the role of a chief information officer november 3, 2009 presented by: yiran chen, john halbert,...

The Role of a Chief Information Officer

November 3, 2009

Presented by:

Yiran Chen, John Halbert, Dianne Salem, Sheba Sands and

Wenyu Zhang

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Presentation Overview

Session Objectives A high level understanding of:

• Why we have CIOs + demographic information of CIOs• Top skills & organizational benefits of having a CIO• General and specific issues facing CIOs (including case

studies)• General and specific “best practices” for CIOs

www.lib.washington.edu/business/guides/misq.gif, viewed October 25, 2009. www.cscape.com/news/PublishingImages/cio-logo.gif, viewed October 25, 2009.

http://www.lib.washington.edu/business/guides/misq.gif

http://www.cscape.com/news/PublishingImages/cio-logo.gif

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What is a CIO? Definitions…

From businessdictionary.com

• “Executive responsible for development, implementation, and operation of a firm's information technology policy. He or she oversees all information systems infrastructure within the organization and is responsible for establishing information-related standards to facilitate management control over all corporate resources.”

• “Changes within business structures have placed even more responsibility within the domain of the CIO, raising the position from one of a 'mid-level' manager to top-level executive.” (Beatty, Arnett and Liu, 2005)

Beatty, R., Arnett, K., and Liu, C (2005), "CIO/CTO Job Roles: An Emerging Organizational Model” Communications Of The IIMA, Vol. 5, No. 2, pp. 10-9. Viewed October 25, 2009.

http://businessdictionary.com/definition/chief-information-cio.html

http://www.iima.org/CIIMA/CIIMA%205.2%201%20Beatty-1.pdf



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CIO’s Role

Governance of IT function Operating infrastructure/services Managing the applications portfolio Managing IT expertise Developing IT PM skills Managing IT Suppliers Managing IT investments.

Continuous improvement of business processes The use of management information The use of business information

Earn credibility Contribution to business activities Impact on the company’s mindset

Marchand, D. (2008), "The Chief Information Officer*: Achieving Credibility, Relevance and Business Impact," Perspectives for Managers, No. 164, pp. 1-4. Viewed October 26, 2009.

http://www.imd.ch/research/publications/upload/PFM164_LR_Marchand.pdf



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CIO Responsibilities

In what areas is a CIO involved?

www.ndu.edu/IRMC/interactive_schedule/images/CIO_chart.jpg, viewed October 22, 2009.

http://www.ndu.edu/IRMC/interactive_schedule/images/CIO_chart.jpg

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CIO Characteristics The characteristics of CIOs are: High Growth

CompaniesLow Growth Companies

Are members of most-senior management team 62% 46%

Integrate business and technology to innovate 64% 33%

Focus time on enabling the business and corporate vision 28% 15%

Focus your time on providing core technology services 23% 40%

IT team provide collaborative tools across the enterprise 41% 22%

Aggressively turn data into actionable information 58% 36%

Seek active input from customers 87% 70%

Co-create business strategy with fellow execs 74% 61%

Co-present business strategy to senior management 66% 53%

Part of the team setting the organization's strategy 62% 46%

IT team uses collaborative tools 53% 33%

Business models unique and hard to imitate 63% 49%

Business models include partnering alternative sourcing 60% 52%

Give customers excellent data integrity and transparency 68% 44%

Create IT centers of excellence 44% 26%

Data readily available for relevant users 67% 51%

Data reliable and secure 81% 66%

Manage change successfully 61% 43%

Based on the data from Janco Associates, “Requirements to be a successful CIO” http://e-janco.com/ctonews.php viewed October 25, 2009.

http://e-janco.com/ctonews.php

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As Managers, Why Observe / Study CIOs?

• “The Chief Information Officer (CIO) plays a critical role in the ability of an organization to derive business value from IT. Organizations that view the CIO as a strategic asset are more likely to create business value through IT and thereby achieve superior business performance.” (Preston, Leidner and Chen, 2008)

• “Although the CIO is shown to substantially help create business value, recognition inclusion within top levels of management can be sporadic across different organizations.” (Kaarst-Brown, 2005)

Preston, D., Leidner, D., and Chen, D. (2008), “CIO Leadership Profiles: Implications Of Matching CIO Authority and Leadership Capability On IT Impact,” MIS Quarterly Executive, Vol. 7, No. 2, pp. 57-69.Kaarst-Brown, K. (2005), “Understanding An Organization's View Of The CIO: The Role Of Assumptions About IT,” MIS Quarterly Executive, Vol. 4, No. 2, pp. 287-301.

http://misqe.org/ojs2/index.php/misqe/article/view/186



http://misqe.org/ojs2/index.php/misqe/issue/view/14



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Why Study CIOs?

