This is an Executive Summary of an Executive programs member report. Each report covers a relevant and compelling CIO topic
Gartner Executive programs To grasp the digital opportunity, incrementally improving IT performance isn't enough. Enterprises and their CIOS need to flip from old to new in terms of information
and technology leadership, value leadership and people leadership. FOREWORD Visit gartner. com/cioagenda 1 This report addresses the question:
to ensure that their enterprises survive and thrive in an increasingly digital world? Flipping to Digital Leadership:
CIOS have a unique opportunity, but they must flip their information technology, value and people leadership practices to deliver on the digital promise.
810 responses 36%North america 7%Latin america 20%APAC 37%EMEA Industry Percentage Manufacturing/natural resources 23%Government 12%Banking 10%Services
9%Education 7%Insurance 7%Healthcare providers 6%Retail 5%Transportation 4%Utilities 3%Media 2%Communications 2%Wholesale trade
industrialization (focusing on process efficiency and effectiveness) into a third era of enterprise IT, where digitalization is transforming business models
and the next set of digital technologies, trends, opportunities and threats is creating yet another competitive frontier.
In short, to start the digital cultural revolution required to seize this opportunity, CIOS must flip to digital leadership (see figure on page 4). Adapt Ideatecreate Offer Engage Monetize IT craftsmanship IT industrialization We are here Digitalization IT provides innovations
effectiveness and integrity Digital provides continual opportunities for growth, innovation and differentiation The third era of enterprise IT has arrived 4 Gartner Executive programs EXECUTIVE SUMMARY These are not small changes.
They demand commitment and focus from the CIO and support from the CEO and Cxo peers.
and technology through simplification Seizing the digital opportunity requires agility, adaptability and speed. However, existing business processes, business models, information technology and talent suffer from legacy inertia and bad complexity.
Even IT planning horizons do not reflect the new era, with its potentially massive disruptions.
business processes, business models and the business ecosystem. Information and technology leadership Value leadership People leadership Though aware of new digital technologies and approaches to information, the CIO mindset is dominated by nurturing
inspiration the only fuel Legacy first Digital first FLIP FLIP FLIP Visible Valuable Control Vision Seizing the digital opportunity requires flipping long-held behaviors
New and replacement services need to be architected, starting with the assumption that a public cloud solution will deliver services consumed in a mobile setting having a high level of contextualization.
This requires flipping from an inside-out legacy-first to an outside-in digital-first leadership mindset.
This report's case study enterprises are already exploring new digital technologies and trends. And experimentation with post-nexus technologies is creating the next disruption horizon.
what's valuable Expose three types of investments: Fear, fact and faith Not all IT-intensive investments are the same,
and they should be separated into categories based on what motivates them: fear (keep the business running),
fact (extend the business within its business model, markets and tools) or faith (transform the business beyond the known).
The digital business opportunity requires faith-based investments and management capable of dealing with them.
CIOS and their enterprises need to focus on all three phases of the benefits life cycle: plan, execute and harvest (see figure below.
From hit and hope to platform value Transformative, faith-based investments in digital capabilities, platforms and the like entail a high degree of uncertainty,
and capability investments as options for the future. 8 Gartner Executive programs EXECUTIVE SUMMARY Flip people leadership from control to vision Make time to flip leadership Being a powerful digital leader
From IT management to digital inspiration To seize the digital opportunity, CIOS need to help the enterprise understand
and get excited about where digitalization can take the Business education and inspiration are central tasks for CIOS determined to be digital leaders.
CIOS and other IT leaders need to increase the digital savvy of their enterprises using techniques shown in the figure opposite.
that of their enterprise) to information and technology, value measurement and management, and people. The mapping exercise at the end of the report is designed to help CIOS understand
and accelerate change in your enterprise? Do you have a network of qualified peers who can help you uncover innovative approaches?
