20130502 cio persona external research and gaps_may82013

7/27/2019 20130502 CIO Persona External Research and Gaps_May82013

1/31

THE CIO PERSONA:External research and gap analysis


2/31


3/31

KEY INGREDIENTS FOR DEVELOPING A PERSONA

Who they are: (Job role and titles, position on org. chart, tenure, careerpath, demographics, etc.)

Their sources of information and watering holes

What they think of Red Hat and other brands

What their challenges are, and what initiatives they are working on

Their day-to-day activities

How we can successfully identify and differentiate them

How can we reach these individuals (channels, messages and content)

What they are looking for, for themselves, in their businesses, from vendors

How they are different from other potential target segments

Why they are important, today and tomorrow

What their interaction preferences are

How these individuals buy (including details on buying center, their role inbuying process)

How do wewin?

How do wefind them?

Who arethese

individuals?


4/31

FOLLOWING SECONDARY RESEARCH ON CIOs, THERE ARESTILL SEVERAL AREAS THAT WE NEED TO UNDERSTAND

Who they are: (Job role and titles, position on org. chart, tenure, careerpath, demographics, etc.)

Their sources of information and watering holes

What they think of Red Hat and other brands

What their priorities and challenges are Their day-to-day activities

How we can successfully identify and differentiate them

How can we reach these individuals (channels, messages and content)

What they are looking for, for themselves, in their businesses, from vendors

How they are different from other potential target segments Why they are important, today and tomorrow

What their interaction preferences are

How these individuals buy (including details on buying center, their role inbuying process)

How do wewin?

How do wefind them?

Who arethese

individuals?

SECONDARY AREAS FOR FURTHER RESEARCHCRITICAL AREAS FOR FURTHER RESEARCH

Note: In critical areas we generally have little to no highly-relevant external research, in secondary areas we generally have some data.


5/31

WHAT WE HAVE DISCOVERED SO FAR:KEY INFORMATION FOR BUILDING THE

CIO PERSONA


6/31


7/31

BACKGROUND: WHO ARE CIOs AND IT DECISION-MAKERS?

Who are these individuals?

Source: Red Hat Targeted Titles; IDG Enterprise Role and Influence Study 2012; 2013 State of the CIO Survey (CIO); The DNA of the CIO (Ernst &Young)

Job Titles

CIO, CTO, VP of IT and/orEnterprise Architecture.

May also include EVP andSupervisor roles.

Tenure and Salary

Average tenure is 5.8 years,up from 5.3 years in 2012.Salaries rose slightly to an

average of $219,500, up from$218,100 in 2012.

(CIO Magazine)

Position on Org. Chart

39% of top IT executivesreport to the CEO21% report to CFO

~2/3 are members of theirbusiness's management

committee.(CIO Magazine)

Career Path

85% had roots in tech industryMost common paths are from

operations (46%),

administration (34%) andcustomer service (33%)

10% of CIOs aspire to theCEO role

(CIO Magazine)

Demographics

The average CIO is a 43-yearold male. The most common

level of education is a degreein IT (49%). Relatively few holdan MBA degree (10%). (Ernst

& Young)

Job description

The operational basics(running reliable, cost-efficient

IT systems)

Tight security managementTechnology consultancyChange leadership in IT

See following pages for detail

on job role


8/31

THERE MAY BE A DISCONNECT BETWEEN HOW CIOs ANDOTHER C-SUITE MEMBERS VIEW THE CIO ROLE


Source: IDG Enterprise Role and Influence Study 2012; 2013 State of the CIO Survey (CIO)

What the typical C-Suite Expects of the CIO How CIOs describe their role

The operational basics: Running reliable,cost-efficient IT systems

Tight security: Ensuring that IT risks andsecurity are kept carefully under control

Technology consultancy: Providing aninformed, business-centric view of how IT cansupport and enhance the business, both in theshort and long term

Change leadership: Being an effectivepartner in leading change managementprojects

Flexibility: Being able to fit in with the shifting

needs and demands of the business Dont rock the boat: One of the implicit

messages that emerges from the IDGresearch is that the executive team often holdslittle expectation of the CIO. This is a risk, bothfor the CIO's role and for the business.

