Gartner Says Digital
Disruptors Are Impacting All Industries; Digital KPIs Are Crucial to Measuring
Success
Disruptors Are Impacting All Industries; Digital KPIs Are Crucial to Measuring
Success
SINGAPORE, October
3, 2017 — Digital
disruptors are emerging in all industries, and the need for CIOs to embrace
digital transformation is urgent, according to Gartner, Inc. In fact, once
digital revenue for a sector hits 20 percent of total revenue, digital
transformation can’t be stopped. Digital disruption has been seen in industries
such as in books, clothing, and it’s beginning in other industries such as
traditional grocery markets.
3, 2017 — Digital
disruptors are emerging in all industries, and the need for CIOs to embrace
digital transformation is urgent, according to Gartner, Inc. In fact, once
digital revenue for a sector hits 20 percent of total revenue, digital
transformation can’t be stopped. Digital disruption has been seen in industries
such as in books, clothing, and it’s beginning in other industries such as
traditional grocery markets.
Peter Sondergaard, executive vice president
and global head of Research, explained today to an audience of more than 7,500
CIOs and IT leaders at Gartner Symposium/ITxpo that
digital disruptors are doing two things: finding new opportunities, and
attacking the weakness of incumbents.
and global head of Research, explained today to an audience of more than 7,500
CIOs and IT leaders at Gartner Symposium/ITxpo that
digital disruptors are doing two things: finding new opportunities, and
attacking the weakness of incumbents.
“Digital disruptors serve unmet
customer demand. They find ways to use excess capacity in the supply chain,
exploit new platforms for awareness and marketing, and they also capitalize on
new distribution channels,” Mr. Sondergaard said. “Digital also exposes the
weaknesses of incumbents.”
customer demand. They find ways to use excess capacity in the supply chain,
exploit new platforms for awareness and marketing, and they also capitalize on
new distribution channels,” Mr. Sondergaard said. “Digital also exposes the
weaknesses of incumbents.”
Measure Success with Digital KPIs
However, Mr.
Sondergaard said the incumbents are not sitting still. Many large, established
companies are trying to rise above the competition. To better understand best
in class practices, it’s important to develop enterprise-wide digital key
performance indicators (KPIs).
Sondergaard said the incumbents are not sitting still. Many large, established
companies are trying to rise above the competition. To better understand best
in class practices, it’s important to develop enterprise-wide digital key
performance indicators (KPIs).
“Digital KPIs will
become your enterprise compass, built into the performance objectives of every
leader in the organization. These digital KPIs must measure leading, not
lagging, indicators,” Mr. Sondergaard said. “The large ecosystem players
measure themselves by the number of registered partners in their ecosystem. You
might measure how many ecosystems you participate in, and the conversion rates
in each. Digital allows for deeper, outcome-driven measures, and they apply to
all industries.”
become your enterprise compass, built into the performance objectives of every
leader in the organization. These digital KPIs must measure leading, not
lagging, indicators,” Mr. Sondergaard said. “The large ecosystem players
measure themselves by the number of registered partners in their ecosystem. You
might measure how many ecosystems you participate in, and the conversion rates
in each. Digital allows for deeper, outcome-driven measures, and they apply to
all industries.”
Get Digital to Stay
Competitive
Competitive
Gartner data shows
that two-thirds of all business leaders believe that their companies must pick
up the pace of digitalization to remain competitive. The new breed of CEO
believes their companies must use technology to gain a competitive advantage.
that two-thirds of all business leaders believe that their companies must pick
up the pace of digitalization to remain competitive. The new breed of CEO
believes their companies must use technology to gain a competitive advantage.
“That puts CIOs in the
spotlight. You play a part in the digital transformation,” Mr. Sondergaard
said. “But it does not mean the exact same thing to every CIO. To meet the
digital challenge, you must understand both what will be expected of you, and
what you truly aspire to be.”
spotlight. You play a part in the digital transformation,” Mr. Sondergaard
said. “But it does not mean the exact same thing to every CIO. To meet the
digital challenge, you must understand both what will be expected of you, and
what you truly aspire to be.”
Three Situational
Roles for the CIO
Roles for the CIO
Within the enterprise,
on any given day, and with any given partner, the leadership the CIO provides
may vary. There are three situational roles for the CIO that include: a partner
CIO; a builder CIO; or a pioneer CIO.
on any given day, and with any given partner, the leadership the CIO provides
may vary. There are three situational roles for the CIO that include: a partner
CIO; a builder CIO; or a pioneer CIO.
· The IT Partner CIO is expected to operate in a more
transactional way, with a focus on managing services, core IT, value for money,
while also preparing for digital.
transactional way, with a focus on managing services, core IT, value for money,
while also preparing for digital.
· The Digital Builder CIO is designing and enabling new products and
services, and working with others across the enterprise.
services, and working with others across the enterprise.
