(bright upbeat music) >> Welcome back. Lisa Martin here talking with Laureen Knudsen, a CUBE alumni. She's the Chief Transformation Officer at Broadcom and a founding member of the BizOps Coalition. Laureen, I'm excited to talk to you about an interesting topic today. Welcome back to the program. >> Thank you so much. Glad to be here. >> So we're going to be, yeah, we're going to be talking about the pros and cons of adding a Chief Digital Officer. You say, there may be some friction there, but it's going to be temporary as the benefits will be long lasting. So let's dive right in. Talk to me about what the role of a Chief Digital Officer is. Is this something that a CIO can take on? >> In some organizations, I think the CIO is taking on this role. And it's primarily focusing on what we're calling the digitization of the organization. So it's across more than just IT though. So it's looking at what kind of digital marketing should you be doing? What are your competitors doing? How can you make the most bang for your buck essentially across your entire organization? So it also includes parts that generally haven't been included in digital transformations, like your legal team or your finance team and the interactions with them. Can your contracts be digitized? Can they be made more efficient and more automated, right? So it's looking at the entire organization both internally and externally and looking at the strategy for how do you accomplish that and how do you truly make your organization as effective as it can be. >> Is this person almost like a bridge between the different lines of business and IT to get that external, internal focus? >> Yes, yeah, many people in IT don't have that business knowledge. That's a really good point. And so this person will need to have not only business knowledge but technical knowledge so they can essentially translate, right, the verbiage that is used in the different organizations and the jargon that's used to make it, to make the understanding between the two of what's needed more smooth, you know, the communication more smooth within the organization. Also focusing on customer value and making sure that, that both sides are saying the same, you know, when they use the same words, they're saying the same things. So doing that translation in that organization, across the entire company. >> Looking at it from the holistic perspective, you know, I know that the BizOps Coalition survey also showed that something that we hear that digital transformation isn't just about the technology. It's got to be all of the factors coming together aligned on business outcomes, aligned on what's the impact and the value to the customer. How is the Chief Digital Officer role going to facilitate that, not just understanding, but putting in practice that digital transformation is not just about technology? >> Well, and again, 95% of companies are confirming that, that right now they're focusing much more on business outcomes than just on technology. And so, there really is that need to, you know, what does that mean, right? When you're focusing on business outcomes, it often includes a lot of technology, but it's, you know, there's a different path to take to make sure that you're focusing on your customer outcomes. There's a lot of organizations that are looking at their apps and realizing their customers find the most value when they never have to use them. So how do you accomplish that, right? That's not adding new features in, that's not doing something new for the customer other than making it, making sure everything runs so smoothly that they never have to access your app. You know, we're running into that with a lot of business organizations like insurance companies or banking, phone, you know, telco companies, things like that where people really don't want to use the products you're creating for them if they don't have to. >> Right, adoption is always something that we talk about that can be a KPI but also a challenge. One of the things that I noticed that information that, that Broadcom provided was that Gartner says, in the next 12 months, 67% of organizations are going to be looking at hiring a Chief Digital Officer. Let's have you talk us through what are some of the forcing functions behind that? Obviously the last year has been quite, filled with quite a bit of uncertainty but we look back a couple of decades, there wasn't talk of a Chief Digital Officer. So, why this, why is there such a big uptick in the need for this role? >> Well, it's interesting 'cause Gartner originally talked about the Chief Digital Officer in about 2010 to 2012 timeframe where they were talking about the need for it. And it was a lot of, I think fast moving companies and the companies that really have made a lot of advancements in their effectiveness and their customer centricity have really grabbed onto this concept whether they've called it a Chief Digital Officer or not, but in the last year, it's forced everyone to have a digital footprint in the market. If you'll notice even your local restaurants that are family owned now have some sort of way to order their food digitally, right? So we're digitizing the entire thing and COVID is really, required every company to look at much more how they can do things electronically, any type of, you know, digitization whether it's like I've said before the marketing, or even how do you handle all of your contracts when there's no in-person signature and no, you know, fax machines to send things back and forth, right? It's all about