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It is probable that a CIO is a born leader but it is certain that leadership traits can be inculcated into any CIO. What is needed is the burning desire to learn.
Citation preview
DATA EXPLOSIONWORRIES
CORPORATESPAGE 55
THOUGHT LEADERS
COLLABORATION ISUSER DRIVEN
PAGE 04
I BELIEVE
SUMMER LOVE AND SOFTWARE LICENSING
PAGE 56
VIEWPOINT
TRAITS
A CIO’sLEADERSHIP
A 9.9 Media Publication
Volume 06 | Issue 24
August | 07 | 2011 | Rs.50Volume 06 | Issue 24
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Technology for Growth and Governance
CT
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It is probable that a CIO is a bornleader but it is certain that leadership traits can be inculcated intoany CIO. What is needed is the burning desire to learn.| PAGE 28
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© 2011 JUNIPER NETWORKS, INC.
JN_IN_9dot9_FP_V1.0.indd 7 7/27/2011 1:14:21 PM
editorialPramath raj sinha | [email protected]
1 07 august 2011 cto forumThe Chief
TeChnologyoffiCer forum
editor’s pick
The Captain and the Coach A CIO must
don the mantle of a coach to be an effective leader.
28 Leadership Attributes of a CIOTo come across as a true leader, among other things, a CIO needs to be a good communicator, team player and relationship builder.
At a recent conference on executive coaching, where
i had to deliver the keynote address, i asked the audience what they would like me to focus on. Surprisingly, the most over-whelming demand was for tips on how to convince the top man-agement on the benefits of coach-ing. People still see coaching as airy-fairy or scary — especially in a corporate setting!
And so it goes with Cios and leadership. We at the CTo forum have been evangelising
ingly, one of the most significant roles of Cios as people leaders is that of a coach. While leadership of the technology function calls for the ‘playing captain’; leader-ship of the iT team demands a ‘non-playing coach’. This is also a chicken-n-egg problem. Where is the time to coach when there is so much to do? And, there is so much to do because there is no time to coach your next-in-line.
my own take on this is to break the ‘what-comes-first’ conun-drum by beginning to coach. Chances are, you think you are coaching when you really are advising or mentoring. There are copious definitions for each, but suffice it to say that coaching is different. As an adviser, you tell people what they should do. As a mentor, you serve as a sound-ing board but are biased in their favour. Coaching, by contrast, is always done in the context of
leadership as a no-brainer theme for Cios. it forms the basis of our relationship with you. yet, every once in a while a skeptic will ask: should a Cio be a lead-er? for us, there is no discussion, nor is there a tradeoff. Cios have to be both technology and people leaders. it is the mix of both that will make them the business leaders that their roles demand.
As we focus on leadership attributes in our cover story, it is the people leadership aspect that i want to comment on. increas-
achieving better performance and outcomes, and the focus is on changing behaviours and attitudes.
The differences may be subtle but the interventions are not. As a coach, you have to listen, give feedback, help the coachee figure out for herself how to address a behaviour problem and ensure improved results. These are not easy skills and capabilities to develop. no wonder our mail-boxes are flooded with offers to attend coaching programmes leading to certifications. And, one of these days, it may be worthwhile getting one!
Pramath raj sinha | [email protected]
2 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
AuGuSt 11
Cover Story
28 | A CIO's Leadership Traits It is probable that a CIO is a born leader but it is certain that leadership traits can be inculcated into any CIO. What is needed is the burning desire to learn.
COpyrIghT, All rights reserved: reproduction in whole or in part without written permission from Nine Dot Nine Interactive pvt Ltd. is prohibited. printed and published by Kanak ghosh for Nine Dot Nine Interactive pvt Ltd, C/o Kakson house, plot printed at Silverpoint press pvt. Ltd. D- 107, MIDC, TTC Industrial Area, Nerul, Navi Mumbai- 400706
ColumnS04 | I belIeve: CollaboratIon Is User DrIven users will find tools and techniques to collaborate even if you don’t provide them any. By Jay Kerley
56 | vIew poInt: sUmmer love anD
software lICensIng People may hate licensing but they
still buy software. By Steve DupleSSie
FeatureS48 | teCh for governanCebUsIness relevant InformatIon seCUrIty By rafal loS
Please Recycle This Magazine And Remove Inserts Before
Recycling
Co
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3 07 August 2011 cto forumThe Chief
TeChnologyoffiCer forum
Managing Director: Dr Pramath Raj SinhaPrinter & Publisher: Kanak Ghosh
Publishing Director: Anuradha Das Mathur
EditorialExecutive Editor: Yashvendra SinghSenior Editor: Harichandan Arakali Assistant Editor: Varun Aggarwal
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Chief Photographer: Subhojit Paul Photographer: Jiten Gandhi
advisory PanElAnil Garg, CIO, Dabur
David Briskman, CIO, RanbaxyMani Mulki, CIO, Pidilite
Manish Gupta, Director, Enterprise Solutions AMEA, PepsiCo India Foods & Beverages, PepsiCo
Raghu Raman, CEO, National Intelligence Grid, Govt. of IndiaS R Mallela, Former CTO, AFL
Santrupt Misra, Director, Aditya Birla GroupSushil Prakash, Country Head, Emerging Technology-Business
Innovation Group, Tata TeleServicesVijay Sethi, VP-IS, Hero Honda Vishal Salvi, CSO, HDFC Bank
Deepak B Phatak, Subharao M Nilekani Chair Professor and Head, KReSIT, IIT - Bombay
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40 | next horIzons: e-CommerCe DrIves b2b InnovatIon mobile payments to grow at a much faster rate. By
KriSty J. folKwein
regularS
01 | eDItorIal08 | enterprIse
roUnD-Up
advertisers’ index
JUNIPER IFCSCHNEIDER 05DIGILINK 07IBM 11SAS 13JUNIPER ADVERTORIAL 17SYMANTEC IBCIBM BC
This index is provided as an additional service.The publisher does not assume
any liabilities for errors or omissions.
44 | no holDs barreD: sophIe v. vanDebroek, Cto, xerox, talks about the lessons learnt from her experience at Xerox .
44
a queStion oF anSwerS
14 | Tough To get The right peoplerajiv Kaul, CEO, CMS Infosystems talks about his strategies and how successful he’s been so far as a CEO.
40
14
I BelIeve
currentchallenge
4 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
By Jay Kerley Corporate Vice President and CIO, Applied Materials Inc.The auThor has led Fortune 500 companies through massive change initiatives
including worldwide consolidation of technology and support services.
to build natural and easy interfaces for collaboration so that they come naturally to users.
sTraTeGy Collaboration is the need of the hour. you need to have a strong vision and roadmap around collaboration otherwise your users would get there anyway. They’ll use external tools and capabilities like social networking and personal mail to drive collaboration and effi-ciency. As a Cio, you need to be a part of this collaboration otherwise
you’ll have information management and security challenges which could be hard to overcome.
The ability to collaborate electroni-cally has been complex. Sending, for-warding and storing data in order to collaborate is extremely cumbersome and users need to collaborate in real time. you need to build natural and easy interfaces for collaboration so that they come naturally to users. The collaboration environment needs to be always-on with simple streamlined interface that is not over engineered and doesn’t put burden on the users.
As a first step into our collabora-tion strategy, we recently went for vir-tual desktop infrastructure with the deployment of CAD software over thin clients.
not only does this environment increase the performance by over 60 percent, it also allows us to extend it to other countries and allow near real time collaboration. Previously, in order to do 3D design collaboration, we had to send file as large as 4-5gB and the other person would then have to spend time, downloading it, then work on it, and then send it back. This process would typically take several hours and even days. now, multiple engineers across locations can work on the same file without having to download it and collaborate in real time. This has increased productiv-ity by over 10 percent as now, we can work 24X7. engineers can also work from home, giving them flexibility.
While the project cost was high, we were able to benefit from it since we were able to cut cost by maintaining a single instance of data, reducing the need to store multiple copies of the these huge files in multiple loca-tions, which also led to data integrity management costs. Also, with this project we consolidated our five glob-al data centres into two that also led to significant cost savings.
Collaboration is User Driven users will find tools and techniques to collaborate even if you don’t provide them any.
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1 2 3 4 5Power Modular power distribution and paralleling capabilities on UPS for loads from 10 kW to 2 MW
Physical security A single-seat view for monitoring and surveillance
ManagementEnd-to-end monitoring and management software for greater efficiency and availability
Rack systems Any-IT, vendor-compatible rack enclosures and accessories for high densities
Cooling Rack-, row-, and room-based cooling options for greater efficiency
Introducing Next Generation InfraStruxure Whether you have just acquired a new company or must increase its ever-expanding customer or inventory database capacity, you’re most likely facing pressing demands on your company’s IT infrastructure. Your existing data centre infrastructure may not be able to handle these up-to-the-minute changes. That’s where APC by Schneider Electric™ steps in with its proven high-performance, scalable, data centre infrastructure. As the industry’s one-of-a-kind, truly modular, adaptable, and ‘on-demand’ data centre system, only InfraStruxure™ ensures that your data centre can adapt effectively, efficiently, and, perhaps most important, quickly, to business changes. InfraStruxure data centres mean business We say that InfraStruxure data centres mean business. But what does that mean to you? The answer is simple. A data centre means business when it is always available, 24/7/365, and performs at the highest level at all times, is able to grow at the breakneck speed of business, lets you add capacity without waiting on logistical delays (e.g., work orders), enables IT and facilities to keep pace with the business in a synchronized way, continues to achieve greater and greater energy efficiency — from planning through operations, is able to grow with the business itself, and supports — instead of hinders — business. The triple promise of InfraStruxure deployment InfraStruxure fulfils our triple promise of superior quality, which ensures highest availability; speed, which ensures easy and quick alignment of IT to business needs; and cost savings based on energy efficiency. What better way to ‘mean business’ than to enable quality, speed, and cost savings — simultaneously?
Only APC by Schneider Electric InfraStruxure adapts quickly to your specific business needs The flexibility of the InfraStruxure
architecture:
Extend the life of your data centre. Existing data centres can add on InfraStruxure components to existing architecture and, for increased value, use our management software.
Scale up with step-and-repeat modular architecture for large data centres. Medium/large environments can deploy InfraStruxure as a zoned, pay-as-you-grow, scalable architecture solution.
Turn any room into a world-class data centre. InfraStruxure can be deployed on its own as a modular, scalable, customized solution that’s easy to design, build, and install for small and first-time data centre environments.
Now, align your data centre architecture to your business needs in just seconds
Discover which physical infrastructure management tools you need to operate your data centre… download White Paper #104 today!Visit www.apc.com/promo Key Code 93839t Toll Free 1800 4254 877/272
Classification of Data Centre Operations Technology (OT) Management Tools
Contents 1
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> Executive summary
©2011 Schneider Electric. All Rights Reserved. Schneider Electric, APC, and InfraStruxure are trademarks owned by Schneider Electric Industries SAS or its affiliated companies.email: [email protected] • 132 Fairgrounds Road, West Kingston, RI 02892 USA • 998-5037_IN
CTO_Forum_Magazine_0807_93839t.indd 1 11-7-21 下午5:12
LETTERS
WRITE TO US: The CTOForum values your feedback. We want to know what you think about the magazine and how
to make it a better read for you. Our endeavour continues to be work in progress and your comments will go a long way in making it the preferred publication of the CIO Community.
Send your comments, compliments, complaints or questions about the magazine to [email protected]
WhaT aRE ThE aTTRIbUTES Of a gOOd CTO? WhaT aRE ThE pREREqUISITES fOR a CTO ROLE ?
I see the CTO's role as that of a technology leader bridging the gap between the commercial requirements of the enterprise and the technology support of those requirements. An effective CTO should be able to guide the efficient implementation of IT strategy of the business.RIChaRd WaRd, Head of Technical, WIN Plc
Striking the right Balance
“The CFO is the choice person of the management. He has close proximity to the CEO and the board of directors.”To read the full story go to: http://www.thectoforum.com/content/striking-right-balance
CTOf Connect In a conversation with Yashvendra Singh, Abhilesh Guleria, Country Head- Mul-timedia Product Group and IT Platform Business, NEC India, reveals how NEC is making its presence felt in India. http://wwwthec-toforum.com/content/%E2% 80%9C-future-looks- promising %E2%80%9D
OpiniOn
J S PuriCiO, FOrtiS HealtHCare
CTOforum LinkedIn groupJoin close to 700 CIOs on the CTO Forum LinkedIn group
for latest news and hot enterprise technology discussions.
Share your thoughts, participate in discussions and win
prizes for the most valuable contribution. You can join The
CTOForum group at:
www.linkedin.com/
groups?mostpopular=&gid=2580450
Some of the hot discussions on the group are:The Cloud is all air and no substance
Do you think cloud is going to die a quick death of SOA
or is it going to make big headway into the enterprise? Is
it old wine in a new bottle? What does it lack in making a
convincing case?
Its real and all about today and tomorrow.
However, you have to bring it back to a realistic service
that gives tangible benefits.
There are a great deal of 'cowboy' stories and not many
who really understand it.
—Ronald Kunneman, Director at Digitra
as the CfO encroaches upon the CIO’s turf, there is a need to strike a fine balance between their roles.
A 9.9 Media Publication
Volume 06 | Issue 23
July | 21 | 2011 | Rs.50Volume 06 | Issue 23
TH
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Adopt Cloud at Own Risk, Pace PAGE 38
NO HOLDS BARRED
Top 5 Mistakes on the CIO’s ResumePAGE 18
BEST OF BREED
IPv6 is Your Friend and Your Foe PAGE 35
NEXT HORIZONS
Shrikant KulkarniSr VP & CIO, KPIT Cummins Infosystems
S P I N E
Technology for Growth and Governance
CT
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THE DATA CENTRE
SHOULD BEAS IT
An insight into how power, cooling,
network and private cloud can best be
managed inside the data centre. | PAGE 24
6 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
Bend Insensitive High Speed IPLMS Tough Cabling Multi-Fiber
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MTNL BSNL Toll Free: 1800 180 1707 | Airtel Toll Free: 18001030011
2F Category 6 UTP Cables:A Unique design from Schneider Electric ensures highest level of copper connectivity
even in the most cluttered Network environments of Data Centers and ITeS Industry.
It effectively maintains the data transfer speed by reducing return loses, thus helping
network run smoothly.
PRODUCT FEATURES
1. F² Construction separator form virtual shielded compartments to ensure all four pairs of wires are being properly partitioned off and in good separation for optimum NEXT performance
2. The nonmetallic will not introduce additional electrical ground issue
3. 23 AWG conductors for improved Insertion Loss performance
4. Fully compliant to TIA/EIA 568B Category 6 and ISO/IEC 11801 Class E Standards
5. UL Listed CM Fire rated
CUSTOMER BENEFITS
1. Improvement in return loss, maximizing cable balance and minimizing echo to enhance overall channel performance
2. Provide superior headroom for most robust network & applications e.g. Gigabit Ethernet,broadbandvideo, 3D imaging and other multimedia applications
3. Minimize additional workload for cable installation, termination, and re-work
4. Longer product life and higher product reliability
Schneider Electric offers range of Network Connectivity Solutions
Actassi and DIGILINK
Tough Cabling makes
Life @ Datacenter Easy!!