“The position of CIO will increasingly be recognized as a core business post…driven by companies realizing that information technology capabilities are not only critical to supporting their business strategies, but that they are also necessary to competitively shape them.”

--Carl Wilson (CIO, Marriott International)

Polansky, M., Inuganti, T. and Wiggins, S. (2004), “The 21st Century CIO,” Business Strategy Review, Vol. 15, No. 2, pp. 29-33

www.dwlogic.com/clients/images/Marriott_Logo.jpg, viewed October 25, 2009. www.btminstitute.org/RetouchedPhotos/wilson_carl.jpg, viewed October 25, 2009.

http://www.dwlogic.com/clients/images/Marriott_Logo.jpg

http://www.btminstitute.org/RetouchedPhotos/wilson_carl.jpg

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CIOs’ Salaries

160,000

165,000

170,000

175,000

180,000

185,000

2004 2005 2006 2007 2008 2009 Year

$

Large company

Mid-sized company

CIOs’ salaries at large companies are rising. CIOs’ salaries at mid-sized companies are flat.Based on the data from Janco Associates

Maguire, J., “IT Salary Levels, 2004-2009,” http://itmanagement.earthweb.com/columns/print.php/3819081, viewed October 6, 2009.

http://itmanagement.earthweb.com/columns/print.php/3819081

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Salary vs. Tenure

Government CIOs (Lowest Paid) stay longer than Finance peers (Highest Paid)

Mean Tenure in Years and Months

“State of the CIO Survey 2009” www.assets.cio.com/documents/cache/pdfs/2009_state_of_the_cio_highlights.pdf, viewed October 25, 2009.

Mean Salaries

in$ K

Survey findings based on

responses of 506 top IT

heads from various

industries as of Sept. 2008

Margin of error for sample size 506 is +/- 4.4%

http://www.assets.cio.com/documents/cache/pdfs/2009_state_of_the_cio_highlights.pdf

CIO’s Boss

20.80%

15.90%

22.10%

5.90%

8.70%7.10%

8.90%

4.80%

10.10%

31.40%

45.20%

42.60%

21.80%

25.40%

29.30%

05 06 07 05 06 07 05 06 07 05 06 07 05 06 07

COO BUE CFO CEO OTHERS

% o

f re

sp

on

de

nts

Number of CIOs directly reporting to CEO dropped 14% from Y06 to Y07Cummings, J. (2008), “Are CIOs losing their mojo?” Network World, Vol. 25, No. 14, pp. 34-36. Viewed on October 26, 2009.

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http://www.networkworld.com/research/2008/040708-cios.html?

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Luftman - How CIOs Spend Time

Time Spent Issue

37% IT Technical-related issues

23% Managing relationships with business

16% Strategy

9% IT Governance

8% Human Resources7% Non-IT tasks

63% of CIO time spent—according to Luftman—is spent on non-technical work!

Luftman, J., and Kempaiah, R. (2008), “Key Issues for IT Executives 2007” MIS Quarterly Executive, Vol. 5, No. 2, pp. 99-112.

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CIO’s Time Allocation

18%

52%30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

As Function Head As Transformational Leader As Business Strategist

company' s executi ves I T staff or team Non- I T empl oyeesI T vendors/ servi ceExternal partners

Over 50% of CIO’s time is spent as transformational leader. CIO spends minimum time with IT staff and more time with executives/business strategists.

Survey dated Sept. 2008 Sample size 506

“State of the CIO Survey 2009” www.assets.cio.com/documents/cache/pdfs/2009_state_of_the_cio_highlights.pdf, viewed October 25, 2009.


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Non-technical Skills for CIOs

7 Non-technical skills that CIOs must develop

Underlying skillCollaboration between IT &

business

Persuading leadership of the import of

IT

Delivering high

profile projects

Contributing to strategic

planning & growth initiatives

Identifying opportunities for process

enhancement

Developing IT Staff

Political savvy x x x

Influence, leadership, & power x x x

Relationship Management x

Resourcefulness x x x x x

Strategic Planning x x x

Doing what it takes x

Leading employees x

Cummings, J. (2008), “Are CIOs losing their mojo?” Network World, Vol. 25, No. 14, pp. 34-36. Viewed on October 26, 2009.

http://www.networkworld.com/research/2008/040708-cios.html?

