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The connected CIO CIONET Magazine, October 2017


Realise your ambition Contents CIOCITY 4 Leadership in the digital economy In the digital age, CIOs have to take the lead in innovation and transformation.

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2017 European CIO of the Year award winners CIONET granted its annual awards to four top European digital leaders.

11 It’s all about data CIONET International elected the European Research Paper of the Year 2017.

12 Leading the digital innovation CIONET celebrates the most accomplished digital leader and digital innovator.

EVENTS 14 Global Digital Leaders Alliance update Sharing knowledge with CIO communities across the globe.

16 Meet the 2017 Spanish Digital Leaders Iberdrola, Campofrío and Correos were awarded for meeting the challenges of digitisation.

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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 global community of IT leaders. It is our mission to provide CIONET members and partners with the best

18 The challenge of turning costs into results Show that technology is not a cost center but can be a great lever for businesses.

20 Adapting to digital business models Which competencies and organisation structure are required in the digital age?

THE NEXT CIO 24 AIB and the IT-CMF IT-CMF allows organisations to understand where they need to focus to achieve their ambition.

26 IT - step up or step out The CIO should take advantage of the opportunities of adopting a digital strategy.

30 CIONET Peer Mentoring Program CIO coaching program enhances personal and professional growth.

CIO VISION 32 Transforming the employee experience Business departments should also be involved in IT transformation.

33 Change your culture Digital transformation has to be done in close contact with the customer.

possible platform to help them to succeed in realising their ambitions. 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.

34 Digital transformation in banking Banks are making use of new digital opportunities to grow the economy.

35 Tackling the cybersecurity risks Digital transformation requires an increasingly proactive security approach.

40 Being an entrepreneurial CIO To generate value, everything the CIO does must be relevant for the business.

42 Building cooperation with business The IT and the business have to develop better understanding and communication.

43 The CIO in fear Many CIOs lack the skills to drive the digital transformation. How to overcome it?

44 Improving IT performance The CIO should lead the digital transformation by optimising the IT performance.

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


The connected CIO

At CIOCITY 17 in Amsterdam, our seventh CIONET International annual conference, digital leaders and IT professionals from all over the globe gathered around the central theme ‘Leadership in the digital economy’. At this top event over 250 people participated in the mind-opening talks and workshops with top thought leaders and the many networking opportunities with their international peers. At the event we paid a tribute to digital leaders who successfully increased their organisation’s competitiveness by creating considerable business value. The winners of the 2017 European CIO of the Year awards are Markus Richter, Sarah Flannigan, Maciej Buba and Ron van Kemenade. Moreover, we awarded Indrajit Banerjee of UNESCO as the European Digital Leader of the Year and Herman De Prins from UCB as the European Digital Innovator of the Year. In addition, we celebrated the winners of the European Research Paper of the Year award. Congratulations to all the winners! In 2018, CIOCITY will be succeeded by CIONEXT. This international event for digital leaders will mainly focus on the participants’ individual professional leadership growth. They can put together an individual program of interactive workshops and break-out sessions, enabling them to grow in areas where they need more skills and empowering them to better tackle the many new challenges of the digital world. Where CIOCITY was a true source of inspiration, CIONEXT will focus on the transformation required to become the digital leader of the future.

Luc Hendrikx, CEO of CIONET International

CIONET continues to expand its global presence. Last year, the Global Digital Leaders Alliance (GDLA) was launched, linking CIO communities from the USA, China, India, Russia and CIONET - representing Europe and Latin America. Last September the International Academy of CIOs (IAC) signed a MoU to join the alliance. We also keep expanding in Europe and warmly welcome Roger Camrass and Sean Foley who will relaunch CIONET UK. As CIONET we are strongly committed to keep focusing on the power of our community. The CIO community is being confronted with many challenges and every organisation deals with them in its own way. By exchanging our experiences, together we are strong. The connected CIO can achieve incredible things. Realise your ambition!

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In the digital age, CIOs have to take the lead in innovation and transformation.

Leadership in the digital economy

CIOCITY 17, the seventh CIONET International annual conference, was attended by digital leaders, IT professionals and thought leaders from across the globe. At this top event they gathered around the central conference theme ‘Leadership in the digital economy’, participating in inspiring talks and workshops and to the many networking opportunities.

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The event was led by conference chairman Terence Barry, founder of BRAND-and-STORY. Daniel Lebeau, Group CIO and Senior Vice-President Business Services at GSK, explained how IT transformation at GSK was implemented by focusing on agility and user-centricity. This approach has redirected the attention from costs and projects to speed and products. The next speaker was Marco Witteveen, COO, Member of the Managing Board at GarantiBank International. He talked about digital transformation, governance and compliance. He also explained the bank’s approach to building its digital operating model, which is based on four interconnected pillars: continuous improvements, continuous change, DevOps and enterprise architecture. Gertrud Ingestad, Director-General of the European Commission’s ITDepartment, DIGIT, gave some insights into how to drive digitisation in public administrations, taking into account issues such as trust, speed and budgets. She also suggested seven steps to address these challenges. Another testimonial from the financial services sector came from Saul Van Beurden, Managing Director, Global Technology at JPMorgan Chase & Co. He shared his experience of leading his organisation through the digital economy and shed light on how they have become an embedded bank making banking easier, but still being


Conference chairman Terence Barry, BRAND-and-STORY Saul Van Beurden, JPMorgan Chase & Co

Daniel Lebeau, GSK Davy Kestens, Sparkcentral

physically around when needed. More inspiring ideas were revealed by Davy Kestens, Founder & CEO of Sparkcentral. He drew the attention to the massive gap that exists between the way businesses communicate with customers and the way customers expect businesses to communicate with them. To solve this he showed the way towards an effortless service for businesses while delivering an excellent customer experience. Jonathan MacDonald, Professional Speaker and Founder of the Thought Expansion Network, delivered an inspiring presentation which gave the delegates energy and clarity on how to manage and be fuelled by the perpetual change of our modern-day landscape. Some of the points which resonated strongly were the ideas of

Marco Wiiteveen, GarantiBank International Jonathan MacDonald, the Thought Expansion Network

the necessity to balance the ‘paradox of exploitation versus exploration’, that our business survival will only be ensured by looking outside of skill-sets and focusing on our willingness to succeed, and that evaluating the Risk of Inaction (as well as traditional ROI) is an essential part of building into the future. On day two, Frank Kennedy, CEO of IVI Services explained how organisations can manage IT capability to create business value and innovation making use of the IT-CMF methodology. IT-CMF is a strategic approach that facilitates continuous performance improvement across the entire IT organisation. It provides a systematic approach to the assessment of IT organisational performance, together with management best practices for

Gertrud Ingestad, DIGIT Frank Kennedy, IVI Services

organisational improvement. Tim Hynes, CIO at AIB retail and commercial bank (Ireland), shared his experience with the implementation of IT-CMF. It was AIB’s ambition to have the best technology function of any bank in Europe. To achieve this, AIB opted for the IT-CMF. Now AIB is continuously improving its IT capabilities to create business value and systematically measuring that evolution against previous IT-CMF assessments. But Tim stressed the importance of a full commitment of both the CIO and the senior management. In addition, good communication is key. Read more on page 24 of this magazine.

Superheroes How will innovators save our cities? The answer was given by Jonathan

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Reichental, CIO and CTO at the City of Palo Alto. He explained how bringing technology into the cities will increase the cities’ livability, workability and sustainability. This will contribute to decreasing traffic jams, avoiding queues at public counters, optimising waste management, improving water and energy management, increasing public safety, making public services more efficient, etc. All these issues require superheroes - innovators that help transforming cities into a smart cities. To enable their initiatives, the City of Palo Alto made a lot of its data available for developers. As a result, the City already implemented many solutions. SVP and Global Head of Digital Marketing & Media at Philips, Blake Cahill, explained the enablement of digital in his organisation. In today’s digital society we have to focus on the customer experience. To do this we have to make use of big data. As data is the new currency, we have to monetise it. To transform a company and achieve digital leadership, it takes a strong and continuous investment in digital products, solutions, marketing and operations. We need to evolve from analog products to connected propositions, from there to new business models and from new business models to new forms of digital marketing. Marion Debruyne, Dean of Vlerick Business School and Professor in Marketing Strategy & Innovation, warned for the myths of disruption which could lead to inadequate reactions that could compromise an organisation’s future. She stated that disruption is not something typical for the digital age but has been around for ages. Secondly, it doesn’t from top to bottom: come like a tsunami that you recogTim Hynes, AIB nise immediately. Thirdly, customers Blake Cahill, Philips Marion Debruyne, Vlerick Business School don’t care about disruption. They just expect companies to adapt to Michel Hofman, Amsterdam Trade Bank their evolving needs. Moreover, it is Jonathan Reichental, City of Palo Alto

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dangerous to think that the next big disruption is easy to spot. The best way to predict the future is to be an active part of it.

The need for speed Michel Hofman, CIO and Head of Business Technology & Change of Amsterdam Trade Bank explained how, after the past global financial crisis, ATB was forced to transform itself from a corporate lender to a commodity and asset backed finance institution. But once this transformation was achieved, the financial services sector had also transformed into a complex web of players with many new challenges. ATB embraced these challenges as an opportunity for further transformation. However, digital transformation is a long-term process and there was a need for speed. Therefore - instead of addressing all potential transformation areas at once, ATB started the transformation with a clear strategy, designed an appropriate governance framework, focused on the transformation initiatives that could bring the most value and prepared for further continuous changes. Michel stressed that transformation must always include a cultural change and the full commitment of all stakeholders inside and outside of the company. Herman De Prins, CIO at UCB explained the digital transformation process his global biopharmaceutical had undergone. In 2010, the healthcare sector was budget constrained and technologically mature, while patients were more empowered than ever before. This led to the conclusion that CIOs and companies needed to innovate or risked to become obsolete. A new strategy to save money, modernise IT and innovate in the core business was required. In 2011 the main focus was on investing in people. Five years later, this resulted in an organisation where more than two thirds of the people had over 50% more


than of them half had jobs that didn’t exist before. The digital transformation resulted in 2014 in a reliable and efficient business making use of bimodal IT, DevOps and Agile, and with over 250 projects a year and products that can generate value for multiple uses. During the digital transformation UCB has continuously been creating value for its patients and, therefore, for the business.

