1. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."Usage Guidelines for Gartner ServicesGuiding Principles on Independence and Objectivity Steve HighEd Barrows steve.high@gartner.comed.barrows@gartner.com @StephenKHigh817-203-2410 210-317-7123 Taming the Digital Dragon The 2014 CIO Agenda

2. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Leading in a Digital World … So What's Changed? © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. #GartnerSYM

3. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Leading in a Digital World Digital growth. It's no longer enough for IT to improve operational efficiency; instead, technology is now expected to fuel a new wave of business growth and mission effectiveness. Innovation and leadership. CIOs must develop multilevel and multilateral teams to engage with the business, systemically driving innovation in the front-office. Operational and organizational excellence. Now more than ever before, CIOs need a strong foundation in back-office IT. What's needed is the kind of operational and organizational excellence that supports long-term enterprise innovation and growth. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

4. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Industrial Economy Where ignorance is the enemy and economic uncertainty is an opportunity… not an excuse. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

5. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. We are here We Are Entering a 3 rd Era of Enterprise IT Focus TechnologyProcessesBusiness Models Capabilities Programming, system management IT management, service management Digital leadership Engagement Isolated, disengaged internally and externally Treat colleagues as customers, unengaged with external customers Treat colleagues as partners, engage external customers Outputs & Outcomes Sporadic automation and innovation, frequent issues Services & solutions, efficiency & effectiveness Digital business innovation, new types of value IT CraftsmanshipIT Industrialization Digitalization 6

6. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Time Travel… to the Year 2020 2020 -Cloud, Social, Information and Mobile -Information is the oil of the 21 st century; Analytics is the combustion engine. -4.4 million IT jobs will be created globally to support big data -Cloud should be your first approach to computing -Design your business around mobile -Incorporate Social software throughout enterprise -Every budget is an IT budget LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

7. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Time Travel… to the Year 2020 2020 -Architectures of the last 20 years: obsolete -½ of all non-PC devices used in business will be purchased by employees -Cloud security will triple -CMO will have a bigger IT budget than IT -Every business leader is a digital leader -Every person is becoming an IT company LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

8. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

9. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

10. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

11. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

12. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. airBnB

13. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. We Need a Three-Part Response to Tame the Digital Dragon Renovate the core of IT. Create powerful digital leadership. Build bimodal capability. Clear digital roles Savvy digital executives Digital vision & digital legacy Cloud/Web-scale infrastructure Information Talent Sourcing Agile development Multidisciplinary teams Innovative partnerships New risk/speed trade-offs Digitalization IT Industrialization 7

14. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Break out Group # 1 How would you characterize the digital savvy of your CEO / Board / Executive Team? Have there been discussions at the Executive level about the nature of digital opportunities and challenges, and the overall digital leadership? What steps can the IT Leadership team take to educate other executives about these digital opportunities and challenges? 13

15. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. The Chief Digital Officer Role Is on the Rise Asia/Pac: 11% No. Am.: 5% EMEA: 6% Lat. Am.: 7% Industry%CDOs Media 21% Communications 13% Services 11% Banking 10% Insurance 9% Retail 9% Healthcare Providers 5% Government 5% Manufacturing & Natural Resources 5% Wholesale Trade 3% Education 3% Transportation 4% Utilities 1% "If the CEO asks 'Who is in charge of digital?' and gets multiple responses, then there is no digital leadership." Baron Concors, CIO of Yum Restaurants International, former CIO and CDO of Pizza Hut Gartner predicts a tripling of the CDO role by 2015. "For the CIO, there is a strong opportunity, and also a responsibility, to be part of this new digital game. However the organizational model plays out, there will be a strong push for the digital future." Gianni Leone, CIO and CDO, Miroglio Group Mythbuster: The CDO role is not limited to media or information-intensive industries. 9

16. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. "I have to play Dr. Jekyll and Mr. Hyde as I move between the two roles, making sure I apply the correct set of rules depending on the hat I'm wearing — traditional IT versus leading digital trans- formation." Gianni Leone, CIO and CDO, Miroglio Group The Scope of the CDO's Role Is Broadening, Too CDO CEOCMOCIO Other CDO's Reporting Line 42%22%16%20% CDO's Team CDO is sole advisor Small team of analysts Resources to pilot CDO Substantial devt. Develop and run 9%9% 23% 15% 27% 26% CDO CDO's Background Bus. strategy IT Marketing Combination Other Don't know 15% 19% 20% 36% 7%7% 3%3% CDO-CIO Integration Neutral/ Unclear 35% Clear 65% Mythbuster: The CDO is not, in general, a lone advisor. Most CDOs have a team. 10

17. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Build Enterprise Digital Savvy From the C-Suite Down "[Our leadership] have set it as a goal and objective for everyone in the company to become digitally enabled." Bill Ruh, vice president of Global Software Center, GE 13

18. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Digital Industrial Economy Business Processes Business Model Changes Business Moments LEADING IN A DIGITAL WORLD DIGITAL GROWTHINNOVATIONORGANIZATIONAL EXCELLENCE

19. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Is Your Organization Selling Experiences, or Is It Still Thinking in Terms of Products? The Experience Economy Commodity 1¢ to 2¢ a cup Goods 5¢ to 25¢ a cup Experience $2 to $5 a cup

20. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. 1.Smart Phone detects sudden deceleration. 2. Smart phone interrogates passenger clothing for vital signs. 3. Smart phone sends information to medical emergency first responders and opens up communications lines for survivors.. 4. Smart phone interrogates vehicle systems for damage report. 5. Damage report sent to fire, police, towing, and insurance companies. 6. Estimates for repairs sent to smart phone from different companies. Negotiations ensue to get best price and delivery. 7. Meanwhile, smartphone interrogates nearby video cameras to collect digital evidence of the car crash as it occurred. 8. Smart phone notifies next of kin via text messages and Facebook. 9. Smart phone sends information portfolio to law firms for assessment.

21. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Mobile, Social, Cloud… in a matter of weeks The Experience Economy

22. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Break out Group # 2 Many IT organizations do some form of Bimodal IT today. How have you been successful with a fast mode, and how can you build on that to become more agile and more innovative? How have you created more time and space to Grow / Transform projects while minimizing effort spent on Run projects? Are there projects or initiatives that today seem-- -stuck? Would they benefit from a different way of thinking about teamwork, culture, risk and delivery? 21