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Luftman - Key IT Issues

2007 Top 5 Concerns of Management

Luftman, J., Kempaiah, R. Key Issues for IT Executives 2007 (2008). MIS Quarterly Executive Vol. 5, No. 2, pp. 99-112

Rank Issue

1Attracting, developing & retaining IT professionals

2 IT & business alignment

3 Building business skills in IT

4Reducing the cost of doing business

5 Improve IT quality

2008 Top 5 Concerns of Management

Luftman, J., Kempaiah, R. Key Issues for IT Executives 2008 (2009). MIS Quarterly Executive Vol. 8, No. 3, pp. 151-159

Rank Issue

1 IT & business alignment

2 Building business skills in IT

3 IT strategic planning

4Attracting, developing & retaining IT professionals

5Making better use of information

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Principles for Success

Flexibility

Simplicity

Security & Mandated Requirements

Disaster Recovery & Business Continuity

Based on the data from Janco Associates, “Requirements to be a successful CIO” http://e-janco.com/ctonews.php viewed October 25, 2009.


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CIO’s Future Role

• Focus on ROI of IT• Visionary & Pragmatic• Inspire Enterprise

Based on the data from Janco Associates, http://e-janco.com/Job_Book_CIO.htm viewed October 25, 2009.

http://e-janco.com/Job_Book_CIO.htm

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CIO Job Evolution

• Although oversight of technical aspects of an organization continues to be a component of a CIO’s job, “expect CIO responsibilities to continue shifting from technical/operational to strategic/management.” (Polansky and Wiggins, 2004)

• “To be effective in a strategic business context, CIO’s must be strategic change agents. They must understand the business well enough to recognize the opportunities that exist for radical change through the application of information or systems, and they must have the skills that are necessary to explain the impact of such changes to business managers who may not be familiar with technology or it’s jargon.” (King, 2008)

Polansky, M., Inuganti, T. and Wiggins, S. (2004), “The 21st Century CIO,” Business Strategy Review, Vol. 15, No. 2, pp. 29-33

King, W. (2008), “Including the CIO in Top Management,” Information Systems Management, Vol. 25, No. 2, pp. 188-189.

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CIO Attributes Affecting Change

Ennis, Huff, & Higgins (2003)• CIO/peers surveyed were chosen from “Directory Of Top Computer

Executives database. 459 eligible CIOs contacted. 144 agreed. • 69 matched pair (CIO + peer) surveys analyzed

What attributes help CIO’s achieve goals?

– Rational Persuasion (“Know Your Subject & Be Logical”)• Likely to lead to commitment to change.

– Personal Appeals (“Win Friends and Influence People!”)

What attributes do not help CIO’s achieve goals?

– Exchange (“Quid Pro Quo”)– Coalition (“Ganging Up”)– Pressure (“Demands/Threats/Persistent Meddling”)

Enns, H., Huff, S., and Higgins, C. (2003), “CIO lateral influence behaviors: gaining peers' commitment to strategic information systems,” MIS Quarterly, Vol. 27, No. 1,

pp. 155-176.

Organizational Backgrounds

http://www.fuhrerwholesale.com/images/AB3 copy.gif, www.theteamgroup.com/images/logoScripts.jpg and www.njyy.com/english.htm All viewed October 19, 2009.

http://www.fuhrerwholesale.com/images/AB3%20copy.gif

http://www.theteamgroup.com/images/logoScripts.jpg

http://www.njyy.com/english.htm

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Anheuser-Busch, Inc.

• Leading global brewer• Top 5 consumer products companies• Subsidiary of Anheuser-Busch InBev• Euronext: ABI• NYSE: BUD• ~300 brands• 4 of top 10 best – selling beers in the world

www.psfk.com/wp-content/uploads/s19031.gridserver.com/wp-content/uploads/psfk.com/anheuser_busch_beer.jpg, viewed October 19, 2009.

http://www.psfk.com/wp-content/uploads/s19031.gridserver.com/wp-content/uploads/psfk.com/anheuser_busch_beer.jpg

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Anheuser-Busch, Inc.

• 12 breweries in the U.S., 15 in China• 49.2% share of U.S. Market• 2008 Revenue

– €26.5B ($39B)• 2008 Profits

– €6.1B ($9.2B)• 40% of revenues generated in U.S.

www.psfk.com/wp-content/uploads/s19031.gridserver.com/wp-content/uploads/psfk.com/anheuser_busch_beer.jpg, viewed October 19, 2009.

http://www.fuhrerwholesale.com/images/AB3 copy.gif, viewed October 19, 2009.