From CIOS and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in 9, 000 distinct
enterprises worldwide. Through the resources of Gartner Research, Gartner Executive programs, Gartner Consulting and Gartner Events, we work with every client to research,
expected to appear in fall 2005.6 1. Introduction Composite indicators are recognized increasingly as a useful tool for policy making and public communications in conveying information on countries'performance in fields such as environment,
economy, society, or technological development. Composite indicators are much easier to interpret than trying to find a common trend in many separate indicators.
On the other hand, the temptation of stakeholders and practitioners to summarise complex and sometime elusive processes (e g. sustainability, single market policy, etc.
into a single figure to benchmark country performance for policy consumption seems likewise irresistible. Synthetically the main pros and cons of using composite indicators could be summarized as follows:
+Facilitate communication with ordinary citizens and promote accountability. Cons of composite indicators-May send misleading policy messages,
Then, for each discipline, e g. economics, sustainability can be measured at different (hierarchical) levels like economic agents, households, economic sectors, nations, European union,
and benchmarks to compare trajectories of development).(italics added) 2. address several legitimate (and often contrasting) perspectives found among stakeholders on how to structure the problem. 3. handle in a credible way the unavoidable degree of uncertainty,
or even worst, genuine ignorance associated to any multi-scale, multidimensional analysis of complex adaptive systems.
to reflect the multiplicity of stakeholders'viewpoints. Weights usually have an important impact on the results of the composite indicator especially
An example of pedigree matrix used to characterise the quality of a set of statistical indicators of knowledge economy can be found in Sajeva, 2004.
For instance, in the e-business readiness index the human capital factor is understated clearly, whilst the technological factor is favoured.
In the same example, the distinction between use and adoption of information and communication technologies is supported not statistically,
When the objective of the analysis is to present a huge data set using a few variables then in applying PCA there is the hope that some degree of economy can be achieved
b) Variance-inflation factor (VIF) is simply the reciprocal of tolerance. A VIF value greater than 4. 0 is an arbitrary
For example, if studying school performance as a function of social interactions in the home, it is reasonable to expect that data from students in particularly types of home environments would be more likely to be missing than data from people in other types of environments.
http://www. cpc. unc. edu/services/computer/presentations/mi presentation2. pdf 42 Use the completed data X and the model to estimate the parameter of interest (e g. the mean) ß
and application of information and communication technology across countries (see Fagerberg, 2001) and also in the Medicare study on healthcare performance across US States (Jencks et al.,
This method is used for the two composite indicators of the knowledge-based economy published by the European commission on Key Figures 2003-2004, for the environmental sustainability index developed at Yale university,
For example, United states or Japan are benchmark countries for the composite indicators built in the frame of the EU Lisbon agenda.
or, finally, an external benchmark. 5. 2. 5 Categorical scales Each indicator is assigned a categorical score.
The summary indicators help to compare the economic and administrative regulatory environment across countries. The summary indicators are obtained by means of factor analysis, in
This index is calculated by the Directorate General Enterprise of the European commission. Here the component indicators are normalised according to distance from the overall European mean.
and to better forecast cycles in economic activities (Nilsson, 2000. When indicators are in the form of time series the transformation can be made by subtracting the mean over time (t) t qc E x and then by dividing by the mean of the absolute values of the difference from the mean.((
) Here, all the sub-indicators are expressed in terms of percentage of enterprises possessing a given infrastructure or using a given ICT tool.
to reflect the multiplicity of stakeholders'viewpoints. Weights heavily influence the outcome of a composite indicator
the production of a chemical plant, the cycles of the economy. Exactly as in these examples, no formal encoding procedure exists,
and indicator I2 The percentage of enterprises that have a web site display a correlation of 0. 88 in 2003:
and Communication Technologies Adoption and give them equal weight in constructing the composite indicator? If weights should ideally reflect the contribution of each indicator to the composite,
and uses this as benchmark to measure the performance of a given set of countries. 17 The set of weighs stems from this comparison.
the construction of a benchmark (the frontier) and the measurement of the distance between countries in a multidimensional framework.
