2. Flip Measurements from Visible to Valuable
Digital business success requires building platforms that may not immediately generate ROI but can deal with rapid change and uncertainty, and manage value dynamically. Additionally, CIOs should categorize investments as fearful, to keep the business running; fact based, to extend within the organization’s business model; and faith-based with management capable of dealing with them. Value is not created by reducing the cost of IT per dollar of revenue, but by increasing revenue per dollar of IT cost, which equals IT productivity.
Volvo’s Bendrik understands the long-term digital value opportunities. He has formed an innovation team to “drive IT in Volvo cars” and inspires his team. “Up until a few years ago,” he said, “the attitude was, ‘if you don’t do anything, you can’t do anything wrong.’ Now, he encourages the entire IT team to step up and contribute to innovation.
3. Flip from Control to Visionary Leadership
Command-and-control leadership does not suit the digital world. Digital leadership is almost always about vision and inspiration. Education and inspiration are central tasks for CIOs determined to be digital leaders. CIOs recognize this: 75 percent plan to change their leadership style over the next three years, most commonly by amplifying their vision (47 percent) while reducing their command and control (65 percent). At Volvo, CIO Bendrik tries to model customer-centric behavior and reserves time in management meetings to discuss broader megatrends.
In addition to partnering with the most important business stakeholders, and developing a shared understanding of digitalization and what it means to the business, CIOs need to increase the digital savvy of their enterprises. In essence, CIOs and other leaders need to lead a digital cultural revolution across their businesses, possibly their ecosystems.