CIO’s role in business model innovation
Categories: strategic IT
So I think this is an extraordinarily interesting time for CIO’s. CIO’s I do believe understand this. CIO’s have a remarkable opportunity in front of them to really work with a business to understand this and I think the clever CIO’s will get this right in the coming years and really have a seat at the table they have probably never had before.
Part of it is understanding the dynamics of the technology itself but from our view that is only part of the equation – actually they have got to understand the business model innovation, they have got to understand the myriad of combinations that people are applying towards their core business and that is a little trickier because I think they read the business press and they will see a start-up or they will see a large Silicon Valley company doing something but they actually lack some context around where they are really headed. If I went back to the Google example, here they have the Android franchise, next to that they run some of the world’s largest data centres, next to that they have extraordinary mapping capability, next to that they have now bought into several robotics companies – I think eight at last count they have bought in the last year and they have autonomous cars. If I string all this together I think they have – and the last thing they have is drones – now if I string all that together I think if I was in the package delivery business, if I was a FedEx or UPS I would say well wait a minute, does Google have a set of capabilities that can make my business very, they can upend my business effectively? Google isn’t a search company. Think of Google as the world’s largest computer science department. What they are doing is they are applying algorithms on industries, they are data scientists and they are trying to figure out where they can extract value that the incumbents haven’t extracted.