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Express Scripts, Inc.• Pharmacy Benefit Management (PBM) Service

Provider• Founded in 1986• 1992 – went public• HQ – St. Louis, MO• Revenues: $21.9B• Gross Profit: $2.04B• “Alignment” – clients and patients• NASDAQ: ESRX• Top Fortune 70 in 18 – 24 months

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.images.businessweek.com/ss/09/05/0518_green_hqs/image/8_express-scripts.jpg, viewed October 19, 2009.www.theteamgroup.com/images/logoScripts.jpg, viewed October 19, 2009. www.finance.yahoo.com/q?s=ESRX, viewed October 19, 2009.

http://images.businessweek.com/ss/09/05/0518_green_hqs/image/8_express-scripts.jpg


http://finance.yahoo.com/q?s=ESRX

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Nanjing Pharmaceutical Corporation

• A large pharmacy wholesaler in China• The first listed company for pharmaceutical

circulation in China• Fifty subsidiaries in China• 2000 employees (excluding subsidiaries)• Founded in 1951, a state-owned company • 2009 biannual report

– Revenue RMB 62.7 billion (~$9.2B)– Net income RMB 31 million (~$4.5M)

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009.


CIO Case Studies





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Odilon Queiroz, Anheuser-Busch

• Hometown: Sao Paulo, Brazil

• Undergrad & post-grad degrees in mechanical engineering & marketing, earned in Brazil

Odilon Queiroz, VP Information & Business Services at Anheuser-Busch, Inc., interviewed in person by Sheba Sands, September 28, 2009.www.abweb.corp.anheuser-busch.com/abweb2/pressarticle.aspx?guid=FA6F0689-47DC-4455-B7D6-99F2BFA8265B, viewed October 19, 2009.

• MBA, University of Washington

• Joined company in 1994, Brahma

http://abweb.corp.anheuser-busch.com/abweb2/pressarticle.aspx?guid=FA6F0689-47DC-4455-B7D6-99F2BFA8265B

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• IT, Supply Chain, Logistics, & Finance in Brazil, Latin America, Canada, & the U.S.

• Highlights of Achievements

– Led SAP implementation

– Led project to build brewery in northeast Brazil

• Became CIO of Anheuser-Busch, Inc. in November, 2008

Odilon Queiroz, VP Information & Business Services at Anheuser-Busch, Inc., interviewed in person by Sheba Sands, September 28, 2009.http://www.fuhrerwholesale.com/images/AB3 copy.gif, viewed October 19, 2009.


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Gary Wimberly, Express Scripts

• University of Missouri -Columbia• Ernst & Young (six years)

– ERP Work, Y2K• Tyco (six years)

– Logistics and Manufacturing Systems• Joined Express Scripts in 2004,

became CIO in 2006

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.theteamgroup.com/images/logoScripts.jpg, viewed October 19, 2009. www.bycios.com/event_cio_es/speakers/id/117, viewed October 19, 2009.


http://www.bycios.com/event_cio_es/speakers/id/117

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Wenyu Zhang, NJYY

• MBA, Nanjing University • Work Experience

– Manager of accounting for 5 years – Vice president of a business unit for 2 years– Info management officer for 1 year

• Highlights of Achievements– Establishing ERP – Designing data model in data warehouse



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Wenyu Zhang, NJYYFrom 2000 to 2009, NJYY had five CIOs.

CIO Tenure Background Original position Reason for

drop Period

1 2Information engineering

Hired from another company

Failure to establish ERP

2000-2002

2 1Pharmacy manufacturing

Promoted from an administration unit

Failure to establish ERP

2003

3 1Investment and securities

Hired from another company

Low salary 2004

4 3 ChemicalHired from another company

Relationship with boss

2004-2007

5 2 PharmacyPromoted from department of quality

Prepare for leaving

2008



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Wenyu Zhang, NJYY

• What information does the above table imply?– IT background not necessary– CIO relationship with boss– What challenges does the CIO face in NJYY?

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009 www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm, viewed October 28, 2009.


http://www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm

Department Overviews





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• ~900 IT employees• Budget ~$288MM• Responsibilities

– Shared services– Standardize processes, integrate systems– Maintenance, implementation– Process re-engineering



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A week in the life….– Monday: Management Committee– Tuesday: Shared Services, Project Meetings– Wednesday: Applications & Infrastructure– Thursday: Field Trips, Emergencies, Open– Friday: Canada

“…have to make myself available for quick decisions.”



