BMA Chicago: The Customer-Activated Enterprise - IBM C-Suite Study

IBM Institute for Business Value!IBM Institute for Business Value!

IBM Institute for Business Value!

CEOs!6,300!!!

CIOs!7,000!!!

CMOs!2,200!!!

CSCOs!600!!!

CHROs!1,500!!!

CFOs!4,500!!!

The IBM global C-suite Study draws on a decade of research with over 20,000 interviews!


North America!605!!!

637!South!America!

Western Europe!1,349!!!

Central and Eastern Europe!304!!!

182!Middle East !and Africa!

475!Asia Pacific!

631!Japan!

This study covers 4,183 face-to-face conversations with CxOs in 70 countries!


Agenda

How CxOs view the worldHow the C-suite is preparing for the future ─ Open up to customer influence ─ Pioneer digital-physical innovation ─ Craft engaging customer experiencesPulling together!


CEOs consider technology the single most important external force shaping their organization’s future!

2006! 2008! 2010! 2012! 2013!Technology factors!

Market factors!

Macro-economic factors!

People skills!

Socio-economic factors!

Globalization!

Regulatory!concerns !

Environmental issues!

2004!

CEO Studies 2004–2013!

Geopolitical!factors!


All CxOs think technology is one of the top three forces !

CFO! CHRO! CIO! CMO! CSCO!

Market factors!

Macro-economic factors!

People skills!

Socio-economic factors!

Globalization!

Regulatory concerns !

Environmental issues!

CEO!

External forces impacting the !!enterprise (3–5 years)!

Geopolitical factors!

Technology factors!


CxOs predict significant changes in the business landscape!

Business landscape changes in the !!next three to five years!

73%!

68%!

61%!

54%!

52%!

20%!

33%!

25%!

28%!

20%!

Bigger partner network!Social/digital !interaction!Partnering to !increase value!Focus on customers as individuals!Organizational openness!

Neutral!

Smaller partner base!

Face-to-face interaction!

Partnering to increase efficiency!

Focus on customers as segments!

Operational control!

11%!


Agenda

How CxOs view the world How the C-suite is preparing for the future ─ Open up to customer influence ─ Pioneer digital-physical innovation ─ Craft engaging customer experiencesPulling together!


Large extent! Some extent! Limited extent!

54%!Influenced to a large extent!

Customers wield considerable influence on today’s enterprises, compelling CxOs to act and change course!

Customer influence on the !!enterprise!

10%!

36%!54%!


Key influencers on enterprise vision !and strategy!

55%!

44%!

26%!

25%!

23%!

20%!

Board of Directors!Corporate strategy function!

Non-executive senior leadership!

Key external business partners!

Parent company!

CEOs say customers come second only to the C-suite in terms of strategic influence!

53%!

78%!

Customers!

C-Suite!


43%!Today!!

60%!3–5 Years!

more!40%!! 43%!

60%!

CEOs stand ready to involve customers in what is typically considered their domain: developing business strategy!

Customer inclusion in business strategy development!


Outperforming enterprises are more likely to collaborate extensively with their customers!

Greater collaboration with customers translates into greater financial success!

54%!!

more!

39% !Underperformers!!!!

60%!Outperformers!


Agenda

How CxOs view the world How the C-suite is preparing for the future ─ Open up to customer influence─ Pioneer digital-physical innovation ─ Craft engaging customer experiencesPulling together!


Two-thirds of enterprises have a weak digital-physical strategy – or none at all!

Types of digital strategy!

31%!

33%!

36%!

36%!have an integrated

digital-physical strategy!

Integrated digital-physical strategy!

Limited digital strategy!

No digital strategy!


CMOs see a critical need to implement an organization-wide digital strategy!

Digital ambitions – CMOs!

Today! 3-5 Years!

11%!

13%!

Integration of cross-channel touchpoints!

Analytics to capture customer insights!

Social networks to foster collaboration!

Workforce aligned to opportunities!

Digitally enabled supply chain!

13%!

16%!

20%! 78%!

83%!

87%!

73%!

69%!


12%!5%!

83%!

83%!will focus on front office digitization!

In line with CMOs, four-fifths of CIOs aim to digitize their front office to sync with customers more effectively!

IT focus area – digitizing the front office!

Large extent! Some extent! Limited extent!


48%!

70%!

88%!

52%!

Customer interaction channels!

24%!

57%!

45%!

20%!

Face-to-face!

Call centers!

Traditional media!

CxOs intend to interact digitally with customers to a much greater extent in the future!

80%!

Digital!

Today! 3–5 Years!


Challenges to implementing !a digital strategy!

54%!

38%!

37%!

28%!

16%!

20%!

Difficulty measuring investment returns!

Legal and security concerns !

Lack of appropriate technology!

Lack of leadership support!

Concerns about inappropriate use!

Lack of a cohesive social media plan is the biggest barrier to doing more in the digital space!

Competing priorities or initiatives!

Lack of a cohesive social media plan !

63%!

52%!


Agenda

How CxOs view the world How the C-suite is preparing for the future ─ Open up to customer influence─ Pioneer digital-physical innovation─ Craft engaging customer experiencesPulling together!


The more deeply an enterprise understands its customers, the more likely it is to flourish!

High level of customer understanding!

62%!!

more!

29% !Underperformers!!

47%!Outperformers!


Areas of personal involvement!

20%!

eCommerce!Talent management!Supplier, vendor and partner management!

Risk and security!IT systems and operations!

Recognizing the change in customers’ expectations, CxOs are rebalancing their priorities!

Customer experience management!

+5%!

+7%!

+8%!

-5%!

-5%!

-6%!


Change of focus – !Customer Experience Management!

CFO!CHRO!

CIO!CMO!

CSCO!

All CxOs plan to focus more on the customer experience in the future, with CIOs clearly upping their game !

CEO!

Today! 3–5 Years!

41%!

13%!

38%!

46%!

77%!

37%!

34%!

9%!

29%!

28%!

75%!

29%!


CxOs in outperforming enterprises focus more heavily on improving the customer experience!

Focus on improving the customer experience!

29%!!

more!


54%!Outperformers!


Agenda

How CxOs view the world How the C-suite is preparing for the future ─ Open up to customer influence─ Pioneer digital-physical innovation─ Craft engaging customer experiencesPulling together !


To drive performance, CxOs form !an intricate web of relationships!

CFO!

CEO!

CHRO!

CIO!

CMO!

CSCO!


CEOs heading outperforming enterprises see clear proof of the dividends that a united boardroom brings!

Good relations: C-suites that work together!

28%!!

more!


92%!Outperformers!


In the coming months, we will further explore each of the specific C-suite roles!

Addressing the opportunities and challenges facing the enterprise!!Tackling the opportunities and challenges facing their functional area!!Working with their C-suite colleagues!

CxO Point of View Schedule!

CEO and CIO!November 2013!!CFO and CMO!January 2014!!CHRO and CSCO!February 2014!


We invite you to continue the conversation!

For more information about this study and to get the full version of this report, see !www.ibm.com/csuitestudy!

Access interactive content and listen to CxOs in their own words by downloading the IBM IBV app for Android or iPad!

Connect with us


Caroline Steele CMOGE Capital, Rail Services !

Chris HasbrookVP & General ManagerUL, Built Environment!

Tom Yorton CEOSecond City Communications!