Breakout sessions On the first day of CIOCITY 17, one of the breakout sessions was led by Nils Fonstad, Research Scientist at MIT Center for Information Systems Research (MIT CISR). Recent research reveals distinct winning and losing portfolios, depending on the business objective. In this session participants had the opportunity to assess their organisation’s innovation practices and portfolio - i.e., how their firm allocates the total amount spent on innovation across four types of digital innovation

- and compare them with MIT CISR’s results. They learned to identify ways to strengthen the impact of digital innovation on business objectives. Other inspiring breakout sessions were about ‘Key learnings from the latest Blockchain cases’ (led by Cegeka), ‘Using IT-CMF to build digital capabilities’ (KPN Consulting) and a demo of a true native experience, offline and fully integrated with device sensors (Outsystems). On day two, the session ‘How to elevator pitch your IT projects to the CEO’ was led by conference chairman Terence Barry, founder of BRAND-and-STORY. Attendants were also able to participate in a roundtable about constantly changing online threats. This roundtable explored the fast-moving dynamics in security and outlined what we can expect in 2017 and beyond. The session was led by Jay Coley, Senior Director - Security Planning and Strategy at Akamai Technologies.

Finally, there was the lunch discussion ‘Should we switch to a blockchain based consortium cooperation?’, which was led by KPN.

www.ciocity.com

NXTTCH 17 In parallel with CIOCITY, for the second time, the European Digital Innovation Conference NXTTCH 17 was held, connecting the corporate world to all kinds of disruptive technologies. While CIO CITY is an exclusive conference for IT decision makers, NXTTCH is the occasion for their team members to also benefit from new insights and ideas from some of the most inspiring thought leaders and exciting start-ups. www.nxttch.com

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CIONET granted its annual awards to four top European digital leaders.

2017 European CIO of the Year award winners

2017

At CIOCITY17, CIONET International announced the winners of the 2017 European CIO of the Year awards, which recognise digital leaders who have successfully increased their organisation’s competitiveness by creating considerable business value. For the eighth consecutive year CIONET brought together a jury of seasoned experts. Out of a selection of 21 finalists from eight European countries the judges selected the winners in the categories Public Sector, Medium-sized IT organisations and Large IT organisations. Nils Fonstad, Research Scientist at

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MIT CISR: “One of the things that’s striking about all of this year’s finalists is that they’ve helped their companies expand their portfolio of digital innovation. Companies have to compete now by innovating more and innovating more types of digital innovations. These companies - thanks to their finalists - have done so.”


Markus Richter, Head of the Division IT and Infrastructure at BAMF, European CIO of the Year - Public Sector

Sarah Flannigan, CIO of EDF Energy and former CIO of the National Trust, European CIO of the Year - Public Sector, with Herman van Bolhuis, CIONET (r.)

Public Sector

Markus Richter, BAMF

Sarah Flannigan, EDF Energy

The award for the Public Sector category was an ex aequo. Markus Richter, CIO of the Federal Office for Migration and Refugees (Germany); and Sarah Flannigan, former CIO of the National Trust, currently CIO of EDF Energy (United Kingdom).

Dr. Markus Richter is Head of the Division IT and Infrastructure, CIO at BAMF (Federal Office for Migration and Refugees) in Nuremberg, Germany has a graduate degree and did post-graduate legal studies in Münster (Germany), Nairobi (Kenya) and Vancouver (Canada). As a fully qualified lawyer he holds a doctorate degree in legal studies since November 2015.

In November 2016 Sarah Flannigan joined EDF Energy as CIO - leading a digital transformation. Prior to this, for over six years, she was CIO of the National Trust, one of Europe’s largest membership organisations, where she led a major digital customer loyalty and internal efficiency transformation programme. This resulted in delivering significant new revenues and cost savings. It also enabled bestin-class customer engagement.

Dr. Richter commented, referring to Germany’s refugee situation: “Whereas in former times, in Germany we had about 40,000 refugees coming per year, in the last two years there were over 1.1 million of them. That’s why we had to scale the whole IT system but also to create new projects so that all authorities involved in the process can exchange data. And my team was the key enabler in doing this and so we are pretty happy about it.”

“As CIOs we are all responsible for trying to put in place the best possible technology that we can”, Sarah commented. “But if we only focus on the technology, we won’t realise the business outcomes we are looking for. What is really important is to focus on business change and on supporting the organisation through change, embracing new technologies.”

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Maciej Buba, e-commerce IT manager at Amrest, European CIO of the Year - Medium-sized IT organisations

Ron van Kemenade, Group CIO at ING, European CIO of the Year - Large IT organisations

Medium-sized IT organisations Maciej Buba, Amrest

Large IT organisations Ron van Kemenade, ING

In the category Medium-sized IT organisations, the award went to Dr. Maciej Buba, e-commerce IT Manager at Amrest (Poland). For ten years he was involved in projects for sales supporting technology in the retail and HoReCa sectors. Currently he is responsible for the e-commerce landscape, architecture and integration of Amrest’s KFC and Pizza Hut brands.

In the Large organisations category, Ron van Kemenade, Group CIO at ING (The Netherlands) was awarded. He is a technology executive with over 25 years of experience in the financial services industry, as well as telecommunications and internet. Since 2009, after several roles in finance, product management and operations, he has been fully focusing his career on technology.

In his work he focuses on clear identification of business needs, and on selection, implementation and integration of solutions that drive business results. Three years ago, for instance, he and his team started a project of food delivery via online orders. That became like a third leg of growth for their business delivering 20% annual growth.

For Ron, being responsible of the current and the future IT of ING, means meeting today’s requirements of the stakeholders and continuously improving the IT function as it is the core capability for delivering the Think Forward strategy of ING to drive towards a global banking platform. He finds the impact that IT has on the customer experience very motivating.

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Moreover, his leadership style is a combination of strong people focus and content leadership.

http://ecoty.eu


CIONET International elected the European Research Paper of the Year 2017.

It’s all about data The ever increasing importance of using data was illustrated once again at CIOCITY 17 on the occasion of the European Research Paper of the Year 2017 award ceremony. At the international conference for digital leaders CIOCITY 17, the winners of the European Research Paper of the Year award were announced. The aim of this CIONET award is to identify the European research paper that embodies most excellence in both rigour and relevance of research. The award jury distinguishes the best European research paper according - but not limited - to criteria like inspiring new practices and paradigms, provocative thinking, rigidity of research or research method, and practical implications.

From a shortlist of 27 research papers, the jury elected the two finalists for the 2017 edition. Eventually, out of these finalists, the jury decided to grant the award of European Research Paper of the Year 2017 to the paper ‘Mining Massive Fine-Grained Behavior Data to Improve Predictive Analytics’, which was co-authored by David Martens (University of Antwerp), Foster Provost (New York University), Jessica Clark (New York University) and Enric Junqué de Fortuny (Erasmus University Rotterdam).

The award of European Research Paper of the Year 2017 went to the paper ‘Mining Massive Fine-Grained Behavior Data to Improve Predictive Analytics’. One of the co-authors, Enric Junqué de Fortuny (Erasmus University Rotterdam), received the prize at CIOCITY 17 from Prof. Egon Berghout, President Benelux Association for Information Systems.

This paper examines the use of massive, fine-grained data on consumer behaviour - specifically payments to a very large set of particular merchants - to improve predictive models for targeted marketing.

The winning research papers embody most excellence in both rigour and relevance of research. Runners-up The runner-up paper ‘Competitive Benchmarking: An IS Research Approach to Address Wicked Problems with Big Data and Analytics’, was co-authored by Wolfgang Ketter (Erasmus University Rotterdam), Markus Peters (Erasmus University Rotterdam), John Collins (University of Minnesota) and Alok Gupta (University of Minnesota). These authors describe an approach through competitive benchmarking (CB), a novel research method that helps interdisciplinary research communities tackle complex challenges of societal scale by using different types of data from a variety of sources for a given instantiation. www.erpoty.com

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CIONET celebrates the most accomplished digital leader and digital innovator.

Leading the digital innovation With the European Digital Leader of the Year award and the new European Digital Innovator of the Year award, CIONET celebrated two visionary leaders who leveraged digital technology to advance their organisation and society.

17 At CIOCITY 17, CIONET International awarded Indrajit Banerjee, Director Knowledge Societies of UNESCO, as the European Digital Leader of the Year 2017. With this award CIONET wishes to celebrate the accomplishments of a visionary leader who substantially contributed to the use of digital technology

to the benefit of society. The award is granted to a person from outside of its member base. The award was granted for the second time in a row. At last year’s edition of CIOCITY the CIONET community handed out the first ever European Digital Leader of the Year award to - at that time - the mayor of the city of Eindhoven, Rob van Gijzel. Indrajit Banerjee has recognised how ICT can help address issues such as support for people with disabilities, ICT

Indrajit Banerjee, Director Knowledge Societies of UNESCO, European Digital Leader of the Year 2017, with Herman van Bolhuis (l.) and Frits Bussemaker (r.)

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Herman De Prins, CIO of UCB, European Digital Innovator of the Year 2017

for education and inclusion, etc., knowing that companies have technological solutions for these kinds of problems. Therefor UNESCO is working on the creation of a knowledge society by establishing partnerships with different stakeholders: governments. private partners, civil society and expert groups such as CIONETÂ - capitalising on the knowledge of the CIO community.

European Digital Innovator award Also at CIOCITY 17, Herman De Prins, CIO of UCB, received the European Digital Innovator of the Year award. With this award CIONET celebrates the achievements of a visionary digital leader who has leveraged digital innovation to the benefit of the entire organisation. By awarding Mr. De Prins the jury - consisting of the winners of the European CIO of the Year award of the three previous years - recognised that he created a productive and competitive culture of innovation by empowering teams to test and learn with evidence. In addition, he has helped UCB reorganise itself around teams. He and other CxOs have changed their roles from micro-managing innovation to orchestrating synergies across innovative teams. He now ensures they are integrated enough to have access to the resources required for not just innovating but innovating competitively. www.ciocity.com


‘Being sure that ICT grows safely, while you focus on the next step.’ As an IT department, you want to contribute to the growth of your company. While also profiting from digital possibilities, where flexibility and safety are crucial. At KPN we have the knowledge and expertise to digitalize your business completely safely. In addition, we make ICT flexible, to grow with your company and take all ICT work out of your hands. This allows you the time to focus on a next step. Discover the possibilities of ICT on kpn.com/ICT

Feel free.


Sharing knowledge with CIO commuunities across the globe.

Global Digital Leaders Alliance update In 2016 at CIOCITY the Global Digital Leaders Alliance (GDLA) was launched linking CIO communities across the globe. Already digital leaders are regularly applying a global perspective on the role of Information Technology.

The collaboration agreement was signed by the Society for Information Management (SIM) in the USA, the China CIO Union, the CIOKlub from India, the Russian CIO Union (RUcio) and CIONET representing Europe and Latin America. With this alliance we aim to increase and simplify knowledge sharing between our CIO communities based on the vision that we have a lot in common. Following is an overview of international activities CIONET and its members have been involved in since the alliance was signed: June ’16: Jaap Haenen, CIO of the City of Eindhoven, and Maarten Hillenaar, former CIO of the Dutch Government, gave two keynote presentations at the 8th China Cloud Computing Conference in Beijing. July ’16: Frits Bussemaker, Secretary General International Relations & Partner of CIONET, delivered a keynote speech at the Big Data Application Conference in China.

