to Innovate value IS
a gaMe cHanger
Value comes from seeing what customers need and delivering it.
4. Leverage Technologies
Strategically to Innovate
3. Implement Initiatives to
2. Understand the Business, Focus
on User Experience, and Improve
Business Skills of IT Personnel
1. Deliver Commodity
and Business Services
Strategic IT Organization
is chapter introduces the fourth phase of transforming into a stra-
tegic IT organization—leveraging technologies strategically to inno-
vate value. e chapter begins with the results of two global surveys
that identies the importance of including technology as a key subject
in today’s executive boardroom discussions and then provides current
the strategiC Cio
examples of how technology is used to expand the value network as
well as create new value. e chapter concludes with an overview of
the following three chapters, which are examples of how CIOs are
leveraging technologies to innovate value.
Following is a brief overview of the chapter objective, key mes-
sages, and examples included.
A. CHAPTER OBJECTIVE
1. Provide you with examples of strategic CIOs have navi-
gated through all four of the strategic IT transformation
phases and leverage technology strategically to innovate
2. Provide insights to those of you who are still on a trans-
formation journey but want to understand the strategic
value of leveraging technology in innovative ways.
B. KEY POINTS
1. Leveraging technology to innovate value is a recognized
global trend exploited by world-class companies.
2. A recent McKinsey global survey of over 1000 chief
executive ocers (CEOs), chief information ocers
(CIOs), and other C-level executives supports this trend.
…companies are using digital technology more and more to
engage with customers and reach them through new chan-
nels… and companies are making digital marketing and cus-
tomer engagement a high strategic priority.
3. An MIT Sloan study of 1600 executives on how they
are using digital technologies found that companies
must “adopt new technologies eectively or face com-
Leveraging technology is a stra-
tegic imperative for every boardroom to embrace or else
executives will watch their competitors race ahead in
4. e role of technology in products, services, and processes
has never been more important than it is right now. We are
leveraging teChnology is a game Changer
the cusp of the Internet of Everything (IoE). People will
connect in ways we are just beginning to experience:
a. Wearable technologies enable us to use Google
Glass as if it were a laptop computer. Except it is
b. Data will be processed more intelligently than ever
before. Instead of just capturing data that accessed for
further analysis, predictive analytics will incorporate
sophisticated algorithms that evaluate data and help
us make faster and more intelligent decisions.
c. Processes as we know them today will expand to
incorporate human behavior. Proactively engaging
shoppers is a reality today.
d. e 2014 Mercedes-Benz S-Class uses 60 onboard
computers to control almost every aspect of the vehi-
cle. Mercedes dubs this intelligent drive.
e. 3D printing is changing our lives.
f. Wearable devices are improving our health care.
g. Smart contact lenses help diabetics control their
h. Digital toothbrushes help improve dental health.
i. e list is growing every day.
1. CIO examples of applying technology to innovate value
include the following:
• A group of executives meets to analyze marketing
• A father wants to ship a package to his son at college.
• A young child pleads with her mom to take her to a
store to build a stued animal.
• An elderly man is having diculty adhering to the
doctor’s instructions for taking medication.
• A patient in a hospital or at home care, who is con-
cerned about their health outcome.