Even Knots, Twists and Turns do not affect the network connection speed
8 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
Enterprise
Round-up
FEATURE InIsdE
Windows 7 Will Be Running on 42 Percent
of PCs Pg 10
Android’s global share in handset market.
India has highest market penetration for Gmail 27 percent of Google+ visitors are from India.data RElEasEd by comScore shows that the market penetration of gmail in india stands at 62 percent, which is highest in the world. The second highest figures are from Brazil, where the figure stands at 41 percent. The corresponding figure for the uS is 29 percent.
ComScore’s vice-president for industry Analysis, Andrew lipsman, said, “Penetration is defined as the percentage of total home and work internet users who engage in a particular behaviour. i am not surprised that india is the leader for gmail penetration given the market’s general affinity for
google-branded products and services.”gmail’s success in india has also led to rise in
the popularity of google’s newly launched social networking site, google+. According to comScore, 2.8 million or about 27 percent of google+ visitors are from india. The maximum numbers of unique visitors are from uSA, where the figure stands at 5.3 million.
The statistics from comScore also reveals that 867,000 people in the uK visited google+ during the first 21 days of public existence, putting the country in third place behind the uS and india.
48%dATA BRIEFInG
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9 07 August 2011 cto forumThe Chief
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Nokia India, the Gurgaon Traffic Police, the Millenium City Welfare Society, and Denave India have joined hands to launch a traffic management project called ‘3rdEYE’ in Gurgaon. The project is aimed to leverage technology as an enabler to curb traffic disruption in the satellite town.
QUICk ByTE on MoBILITy
LifeSize Introduces LifeSize Passport Connect Leverages both Logitech and Lifesize technology.stRatEGY lifeSize, a division of logitech, today announced lifeSize Passport
Connect, an hD video conferencing system optimised for cloud-based platforms with plug-and-play technology and a price that can enable broader deployments for telecommuters and remote offices.
lifeSize Passport Connect is the first product that leverages both logitech and lifeSize technology. Combining features and capabilities from lifeSize Passport, the industry’s leading price performance and interoperability endpoint, lifeSize Passport Connect includes a logitech hD camera and delivers a video and audio experience that’s open and interoperable.
Today, cloud-based platforms are poised to expand the video conferencing market from the SmB to the enterprise, changing the way businesses use hD video col-laboration. lifeSize Passport Connect is specifically designed to provide a simple user experience when communicating through cloud-based platforms. Because the product also works with SiP-based iP PBX systems, customers can enjoy a plug-and-play, high quality user experience.
Motorola CEO confirmed to Investor Conference that the company isn't opposed to WP7. He believes the mobile patent wars will settle down
—Sanjay Jha, CEO, Motorola Mobility
“I think we’re completely open to the notion of Windows as a platform. Clearly, all of our focus today is on Android.”
They SAId IT
SAnjAy jhA
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10 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
Windows 7 Will Be Running on 42 Percent of PCs Improvements in IT budgets are accelerating Windows 7 deployments.WindoWs 7 will become the leading oper-ating system (oS) worldwide in the PC installed base, running on 42 percent of PCs in use by the end of 2011, according to gartner, inc. gartner's latest PC oS fore-cast shows 94 percent of new PCs will be shipped with Windows 7 in 2011.
"Steady improvements in iT budgets in 2010 and 2011 are helping to accelerate the deployment of Windows 7 in enterprise markets in the u.S. and Asia/Pacific, where Windows 7 migrations started in large volume from 4Q10," said Annette Jump, research director at gartner. "however, the economic uncertainties in Western europe,
political instability in selected middle east and Africa (meA) countries and the eco-nomic slowdown in Japan after the earth-quake and tsunami in march 2011 will likely lead to slightly late and slow deployment for Windows 7 across those regions."
gartner's forecast assumes that Windows 7 is likely to be the last version of microsoft oS that gets deployed to everybody through big corporatewide migration. in the future, many organizations will also use alternative client computing architectures for standard PCs with Windows oS, and move toward virtualization and cloud computing in the next five years.
In June, 4.6 million Internet users in india aged 15 and older accessed the Coupons category from a home or work computer.
"By the end of 2011, nearly 635 million new PCs worldwide are expected to be shipped with Windows 7. many enterprises have been planning their deployment of Windows 7 for the last 12 to 18 months, and are now moving rapidly to Windows 7," Jump said.
Shipments of Apple imacs and mac oS share on new PCs have seen increases in the last 12 months. mac oS was shipped on 4 percent of new PCs worldwide in 2010 versus 3.3 percent in 2008. mac oS is fore-cast to be on 4.5 percent of PCs in 2011, and grow to 5.2 percent of new PCs in 2015. Shipments will grow stronger in mature markets where consumers are buying into the Apple product ecosystem.
"The adoption of mac PCs and mac oS is a result of Apple's ability to grow well above the market average in the last 12 to 24 months, thanks to its ease of use from the user interface (ui) point of view and ease of integration with other Apple devices, such as the iPhone, iPad, iPod touch and the existing Apple ecosystem of applications and programs," Jump said.
The mac oS share still varies greatly by region, as Apple has much stronger pres-ence in north America and Western europe. The fastest growth is expected to happen in selected emerging countries, where Apple and mac oS are growing from a small base.
linux oS is expected to remain niche over the next five years with its share below 2 percent because of the remaining high costs of application migration from Win-dows to linux. in the consumer market, linux will be run on less than 1 percent of PCs, as linux's success with mini-notebooks was short-lived and few mini-notebooks are preloaded with it today.
gartner does not expect Chrome oS, Android or weboS to get any significant market share on PCs in the next few years. Analysts believe that to get any consider-ation as an alternative for a traditional PC, lighter oSs will first need to get strong posi-tions on emerging client devices such as Web books and media tablets. even then, it is unlikely that they will have any impact on microsoft and Windows oS's hold on posi-tions on traditional professional PCs in the time frame of the current forecast. This is because of application compatibility issues and the high proportion of Windows-specif-ic applications within many enterprises.
GLoBAL TRACkER
Growth of E- Coupons
so
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: co
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12 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
Scientist of Indian origin designs nano-batteries To help in smartphones, notebooks and tablets.
PeACe GAme
to most of us a video game
would conjure the impres-
sion of adrenalin packed enter-
tainment, where you blow up
entire spaceships full of evil
aliens, and battle all kinds of
monsters. however, new age
guru Deepak chopra seems
to dwell on some other kind of
video game. his idea of a video
game is of something that is so
serene and peaceful that it will
help people relieve stress and
achieve inner harmony.
With that lofty ambition in
mind, he has spent the last
three years, designing a video
game called “leela.” this game
uses the ancient hindu system
of chakras to teach gamers
how to achieve a peaceful and
focussed state of mind. thQ is
the publisher of the game, which
has been developed by curious
Pictures. leela is set to make
a debut in november and it is
being marketed under the tag
line – “a journey into the self.”
you will need microsoft's
Kinect system for Xbox 360 or
nintendo's Wii console to have
a soothing tryst with leela. inci-
dently, the word leela means
“play” in sanskrit. the game sub-
sumes 43 interactive exercises
that focus on the seven energy
centres of the human body. nat-
urally, Deepak chopra’s spiritual
teachings and philosophies have
a central role to play in the game.
REsEaRChERs led by Pulickel
m. ajayan at rice university, usa,
have managed to package lithium
ion batteries into a single nanowire.
Pulickel m. ajayan did his b. tech
in metallurgical engineering from
banaras hindu university in 1985,
india and Ph.D. from northwestern
university us in 1989.
a nanometre is only one billionth
iBM has announced the creation of the Services innovation lab (Sil), a new global lab that will ini-tially comprise about 200 technology experts hand-picked from around the company. The lab will accelerate the expansion of real-time analytics and software automation in both iBm's technology ser-vices offerings and its global services delivery capa-bilities. The Sil will operate out of iBm research’s labs worldwide, including new york, California, China, israel, india, Switzerland and Brazil.
IBm Announces new Innovation Lab To help clients capitalise on new opportunities.
FACT TICkER
of a metre, if a source of power can
be packed in such a small space,
then mankind could have found
the valuable power for new genera-
tions of nanoelectronics. the team’s
experimental batteries are about
50 micrometres tall, as thick as a
human hair and almost invisible
when viewed edge-on.
in a university statement, arava
leela mohana reddy, study co-
author and research scientist, said,
“the idea here is to fabricate nanow-
ire energy storage devices with ultra-
thin separation between the elec-
trodes.” these batteries are scalable,
as theoretically any nanowire energy
storage device can be as long and as
wide as the template allows.
a reasonably good capac-
ity is being detected from nanowire
devices. the researchers are fine-
tuning the materials to increase
their ability to repeatedly charge and
discharge, which now drops off after
about 20 cycles.
The Sil significantly expands iBm's nearly 10-year-old services research program by bringing together services, research, software developers and industry experts from around the company to focus initially on the creation of services software applications for cloud computing, analytics and mobility. iBm invests more than $6 billion annu-ally on research and development and employs about 3,000 researchers worldwide, with about a third of them focused on services and analytics.
“our singular focus is to help our clients capitalise on technologies that solve problems and create new possibilities,” said mike Daniels, senior vice presi-dent and group executive, iBm Services. “Creation of the Services innovation lab demonstrates how we at iBm differentiate our capabilities vs. competi-tion. We harness the best of what iBm research and development can deliver in science and engineering to help our clients be more innovative.”
iBm researchers, developers and other techni-cal experts who will participate in the Sil have an array of credentials, including development and client experience in computer science, software, security and compliance, data mining, storage, computer systems, user interaction and cogni-tive sciences. The central mission of these elite researchers and developers is to turn the intellec-tual property created during client engagements into software – thereby making it easier and faster to replicate a solution to thousands of engage-ments around the globe.
“The Services innovation lab is creating a research environment that leverages advances in services science, analytics and cloud computing to create innovation that matters for our clients any-where in the world, said mahmoud naghshineh, VP and Director, iBm Services innovation lab.
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A Q u e s t i o n o f An swe rs R a j i v K au l
14 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
What were the key challenges that lay ahead
when you joined CMS?iT industry is really difficult to work in india. When we joined, we had the downturn. i had customers who said, if we didn’t reduce the prices by 20 percent, they’ll go away. We weren’t even making 20 percent profit. But i decided to save jobs at that moment and took a hit to retain the custom-ers. now, that we’ve come of the downturn, salary and other expenses
(fuel, rentals etc) are growing much faster than what the customer is will-ing to pay you.
So, we’re under pressure to man-age margins. inflation is the biggest issue we’re dealing with. There is a lot of opportunity for growth but profitable growth is very difficult in india. Secondly, if you want to work in a clean manner with the right eth-ics, right governance, it is extremely difficult to work in india. i don’t know how long that will take to get
fixed. That is the biggest challenge that any entrepreneur.
Which is the loss making unit in CMS?
for the last year, we made losses in the iT training business. When the downturn hit, we had a lot of centres paying high retail rentals and as there not many jobs, students went down but we continued to have high operation costs like advertising, real estate, employee salaries etc.
Growing Challenge: There is a lot of opportunity for growth but profitable growth is very difficult in India.
R a j i v K au l A Q u e s t i o n o f An swe rs
15 07 August 2011 cto forumThe Chief
TeChnologyoffiCer forum
To renegotiate rentals etc takes time. however, this year, it should be fine.
What were the initial bricks put together to get the right
talent?Challenge for any venture is get-ting the right people. i had started working on it, 3-4 months before the acquisition. yet i wasn’t success-ful because of the downturn since people didn’t want to move to a new company and take risk. So, instead of
hiring senior people, i gave a set of parameters to the existing team and asked them to rate themselves on those parameters over the next two to three months. i told them whatever they’ve done in the past would not be taken into consideration.
i also brought in a lot of young talent and set out these people to undertake some of the very impor-tant projects we needed to do. They had a lot of energy and passion and have been highly successful in the
last couple of years. We’ve also pro-moted them to senior positions. one of them is now heading the sales for our ATm business. he just had about an year’s experience before joining us two years back.
meanwhile, i kept looking for senior people. my first hiring need was that of a Cio because my systems were not in place. We needed some-one who had experience in multiple verticals and we found nitin Aurora who had worked in many different
Rajiv Kaul | CMS InfoSySTeMS
PeopleRajiv Kaul, CEO, CMS Infosystems joined CMS two years ago to do a turnaround of the company. In a discussion with CTO Forum he talks about his strategies and how successful he’s been so far.
””
The RightTough to get
A Q u e s t i o n o f An swe rs R a j i v K au l
16 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
“The toughest job for me was how to take a 35 years old company with deep values and culture most of which is good but some of it needs to evolve.”
it is important
to empower
people to take
responsibility.
You need to
allow good
people to make
mistakes and
learn from them.
input costs
are growing
much faster
than what price
the customer is
willing to pay.
ThIngS I BelIeve In
industries including cash manage-ment industry and insurance.
next we needed a hr head as we have 12000 white collar workers and 12000 blue collar workers who also had unions. So we needed some-one to manage that. We similarly brought in someone with a varied industry experience.
The toughest job for me was how to take a 35 years old company with deep values and culture most of which is good but some of it needs to evolve. Doing that change was one of the toughest challenge for me. moreover, i had to be very careful in bringing in new senior people in the company as everyone has his own style of work-ing, which could potentially upset the existing company culture. We had to be careful in preserving the existing culture by ensuring we’re not very dis-ruptive with new ideas.
How do you take people to the next level? How do you
groom people?i spend a lot of time with people and make sure that these new senior people are grooming their subordi-nates. i personally go on both ser-vice calls as well as sales calls with our people. my people have more
access to me than my family. So we keep coaching people and engage with them proactively.
We encourage people to take responsibilities and ensure that in case they fail we have ways to man-age the situation. it is important to empower people to take responsibil-ity. let them report back on what they are doing but let them take their own decision and handle situation on their own. you need to allow good people to make mistakes and learn from them, instead of firing them for the first big mistake they make.
How has the company turn around worked compared to
what you expected it to be since the year 2009?The turnaround has been below my expectation and i don’t think it’ll ever cross my expectation because i believe in setting the bar very high. But on a realistic sense, we lost a lot of time during the downturn. The customers negotiated hard during the downturn and in order to retain the customer and their long kept relationship with us, we had to take a hit.
But in some of our businesses like the cash management business, it went beyond our expectation because
the overall sector has done well. however, in any business today,
every sector and every industry is suf-fering from margin pressures because input costs are growing much faster than what price the customer is will-ing to pay. And when the downturn ended, customers didn’t do a renewal at a much higher price because cor-porate buying had a fear of what hap-pened last year but my employee costs etc went up and it was really difficult to manage this issue.
overall from the complexity of what we are trying to manage, we did some good investments. We setup our own noC, we’re getting some good cus-tomers, we are getting indian custom-ers to start migrating to a remotely managed service, we got in good tal-ent. We are pretty comfortable where we are but there is still challenge in managing profitable growth.