In April, a delegation of the Chinese CIO Union visited the CIONET headquarters in Mechelen. First row (l. to r.): Forrest Lin, Deputy Secretary General of CIE (Chinese Institute of Electronics), and Hendrik Deckers, Founder & MD of CIONET International. Second row (l. to r.): Li Pan, Secretary for Foreign Affairs at CIE, Frits Bussemaker, Secretary General International Relations at CIONET International, and Ning Huicing, Manager for Foreign Affairs at CIE.

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August ’16: Paul Daneels, then CIO of the Belgium governmental organisation VDAB, gave a talk at the FST Government conference in Wellington, New Zealand.


June ’17: Frits Bussemaker was asked to moderate the Smart City Track at the ITU ‘AI for Good’ Global Summit. This conference brought 21 UN organisations together in Geneva to discuss how Artificial Intelligence can support the UN Sustainability Development Goals. July ’17: SIM (Society for Information Management) and CIONET commissioned the yearly international IT Trends Study.

The MoU for the IAC to join GDLA was signed in Moscow at the annual IAC conference, which was co-organised by the Rucio. Among others: Hendrik Deckers, Founder & MD of CIONET International (3th from left) and Prof. Obi, president of IAC (4th from left).

October ’16: Frits Bussemaker, CIONET, attended SIMposium in Conneticut USA, the annual SIM summit with over 700 IT executives attending. January ’17: Frits Bussemaker moderated at the FSR Fintech Festival in San Francisco and met with Jonathan Reichental, CIO of the City of Palo Alto who accepted the offer to speak at CIOCITY. January ’17: Hendrik Deckers and Frits Bussemaker represented CIONET at the annual CIOKlub board meeting in Goa, India, where the various regional leadership teams presented their results and objectives. Overall objectives included the initiation of a Global Digital Leader Award and the celebration of the Global CIO day (April 25th). April ’17: A delegation of the Chinese CIO Union including Forrest Lin, Deputy Secretary General, made a visit to Europe including the CIONET headquarters in Mechelen. This visit resulted

‘The GDLA enables digital leaders to apply a global perspective on the role of Information Technology.’ in an introduction by CIONET to Indrajit Banerjee, Director Knowledge Society UNESCO, who then accepted an invitation to speak in China. May ’17: Frits Bussemaker presented at the KEY conference in Seoul and later met with Prof. Obi. International President of the International Academy of CIOs (IAC), in Tokyo, Japan. This meeting was followed up by a second meeting at the International Telecommunication Union (ITU) in Geneva - the specialised United Nations agency for Information and Communication Technologies. These meetings have resulted in the wish of the IAC to join the GDLA.

September ‘17: According to plan, we have signed the MoU for the IAC to join the Alliance. It was signed in Moscow at the annual IAC conference, which was co-organised by the Rucio. These activities show that we are getting to know the CIO communities around to globe and that we are executing our vision to share knowledge. They also demonstrate the value of the alliance given the interest of the IAC and the ITU. We hope that the various activities to share knowledge and best practices will grow over time. If you are interested in meeting with a fellow Digital Leader located in another continent or, if you are interested in giving a presentation at one of the international conferences, please contact Frits Bussemaker at frits@ cionet.com for more information.

This article was written by Frits Bussemaker, Secretary General International Relations & Partner of CIONET International.

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Iberdrola, Campofrío and Correos were awarded for meeting the challenges of digitisation

Meet the 2017 Spanish Digital Leaders At the beginning of July the jury of the Spanish CIONET Digital Leadership Awards announced the names of the three winners and the three finalists of the 2017 edition in the categories of Large Company, Medium Company and Public Sector. The awards were given in a gala organised by CIONET Spain and The Excellence Net, an event which more than 200 CIOs attended to meet the winners.

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The CIOs from Iberdrola (Large Company), Campofrío Food Group (Medium Company) and Correos (Public Sector) were the winners, while the finalist CIOs were MAPFRE (Large Company), Daimler (Medium Company) and the Ministry of justice (Public Sector). All of them stand out for their digital achievements during 2017 in competition with the rest of the projects presented. “It has not been easy to choose the winners. All the projects of this edition have been excellent and showed a really high level of our companies when it comes to meeting the challenges of digitalisation”, commented Mona Biegstraaten, President of CIONET Spain and LATAM. The members of the jury analysed each

proposal individually and cast their votes confidentially, as the names of winners and finalists of each category were not revealed until the gala itself.

Winning Projects 2017 The CIO of Iberdrola was the winner in the Large Company category. The main goal of Iberdrola’s digital transformation is to place the customer at the center of its strategy. And this positioning, in addition to bring obvious benefits to its subscribers, will also mean a real increase in sales estimated at 36% by 2020. “Iberdrola will have invested 8,000 million euros in digitisation by 2020, of which 3.1 billion correspond to the period 2016-2020”, commented Fernando Lucero, CIO of Iberdrola. “Research and innovation will be the


The finalists (from l. to r.): Felipe Nascimento, CIO at MAPFRE; Carlos Alves, Head of IT Services Europe at Daimler; and José Luis Hernández Carrión, Subgenera Director of New Technologies of the Spanish Ministry of Justice

other cornerstones that will guarantee this success, since Iberdrola is the fourth largest electricity company in the world for investment in R&D, with 211 million euros in 2016 alone,” he added. The award in the Medium Company category went to Campofrío Food Group’s CIO. The Awards jury considered that Campofrío is leading the digital transformation in the industrial sector thanks to - among other projects and initiatives - its new factory in the Spanish city of Burgos. In the words of Javier Álvarez, CIO of Campofrío Food Group, “Campofrío Food Group, had the opportunity to lead the digital transformation in its sector. To this end, it reviewed and made even more effective its proven business processes including technology as a key support element. The reconstruction project, which is one of the largest factories in the world, will allow it to continue leading the sector through the quality and innovation of its well-known products.” The new facilities allow automation by computer control of all processes, from the raw material to the factory until it reaches the market. “The production capacity of the factory is currently around 100,000 tons per year for baked goods, cured and sliced with the most advanced manufacturing technology,” added Alvarez.

The winners (from l. to r.): Fernando Lucero, CIO at Iberdrola, Javier Álvarez, CIO of Campofrío food Group, Jaime Sanz, CIO of the State Society of Post and Telegraphs (Correos)

The CIO of the State Society of Post and Telegraphs (Correos) was the winner in the Public Sector category. Correos is the leading logistics sector operator in Spain and the best provider of physical, digital and parcel communications. The developed initiatives and the deployed digital strategy have promoted and contributed to the growth of parcels by 30% since 2015, largely offsetting the decline in traditional postal mail. “Diversification allows us to take full advantage of the Correos Group’s potential to offer the best solutions to citizens,” said Jaime Sanz, CIO of Correos, after collecting his award. “Examples of this are the transformation of our offices into retail stores with an increase in customer satisfaction of nearly 3 points, innovation in financial products such as the CorreosPrepaid card and - in digital communications - the omnichannel communication platform Nexo“, he added.

Finalist Projects In the Large Company category, the nominee of the finalist project was Felipe Nascimento, CIO of the insurance company MAPFRE. The company enabled technology of the Digital Transformation, which was designed to respond with agility to the new needs of its customers.

The finalist project nominee in the Medium Company category was Carlos Alves, Head of IT Services Europe for Daimler. He was nominated for improving the service through 40% faster implementations, giving a leading role to IT to improve the business, and achieving savings of around 37% for the company. In the Public Sector category, José Luis Hernández Carrión, Subgeneral Director of New Technologies of the Spanish Ministry of Justice, was nominated as finalist. He was nominated for the implementation of digital systems with the objective of receiving requests digitally, and the maintenance of a web service 24 hours a day.

International recognition The principal objective of these awards is to encourage the visibility of the Spanish IT teams and their projects. But the recognition is not only national since the winners of the Spanish Digital Leadership Awards were also finalists at the European CIO of the Year Awards, organised by CIONET International in the annual CIOCITY 17 meeting in Amsterdam. If you think your IT project deserves to be recognised, mail to: eventos@cionet.com

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Show that technology is not a cost center but can be a great lever for businesses.

The challenge of turning costs into results One of IT’s greatest challenges is to show that technology goes far beyond support and can be a great lever for businesses. Nevertheless, this implies breaking down a cultural barrier within the company that has always seen technology as a cost center.

Renata Marques, CIO of Whirlpool (photo: Carolina Andrade)

Lilian Hoffmann, IT Superintendent of Beneficência Portuguesa Hospital Network (photo: Carolina Andrade)

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EVENTS CIONET Brazil

Some corporations have managed to do this. One example is the 157-yearold hospital Beneficência Portuguesa of São Paulo, which has 7.500 employees and 3.500 physicians, and which, through the implementation of the electronic medical record, obtained a score of 6 in the classification of the worldwide organisation HIMMS (Healthcare Information And Management System Society). The scores range from 0 to 7 and consider the level of safety for the patient. In Brazil, only one hospital has a score of 7 and only nine others have received this score. Speaking to the audience of the second CIONET meeting of 2017, Lilian Hoffmann, IT Superintendent of the hospital network, explained that for this implementation new business models were created and they included, among others, the use of a single device, a computer, for both doctors and nurses. In this equipment the information is entered in real time, in the patient’s room, as soon as it is collected. “The use of a single device for both physicians

and nurses that is taken directly to the patient’s room reduced costs by decreasing the medication error rate, the hospital infection index and the average patient stay time. Additionally, the more precise notifications about the procedures performed allow for predictive analyses based on real data and there was an increase in revenue”, Lilian explained. For Renata Marques, CIO of Whirlpool (which is the owner of the Brastemp and Consul brands) it is important to promote the digital mindset in the company leadership by making clear the threats and opportunities. She continued: “The CIO should encourage his or her team to think and speak the language of the business always remembering that everything has to continue working well.” Renata also highlighted the importance of developing partnerships with the other departments in search of productivity and with start-ups, which stimulate cultural change. Among other initiatives, Renata led Whirlpool Brazil’s president to the ‘garage’ of a


Lyzbeth Cronembold, CDO of the Bandeirantes group

Carlos Katayama, CIO of Up Brasil (photo: Carolina Andrade)

(photo: Carolina Andrade)

consulting firm. “It is interesting for the CEO to see such an environment”, she explained. In addition, the company is carrying out a pilot project in the area of water purifiers to measure consumption, to be more assertive in changing the filter element and to propose new business models. Band Outernet, a company belonging to the group Bandeirantes Radio and Television, also obtained excellent results from partnerships with universities and start-ups and from the adjustment in the hiring model. Faced with the challenge of implementing television systems in the São Paulo, Belo Horizonte, Brasilia and Porto Alegre subways, IT Director Lyzbeth Cronembold (currently CDO of the Bandeirantes group) had to look for a totally new path that led to the use of IP over UHF. The partner universities were Mackenzie University and the Federal University of Paraíba, which were already developing projects in the area of digital TV. The result was

Cristiano Romero, executive editor at Valor Econômico (photo: Carolina Andrade)

a 30% cost saving in content distribution with real-time updating and taking advantage of 90% of the legacy.

