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Peter Nevin
The New Role of the CIO: IT Value in the Next Decade
Former Executive General Manager, Business Process – Sedgman Australia
Peter NevinPeter Nevin
The New New Role of the CIO- IT Value in the next decade
CIO Summit Melbourne 2010
AgendaAgenda
About Me
Where we have come from
Where we are now
So where’s the value in the future
Questions
Peter NevinPeter Nevin
Former EGM Business Processes – Sedgman Ltd (Australia)CIO – SKM Engineering Consulting (Global)CIO – National Rail Corporation
Chairman Executive Board CIO Executive Council AustraliaMember Australian Computer Society – Professional Standards
Advisory Board.
Started as programmer30 + years in IT
email: [email protected]
Define some termsDefine some terms
Business ValueBusiness Value
Support function Support function
Line function Line function
An Inconvenient TruthAn Inconvenient Truth
SUPPORT
OPERATI
ONS
Manufacturing
SalesConsultingServices
HR
STRATEGY
FINANCE
LEGAL
IT
SUPPORT
OPERATI
ONS
$
$
Alternatively.....Alternatively.....
NecessaryEvil=
What about the others?What about the others?FinanceHR Health Safety Environment CommunityLegalMarketing
Is there a lesson ?How do they add value ?How has that value changed?
Fundamental to the Business
Example Example -- The Rise and Fall of HRThe Rise and Fall of HRStarted as the people who did the payGrew to governance and execution function Evolved to governance
About 100 years so far………
The role became absorbed • Managers• Shared Services
Now• Governance• Internal Consulting• Education
A Short History of IT Business ValueA Short History of IT Business Value
IT Business Value IT Business Value –– ItIt’’s has changeds has changed
Started in Accounts • Value = faster and lower cost
Moved into other business processes• Still centralised• Value = faster, lower cost AND better
Moved in to every day business• Email, PC office applications, etc• Effecting ALL business processes• Value = faster lower cost AND a lot better
Became operational • Better infrastructure and management• ERP type systems• Value = ????????????????
IT Business Value IT Business Value -- NowNow
OPERATIONS
SYSTEMS
RELIABILITY
Measures:
AvailabilityUseability
DELIVERY
Measures:
On timeOn budgetOn scope
LOW COST
Measures:
Spend as % revenueIT Staff/FTEsTCOs
EXCELLENCE OFSERVICE
Measures:
Internal customersatisfactionCompany performance
BUSINESSIMPROVEMENT
Measures:
Cost of businessoperationSpeed of businessoperationsRealisation of benefits
MARKET / PROFITIMPROVEMENT
Measures:
Market shareCompany profitabilityCustomer retention
CAPABILITY EFFICIENCY EFFECTIVNESS
Business Value Now Business Value Now –– but there is morebut there is moreOutsourcingThe growth of the ERPBetter management techniques• IT becoming a profession?
Better technologyCloud
Very confusing for IT management Simple for the business
We are in transition
IT value in the IT value in the futurefuture
The future IT environment ?The future IT environment ?
Significant improvements in Technology
• Fast cheap and reliable
All IT infrastructure can be externally supplied and operated
• Low cost and very competitive (e.g. mobile phones)
All systems can be externally provided
• ERPs etc in a cloud
So where is the Business Value?
IT value in the futureIT value in the future
Competitive advantage!• Use it better• Use it faster • Use a better one
– Than the rest
The same competitive advantage as any other function
IT Value evolutionIT Value evolution
Future IT divides:
• Simple to manage support function
• A driver of completive advantage
So where does that leave youSo where does that leave you3 options
1. Technologist working for a provider2. Contract administrator working for a business3. A Business Process professional
Linked into strategy developmentFocused on competition, the market and business functionsManaging governance of changeDelivering competitive advantage
QUESTIONSQUESTIONS