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• 1,100 IT Employees; 700 consultants• Budget – 1.1% of Revenue (~$241MM)

– ½ of every $ is spent on new capabilities• Responsibilities

– Build equipment– Scale and support– Succeed through internal partners

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.theteamgroup.com/images/logoScripts.jpg, viewed October 19, 2009.


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A day in the life…– Early 5:30 – 8:00 a.m. Email & Open– 8am – 5pm Meetings!– After 5pm more email

A week in the life…– Mon – Wed: one-on-ones with direct reports,

meeting with CEO– Tues: EVP Ops, Patrick McNamee– Friday: Staff meeting

Travel time 15 -20%



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Wenyu Zhang, NJYY

• IT and data center employees: 40• Budget – 0.5% sales revenue • Responsibilities

– IT strategy and IT budget management – Project management – Data analysis – Requirement collection and analysis

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. http://www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm, viewed October 28, 2009.



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Wenyu Zhang, NJYY

• A day in the life…– 20% Communication with CEO, CFO, …– 20% Communication with subordinates , managers

of IT programs, IT suppliers – 30% Writing reports, drawing up strategy and plan– 20% Meetings – 10% Visiting and training

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009 www.i.ehow.com/images/GlobalPhoto/Articles/5219155/AnnualReport-main_Full.jpg, viewed October 28, 2009.www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm, viewed October 28, 2009.


http://i.ehow.com/images/GlobalPhoto/Articles/5219155/AnnualReport-main_Full.jpg


Reporting Structure





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• Carlos Brito• CEO

• Claudio Garcia,• Chief People • Officer & CIO

• Luiz Edmond• Pres, NA Zone

• Odilon Queiroz• VP IBS

• David Almeida• VP Finance

• Jim Brickey• VP People

• James • Villeneuve

• VP Corp Affairs

• Gary Rutledge• VP & Zone

• Gen’l Counsel

• Tom Adamitis• VP

• Procurement

• Dave Peacock• Pres. A-B



41


George PazCEO

EVP EVP EVP EVP EVP EVP

SVPSVPGary Wimberly

CIO SVP

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.iaff1813.org/Express Scripts.jpg, viewed October 19, 2009.

http://www.iaff1813.org/Express%20Scripts.jpg

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Gary WimberlyCIO

Chief Technology

Officer

Client & PatientSystems

Claims & Benefits

CorporateApplications

Canadian OpsStrategy

& ProcessFinance

Infrastructure Architecture

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.iaff1813.org/Express Scripts.jpg, viewed October 19, 2009.


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Wenyu Zhang, NJYY

Board of Directors

CEO

Associate CEOs General Auditor

CFO Quality Control Officer

Marketing Director

HR Officer Info

Management Officer

Finance Director

Info Tech Center Officer



Relationship with the CEO





45

CIO-CEO Communication

Johnson-Lederer study (2007)202 CIO-CEO matched surveys completed

• Q: To what extent do CEO’s and CIO’s share an understanding of the current role of IT and a vision of the future role of IT in their organization?

• Executives did have some general shared agreement on the role of IT, but…

• CEO’s tended to appreciate the business/strategic value of IT, while CIO’s tended to appreciate the value of IT as it affects the organization’s functional capabilities.

Major Industries Represented

Manufacturing 20.3%

Medicine/Law/Education 13.4%

Finance 10.4%

Wholesale/Retail 8.4%

Construction 7.9%

Johnson, A., Lederer, A. (2007), “The Impact of Communication between CEOs and CIOs on their Shared Views of the Current and Future Role of IT,” Information Systems Management, Vol. 24 No. 1, pp. 85-90.

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CIO-CEO Communication

• Q: Does communication frequency predict shared understanding of the current role and shared vision of the future role of IT?

• Analysis showed that frequency did not predict shared understanding of CURRENT role of IT, but frequent face-to-face and e-mail conversation predicted understanding of the FUTURE role of IT. (Johnson & Lederer, 2007)

Johnson, A., Lederer, A. (2007), “The Impact of Communication between CEOs and CIOs on their Shared Views of the Current and Future Role of IT,” Information Systems Management, Vol. 24 No. 1, pp. 85-90.

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Relationship with CEO…– Carlos Brito, CEO– Luiz Edmond, NA Zone President– Claudio Garcia, Chief People & Info Officer– Supporting business strategy

• Dave Peacock, President A-B Inc.• David Almeida, VP Finance NA Zone



48


Relationship with CEO……– George Paz – two doors down from Gary– Staff meeting every Monday– Countless meetings and one-on-one

conversations



Wenyu Zhang, NJYY

• IT concept of the CEO• Communications and meetings • Evaluating performance from the CEO

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm, viewed October 28, 2009.www.cio.com/images/pic/edit/boss_cartoon.jpg, viewed October 28, 2009.