making sure that all of that's secure and protected. So it's going across the entire organization. And that's really creating that need for somebody to be able to look at how your company can do all of those different things. Because quite frankly, the CIO already has a day job, right? Your Chief Marketing Officer already has a day job. So trying to look at how to be really innovative in these areas creates a gap, right? And people aren't finding that extra time to be able to do that and to look at how to be really streamlining their organizations and taking that innovation in with both internal and external viewpoints. >> Well, it'd be, imagine you mentioned, you know, the CIO, the CMO, the CFO having day jobs, but also one of the things it sounds to me like is important for this CDO role is to have objectivity. To be able to rise above all the different functions, the different technology stocks and probably silos that are there and really look holistically across the organization. So talk to me about some of the skills that are really required from the Chief Digital Officer. Is this someone that needs to have both an IT background and a business background, does it matter? >> I think as long as they have the knowledge of either side, that where they came from, isn't going to matter but you're going to, the problem is going to be finding the people with those dual skill sets, right? Because you're going to need somebody that can understand your business and your technology side to marry the two together. But they're also going to need to understand all the intricacies of the legal aspects that need to go into creating your products or the financial aspects of tracking what happens with your products. So they're really going to need to be not only very well educated and have a lot of experience, but the other thing they're going to need is that emotional empathy and that ability to work with everybody in the organization. Essentially if they do their job right, they'll be coming in and working with every other Vice President or chief in your organization. So there'll be helping to influence all of those people. And that can create a lot of conflict at first because you're having somebody else come in to give the CIO insights into how they can innovate technologically or to give the Chief Marketing Officer information on new ways that they can do their jobs, that they can digitize the marketing to be more effective and the right frame of mind to be able to do that. You know, hiring is going to be another place where these people will have a large imprint because they're going to need the knowledge to be able to interview all across the board for people that can help them get these new innovations into place. For example, if marketing needs to expand into more of a digital footprint to actually get the, the imprints that they need, right? How do you interview for that, when as a marketing leader, you've never run a digital part, a digital organization before. So it's really having the ability to partner with every other department in the organization and work with them, which, you know, to your point that can cause some conflicts to start off with but in the long run, it'll, it should be well worth it. >> Well, it sounds like that friction is probably unavoidable in the beginning as this person really works to understand all of the inner machinations of the organization and really identify what's best for the overall business. You mentioned empathy. And I think that's something that we've heard a lot about in the last year as leaders really needing to adopt that. And it sounds like this role for it to be such a catalyst of IT and business alignment, as it sounds like it really can be, that empathetic gene really needs to be turned on pretty high, I think. >> A 100%, right? They need to be able to be really understanding of the organization and the other people that they're working with, that those people do have a great bit of knowledge about the company that they're joining, right, generally and that they'll understand their jobs on a day-to-day basis. But the innovation parts, right, is where the Chief Digital Officer will come in. And if the Chief Digital Officer does this well, they can actually have a really big impact on the corporate culture as well which is a huge area that people are focusing on these days especially as every employee is remote. So it's a big job and a big ask and it's going to be really important for companies to hire the person with the best fit for their organization in this new role. >> You mentioned culture and that's something that is imperative but digital transformations won't be successful without the right cultural transformation. But that's easier said than done especially for organizations that have been around a while. And they're so used to the way they've done business for decades that it's hard to change that mindset, but it sounds like the Chief Digital Officer role should be one that is an influencer of that cultural change. How do you see them being able to do that within a, you know, stodgy, legacy institution? What are some of the things that they would be able to unlock? >> They should be able to re-energize portions of the company, right? If you're bringing in innovative ideas into a company that has had some difficulty hiring, right? There's a lot of companies that before the pandemic hit, were only starting to look at agile practices and things because quite frankly they couldn't hire anyone out of college to work there and they were