Making It As A 21st Century CIO"

Making It As A 21-st Century CIOAlex CullenVice President And Research DirectorForrester Research

February 28, 2008

3Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Theme

Technology is moving outside of IT’s control —

CIOs’ one choice: Partner with the business to stay

ahead of the change


Agenda

• How are frustration and opportunity conspiring to drive greater technology control in business orgs?

• What does the business need from IT leaders to be successful at BT?

• How will IT leaders successfully respond to enable business success with BT?


Agenda





Business is certain about technology’s importance – but isn’t as certain about IT’s capability

Technology will be a core component of our products and/or services

Technology will be central to how we differentiate ourselves from competitors

“How strongly do you agree or disagree with the following statements about the perception of technology's importance in your business in 2010?”

IT enables technology to be a core component of our products and/or services

Strongly AgreeStrongly Disagree

July 2007 North American and European Business Technology Online Survey

Online survey of 186 business decision-makers

IT enables technology will be central to how we differentiate ourselves from competitors

“How strongly do you agree or disagree with the following statements about your perception of how effective IT is at meeting your business's expectations?”


… and it reflects in IT priorities

Which of the following two statements most closely describes your company's philosophy toward IT?

Technology is a differentiator

Technology is used primarily for efficiency

July 2007 North American and European Enterprise IT Management and Governance Phone SurveyPhone survey of 503 IT decision-makers

IT Drivers for 2008, ranked by

importance

1. Get application projects done on time and on budget

2. Improve infrastructure services

3. Reduce costs of the business with IT

4. Reduce costs within the IT organization

5. Improve IT value management and communications

6. Support regulatory requirements

7. Increase the capacity of IT

8. Address staffing and skills needs

9. Improve transparency to business of IT costs, business demand and capacity

10. Increase company differentiation with IT


Business organizations are frustrated with IT

• Businesses are impatient with IT’s speed

• Firms can’t govern technology populism

• Technology allows users to out-pace IT projects

IT’s design-build-maintain approach isn’t working!


New technologies enable business users — without IT

• Tech populism — blogs, wikis, IM, handheld devices

• Assembling, composing, and configuring — business process management (BPM), information workplace (IW)

• Contracting — Software as a service (SaaS), business process outsourcing (BPO)

• All based on increasingly robust IT infrastructure and operations


Business Technology (BT) is rapidly emerging

► Pervasive technology use that drives business results

BT is a fundamental change in technology management — not another pendulum

swing from centralized-to-decentralized IT


Business organizations play roles previously in IT

Base: 186 global business executives

28%

34%

26%

28%

21%

30%

3%

3%

4%

3%

3%

2%

31% 25%

25% 15%

27% 19%

36% 24%

38% 24%

32% 21%

3%

3%

3%

10%

7% 16%

6% 19%

5%

12%

10%5%

Defining or designing the solution

Directly selecting vendor-offered solutions

Directly negotiating with and/or directly managing solutions

vendorsDirectly configuring solutions to

deliver what you need

Directly managing the technology solutions once in production

Directly managing projects with substantial technology involved

Completely other business areas’ (not IT’s) responsibility

More other business areas’ responsibility

Equal mix of other business areas and IT

More IT’s responsibility

Completely IT organization’s responsibility

Don’t know

Source: July 2007 US The Business View Of IT Online Survey


IT has to balance the two aspects of increased business control

Business control is risky . . .

• Information integrity and consistency

• Assuring compliance, security, policy, and privacy

• Quality assurance

• Execution performance

. . . but business control means opportunity

• User-driven speed

• Business agility

• Networked business models

• Founded on IT excellence


Agenda





Traditionally, IT handles the entire technology stack

Stable foundation and commodity technologies

Transaction systems, data warehouses — RDBMS, BI

platform — storage, servers — data center ops,

desktop maintenance

Dynamic and differentiated technologies X Internet,

multichannel, mobile, SOA


But with BT, business people deliver solutions

Historically, it’s all been IT. . .. . . but with BT, business people deliver dynamic, differentiated solutions


With BT, business users’ needs are changing

Traditional IT provides: BT users also need from IT:

• Solution analysis, design, delivery, and operations

• Solid business app platforms• SOA services for data,

transactions, policy, security, etc. • Deep technical skills on call• Support for BT tools • Operational support for BT

solutions

• Project management • Project support services• Help with skills development

• IT-centric technology • Open minds, support, & culture

• New technology R&D • Joint business innovation


Agenda





There’s a fork in the road: Take it!

Focus only on traditional IT-

• Letting business areas run ahead without you

• Getting stuck in the technology engine room

Focus heavily on enabling BT -

• Empowering business success with managed risk

• Becoming a partner player


IT enables BT by enabling flexibility

From: To:

• IT/business alignment • BT synchronization

• Business results from large IT-led projects

• Business results mostly from small BT efforts

• Investments that cover much of the technology stack

• User investments in thin layers at the top tech stack

• Data and transaction investments deep in the stack

• Crisp lines between IT and business roles

• Fluid lines of responsibility between IT and the business

• IT-does-it-all • Business-user-enabling• IT has open minds and culture

• IT assures risk and policy • IT enables users to manage risk and policy


Today’s IT organization manages all technology . . .

IT Architecture

IT Strategy & Planning

CIO

Development IT OperationsIT Demand

Management


Technology Exec

Today’s IT organization manages all technology . . .

IT Architecture

IT Strategy & Planning

CIO

Development IT OperationsIT Demand

Management


Technology Exec

. . . but CIOs must become chief BT officers, restructuring IT . . .

BT Architecture

BT Strategy & Planning

CBTOs

BT Synchronization

Development IT Operations

Business OrganizationsBusiness

OrganizationsBusiness Organizations

. . . as business orgs take on roles previously in IT

•Business analysis

•Project management

•Application configuration

•Information management

•Analytics delivery

•Security, compliance, risk, and policy assurance


The CIO will change to support BT enablement

Source: December 6, 2007 “Next Up: The 21st Century CIO:


Checklist for successful 21-st century CIO

Source: December 6, 2007 “Next Up: The 21st Century CIO:


For Additional Reading…

• December 14, 2007 “Seven Trends That Will Shape The CIO Role” by Alex Cullen

• December 6, 2007 “Next Up: The 21st Century CIO” by Bobby Cameron


Alex Cullen

+1 617.613.6373

[email protected]

www.forrester.com/simboston

Thank you

Documents

Making It As A 21st Century CIO"