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http://www.cio.com/images/pic/edit/boss_cartoon.jpg

Greatest Successes





51


Successes:– Integration – absorbed a whole country,

supported by fewer resources• Can catch up really quickly with a good team!

– Consolidating Canadian Data Center in 75 days Industry Benchmark

– Shared Services – three months



52


Successes:– Built strong leadership management team

IT is a pipeline to the rest of the organization



53

Wenyu Zhang, NJYY

Successes:– Success of establishing ERP for a business unit – Success of designing data model in data warehouse

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. www.cio.com/images/newsletters/cio_erp.gif, www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm viewed October 28, 2009.


http://www.cio.com/images/newsletters/cio_erp.gif


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Operation analysis Administration analysis

OperationOperation

risk\Credit\Inner control

risk\Credit\Inner control

Finance analysis

AccountingAccounting

client

account supplie

rinventor

y

数据仓库

DW

商业智能BI

basic

ERP

Accounting SCM

Funds

Info system source

Outsourcing data

OLAP

OLA

P

OLAP

Wenyu Zhang, NJYY



Greatest Challenges





56


Challenges:“Acquiring a company is a nightmare! ……

constant period of changing tires on a moving car.”

– Recruiting / Development– Risk component – “Have to make a lot of

bets!”– Short-lived role– More benchmarking & innovation



57


Challenges:– Changing culture

• Stock split twice• Doubling in size for the third time• Scalable without laying off

– External Vendors – Managing Growth

– Closing deals in 4th Quarter - WellPoint

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.theteamgroup.com/images/logoScripts.jpg, viewed October 19, 2009. www.ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg, viewed October 19, 2009.


http://www.ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg

58

Wenyu Zhang, NJYY

IT strategy problem – Difficulty of unifying different ERPs of subsidiaries

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm viewed October 28, 2009.



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Wenyu Zhang, NJYY

• Lack of clear strategy process (change)

“In order to begin the project mandated by CEO, the CIO must first take a snapshot of the business with which IT is to be aligned---and that means that on day 2 of the project, the entire organization will be mapping its future against a model of past”.

----Cited from: Stop ‘Aligning IT With The business’

Bob Evans

Information week; Jan 19,2009



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Wenyu Zhang, NJYY

• Top management support– On the one hand ---a survey outcome

– On the other hand---pressure from CXOs

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm and www.smartsgroup.com/SSE.png viewed October 28, 2009.



http://www.smartsgroup.com/UserFiles/Image/Consultancy%20client%20logos/SSE.png

What keeps them up at night?





62


What keeps him up at night?– Speed!– Importance of being well connected– Lead time to deliver value

“I’ve never moved so fast in my life!”

“I’ve never moved so slow!”



63


What keeps him up at night?– Closing the year

• WellPoint• DOD Contract

– January 1st – busy with new enrollments– Business Priorities

Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009.www.theteamgroup.com/images/logoScripts.jpg, viewed October 19, 2009. www.ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg, viewed October 19, 2009.


http://www.ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg

64

Wenyu Zhang, NJYY

What keeps her up at night?

– Writing reports

– Meetings

– Boss



Relative Importance of Skills





66


“Don’t get too caught up in bits and bytes.”• See business value in all infrastructure &

software• Cross-functional moves• Learn to manage knowledge; surround

yourself with talented people• Always about people!



67


Mentality: Everything is important.– Prescriptions in Iraq– 20,000 prescriptions / year at Walgreens vs.

34M for Express Scripts

Good Talent – based on the economy



68

Wenyu Zhang, NJYY

Skills needed:

– Leadership and management

– Interpersonal skills

– Business

– Finance management

– Technology

Wenyu Zhang, CIO at Nanjing Pharmaceuticals, self-interview, October 19, 2009www.njyy.com/english.htm, viewed October 19, 2009. www.computer-agents.com/assets/images/cio_1_.gif, viewed October 28, 2009.


http://www.computer-agents.com/assets/images/cio_1_.gif

Data Comparison





70

Data Comparison

BUD ESRX NJYY2ndry

Sources

Educational Background

Undergrad Engineering & Mktg

MBA

Undergrad Computer Science

UndergradEconomics Mgmt.