The majority of CIOs describe a part of theirrole as setting business project goals, butthe majority of their responsibilities are tied toIT budgeting and planning.

CIOs report that they have the followingresponsibilities (CIO Magazine):

Setting IT standards and policies (88%) Setting IT project goals (85%) IT department budget responsibility

(82%) Vendor contract negotiations (78%) Participate in business project steering

committees (72%) Setting business standards and policies

(59%) Setting business project goals (52%)


9/31


10/31

...AND THESE LEADING SOURCES REMAIN CONSISTENTFOR IT EXECUTIVES (CIOs, etc.)

Source: IDG Enterprise Role and Influence Study 2012Note: Study includes both CIOs and other, less senior IT Decision-makers



11/31

...HOWEVER WHEN IT COMES TIME TO MAKE BUYINGDECISIONS, PEERS BECOME MOST IMPORTANT




12/31


Source: Enterprise Software (Piper Jaffray)

CIOs may be biased toward larger software companies, and do not cite Red Hat

among smaller companies of interest

Large company bias Small/Mid-sized vendors of interest

"Right now, I am not working with small to

mid-sized vendors. I do know that there are anumber of vendors that contact me that are

unimpressive in their ability to present their

capabilities and value add in a brief

communication. Everyone wants to set up a

meeting and meet in person. I don't have time

for that if I can't even figure out if their

solution is meaningful to me."

CIO, interviewed by Piper Jaffray

Piper Jaffray asked each CIO to name 2 or 3

standout small/mid-sized software vendorsthat impress them with their technology,vision, and value-add to their organizations:

VMware maintained its #1 position with7.4% of CIOs mentioning it

Workday and ServiceNow were 2nd (5.5%) Other companies of interest were AirWatch

(4.4%) and salesforce.com at (3.7%) Single-mentioned companies include Box,

QlikView, Splunk, Zenprise, Geodesic,Microstrategy, Tableau and Citrix

Red Hat was not mentioned, but one CIO isquotes as saying we only use open sourcewhich may refer to Red Hat technologies

CIOs CITE TIME LIMITATIONS PREVENTING THEM FROMINVESTIGATING SMALLER VENDORS


13/31


CIOs REPORT SEVERAL KEY BUSINESS PRIORITIES,ACCORDING TO SECONDARY SOURCES...

Utilize cloud technology to drive cost and efficiency savings (includingHybrid IT-Cloud technologies, and particularly in response to growingdemands on data, storage and networks)

Build a scalable and highly-capable IT organization that plays a strategic

role in the business

Streamline operations and organizational effectiveness (often throughimproved technology offerings to the business)

Employ more sophisticated analytics and business intelligence to drive

value in the business

Delivermobility and meet BYOD demands while never compromising onsecurity and reliability

Source: 2013 State of the CIO Survey (CIO); The Top 10 Strategic CIO Issues For 2013; The Top 10 Strategic Technology Trends According toGartner; Gartner: Top 10 Key Technology Trends for 2013; Top Four CIO Priorities (HP); CIO Mandates Study (IBM)

Wh th i di id l ?


14/31


Source: 2013 State of the CIO Survey (CIO); Top Four CIO Priorities (HP)

...HOWEVER, SECONDARY SOURCES PROVIDE DIFFERINGPOINTS OF VIEW ON CIOs' MAJOR PRIORITIES

CIOs surveyed for the 2013 State of the CIO Survey selected thefollowing management priorities as critical or high-priority: Improvements to their offerings (82 percent) Increasing expectations from customers (80 percent) Hiring, developing and retaining the best possible staff & human capital

(79 percent) Business processes improvements and increasing IT's capacity and

resources to drive business innovations are also frequently cited ITmanagement priorities in the year ahead (66 percent, each.)

Ricard Fernandez, the head of HP Technology Consulting, identified

the following four priorities as critical: Adopting / migrating to the cloud - main concern is delivering security Mobility (BYOD and Networking) - need to deliver compliance and

security Requirements increase (computing, storage, network, data center) -

alinearity with cost and budget Expanding use of information (social media, BI, analytics, collaboration) -

main concern is security

The differing accounts of CIO priorities suggests that we should validate this research further

SECONDARY AREA FOR FURTHER RESEARCH

Wh th i di id l ?