Don’t you find it challenging to compete against pure play
managed services player in the market?Before we did any investment we hired iDC to do a survey among our customer to understand how we were doing. The first thing that we found from the study was that the customers found us dependable and trustworthy. They felt we were there whenever they needed us.
Second parameter was how did they find our pricing and we saw that most of them found us offering value for money. Therefore we realised it was very important for us to main-tain low cost. That’s why we make sure we spend money very cautiously instead of being flamboyant.
Third was we had been there for long. Considering how many compa-nies shut shops in last two decades in the iT industry, for the customers our brand that has stood over these years was very important.
now, we compete with Wipro, iBm, TCS, hP and hCl. We are not end to end market player. We are very focused domestic market player. So, people like us and trust us for that. Compared
A Q u e s t i o n o f An swe rs R a j i v K au l
to some of these companies, who have both infrastructure as well as application offering, we just have infrastructure offering. our entire company culture is that of infrastruc-ture management company and it is really difficult for me to get into application.
So, if i get a good acquisition opportunity in the application management space, i’ll go ahead and do that. But changing the compa-ny culture is a risk that i don’t want to take.
india is largely an infrastructure market but a lot of decisions these days are being made at the application layer. So, we are trying to be end to end in the infrastructure management space. So, a lot of time and investment is going into setting up a noC.
in the total outsourcing deals that are led by the application layer, we are partnering with several companies that are weak on the infra-structure side. There are enough companies focused only india and have only application offerings and nothing in infrastructure. There are many large companies that can do infra-structure but it is not profitable for them.
The services market in iT is highly frag-mented. The only company dominating is iBm. There is enough space for growth for us in the market.
How are you addressing the government business?
We are not targeting government deals directly and have decided to allow our part-ners to frontface the deals. We are keeping out of state governments because it is a very volatile market with a lot of transparency issues. however, we are going with applica-tion partners for central government deals.
Where do you see yourself going forward?
in the next five years, i would like to see CmS as a large trust worthy institution established with corporate governance and ethics. in terms of growth, we expect to grow to the size of 2,000 crores in the next 2-3 years. We may go to the interna-tional market or look at an acquisition. We
are currently about 800 crore company. internationally, we can go out for rim but not all businesses.
for all of our businesses we have an oppor-tunity to move up on the value chain and also go horizontally on the value chain. for eg. Printing as we see today is a good business but ten years later it could be a very different business. So, we need to do things like docu-ment management etc to move up the value chain in printing business.
i’m very bullish now to get into the public sector, which we neglected so far as it was very difficult to crack those deals.
While some of our competitors out-source work, we don’t do that and that remains one of our uSPs. We’ll continue to focus on large customers who have operations across the country and offer them good service in not just the metros but every location. We currently have about 500 customers. We’ll now consoli-date our business and focus on our core areas of business.
20 07 August 2011 cto forum The Chief
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Best of
Breed
Someone on Twitter recently asked me, “What are the 5 main reasons iT Ser-vice management projects fail." i really didn’t have to give it much thought. After 30 years practicing iTSm the
reasons are pretty much top of mind. So i quickly rattled off the following:
the 5 Key reasons Why It Initiatives failPeople often jump into new projects without a clear understanding of what it is going to take leading to failure. By DaviD Mainville
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FeaTures InsIde
1.no plan2.unrealistic expectations3.Skepticism4.Poor requirements5.not doing the hard workThe more i thought about it the more i realised
that these items are not unique to iTSm at all. They
tele-comuters say they are more productive in their home office
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CIOs should earn More Money and respect Pg 26
Is it Possible to achieve a return on ITIL? Pg 23
21 07 August 2011 cto forumThe Chief
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m a n ag e m e n t B E S t o f Br E E D
can apply equally well to any endeavor, whether it’s implementing a new iT system, rolling out a business process, or something more personal, like embarking on an exer-cise program.
People too often jump into new projects without a clear understanding of what it is going to take. When the project fails they point to external reasons such as “the tool doesn’t work” rather than looking inwards.
maybe this behavior is part of the “human Condition”, however with a little focus on the following five points, your chances of completing any project success-fully will rise dramatically (for argument's sake i'm going to focus on that which i know best: iTSm projects):
1. No plan - Would you build a house with-out a set of blueprints? So why is it that so many companies embark on an iTSm pro-gram without a detailed plan? A good iTSm plan should address issues such as aware-ness, organisational change, process devel-opment, tool selection and implementation, employee training and most importantly on-going process governance.
The more detailed the plan the easier it will be to justify the effort involved.
2. Unrealistic expectations – i am still shocked when i hear about companies wanting to implement 12 pro-cesses in 12 months. There is a lot of work involved in designing and implementing a process. you need to review what’s in place and you need to get the new requirements from all the stakeholders.
inputs, outputs, roles, responsibilities, activities, tasks, metrics and policies all have to be defined and agreed to. The
newly designed process has to be imple-mented in a tool -- and don’t underestimate how long that takes. once implemented you have to train the stakeholders and roll it out and then deal with the fallout from the people that have to actually use it, etc., etc.
The larger the enterprise the more unique requirements there will be. Skipping over these requirements will only lead to a poorly implemented process.
3. Skepticism – how many times have you heard “we have tried that before, it will just fail again” when approaching management or colleagues about improving iT processes? you cannot underestimate the importance of getting people on board.
lack of support, regardless at what level in the organisation, will completely under-mine the program. i’ve seen managers publically support a program while refusing to allow their staff to participate, and then complain because they were not “involved” in the design.
one of the best ways to fight skepticism is not to over commit and to deliver on what you promise.
4. Poor requirements – There has been a recent trend towards trying to implement iTSm tools “out of the box.” The theory goes something like “the tool is based on
iTil, we use iTil so, there-fore, we won’t have to change anything.” With perhaps the exception of smaller iT organi-sations this couldn’t be further from the truth.
let me ask you a question “is your organisation out of the box?”
Ask yourself the following questions: how will the users be defined? What are the
notification groups and rules? What are the workflow requirements? What are the escalation rules? What are the reporting requirements?
These things are seldom “out of the box” and need to be documented and the iTSm tool tailored to accommodate.
Bad requirements lead to a poor iTSm tool implementation.
5. Not doing the hard work – Designing a process is one thing, making sure people adopt it is another. i like to call it “walking the talk.” Take incident management, for example. for that process to be effective it starts with people actually entering good incident data. There has to be good categori-sation of the incidents. escalation needs to be followed. incident aging needs to be tracked and followed up on. metrics need to exist and corrective action needs to be taken. This is where the rubber meets the road, it is where the hard work lies, and no tool is going to do it for you.
governance of the process is every bit as important as having documented processes and an implemented iTSm Tool.
While these are my top five reasons i am sure everyone has their own stories to share. What are some of the things that have impacted the success of your iTSm program? get in touch. i would love to hear them.
—David Mainville is CEO and co-founder
of Consulting-Portal, an ITSM consulting and
ITIL training company focused on helping
Fortune 500 and mid-size companies assess,
design and implement robust ITSM processes.
— This article has been reprinted with permis-
sion from CIO Update. @ http://www.cioup-
date.com. To see more articles regarding IT
management best practices, please visit www.
cioupdate.com.
44%CIOs tO mOve
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ClOud by 2015
larger the enterprise the more unique requirements there will be. skipping over
these requirements will only lead to a poorly implemented process.
22 07 August 2011 cto forum The Chief
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B E S t o f Br E E D t r a n s f O r m at I O n
talking It transformationPolicy-makers and users can operate their state government IT as a 21st century infrastructure. By Ken Oestreich
Think your enterprise is challenged as it struggles to move toward iT-as-a-Service and a shared iT services model? it seems that state and local govern-ments are also trailblasing as well.
recently i had the honor of spending a morning in emC's executive Briefing Center with various mem-bers of a state legislature - and members of their iT staff - looking to learn more about their investment in a Vblock, and how it could enable a shared services infrastructure that could save them millions of dollars while upping services to citizenry.
This was not a technical crowd in the least. These were state representatives with constituencies who cared about things like better services and lower-cost government. But they wanted to know that they'd cho-sen the right horse, the right technology.
But what was fascinating was nobody wanted to drill into the technology... or even really get educated about it. rather, they were simply acutely aware of the opportunity to save money while upping service. They knew that government agency data centers were siloed. They realised how long it took to deliver new iT services. They acknowledged how un-inte-grated inter-departmental state data was. But they all wanted to be part of the solution, to get the rest of the legislature to a point of appreciating the opportu-nity before them.The notes I took might sound familiar: Where do we start? VDi sounds like a shoe-in.
But after that, which departments, offices and data centers should become part of the shared-services model? [What workload migra-tion and roi model should they adopt?] if we do end up saving money, there's the risk that the savings
will be taken away from us - how do we ensure it's plowed-back into innovating and creating higher-level services? [how to meter iT costs? What higher-level services could be proposed to the lines-of-business? how to facilitate iT educating departmental management in what
23 07 August 2011 cto forumThe Chief
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I t s e rv I Ce B E S t o f Br E E D
Is it Possible to Achieve a return on ItIL?Yes, but you have to look at the right metrics and set a baseline. By augustO PerazzO
new opportunities are available?] every office and department feels like they have a
"special iT need" that only their own data center can provide. is that really true? [how to illustrate the ver-satility of a cloud environment? how to guarantee dif-ferentiated SlA's?] With a shared infrastructure, how do we ensure that sen-
sitive information (e.g. the highway Patrol department) is kept secure from prying eyes of other parts of iT... and indeed, other parts of the state government? [how to illus-trate multi-tenancy? security? auditability?]
how can we ultimately simplify the government experience for citizens? e.g. reduce paperwork for driver's licens-ing? Work permitting? unemployment applications? [how to go about merging and analysing structured and semi-structured data from diverse sources?]
While this was not the forum to solve the problems, by the end of the morning we were all happy to have the issues laid-out on the table for discussion. And to have educated the policy-makers and
users that they can in fact operate their state govern-ment iT as a 21st century infrastructure.
The other good news is that this state is not the first to make this transition. A very good initial resource, for example, is from the Center for Digital government - their paper on iT-as-a-Service for State and local gov-ernment which gives a number of very good examples of state governments taking the right steps for the right rationales. There is also an excellent paper published by the uS Department of the interior and their iT Transformation plan.
Stay tuned on more of what iT Transformation makes possible, and how to migrate to a service-based iT organisa-tion.... iTaaS.
—The author is a technology marketer, an EE by training, enlightened a bit
with an MBA. He's spent lots of time at early stage companies, as well as
Sun Microsystems, Cassatt and Egenera.
76%rIse In mObIle
payments
wOrldwIde In
2011
There has been quite a few arguments in trying to prove or debunk that iTil can pro-duce any kind of roi. The pragmatic answer is: yes it
can, but not as easy as iTil guidance can hope for.
let’s step back and define what iTil is. A simplistic view is that iTil is a set of best practices that seek to improve the manage-ment and delivery of iT services. like most best practices or processes guidance, it has been put together by drawing from the collective experience of practitioners and organisations that have tried to solve the iT efficiency problem in the past.
iTil's first version was developed in the 1980s on behalf of the British government. Thus iTil v3, released in the summer of 2007, is an attempt to integrate and system-ise best practices that have been previously loosely applied to the iT service manage-ment (iTSm) domain within the last 25 or so years.
When looking at improving iT service management there are then two main options: try to figure out an effective way in isolation or to leverage an existing frame-work such as iTil (which has been adopted and tested by thousands of organisations worldwide). Chances are that iTil will pro-vide better odds to the challenge.
ItIL roIroi has the following components: Cost of investment (Coi) and results of the investment. A positive roi, which we seek, means that the results should be larger than the investment. Cost of implementing iTil is the investment and the iTSm improve-ments we seek are the results. The chal-lenge then becomes the quantification of iTil costs and iT service improvements.
iTil costs are anything and everything you will spend in order to design and implement your custom iTil solution, including any tools, internal resources and external help. The technical aspects of an iTil implementation are relatively easier to
24 07 August 2011 cto forum The Chief
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estimate and carry on; organisation change management is where the devil works!
Any process improvement program, which an iTil implementation surely is, will carry a high and usually hidden cost for change management (efforts to bring people on board and provide them with the willingness, abilities and capabilities to succeed and to follow and leverage the iTil based processes). your roi calcula-tion must include a good chunk of change for that part of the investment. most iTil implementations fail because little attention is given to the devil’s playground.
It service improvementsTo know how far you have traveled, you need information on both the depar-ture point and the destination you have reached. once you reach a destination, it is relatively easy to quantify where you are: how much time and thus fTes and thus money your organisation spends on man-aging and delivering iT services. The prob-lem is in baselining your departure point before you leave.
most organisations do not have a clue about the true cost of their current iTSm practices (or lack thereof). The assessment,
once you reach your destination, is easier because after an iTil program you should be better equipped to do so.
Because of this iTil roi conundrum, we usually recommend to clients that they embark on a process improvement program -- iTil or other -- using an iterative and a long-term timeline. for example, improve your incident management processes first so that you can start collecting meaning-ful data and measure the cost of incidents and its impact on productivity. improve iT financial management early so that you can calculate the true cost of iT services and so on. once you have basic iT performance information that can be baselined, move on to bigger investments.
in sum, to determine roi, you need to define what the cost to deliver iT services is today, what the cost of the investment to improve is and what the cost to deliver iT services will eventually be once you reach your destination. most organisations with more mature policies around program funding will require a business case before approving the journey. nonetheless do understand that this is only an esti-mate as you will not know for sure how much the investment will cost you and
how much the future cost of delivering iT services will be once you are done.
make sure you have several waypoints defined between your departure and final destination and leverage the lessons you learned from these small trips to calibrate the remainder of your journey. Comparing the estimated roi for these waypoints to the actual roi and the causes for discrepan-cy can provide much valuable information on how to go about the rest of the program and how to reset expectations.
Augusto Perazzo is a Principal Consultant at PA Consulting group. Augusto works closely with Business and iT executives to define strategies and operating models, optimise processes and empower people, leveraging the power of information tech-nology to design and deliver better services and products. Augusto has an mBA degree from uSC marshall Business School and holds iTil and PmP certifications.
— This article has been reprinted with permis-
sion from CIO Update. @ www.cioupdate.com.
To see more articles regarding IT management
best practices, please visit www.cioupdate.com.
Most organisations do not have a clue about the true cost of their current ItsM practices. The assessment is easier because after an ITIL programme you should be better equipped to do so.
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t e l e wO rk I n g B E S t o f Br E E D
telework Worksaccording to staples, most teleworkers are happier, healthier and more productive than their office counterparts.
Teleworkers, defined as people who work from home at least one day a week, are finding their niche as technology and corporate attitudes continue to enable this growing trend.
