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Werner Boeing, Nov 2012 My people and leadership journey Building business centric enterprise IT cover Werner Boeing, 2 nd October, 2013

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  • Werner Boeing, Nov 2012

    My people and leadership journey

    Building business centric enterprise IT

    cover

    Werner Boeing, 2nd October, 2013

  • Werner Boeing, Oct 2013

    Agenda

    Building Business Centric Enterprise IT

    • Introduction: Roche & IT At Roche

    • Business Centricity: IT Self-Assessment

    • The Journey

    – Setting The IT Agenda

    – Influencing Business Journey

    – Creating Innovation Canvas

    • Conclusion

    2

  • Werner Boeing, Oct 2013

    Roche: Basic facts at a glance

    • Founded 1896 in Basel, Switzerland

    • Founding families still hold majority stake

    • Employing 82,000 people

    • Currently active in 150 countries on all continents

    • Sales 2012: 45.5 billion Swiss Francs

    • Clear focus on healthcare

    • Leadership in pharmaceuticals (#4)*

    • World’s largest biotech company (position #1)* with truly differentiated medicines in oncology, virology, inflammation, metabolism and CNS

    • Leadership in in vitro diagnostics (#1) and pioneer in diabetes management

    • Unique innovation model

    * Source: Decision Resources, Q4/2012

  • Werner Boeing, Oct 2013

    IT @ Roche by the numbers

    • 82.000 Users

    • 70.000+ laptops

    (Mac/ Windows)

    • 25.000 desktops

    • 40.000 iPhones

    • 20.000 iPads

    4

    • 7.500 Server

    • 40+ Peta bytes storage

    • 30 Telepresence rooms

    • 500 Videoconference

    rooms

    • 5000+ daily service

    tickets

    Over 3000 Enterprise IT FTE

    • Major Centers : Basel, SSF

    • IT SSC: Spain, Poland

    • Affiliates: Globally

  • My personal journey

    5

  • Werner Boeing, Oct 2013

    Agenda

    Building Business Centric Enterprise IT

    • Introduction: Roche & IT At Roche

    • Business Centricity: IT Self-Assessment

    • The Journey

    – Setting The IT Agenda

    – Influencing Business Journey

    – Creating Innovation Canvas

    • Conclusion

    6

  • Werner Boeing, Oct 2013

    Business IT centricity

    How much does IT care?

    7 Business

    Performance

    Information

    Technology

  • Werner Boeing, Oct 2013

    Business IT centricity

    Some questions to start with

    8

    And how big is the gap between…

    - your leadership team and you?

    - your ambition and IT function? Where does your business want IT to be?

    Where do you want to be with the IT function and why?

    Where do you as the CIO stand yourself?

  • Werner Boeing, Oct 2013

    Business IT centricity: Self-awareness

    Saying, doing and being accountable

    9

    Interest Action Accountability

    Maturity level I am interested in business activities

    I take action to increase my business

    understanding

    I am seeking accountability

    for business outcome

    Leading

    Adequate

    Un-managed

    Relevance and effort

  • Werner Boeing, Oct 2013

    Business IT centricity: Self-awareness

    Answer questions for you, your leadership team and IT

    10

    Interest Action Accountability

    I am interested in business activities

    I take action to increase my business understanding

    I am seeking accountability for business outcome

    5 points:

    “I joined the company not IT”

    I am deeply interested in my industry and our role in it…

    I took a day with a sales rep although I support

    Finance…

    I broadened myself acting as GM, function head…

    3 points:

    “I do it when it helps my role”

    I want to understand how my BIZ partner is doing…

    I mirrored my BIZ counterpart for a day…

    I jumped in as business PM/ BIZ test lead …

    1 points:

    “I do it when I have to” I read the BIZ newsletter

    occasionally I participated in

    mandatory team training I was told to fix the

    Masterdata inconsistency

    0 points:

    “Brother, I am in IT…” I don’t want to understand

    BIZ need to keep up with IT My day is packed already

    Nobody is helping me why should I?

  • Werner Boeing, Oct 2013

    Business IT Self-awareness

    Leadership without follow ship is dangerous

    11

    Interest Action Accountability

    I am interested in business activities

    I take action to increase my business understanding

    I am seeking accountability for business outcome

    You 5 4 4-5

    Your LT 4 3-4 3

    IT overall 3 2 1

    Max gap 2 2 4

    Advanced gap factor

    1* = Intrest

    2* = Action

    3* = Accountability

    1 * 2 = 2 2 * 2 = 4 3 * 4 = 12

    Gap pyramid

    Leadership

    not connected

    Not bad at all

    Aligned

    18

  • Werner Boeing, Oct 2013

    Agenda

    Building Business Centric Enterprise IT

    • Introduction: Roche & IT At Roche

    • Business Centricity: IT Self-Assessment

    • The Journey

    – Setting The IT Agenda

    – Influencing Business Journey

    – Creating Innovation Canvas

    • Conclusion

    12

  • Werner Boeing, Oct 2013

    Key elements for IT’s journey

    What guided me well

    13

    1. Setting the IT agenda

    “Burning platform and desire”