15/31


Source: 2013 State of the CIO Survey (CIO); The DNA of the CIO (Ernst & Young)

CIOs FACE SEVERAL CHALLENGES IN ACHIEVING THEIRMAJOR PRIORITIES...

Building and solidifying relationships with their nonIT stakeholders

Being seen as a "business peer" to their C-suite colleagues

Becoming a true partner to the business engaged in strategic decision-making

Role andrelationshipchallenges

Resourcechallenges

Solutionchallenges

Delivering more functionality despite contracting budgets

Achieving autonomy when budgets are largely controlled by C-suite peers(e.g. CEO or CFO)

Delivering consistent security and reliability in the new paradigm of cloud

computing, and with the pressures to provide more mobility and cater to abroader range of devices

Wh th i di id l ?


16/31


Source: The DNA of the CIO (Ernst & Young)

...AND CIOs' ROLE AND RELATIONSHIP CHALLENGES ARESOME OF THE MOST DIFFICULT TO OVERCOME

THE PERCEPTION GAP:

Relatively few CIOs have made the leap to becoming a true partner to the business, though many

CIOs aspire to this.

Many CIOs want to change the "support function" perception of the CIO role. Underlying shifts,

like the move to the cloud and the ongoing consumerization of IT provide an opportunity.

However, too few CIOs are currently regarded as true members of the executive management

team. This limits their potential for change. Many CIOs nowadays appear to be C-level in title

only, and this rank is not necessarily reflected in how they are perceived in the leadership

team. Less than one in five hold a seat at the top table, for example. And less than half saythey are deeply involved in strategic decision-making.

- The DNA of the CIO (Ernst & Young)

CIOs may be limited not only be their perception of their role, but by their peers' perceptions also:

Who are these individuals?SECONDARY AREA FOR FURTHER RESEARCH


17/31



THIS PERCEPTION GAP AFFECTS CIOs DAY-TO-DAYACTIVITIES

All CIOs are engaged in the execution aspects of the role, such as dealing with costmanagement and keeping the lights on, and many are involved in enablement from

proactively generating ideas through to acting as an information broker. However, the third

facet of the role: development, is least often pursued by CIOs. From delivering

transformation through to introducing business model innovation, this can be the most

rewarding part of the job, but is only open to those who truly consider the rest of the C-

suite as equal peers.(The DNA of the CIO)

However, CIOs' wish to be engaged in more strategic/development-oriented activities isevident in how they describe their current role vs. aspirational role in 3-5 years:

Current role:

Initiative and performance-focused

Aspirational role:

(3-5 year vision)

Strategy and innovation


Who are these individuals?SECONDARY AREA FOR FURTHER RESEARCH


18/31



CIOs' ACTIVITIES TODAY, VERSUS THEIR FUTUREASPIRATIONS

CURRENT ROLE FUTURE ASPIRATIONAL ROLE

54% said More strategic activities includingdriving business innovation

45% said Developing and refining businessstrategy

41% said Identifying opportunities forcompetitive differentiation

63% said Alignment - aligning IT initiativeswith business goals

54% said Making improvements to IToperations and systems performance

50% said Implementing new systems andarchitecture

45% said Cultivating partnerships between ITand the business

40% said Cost control and expense

management

Activities that CIOs aspire to spend their time on

in 3-5 years (% of CIO respondents)

Activities that CIOs report spending their time on

day-to-day (% of CIO respondents)

This suggests that we should focus on developing materials that enable Marketing andSales to show CIOs how they can reach their aspiration goals, with Red Hat



19/31

HOW DO WE FIND THEM?

How do we find them?CRITICAL AREA FOR FURTHER RESEARCH


20/31

How do we find them?

