Published on the 01/06/2016 | Written by Donovan Jackson
Being a CIO is all about focusing on what matters – and most of that isn’t about technology…
That’s Wilson Alley’s take on his position at premium wine producer Delegat Group. Presenting at next week’s CIO Summit on the topic of FMCG and disruptive technologies, Alley said the discussion is not a case of ‘just add water’ to successfully take advantage of the disruption raging all around.
“The thing is, when technologies are disruptive, there is risk; you can’t just pick a winner – and, very importantly, you also have to run a business,” he noted.
“The thing is, when technologies are disruptive, there is risk; you can’t just pick a winner.”
“In our case, our active supply chain is longer than that of Fonterra, though the scale obviously isn’t the same. We do everything from the grapeseed to the glass, so we could be dealing with a vineyard manager in Marlborough at 7am, then engaging with an account manager in New York moments later. That presents a whole glassful of [operational] responsibilities.”
However, right now he believes there exists perhaps that “once in a decade” opportunity to genuinely change non-ICT businesses using ICT.
“Some commentators are saying that the combined impact of current ICT megatrends will have as significant an impact on global standards of living as the Industrial Revolution. It is hard to argue with them,” Alley explained.
“There are things happening now that are a revolution for industries of all kinds, but you have to pick the right ones which are most relevant to your particular business to get traction, gain benefits and establish a platform to further leverage.”
His approach to dealing effectively with the potential risks and rewards which come with disruption is straightforward: absolutely stick to the knitting. “We don’t write programs and develop software internally; we haven’t had a network engineer for five years; we don’t have a SQL database guy. These things don’t manufacture and market premium wines, which is what we do. Instead, we buy these services from organisations that make them their own core competence and competitive advantage. There are no new opportunities to get out from the bottom end of the stack [infrastructure], so we look to create capabilities in areas where we can make a difference.”
Delegat’s technology roadmap, Alley explained, has in recent years focused on its enterprise system. With that now largely established and ‘business as usual’, and supporting 60-70% of its business processes on a single platform, he said the company is busying itself with a refresh out to 2020. “It is a happy coincidence that the disruptive technologies- these megatrends- are so front of mind for industry right now, and they are strongly influencing the new roadmap,” he confirms.
That includes a focus on digital, brand and advertising. “Simply put, we don’t make more sales out of having a fancy network. Sure, do it wrong and it is a potential source of competitive DISadvantage, but those things are just utilities,” Alley stressed.
Where he sees a particular bright spot for a business with such an extended supply chain is the internet of things. “We’ve got guys accessing pump controllers from their mobile phones to change irrigation rates on vineyards – and that’s just one small example of what can be achieved, especially in asset-heavy, long supply chain businesses like ours, so full of as-yet untapped machine level integration and big data opportunities. “
The point, Alley reiterates, is that CIOs have to look for wins where it will matter. “You need to be clear about what you need to be good at. You need to identify and focus on the capabilities that drive your competitive advantages and use ICT to fulfil it; unless your business is ICT, that’s not what you should be focusing on at all.”
CIOs have to look for wins where it will matter. “You need to be clear about what you need to be good at.”
Wilson Alley is presenting at the CIO Summit, taking place on 8-9 June 2016 at Auckland’s Sky City Conference Centre.