The construction of the benchmark is done by assuming:(i) positive weights (the higher the value of one sub-indicator, the better for the corresponding country;(
The distance of each country with respect to the benchmark is determined by the location of the country and its position relative to the frontier.
and is the benchmark for country d which lies beyond the frontier. The countries supporting the frontier are classified as the best performing,
The benchmark will correspond to the ideal point exhibiting a similar mix of indicators (d'in the example.
The benchmark could also be determined by a hypothetical decision maker (Korhonen et al. 2001, for an indicator of performance of academic research) who is asked to locate the target in the efficiency frontier having the most preferred combination of sub-indicators.
The composite indicator is defined as the ratio of a country's actual performance over its benchmark performance:
2004) who first implemented this method suggested obtaining the benchmark as solution of a maximization problem
(although external benchmarks are also possible):(S)==Q q 1 qk q I, k {1,,
ii) the benchmark would in general be country-dependent, so no unique benchmark would exist (unless,
as before, a country is better off in all sub-indicators), (iii) sub-indicators must be comparable,
..M (6. 3) subject to non negativity constraints on weights. 19 The resulting composite index will range between zero (lowest possible performance) and 1 (the benchmark).
for 63 The benchmark is based not upon theoretical bounds but it a linear combination of observed best performances.
The value of the scoreboard depends on the benchmark performance. If this changes the composite will change as well as the set of weights (and the country ranking.
The best performer (the one with a composite equal to one) will not see its progress reflected in the composite (that will remain stacked to 1). This can be solved by imposing an external benchmark.
e g. the percentage of firms using internet in country j depends upon the (unknown) propensity to adopt new information and communication technologies plus an error term accounting,
Public opinion Advantages Disadvantages deals with issues on the public agenda. allows all stakeholders to express their implies the measurement of concern. the method could produce inconsistencies 68 preference
Alternatively to policy goals, sustainability levels, quantified effects on the environment, or best performance countries can be used as goalposts.
Information and Communication Technologies Index-Fagerberg J. 2001. S==Q q 1 c qc CI Rank for c=1,,
The second method proposed is based on the number of indicators that are above and below some benchmark.
which indicates that public opinion about the main threats to the environment is remarkably stable across both space and time.
Second TAI analysis. This differs from the first analysis in that we assume that stakeholders have converged to using LIN aggregation.
in the second analysis we make the realistic assumptions that TAI stakeholders have converged eventually to an aggregations system,
In fact, one might argue that the choice of the aggregation system is dictated somehow by the use of the index and by the expectation of its stakeholders.
if stakeholders were to believe that the system should be non compensatory, e g. that one unit down on one sub-indicator should not be compensated by a unit up in another.
Assessment for indicator against objective Change since 1970 Change since 1990 Change since Strategy1 H1 Economic output H2 Investment H3 Employment All arisings
and access to services) for the all the districts in 2000. The composite 110 is the average of scores out of a 100 for each sub-indicator (see Table 8. 3). The rank is the average of ranks for each sub-indicator;
a pure environmental composite, the environment sustainability index, presented by the World Economic Forum annual meetings, the European Environmental Agency's EEA Environmental Signals.
Another example of this presentational tool is given by the composite indicators of investment and performance in the knowledge-based economy,
Composite indicator of investment in the knowledge-based economy for comparison between the EU-15 and the former Acceding Countries. 8. 9 Comparing indicators using clusters of countries In the United nations Industrial Development
and transition economies in years 1985 and 1998 is based on clusters of countries with similar performance (see Figure 8. 15).
Technological evolution in industry both in industrialized and transition economies in years 1985 (blue cluster) and 1998 (black cluster.
's composite indicators for the knowledge based economy. Document presented by DG RTD at the Interservice consultation meeting on Structural Indicators on July 11th 2002.6.
Cherchye L. 2001), Using data envelopment analysis to assess macroeconomic policy performance, Applied Economics, 33,407-416.14.
and van der Straaten J. 1992)- Rethinking environmental economics: missing links between economic theory and environmental policy, Journal of Economic Issues, Vol. XXVI No. 1, pp. 27-51.25.