Alignment with suppliers The partnership with suppliers was commented on by CIO Carlos Katayama who spoke of his experience in companies such as Honda, Usiminas, DASA, Unimed BH, and Du Pont, among others. Currently he is CIO of Up Brasil. He suggested that vendors do not come and ask what is needed. “Be more forward-looking”, he stressed. He recalled that for that to happen there should be an alignment with the suppliers on the company’s plans. Katayama explained: “The department that is demanding IT projects has to commit to the top management and after that show the obtained results. With this awareness we have been able to reduce the number of orders by 30%.” He also talked about the democratisation of information. “We started to generate more information

in a more organised way”, he explained, highlighting the difference this makes to the business. Finally, he pointed out that before being CIO, the IT executive is also responsible for the company’s profits and losses. On ‘Transforming IT costs into results’, the theme of the meeting, Cristiano Romero, executive editor and columnist for the newspaper Valor Econômico, said that IT assures us that we will produce more with less inflation. This view was shared by Pedro Villa, CFO of Fortbras, who also participated in the panel. For Villa, who has held the CIO chair in other companies, the only way to gain productivity is via technology. And the way to determine the result is to look at the benefit that each project brings to the organisation. This article was written by Stela Lachtermacher, based on the CIONET Brazil event ‘Transforming IT costs into results’, which was held on 21th June in São Paulo.

CIONET Brazil EVENTS

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Which competencies and organisation structure are required in the digital age?

Adapting to digital business models Digital leaders are supposed to lead the adaptation of their organisation to new, digital business models. Many new challenges emerge on this journey. How to adapt your organisational model to best serve the digital transition? Which new competencies do you need to attract in order to prepare for the digital future? Which new forms of collaboration do you develop with your internal and external ecosystem?

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EVENTS CIONET Belgium

To exchange ideas and experiences on this topic, over 50 digital leaders gathered at the CIONET Belgium event ‘Digital Business Models’, which was held in Vilvoorde on May 16th.

IT governance challenges Prof. Dr Steven De Haes, University of Antwerp - Antwerp Management School, shared the conclusions of his recent ‘Board level IT governance’ research project, which examined why in most organisations non-executive board members are not involved in technology decision making, and why they should. Empirical studies demonstrate that more board-level engagement leads to more organisational performance. “However, often IT is considered as something operational or companies simply rely on the CIO as they don’t have sufficient expertise themselves”, explained Steven. “Often board members have a legal or financial background. To tackle this, boards should ensure that they have a balanced team capable of also addressing the digital challenges, next to the many other topics on their agenda. This requires the presence in the board of experts or multidisciplined directors, who understand the governance challenges around IT and digital. Obviously, the board should not look at the technical details of IT but give direction and provide oversight. The real discussion should be about


IT-enabled business transformation and business risks.” “Boards need to extend their governance accountability from a mono-focus on finance and legal to including technology and providing organisational capabilities to ensure that IT sustains and extends the company’s strategies and objectives”, concluded Steven.

Finding a new balance Xavier Bourgois, CIO and Senior Vice President IT of Barco, explained how to find a new balance by exploring - as a technology company - new services and new XaaS business models. Barco is a hardware and software manufacturer of display and projection technology, collaboration connectivity and image processing. “We live in a deflationary macroeconomic environment characterised by globalisation and shorter technology cycles. Growth is slower as we are no longer in a traditional replacement market. Today, customers demand outcomes and will only pay for what they get. That is why tech companies have to rethink who they are and evolve from being a technology vendor to delivering outcomes, using the right mix of hardware, software and services. In order to create an ‘outcome-based proposition’, they have to understand the outcomes customers desire, as well as innovate technologies and business models”, Xavier explained. Barco tackles these challenges by exploring new services through the ‘XaaS’ (Anything as a Service) concept. Examples in other industries, such as Car as a Service - making use of intelligent car sharing, Scan as a Service in the healthcare sector or shared workspace services show the way to go. New XaaS business models are attractive and simple to use, customers only pay for the results, and they can turn the service on or off at any moment. This requires new business processes and eventually upgrades of the IT tools.

Steven De Haes, University of Antwerp

“This transition to finding a new balance requires hard choices about the role of the IT department and about how IT becomes a service broker for its internal customers”, he highlighted.

No data, no glory Philip Taillieu is co-CEO of Be-Mobile, a world leader in smart mobility, providing a wide array of solutions through its integrated mobility platform. The company offers solutions such as Connected Vehicle Platforms, Traffic Management, Smart Parking, Mobility Payments Platform, Mobility as a Service, etc. No data, no glory… The platform offers a unique combination of infrastructure intelligence, user intelligence and personal messaging. The mobility database integrates data from sensors in traffic lights, cameras, radars, etc.; crowdsourced data from drivers, social media, police and emergency services, parking payments, etc.; other data from public transport, car and bike sharing, filling stations, toll services, etc.; and floating car data from GPS systems, smartphones, telcos, etc. Today, Be-Mobile provides the data coverage of more than 10 million European vehicles. How did they deal with this rapid growth? Philip explained: “We did this by having a

clear strategic vision, investing in new breeds of people while trying to keep early champions on board, and gradually bringing governance and structure in the company. Moreover, the company was split into business units, allowing each of them to focus on their own specific offering. Finally, as things change rapidly, open communication lines have proven to be necessary.”

Data, the new oil Gert Vanhaecht, CIO Belfius Insurance and Head of IT Digital and CRM Belfius Bank, stated that Belfius goes for 100% digital with all banking and insurance services having a digital extension on the internet or mobile apps. In 2016

Xavier Bourgois, Barco

CIONET Belgium EVENTS

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Philip Taillieu, Be-Mobile

the ‘Belfius Mobile First Digital Bank and Insurance Program’ has won the Belgian ‘ICT Project of the Year’ award in the Large Organisations category. This project was set up to transform Belfius from a traditional bank to a digital and ‘mobile first’ bank. “The project focuses on creating a real-time based personalised customer experience with a zero-touch approach - no paper and no human intervention - enabled by data and data analytics”, explained Gert. “In the past we used to aim at target groups of customers of whom we assumed they would be interested in our offering. But that approach was far from precise. The new normal stands for a real-time and personalized offering for which data is the new oil. A realtime decision engine decides which data to use and which experience to create at any specific moment in time. To achieve this, several technologies are being integrated, e.g. OCR, document signing technology, fingerprint recognition, etc. And, whenever a new innovation has proven to be useful we add it to our apps.” Gert stressed the importance of a strong partnership and alignment with the business partners. “Business and IT should collaborate as one team.” Also a strong collaboration with other concerned departments, e.g. legal, is necessary. “The combination of skills

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EVENTS CIONET Belgium

through collaboration is more important than just technology”, he concluded.

Digital transformation in sports Bert Van der Auwera, Head of Digital Transformation, Contract Management, etc. at football club RSC Anderlecht, explained that in the past several club departments created their own digital solutions. This resulted in silos and knowledge gaps. The SAP Business One tool, for example, was implemented by the Finance department. Other departments only used it for the creation of PO numbers. “The new stadium development project was the perfect opportunity to bring people

together. Through the centralisation of knowledge and data, we expanded the financial tool with quick, scalable wins”, Bert said. “We created, for example, a warehousing system for sports equipment. By scanning article numbers directly in or out the SAP system we obtained valuable data for a better support of e-commerce.” “In a next step, we identified a number of core activities and responsible persons, and set up clear procedures including KPIs, budgets and security. We also made people accountable for identifying and closing the knowledge gaps within their own line of responsibilities.” “Today, SAP Business One is our core platform throughout the club: finance, ticketing, warehousing, sports data, ... Moreover, we pay special attention to connecting with our fans, sponsors, players and other peers. We bring them the best possible story based on good data, with maximum convenience to enjoy it anywhere and anytime. By learning to use new digital possibilities, maximising knowledge and centralising data, we are building the best possible digital story.” This article is based on the CIONET Belgium event ‘Digital Business Models: what competencies and organisation do you need?’, which was held on May 16th in Vilvoorde.

Over 50 enthousiastic digital leaders exchanged knowledge and experiences at this exciting event.


Your trusted partner in times of digital transformation Cegeka’s mission is to help customers survive and thrive in a world where the rules of the

game are constantly changing. We do this by ‘unburdening’ C-level decision makers and helping them become digital to the core.

www.cegeka.com


IT-CMF allows organisations to understand where they need to focus to achieve their ambition.

AIB and the IT-CMF AIB, the largest retail and commercial bank in Ireland, has a leading position in digital enablement. AIB’s ambition is to be recognised as having the best technology function of any Bank in Europe by 2019. To achieve this, AIB needed a methodology that allowed them to consistently track progress year on year. IT-CMF was identified as the most adequate solution.

TECHNOLOGY

CUSTOMER

MARKET

Who are the AIB?

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AIB is the largest retail and commercial bank in Ireland and has a leading position in digital enablement.

Our Net Promoter Score (NPS) for 2016 was 45. This is a positive upward trend Year on Year.

Our technology people are a mix of AIB and outsourced staff and we make 20k changes to the production environment every year.

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2.7M

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1.1M

Personal and SME Customers

Mobile Users

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53% of all key products purchased via online channels, 95% of customer engagement conducted through our digital channel and 67% of transactional customers are active on digital channels

15K

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Daily Transactions Inc. 325K ATM withdrawals, 240K Internet Banking Logins, 501K Mobile Interactions, 28K Kiosk/ Tablet Logins

THE NEXT CIO CIONET International

Agile – Micro Services Cloud – BPM – Robo5cs AI – API


AIB’s ambition AIB’s ambition was that AIB is recognised as having the best technology function of any Bank in Europe by 2019. In order to achieve this goal, AIB recognised that they needed to baseline their capabilities against their peer group to better understand where they needed to focus.

Key survey findings

FINDINGS

-- Review the Technology Target Operating Model; -- Align Enterprise Architecture Management across CIO and CDO teams; -- Develop talent and capability for the future;

OUR RESPONSE

-- Conducted a deep dive Op Model Review with a focus on Architecture, Engineering, and Demand; -- We also assessed Platforms, Data, Operations, Information Security, Risk and Demand Management;

The solution AIB needed a framework that allowed them to consistently track progress year on year. The IT-CMF was identified as the most appropriate solution.

Why the IT-CMF?

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The IVI provides a globally acknowledged process IT-CMF which allows organisations to baseline their current capabilities while enabling targeted improvement of capabilities through the CIP (Capability Improvement Process).