According to a recent survey from Staples Advantage, the business-to-business division of Staples, telecom-muters say they feel and work better when working from home. in fact, 86 percent of telecommuters say they are more productive in their home office.
As companies become more comfortable with virtural teams and advancements in technology like cloud, broad-band availability, VPns, smartphones, etc. make it easier and easier to be everywhere and no where at once, they are allowing a younger generation of employees to move out of the office and into more flexible work/life arraign-ments, said ed ludwigson, vice president and general manager for Staples Technology Solutions.
it's also a good way for companies to expand capabili-ties and human capital without expanding (and paying for) more office space. This expands their ability to access talent; people who increasingly see no benefit in relocat-ing to do a job and retaining existing staff who need more flexibility in their lives.
According to the report telecommuters say they are:Happier and healthier - When asked to draw compari-sons, telecommuters said their stress levels dropped 25 percent on average since working from home. Almost one in four, said they eat healthier when working from home.More loyal - Without the trek to the office (a 75-mile round-trip for many respondents) 76 percent of telecom-muters are more willing to put in extra time on work and say they are more loyal to their company since telecommuting.Better balanced - more than 80 percent say they now maintain a bet-ter work-life balance.
According to forrester, telecommuting is on the rise; expected to reach 63 million employees in the u.S. by 2016, according to a march 2009 report, u.S. Telecommuting forecast, 2009 to 2016. il
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CIos should earn More Money and respectCIO is among the top players on the senior executive team and should be accorded the appropriate r-e-s-P-C-T and a paycheck. By Bill gerneglia
how many Cios do you know that make as much as, say, their company’s Coo or Cfo. for that matter how many iT
chiefs do you know who sit on their compa-ny’s board of directors. you can pretty much do the math on one hand.
now a few years ago when chief informa-tion’s officer’s responsibilities consisted almost entirely of running the iT shop efficiently, it was difficult -- ok, impossible -- to make the case that they belonged in the top managerial tier in terms of salary or deserved a prime seat at the executive room conference table.
That was then. Today Cios’ responsibili-ties have grown significantly.
Today Cios are in charge of managing vital outsourcing operations. We’re not talk-ing here about supervising some offshore supplier that is performing basic processing
technology Needs in addition to internet connectivity and access to company net-works, key considerations for telecommuters include:Communication tools - Telecommuters said they rely on email (96 percent), instant messaging (68 percent), videoconferencing (44 percent) and unified communications technologies (25 percent) to stay connected.Security - A proactive security strategy can help telecommuters pre-vent data loss, breaches and viruses, which can be spread to company networks. more than two-thirds of telecommuters said they didn't receive iT security training in preparation for home office work.
fortunately, many are applying good judgment and security best prac-tices: 95 percent say they install operating system updates right away and 84 percent don't store personal data on their machines.Data backup - nearly one in three telecommuters say they never back up their data; leaving themselves and their companies vulner-able to data loss. it's important to educate telecommuters on how and when to back up their data. Data backups should be automated and tested to ensure functionality. — This article has been reprinted with permission from CIO Update. @
http://www.cioupdate.com. To see more articles regarding IT management
best practices, please visit www.cioupdate.com.
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and transaction tasks in mumbai. or run-ning a help desk in Bangalore.
Today mission critical apps and critical core functions are being carried out by a third party supplier offshore.
now, you might argue that in farming out iT infrastructure and the like the Cio’s job become easier. not so, the Cio must take the lead in choosing the supplier, negotiat-ing the deal and supervising the work on an ongoing basis. The outsourcing buck stops at the Cios office, but now the dollars amounts at stake can run into the hundreds of millions of dollars.
one other note here: The outsourced port-folio that the Cio needs to oversee contin-ues to grow with BPo recently being added to the mix. Traditionally, BPo was initiated and managed by business heads and kept separate from iT. no longer.
not only is the Cio generally in charge of dealing with and supervising iTo, but now he is also in the driver’s seat when it comes to multi-sourcing and using third party suppliers for cloud computing, vitu-alization and the like. And if the cloud vendor loses key corporate data, guess who is going the be called into the princi-pal’s office.
The Cio arguably has a better in-depth view of every phase of the corporate opera-tions than any other top execu-tive because iT is enterprise wide. it touches everything, and the Cio has the tools, or should have, -- see analytics and Bi – to A) grasp the big picture and B) to act immedi-ately on any change or trend that needs addressing.
oK, he provides the Ceo and, or the Cfo with these same tools, but he’s got to be the expert here.
in the top-down days of yesterday, the Cio ran his little fiefdom as a silo. now, though, collaboration is becoming increasingly com-mon with the Cio at the center of the col-laborate efforts.
The good Cio now not only needs to work hand in glove with the Ceo and Cfo, but he must work closely with risk, compliance and governance managers; the CSo as iT security becomes holistic; marketing as it gloms on to social media to reach out to new customers and the business unit heads and responsibility for BPo shifts.
finally, today’s Cio has to be informed about everything from new security threats to legal concerns regarding to social media use to SeC rulings on data privacy. This is in addition to tracking technology trends, vendor developments, new cost cutting trends and the usual bag of tricks.
This said, i respectfully submit that the Cio is currently one of the top three or four players on the senior executive team and should be accorded the appropriate r-e-S-P-C-T and a paycheck to match.
reactions from CIo Community:1. Agree with your argument. During the dot com era many Cios actually did achieve pay-checks that placed them among the top tier of their company's executive ranks - and they were seen as possible candidates for the Ceo's chair. however, when the bubble burst Cios
saw their status and paychecks slip back several rungs. one can only hope that if the economic rebound lives up to its promise, Cios will be able to take the lead and regain some of that lost status.2. i've long maintained that only 3 execs see the whole firm: Ceo, Cfo and Cio. And while the Cfo sees the vital--but sterile--flows of money, the Cio sees the flows of goods, ideas and processes (within and out-side the firm) and so has the greatest oppor-tunity for insight into possibilities.
By the way, financial Services already values iT and often the Cio or head of iT/operations is one of the executives in the Proxy.3. i fully agree that Cios play a far more critical role these days and deserve more respect + pay.
one counter-point i came across recently is that Cios (and other iT professionals) often tend to "dominate" their end-users with the detailed knowledge of the business processes gained during implementation of key iT systems.
This is not appreciated by senior decision makers; Business managers in the indian egovernance are actively seeking to limit this effect. While some of their steps (e.g., frequent job-transfers) may be seen as short-sighted/knee-jerk, this is something we (as iT professionals) need to reflect upon too.
—This article is printed with prior permission
from www.infosecisland.com. For more features
and opinions on information security and risk
management, please refer to Infosec Island.
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the outsourcing buck stops at the CIos office, but now the dollars amounts
at stake can run into the hundreds of millions of dollars.
A CIO’sLeadership
trAItsIt is probable that a CIO is a born leader but it is certain that leadership traits can be inculcated into any CIO. What is needed is the burning desire to learn. the never-endIng debate on whether leaders are born or made can finally be laid to rest. At least in the context of the CIO. Technology leaders in the country have proved so. Take, Vijay Sethi, CIO of Hero MotoCorp, for instance. He confesses he was extremely shy and reticent in school and even till college -- attributes one wouldn’t associate with a born leader. Similarly, J S Puri, Advisor, Corporate Affairs, and former CTO, Fortis acknowledges that in his student years he was “aggressive and flamboyant but certainly not a leader material.” However, both of them emerged as true blue technology leaders in their careers. Sethi was to shoulder the responsibility of a project leader while just a Management Trainee, and became a Director when just 39 (people become directors when they are 45-50 years of age). Likewise, Puri started giving leadership lessons to management trainees when he was into his first job. While the debate may have been settled, there are several questions that need answers. What is it that separates hardcore technologists from technology leaders? What are the traits a CIO needs to possess that would make him a leader? How can one inculcate and hone leadership skills? Is there a leadership model that has an exact fit for a CIO? The following pages hold answers to all these questions.
Leadership Attributes of a CIO Page 30
INSIDE
“A CIO Should be a Collaborator” Page 33
It's Hard Work Not GeneticsPage 34
Leadership ReadsPage 37
CIO Career Killer: Lack of Influence Page 38
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the term leAdershIp has been widely used. It may have different meanings in different contexts. For a CIO, leadership entails successfully leading people to manage the IT processes within the organisation for delivering the desired busi-ness results.
If one goes by this definition of a technology leader, then in India, according to industry experts, there would be just 15-20 percent CIOs that would make the cut. The other 80-85 percent may don the designation of CIOs but their roles and skill sets make them more of IT managers. These top 15-20 percent CIOs possess certain traits that differentiate them from the rest. While there are several such desirable traits, we will focus on those that make all the difference between him being just a ‘CIO’ and a ‘CIO and leader’.
attributesOf A CIOTo come across as a true
leader, among other things, a CIO needs to be a
good communicator, team player and
relationship builder.By Yashvendra Singh
“I made a promise to myself I should be doing a course every year even though it may not be related to my job.”vijay sethiChief Information Officer, Hero MotoCorp.
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Honesty and Integrity This is the starting point for a CIO aspir-ing for a leadership role. He needs to have honesty and integrity embedded in his character.
“As a leader, people follow you. If you lack honesty and integrity, people will stop believing you. I can’t go and tell everyone that I am honest and have integrity. It should be reflected in my actions,” avers Vijay Sethi, CIO of Hero MotoCorp.
“The best way to show that you are hon-est and have integrity is to be disciplined. Follow the rules happily, and set examples,” says J S Puri, Advisor – Corporate Affairs, and former CIO, Fortis.
“If I am negotiating deals, I have to be absolutely transparent, practical and unbi-ased,” he says. “Strength in character can be seen in your everyday life. It is just the way you behave with people. If my friend asks for my ipad, I should give it to him the first thing in the morning rather than him reminding me again. This is strength in character.”
Team BuildingLeadership is also a way of calling ‘we’ not ‘I’ because no leader is successful as an individual.
“A CIO is a leader only if he accords due importance to his team. He has to con-stantly motivate the team for learning. As a leader, he should be open to new ideas and suggestions and should be willing to tryout these suggestions. A CIO is a good leader if he keeps his team associated in the IT plans and their roll outs,” believes S C Mittal, group CTO, IFFCO.
Sunil rawlani, who has spent close to a decade as CIO and eVP, Business Systems and Technology, at HDFC Standard Life Insurance, had adopted a novel approach for team building. He had started an initia-tive called ‘Coffee with Sunil’ wherein any team member could approach and interact with him. In addition, he had been a propo-nent of outdoor activities for employees for building a strong team.
Clear CommunicationWhen Puri first stepped into the shoes of a CIO at Far east Technologies, his first assumption was to start talking to the man-agement on enterprise technology.
“For the first couple of days, I kept talk-ing about enterprise technology and what should be done in the organisation. Howev-er, when I got to the second and third level meetings, there was no response. It seemed as if I had hit a wall,” recalls Puri. “When I asked them what the problem was, they said ‘J S you are not getting across to us. We just don’t understand what you are saying’. This is exactly the problem.”
“From that point onwards, I decided to talk like a non-IT guy. CIOs need to relate to people,” he says.
When a CIO talks to his management, he assumes there is a level of knowledge float-ing around. However, in reality the manage-ment could be on a totally different plain. It is not imperative that they have a basic understanding of everything happening around them. A CIO, therefore, needs to be a great communicator and be able to send
his message across to the management, his team and the users within his organisation.
Acquiring KnowledgeIt is imperative for a CIO to stay abreast with the latest developments, more so as IT is an extremely dynamic sector. With tech-nology changing at a rapid pace, a leader will have to keep pace with it.
“There was a time a few years back when a CIO could say that he is the only person who knows technology in the company. not any-more. users today know more. Their expo-sure to technology is much more,” says Sethi.
Sethi realised this early in his career. As he says, “I never stopped learning. I did my B. Tech, M.Tech and then went on to do my MBA. In my first job I made a promise to myself I should be doing a course every year even though it may not be related to my job profile.”
“If I am negotiating deals, I have to be absolutely transparent, practical and unbiased.”J s puriAdvisor, Corporate Affairs & Former Chief Information Officer, Fortis.
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This resolve saw Sethi pursuing several unrelated courses ranging from a certificate course on supply chain certification from the uS to one on ISO 9000.
“The seven-eight courses that I undertook not only enhanced my knowledge base but also helped me in relating to the various departments within an organisation. I still spend time on the Internet and attend lead-ership sessions, which help in brushing my knowledge. My personal advice to kids is to study for the first 10 years of their career,” he opines.
Building Relationships According to a research by gartner and Korn/Ferry, by developing people around them, high performing CIOs increase their capability and capacity by developing people all around them. They purposely invest in horizontal relationships which form the
foundation to drive extraordinary results.echoes, Mittal, “A CIO in a leadership
role has to build relationships with users, his own team and with external partners. In today’s time, no person can work in iso-lation. By sitting in his glass tower without having any touch with reality won’t work.”
As CIO of Motherson Sumi group, Van-dana Avantsa makes it a point to spend as much time as possible on the shop floor.
“The shop floor is the place where one can strike a rapport with the users, and understand their problems. One can't get to know about issues sitting in the office cabin,” she says.
This thinking has helped Avantsa to come up with innovative solutions. It was during one of her visits to the shop floor that she noticed precious copper (used in wiring harness) being wasted. The result was the deployment of a home-grown soft-
ware solution that calculated the length of the copper wire. The software sent out an alert when the end of a coil was nearing, thereby enabling the worker to put another coil before it finished. This cost effective solution helped the company in saving 3-4 percent copper.
Planning and ExecutionAbove all, a leader should translate words into actions. He should not just preach but also practice. He has to be practical and realistic so that others take him seriously.
Other hallmarks of a leader include total commitment, a positive attitude and a vision. High performing CIOs are able to detach themselves from IT and look at things more holistically. They realise they are a part of the business leadership team of company, and look at the bigger picture of IT as an enabling tool for the business to achieve its goals.
However, it doesn’t mean that leadership skills can’t be imbibed. Puri and Sethi are just two of the shining examples of what the burning desire, to move away from the pack, from within can lead to.
For Puri, it was in his first job at DCM Data Products that he “sorted himself out.”
“I was aggressive and flamboyant but certainly not a leader material. However, immediately after joining, we had one month of transaction analysis, PAC, and achievement motivation. This helped me sort myself out. It was a trigger for me to look at myself in a new light. I eventually went on to conduct classes for others who joined DCM,” he says.
The trigger for Sethi came in 1989, when he was nine months into his first job at TCS. As his boss left the organisation, the burden of managing the project fell on him. A self-confessed introvert and a shy person, Sethi made the most of the oppor-tunity. The seeds of the desire to become a leader that were sown during his college days got a chance to germinate. This was the start of his journey to becoming a tech-nology leader.
For the 80-85 percent of the CIOs, the only thing stopping them to don the mantle of a leader is the lack of desire from within. The opportunity to prove their leadership mettle could come knocking but the lack of aspiration would let it paas.
“A CIO in a leadership role has to build relationships with users, his own team and with external partners.”s C mittalGroup Chief Technology Officer, IFFCO.
