Monday, 15 July 2013

The Emergence of the Chief Digital Officer

IT Everywhere

African Organisations Face a Stark Choice

Organisations in African can remain cautious and conservative in technology adoption, and lose out on the transformation currently characterising the rapidly transforming economies in Asia and Latin America or move with the times. Today businesses and careers – particularly those of CIOs are shaped by how well professionals are able to ride the exploding wave of data.


The Consumerisation of Information Technology
Due to the increasing consumerisation of IT, with users (both internal and external) becoming more technologically astute they demand services in a way and on a platform they want, rather than being dictated to. CIOs and ICT leaders play a critical role in leading organisations towards becoming digital enterprises.


The Chief Digital Officer
Companies are starting to hire a new breed of digital leader, typically called a Chief Digital Officer, heralding a change in the future role of the CIO and IT department
The State of Technology in Business – Two Faces of Information Technology
Dave Aron of Gartner states IT has two faces. “One is a platform on which most and soon all business processes run. Even the smallest business these days has a paperless workflow, banks and receives payments electronically and collaborates with suppliers and other business partners via various electronic channels. The other face relates to the more recent notion of ‘IT everywhere’. The way in which IT has permeated every aspect of life”.


Mobile Technologies Have Created Critical Mass
The ‘IT everywhere’ trend began with the internet, but it was the massive take-up of mobile technologies that created critical mass. Mobile IT is the trend currently shaping business because it is changing the way customers behave and expect to be treated by their service providers, and it is also opening up entirely novel business opportunities.
According to Gartner’s 2013 CIO Agenda 71% of CIOs believe the IT department will have been replaced by a different construct by 2020

Creating a Consistent and Rewarding Customer Experience
FNB’s Digital Marketing and Media Head Lana Strydom states “the Chief Digital Officer’s position has much more to do with creating a consistent and rewarding customer experience than with business enablement. CDOs could end up being more narrowly focussed on marketing and so reporting to the Chief Marketing Officer or e-Commerce instead of reporting to the CEO”.

A Driver of Innovation and Operational Excellence
These are early days here in South Africa and CIOs still have time to assess their options. But they should do so sooner rather than later because things are moving, and inertia has its own risks. Forward-thinking CIOs have been working hard to reposition technology and thus themselves at a more strategic level for years. It’s an approach that has worked in many companies, where technology has become a driver of innovation as well as operational excellence.


Headhunting the Chief Digital Officer
Madge Gibson, principal at head hunters Odgers Berndtson, states “companies are definitely starting to ask for people to fill the digital leadership role for the whole company or group. Most demand is coming from the retail and financial services sectors, with fast-moving consumer goods also beginning to show interest”.


Profile of the Chief Digital Officer
The Chief Digital Officer needs to be a futurist, with strategic and leadership ability as well as having a flair for technology and marketing.

Finding this type of person is hard and businesses tend to look outside of their organisation to fill the role. Head hunters Odgers Berndtson have been looking internationally in places like Silicon Valley. Tracy Dawson a partner at Jack Hammer Executive warns the new CDO role is not really about the nitty-gritty of network architecture and the like as all this can be outsourced!

Going Forward – Strategy for South African Businesses

IT Everywhere - Social Mobile, Analytics and Cloud
Discovery Health is specifically focused on mobile apps and digital channels that will add significant value to its members, doctors and partners – Kris Tokarzewski – CIO

Business Connexion foresees the growth of what they term SMAC (Social Mobile, Analytics and Cloud) and their focus will be on achieving the right blend and integration for this, while keeping things cost-effective for the business – Andy Brauer – CIO

Dimension Data feels that mobility and cloud computing will continue to have significant impact on enterprises in the near term future. This will offer more flexible ways of working, both for employees and for organizations – Laurent Leclercq – CIO

Advertising is preoccupied with being digital and that changes the game radically for IT – David Breytenbach, Ogilvy South Africa – Group IT Manager

Primedia has a large footprint into Africa so have been focusing on cloud-centric solutions. Secondary to this is the mobile revolution and how people are accessing information differently – Morne van Heerden – CIO
Edcon feels there are many exciting changes in the IT landscape at present, but highlights social media and the power of mobile devices as being key to changing the way organizations, including Edcon will interact with people - Henri Slabbert – CIO

South Africa’s crown jewel of leisure and tourism is entirely relationship based which makes on-going investment in the clever use of social media for marketing a priority with an ongoing emphasis on the adoption of dynamic mobile technologies.
The future looks bright for both the consumer and the Chief Digital Officer who has a knack for, and a desire to create a consistent and rewarding customer experience. A win-win situation for all!