20AC;&#x2122;s world is changing faster than ever before. Companies need to respond to their changing customer and competitor landscape through digital 000100001110001001010101001000100011001000110100010011110111000100100010001010100011110001010101000100111100101010 0101111011110000101000100011100011100110100001000110001110011100010000111000100101010100100010001100100011001100 transformation. Learning how to use data to predict what their customers want tomorrow, and how to protect themselves against the cyber threats of 011110111100001010001000111000111001101000010001100011100111000100001110000100010011110111000100100010010101010001 0100111101110001001000100101010100011110001010101000100111100101010101010111101111000010100010001110001110011010 today. Businesses need to be agile. Embrace intuition and drive continuous innovation. The future belongs to those who are preparing for tomorrow, today. 010101010001001111001010101010101111011110000101000100011100011100110100001000110001110011100010000111000100101010 1100011100111000100001110001001010101001000100011001000011001000100111101110001001000100101010100011110001010101 001000110010001100110011001000100111101110001001000100010101000111100010101010001001111001010101010101111011110000 1110010101010101011110111100001010001000111000111001101000010001100011100111000100001110001001010101001000100 Discover inspiring stories on our website. 010001110001110011010000100011000111001110001000011100010010101010010001000110010001100110011001000100111101110001 0001100110011001000100111101110001001000100010101000111100010101010001001111001010101010101111011110000101000 010001010100011110001010101000100111100101010101010111101111000010100010001110001110011010000100011000111001110001 1000111001101000010001100011100111000100001110001001010101001000100011001000110011001100100010011110111000100 110001001010101001000100011001000110011001100100010011110111000100100010010101010001111000101010100010011110010101 0010101000111100010101010001001111001010101010101111011110000101000100011100011100110100001000110001110011100 101111011110000101000100011100011100110100001000110001110011100010000111000100101010100100010001100100011001100110 11100010010101010010001000110010001100110011001000100111101110001001000100101010100011110001010101000100 00010 TomorrowIsToday.be 100111101110001001000100101010100011110001010101000100111100101010101010111101111000010100010001110001110011010000 0111001101000010001100011100111000100001110001001010101001000100011001000110011001100100010011110111000100100010 100011100111000100001110001001010101001000100011001000011001000100111101110001001000100101010100011110001010101000 0001111000101010100010011110010101010101011110111100001010001000111000111001101000010001100011100111000100001110 111001010101010101111011110000101000100011100011100110100001000110001110011100010000111000100101010100100010001 1010100100010001100100011001100110010001001111011100010010001001010101000111100010101010001001111001010101010101 000110011001100100010011110111000100100010001010100011110001010101000100111100101010101010111101111000010100010 1100011100111000100001110001001010101001000100011001000011001000100111101110001001000100101010100011110001010101 100011100110100001000110001110011100010000111000100101010100100010001100100011001100110010001001111011100010010 1110010101010101011110111100001010001000111000111001101000010001100011100111000100001110001001010101001000100 001010100011110001010101000100111100101010101010111101111000010100010001110001110011010000100011000111001110001 0001100110011001000100111101110001001000100010101000111100010101010001001111001010101010101111011110000101000 11100010010101010010001000110010001100110011001000100111101110001001000100101010100011110001010101000100 0001000 1000111001101000010001100011100111000100001110001001010101001000100011001000110011001100100010011110111000100 111001101000010001100011100111000100001110001001010101001000100011001000110011001100100010011110111000100100010001 0010101000111100010101010001001111001010101010101111011110000101000100011100011100110100001000110001110011100 001111000101010100010011110010101010101011110111100001010001000111000111001101000010001100011100111000100001110001 11100010010101010010001000110010001100110011001000100111101110001001000100101010100011110001010101000100 00010 010100100010001100100011001100110010001001111011100010010001001010101000111100010101010001001111001010101010101111 0111001101000010001100011100111000100001110001001010101001000100011001000110011001100100010011110111000100100010

to be excellent at all times. This way, customers will keep booking with you. We have fourteen call centres across the world. We do not economise on this and we are not going to outsource it. The service is much too important for that.” Bank regards the demand channels as the fourth success factor. “We try to offer the best possible service to the people who end up on our website, by making it as easy as possible to book a hotel. It is my dream that we will be able to offer an app in the future which automatically books the hotel for you, because it knows where you want to go and which hotel is best for you. The only thing you will need to do is cancel it if you don’t want it. We will then have assisted the client in the best possible way, and this is crucial.”