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CoLLaborator”shOuld be A
Laxman K Badia believes the best leadership model that a CIO should adopt is that of a “collaborator.”
lAxmAn K bAdIgA has achieved what most CIOs aspire for. From being the CIO at Wipro, he recently took over as the COO (Chief Operating Officer) of Anthelio. The company is an independent provider of comprehensive healthcare informa-tion technology (IT) services and business process solutions for hospitals and other healthcare providers.
According to Badiga, for a CIO to make this transition to a CXO, he would have to be a “collaborator.”
“The best leadership model for a CIO to follow is that of a collaborator. He has to collaborate and network with the right people to make things happen. externally, a CIO has to strike a rapport with technology vendors, while internally within his organi-sation, he has to convince the management and users on the benefits of deploying a new technology. He should, therefore, be a good communicator as well,” avers Badiga.
Drawing a distinction between a leader and a technology leader, he says, “When it comes to leadership in technology, you need to draw a distinction between technology leaders and technologists. The major dif-ference between the two is that the former keeps track of the trends happening in the industry, and he applies these trends to the benefit of his organisation. He may not be the best technologist but he has the ability
to understand industry trends.”On his part, Badiga, an M. Tech graduate
from IIT Kanpur, handled several profiles, in addition to that of a CIO, within Wipro that prepared him for the bigger role.
“I was never a typical CIO. From a CIO, I became a COO within Wipro, and now I have joined another company as a COO,” he says.
In a career spanning over 29 years in Wipro, he initiated software services in europe, large account management, and creation of vertical services. He also handled global resourcing for Wipro.
“I spent 3-4 years in each of these posi-tions in both technology and management,” avers Badiga.
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Harvey Koeppel, Executive Director, Centre for CIO Leadership talks about what it takes to be a technology leader By Yashvendra Singh
It’s
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Ultimately IT has to add value to the business. How can a CIO, therefore,
exhibit leadership quality when it comes to business?CIOs need to start by leveraging their seat at the table to have a voice at the table. CIOs ultimately need to participate in the ideation and formulation of the business strategy, not just be handed the plan for implementa-tion. They must be considered as true peers within the executive management team. Participation at this level does not just come with the title – it must be earned. It must start with CIOs being able to speak the lan-guage of the business and not expect their business colleagues to understand (or even care about) IT jargon. Conversations should not be about architecture or networks, data warehouses, etc., but must be about lever-aging IT assets to drive revenue, increase earnings per share, customer satisfaction and retention, reducing time to market, etc. Then it is about delivering on commit-ments – say what you are going to do and do what you say and communicate results in business value terminology the c-suite peers can relate to. Of course, all of this presumes that day to day processes and operations are running smoothly and efficiently.
How can he be a leader in the true sense to his subordinates in the IT
department?CIOs need to understand the business vision and be able to clearly communicate that vision across the IT organisation. They need to establish the corresponding IT vision and programmes that support the business vision and demonstrate how major IT programs align with key business objec-tives and have material (hopefully positive) impact upon business outcomes. They need to implement appropriate programme governance structures that carefully balance the needs of their business with the practi-cal considerations and realities of a fixed (and often diminishing) level of resources. Having the right bench strength to support the key IT programmes is critical. CIOs also need to ensure that their own delega-tion skills are sufficiently developed and empower their teams to handle much of the day to day responsibilities to ensure that they have the time to spend with their busi-ness partners, as needed.
Do you feel people are born leaders or leadership traits can be
inculcated over time?In my experience, some people may be born with an intuitive understanding of what it takes to be a leader although most have honed their skills over long periods of time and they have become familiar with the both successful and not so successful expe-riences along the way. Leadership is much more about hard work than about genetics.
What are the critical issues associated with leadership in
general and technology leadership in particular?Leaders, by definition, are agents of change. For most people, change is hard even if the change is desired and the outcome is positive – it requires venturing into the unknown and it means taking risks. good leaders have a clear vision and have the skill to clearly articulate the vision to their stakeholders. Further, they must be able to inspire and motivate their constituencies to do the hard work to move their enterprise in ways that enable the vision. Leadership also requires taking and managing risks. It’s not about avoiding risks – it’s about managing them. If you are not taking risks you’re not making progress. It’s ok to make mistakes, just not the same ones. I always tell my team that “…it is fine to make mistakes, just make new ones. If you make a mistake, acknowledge it, fix it and move on. Don’t hide mistakes – wear them on you sleeve as merit badges that you are proud of – that will almost guaranty that you won’t make the same mistake again!”
Technology leadership is particularly challenging, driven by a few key dynamics. Information Technology is one of the fastest moving industries and is somewhat unique-ly characterised by the continued availability of increased performance and capabilities at lower cost. The pressure to continuously adapt to changing technologies to enable both process efficiencies (expense reduc-tion) and competitive differentiation (rev-enue/earnings enhancement) is significant and non-stop. Continuous change is one of the few constants. Another significant dynamic that characterises IT leadership is the need to inspire, motivate and ultimately influence many constituents who are not
necessarily within their direct sphere of management, e.g. business unit staff, and often are not internal to their enterprise, e.g. supply chain partners.
What does leadership mean in the context of a CIO?
At the Center for CIO Leadership, we have created a Competency Model which describes the core competencies, skills and good practices that CIOs need to acquire and master to advance their profession. The key elements of the model include:
Leadership (articulate, inspire, motivate, coach, develop)
relationship Management and Commu-nication (build trust, credibility, listen, influ-ence, communicate)
Business Management (govern, mea-sure, connect to business value creation)
Business Strategy & Process (under-stand/articulate vision, have end-to-end view of business and customer value creation, mobilize resources, implement metrics)
Innovation & growth (promote new ideas, collaborate with stakeholders, link to business outcomes, develop culture)
risk Management & Compliance (understand, manage, communicate, develop culture)
“It’s ok to make mistakes, just not the same ones. I always
tell my team “…it is fine to make
mistakes, just make new ones.
If you make a mistake, admit
it, fix it and move on.”
harvey KoeppelExecutive Director, Centre for CIO Leadership..
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heritage and legacy guidelines, policies, pro-cesses and systems that support the enter-prise, i.e. “…that’s the way we have done it for the past 75 years…”. Typically, older firms demand that an increased proportion of CIO agenda (budget, staff resources, time and attention) be allocated to maintaining and enhancing the legacy environment and a correspondingly smaller proportion of investment be made in innovation and new development. In many ways, CIOs more than any other executive, except perhaps for CeOs, need to be extremely flexible, adapt-able, courageous and bold.
How does the Centre for CIO Leadership help CIOs to transform
into leaders?Toward this end, we maintain a virtual community of more than 2,500 CIO’s rep-resenting over 70 countries, 45 industries across public and private sectors and small, medium and large enterprises. We work with our community to facilitate dialog exclusively focused upon how to most effec-tively enable the journey.
We start by asking lots of questions and listening to where CIOs see their major challenges and opportunities. We then enact both quantitative and qualitative research programmes throughout our global community, often in partnership with leading academics, research partners and other CIO organisations. Analysis of research findings result in the publication of whitepapers, case studies and drive the con-tent of Centre-produced virtual roundtables, webinars, podcasts, panel discussions and in-person events designed to share insights and help CIOs to identify and implement pragmatic solutions to the everyday issues they face. Our website serves as a reposi-tory where CIOs can access more than 400 pieces of content to help them identify and develop the leadership skills that they need. We also sponsor a Mentor Programme to help CIOs to continue their conversations in a more personalised context.
Additionally, we work with a global roster of leading academic partners to deliver exec-utive education programmes focused upon the Center’s Competency Model and related themes. recent examples include collabora-tions with Harvard Business School, MIT Sloan/CISr, and InSeAD.
IT staff training, education, coaching, mentoring and staff development must be a key priority. IT staff need to have an under-standing of both the business and IT con-text within which they work, they must have knowledge of how the projects that they are working on fits into both the business and IT contexts, and they must have a clear view of how their careers can progress along with the growth of their enterprise.
Can leadership qualities add value to a CIO’s personal life as well? If
yes, how?Leadership skills are not specific to a profession, an industry and are definitely not exclusively applicable to one’s work life. The ability to listen, to understand needs, envision creative approaches and solutions to challenges and problems, add value to relationships, inspire and motivate others and manage risks are essential com-ponents of a healthy and vibrant personal life characterised by rich and meaningful relationships. A satisfying and enriching personal life can also be a significant con-tributor to a successful career.
How can a CIO inculcate leadership qualities?
There is a vast body of research and educa-tional materials available to CIOs to assist in the identification, acquisition and devel-
“having a mentor is an extremely valuable resource that can help guide CIOs through the many challenges that they face.”
opment of leadership qualities. The core mission of the Center for CIO Leadership directly addresses this need. Having a men-tor or coach is another extremely valuable resource that can help guide CIOs through the many challenges that they face. Work-ing with an executive team that understands the value of IT and is supportive of the IT agenda as a key enabler of business objec-tives is also an important aspect of the CIO’s ability to develop their leadership skills and to step into a true enterprise lead-ership role, well beyond the role of manag-ing the IT cost center.
There are several leadership models. Is there one that has an
exact fit for a CIO?We have found no one model that compre-hensively addresses the needs of the CIO in this area. Key considerations for evaluating leadership models and different approaches include: the CIO’s background and current level of expertise, the culture of their enter-prise and its view of how to most effectively leverage IT assets, the industry, geography, and the local and global economic outlook that the CIO is working within. Interest-ingly, we have identified the age of the CIO’s enterprise to be a major factor in determining how the CIO needs to lead and manage. understandably, the older the enterprise the more investment there is in
harvey KoeppelExecutive Director, Centre for CIO Leadership.
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readsThere is nothing more relaxing than a good read. It is even more fulfilling
when the book recharges your leadership skills.
CIOs need to boost critical thinking skills – whether pursuing IT projects, devel-oping an atmosphere of success in your departments or uncovering new strategies for recruiting talent. Some of these tomes will help you hone in on your hard skills. Others titles hit on growth areas that have very little to do directly with IT – such as your ability to cultivate trust, innovate and ask good questions -- yet are crucial to your overall career and management growth.
The InnovaTor’s Dna: Mastering the Five Skills of Disruptive Innovators—By Jeff Dyer, Hal Gre-
gersen, and Clayton M
servIce InTellIgence: Improving your Bottom Line with the Power of IT Service Management—By Sharon Taylor
WhaT To ask The Per-son In The MIrror: Critical Questions for Becoming a More effec-tive Leader and reaching your Potential—By Robert Steven Kaplan
sTanDouT: The ground-breaking new Strengths Assessment from the Lead-er of the Strengths revolu-tion (Available: September 2011)—By Marcus Bucking-
ham, Thomas Nelson
The InnovaTor’s ManI-fesTo: Deliberate Dis-ruption for Transforma-tional growth—By Michael
Raynor
agIle analyTIcs: A Value-Driven Approach to Business Intelligence and Data Warehousing—By
Ken Collier
The econoMIcs of sofTWare QualITy—By Capers Jones and
Jitendra Subramanyam
The TrusT eDge: How Tope Leaders gain Faster results, Deeper relation-ships and a Stronger Bottomline (Available Sep-tember 2011)—By David Horsager
Contrary to popular belief, innovators aren’t
always “born not made.” Discover how to tap into your inner game-changing genius.
This books IT service management tech-
niques guide senior managers to manage service quality, anticipate vulnerabilities, improve reliability and link IT directly to business performance.
Leadership is more about asking good questions than having all the answers. examine how to deploy effective question-ing to diagnose problems and dictate a win-ning course of direction.
Predicting which innova-tions will succeed too
often involves pure luck. "Manifesto" deliv-ers a gameplan that increases the level of true science and data within this process.
A how-to on bringing new agility to data warehous-
ing, resulting in valuable business intel-ligence features and dramatically reduced project risk.
This book reveals how to measure quality, pursue best practices and cost-
justify their usage.—This opinion was first published in CIO Insight.
For more such stories please visit www.cioin-
sight.com.
unleash the capability of your teams with a next-generation strengths assessment.
explore the eight pillars of trust that must be established to effectively lead.
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WhAt dOes A CIO need to be successful? We each have our own answers. Some may say that technical excellence and knowledge counts most, others might place the emphasis on business awareness, relationships or just hard-core ambition. Certainly, all of these are necessary to reach a certain level in an organisation. But to take the final step and be accepted as someone who is truly a member of the C-suite, you need one more thing: influence. Warning: your lack of influence may be killing your career and you don’t even know it.
Do the following scenarios feel like another day at the office to you?
you have a $20 million IT budget, but you can’t get the CFO to approve your $150,000 data mining initiative.
your group has just implemented a $5 million ecommerce system, but you aren’t invited to the business planning meetings for how best to use the new system going forward. The finance group is considering a BI tool that is not the organisation’s stan-dard, and no one from your IT group was invited to the meeting with the vendor. These scenarios aren’t fairy
tales. They are real-life stories, and they are happening every day all across the world.
Most of the time, the CIOs or IT leaders who share these stories with me follow up with their explanation of the prob-lem. It usually goes something like this.
“Our users simply don’t get it. This stuff we do is really difficult. They expect us to work miracles and yet they barely get involved -- except of course to criticise and question our value. We try to set up steering committees and user groups, but somehow IT ends up getting pushed to the back of the queue. Is it any surprise that
they tell us we are out of touch with what they want? They never give us the time to really get in touch with them.”
Welcome to the world of most IT leaders today. A world where you feel challenged to keep up with the dizzying changes in information tech-nology and how to best apply it to your organisations’ needs, all in an environment where
Your lack of influence may be killing your career and you don’t even know it. It is time to reposition yourself as an influential leader in your organisation. By Marc J. Schiller
lACK Of InfluenCe
KiLLer:
18.6%expected caGr
for Global
telemedicine
market till 2015
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your key stakeholders question your value every step of the way.
So, what’s going on? Why are so many IT leaders struggling to “get aligned” with the business and to get a seat at the table? Why, at a time when information technology is transforming the world, are so many IT leaders afraid that their organisations are about to be downgraded and/or their jobs are about to be outsourced?
The answer, as you may have guessed from the headline, is a problem which I've observed time and again: Many IT lead-ers lack the influence they need with their peers, stakeholders and bosses.
Stop. Don’t just keep reading. really stop and consider this point.
Challenge yourself for just one moment to make sense of those words: “Many IT leaders lack the influence they need.” What does that mean? Does that perhaps apply to you too?
Of course you don’t want to think that you have this problem. It’s not a nice feeling. It’s kind of like when the doctor first tells you that you have high blood pressure and you have to lose 15 pounds, cut out salt, and start taking medication. (yes, I know from personal experience.)
In the back of your mind you are thinking: “This can’t be right. I feel pretty good. Over-all things are good. It’s just a few problem areas. After all, everyone I talk to tells me they have these problems.”
Well, I’m here to tell you that it’s time to stop kidding yourself. It’s time to see the real-ity of your situation. And most importantly, it’s time to fix the situation.