SUCCESSFULLY IDENTIFYING AND DIFFERENTIATINGTARGET CIOs WILL REQUIRE FURTHER SEGMENTATION

CIO

Roles fordiscussion

MainstreamInnovator

Cost consciousconsumer

Other Persona

Personas

Roles

Identification tools for Salesand Marketing, plus

dedicated approach andcontent guidelines

The end-goal will be to develop targeted content and materials for the relevant target segments

CRITICAL AREA FOR FURTHER RESEARCH



21/31


CIO CONTENT PREFERENCES VARY BY BUYER-STAGE,HOWEVER CASE STUDIES ARE CONSISTENTLY EFFECTIVE



IDG asked CIO respondents to name the type of content that they found most compelling at each

stage of the buying process, in terms of moving them to the next stage.



22/31


FAVORED CHANNELS ALSO VARY BY BUYER STAGE, WITHANALYST ENQUIRIES PREFERRED MOST STRONGLY



IDG asked CIO respondents to name the channels (or tactics in the IDG study) that they

preferred to receive information through at each stage of the buyer-journey



23/31


IT WILL ALSO BE NECESSARY TO DISCOVER WHICHMESSAGES ARE MOST SUCCESSFUL WITH CIOs


Which messages compel action,and what kind of action do we

want to drive?

Which messages are CIOs tiredof hearing? Which are new to

them?

Which challenges are CIOs

particularly keen to seeaddressed? Are they open to

considering new vendors?

How do incorporate new orsurprising information (that will

interest CIOs) in our messaging?

Key questions to answer in further research


24/31

HOW DO WE WIN?

How do we win?CRITICAL AREA FOR FURTHER RESEARCH


25/31

How do we win?

THERE ARE THREE MAJOR ASPECTS OF UNDERSTANDINGWHAT CIOs ARE LOOKING FOR

C C O U S C

What are they lookingfor, for themselves?

What are they lookingfor, in their

businesses?

What are they lookingfor, from vendors?

Our understanding thus far:

LIMITED:

We need further research to understand CIOs personal

drivers, particularly among our target personas.

SOME UNDERSTANDING:

Informed by information gathered on CIO business priorities(slides 13 and 14 of this document)

SOME UNDERSTANDING:

Informed by secondary research (slide 26 of this document)



26/31

o do e

ITDMs LOOK FOR UNDERSTANDING OF THEIR BUSINESSGOALS AND CUSTOMER SERVICE AMONG VENDORS


3 8 %

4 1 %

4 4 %

4 8 %

4 9 %

6 2 %

6 3 %

6 7 %

7 2 %

7 5 %

0 % 2 0 % 4 0 % 6 0 % 8 0 %

P e e r re f e r e n c e s

A d v a n c e d n o t ic e o n p r o d u c t / s e rv ic e c h a n g e s

K n o w le d g e o f t h e i r co m p e t i to r s / c o m p e t i t iv e o f f e r in g s

K n o w le d g e o f m y v e r t ic a l i n d u s t ry

A c t s a s m y a d v o c a t e w i t h in t h e i r c o m p a n y

I n s ig h t a n d e x p e r t is e o n t e c h n o l o g y t r e n d s a n d d i re c t io n

P o s t - sa l e s s u p p o r t a n d s e r v ic e

K n o w le d g e o f th e i r p r o d u c t p o r t f o l io

A b i l it y t o u n d e r s t a n d m y g o a l s a n d o b j e c t iv e s

C u s t o m e r s e r v i c e / r e s p o n s e t im e

A t t rib u t e s ra t e d c r it ic a l fo r v e n d o r s b y IT D M s(% o f IT D M re sp o n d e n t s)



27/31

OUR RESEARCH GOING FORWARD WILL FOCUS ONSEGMENTING CIOs AND IT DECISION-MAKERS

Source: Red Hat Mainstream Innovator Research

We will particularly need to understand the overlap of our corporate target: Mainstream Innovators, withthe CIO role



28/31

WE WILL ALSO VALIDATE HYPOTHESES AROUND WHY THISSEGMENT AND ROLE IS IMPORTANT NOW AND IN FUTURE

Source: Red Hat Mainstream Innovator Research

REPRESENTS A SIGNIFICANT

MARKET OPPORTUNITY:The incidence of this Persona in the market

is sufficient to make it worth the investment

to target this addressable segment.

FITS WITH RED HAT'S SOLUTIONS

AND BRAND:The challenges and priorities of this

Persona are ones that Red Hat can credibly

and effectively serve.