Access to the IVI consortium with opportunity to engage with industry thought leaders and practitioners with extensive multi industry experience.

Access to business relationship managers is an essential value add to the overall IT-CMF process.

OUR DESIGN PRINCIPLES

-- Single Technology Function -- Shared Service -- Platform Leads

Impact of the survey and next steps IMPACT -- The survey results and feedback were pivotal to informing the IT organisation on key focus areas; -- This was particularly useful when shaping and agreeing next steps in terms of strategy and the new target operatig model; -- Capabilitites were identified as requiring development and formed the backbone to developing the one technology target operating model included; -- The GTS and Digital transformation process to a one technology solution for the Bank is currently underway;

NEXT STEPS -- Following stabilisation of the new target operating model plan to leverage detailed Executive report and identify areas for Capability Improvement Program (CIP); -- Launching CIP (a formalised training and improvement process) to guide capability change in support of AIB’s Business and one technology strategy; -- Revisit IT-CMF Survey process to assess new IT-CMF score as a measure against expected outcomes (Q4 2017);

Key metrics Comprehensive plan As part of the scoping phase, detailed discussions took place between the IVI and CIO team. A comprehensive plan was developed covering all the key deliverables, timelines and expectations: -- CIO communications outlined the rationale for this approach; -- Survey participants were identified; -- On site pre-survey training sessions were delivered by IVI practitioners (purpose: to help participants fully understand and evaluate the survey questions); -- A survey was issued with agreed return dates; -- The survey results were shared with the CIO and CDO management teams.

What were the key metrics of this survey? -- Completion of the IT-CMF Executive Assessment survey by 73 participants: 61 in IT and 12 in the bank; -- Individual interviews with 16 of these participants: 12 in IT and 4 in the bank; -- The outputs included analysis, conclusions, improvement recommendations and preparation of draft and final report.

Outcome The CIO’s average overall IT capability maturity was selfassessed at 2.3 or Level 2 (equivalent to Basic Maturity). Find out how the IT-CMF can help your organisation. Contact today: Jeroen Kleinhoven (jeroen@cionet.com) or Herman van Bolhuis (herman@cionet.com)

CIONET International THE NEXT CIO

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The CIO should take advantage of the opportunities of adopting a digital strategy.

IT - step up or step out Adopting a digital strategy should strengthen rather than weaken the hand of the corporate CIO function. Now is the time to accept the mandate and to re-equip the IT function to become a digital partner with the businesses. In today’s fast-moving world of IT consumerisation, big data, machine learning, and ‘Everything as a Service’, the IT function is becoming sandwiched precariously between two rapidly changing environments: -- On the ‘supply’ side, IT is witnessing wholesale disruption of traditional outsourcing players such as IBM and HPE as hybrid cloud becomes the de-facto standard for infrastructural platforms. This brings into play an entirely new set of cloud players such as AWS and AZURE; -- On the ‘demand’ side, many businesses are transitioning to software based products and services that require speed and constant innovation to maintain market leadership. This is frequently in conflict with IT’s ‘waterfall’ development processes that promote efficiency over agility Consequently, IT is fast losing control of the end-to-end supply chain that

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THE NEXT CIO CIONET United Kingdom

it has managed for many ‘pre-digital’ decades. In the view of many leading UK CIOs such as Craig Walker of Shell, this is creating an existential crisis that needs to be resolved through new structures, cultures and capabilities.

Plug-and-play game Over the last few decades most IT organisations have outsourced or offshored their infrastructures and applications management activities, leaving few in-house resources to deal with impending digital challenges. With the advent of ‘Everything as a Service’, many CIOs are now struggling to migrate long term strategic contracts into ‘plug-andplay’ relationships with new cloud vendors such as Amazon’s AWS and Microsoft’s AZURE. This requires new internal capabilities and resources to integrate different cloud offerings into a seamless service for the end user.


What is remarkable here is that the IT sector itself has been disrupted well ahead of most other industries, and that the vendor landscape has changed in a radical fashion. Large incumbents chasing multi-million dollar outsourcing contracts have discovered that the ground has shifted towards commodity-style transactions. This can bring large cost savings to the customer, but leaves both parties, vendor and IT organisation, in a state of unreadiness. The more enlightened IT functions such as RSA, BP and Rolls Royce in the UK are implementing service integration and management (SIAM) techniques to accommodate the new IT landscape.

Becoming digital leaders A recent survey undertaken by the University of Surrey on the ‘State of Digital Disruption’ in the UK interviewed over 40 CIOs in 11 sectors. Its findings confirmed that virtually every sector, from Pharmaceuticals to Banking, was being disrupted by digital techniques. The most apparent driving force here is the need to acquire real-time insight into customer behaviour. Such insight enables market leaders to constantly innovate or refine their products and services to meet changing customer expectations. The attributes of success in the emerging digital economy appear to be linked to continuous experimentation and adoption at scale. What many companies are discovering is that once a product leaves manufacturing and commences its operational life cycle, the data that can be collected gives vital clues to its performance and potential for improvement. For companies such

‘Often the skills base offers little capacity to deal with new digital demands.’

as GE, this offers its customers dramatic savings in maintenance costs and improvements in reliability. For those in the consumer world, software components can be constantly updated, hour-by-hour, to improve customer experience, as demonstrated by companies such as Amazon and Netflix.

New IT-business partnerships Discussions with business leaders throughout the UK indicate that the race is now on to apply digital techniques such as data analytics and machine learning to track and influence customer behaviour. Equally, attention is being focused on techniques such as Robotic Process Automation to speed up customer facing processes such as claims processing in insurance. Multiple experiments are taking place to deploy such tools - in one case, central IT discovered over 157 instances of dispersed digital applications. Many IT organisations remain focused heavily on supply-side issues including vendor contracting and legacy migration. Often the skills base is weighed heavily towards such preoccupations, and offers little capacity to deal with new digital demands such as agile development and tool deployment. Leading IT organisations recognise this gap and are building new capability to provide direction and assistance to their business partners. In cases such as GE and Ford, IT has sought strategic relationships with external parties such as PREDIX and PIVOTAL to accelerate internal transformation.

Roger Camrass

New digital IT organisation The structure and composition of a fully transformed IT organisation capable of dealing with radical changes in both supply and demand for IT services will have three defining characteristics. The first key characteristic is an ability to focus on what business managers need today such as reusable software

CIONET United Kingdom THE NEXT CIO

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components, or microservices, and scalable platforms to support such digital products and services. This implies a fundamental change away from projects to software products and services. The second is an ability to offer their business partners ‘hyperscale’ platforms based on cloud services that have global scale and reach. This implies close partnerships with cloud providers such as Amazon and Microsoft that already possess such global infrastructures. Few organisations will be large enough to build these for their own proprietary use, although some banks are considering such moves. Finally, IT organisations need to assert themselves as ‘pathfinders’ within the business community, shifting away from legacy preoccupations towards modern digital capabilities such as data analytics, cognitive learning, automatic testing and new partnering skills. This implies extensive contact with innovative new companies in Europe and the USA that can bring new tools and techniques to the current IT portfolio.

Implications for the CIO Dealing with changes in either supply or demand for IT services is difficult, especially in the current era of cost

pressure, legacy constraints, and the focus on regulatory (GDPR) and cyber issues. Most CIOs have directed their efforts to transforming supply-side relationships to exploit the new diversity of cloud operators. However, this has led to a growing credibility gap between IT and its business partners. Our view is that CIOs need to be willing to take on the current challenge by tackling the current fragmentation of effort, and introducing stronger governance over all things digital. In 2017 many CEOs of leading companies have recognised the importance of adopting a digital strategy for their businesses. This should strengthen rather than weaken the hand of the corporate CIO function. Now is the time to accept the mandate and to re-equip the IT function to become a digital partner with the businesses. By not doing so, IT may well be consigned to a lower level engineering function and miss out on the truly transformational opportunities that lie ahead.

This article was written by Roger Camrass, Partner at the Maxos Group and Visiting Professor at the University of Surrey, and Mark Foulsham, Chief Digital Officer of Scope, one of the UK’s largest charity organisations.

Mark Foulsham

CIONET UK is preparing for relaunch CIONET has engaged with a new team in London to relaunch CIONET UK. Roger Camrass is a seasoned executive with a rich career in large corporates. He is also a writer, speaker and moderator. Sean Foley is a very experienced business developer with a large CIO network. Over the last years he has built a flourishing CIO roundtables business. Roger Camrass and Sean Foley are very committed to make a big success of CIONET UK. Their first focus is on building a fabulous advisory board, attracting business partners and cleaning up and growing the membership.

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THE NEXT CIO CIONET United Kingdom


Applied Innovation changes everything.

Innovation is no longer something new, but something standard. Organizations not only want technology, they also want access to knowledge that matters. Discover how to apply innovation at the right pace, on the right scale, in a safe and sustainable manner. Capgemini introduces a new and unique approach: the Applied Innovation Exchange. Connect with this network today, in which your ideas and prototypes are tested and turned into true solutions.

For more information: www.capgemini.nl/ applied-innovation-exchange Or please contact: Peter Paul Tonen Director Applied Innovation Exchange peterpaul.tonen@capgemini.com +31 6 4617 1806

CIONET Brasil EVENTS

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CIO coaching program enhances personal and professional growth.

CIONET Peer Mentoring Program The CIONET Peer Mentoring Program helps CIOs to grow in their leader­ship role. César López, is an Executive in General Management, with experience of more than 30 years working in leading national and multinational companies. He has been occupying positions as General Manager, VP of Operations and VP of IT. César also is a mentor of the CIONET Peer Mentoring Program. What is the Peer Mentoring Program? César López: “It is a program in which a team of CIOs gathers to share experiences on how to beat organisations in their leadership role, how to work collaboratively to develop talent and ideas that support sustainable growth in organisations. The teams consist of 8 to 12 people guided by a mentor with extensive experience on different topics. This enables the participants to acquire knowledge and share experiences, enhancing their personal and professional growth.” How was this project implemented? “A group of CIOs in Europe created this idea. Here in Latin America we have analysed the idea together with some colleagues. We concluded that we could develop a similar program based on the experience in Europe, with the methodology to create teams and collaboratively integrate them.”

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Which countries are included in this network of international mentors? “We are active in more than 15 countries in Europe and Latin America. In Latin America, the Peer Mentoring Program that I am coordinating covers Colombia, The Andean region, Venezuela, Ecuador, Peru and Panama.” What would be the tools to deal with the current challenges for CIOs in the era of Digital Transformation? “Collaboration is without doubt a very important tool: collaboration within the organisation and collaboration with other entities and networks that become increasingly important for digital transformation. We must rely on the strengths we have and seek other strengths in the community. Another important tool is talent development. We develop internal talent and we attract external talent. Other tools are synergy and shared work schemes within or between companies. We will be addressing these topics in the Peer Mentoring Program.” How about the development of collective intellect in this program? “It is impressive what we can achieve when we work collaboratively. The collective development leads to geometric growth. When a team shares experiences and generates ideas, it grows in knowledge and creativity in an impressive way. It is very important that the participant enters the program with a very open mind, with all availability to contribute and with all the openness to listen.”

