The Revenue-Generator CIO and Operational Decision Management
cheryl wilson 270003VHSH firstname.lastname@example.org | | Tags:  business-rule-management business-rules business-strategy operational-decision-mana...
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This recent McKinsey interview with the CIO of Coca-Cola -- Driving the top line with technology: An interview with the CIO of Coca-Cola -- is another reminder of the strategic importance of aligning business and IT for top line growth. It discusses how Coke is using technology innovations to improve marketing, sales and operations. In the interview, Steinike comments:
It’s not enough to be an operational back-office CIO running the systems. It’s also not enough to be a process CIO reinventing the supply chain and transforming support functions. Important as those two roles are, they need to be complemented by what I call the revenue-generator CIO or business-level CIO.
To become a revenue-generator CIO requires a close, relevant partnership with line-of-business. It requires the ability to bring ideas to the table that effectively integrate business and technology in support of top line growth.
comes to technologies that integrate well with business to support top line
growth, I would be remiss not to mention Operational Decision Management
(ODM) technology, with its strong roots in business rule management systems. It qualifies as a top line technology for two main reasons:
1. It gives business users safe control over their operational (“run-the-business”) decisions so they can respond when they need to respond.
ODM does this by enabling LOB users to participate directly in the business policy and decision management process, while also separating decision changes from the application development lifecycle. By enabling this separation of concerns, business teams can implement decision updates more frequently in response to new business opportunities and risks as they happen in partnership, not in frustration, with IT. This is important because in order to make the right operational decisions at the right time -- a top line advantage -- frequent updates to operational business systems are required when the business policies and objectives that apply today no longer apply tomorrow.
2. It makes business strategy real.
ODM does this by allowing organizations to connect the “What to do” (strategic decisions) to the "How to do” (tactical decisions) to the “When to do what” (operational decisions). For example, if one of your business strategies is to increase market share by XX% over 2 years, one your tactical decisions might be to increase customer acquisition. Using ODM, you can make these strategic and tactical objectives real by implementing “best pricing rules for new customers,” as just one example.
ODM helps to make business strategy real by allowing you to capture and infuse business policy and subject matter expertise into the hundreds, thousands or even millions, of operational decisions that impact every interaction you have with customers, so that decisions around eligibility, product pricing and recommendations, loyalty, delivery, service, etc. are in line with strategy. It also ensures that these run-the-business decisions are made consistently and accurately across all channels – whether they're automated or the recommended actions or policies are made available to guide human decision making at the point of interaction.
So, as Steinike points out, it’s no longer enough to focus on processes or systems, it’s about how technology can help to operationalize your business strategy for top line growth. Operational Decision Management was made for this.