afraid most of their workforce would retire out. So they're trying to get those people that want to be innovative, the high, the people that graduated top of their class. You're going to need the organization to change. And this is a perfect example of somebody that can come in and be a catalyst for all of that. So if they're coming up with new innovative ideas, if your marketing department wasn't transforming into a highly digital marketing department, they can come help invigorate that, right? And come up with a plan to get people in but also to train the people that are there that do want to learn these new skills in order bring the whole organization along with them. And I think they can have a huge impact if they, and get those innovative culture cycles changing. >> I'm curious if you think that, you know, given the last year and the amount of uncertainty that the pandemic has brought to the market, to the economy, now some of the challenges that leaders say, we're still going to have similar challenges in 2021. We still have a good percentage of our workforce remote. Is the role that the Chief Digital Officer can play, is that potentially going to help companies, really, is it going to help make a difference between those companies that really, not just survive this time but thrive like the winners versus the losers of tomorrow? >> I think it can, right? And a lot of this is going to be how the people that hire in the Chief Digital Officer and how much that team is willing to work with them. One of the things that we notice is the companies that do advance their culture a lot and advance in their customer centricity, the leadership level of the organization acts as a team as much as they expect to the frontline crews to act as teams. So you've got to be working together. And that goes all the way through, right? Your HR departments can't be incenting one group to work against another. You can't incent two people to have a goal, you know, to reach a goal in a different way and incent them differently so that they end up working against each other, right? This has to start being a real collaborative effort and it'll end up impacting the entire organization. But it's those companies that start looking at their leadership organization as a team, where they're all playing to make the same goals, to make their customers the most successful they can be. That's when you really start getting those changes and you really see a Chief Digital Officer having an impact versus those organizations where, you know, they'll be on the job for two to three years and it'll just go away because they've, you know, fought against themselves and not form that team culture. >> The impact is, can be tremendous from what I'm hearing. When we think about digital transformation, you know, people, processes, technology, that culture that's so important, we're also talking about that in the context of how do organizations use all their data and make the most sense of it. As more data sources become available, data's coming in faster, how does the Chief Digital Officer align with all of the data folks within an organization so that they can all have access to the right information to make data-driven decisions that are really for internal and externally looking benefits? >> Right, they can help make sense of the data that the company is collecting. One of the main things we're hearing right now is a lot of organizations are collecting a ton of data and they're either, you know, having some organization that creates metrics out of it. And that group just doesn't know really what the business does. They're relatively new to the business as a lot of data organizations are. So they go grab standard metrics and just provide, you know, shove as many metrics out. That's their output point, right? Where they get brownie points for every metric they create. And so we're hearing from a lot of leaders that, that they're getting literally hundreds of metrics a month and they have no idea what they're supposed to be doing with them or what this data is supposed to be showing them. And that's really of no benefit to anybody, right? It's a waste of time all through the organization. So the Chief Digital Officer, again, will be looking at what are the right business metrics to be tracking for that business and be working with those data officers to get the right innovation in so that you can see how well you're transforming, how well your company is actually doing, how much your customers actually do like what you're creating and the impact of the changes that you're making. So another thing we're being asked a lot of is, you know, I'm funding things and I'm being told they'll provide my customers value but when they get released I have no idea if they are, right? And the Chief Data Officer will help, be putting all the metrics that tie that in and showing telemetry gets built in. So that they've got the metrics that you need to truly run your business well. And so again, that'll be another part of the organization that the Chief Digital Officer would be working with. Along with the CIO, they'll be working with the data organizations as well. >> Well, there's so much opportunity that the chief Digital Officer role can deliver and unlock value in an organization as you've talked about. It'll be interesting, Laureen to see what happens in the next 12 months. Do we see what Gartner's predicting, 67% of companies are going to be adopting this role. I'm curious to see what the BizOps Coalition finds in the next year or so but thank you for sharing this insight. And this definitely sounds like a role where every day will be interesting, unique and not boring. (gentle upbeat music)