THE NEXT CIO CIONET Colombia

Who can join this program? “The program is open for all colleagues who manage the IT department or IT processes in organisations. They may for instance be the VP of IT, the IT Manager, the Director, the boss, or the person responsible for managing IT processes in his department. We have people from CIONET, but IT leaders who are not yet members of CIONET can also register. The participants come from different industries and companies of large, medium or small sizes.” Why should one choose for the CIONET Peer Mentoring Program? “This CIONET methodology has proven to generate very positive results. In addition, there is a large number of collaborators in the network with vast experience, which makes it very enriching. Moreover, the program is supported both by CIOs from the same country and from other countries. Finally, CIONET is a multi-industry community, which enhances the exchange of ideas within or among various industries.”

César López


Business departments should also be involved in IT transformation.

Transforming the employee experience ITAKA has been operating successfully on the tourism market for nearly 28 years and is one of the unquestioned leaders in this sector. It uses an advanced e-commerce system, modern data analysis tools and customer profiling to provide excellent user experience. However, the company’s CIO, Arkadiusz Olchawa, decided that another area - the employee experience - also needed to be transformed. The employee market is becoming ever more demanding. Companies compete for talents, trying to attract and keep the best, most creative people. Customers can already have access to ITAKA’s services from any place and any device. The same solutions are also increasingly accessible for employees. For instance, employees can already take phone calls in any place and the call centre does not need to be linked to a particular location. It is advantageous to build web applications because it enables their easy integration and customisation. The IT infrastructure is being rebuilt in such a way as to make this broad access possible while ensuring an appropriate level of system reliability and security. Recently, ITAKA’s data centre (DC) was transferred from the headquarters to a new location. The new, more professional DC ensures better

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CIO VISION CIONET Poland

security parameters. Moreover, a backup data centre was established. Moreover, core applications are being successively replaced by web solutions. The former solutions, which were complicated and demanded advanced IT skills, had some advantages - the employees of the IT department, as well as some others, were experts in this field, knew how to handle them and felt satisfaction from being able to face the challenges. That is why some of them seem not to enjoy the fact that complicated interfaces are being replaced by more user-friendly versions. But the point is that these new solutions cut costs, increase accessibility and facilitate integration. The interface, easy to use for customers, hides underneath some solutions of external companies - ITAKA’s business partners. Customers believe that they use one application while in the background a

complex system is operating. This transformation brings enormous benefits for the company. Arkadiusz Olchawa believes that the transformation must be carried out not only by the IT department but also by the business units, because people should promote the change in their departments. Most employees do not want to go through the change, although afterwards they can enjoy its benefits. So, it is necessary to encourage them to accept this change. Even if the IT department can achieve the transformation by itself, people from business departments should also be involved in it as the promoters of change in the organisation. This article was written based on the speech of Arkadiusz Olchawa, CIO of ITAKA, delivered during a meeting devoted to digital transformation.


Digital transformation has to be done in close contact with the customer.

Change your culture It is clear that new digital technologies are changing the way we communicate, buy, serve and even relate. While technology is the great enabler, the first thing to do in organisations is to change the culture and motivate people to take ownership of digital issues. We have to reorganise the company focusing on collaboration, methods of holacracy that allow more autonomous working, structures with clear roles, collaborative spaces, disruptive leadership and clear indicators linked to the objectives. Medium and large companies opt for a structure or department focused on digital transformation and innovation. In SMEs a lot of work should be done with allies. In addition, companies should resort to the talent of digital thinking, allowing the questioning to generate new ideas and the constant training of that talent. They should carry out foresight exercises. Strategic planning exercises should be combined with constant prospective exercises as the dynamics

require it. Foresight gives us clues as to where our business is headed. We can also contribute to the future by building on trends. As trends mark us changes and risks, we must analyse them and - from that point - go to the new path of transformation. For example, if my company is a producer of plastic containers and foresight tells me that 3D printers are going to print those containers and the trend tells me that those printers are going to be massed, I should start to check what my new business model will be doing. Will I sell digital container designs for others to print? Do I include the sale of 3D printers? Do I include a B4B service for the people who will acquire them? With respect to the product, we must analyse two aspects. The ideal is to reach the core of the disruptive change, but as we are aware that this takes much time and effort, parallelly we should work on continuous transformation that allows us to obtain constant victories for staying in the market and encouraging customer growth. An example of this is how a diaper company - through social data analytics - discovered two major needs of moms: first, to be alerted when their baby’s diaper needs to be changed, and second, not to fall out of diapers. For this they designed a sensor that fits the diaper and sends a real-time notification to change the diaper to the mother’s phone. It also manages the inventory and automatically makes the purchase. This is a

differential victory in the market and - at the same time - creates a barrier to customer exit. Today, listening to the clients is necessary and for this we have analytical tools to understand what they want and need. Based on this information we can create products focused on our client and find new ways of doing things without losing the core business. The experience and information we get from clients is very important for change, always placing them at the centre of the organisation in order to offer a higher value product. Digital as a marketing strategy is growing and is the way today in which we can reach the consumer in a different way. It is no longer just about segmentation. Today, thanks to new technologies, we can reach consumers in a personalised way, using the digital transformation model. This article was written by Gabriel Alzate TobĂłn, Specialist in Digital Transformation and Innovation, and Director of Interactive Management at SURA Colombia. @gjalzate

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Banks are making use of new digital opportunities to grow the economy.

Digital transformation in banking Banks are taking an important role in covering the new needs coming from digital transformation. This will grow the businesses of both banks and organisations. In this era of technological renaissance, the concepts of developing business change to new digital models comprised of devices and apps that are closer to people (laptops, phones, tablets and today even televisions and cars). In face of this revolution, new ways of delivering services have emerged in various economic segments. Banks are taking an important role in covering the new needs in order to grow their own and their customers’ businesses.

Improving client experience Banking services cover many customer needs with products such as credit cards, automotive and mortgage loans, various savings-related products, current account management, credit lines etc. Banks have been searching for methods to be more efficient and deliver a better service. But the offered services still do not meet the customers’ expectations. They want to spend less time on banking activities, which requires greater accessibility, more closeness, and less cumbersome processes. The clients’ experience needs to be improved radically with immediate and

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simplified accessibility. This requires a thorough digital transformation.

Breaking paradigms Digital transformation involves the opportunity to make radical changes in the way business is viewed. For this, it is essential to create Innovation Centres with multidisciplinary teams from business departments and IT, involving qualified partners. The Innovation Centres have to find the right people, adapt conventional processes to agile processes, align concepts and work methods, focus on in-house development, and incorporate already existing solutions. This incorporation will improve the delivery times of profitable services, which is a competitive advantage.

Where will we go with these changes? The aim of all these efforts is to fulfill the dream of performing transactions and operations in real time, giving the customer what he needs at the right moment. An efficient transformation will allow digital platforms to be the ones chosen by users for their interaction with financial institutions and

their products. In a world where fintech with payment buttons, financial intermediation, online risk scoring, digital wallets and other technological services already exist, banking must integrate and absorb or develop its own initiatives. I think that the next five years this development will be vertiginous and the concepts already sounding from Omnichannel, Blockchain, Big Data, AI, Analytics, Cloud, etc. will allow us to have solutions and services in the palm of our hands - on our mobile devices. This article was written by Jorge Longa, Production and IT Services Manager at Bank Falabella Peru; Corporate Manager of Operations and Technology in credit access at Accesocorp; and President of the CIONET Latam North Advisory Board.


Digital transformation requires an increasingly proactive security approach.

Tackling the cybersecurity risks Especially the increasing need for connectivity and interoperability has led to the growing necessity of appropriate security governance with third parties.

Digital transformation with an increasing use of technologies - has led to greater cybersecurity risks than in the past. Today, a company can no longer be concerned only about its own fortification walls, but has to conceive an idea of security that goes beyond its own barriers.

Which trends (big data, IoT, cloud computing) related to digital transformation have the greatest impact on cybersecurity initiatives in the company? Alessandro Cosenza, Chief Information Security Officer at Bticino: “I don’t think there is a trend that, in the absolute sense, has more effect on cybersecurity. It rather depends on the business and organisation of the company. The rapid change in the external environment, which is above all technological, overwhelms organisations that often are forced to review their operating models, because it is necessary to keep up with the times without losing business value. The big data explosion, the digitisation of business functions, the Internet of things, to name but a few examples, have led companies to expand the use of technologies, with the consequent creation of a greater risk than in the past. If there is one element in common between these technologies, it is cloud computing. The cloud is not only a central interconnected digital ecosystem for private use, businesses, and governments, but also the platform that allows the development

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Alessandro Cosenza, Chief Information Security Officer at Bticino Adriano Piras, Head of Credit and Fraud Departments at Italo – NTV

of new technologies such as IoT and mobile payment systems. It has had an impressive impact on technology and it probably will continue to do so in the future, especially in cybersecurity matters.” Which gap do we have to fill (human resources, devices, technologies) to guarantee an effective defence in the company? Cosenza: “Undoubtedly, human resources are the key which we have to invest in. People are always the weakest link in the security chain. The most innovative defence technology can protect systems, but it can’t prevent employees (even unknowingly) from publishing information on social networks, perhaps using their mobile devices, or falling into social engineering traps, or being victims of a malware attack. It is a utopia to think that technology will protect us. Those who decide to attack do not want to spend a lot of time and money defeating our technology, but rather attack the weaker element, that is the user because this is much more convenient. That is why I think it is fundamental to use an approach intended to increase the culture of IT security within companies, but not only that: governments should also promote awareness-raising campaigns to educate citizens about the security risks they face in using technology in their daily lives.”

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When we talk about IoT, connectivity and interoperability, how important is security governance with third parties? Cosenza: “Opening a system to third parties (for example, developing apps or interfacing other components with these) is undoubtedly an opportunity, but we have to think about the security risks we are introducing. It is important to adopt appropriate security governance. In particular, it is desirable: -- to have an information security policy to test and approve third-party products that will be integrated into a single solution; -- to adopt a security-by-design approach not only to a single component of an IoT ecosystem but also to the whole solution that will then be implemented; -- to adopt a data breach policy in order to immediately react to a cyberattack and minimise possible adverse effects. These policies must be part of the contractual arrangements to which all parties that make up the connected system are required to comply.”