It’s time to change this reality for you and for other IT leaders like you. It’s time to start getting the respect that IT leaders deserve.
Why is influence so important for IT leaders?nobody would argue with the statement that the ability to influence others is a useful skill. yet, few IT professionals realise that influence is the key to success for a CIO. Influence is what moves a CIO from a com-petent technical manager to an executive whose work and contributions are valued and who enjoys the respect of the senior leadership of the organisation.
And why is that the case? Because influ-encing others is what IT leaders are paid to do. It’s one of the most essential elements
aspects of the decision. Simply put, without meaningful influence, you can’t do your job of directing the organisations’ investment in, and use of, technology.
Multi-million dollar transformations, such as the implementation of electronic medical record systems for example, touch nearly every aspect of an organisation. In these cases the responsibility for the trans-formation can’t possibly reside with just the CIO. In fact, for such a transformation to be successful, it requires broad-based busi-ness ownership from the start. That’s why leading hospitals often choose the chief of hospital operations or the COO to head up these types of projects.
Often, I hear IT leaders complain that they can’t get proper business involvement. What they don’t count on is what happens whey they really get it. In many ways the job becomes tougher than it would be if they don’t have the requisite influence already in place.
The more involved business executives are in a project, the more influence the CIO needs. With a project firmly rooted in the business (as it should be), your role as CIO — to help ensure the right technology-related decisions are taken -- becomes much more dependent on your ability to effective-ly influence colleagues across the business.
How do you build the influence neces-sary to succeed in your organisation, whether big or small? How do you create a new reality where the value and contribu-tion of IT is understood and appreciated; where your ideas are listened to carefully? These are among the topics we'll explore as we continue this series on the influen-tial CIO.
—About the Author
Marc J. Schiller, author of The 11 Secrets
of Highly Influential IT Leaders, is a
speaker, IT strategist and analytics expert.
Download your free book excerpt at
http://11SecretsforITleaders.com.
—This opinion was first published in CIO Insight.
For more such stories please visit www.cioin-
sight.com.
“With a project firmly rooted in the
business, your role as CIO — to help ensure
the right technology-
related decisions are taken
— becomes much more
dependent on your ability to influence colleagues across the business.”
of the job. Senior executives are constantly making decisions about IT investments:
How much budget should be allocated to IT? Which business unit or project should receive highest priority? Is it worth investing in an enterprise-wide solution or is a point solution more cost-effective? Can we postpone the investment in infra-structure for one more year, when we expect the economy to be stronger?When these questions arise, senior execu-
tives need you, the CIO, to lead the discus-sion and to provide guidance. But you can only fill this role if you have influence. That is to say, when you speak, you need your colleagues to trust you, to believe that you understand them, their business and their strategic priorities and not just the technical
l e a d e rs h i p coVE r S torY
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NEXTHORIZONS Features InsIde
As companies race to take advantage of the mass adop-tion of smartphones and rapid development of new technologies to offer mobile
payment services, executives believe the use of a mobile phone or device to make payments or conduct banking transac-tions will require four years to become widely accepted by consumers, according to a global survey of business executives by KPmg international, a global network of firms providing audit, tax, and advisory services.
The KPmg survey, 2011 mobile Payments outlook, of nearly 1,000 executives in pri-marily the financial services, technology, telecommunications, and retail industries globally found that 83 percent of the respon-dents believe that mobile payments will be mainstream within four years, compared to only nine percent who see them as main-stream today.
in fact, 46 percent believe mobile pay-ments will be mainstream within two years.
"We believe that exploding smartphone growth and myriad opportunities will grow mobile payments at a much faster rate than our respondents anticipate," said gary
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exploding smart phone growth set to grow mobile payments at a much faster rate.
Mobile Payment Going Mainstream
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matuszak, KPmg global chair of the Tech-nology, Communication and entertainment practice, in a statement. "A wide variety of payments is ready for adoption, as several key players already provide or are rolling out mobile payments, and interest among consumers in utilising mobile payments is growing, in line with the industry's readi-ness to deploy them."
most of the executives said that mobile payments are now or will be reasonably important in the future, with specialist online systems building on its leading posi-tion as a payment method, and m-banking and near field communication (nfC) gain-ing significantly greater traction than today. fifty-eight percent said they have a mobile payments strategy in place.
"While there is consensus about the significant value of this opportunity among executives across geographies and industries, the type and size of opportunity varies between developed and developing countries depending on depth and reach of the financial infrastructure in place. We believe that those firms willing to engage in cross-industry partnerships and [cooper-ation] are more likely to succeed and domi-nate the market due to the complex set of business relationships required to deliver mobile payments to a mass market," said matuszak.
While the majority of the business leaders surveyed believe consumers are currently concerned about security and privacy when using mobile devices, they believe other factors are more compelling attributes of a successful mobile payment strategy. Specifically, 81 percent believe convenience and accessibility are the highest attribute, followed by simplicity and ease of use, at 73 percent, security, at 57 percent, and low cost, at 43 percent.
At the same time, busi-ness leaders, globally and in the u.S., view security as the main challenge to developing mobile payments strategies. Technology and adoption of the technology is a distant second, followed by privacy.
"The business leaders understand that when it comes to consumers choosing a provider based on security,
reputation can make the difference, and any damage to a business' brand can prove costly, even to the extent of being a showstopper," said Sanjaya Krishna, KPmg u.S. Digital Services leader in the TCe practice, in a statement. "As a result, leading businesses are adopting multiple approaches to alleviate customers' privacy and security concerns."
"one surprising result of our survey is the absence of divergent views across both industries and geographies, which speaks to the consensus that mobile payment is regarded as an opportunity for play-ers across the value chain of commerce," matuszak said.
Race to leadWith the mobile payments industry poised to make a major leap in the coming years, several players are expected to play signifi-cant roles, though two groups of financial institutions are the current front-runners, say respondents.
Banks, which scored the highest in level of importance in the value chain, and credit card companies will have the most important roles, according to business lead-ers globally. They placed telecommunica-tions companies third, ahead of specialist online payment players (e.g., PayPal, Boku, obopay), online service provider giants (e.g., google, facebook, Amazon), retailers and technology companies.
Among u.S. respondents, online service provider giants placed third, followed by special-ist online payment players and telecommunications compa-nies, which were rated of equal importance, retailers and tech-nology companies.
Mobile payment methodseach of these companies' suc-cess can be tied to the prospects
for the five current payment methods which are battling for a share of the market. The KPmg survey respondents, globally and in the u.S., see specialist online systems leading the pack, due to the fact that this method already has significantly greater penetration than alternatives, and its pene-tration is expected to increase. respondents said that specialist online systems have the greatest prospect for success, followed by mobile banking, nfC, carrier billing and the "mobile wallet." (See definitions below.)
"While KPmg believes that these forms of mobile payment will all gain some traction, our view is that m-Wallet is one of the most exciting and promising payment opportuni-ties. m-Wallet provides the momentum to move beyond payments to participate in the entire chain of mobile commerce, from con-sideration and brand awareness to purchase after-sales loyalty and care," said Tudor Aw, Technology Sector head, KPmg europe, in a statement.
M-wallet – uses mobile device as a wallet with account and transaction information stored on the devices' Sim card.
M-banking – Provides for direct access to bank services and information via the mobile device.
NFC – A short-range (millimeters) wire-less communication technology that enables exchange between devices, such as between a cell phone and a point of sale device at a checkout counter.
Specialist online systems – online pay-ment processing systems such as google checkout and PayPal.
Carrier billing – Purchases are charged to the mobile phone bill.
—This article has been reprinted with permission
from CIO Update. @ http://www.cioupdate.com.
To see more articles regarding IT management
best practices, please visit www.cioupdate.com.
57%people believe
security is key
for successful
mobile payment
strategy
Respondents said that specialist online systems have the greatest prospect for success, followed by mobile banking, NFC, carrier billing and the “mobile wallet.”
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E-Commerce Drives B2B InnovationIf you want your organisation to use technology to drive business value, these four tips are for you. By Kristy J. FolKwein
As e-commerce becomes more of a business strate-gy than a productivity tool, Cios are playing increas-ingly important roles in
business growth and achieving a competi-tive advantage.
Take the airline industry, for example, where Cios have transformed business models, reduced costs and boosted conve-nience for travelers. Today, airline passen-gers are booking tickets, selecting seats and obtaining boarding passes online. When they get to the airport, passengers use electronic kiosks to check in.
Airline Cios have aligned incentives with desired behaviors by making the automated options more convenient than waiting for a person to provide assistance. Bypassing middlemen, such as travel agents, has also reduced costs. even with recent tussles between airlines and online booking sites, travelers benefit from iT advancements.
While many industries have been quick to utilise e-commerce, the chemical industry has lagged because of the required back-end investment in a sound business strategy and an integrated iT plat-form. my organisation invested in an SAP-based global iT platform more than 20 years ago, so when market forces required us to offer more choices, we were ready.
We developed a Web-enabled business model in an industry with few online options. The result was the creation of the XiAmeTer brand in 2002, designed to offer high-quality but standard silicone products online at market-based prices. The business model is highly efficient due to its Web-enabled order platform and stream-lined services. in contrast, our traditional Dow Corning brand offers customised solutions, product innovation, technical support and new specialty products.
my role includes ensuring that the online experience of our
XiAmeTer customers matches expectations, and that the Web-enabled brand operates effectively and efficiently. The business model utilises strict business rules -- a powerful factor in e-com-merce -- to streamline the ordering process, consolidate orders and improve inventory management, which help keep operational costs low. There also are multiple self-service options, including access to product information and prices, online ordering, order tracking and order histories. our global iT platform provides the backbone.
The online brand requires a completely different internal culture and way of doing business. if the XiAmeTer brand were to custom-ise orders or offer technical support for product applications, as the Dow Corning brand does, cost savings would be limited since staff time would increase and complexity would grow throughout the supply chain.
Today, more than 30 percent of Dow Corning’s business is con-ducted online, up from virtually zero before 2002. in my role as
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Cio, i’ve been able to support the brand’s success through strategic iT investments, an integrated enterprisewide business strategy, and an application interface that is convenient and easy to use. having the internal mandate and discipline to enforce the brand’s strict business rules has ensured that efficiencies are realised.
Based on customer research, we expanded the online brand in 2009 to offer more products, a new order-entry platform with greater self-service functionality, and the option to buy directly from local distribu-tors. The XiAmeTer brand now appeals to three customer segments: those who are attracted by good prices;
those who like the convenience of 24/7 availability of information and ordering; and
those for whom security of supply is most important, since they can lock in longer-term contracts.The business model is considered innovative in the chemical
industry since it is based on smart customer segmentation, provides a new channel to market, offers a new way to interact with custom-ers, and ensures an easy-to-use, self-service format.
The takeawayno matter which industry you’re operating in, the lessons we learned during the course of this project will be relevant to you. Cios are in a unique position to drive business success as never before. if you want to position your organisation to use technology to drive business value, these four tips are for you:
1 Be innovative and risk-taking in utilising iT strategies to find new ways to address customer needs. Due to advancements in Web-enabled tools and services, Cios have an unprecedented opportunity to drive corporate strategy. Success requires maintaining a broad, holistic view that utilises iT to empower innovation.2 make regular investments in the global iT infrastructure to stay
ahead of customer requirements. recognise that a new generation of consumers is comfortable with purchasing online, and these indi-viduals are now embarking on careers in the business world. They’ll drive the adoption of B2B e-commerce. The same people are moving into purchasing departments, and they are comfortable with—and many prefer—to do things online.3 Create and enforce clear iT policies throughout the organisation
to prevent adoption and utilisation of renegade iT solutions that don’t support corporate iT strategy.4 Tailor iT strategy based on customer research, audience segmen-
tation and market needs. That kind of rigorous methodology and thinking will help shape your company’s future and positioning to meet customer needs along the value chain.
—Kristy J. Folkwein is vice president and CIO at Dow Corning. Send your
feedback [email protected]
—This article has been reprinted with permission from CIO Update. @ http://
www.cioupdate.com. To see more articles regarding IT management best
practices, please visit www.cioupdate.com.
advts.indd 56 12/22/2009 3:02:47 PM
N O H O LDS BARR E D So ph i e V Va n d e b ro e k
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Lessons for the CIo
GoinG Global:
So ph i e V Va n d e b ro e k N O H O LDS BARR E D
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not only in document outsourcing but also business process and iT outsourcing.
our services-led transformation has helped millions of end-users.We process over 900 million health care claims each year. our call centres handle 1.5 million phone calls each day. We process 11 million students loans annually. Almost 10 million employees and retirees are served by our human resource services busi-ness and transportation authorities in over 30 countries are now served by us; we process over 37 billion pub-lic transport fares each year.
What is the most important lesson you’ve learnt around
how research supports this transformation?yes, you have to make sure that your investment areas are aligned with the future direction of your company. let me share with you our four major innovation investment areas.
our first innovation focus area is in robust processes and platforms that allow us to implement agile business processes for our clients so they can reduce costs, be more productive and simplify ways of getting work done.
our services innovation automates processes that previously were done manually. We are creating business processes that can recognise, sort, edit and store all forms of informa-tion faster and more accurately. our services are platform-based, becom-ing more and more cloud-enabled and they allow mobile workers to access the information they need no matter where they are (today we have mobile print). one example is in our eDiscovery business where our soft-
ware now allows automatic categori-sation of millions of documents such that lawyers no longer manually need to go through each document.
Secondly, we are investing in capabilities that allow us to harvest knowledge from information. mak-ing sense of unstructured informa-tion has been a core competency of our researchers for many decades. Just look at your own communica-tion streams (email, linkedin, face-book, Twitter) to grasp the informa-tion explosion trend. one zetabyte of information will be created or shared in 2011 alone. This is a trend that is accelerating and will increase 40 fold in the next decade.
Thirdly, we’re investing in advanced technologies that improve the efficiency, economics and rel-evancy of personalised business communications and printing appli-cations. our innovations extend from affordable ubiquitous colour print-ing, easy cross-media personalisation to individualised labels, packaging and personalised products.
lastly we are enabling the Sustain-able enterprise. Advanced technolo-gies can minimise the environmental impact of business processes and document management. We are doing this in several ways. We are minimising the environmental footprint of enterprises by using advanced software to reduce the number of imaging and we are investing in solid ink technology which has 90 percent less waste than laser printing. We are also investing to significantly increase the life of the product components; and switching to a renewable resource base for ton-ers and inks.
Sophie V. Vandebroek, Chief Technology Officer, Xerox Corp. and President, Xerox Innovation Group in a conversation with Harichandan Arakali, discussed the lessons learnt from her experience at Xerox as the company transformed itself into a technology-services-led organisation.
