making leaders successful every day · will today’s “best practice” cio recipe work in this...

Making Leaders Successful

Every Day

Tomorrows CIOs, Today’s Business

Leaders

John Brand, VP & Principal Analyst, CIO Group [email protected]

March, 2013

mailto:[email protected]

"I think there is a world market for maybe

five computers"

He may ultimately be right…

© 2012 Forrester Research, Inc. Reproduction Prohibited

The “When Harry Met Sally” IT strategy…

Image source: Listal.com (http://www.listal.com/viewimage/692731)


“I’ll have what they’re having.”



Those days are over!


CIO stress points

The CIO must

REDUCE COSTS.

The CIO must create

TRANSPARENCY.

The CIO must

REDUCE CYCLE TIMES.

And if that isn’t enough . . .

The CFO says,

“Why does IT cost so much?”

A business leader says,

“Why does IT take so long?”

The CEO says,

“Where is the value?”

. . . CIOs have two new major stress points

Economics of sourcing

Empowered IT

Technology-driven Business-driven

IT

© 2013 Forrester Research, Inc. Reproduction Prohibited 10

Our relationship with technology is changing…

Systems of record host

processes

Systems of engagement

touch people

Systems of engagement empower customers, partners, and

employees with context-rich apps and smart products to help

them decide and act immediately in their moments of need.


Which drives change in IT (and vice versa)

1960-80’s 1980-90’s 1990-2000’s 2000+

Application

focus Build Buy vs Build

Buy, Integrate,

Extend

Source,

Configure,

Manage

Sourcing of IT Internal supply Internal supply Internal & external

supply

Predominantly external

supply

Consumption of

IT Internal consumers

Predominantly Internal

consumers

Internal & external

consumers

Internal & external

consumers

Interface Procedural/

functions Objects

Fine grained technical

interfaces (SOA)

Coarse-grained, integrated

business services

Tools focus System/ language Developer productivity Development process

management

Design, delivery, change,

performance

Partner focus Specialist value

add or heavily

optimised code

Customer vs. partner

created intellectual

property (IP)

Leveraging existing IP

to increase margins on

products and services

Efficiency, and productivity

driven partnering. Services

continually redefined

Data Centre Refresh

FOCUS: increase capacity/density, increase

power efficiency, maximise floor space

APPROACH: significant use of infrastructure

virtualisation (CPU, storage, network). Optimise use of assets

INVESTMENT STRATEGY: maximise depreciation schedules and

optimise asset value

KPI’s: IT service level metrics

Data Centre Renovation

FOCUS: reduce operational complexity, increase

flexibility/agility, availability/reliability, optimise efficiency through policy

APPROACH: significant use of infrastructure and

platform virtualisation. Increased use of automation. Optimise asset availability

INVESTMENT STRATEGY: reduce capital investments, focus on

variable operational cost models

KPI’s: IT service-to-value metrics

Data Centre Transformation

FOCUS: optimise capacity, availability, flexibility, performance and cost - based on each

business requirement and policy

APPROACH: significant use of infrastructure, platform and application virtualisation. Strong emphasis on

business service level management and policy automation

INVESTMENT STRATEGY: minimise capital investments, preference for

variable operational costs for all business requirements. Change of focus from ‘cost-to-

have’ to ‘cost-to-do’

KPI’s: Business value metrics

At least 80% of organisations

are here

Less than 15% of organisations

are here

Less than 5% of organisations

are here

(and most of these are large

service providers)

Only one of these is likely to be

able to address the changing

expectations of today’s savvy,

mobile, information hungry and

connection-dependent users of

technology.


Will today’s “best practice” CIO recipe work in this business climate?

› Manage demand by focusing on enterprise priorities.

› Increase capacity incrementally, using the best practices for people, process, partners, and technology.

› Assist empowered initiatives where you can.

› Manage expectations.

› Maintain control.

2010 2014 2016 2020

CIO stress points The CIO must

REDUCE COSTS.

The CIO must create

TRANSPARENCY.

The CIO must

REDUCE CYCLE TIMES.

The CFO says,

“Why does IT cost so much?”

A business leader says, “Why does IT

take so long?”

The CEO says,

“Where is the value?”

The business says,

“Why must I work with IT when I

can get it cheaper and faster

elsewhere?”

The CIO must become a

SOLUTIONS BROKER.

The business says,

“Why can’t I just do things myself?” The CIO must facilitate

SELF-PROVISIONING.


Ongoing improvement

• Standardized

• Low risk

• Incremental

• Operational or mandatory

Radical Innovation

• Game-changing

• Non-standard

• High risk

• Unanticipated

• Strategic

• Large scale

The transition to “systems of engagement” begins with a vision


Over the next five years, IT organisations will need to

prioritise their own transformation to survive.

Image source: http://data.whicdn.com/images/5524543/Butterflies_by_IMustBeDead_thumb.jpg

The future role of the CIO (hint: it won’t be called “Chief Information Officer”)

The tomorrow-ready CIO will not…

Tomorrow-ready CIOs will…

Managing resilience, reliability, security,

performance, user experience AND

change (and at any scale) must become

core competencies.

Tomorrow’s CIOs are today’s business

leaders.

How tomorrow-ready are you…?

Thank you John Brand

+61 3 902 41703

[email protected]

blogs.forrester.com/cio

mailto:[email protected]

making leaders successful every day · will today’s “best practice” cio recipe work in this...

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