Digital Fortifications “The ‘digital fortifications’ - built to protect corporate information - originated from the basic need of security. They are essential for a company to protect itself from dangers, threats and anything that can prevent it from

achieving its goals”, explains Adriano Piras, Head of Credit and Fraud Departments at Italo – NTV. “But just like human beings, many companies often consider these needs as subjective and/or social. Therefore they are regarded as secondary in the hierarchy (Maslow, 1954), and companies are satisfied with fulfilling the primary needs, which are strictly connected to the survival of the organisation. On the other hand, the abrupt evolution of technologies in every field, the passage from industry 3.0 to industry 4.0 highlighted the importance to overcome this idea, and to consider security as fundamental. Compared to the past, the forms, types and quantity of information that a company wants to protect and store are different. Apart from data regarding business strategies, it is necessary to consider information about customers, their behaviour, their spending habits, electronic payments, etc. As some of this information could also concern critical infrastructures, protection is a primary goal, both nationally and internationally. Just like fortification walls - besieged and attacked with cannons, and having to be constantly rebuilt, improved and strengthened - today a company cannot be concerned only about its own walls, but has to conceive an


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Luigi Rebuffi, CEO at EOS (European Organisation for Security), and Secretary General of ECSO (European Cyber Security Organisation)

idea of security that goes beyond technological barriers. It has to create a ‘corporate conscience’ and a ‘security ecosystem’, not only to manage the different levels of risk, but also to guarantee a rapid prevention of threats, assessing the business and its security needs. This has to be carried out by synergic interaction and the regulation of the behaviour of the involved stakeholders. All this should be accompanied by an adequate and satisfactory global legislative system for the medium and long term. Therefore, security is the main goal at any corporate level, both through the assumption of responsibility and refresher courses for top management and other employees - limiting the social engineering phenomenon and cooperating with companies specialised in IT security.”

Cybersecurity in the EU How the EU dealing with the cybersecurity issue? Luigi Rebuffi, CEO at EOS (European Organisation for Security), and Secretary General of ECSO (European Cyber Security Organisation), explains about the strong partnership between ECSO and the EU in the field of cybersecurity. Rebuffi: “On 5th July 2016 the European Commission signed with ECSO - as representative of the private sector - the contract establishing the very first European Public Private Partnership (cPPP) in

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cybersecurity. This PPP was set up to boost strategic research and innovation on cybersecurity in Europe and generate an investment of €1,800 mln by both parties. The aim of the partnership is to provide Europe with the most recent solutions to counter cyberthreats; the development of the Digital Single Market; protection for our economy and society; and support for the growth of the European cybersecurity industry. This PPP is a unique opportunity for all European stakeholders to start a multilateral dialogue and cooperation with each other, design and manufacture solutions adapted to our needs, and build a comprehensive cybersecurity ecosystem in Europe. In just a few months ECSO has gathered around 200 members: large companies, SMEs, users and operators, research centres and universities, regions and local bodies, but also national public administrations from member states, as well as H2020 associated countries, EEA and EFTA countries.” “Due to the sensitivity of cybersecurity, it is essential to involve the active participation of national public administrations (MISE for Italy). By doing so, ECSO has set up very unique governance for this PPP in which public administrations may become full members of the Association. The views developed in our working groups together with the public administrations and the private sector generate substantial added

value. Besides, we are witnessing an increasing political awareness of the importance of securing cyberspace from the potential cascading effects of a hack at national and EU level. Just think about interferences in the democratic and political process. Moreover, new European regulations like the GDPR, eIDAS or the NIS Directive will drive and stimulate market growth, but will also raise important questions about the appropriate measures to be used.” “ECSO is working with its members not only to produce the strategic research and innovation agenda as requested by the cPPP, but also in five working Groups (WGs) that are active in the different aspects of what we call the ‘cybersecurity industrial policy’: Standardisation, certification, labelling and trusted supply chain; Market development and investments; Links with users and operators in the different market sectors; Support to SMEs and regional or local aspects; Education, training, awareness and cyber ranges. We are also launching the creation of a European

‘It is essential to involve the active participation of public administrations.’ network across HR specialists among our members and sending European and national public administrations and decision makers a strong message for an effective financial support and incentives to develop cybersecurity competence in Europe and boost the job market.” “ECSO is continuously growing, delivering concrete and highly regarded recommendations to European and national legislators while launching and championing innovative ideas suggested by its members” Rebuffi concludes.


Ensure that you have complied with the key requirements of the GDPR.

GDPR from a compliance point of view When we look at your GDPR project from a purely compliance point of view your project can be broken down into five phases. As compliance is based on ensuring that the personal data you hold is justified, accurate and secure, your project will be designed to work with the various data streams that you have. So your project will be broken down into: Phase 1 – Allocate a project team representative from each data owner, so HR, Accounts, Sales and Marketing, your various production departments will have representatives in the overall project. This is where you may well form a number of smaller project teams so that each data owner can examine the data that they process and store and ensure that they have a valid business need to retain each of the fields. They will also need to confirm that their existing data retention rules are consistent with and can be justified within the provisions of the GDPR. Within this work stream, each project team will need to perform a Data Protection Impact Assessment (DPIA), or a PIA in the UK. This phase will include a risk assessment and reduction process to ensure that your various data sources have been assessed on a business basis and that you have looked at your suppliers who hold or process the personal data that you are responsible for. Phase 2 – Understand how you are operating. Are you a Data Controller

and Processor or both. How do you control your suppliers and ensure that they will be compliant. You should also ensure that if you need a Data Protection Officer that one is recruited (or you have a contract if this is a position that you will be sharing with another organisation). Phase 3 – A company-wide awareness program to make sure that any working practices have been updated to ensure that all employees understand that the company is fully committed to complying with the GDPR, and what this means in terms of how you communicate with your Data Subjects, how and where you display your Privacy Notices and how you comply with Subject Access Requests. Phase 4 – This is where you will focus on your processes for rectifying any inaccurate data that you become aware of, how you deal with an erasure request (the right to be forgotten) from a Data Subject, if you are the Data Controller, or how you will deal with these requests from the Data Controller if you are the Processor. Phase 5 is focusing on your business applications and the IT systems that support them. You must ensure that your systems are able to comply with the right to erasure (above) if your applications have needed to be updated that this has been arranged

and the necessary testing and sign-off within the agreed time-scales to meet your project obligations. You may also need to be able to comply with a data portability request, as well as ensuring that you have Security by Design at the heart of your IT system design. You must ensure that your existing security testing processes (penetration testing of the Web applications and meeting your Payment Card Industry obligations) have been updated. This stage will include your ability to identify a security breach and how you will notify the authorities. You may need to update your internal monitoring and reporting procedures. These 5 phases will ensure that you have complied with the key requirements of the GDPR. As well as complying you will need to retain the necessary documentation so that you can satisfy an audit of your compliance. Read more in the book ‘GDPR: Guiding Your Business To Compliance: A practical guide to meeting GDPR regulations’ by Mark Foulsham and Brian Hitchen (available on Amazon).

This article was written by Mark Foulsham, Chief Digital Officer of Scope, one of the UK’s largest charity organisations.

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To generate value, everything the CIO does must be relevant for the business.

Being an entrepreneurial CIO The CIO’s key driver shouldn’t be a focus on ICT infrastructure solutions but on the business value of IT. He has to truly understand the business and the customer requirements. Bernd Sengpiehl, a very experienced CIO who also held various management roles at IBM, is today sharing some of his insights and recommendations for being a business savvy CIO. He currently is CIO and Head of Software Development at the Germany based digital media and software company Haufe Group. His main theme is: “Everything I do as CIO must be relevant for the business.” He sees his primary goal as CIO in creating added value for the business of Haufe Group. “I regularly meet CIOs, who are focused on driving digital transformation based on a ‘Next Big Thing’ philosophy. The bigger the project, the better. In my opinion, they choose the wrong approach, because the responsibility of a modern CIO

Bernd Sengpiehl, CIO and Head of Software Development at Haufe Group

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starts with the digital transformation inside to become as fast and flexible as possible to support current and future business needs. That’s what the business is looking for.”

It’s the network, stupid! The reason for that misalignment is that still many CIOs don’t understand the (needs of their) business. They stay in their office and wait till somebody from the business side knocks on their door. But that will not happen. “When asking my peers how often they speak to their sales people, I rarely meet a colleague who does that on a frequent basis. If you don’t talk to your sales guys and your clients, how can you know what the business needs?” For Bernd Sengpiehl, one of his first priorities when coming into a new company is therefore to build and grow his internal network with the business side. “To me, this is much more important than to have very specific knowledge about an industry segment. As the technology advisor, I need to be more of a generalist, understanding all options for using disruptive technologies to grow the business of my company.” He is convinced that “the emergence of the Chief Digital Officer is the result of the failure of us CIOs to

Key Learnings Bernd Sengpiehl formulated the following key learnings and recommendations: 1. The key driver of IT shouldn’t be the focus on ICT infrastructure solutions, but the business success of the company and the business value of its IT; 2. Understand your business and the customer requirements; 3. Do not seclude yourself to IT topics, become knowledgeable about your existing and future business model; 4. Proactively approach your peers in the business and continuously build and deepen your internal network. Be a Partner not a servant for the business! present ourselves as business-savvy technology advisors and partners to the business for developing new technology-driven products.”

Culture defines outcome The defining reason why Bernd Sengpiehl joined Haufe Group was the shared leadership principle of placing employees at the center of entrepreneurial thinking and action. “The key collaboration principle of our company culture at Haufe Group is that we don’t divide ourselves into ‘the business’ that defines tasks and other functions that have to deliver them. We jointly own the whole value chain of product development and customer satisfaction


“Our DNA at Haufe Group is all about being a people’s business.”

and hence business success. For me, there are three key elements from which I start working: ‘Who is the customer?’; ‘What is the need of our customer?’; and ‘What do we provide and how do we sell it to our customer?’. We are a customer-driven company.” How does employee-centric entrepreneurial thinking and action work at Haufe? “Our DNA at Haufe Group is all about being a people’s business. We want to be a networked organisation, in which all employees jointly are driving our business, without being limited by hierarchy and/ or silo thinking”. To further develop this “we encourage our employees to transform ideas with problem-solving solutions or disruptive approaches into real solutions. In my leadership role, it is my understanding to encourage, motivate and enable my team members to take their ideas and go out to find partners for creating small cross-functional teams, called ‘cells’ who start working on the ideas and solutions.”

Learning and sharing Bernd Sengpiehl, who is responsible for over 300 employees from both

the software development team (with development centres in Germany, Romania and Spain) as well as the global IT Department, is convinced that having both responsibilities is adding great value for the entire organisation. “In software development, an agile approach using Scrum etc. is common practice and enables continuous integration and deployment of new software functionality to meet customer and business expectations. We are adding and testing new code to our software products on a daily basis, because that’s what the business and our customers are expecting.” Using these approaches in the IT department enables rapid knowledge transfer and helps to execute the centralised global IT strategy in a distributed delivery model, where IT resources are deployed based on

‘Still many CIOs don’t understand the needs of their business.’ their skill set and not on their location. And by mixing team members from both parts of his organisation, this learning and sharing environment helps tremendously to adapt the IT back-end systems of Haufe Group to make new ideas work. “In our software development team we strongly benefit from a multispeed and multi-diverse environment. Our software team in Spain only

started a year ago and our team in Romania has only been in operation for six years, with young ambitious employees in both centres. In our German location, better versed senior developers are active. One of the great learning experiences was to bring together diverse members from all three development centres (and cultures) and let them work together. Silo thinking disappeared and everybody involved is enjoying this approach, which helps to improve productivity significantly. “Our annual highlight is our Haufe Group Hackathon in autumn, where we ask our developers to jointly develop prototypes for business ideas in three days!”.