· The Digital Pioneer CIO is acting an entrepreneur, leveraging
technologies to build new capabilities, new business models, and new revenue
streams to achieve digital value and scale.
technologies to build new capabilities, new business models, and new revenue
streams to achieve digital value and scale.
“The digital value may
be either optimization – just efficiency – or full transformation in the form
of growth. It is best used to invent something entirely new,” Mr. Sondergaard
said. “This is critical because if your organization is not creating new
digital business models, or new ways to engage constituents or customers, you
are falling behind.”
be either optimization – just efficiency – or full transformation in the form
of growth. It is best used to invent something entirely new,” Mr. Sondergaard
said. “This is critical because if your organization is not creating new
digital business models, or new ways to engage constituents or customers, you
are falling behind.”
Mr. Sondergaard
pointed out that scale does not merely mean getting bigger. The largest
organizations are not the only ones that will win. In the emerging world of
interconnected platforms and ecosystems, smaller organizations can very rapidly
compete with the largest.
pointed out that scale does not merely mean getting bigger. The largest
organizations are not the only ones that will win. In the emerging world of
interconnected platforms and ecosystems, smaller organizations can very rapidly
compete with the largest.
Having the Talent to
Succeed
Succeed
Looking ahead to 2018
and beyond, Gartner anticipates three high demand skills:
and beyond, Gartner anticipates three high demand skills:
· Artificial Intelligence (AI)
· Digital Security
· Internet of Things (IoT)
“We believe that AI
will be critical to solving both digital security and IoT challenges,” Mr.
Sondergaard said. “It will be an essential defense, creating a continuously
adaptive risk and trust response. So, prioritize your investment in AI,
beginning at the top with AI capable leaders.”
will be critical to solving both digital security and IoT challenges,” Mr.
Sondergaard said. “It will be an essential defense, creating a continuously
adaptive risk and trust response. So, prioritize your investment in AI,
beginning at the top with AI capable leaders.”
Many enterprises will
not be able to hire the people necessary in AI and security to drive digital
transformation. There is a shortage of qualified candidates in these fields.
CIOs will need to partner with their human resources organization to find a solution,
and that will include leveraging AI.
not be able to hire the people necessary in AI and security to drive digital
transformation. There is a shortage of qualified candidates in these fields.
CIOs will need to partner with their human resources organization to find a solution,
and that will include leveraging AI.
“CEOs who are making a
priority of digital are challenging their Chief Human Resources Officers with
creating an appealing digital workplace environment that will attract and
retain the best people,” Mr. Sondergaard said. “The solution for CIOs and their
HR partners is AI. About 10 percent of CIOs are now using AI in the recruitment
and talent management process. It will help you find people, and it will help
you develop your people. It allows you to combine the best capabilities of
humans with the best capabilities of machine learning systems.”
priority of digital are challenging their Chief Human Resources Officers with
creating an appealing digital workplace environment that will attract and
retain the best people,” Mr. Sondergaard said. “The solution for CIOs and their
HR partners is AI. About 10 percent of CIOs are now using AI in the recruitment
and talent management process. It will help you find people, and it will help
you develop your people. It allows you to combine the best capabilities of
humans with the best capabilities of machine learning systems.”
About Gartner
Symposium/ITxpo
Symposium/ITxpo
Gartner Symposium/ITxpo is the world’s most important
gathering of CIOs and senior IT leaders, uniting a global community of CIOs
with the tools and strategies to help them lead the next generation of IT and
achieve business outcomes. More than 23,000 CIOs, senior business and IT
leaders worldwide will gather for the insights they need to ensure that their
IT initiatives are key contributors to, and drivers of, their enterprise’s
success.
gathering of CIOs and senior IT leaders, uniting a global community of CIOs
with the tools and strategies to help them lead the next generation of IT and
achieve business outcomes. More than 23,000 CIOs, senior business and IT
leaders worldwide will gather for the insights they need to ensure that their
IT initiatives are key contributors to, and drivers of, their enterprise’s
success.
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About Gartner
Gartner, Inc. (NYSE:
IT) is the world’s leading research and advisory company. The company helps
business leaders across all major functions in every industry and enterprise
size with the objective insights they need to make the right decisions.
Gartner’s comprehensive suite of services delivers strategic advice and proven
best practices to help clients succeed in their mission-critical priorities.
Gartner is headquartered in Stamford, Connecticut, USA, and has more than
13,000 associates serving clients in 11,000 enterprises in 100 countries. For
more information, visit www.gartner.com.
IT) is the world’s leading research and advisory company. The company helps
business leaders across all major functions in every industry and enterprise
size with the objective insights they need to make the right decisions.
Gartner’s comprehensive suite of services delivers strategic advice and proven
best practices to help clients succeed in their mission-critical priorities.
Gartner is headquartered in Stamford, Connecticut, USA, and has more than
13,000 associates serving clients in 11,000 enterprises in 100 countries. For
more information, visit www.gartner.com.
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