DoSSier
Company:Xerox Corporation
EstablishEd:
1906
hEadquartErs:
Connecticut, US
produCts:
Printers, Copiers,
Scanners, Projectors,
Displays
EmployEEs:
136,500
How important is the India market for you?
india is a market that global compa-nies can’t afford to ignore. i also see indian corporations engaging with the rest of the world more ambi-tiously than ever before.
it is a very exciting time and also a very challenging time for Cios. Xerox’s own story over the last few years holds some lessons for indian business and technology leaders. Xerox today is global, we are on every shore. The Xerox research Centre india, inaugurated last year, is our latest addition to the global research centres. The Centre is also an excellent example of how Xerox transformed itself from a technology-driven to a services-led company. We are tapping global resources, serving global customers, and continue our unshakable commitment to research and development.
Is it important to constantly transform yourself as a
company?yes, definitely. As the world changes around you, your company has to change. for example, over the last few years, Xerox has made significant changes in the legacy perceptions of our brand. many companies talk about transformations. We’re doing it and it’s a lot of fun for us and a great opportunity for our clients:
Two years ago, 25 percent of our revenue came from services. it’s now 50 percent. Two years ago, we were a $16 billion company. This year, we’ll top $23 billion in revenue.
Today our core competency extends well beyond the document, to busi-ness services, giving us leadership
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What are your recommendations on how to quickly build competencies
in these new areas?you need to create open innovation net-works. These networks are relevant no matter what your company does. open innovation is at the core of how our research is conducted here in india. We bring together researchers in india with scientists and engineers from across Xerox and partner with leading academic insti-tutions, research labs, and industry part-ners. An extensive fellowship and intern-ship program complements these open innovation partnerships.
Xerox research takes place around the globe; let me highlight some of the key com-petencies for our other four research cen-tres, most of which work in close collabora-tion with the Xerox research Centre india.
located in California is the Palo Alto research Center, or PArC. A decade ago, PArC was incorporated as a wholly-owned company, which allows them to perform leading edge research for Xerox as well as other global clients. researchers are lead-ers in enterprise computing, services sci-ences, renewable energy, work practice, and natural language processing linguistics and much more.
located in rochester, new york, is the Xerox research Center Webster. it houses our core competencies in workflow auto-mation, digital imaging, and next genera-tion printing systems.
Just outside of Toronto is the Xerox research Centre of Canada, where we focus on materials science and chemical engineering and where we make sure we
have state of the art toners, inks and mate-rials in our digital systems.
nearly 20 years ago, we established the Xerox research Centre europe, located in the technology-rich grenoble area of france, to create innovative document technology and drive the corporate transition in becom-ing a services-led technology business. This centre’s core competency includes work practice analysis, linguistics, machine learn-ing, data mining and software engineering.
in addition to the Xerox Centres, we collaborate closely with our joint venture partner fuji-Xerox in Japan on several research, technology, product and go-to-market programmes.
Any other lessons you want to share?
Success in each of your key investment areas is closely tied to being where your customers are. our investment in the emerging markets is an outstanding example of that principle. it is all about being sensitive to local nuances, under-standing what works and what shouldn’t be imposed, and hiring the best local people. Before inaugurating the research centre in india last year we didn’t have a research presence in the emerging world. Doing so is critical to truly understanding the wishes and worries of clients we serve within india and the emerging world and to cre-ate solutions to address these pain points and dreams. The india research Centre's charter is to explore, develop and incubate innovative document solutions and servic-es for our global customers, with a special focus on emerging markets.
research activities are aimed at exploring and developing innovative document man-agement solutions for emerging markets by bringing Xerox’s world-class expertise in imaging, smart document management, linguistics, and ethnography to address locally relevant problems. An equally important focus is on leveraging the latest technologies and paradigms such as cloud and web computing, human computation, social networks and computational econom-ics to advance innovation in solutions and services delivery for Xerox’s global markets.
The research lab in india mission is to fundamentally understand the market quickly and give Xerox the opportunity to innovate in the emerging market. We need to be agile in understanding the customers’ needs by partnering with the right people. So, the researchers and our partners here are our eyes and feet on the street. They are our link to the local customer.
What are the key challenges in doing research in India?
one issue is talent. There is still a short-age of talent in engineering PhDs and high-end computer sciences. Both aca-demic institutions and the multinational companies in india want highly qualified people. A win-win here was to partner with the best minds in india. This gets back to my first lesson about creating strong open innovation partnerships. Today we have partnerships with leading technol-ogy schools: with the iiTs in Kharagpur, madras, and Bombay. We also have a part-nership with iiSc Banglore, and one with iSB business school.
“There is still a shortage of talent in engineering PhDs and high-end computer sciences in india.”
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Only three things matter in a business, the top line, the bottom line, and measuring your impact against business KPIs. By Rafal los
POINTS5
Security iS not
disconnected with
business
Security, when done properly, can
help an organisation
reach market faster
implementing a full SSA programme
can save the
company money in
the long run
meaSure the impact of what you
are doing against
business KPIs
it iS important to
measure the impact
of the top line,
the bottom line on
business KPIs
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at
Ion
BY
an
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Business RelevantInfoRmatIon SecuRIty
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i know, this isn't an easy ask, but just trust me on this a moment.
When you're working for a business only two things matter... the top line and bottom line. Translated into normal speak that means you need to contribute to the busi-ness in one of two ways: help the business make money (adding to the top line) help the business save money (managing the bottom line)if you're not working to one of those two
goals, you're wasting company resources. nothing revolutionary here, right?
Consider for a moment the security prac-titioner's mental process.
What we do...As security people we want to protect, defend, and implement things that make the world safer from those evil hackers. right? But why? What are we protecting... and against what? more importantly... why?
See, we've been talking about how to bring security and the business closer... but what we're realising through some extremely well-done coaching is that the point isn't to bring them together because... well, they're the same thing.
Security isn't somehow disconnected from the business... it's part of the business. When we fail to see that, to acknowledge that, then we lose - and by we i mean the entire commu-nity, the organisation and you too.
The bottom line on the top lineContributing to the corporate profit (top line) is difficult. how can a group that's traditionally been the cost center, taking in money but never really making it, help the company earn more?
There are many innovative ways depend-ing on whom you ask - but i like my story about how app security software testing can be used during m&A activity to negotiate a
more agreeable acquisition price - that helps contribute to the company top line.
Security, when done properly, can also help an organisation reach market faster - and that always contributes to top-line profits. i could keep going, but i'll invite others to share in the comments of this post how they help contribute to the top-line of a their organisation.
no matter how you do it, this is one of the two ways to be truly part of the business... and not acting like a bolt-on. This is what you should be working towards, as your pri-mary motivator.
now, knowing this, look at the list of projects you've carved out for your security team for the year - and ask yourself... how do these projects align with business objec-tives, and contribute to the top-line of the business?
An interesting comment was made on a call today..."A retail store manager doesn't ask themselves how they should contribute to the top-line of the business, it would be silly..." So i ask you - why don't we think this way?
The bottom lineThe bottom line is a little less trick, but not necessarily less difficult to contribute to. if you can't help the company make money, then help it save money. Sounds rational, right?
here's the deal, even if it's dif-ficult to connect the dots, imple-menting a full Software Security Assurance (SSA) programme can save the company money in the long term. how? software built more securely is more likely to be resilient in other ways - more available implementing security mea-sures in development keeps costs of re-work down
yearly costs associated with 'fire drill' will go down drastically more coherent use of technology reduces 'shelfware' and wasted capital spend ...and on, and on, and on - you get the ideaSo... in the long run, helping do things
securely, that is right, is the smart thing to do, and it will save the company money, period. you can contribute to that - you just have to measure it. oh, right, this brings me to my next point...
Measure it or it didn't happenToo many security practitioners implement wonderful cost-saving measures, and pro-grams that help the top-line ...but because they fail to measure these things appropri-ately it's as if they didn't happen. That's unfortunate!
remember that the business has certain KPis (Key Performance indicators - which i've talked about before!) that it measures success or failure by. But how do you know what to measure against?
Think about what the business cares about - then measure the impact of what you're doing against that. look at your board-level directives, the things the compa-ny cares about beyond the simple "making a bigger profit" (because not every business cares about simply profits, trust me...) and find innovative ways to measure against those KPis.
if you're a hospital, one of your goals may be to have a higher survival rate for your emergency room. how does your software security assurance programme contribute to that? i can think of at least a half-dozen ways right off the top of my head... can you?
The final, final wordSo, in the end, it's about three things. The top line, the bottom line, and measuring your
impact against business KPis. Ask a friend, find a mentor, or join the group dedicated to it... doesn't matter how you get there, just get there. your business and your career depends on it. —This article is printed with prior
permission from www.infosecis-
land.com. For more features and
opinions on information security and
risk management, please refer to
Infosec Island.
Take off your "Security hat" for a moment... and pretend you work as everyone else in your organisation.
s e cu r i t y t E cH f or G oVE r NAN cE
87%organisations
are looking
at building a
social media
policy
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t E cH f or G oVE r NAN cE pr i vacy
preferences specified by the user.The authors configured their search engine to calculate privacy
warnings based on a website’s sharing of personal financial infor-mation, purchase information, or personally identifying informa-tion; a website’s refusal to allow a user to remove the user’s personal information from marketing lists; and a user’s inability to view her personal information on a website.
Three groups of participants (two control groups and one test group) using the modified search engine were told to search for products online and purchase those products using their own credit cards. All participants were instructed to purchase both an eight-pack of Dura-cell AA batteries and the “Pocket rocket Jr.,” a vibrating sex toy.
Both products average about $15 including the cost of shipping and are widely available online. one control group did not see any privacy meter icons when they searched for the products to pur-chase. The other control group saw the icons, but was told that the icons merely indicated websites’ “handicap accessibility” - a charac-
Consumers are more likely to pur-chase products from online retail-ers who are protective of consumer privacy, according to researchers
at Carnegie mellon university.The study, entitled “The effect of online Pri-
vacy information on Purchasing Behavior: An experimental Study” found that the availability and accessibility of information regarding online retailers’ privacy practices can affect consumers’ decisions to purchase products online.
interestingly, in contrast to the commonly held view that consumers are unlikely to pay for privacy, the study indicates that “when privacy information is made more salient and accessible, some consumers are willing to pay a premium to purchase from privacy protective websites.” Busi-nesses that address privacy into the design of their products and services are less likely to face consumer and regulatory backlash or incur the costs of remediation. yet businesses may ben-efit in another way from protective and consumer-friendly privacy practices - the results of this recent study indicate that such practices may be leveraged as a selling point.
The experimentmany websites use machine-readable codes that tell a browser their pri-vacy policies - such as whether a website sends cookies and with whom the website shares personal information gained from those cookies.
Websites commonly use Platform for Privacy Preferences (P3P) compact policy “tokens” such as “niD” (no identified user information collected), which represent a standardised privacy expres-sion defined in P3P specifications. The authors of the study used a modified version of Privacy finder, a search engine that annotates a user’s google oryahoo! search results with “privacy meter” icons.
Privacy finder generates these icons through an automated analysis of the P3P policies of the websites a user visits. These icons graphically represent how well a website’s privacy policy matches
Capitalising on Privacy PracticesStudy indicates consumers will pay for privacy. By DaviD Navetta
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51 07 August 2011 cto forumThe Chief
TeChnologyoffiCer forum
pr i vacy t E cH f or G oVE r NAN cE
Security Management for StartupsBusiness Threat Modeling (TM) is a practical way to assess the operational risk for a startup. By DaNNy lieBeRmaN
teristic chosen as a control condition because it’s considered to be generally irrelevant to most online consumers.
The test group saw the icons and was told that the icons indicated the degree of websites’ privacy protections. All participants in the study could access merchants’ privacy policies by clicking on privacy policy links displayed on the websites they visited.
The results of the study offer new insight into consumers’ valu-ations of personal data and online behavior. Control group partici-pants generally purchased their products from the websites offering the lowest prices.
in contrast, test group participants - who saw the pri-vacy meter icons and knew that the icons represented the level of privacy protections utilised by the websites - were more likely to make purchases from websites offer-ing medium or high levels of privacy, even if those sites charged higher prices for identical products.
Additionally, participants demonstrated that they would spend an average of 59 to 62 cents more to buy the same product from websites offering stronger pri-vacy protections.
The take awayhow can businesses capitalise on these findings? The study suggests that businesses that incorporate "privacy by design" into their online business models help promote greater consumer awareness of and con-trol over personal information, attracting privacy-conscious consumers.
Developing and implementing a website privacy policy is one aspect of the “privacy by design” framework – how a business collects and handles data online is more transparent with a privacy policy in place.
While displaying a privacy policy is a good first step toward transpar-ency, 70 percent of people surveyed by the Annenberg Public Policy Center of the university of Pennsylvania disagreed with the statement that “privacy policies are easy to understand.”
Accordingly, if a merchant seeks to promote its online privacy practices in order to boost sales, consumers must be able to identify and understand the merchant’s privacy practices for those practices to affect consumer behavior. Typically, however, online merchants display only small links to their privacy policies at the bottom of
their websites. As such, privacy policies are often over-looked by consumers.
recently, the federal Trade Commission and consum-er advocacy groups have been advocating just-in-time notice as a means of making information about privacy practices more transparent and accessible to consum-ers. The results of the Carnegie mellon study seem to confirm the benefits of this approach. The study indi-cates that purchasing decisions may be affected when privacy practices are presented to consumers in a user-friendly fashion when they are browsing online.
The study also suggests that businesses “may use tech-nological means to showcase their privacy-friendly priva-
cy policies and thereby gain a competitive advantage” and “maximise profits.” Specifically, “if the adoption of P3P increases, businesses protective of customer privacy may be able to attract consumers by posting their P3P policies and signaling good privacy practices.” —This article is printed with prior permission from www.infosecisland.com.
For more features and opinions on information security and risk manage-
ment, please refer to Infosec Island.
85%cios are building
processes
to capture
confidential
data
We normally associate the term “small business” or Sme (small to medium sized enterprise) with
commercial operations that buy and sell, manufacture products or provide services – lawyers, plumbers, accountants, web devel-opers etc…
however – there is an important class of small business operations that is often overlooked when it comes to information security and is the technology startup. A high tech startup is an Sme by all defini-tions – usually less than 50 employees but it doesn’t buy and sell and neither does it provide professional services.
unlike other small businesses, a high tech startup is almost purely focused on product research and development. Almost all start-ups have a very high percentage of software development. even if the startup develops hardware – there is still a strong software development focus.
intuitively – one would say that a primary
52 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
t E cH f or G oVE r NAN cE s e cu r i t y
concern for a startup is iP (intellectual prop-erty) protection and that starts with protect-ing source code.
Counter-intuitively this is not true. There are two basic reasons why source code leakage is not necessarily a major threat to a startup:
1) if the startup uses foSS (free open source software), there is nothing to hide. This is not strictly speaking correct – since the actual application developed using foSS has immense value to the startup and may often involve proprietary closed source code as well.
2) A more significant reason that source code leakage is of secondary importance is that a startup iP is invariably based on a combination of three components: Domain expertise, implementation know-how and the implementation itself (the software source code). The first two factors – domain expertise and implementation know-how are crucial to successful execution.