Dunteman, G.,H. 1989. Principal components analysis. Thousand Oaks, CA: Sage Publications, Quantitative Applications in the Social sciences Series, No. 69.26.
a social choice approach, Journal of Environmental Economics and Management, vol. 47, pp. 270-283.28.
European commission,(2001a), Summary Innovation Index, DG Enterprise, European commission, Brussels. 33. European commission (2001b), Internal Market Scoreboard, DG MARKT, European commission, Brussels. 34.
The challenge from innovation-based growth in the Globalising Learning Economy, B. Lundvall and D. Archibugi eds.
and Van der Werf H.,(2000), Assessment of potential impacts of agricultural practives on the environment:
an examination of composite performance indicators, Centre for Health Economics, Technical Paper Series 29.62. Jae-On K,
an index of pollution, Ecological Economics, vol. 35 pp. 191-202.67. Kahn J. R and Maynard P. 1995) Conjoint Analysis as a Method of Measuring Use and Non-Use Values of Environmental Goods,
an index of pollution, Ecological Economics, 32,191-202.125 70. Karlsson J. 1998), A systematic approach for prioritizing software requirements, Phd.
and Kremers J.,(1996), Market opening, regulation and growth in Europe, Economic policy (0) 23.october 78. Korhonen P.,Tainio R,
Two composite indicators to assess the progress of member States in their transition towards a knowledge based economy, DG RTD, Brussels. 95.
Munda G. 1995)- Multicriteria evaluation in a fuzzy environment, Physica-Verlag, Contributions to Economics Series, Heidelberg.
Sajeva, M. 2004) A methodology for quality assurance of knowledge economy statistical indicators, ERU report, in publication. 121.
Computer Physics Communications, 145,280-297.122. Saltelli, A.,Chan, K. and Scott, M. 2000a) Sensitivity analysis, Probability and Statistics series, New york:
U s. Department of energy and Energy Information Administration,(1995), Measuring energy efficiency un the United states'economy: a beginning.
European B2c E-commerce Report 2014 Facts, Figures, Infographics & Trends of 2013 and the 2014 Forecast of the European B2c E-commerce Market of Goods and Services In cooperation www
Single Market page 15 Impact of E-commerce on the Economy page 16 GLOBAL B2c E-COMMERCE IN BRIEF page 17-19 Infographic page 18 The Global Infographic
4. e-Identification & Trust Services 5. e-logistics François Momboisse President of Ecommerce Europe European B2c E-commerce Reports 2014 Preface Wijnand
and services online and they do so from various places, such as at home, at work, en route or in the highstreet and sometimes already online in the store.
Meanwhile, e-commerce has become a major influence on the European economy. Whereas the European Gross domestic product was more than €16. 4trn in 2013
and other stakeholders with practical means that can help them to optimize their businesses. Naturally
Therefore we want to use this opportunity to express our gratitude to all participating national associations
We would also like to thank all participating company members, business partners and stakeholders for their involvement.
processing international e-commerce payments for more than 600 of the world's most recognized e-commerce brands in the digital goods and services, travel,
Globalcollect's business intelligence tools, Managed Fraud Services and more than 400 payments experts help our clients elevate their payment strategies to become a strategic asset to their companies.
Salesupply is a global e-business services company that enables online retailers to achieve profitable international growth faster, more efficiently and with relatively low costs.
an opportunity is being missed to convert a browser to a buyer. Success criteria Gfk makes use of the latest research techniques to understand each element of the customer journey
and retailers are perceived by customers and how this perception translates to sales we can show the impact the user's experience has on the final decision.
and services delivered on a daily basis from all corners of the globe cannot be discounted.
Whether there is an opportunity to take advantage of this or a need to create a defensive strategy,
and then actually being able to benchmark those sales is going to continue to be important to all online players.
For merchants, there is still plenty of opportunity for growth by expanding into new European markets.
and act on macro-trends, such as changes in the regulatory environment, or in consumer behavior and expectations.
and identify opportunities Another big trend that is further maturing in 2014 is the application of big data analytics and visualization to the domain of online payments.
