SIM Fairfield-Westchester Bart Stanco SVP, Gartner, Inc. March 18, 2004 “Strategically Leading The CIO Today!”

SIMFairfield-Westchester

Bart Stanco SVP, Gartner, Inc.

March 18, 2004

“Strategically Leading

The CIO Today!”

DLA Public Sector Page 2Entire contents © 2004 Gartner, Inc. All rights reserved. |

Key issues for CIO

1. Technology

2. Value (Financial)

3. Business Alignment

4. Leadership & Communications

5. Multi dimensional (keep lights on, strategic and tactical)


Technology

Need to be:

Up to date

Profit

Integrator

Technical Vocabulary


Long-Term Outlook for IT Is Brilliant,but Also Will Result in Pain for Many

200320001997 2006 2009

Cut Costs

Keep theLights On

Fix What You Have

Power Shiftsto the User

VendorsHemorrhage

MassiveConsolidation

Power Shiftsto Vendors

FundamentalTechnology

Changes

Installed BaseRefresh

Internet This,Now

Price Is NoObject

Get ReallyRich, Quickly

Pure Greedand Fear

Y2K

Global ITSpending

True Powerof IT FinallyUnleashed

Massive Waveof Innovation

HugeProductivity

Gains

EnormousSocietalImpact

Consumer IsKing


Massive Vendor Consolidation Will Enable or Cause ‘Burn and Churn’ Through 2005

2,300+ Software Companies


Massive Vendor Consolidation Will Enable or Cause ‘Burn and Churn’ Through 2005

About 50%-60%Too Many


End-User Standard Practices

… … rigorously managing your portfoliorigorously managing your portfolio

Consider ...

… … standardizing everything you can at base levelstandardizing everything you can at base level

… … outsourcing anything non-value-addedoutsourcing anything non-value-added


Advances in Technology: Computing Infrastructure Goes Virtual

2003–2005 2006–2008 2009–2014

Computing Storage Virtualization

Networking and Storage Meld

Utility Computing

Dynamic Partitioning

Network Load Balancing

Horizontal Scaling

Frame Consolidation

Blade Management

Parallel Database

Mixed Workload Efficiency

Distributed Performance Mgmt.

Server Provisioning

Technical Computing Grids

Dynamic Virtual Partitioning

Virtual Blade Mgmt.

Self-Healing

Service-Level Management

Policy-Based Management

Distributed Workload Mgmt.

Grid for Commercial Use


Wi-FiWi-Fi 802.11g/b802.11g/b

IntelCisco IBM

Residential Broadband Cable

Advances in Technology: Networks Go Wireless Broadband


Power delivery technology isn’t exciting

Power consumption technology is awesome

“Always on, always connected”

Source: E Ink

Advances in Technology: Power Management and Display Electronics


Advances in Technology: Massive Shift in Software Architecture

SOASOA

DeploymentDeployment

ContractsContracts MessagesMessages

RepositoryRepository ServersServers


Interoperability Is Cheaper

Than Integration

Interoperability Is Cheaper

Than Integration

Advances in Technology: Massive Shift in Software Architecture

Composite ApplicationsComposite

Applications“Real Time”Integration

“Real Time”Integration


Next Massive Wave of Innovation and Demand for IT Will Start in 2006

Secure Broadband

Wireless

Secure Broadband

Wireless

Low-Power-Consumption

Mobile/Display Devices

Low-Power-Consumption

Mobile/Display Devices

Real-Time Infra-

structure

Real-Time Infra-

structure

Transition to SOA

Transition to SOA

20062006


By 2007 ...

• It will be difficult to buy a nonwireless “device.”

• Secure, robust, national wireless broadband networks will reach critical mass.

• It will be nearly impossible to buy a cell phone without a camera.

• Electronic paper will be a viable alternative to paper for industrial and consumer applications.

• Applications will be built by assembling services.

• Core infrastructures of computing and storage will be much more autonomic and reliable.

• The last new application for Unix will have been written.

• RFID will be ubiquitous up to the retail shop.

• The wireless digital media center will be the de facto home form factor.

• Real-time analytics and massive data management will emerge as the most important business applications.


Value (Financial)

Saving Money Sourcing Strategy

Strategic Skills SLA Cost

Governance Financial Vocabulary Investment Choices


Business Alignment

Why


Making the business case for Enterprise IT

Enterprise IT when aligned will add 22% to Business objectives

Better information for better decisions Speed of operations Lower cost High value outcome first Simplified process

Enterprise IT when NOT aligned will add 0% to Business objectives

Increase Cost Friction Barrier


Capability can do the job - technical, management, financial

Communications meaningful and timely

Responsiveness understand, anticipate, decide, mobilize, deliver

Predictability set and meet expectations, no surprises

Dependability certain about behavior in uncertain times

Mutuality common goals, individuals win because the team wins

Congruency perception and reality are matched

Consistency standards are deployed, protocols are applicable to all

Reputation personal experience, word of mouth, press, references

cultural fit, business understandingCompatibility

Primary Ingredients of trust


Capability

Communications

Responsiveness

Predictability

Dependability

Mutuality

Congruency

Consistency

Reputation

Compatibility

Reconsider Relationship

Terminate Relationship

Not Significant

0%

24%

0%

0%

0%

0%

28%

3%

0%

0%

69%

45%

68%

55%

55%

60%

60%

58%

25%

28%

31%

55%

4%

45%

21%

40%

35%

39%

75%

72%

Capability and congruency are the top two factors


The power of 5 for alignment

1. Management

2. WIFM (carrot)

3. Financial (stick)

4. Communications

5. Trust


WIFM What is in IT for me?