IS NOT OWNED BY ANOTHER

VENDOR:This Persona does not overwhelmingly

choose an alternative vendor to Red Hat,

and can switch/add to their IT solutions.

SHOWS LONG-TERM GROWTH

POTENTIAL:The needs of this Persona (e.g. risk

mitigation, innovation) will likely be

persistent or grow in the market over time.

Example hypotheses driving Persona and Role's ongoing importance

How do we win?SECONDARY AREA FOR FURTHER RESEARCH


29/31

SECONDARY RESEARCH PROVIDES SOME INFORMATIONABOUT CIOs INTERACTION PREFERENCES

They prefer interacting with familiar

vendors:

ITDMs spend an average of 5 hours per week withcurrent vendors, versus 2 hours per week with

prospective vendors (IDG)

They are reluctant to commit time (especially

to small and/or unproven vendors):

"Right now, I am not working with small to mid-sized

vendors. I do know that there are a number of vendors

that contact me that are unimpressive in their ability to

present their capabilities and value add in a brief

communication. Everyone wants to set up a meetingand meet in person. I don't have time for that if I can't

even figure out if their solution is meaningful to me."

- CIO interviewed by Piper Jaffray

How are CIOs choosing the

smaller/less familiar vendors

they do interact with?

What are CIO meeting/

interaction norms and

preferences?

How do CIOs like to receive

new information (in-person, in

a white-paper, etc.)?

Source: IDG Enterprise Role and Influence Study 2012; Enterprise Software (Piper Jaffray)Note: IDG Study includes both CIOs and other, less senior IT Decision-makers

Other information for further research

They suffer from information overload:

They respond well to succinct, targeted information(Mainstream Innovator research)



30/31

IT DECISION-MAKERS MUST GATHER SUPPORT FROMSEVERAL INDIVIDUALS BEFORE MAKING A PURCHASE

Source: B-to-B Personas (Sirius)

IT Executives' Role in enterprise IT purchasing:Executive IT leaders are primarily involved in determining business need, selling internally and

authorizing/approving the sale of products or services (and, to a lesser extent, determining technical

requirements, evaluating products and services, recommending or selecting vendors for purchase)

Champions

Other key roles in the IT purchasing process:

Influencers

CXOs (usually notCIOs)

Champions

Shepherd the buying process; act as

the key sponsor for a particularpurchase. Main priority is "BusinessValue" (Will the solution meet ourneeds? Does it help with one of ourkey initiatives)

Internal or external trusted sourceswho play a behind-the-scenesadvisory role at critical junctures (e.g.IT Department). Main priority is

"Performance" (Is it stable andefficient? How will it perform?))

Executives (visionaries or decision-makers), generally involved veryearly or late. Main priority is "ROI"(What is the business value? Whyshould we spend money on this?)

Champions

Ratifiers

Users

Evaluators; individuals or groups that

will be impacted by a purchase on aday-to-day basis. Main priority is"Customer Experience" (Will it helpme do my job better? Will it enableme to achieve my goals?)

Professional purchasing,procurement or negotiations groups.Main priority is "TCO" (What are thealternatives? Can we get it cheaper?)



31/31

SOME ASPECTS OF THE BUYING PROCESS ARE EVOLVING,REQUIRING VENDORS TO BE MORE PATIENT

Source: IDG Enterprise Role and Influence Study 2012

The number of influencers involved in the decision-making process around majortechnology purchases is increasing

The majority of IT execs (54%) sign off on all purchases, and the average minimumsign-off amount across organizations without this policy has been declining for the lastthree years

IT Decision-Makers tend to bring on board many vendors, but few strategic partners,often maximizing price competition for non-strategic vendors

Buying cycles for unfamiliar vendors (6.6 months on average) are twice as longas for familiar vendors (3.3 months on average)

The average length of the buying cycle is also significantly longer for largerpurchases: average of 3.5 months for minor purchases, 6.2 months for major

purchases

These data points suggest that we need to be prepared for lengthier sales processes, in which we maystart out at a disadvantage versus established, familiar vendors

20130502 cio persona external research and gaps_may82013

Documents