MBAVariable

Professional Experience (IT vs. Biz Ops)

Business Operations

ITBusiness Ops

& ITVariable

Tenure as CIO 1 year 3 years 1 year4 - 6 years

CIO reports to: CEO COO CEO Variable

Gender Male Male Female Variable

Budget~$288M

(~1.6% of Revenue)~$241M

(~1.1% of Revenue)~$92M

(~0.5% of Revenue)Variable

Staff ~9001,100 Employees700 Consultants

40 Variable

Conclusions

72

Conclusions

• CIOs increasingly perceived as core management personnel, as opposed to “techies”.

• As CIOs assume higher profile roles within organizations, interpersonal/people/management skills are strong keys to success.

• Flexibility and responsiveness are important metrics used to evaluate CIO and IT department success.

Thank you!!!

74

Sources:Amssoms, Marianne, ed., ABInBev Annual Report, Walking Men, Leuven, Belgium.

Anheuser-Busch logo. Retrieved October 19, 2009, from http://www.fuhrerwholesale.com/images/AB3 copy.gif

A-B Beers. Retrieved October 19, 2009, from http://www.psfk.com/wp-content/uploads/s19031.gridserver.com/wp-content/uploads/psfk.com/anheuser_busch_beer.jpg

*Beatty, R., Arnett, K., and Liu, C. (2005), "CIO/CTO Job Roles: An Emerging Organizational Model,” Communications Of The IIMA, Vol. 5, No. 2, pp. 1-9.

Boss logo. Retrieved October 28, 2009, from www.cio.com/images/pic/edit/boss_cartoon.jpg

Business Dictionary. Definition: CIO. Retrieved October 25, 2009, from http://www.businessdictionary.com/definition/chief-information-officer-CIO.html

Carl Wilson photo. Retrieved October 25, 2009, from http://www.btminstitute.org/RetouchedPhotos/wilson_carl.jpg

CIO involvement pie graph. Retrieved October 22, 2009, from http://www.ndu.edu/IRMC/interactive_schedule/images/CIO_chart.jpg

CIO magazine logo. Retrieved October 25, 2009, from http://www.cscape.com/news/PublishingImages/cio-logo.gif

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Cummings, J. (2008) “Are CIO’s Losing Their Mojo,” Network World, Vol. 25, No. 14, pp. 34-36.

* Enns, H., Huff, S., and Higgins, C. (2003), “CIO lateral influence behaviors: gaining peers' commitment to strategic information systems,” MIS Quarterly, Vol. 27, No. 1, pp. 155-176.

ERP logo. Retrieved October 28, 2009, from www.cio.com/images/newsletters/cio_erp.gif* indicates refereed (scholarly/peer reviewed) article




http://www.cio.com/images/pic/edit/boss_cartoon.jpg

http://www.businessdictionary.com/definition/chief-information-officer-CIO.html

http://www.btminstitute.org/RetouchedPhotos/wilson_carl.jpg

http://www.ndu.edu/IRMC/interactive_schedule/images/CIO_chart.jpg

http://www.cscape.com/news/PublishingImages/cio-logo.gif

http://www.computer-agents.com/assets/images/cio_1_.gif

http://www.cio.com/images/newsletters/cio_erp.gif

75

Sources (cont’d):ESI ball photo. Retrieved October 19, 2009, from http://www.iaff1813.org/Express Scripts.jpgESXR. Retrieved October 19, 2009, from http://finance.yahoo.com/q?s=ESRXExpress Scripts logo. Retrieved October 19, 2009, from

http://www.theteamgroup.com/ images/ logoScripts.jpgEvans, Bob, “Stop Aligning IT With The Business,” Information Week, Vol. 1217, p. 68.Evans, Bob, “What CEOs Want From CIOs,” Information Week, Vol. 1218, p. 56.Gary Wimberly, CIO of Express Scripts, interviewed in person by Sheba Sands, October 19, 2009. Gary Wilson photo. Retrieved October 19, 2009, from

http://www.bycios.com/event_cio_es/speakers/id/117Getting to know Odilon. Retrieved October 19, 2009, from


Janco Associates. CIO Job Book. Retrieved October 25, 2009, from http://e-janco.com/Job_Book_CIO.htm

Janco. Retrieved October 25, 2009, from http://e-janco.com/Janco_Newsletter_090417.htm*Johnson, A., & Lederer, A. (2007). “The Impact of Communication between CEOs and CIOs on their

Shared Views of the Current and Future Role of IT,” Information Systems Management, Vol. 24, No. 1, pp. 85-90.

*Kaarst-Brown, K (2005). “Understanding An Organization’s View Of The CIO: The Role Of Assumptions About IT,” MIS Quarterly Executive, Vol. 4, No. 2, pp 287-301.