>> Narrator: From theCUBE Studios in Palo Alto, in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're in our Palo Alto Studios today, talking about a pretty interesting topic. You probably haven't heard of it, but you're going to know a lot of the attributes and it's going to sound very familiar. And that's BizOps, the concept of BizOps. We've heard about DevOps and DevSecOps and a whole bunch of ops, but BizOps is really a new twist and a new way to think about this. And we're excited to have the woman who actually wrote the book on the topic. She's Laureen Knudsen. She's a Chief Transformation Officer from Broadcom. She's also the co-author of the "Modern Business Management: Creating a Built-to-Change Organization", and a founding member of the BizOps Coalition. Laureen, great to see you. >> Great to be here. Thanks so much for having me. >> Absolutely. For people that aren't familiar with BizOps, give us kind of the quick high level. What is BizOps? >> BizOps is a new way of doing business. Just like Agile changed engineering and DevOps changed how we put things into production, BizOps is changing from soup to nuts. So from concept to cash or strategy to execution, right. There's a lot of... This has been talked about for a few years now, but this is formalizing that structure. So what do you need to do to truly have your strategy linked to your customer base? And so it's creating that umbrella over all of these other ops processes that brings it all together to tie the top to the bottom. >> Right. So, DevOps, right, fundamentally changed, the way the software gets developed. There used to be waterfall, it used to be data market's development document and then a product requirements document, then you put together a plan and you code it for six months or nine months, threw it over the Wall operations, and then hopefully they delivered. That doesn't happen anymore. And that was really set forth about 20 years ago when this kind of revolution happened on the software side. So what's been happening on the business side, and why now do they need their own ops to be pulled into this process? >> Well, sort of in the same way that things happened in the late 1990s, where certain organizations started to realize that that wasn't the most efficient way to create software and came together and created the Agile Manifesto. We've realized that there's certain things in doing business that make us much more effective and efficient. Things like bringing a data stream from the top to the bottom so every level of the organization has the data they need to run their business. Having that trust run throughout the organization, having that communication and that transparency from the strategy to the execution. You know, the global economy is just in dire straits right now, and the world is moving faster than ever. And so being able to respond to that change is vital at all levels of the organization. >> So you wrote the book years ago, I'm sure you've speaking to ton of business leaders, you know, as an author of the book, what were the biggest inhibitors to kind of the adoption of these ops and there must have been something, because why then did you found this coalition? What was the, you know, kind of the founding principle behind the coalition? >> Well, a bunch of industry leaders have come together to realize that in the same way that development needed to change in the early 2000s, really business needs to change today. And to your point, we've been talking about this for a while. Different companies are doing it better than others. And the ones that are doing this well are really heads and tails succeeding above the others. So, it's not easy though. It's not easy to change an entire organization and to change the way you do business. So, the coalition is bringing together some principles and values. We've come together to talk about how we're doing business differently and what actually works. And the main things you need to focus on in order to ensure success. >> Right. But you did it loud and proud with this declarative manifesto and then an event, actually, later this month that you're going to have to really unveil the manifesto, October 15th. I think it's 9:00, or excuse me, >> 11: 00 AM Eastern, 8:00 AM Pacific. Manifesto, right? Just the word manifesto, elicits all types of, kind of emotional response and really strong declarative statement of purpose and mission. So, why the manifesto and what's really the key pieces of the manifesto? >> You know, you need the principles that go along to help you change people, process and technology. And a lot of folks are focusing only on the technology and the data that comes from that technology and all that is key and vital to the way that you run your business differently. It's not the only piece. And so we need to focus on how do we get to bring the people along with us, how do we change our processes to be more efficient and effective. And the four values and the principles that we've created as this coalition, really help companies to do that more easily and to know they're on the right track, in the same way that the Agile principles and the values that brought out in the Agile Manifesto did. >> Right. So, I have a preview version here of the values. And I think it is really important for people to stay kind of fundamental values. 