This is done through the use of common payment instruments and standards, supported by a regular and accepted legal structure. opportunities.
Ben Rund Senior Director Product Marketing at Informatica Corp Information Must Be Relevant to Customers Omnichannel Tomorrow Means Predicting The next Logical Purchase Everywhere To be able to do this
and invest sufficiently in reaching customers through the several touch points. This way, they will be able to create a flawless customer experience,
and holding on to customers. Real-time experience The biggest challenge for companies will be real-time experience.
For customers it will not be enough to receive information tomorrow or even later today; they want it right away.
In order to achieve this, retailers must be able to predict the next purchases of customers. When shoppers are about to make a purchase,
customers should later receive recommendations through all channels regarding products and/or services that might be interesting to them.
Pontus Kristiansson Vice president EMEA Richrelevance The mature online retail markets are saturated already highly and competition is intense.
To make sure that consumers choose and continue to choose, your product or service over that of your competitors,
it has become more difficult for companies to personalize their services. Still, e-commerce personalization is by no means impossible.
Possibilities What web merchants can do is using the information that online customers leave behind when browsing the Internet,
Other possibilities to personalize your website include providing consumers with the opportunity to give feedback,
their websites think along with customers. Potential buyers are now provided with reasonable suggestions based on previous site visits and purchases.
Making their customers feel special is one of the reasons why Amazon and Netflix are so successful nowadays.
Personalization Is Vital Making Customers Feel Special Is the Key to Increasing Conversion Rates Henning Heesen Cross-Border E-commerce Specialist
which they want to introduce their products or services. For a successful internationalization, your company has to gain the trust of your potential customer.
This way, your customers in Latin america or Asia do not have to wait until the business day gets underway in Europe.
Especially Asia is a popular market for European companies as more and more Asian enterprises want to do business with our continent.
but I mainly consider this a great opportunity for European companies to increase their market.
Markets like Australia, Brazil and Indonesia contain a lot of possibilities for European companies. www. ecommerce-europe. eu A Brief Introduction to Europe An Overview of Europe and the European union Country Capital
Overview of the European countries A Brief Introduction to Europe Country Capital VAT Currency Population EU28 Albania Tirana 20%Lek (ALL) 2. 7mn Candidate Bosnia & Herzegovina
Overview of the European countries A Brief Introduction to Europe Impact of E-commerce on the Economy Gross domestic product The total Gross domestic product (GDP) of Europe is estimated to have reached around €16. 4 trillion in 2013,
%Ecommerce Europe estimates the share of the European Internet economy in the GDP at 2. 2,
Ecommerce Europe estimates the annual number of B2c parcels sent to customers domestically and cross-border to other (European countries at 3. 7 billion
and Services at a Glance Top 10 e-commerce countries in turnover (EUR billion) USA € 315.4 China € 247.3*UK € 107.1 Japan €
*B2c & C2c goods & services, excluding insurances 7, , 233 million people live in the world 2,
181 million people are e-shoppers 16%37%100%€ 1, 173.5 bn Turnover E-commerce Goods & Services 1, 878 million estimated
@Ecommerce eu Global Global €1, 173.5 bn+13.6%Total B2c e-sales 2013 of goods and services 1 2 3 73.4%Share of Internet users
Market of Goods & Services www. ecommerce-europe. eu B2c E-commerce in Europe 2013 Key B2c E-commerce Data of Goods and Services at a Glance;
+jobs directly or indirectly via e-commerce 54%Goods 46%Services 32%69%100%€ 363.1 bn Turnover E-commerce Goods & Services 645,000+estimated online businesses