*King, W. (2008). “Including the CIO in Top Management,” Information Systems Management, Vol. 25, No. 2, pp.188-189.

*Luftman, J., Kempaiah, R. (2008), “Key Issues for IT Executives 2007,” MIS Quarterly Executive Vol. 5, No. 2, pp. 99-112.

* indicates refereed (scholarly/peer reviewed) article


http://finance.yahoo.com/q?s=ESRX

http://www.theteamgroup.com/%E2%80%8Cimages/%E2%80%8ClogoScripts.jpg

http://www.bycios.com/event_cio_es/speakers/id/117



http://e-janco.com/Job_Book_CIO.htm

http://e-janco.com/Janco_Newsletter_090417.htm

76

Sources (cont’d):*Luftman, J., Kempaiah, R. (2009), “Key Issues for IT Executives 2008.” MIS Quarterly Executive Vol.

8, No. 3, pp. 151-159.Maguire, J., “IT Salary Levels, 2004-2009,” Retrieved on October 6, 2009 from

http://itmanagement.earthweb.com/columns/print.php/3819081*Marchand, D. (2008), "The Chief Information Officer*: Achieving Credibility, Relevance and Business

Impact," Perspectives for Managers, No. 164, pp. 1-4.

Marriott logo. Retrieved October 25, 2009, from http://www.dwlogic.com/clients/images/Marriott_Logo.jpg

MIS Quarterly logo. Retrieved October 25, 2009, from http/::www.lib.washington.edu:business:guides:misq.gif

NJYY logo. Retrieved October 19, 2009, from http://www.njyy.com/english.htm

NJYY photos. Retrieved October 28, 2009, from www.njyy.com/html/gjmy/ppt/jk1_2.files/frame.htm

NJYY revenue and net income. Retrieved October 23, 2009, from http://img.hexun.com/2009-08-17/120591455.pdf

NYSE photo. Retrieved October 19, 2009, from http://abweb.corp.anheuser-busch.com/abweb2/pressarticle.aspx?guid=53064E05-1CBA-43F6-ADD2-A3648A2915E9

Odilon Queiroz, VP Information & Business Services at Anheuser-Busch, Inc., interviewed in person by Sheba Sands, September 28, 2009.

*Polansky, M., Inuganti, T. and Wiggins, S. (2004), “The 21st Century CIO,” Business Strategy Review, Vol. 15, No. 2, pp. 29-33.

Pratt, K, Mary, “5 Recession Survival Skills,” Computer World, Vol. 43, p. 21.


http://itmanagement.earthweb.com/columns/print.php/3819081

http://www.dwlogic.com/clients/images/Marriott_Logo.jpg



http://img.hexun.com/2009-08-17/120591455.pdf

http://abweb.corp.anheuser-busch.com/abweb2/pressarticle.aspx?guid=53064E05-1CBA-43F6-ADD2-A3648A2915E9

http://abweb.corp.anheuser-busch.com/abweb2/pressarticle.aspx?guid=53064E05-1CBA-43F6-ADD2-A3648A2915E9

77

Sources (cont’d):*Preston, D., Leidner, D., Chen, D. (2008). CIO Leadership Profiles: Implications Of Matching CIO

Authority and Leadership Capability On IT Impact. MIS Quarterly Executive, Vol. 7, No. 2, pp. 57-69.

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Requirements to be a successful CIO. Retrieved October 25, 2009, from http://e-janco.com/ctonews.php

SSE logo. Retrieved October 28, 2009, from www.smartsgroup.com/SSE.png State of the CIO Survey 2009. Retrieved October 25, 2009, from

www.assets.cio.com/documents/cache/pdfs/2009_state_of_the_cio_highlights.pdfThe State of the CIO ‘09. Retrieved October 25, 2009, from

http://h20338.www2.hp.com/hpfinancialservices/downloads/CIO_SOC_09%20HP_Reprint.pdf

WellPoint logo. Retrieved October 19, 2009, from http://ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg

SSE logo. Retrieved October 28, 2009, from www.smartsgroup.com/SSE.png


http://i.ehow.com/images/GlobalPhoto/Articles/5219155/AnnualReport-main_Full.jpg


http://www.smartsgroup.com/SSE.png


http://h20338.www2.hp.com/hpfinancialservices/downloads/CIO_SOC_09%20HP_Reprint.pdf.

http://ceoworld.biz/ceo/wp-content/uploads/2009/04/wellpoint.jpg

http://www.smartsgroup.com/SSE.png

the role of a chief information officer november 3, 2009 presented by: yiran chen, john halbert,...

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