What value do we bring to our clients?

Is it our view of value or is it their view? How do we help them?

What are each business units objectives?

What are you providing that they cannot do today?

Is it better? Does it really cost less?

Were they involved in the decision?

Given a choice would they choose your service?


Public sector IS must manage a credibility cycle within and across its organization

ResultsResources

Outcomes

Credibility Initial credibility

Lost credibility


Leadership & Communications

Leader of the IT team

Leader on Business

Information

Process

Innovate

Coach

Challenge

Communicate

Multimode

All levels


Vertical and horizontal collaboration turns outcomes into results

Outcome Result

HQ/Centraloffice

Fieldoffice


Connect outcomes and results to deliver the executive agenda

Business Strategy

ResultsService

improvementCost

savingsNeed met Need met Compliance

Item 1 Item 2 Item 3 Priority A

Priority B

Outcome

ProjectsProject A Project B Project C Project D

Service 1

Infrastructure 1

Service 3

Service 2

Infrastructure 2

Infrastructure 3

IS plans

Executive agendaW

hat

Ho

w

Value


Multi Dimensional

Keep lights on,

Strategic

Tactical

Metrics and KPI

Sourcing as the Aggregators

Vocabulary

Tech

Finical

Business

Coach

Integrators


Summary

We need to have multiple Vocabulary (Know our audience)

Tech

Financial

Business

Coach

Integrate – Aggregators

We Need to be aligned to Key Business Objectives and outcomes

Keep in Mind WIFIM


Contact information

Bart D Stanco

[email protected]

203-258-1867 m

Entire contents © 2004 Gartner, Inc. All rights reserved. |

Appendix


<Client Name> | Effective IT Governance. By Design | <Engagement: <xxxxxxxxx> | < Date>

Top level IT governance arrangements havethree major components

THE THREE COMPONENTS

1. What decisions need to be made?. . . decisions about major IT domains

© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill &Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't

Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.

2. Who has decision and input rights?. . . Rights are exercised in different governance styles

3. How are the decisions formed and enacted?. . . Multiple mechanisms make governance work


IT Infrastructure Strategies

IT Principles

IT Architecture

Business Application Needs

IT Investment and Prioritization

Strategies for the base foundation of budgeted-for IT capability (both technical and human), shared throughout the firm as reliable services, and centrally coordinated (e.g., network, help desk, shared data)

High level statements about how IT is used in the business

An integrated set of technical choices to guide the organization in satisfying business needs. The architecture is a set of policies and rules that govern the use of IT and plot a migration path to the way business will be done (includes data, technology, and applications)

Business applications to be acquired or built

Decisions about how much and where to invest in IT including project approvals and justification techniques

© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill & Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.

1: What decisions need to be made? Clarify five major IT decision domains


Note: Some Governance styles were inspired by Davenport, 1997.

C-level executives, as a group or individuals, including the CIO (but not acting independently)

C-level executives and at least one other business group

IT executives and at least one other business group

Business unit leaders or their delegates

Individuals or groups of IT executives

Each individual business process owner or end user

Business Monarchy

Federal

Duopoly

Feudal

IT Monarchy

Anarchy

© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill & Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.

Style Who makes the decisions?

2. Who has decision rights and inputs?. . Rights exercised in six governance styles


BusinessMonarchy

ITMonarchy

Feudal

Federal

Duopoly

Anarchy

The ‘IT governance arrangements matrix’ shows how decisions, styles, mechanisms fit together

© 2003 Gartner, Inc. and MIT Sloan Center for Information Systems Research (Weill), drawing on the framework of Weill and Woodham, 2002.

IT Principles IT InfrastructureStrategies IT Architecture Business

Application NeedsIT Investment and

Prioritization

Decision domain

Style

Exec commBiz leaders

Exec commIT leadership

Input Decision

CIOIT leadership


Input Decision

Biz leadersBiz pro own

Biz/IT rel mgs

Biz leadersIT Leadership

Input Decision


Cap appr comm

Input DecisionInput Decision

CIOIT leadership

Some exec +some biz leaders

Biz pro own

Input rights Decision rights

Business/IT relationship managersBiz/IT rel mgsCIO, CIO’s office and biz unit CIOsIT leadership

Business process ownersBiz pro ownBusiness unit heads/presidentsBiz leaders

Exec comm subgroup, includes CIOCap appr commExecutive committee (‘C’ levels)Exec comm

Governance Mechanisms

Documents

SIM Fairfield-Westchester Bart Stanco SVP, Gartner, Inc. March 18, 2004 “Strategically Leading The CIO Today!”