Gfk, 2014 An Overview of B2c E-commerce Markets of Goods & Services in Western europe www. ecommerce-europe. eu Western europe Western europe Europe € 363.1 bn+16.3
%EU 28 € 317.9 bn+14.7%Western europe € 177 bn+12.4%Total B2c E-commerce 2013 of goods & services 59%88%100
& Services 43.5%Services 56,5%Goods 9. 5%Estimated share of online goods in total retail of goods Estimated 72%of active Internet users are on social media E-commerce GDP
Data of Goods and Services at a Glance The netherlands Belgium France United kingdom Ireland 1 United kingdom € 107,157 2 France € 51,100 3 The netherlands € 10,583 4 Ireland
Next and John Lewis. 63.7 million Pound (GBP) 20.0%65.6 million Euro (EUR) 19.6%Western europe An Overview of B2c E-commerce Markets of Goods & Services in Central europe
bn+22.7%Total B2c Ecommerce 2013 of goods & services 165 million people live in Central europe 130 million people use the Internet 68 million people are e
& Services 41.3%Services 58.7%Goods 7. 0%Estimated share of online goods in total retail of goods Estimated 72%of active Internet users are on social media E-commerce GDP
bn 1 2 3 Ranking Central europe in turnover (EUR million) 2013 Key B2c E-commerce Data of Goods and Services at a Glance 1 Germany € 63
898 5. 7 million e-shoppers in 2013 E-commerce Markets Central europe An Overview of B2c E-commerce Markets of Goods & Services in Southern Europe www. ecommerce
41 bn+18.9%Total B2c Ecommerce 2013 of goods & services 59%212 million people live in Southern Europe 125 million people use the Internet 48
Turnover E-commerce Goods & Services 57.5%Services*42.5%Goods*2. 3%Estimated share of online goods in total retail of goods Estimated 72%of active Internet users
) 2013 Key B2c E-commerce Data of Goods and Services at a Glance Italy Spain Greece 1 Spain € 14,414 2 Italy € 11
and services sold online services have become more popular in Italy over the last few years.
& Services in Northern europe www. ecommerce-europe. eu Northern europe Northern europe Europe € 361.1 bn+16.3%EU 28 € 317.9 bn+14.7%Northern europe
€ 31.9 bn+12.7%Total B2c Ecommerce 2013 of goods & services 90%100%32 million people live in Northern europe 29 million people use the Internet
bn Turnover E-commerce Goods & Services 49%Services 51%Goods 7. 2%Estimated share of online goods in total retail of goods Estimated 18 million
) 2013 Key B2c E-commerce Data of Goods and Services at a glance 1. Sweden € 8, 622 2. Denmark € 8, 367 3. Norway
The most popular category in terms of items sold online in Denmark is Financial Products and Services.
1. Financial Products and Services 2. Travel and Cultural Activities 3. Film, Music, Books, Games and Toys 4. IT, Telecom and Photo 5. Electronics and Appliances
An estimated 77%of Internet users purchased goods and/or services in the last 12 months.
& Services in Eastern europe www. ecommerce-europe. eu Eastern europe Eastern europe Europe € 363.1 bn+16.3%EU 28 € 317 bn+14.7%Eastern europe
€ 19.3 bn+47.3%Total B2c Ecommerce 2013 of goods & services 56%100%248 million people live in Eastern europe 139 million people use the Internet
& Services 25%Services 75%Goods 2. 1%Estimated share of online goods in total retail of goods Estimated 40%of active Internet users
Key B2c E-commerce Data of Goods and Services at a Glance Ukraine Romania 1 Russia € 15,500 2 Ukraine € 1, 850 3 Romania € 1,
General Overview Tables and Forecast of B2c European E-commerce Turnover of Goods & Services www. ecommerce-europe. eu Overview and Forecast Overview of Online B2c E-commerce
Ecommerce Europe, 2014 OVERVIEW ONLINE B2c E-COMMERCE SALES GROWTH 2010-2014 Based upon online sales growth of goods and services, 2013 Countries 2010
From 1966 until 1979 he offered legal and economic advice as well as lobbying services. From 1979 he managed the Dutch Mail order Association (currently Thuiswinkel. org
After graduating in Communication Sciences in 2004, he studied American Studies at Radboud University Nijmegen
a research institute offering practical e-commerce research and benchmark services. Peter van den Brink, Trainee Research & Advice Peter van den Brink (1992) has worked for Ecommerce Europe since 2014.
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