Staff members as entrepreneurs In order to ensure that Booking.com remains this strong and becomes even stronger, the company has opted for a modus operandi that differs from the standard within most companies. “At Booking.com the pyramid is reversed”, Bank says. “Our teams work as autonomously as possible with as few external dependencies as possible. The data we obtain from customers is immediately sent to the teams, so that they can respond to this and optimise the situation in accordance with the wishes of the customer. The teams are organised on the basis of business targets. An example of such a target is that we want to become the best online travel agent in the field of mobile. Then we ask the teams: ‘If we want to grow in terms of mobile, how are we going to achieve this?’ They subsequently investigate, develop and implement this themselves. This way, you get a great deal of entrepreneurship in the

teams. Moreover, there is an ongoing process of optimisation: every change produces a result, and with this result you can make further adjustments. This is how we continually innovate our business model.”

‘Our IT department in the Netherlands employs about 70 nationalities.’ Bank’s involvement in technology management is as minimal as possible. “Of course, sometimes I will indicate I want to head in a certain direction, but I leave the details and cooperative set-up to the teams themselves. In my view, you shouldn’t tell people who have studied for years and have been interested in programming or design all their lives how to do their job. You should take people like that seriously and offer them a broad palette with which they can work.” Within the teams, everyone has their own discipline and there is no hierarchy. “The idea behind this is that you build a company together and everyone participates in the building process.”

Role as CIO Needless to say, Bank is business owner of the technical infrastructure in the organisation, but this is not the only role he envisages for himself. He wants to inspire people to progress to a higher level, both personally and professionally. Working in multidisciplinary teams is a good example of this. Bank is also involved in hiring people. “There is a huge stream of interviews and CVs every month, so this is a substantial process that needs to run in the best possible way. I take this very seriously, because you can only

CIO VISION CIONET Netherlands

grow if you have the right people. And we have grown enormously over the past years. When I joined in 2008, we had 40 staff in IT, and there are now 800. We will continue to grow in the coming years, so we will keep looking for the best people.” In its search for the very best employees, Booking.com also recruits many staff members from abroad. “Twelve per cent of staff are Dutch, the rest we source from abroad. Our IT department in the Netherlands employs about 70 nationalities. We bring in these people because we believe that you cooperate even better at a desk than virtually. A team is able to work at a much higher speed and with more business impact when you put the team members together at the table.” Not everyone with the right qualifications can work at Booking.com. “We assess our people from the first interview all the way through to appraisals for the competences: communication, craftsmanship and commercial behaviour. So it is not just about someone being a good technician or very smart; that person also has to fit into the culture and have an entrepreneurial spirit. This is almost equally important. So, not everyone who has the right education suits our company; we seek people who match with us in a cultural sense.” In the interview process, the best engineers select new engineers themselves. “We believe that ‘A’ performers hire ‘A+’ performers, while ‘B’ performers hire ‘C’ performers. This is why our best people spend a substantial percentage of their time on interviewing. In fact, you can only grow with the best people.” This article was written by Maaike Verschuren, Executive-People.

‘Digital transformation is not about technology – it’s about people transforming businesses, using digital technology’ Joris Geertman, Innovation Director at KPN Consulting

The digital transformation is drastically changing organisations. Working methods alter and people are increasingly part of multiple collaborative arrangements. The world is evolving faster than policy can adapt, constant change has become the new norm. Innovation is the key – not simply innovation of what was already there, but disruptive innovation, fundamentally improving or accelerating existing business models. Digitisation has simplified our lives in many ways. It has led to more efficient organisations and brought people closer together. Now it’s time for the next step. Traditional earning and organisational models disappear and are making way for new ones. Every sector, every process and every action is either further digitised or fully digitised. Can your organisation adapt? Contrary to popular belief, technology actually plays a relatively modest role – accounting for only 25% – in actual innovation. Social innovation does the rest. Do people want to work with the new tools? How much change can they handle? An organisation’s absorptive capacity determines whether innovation will succeed. The greater this capacity, the better organisations will be able to keep up with the digital transformation. We believe that strengthening absorptive capacity is the key to the CIO’s success.

Digital transformation checklist What is your organisation’s absorptive capacity? If you can answer ‘yes’ to the following five questions without any reservation, your organisation is ready for the digital transformation. Do you know what social changes are required within your organisation to be able to capitalise on the new technological possibilities? Are both employees and management willing to change? Have you developed a long-term plan with consistent emphasis on the adoption of new functionalities? Do you have a clear understanding of your organisation’s skills gap? Do you have a plan for obtaining the required expertise?

Interested in discussing this further? Are you interested in discussing these issues with me in further detail? You can find my complete blog on this subject on kpninspire.com (sorry, in Dutch only). You are also more than welcome to email me at joris.geertman@kpn.com.