'Cause then everything builds from that and if there's ever a question, you can go back to the values as of a reference point. But just to read a few of, you know, business outcomes over individual projects, trust and collaboration over siloed teams and organizations, data-driven decisions over opinions and judgment calls, and finally, learn responded pivot over following a documented plan. And that seems so, right, so simple and so foundational and so fundamental to the way business works today. But the fact that you have to put this coalition together, and the fact that you're publishing this manifesto, tells me that the adoption really isn't where it should be. And this is really a new way to try to drive the adoption of these values. >> Absolutely. I mean, everybody seems to understand that they need to focus on their customers and that they need to focus on outcomes, but you can't just take something, you know, once you have work in progress and say, well, what's the value of this one piece of work. You have to have started at the beginning to come with the right outcome you're trying to meet, and then ensure that you're doing that all along the path to creating that and to bringing that to your customer base. It's focusing on your customers and creating the trust with your customers as well as through your organization. The data is really vital. Being able to run our businesses on real data and know the reality of the situation rather than at status reports that were created by people saying, yeah, I'm done, but there's no definition of done, right? It's fundamentally changing how we do business, which sounds easy. But as we know because of the Agile transformations that we've done and DevOps transformations that we've done, it's not as easy as it sounds. >> Right. So, why not just try to include more of the business people in the DevOps process? Why the strategy to have BizOps as kind of a standalone activity and again, to have the coalition and manifesto, that means it's super important. Can't the business people participate in the DevOps, or why has that not really been effective? >> It's really a different part of the business. And BizOps is a framework that pulls together all of these other operational pieces. So, security, operations, you know, how do you get something from engineering out to your customers, really were DevOps focuses, right? So, that's great. But running your business includes a lot more than your IT organization or your engineering teams. So this really expands out and brings in all of the rest of the business for how you sell software, how you plan, how you fund your teams, how you look at the work from that high strategic level and ensuring that you create that solid pipeline of data so that you truly know the status of any strategy in your organization. I was working with one group who had really good strategies and they had really good execution and they found that they spent over $100 million annually rolling up that data to try and understand the true status of their strategies. So companies are spending and are being very inefficient in, you know, they're spending millions of dollars on trying to do this link where if you just fundamentally change the way you do business a little bit, day to day, you can have that as a natural outcome of your processes. >> Right. 'Cause you've talked about on some of this stuff about using it as a way to do prioritization and to make sure you're not spending money places that you shouldn't. Another thing that strikes me as I go through the principles are, again, things that in 2020 should not be new information, you know, frequent changes, which was not part of the old paradigm. Trust and transparency. And I think you even tied it back into one of the articles I saw, tying trust and transparency really back to employee engagement, which then drives profitability and productivity. So I wonder if you can talk about the role of trust and in your conversations with people, as you've been kind of developing this idea over the years since the book, getting leaders to, you know, to trust their people, to do what that needs to be done rather than managing tasks, you know, manage the outcome, not manage tasks. >> Right. This is really important. Having trust in your organizations, especially today when everyone's remote, right? And in almost every company in the globe right now, most of their employees are working from their houses. You can't really do command and control well when no one is sitting in your building with you. So being able to have that trust to truly trust in your employees, you know, we spend a lot of money on all of these technical folks that we hire, and then we put people in place to try and direct them what to do on a daily basis. And so having... Building that trust within your organization, and it goes both ways, right? Employees need to trust the leadership, leadership needs to trust the employees, but it's not just from the top level to the end level, right? To the team level. It's actually every level in the middle. So this is truly pulling the pieces of work that we've done over the past few years through the entire organization. It's getting rid of what we call that frozen middle, of middle management and making sure that trust is aligned in there as well. And that the communication and transparency is working through that part of the organization. >> Right. Another principle I want to highlight is talking about the role of machine learning and artificial intelligence. Clearly, we all know, right, data's exploding, et cetera, et cetera, and we want