The question of how to protect iP still remains on the table but it now is reshaped into a more specific question of how best to prioritize security countermeasures to protect the startup’s domain expertise and implementation know-how.
Prioritization is of crucial importance here, since startups by definition do not generate revenue and have little money to spend on luxuries like data loss prevention (DlP ) technologies.
Software Associates works exclusively with technology and medical device devel-opers and i’d like to suggest a few simple guidelines for getting the most security for your money:
The startup management needs to know how much their information security measures will cost and how it helps them run the business. Business Threat model-ing (Tm) is a practical way for a manager to assess the operational risk for the startup in dollars and cents.
The advantages of the business threat modeling methodology are: Threat modeling places the focus on asset management and Value at risk reduction before acquisition of informa-tion and security technologies Threat modeling helps select the right countermeasures often prioritiz-ing monitoring before active data loss
prevention (for example)
Threat modeling, when done right, quantifies risk in dollar terms. This is particularly important when reporting back to the investors on exposure to data loss of iP Threat modeling helps justify invest-ments in security, compliance and risk management to the manage-ment board – sim-ply because it puts everything into financial values – the value at risk and cost of the security portfolio.These are similar
objectives to grC (governance, risk and compliance) systems.
The problem with most grC (gover-nance, risk and com-pliance) and erm (enterprise risk management) systems is that they don’t calculate risk, they make you work hard and they’re not that easy to use.
i think that we can all agree that the last thing that a hi-tech startup needs is a system to manage grC activities when they’re work-ing to make the next investor milestone.
Startup management needs a simple security management approach that they can deploy themselves, perhaps assisted with some professional consulting to help them get started and get a good feel for their exposure to security and compliance issues.
how does a practical security manage-ment methodology like this work? Well – it works by using common language of threat modeling.You own assets – for example, expensive diamond frakelry stored at home. These assets have a dollar value.Your asset has vulnerabilities – since you live on the ground floor and your friendly
german Shepherd knows where the bed-room is and will happily show anyone around the house.
The key threat to the asset is that an attacker may break in through the ground floor windows.The countermeasures – are bars for the win-dows, an alarm system and training your dog to be a bit less friendly around strangers with ski-masks.using countermeasure costs, asset value, threat probability of occurrence and damage levels, we calculate Value at risk in financial terms, and propose an prioritized, cost – effective risk mitigation plan.
That’s it – adopt a language with 4 words and you’re on a good start to practical securi-ty management for your high tech startup. —This article is printed with prior permission
from www.infosecisland.com. For more features
and opinions on information security and risk
management, please refer to Infosec Island.
Practical security management tactic works by using common language of threat modeling.
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53 07 August 2011 cto forumThe Chief
TeChnologyoffiCer forum
ce r t i f i cat i o n t E cH f or G oVE r NAN cE
I Am Certified - You Are SecuredHow did the industry come to rely on certifications as the “de-facto” anything nowadays? By J. oqueNDo
Mustering up as much arrogance as i pos-sibly could, i slowly inhaled in order to make my chest stick out, fixed my tie and uttered “i am certified, you are secured.”
Knowing damn well i could not make good on that promise, it sounded good and for a second there with my who-knows-how-many certifications, i almost believed myself.
Aside from lying to my client, i also lied to myself but its all good because the money is in the bank and i'm walking out the door.
Being certified alludes to me having a clue and fully understanding all of the finer gears inside the machinery of the company i just performed security work on. not only do i not need to prove that i can actually do anything productive, i can provide in-depth critical coverage of any subject or question i am asked. i know this all too well from many-a-nights of cramming security content down my throat while studying to make more money.
Security? i don't care for it. i learned a long time ago that companies do not want security. They do not want assurance, they simply want a framework to ensure that they did no wrong. my goal is simplified ten-fold and my aim, ensure that someone on the C-level can cross their T's dot their i's and get on with their game of golf. obvi-ously golf is the only association to the word Ping many will ever come to know.
now many reading this are wondering how did it come to this. What is he saying, security heresy!!! The reality and fact of the matter is, industry made me what i am. in fact, recruiters and hr personnel without a cause made me this way. you see, a long time ago, i sought to defend networks from attacks.
i spent many hours on end studying attacks, counter attacks and developed accurate and robust methodologies to prevent attackers from “owning” your asses, however, you wouldn't listen.
I can't think of how many talented and uber smart security professionals I have
met without the certifications.
At the time i didn't have my CiSSP or CiSm or CiSA or CCie and the reality is, none of those certifications have anything to do with penetration testing. none has anything to do with deploying fire-walls, none have much to do with anything as their either too broad or too narrow. i told you then and you wouldn't listen.
you the business owners forced me into a corner like a dog and Illu
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54 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
t E cH f or G oVE r NAN cE ce r t i f i cat i o n
gave me a few options: CiSSP, CiSm. only when i sought one of these options would i be able to effectively: 1) configure firewalls and Siem 2) properly perform penetration testing 3) perform net-work audits 4) perform network and security assessments.
forget the fact i had been successfully doing so for years without them, businesses doesn't need security, don't be fooled. Businesses need to imply they took the appropriate security measures. Cross those Ts and dot those i's.
no longer would i have been able to deploy routers, firewalls and iDS like i had been doing during the course of normal business hours for years. i now need my CCie to do so, forget the fact that i could configure, deploy and troubleshoot them – again i have been doing so for years – management needs to prove that i can do so.
So why not hire a candidate who could read a book, memorise content, pass a test and call it a day? Wondering if the colors will wow and impress those coming into this conference room. i'm hip, i'm in the game and did i forget to mention – i am certified? not only that, when you see my bill! how else do you think i got this ClS55 Amg?
So how did we get here? how did security come to this? While many read this initially performing the obvious facepalms, the real-ity is, this is where many companies have gone when it comes to security. Who is to blame? is it the certification vendors doing what businesses do – marketing and making money?
is it the human resources departments that throw certs like the CiSSP, CiSm, CiSA or CCie into a position whenever the word security comes into play? is it the individual who now has to pass a test just to get a foot in the door? Where is the industry headed? obviously certifications aren't the cure. While they may help, they aren't the cure.
imagine for a moment i was interviewing for a position at your company. Scratch that, i aimed high and walked away with a PhD. What experience do i actually have? realistically speaking, by the time i finished up school for a PhD, technologies would have changed at least three times. So what are you getting out of me as a business by hiring me?
With zero experience in the field, never touched any-thing enterprise outside of a rental car, honestly, what are you getting? This is not to knock anyone who earned their PhD, any degree or any certification, this is merely a “hello, what are you thinking” kind of question.
There are many talented individuals both certified and not certified. how did the industry come to rely on certifi-cations as the “de-facto” anything nowadays? once upon a time, workers would apprentice in a shop, study hard for years to master a trade, perhaps take some form of
exam to be called an “expert” or earn a certification. nowadays, all one has to do is dig around for content related
books, study to their heart's content, pass an exam, slap on an “i'm Certified – you're Secured” label and businesses are content with this. There is no value to this type of security, there never was and there will never be. for those still facepalming, reality is what it is.
i am unsure how many times i have met someone with enough certifications to fill the backside of their business card. i am also unsure of those that i have met, that i was able to gauge they knew little about what they were talking about when it came to security. i am further unsure of those i have come across, how many forums i have seen them cross post for “wares” on passing another test.
They aren't doing it to learn how to secure an infrastructure prop-erly, they're doing it so they can retain their jobs in some instances. These are guys that are likely in some of those companies that were recently compromised. you know, the lockheeds, etc., where those companies outright buy every single available CiSSP seat in DC.
When i think about the flip side of this, i can't think of how many talented and uber smart security professionals i have met without the certifications. These are those that are likely in “the trenches” having worked in either a noC, SoC or some other capacity of iT. Systems administration, engineering and so on. Same holds true for individuals who hold those certs. i know of many a CiSSP who really have a clue [3] and likely got their certifi-cation because of marketability.
in any event, back to the matter at hand, i am truly certified. i ended up having to get certified to see what all the hooplah was about. it took me 12 years after the fact to even bother taking a cer-tification exam, but that's irrelevant. i can now give you my clients piece of mind as i move on into hTml certification.
After all, i want to make sure their html code is in order. They're sure lucky they chose me too. i am Certified – They are secure. here is my bill, here is your pie chart, see on the 18th hole.
—NOTE: This rambling was not meant to attack any-
one holding any certification. I merely used the industry
standards CISSP, CISA, CISM and CCIE for the purpose of
formulating an opinion.
This is not an attack on any individual however, if it touched
a nerve, then it was likely you who it was targeted at. I do
not hold the CISSP [2], CISA or CISM and don't care for
them. While I make mention of the CCIE, that is an alto-
gether different story, please re-read its use.
—This article is printed with prior permission from www.infose-
cisland.com. For more features and opinions on information
security and risk management, please refer to Infosec Island.
Nowadays, all one has to do is dig around for content related books, study to their heart's content, pass an exam, and slap on an “I'm
Certified – You're Secured” label.
18%organisations
have ways to
collect sensitive
info in the
company
55 07 August 2011 cto forumThe Chief
TeChnologyoffiCer forum
ThoughTLeaders
“IT purchases are still made in silos versus the real business users who will make use of the data.”
Let us have a look at some quick facts. There is almost 9 petabytes of data being generated everyday, which means that information on this plan-et almost doubles every 1000 days. Almost 85 percent of the data is unstructured. There are a trillion connected devices. There are fifty billion archive tags and each tag is going to have some information captured in real time. And all this is going to be stored on a server device or a storage device. This entails there will be a major fall out on storage. Today, with people being mobile, there are more information cre-ators than ever before. This leads to duplication and creation of multiple formats of data and each user has different ways of storing data. This complicates things. Today, a pen drive can carry 64 gB of data. There is a problem in terms of storing, retrieving and archiving data. The key thing remains that information and data have two crucial aspects – their storage and security.
in a survey we asked corporates, what was the business outlook for the next year? They said it was good, which meant that they were expand-ing. They also revealed that they would be spending more on storage.
dollar but they want to spend provid-ed they can take informed decision and calculated risks. but then the same blame game come up.
So in the end there is a problem of a business user and a data profes-sional. So who will take the first step?
iT purchases are still made in silos versus the real business users who will make use of the data. This results in a viscous circle which is never ending. it starts with wrong data going and the manager eventu-ally taking decisions on his instincts rather than through Bi.
Sadly, there is not a single solution to this. The last thing first. it is a journey. To be a part of this journey, you need to restrict. These are poli-cies and procedures that a company follows. i was talking to a guy in a iT corporate who told me they had a policy of restricting the size of their email -- the incremental size of the email should not be more than this. As an effect the user would be delet-ing their mails on a regular basis. They would especially take care of deleting their junk mails. Corpo-rates would have to adopt filtering, Archiving, De-duplicating and Com-pressing technologies. They need to keep traveling on this journey.
There could, therefore, be a 5-10 per-cent increase in data, which would also put a burden on its security.
The scenario in the storage industry today looks like a potter’s wheel wherein there are two forces at work. one force is spinning the wheel while the other is giving shape to the earth. There is an explo-sion in the information and devices which is motoring the wheel. Add to this our vendors – hP, iBm and Dell – who have put extra force and given a shape to the industry. in 2010, six vendors made 12 acquisi-tions and the entire industry is in a turmoil. Dell alone made three acquisitions. netapp, and emC too grew by means of inorganic growth.
What does this explosion mean to businesses and to iT? it leads to to the traditional blame game between business and iT. The former says he is doing the job perfectly but it is the iT department that is not making the data available to him timely, which leads to poor prediction. Business wants to deploy Business intelligence (Bi) solutions. Their grievance of lack of information from Bi still persists.
it is a no brainer that businesses want dollars. however, there is a catch. They want to hold on to the
seepij gupTa is a Senior Analyst with
Forrester Research
Seepij Gupta | [email protected]
Data Explosion Worries Corporates There is no single-point solution to managing data, it is a never-ending journey.
VIEWPOINT
56 07 August 2011 cto forum The Chief
TeChnologyoffiCer forum
AbOuT ThE AuThOr: Steve Duplessie
is the founder of
and Senior Analyst
at the Enterprise
Strategy Group.
Recognised
worldwide as
the leading
independent
authority on
enterprise storage,
Steve has also
consistently been
ranked as one of
the most influential
IT analysts. You
can track Steve’s
blog at http://www.
thebiggertruth.com
A WhIlE ago, Vmware announced some new licensing information. To be completely honest, i have no idea what those announcements were. i do know that they were met with loathing, frothing vitriol. People were all bummed out to say the least.
mark Bowker, eSg’s resident virtualisation god and all around mellow guy, is going to explain what they did calmly and rationally (how boring!) shortly, so i’m not even going to attempt it. instead, i have other thoughts.
1. All software companies are hated for the way they license. really, which companies are loved for their licensing eXCePT those who give their stuff away free?
2. As a general rule, we hate suc-cessful companies because they are, well, successful. They tend to be that way because they make money from us–via their licensing policies. if they gave free stuff, we would love them.
3. This outcry is not unique to Vmware. microsoft, ora-cle, CA, etc. all face the exact same contempt. maybe because
and yet everyone still buys. That’s power. let’s face it, if you could go elsewhere, you would. But you can’t, so suck it up and deal.
you can buy/borrow/steal other hypervisors. But you won’t. unless Vmware goes too far, which i’m pretty sure it hasn’t. it is going to make money. Deal with it. you will bitch and moan, but then you’ll send Vmware a check. life will continue.
yesterday, netflix sent me a notice that it was changing its licensing policy–again. Six months ago, netf-lix told me i should stop getting my three physical disks a month plan for $15 and change it to one physical disk plus unlimited online access for $12. i said, “super!” i still needed physical access because netflix has yet to put some “new” disks online … like the exorcist, or Jaws, or any of the Star Wars episodes my nine year old watches incessantly. now, netflix has decided that if i want to keep get-ting any physical disks, i need to pay double. evil, yes. moral? no. Am i going to dump netflix? no frigging way. i’m going to pay. Bastards.
i’ll remain jealous.
Vmware was “free” not too long ago and now makes billions, we’ve developed an over the top hatred for them.
4. This has been going on since time began. i still remember people hATing Veritas for its confusing licensing scheme in 1994. hated it. Bought a zillion dollars worth of its stuff, but boy did they hate doing it!
now, it is conceivable that Vmware has become evil, but i doubt it. it is probably doing whatever it is doing for some entirely logical reason–and my guess is we will find this to be the case in short order once the lunacy dies down. or, we may find Vmware screwed up, but it doesn’t matter. if it did, it will either correct it or open the doors to customers going away–and while i’m not that smart, i know that Vmware is–so i suspect that won’t happen.
i love to make larry ellison/god jokes, but truth be told, i’m enor-mously envious and jealous of the awesome power he has amassed by selling a product for huge amounts of money that no one is happy paying
Summer Love and Software
Licensing People may hate licensing but they still
buy software.
Steve DupleSSie | [email protected]
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SEP12_210x318_CRN.indd 1 2011/7/29 16:07:06