There is a clear urgency to reinvent government with a focus on the future.

Strategy for an intelligent state In the new global economy and the innovation society, the state has a central role to play. It must confirm itself as an ’enabling player’, introducing into society and the economy a capital of trust and innovation. When David Osborne speaks about the increasing opportunity and necessity of putting on the agenda the reinvention of government, he is giving evidence to one of the central elements of the ‘competitive modernity’ of Europe. We need more than ever to focus on a state of the future as the ESPAP already does in Portugal. ESPAP is the Portuguese Government Agency for Shared Services focused on developing a strategy for an ‘intelligent state’. The strategic reinvention of the state, as a ’platform of centrality‘ where the dynamics of the different social players converge, demands a new order that cannot be created only by single operative specifications associated with the so-called e-government or organisational adjustments to specific arrangements in the different public departments. As Samuel Huntington elucidates in his theory ‘The Clash of Civilizations’, the important aspect to stress is the endogenous capacity of a state to assume itself as being the first before everything and the last after

CIO VISION CIONET Portugal

everything in terms of the rationality of processes within the evolution of civil society. In the new global economy and the innovation society, the state has a central role to play in the creation of value with a focus on creativity.

‘We need more than ever to focus on a state of the future.’ Enabling player The state in Europe must confirm itself as an ’enabling player’ in a traditional system, introducing into society and the economy a capital of trust and innovation. The state in Europe should be a global player, capable of driving the European social matrix to building a unique knowledge dynamic and selling it as a mobile asset on the global market. To ensure this objective, the state must optimise synergies from the so-called three Ts Technology, Talents and Tolerance - in

an innovative way. These are in fact the drivers of change for the state in Europe and the civil society must be able to understand this new challenge and provide effective answers for the different stakeholders of the system. Government is today an attitude of promoting and enabling active citizenship. It matters to the state to be excellent. It matters to the state to be an operator of modernity. That is why the reinvention of the state is a challenge. This reinvention is, in a wider sense, the reinvention of Europe. This article was written by Francisco Jaime Quesado, General Manager of the Innovation and Knowledge Society in Portugal, a public agency with the mission of coordinating the policies for the Information Society. It operates within the Ministry of Science, Technology and Higher Education.

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New opportunities for the energy sector and its CIOs

Creating new business models Many energy companies are deploying new technologies. The resulting demand for analytics represents an opportunity for the industry’s CIOs. The traditional business model of public utility companies is being challenged by the growth of decentralised renewable energy generation and micro production resources. Tiago Azevedo, Group IT Director at REN: “While orchestrating larger numbers of energy generation sources, public utilities must continue to maintain reliability and service levels. Moreover, to reduce operating costs and improve workforce productivity, utilities are deploying several technologies such as transmission and distribution asset sensors (IoT) and mobile solutions. The use of mobile technologies improves communication and the ability for asset condition capture during inspections. With spatial information directly integrated and embedded into the applications, even the situational awareness can be improved. Mobile technologies also optimise workforce field management - the distribution of work orders down to the field technicians. The challenge is to integrate more information and technologies, while maintaining system stability and reliability. The increasing amount of generated data and the resulting demand for analytics represent opportunities for the industry and its CIOs.” Tiago Azevedo, REN (l.) and Gonçalo Oliveira, Galp Energia (r.)

CIO VISION CIONET Portugal

Innovation trends Operating in mature markets with low margins creates pressure on many businesses. Gonçalo Oliveira, CIO at Galp Energia: ”Meanwhile, consumers increasingly expect to engage with suppliers and retailers through multiple mobile channels. So, a successful IT strategy, using systems to increase customer loyalty, to streamline operations and to reduce costs, can play a fundamental role in this environment. To accomplish this, the CIO has to take these key fast innovation trends into account: -- Focus on increasing customer insight and providing a personalised experience. IT innovation will be essential to deliver new ways to better collect and analyse big data and to ensure the supply of these new experiences in an integrated manner through multiple systems used by the customer; -- Focus on mobility. Mobile apps open up the opportunity to simplify and improve customer experience, achieved through deep integration between mobile apps (which could also offer the opportunity for decreasing payment fees), POS systems, fuel pumps, etc.; -- The changes the IoT will bring to retail store operations. New sensors located in the stores will allow a better understanding of consumer behaviour, improve inventory management, and reduce checkout times and costs. Stores may even communicate with customers through beacons, proposing special offers and product information when the customer is in the store. These three innovation trends will bring IT to the front of the customer experience when visiting a store or a service station and to the centre of a marketing department’s daily activities.”

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