to get the data driven decisions. But what this really calls out is that there's probably more data, both in terms of frequency and complexity, than people can really sift through, in terms of finding what they should be working on and what's important and what's not, you know, the classic separating the signal from the noise. I wonder if you can speak to a little bit about the role of machine learning and artificial intelligence, as an enhancer to productivity in this BizOps world versus a threat to people's jobs. >> Absolutely. I mean, like I said already that there's some companies spending $100 million rolling up data on things that computers can do today, even without machine learning and an AI. But when we put that into place, it really doesn't replace people any more than DevOps removed people from the organization. We automated a lot in testing yet we still have test organizations. It's just a different focus and a way of doing business. And this is no different. I'm seeing a lot of companies though start to try and throw all of their data together. And I've recently started saying that they're creating data land fields when they're attempting to create data lakes. And so you really need to understand your data that you're collecting and why you're collecting it and what outcomes you're trying to get from that data so that you can understand your business and you're not just creating, to your point, more noise. >> Right. So let's shift gears a little bit and talk about the event that's coming up on the 15th, about, you know, kind of, what is the role of the coalition? How should people get involved, what's membership all about, and then what can they expect to happen on the 15th? >> We have 10 industry leaders that have come together to author the BizOps Manifesto. And it's everyone from influencers, transformation experts, CEOs of a lot of companies or of organizations. We have people like Evan Leybourn of the Business Agility Institute and Sally Elatta from AgilityHealth, who have come to help author this and are really transformational leaders across the globe. And to get involved, you can go to bizopsmanifesto.org. and you can sign the manifesto. You can align to that if, you know, if you want to bring this into your own organization, we're happy to help work with that as well. So it's a group of industry leaders who are here to help the globe get more efficient and effective in how they do business. >> It's really interesting, right. It's not really an open source project, but it is kind of a co-opetition in terms of, you know, you're reaching out to lots of different companies and lots of different leaders to participate. They may or may not be competitive, but really this is more kind of an industry, kind of productivity thing, if you will, to bring all these people together at the coalition. Would that be accurate? >> It is accurate, but we're also looking to have competitors. I mean, we've... Competitors is an interesting thing today because there's no company just uses one company software, for example, to automate all of their pieces, right? There's all of these products that have to come together and share data today in the same way that we needed to share, you know, access to software. In the past, integrations were really difficult and now, you know, everyone's got open APIs. It's a very similar thing with data today. And so we are working with our competitors and we're working with, you know, like you said, industry leaders. We have Mik Kersten from Tasktop as part of this as well. We're looking at how we can benefit the companies of the world today, much more efficiently and effectively than we have in the past. So it is a group of people who compete with each other, maybe on a daily basis, but also have the same customers and have the need to help companies today, especially in this economy with the pandemic, right. There's a lot of companies in dire straits right now and we all need to come together as business leaders to help those companies get through this time. And anything that we can do to do that is going to benefit us all in the long run. >> Right. You know, it is really interesting co-opetition, is like you say, most companies have everybody's, you know, a lot of different products and people compete as well as having API connections and having all kinds of interesting relationships. So the lines are not so clean, like they used to be. And as we've seen with DevOps, you know, significant delta in the productivity and the responsiveness and the way software is delivered. So, sounds super exciting. We'll look forward to the event on the 15th. I give you the last word. What are you looking most forward to for the big launch in a couple of weeks? >> I'm really excited for people to give us their feedback on what they think and how this benefits them. And I'm excited to help our customers and help the, you know, the big companies of the world get through these next 18 months. I think we're all in for a bit more of a struggled time, you know, at a difficult time, and anything that we can all do to work together. So I'm looking forward to working with other industry leaders on this as well, and to the benefit of, you know, the global economy. >> Right. Well, great. Well, Laureen, thank you for giving us the one on one on BizOps. Really appreciate it. And best of luck to you and good luck to you and the team on the 15th. >> Thanks so much. >> Alrighty. Thank you. All right, she's Laureen, I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music begins)