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THE CIO PERSONA:External research and gap analysis
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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?
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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.
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WHAT WE HAVE DISCOVERED SO FAR:KEY INFORMATION FOR BUILDING THE
CIO PERSONA
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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
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THERE MAY BE A DISCONNECT BETWEEN HOW CIOs ANDOTHER C-SUITE MEMBERS VIEW THE CIO ROLE
Who are these individuals?
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%)
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...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
Who are these individuals?
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...HOWEVER WHEN IT COMES TIME TO MAKE BUYINGDECISIONS, PEERS BECOME MOST IMPORTANT
Who are these individuals?
Source: IDG Enterprise Role and Influence Study 2012Note: Study includes both CIOs and other, less senior IT Decision-makers
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Who are these individuals?
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
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Who are these individuals?
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 ?
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Who are these individuals?
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 ?
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Who are these individuals?
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 ?
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Who are these individuals?
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
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Who are these individuals?
Source: The DNA of the CIO (Ernst & Young)
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
SECONDARY AREA FOR FURTHER RESEARCH
Who are these individuals?SECONDARY AREA FOR FURTHER RESEARCH
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Who are these individuals?
Source: The DNA of the CIO (Ernst & Young)
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
SECONDARY AREA FOR FURTHER RESEARCH
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HOW DO WE FIND THEM?
How do we find them?CRITICAL AREA FOR FURTHER RESEARCH
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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
How do we find them?CRITICAL AREA FOR FURTHER RESEARCH
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How do we find them?
CIO CONTENT PREFERENCES VARY BY BUYER-STAGE,HOWEVER CASE STUDIES ARE CONSISTENTLY EFFECTIVE
CRITICAL AREA FOR FURTHER RESEARCH
Source: IDG Enterprise Role and Influence Study 2012Note: Study includes both CIOs and other, less senior IT Decision-makers
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.
How do we find them?CRITICAL AREA FOR FURTHER RESEARCH
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How do we find them?
FAVORED CHANNELS ALSO VARY BY BUYER STAGE, WITHANALYST ENQUIRIES PREFERRED MOST STRONGLY
CRITICAL AREA FOR FURTHER RESEARCH
Source: IDG Enterprise Role and Influence Study 2012Note: Study includes both CIOs and other, less senior IT Decision-makers
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
How do we find them?CRITICAL AREA FOR FURTHER RESEARCH
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How do we find them?
IT WILL ALSO BE NECESSARY TO DISCOVER WHICHMESSAGES ARE MOST SUCCESSFUL WITH CIOs
CRITICAL AREA FOR FURTHER RESEARCH
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
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HOW DO WE WIN?
How do we win?CRITICAL AREA FOR FURTHER RESEARCH
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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)
How do we win?CRITICAL AREA FOR FURTHER RESEARCH
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o do e
ITDMs LOOK FOR UNDERSTANDING OF THEIR BUSINESSGOALS AND CUSTOMER SERVICE AMONG VENDORS
Source: IDG Enterprise Role and Influence Study 2012Note: Study includes both CIOs and other, less senior IT Decision-makers
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)
How do we win?CRITICAL AREA FOR FURTHER RESEARCH
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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
How do we win?CRITICAL AREA FOR FURTHER RESEARCH
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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
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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)
How do we win?SECONDARY AREA FOR FURTHER RESEARCH
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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?)
How do we win?SECONDARY AREA FOR FURTHER RESEARCH
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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