What keeps me awake While great things are already happening, is there something to be concerned about? Bernd Sengpiehl answers this with a quote: “Digital transformation is like a superb dinner. The current state however is nothing more than an amuse-gueule - a ‘greeting from the kitchen’ - and the starters haven’t been served yet. We are only at the beginning of this big journey to digitisation. What keeps me awake at night are the huge tasks that lie ahead of us. We have prepared the field, the semen has been planted, but now comes the time to generate value for the business and hence for our customers.”

Haufe Group, from specialist publisher to digital pioneer “We are a digital media group”. This is how Markus Reithwiesner, CEO of the Haufe Group, sums up a comprehensive change process and illustrates one of the few success stories in the media and publishing sector of the past decade. The Haufe Group used to be known as a specialist publisher with a great reputation for loose-leaf publications, but now the family-owned enterprise has transformed itself into a successful provider of digital workplace and business solutions. Today, the Haufe Group generates 95% of its sales from digital products, such as, for example, online services for HR managers, accounting apps for the self-employed, and Internet portals for tax experts. Annual revenue today is €343 million and the total number of employees has grown to 1,880.

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The IT and the business have to develop better understanding and communication.

Building cooperation with business How can we define the role of the business partner and build a positive image of the IT department in a well-functioning organisation? simple, how can IT have a problem with it?”. Two years ago, a survey concerning the perception of the IT department by business units was carried out. The rating was 3.5 on a 5-point scale. That result fell far short of Dorota Poniatowska-Mańczak’s ambitions. Thus, it was necessary to take action. An external company helped to analyse the situation and take measures to reorganise the unit which linked IT with business. The flow of change management and project portfolio management was redirected to the IT department.

Dorota Poniatowska-Mańczak

Only a few years ago the IT department in Credit Agricole was separated from the business department, especially in the area of design and change management. The problem did not only lie within communication, but also in perception: sometimes IT was regarded mainly as a cost factor. When implementing changes, it was commonplace to hear opinions like: “This is quite

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‘Sometimes IT was perceived mainly as a cost factor.’ A new function was necessary - an IT advocate in the business department and a business advocate in the IT department. Three positions of this kind were created, for all business lines. The positions are held by persons who have experience in business analysis and project management and who can communicate with business units using the business

language. They must also have the ability to persuade and exercise influence. They report to the director of the IT Strategy Architecture and Governance department. Their task is to participate in initiating changes and to analyse the impact of business strategy on IT functioning and vice versa. The business and IT departments must communicate efficiently and be kept up to date on the ongoing changes. It is also essential to identify vulnerabilities which are escalated: mainly these are so-called grey zones or nobody’s zones. The reorganisation has brought about excellent results. The IT and business department managers appreciate the added value of the new positions. Both departments are also starting to develop better understanding and communication concerning the direction of changes in specific areas of business and IT architecture. It provides a cross-cutting view on the organisation and more efficient management of the changes portfolio at strategic, tactical and operational level. This article was written by Dorota Poniatowska-Mańczak, CIO at Credit Agricole Bank Polska SA.


Overcoming the lack of skills to drive digital transformation.

The CIO in fear The CIO should be in fear of whether her/ his organisation isn’t or hasn’t been in a state of chaos and disruption. If it has been or is at this moment, the organisation is on the right track for the future. If not, the CIO’s career is in danger (the less serious case) and/ or the company´s future is in serious trouble (the worst case). In Denmark, many CIOs are being dismissed from large-scale organisations. They have a long career track in IT but lack the skills to drive the IT organisation and work together with the management team and the rest of the organisation on digital transformation. The ones who don’t understand the speed of digitisation and the different set of required skills are in great danger in their career path. The CIO now and in the future has responsibilities as the Chief Digital Officer - the CDO. This can not be undertaken without disruption of the IT department and its employees. When the business units realise what the digital future can do for them and their marked position, they will want to speed onto the digital track. If the CIO is not a part of this at the beginning, she/he will be left behind or - if lucky - be the CIO in charge of the digital technical unit. If that is what the CIO wants it’s great but if not it’s a career dumping and the

CIO will have great difficulties to get on the right track again. IT is so important for the business that no business can do without an IT department, which means that the barrier between IT and business is gone, and IT is a fully fledged business department now. A large-scale company where decisions are taken without the CIO at the top management table, will experience great trouble in its transformation to the digital future. That is because every business process will be digital and the CIO will be the guarantor of quality, efficiency and development. Companies in the digital future will be fully digital internally and to the customer. This means that you and your staff must be able to communicate to the management and business units that sometimes the more simple the solution for the customer’s wishes, the more complex it may be to develop.

CIO of the future The vision a CIO of the future must focus on, is: to be in control over the connection (e.g. getting different business units connected in their new digital communication), investment, time to market and legacy; to connect the old and new IT and make them run at the right speed; and in general, to have an overview of the processes and systems that must function together. I have followed six steps in my own personal and career development. These steps from being a classical IT

manager to becoming a modern CIO in top management are: -- Step 1: Prove that you are in control, in your area of responsibility: control of staff management, budgets, solutions delivery, and - not least - control of the operation; -- Step 2: Learn to understand the tribal language spoken in the management hall; -- Step 3: Learn to communicate IT complexity in a language management understands; -- Step 4: Be proactive, curious and outreaching. Create confidentiality with department managers and members of the executive management. Seek them at their office because face-to-face is 100 times more effective than e-mails for creating alliances and better relationships; -- Step 5: Show that you can be in the ’helicopter’, analysing different issues. Silo thinking does not show a sense of business and an understanding of the whole; -- Step 6: invite to the communication with business people and be actively interested in the development of the business. This article was written by Thomas Grane, CIO of Matas, the biggest cosmetic, health and drugstore retail chain and webshop in Denmark.

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The CIO should lead the digital transformation by optimising the IT performance.

Improving IT performance Today’s IT leaders are daily confronted with radical changes in their technology context, the available computing resources, the increasing complexity in cost and service management, and the integration levels of existing architectures. Still they are under constant pressure to demonstrate the success of the IT function within their organisations as a catalyst for digital transformation.

In this scenario, the quality of service management inherent to the IT function becomes increasingly critical for the business, transforming the modern IT leader into a true manager, rather than a pure technologist, being present on and a key player in the board of any large corporation.

Three key factors ‘IT performance’ is the combination of three key factors in IT management: Economy, Efficiency and Effectiveness, as illustrated below:

EFFECTIVENESS

EFFICIENCY

The optimisation and balancing of these three factors will increase the value for money and IT performance within an organisation, making it modern and competitive. IT Effectiveness essentially represents the suitability of technologies for business processes and ultimately the

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IT Efficiency focuses on analysing the utilisation and productivity of IT resources, whether human, technical or financial (i.e., doing more with less). IT Economy focuses on the issue of cost management of information technologies, focusing on financial performance KPIs in OPEX and CAPEX management (cost reduction to create room for investment). These three factors tend to pull in opposite directions. The balance and optimisation of these three are becoming one of today’s most real challenges for the CIO.

IT

ECONOMY

suitability of these same technologies in terms of applications and business support systems, from a multichannel perspective. This factor focuses on the direct added value that technologies bring to business.

Focusing only on the economic component, or cost reduction, tends to have an adverse effect on the quality and levels of service provided (Effectiveness). On the other hand, blind focus on the efficiency component will tend to cause damage in the component of operational costs (Economy). For example, improving the productivity of the development department by introducing DevOps logics or agile methods can increase the need for computing resources in a drastic way. Finally, a single focus


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on the effectiveness or improvement of service quality will tend to lead to a decrease in productivity (Efficiency), e.g. by the rigorous use of methodologies for developing or implementing complex indicator systems. Ideally, organisations should seek a balance between these three key factors. In practice, and according to the organisations’ maturity, IT managers tend to look at the issue of improving the IT function performance with different levels of priority. For some the demonstration of high productivity (Efficiency) is the key; for others, however, the quality of the products and services provided is the most critical (Effectiveness); for the rest, the reduction of costs is the determining factor (Economy). These conflicts of ideas are similar to those felt by managers of complex projects as they attempt to obtain a balance between the execution of the work within the plan and budget and the quality of the specifications for the final product. In some cases the conclusion of a project within the estimated time frame is the primary concern, while in other cases ending

within the planned budget or delivering a high-quality final product are the key concerns.

Five key vectors A diagnostic analysis of the IT function performance typically involves a comparison with benchmarking data from the sector and from functional and technical specialists, covering all areas of the IT function. This diagnosis should reflect the degree of maturity of information systems, analysing the five key vectors that it comprises: -- Strategy -- Operations -- People -- Systems -- Technology The Strategy component should analyse the positioning and alignment between IT strategy and the organisation’s business strategy, identifying IT policies and evaluating the IT plans and budgets. The Operations side should focus on two distinct areas. On the one hand, it should focus on the analysis of the

‘Optimisation of the IT structure and function enables the organisation to focus on its core business.’

functions, responsibilities and organisation of IT, as well as on the provision of IT services. On the other hand, a study should be carried out on the development components, including operations and quality control and an evaluation of levels and policies of security and data management. Turning to the People component, the emphasis should be placed on the management of the IT function and in particular on the available technical skills, as well as on the capacity of regeneration and on the suitability of resources, in order to ensure sufficient capacity given the increasingly short cycles of technological evolution. The Systems theme should focus on the analysis of applications and systems, their suitability for business needs and the management information produced. Finally, the Technology axis analyses the entire infrastructure, communications and architecture component, which defines the ‘technological direction’ of the IT organisation. Therefore it is obvious that the IT structure and function within an organisation have to be optimised and increasingly balanced, enabling the organisation to focus on its core business. IT systems are increasingly more strategic for organisations, influencing their business direction, contributing to digital transformation and enabling market differentiation based on service and innovation... and the CIO should assume the leadership of this transformation, managing IT performance and its contribution to success. This article was written by Alexandre Fonseca, Chief Technology Officer at Portugal Telecom and Executive Manager at Altice Labs.

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CIONET Magazine November 2017  
CIONET Magazine November 2017  

Realize your ambition as a CIO+. As a CIO, you are facing a tremendous amount of challenges, from keeping legacy systems running with a cons...