    3. Creating the innovation canvas

    “Wild and structured”

    2. Influencing the business journey “Selective and partnering”

  • Werner Boeing, Oct 2013

    Start: you frame IT

    “burning platform and desire”

    Action: embed change

    “ongoing & new programs”

    Transformation: address IT “operating model and culture”

    14

    Key elements for IT’s journey

    Setting the IT agenda

    IT Agenda

  • Werner Boeing, Oct 2013

    Start: you frame IT

    Burning platform and desire

    15

    IT Agenda

  • Werner Boeing, Oct 2013

    Transformation: address IT

    Balancing Operating Model and Culture

    16

    IT Agenda

  • Werner Boeing, Oct 2013

    Action: embed change

    Go Google

    17

    IT Agenda

  • Werner Boeing, Oct 2013

    Market analysis:

    “find the under-supported future winner”

    Embed in bigger business picture

    “from eMarketing to business models”

    Flag ship service “deliver your winner”

    18

    Key elements for IT’s journey

    Influencing the business journey

    BIZ Journey

  • Werner Boeing, Oct 2013

    Market Analysis (1/2)

    Find the under-supported future winner

    19

    3%

    13%

    27%

    57%

    28%

    22%

    33%

    16%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Innovation Operations Commercial Back Office

    Actual spent 2005-2010

    Back office:

    -41% Gap

    Innovation:

    +25% Gap

    Desired profile by business stakeholder

    BIZ Journey

  • Werner Boeing, Oct 2013

    Market Analysis (2/2)

    IT starts with listening systematically

    20

    BIZ Journey

  • Werner Boeing, Oct 2013

    Flagship service

    Identifying the business service that matters

    21

    BIZ Journey

  • Werner Boeing, Oct 2013

    Embed in bigger picture (1/2)

    The opportunity for digitalizing business is real

    6

    100%

    100% 0%

    50%

    0%

    Agriculture

    Construction

    Education K-12

    Higher Education

    Banking

    Capital Markets

    Government National and Local

    Healthcare

    Insurance

    Automotive Consumer Products

    High Tech

    Broadcast Media

    Entertainment Media

    Retail

    High-Tech Services

    Professional Services

    Airlines

    Utilities

    Degree of IT Digitized Processes

    (Transactions)

    Pe

    rce

    nta

    ge

    of

    Dig

    ita

    lize

    d B

    usin

    ess

    (Reve

    nue)

    Source: McDonald – Digitalizing the Business

    • Firms with above-average

    levels of digital revenue

    outperform those with lower

    levels of digitalization:

    – Average revenue growth

    of +1.5% vs. -4.7%

    – Net margin was +5.7%

    vs. -5.4%

    – Return on assets was

    +1.1% vs. -0.9%

    – Return on equity was

    +3.7% vs. -3.1%

    Source: 2012 MIT Sloan Center for Information Systems Research

    BIZ Journey

  • Werner Boeing, Oct 2013

    23

    Embed in bigger picture (2/2)

    Do we need digital natives to build digital businesses?

    Classical IT

    Consumerized IT

    Digitalized Business

    Silos

    Enterprise -

    User Profile

    Digital natives

    Competent Users

    Digital entrepreneurs

    Services Value Add IT Services

    Digitalized products

    IT-DNAed Businesses

    Customer IT exposure

    ?

    BIZ Journey

  • Werner Boeing, Oct 2013

    24

    Create the language “Business capabilities map, Design thinking”

    Technology Watch

    “Making the elephant dance”

    The business of IT “Data driven business models”

    24

    Key elements for IT’s journey

    Creating the innovation canvas

    Innovation

  • Werner Boeing, Oct 2013

    Create the Language

    Business capability map / Design Thinking

    25

    Innovation

  • Werner Boeing, Oct 2013

    26

    The business of IT

    From data to meaning, from lab to extended healthcare eco-system

    Innovation

    Understand where you are coming from and what IT can really add

  • Werner Boeing, Oct 2013

    27

    Technology Watch (1/2)

    It takes a lot to make the elephant dance

    Innovation

  • Werner Boeing, Oct 2013

    28

  • Werner Boeing, Oct 2013

    Technology Watch (2/2)

    Making the elephant dance

    29

    Innovation

  • Werner Boeing, Oct 2013

    Agenda

    Building Business Centric Enterprise IT

    • Introduction: Roche & IT At Roche

    • Business Centricity: IT Self-Assessment

    • The Journey

    – Setting The IT Agenda

    – Influencing Business Journey

    – Creating Innovation Canvas

    • Conclusion

    30

  • Werner Boeing, Oct 2013

    Key beliefs for IT’s journey

    From technology & service to business model innovation

    31

    From IT symbolism

    to people

    engagement and enterprise culture

    IT’s behavioral science

    From getting a seat

    at the table to

    initiating key discussion

    IT’s more than power

    From an ocean of

    rectangles to

    creating business desire

    IT’s business linguistics

  • Werner Boeing, Oct 2013

    Doing now what patients need next

  • Werner Boeing, Oct 2013

    Questions and answers

    33