The Customer-activated Enterprise

IBM Institute for Business ValueIBM Institute for Business ValueIBM Institute for Business Value

IBM Institute for Business Value

CEOs

6,300

CEOs

6,300CIOs

7,000

CIOs

7,000CMOs

2,200

CMOs

2,200CSCOs

600

CSCOs

600CHROs

1,500

CHROs

1,500CFOs

4,500

CFOs

4,500

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


North America

605North America

605

637South America

Western Europe

1,349Western Europe

1,349Central and Eastern Europe

304Central and Eastern Europe

304

182Middle East and Africa

475Asia Pacific

631Japan

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


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

2006 2008 2010 2012 2013

Technology factors

Technology factors

Market factors

Macro-economic factors

People skills

Socio-economic factors

Globalization

Regulatoryconcerns

Environmental issues

2004

CEO Studies 2004–2013

Geopoliticalfactors


In the most recent Interbrand study of most valuable brands 6 were based on information technology

10 most valuable brands in the world


In the most recent Interbrand study of most valuable brands 6 were based on information technology

10 most valuable brands in the world


Three characteristics of outperformers

1. Open up to customer influence

2. Pioneer digital-physical innovation

3. Craft engaging customer experiences




2. Pioneer digital-physical

innovation

3. Craft engaging customer

experiences


Connect with your

customer


” As customers gain more power over the business via social media, their expectations keep rising and their tolerance keeps decreasing.

CIO, Retail, Turkey


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


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







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%


Developing a fully integrated digital-physical strategy reaps rewards

Fully integrated digital - physical strategy

26%more

31%

Underperformers

39%

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%

] 64%more


35%

Today

76%

3–5 Years

Most CxOs recognize that they don’tunderstand their customers well today, yet anticipate greatly improving going forward

High level of customer understanding

more117%76%

35%


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


In the coming months, we will further exploreeach 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 CIONovember 2013

CFO and CMOJanuary 2014

CHRO and CSCOFebruary 2014
