“Entrepreneurs Ahoy: Running IT Like a Business” May 30, 2009.

“Entrepreneurs Ahoy: Running IT Like a Business”

May 30, 2009

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“There is no profession in the last 40 years that has

provided more opportunity to make a difference”

– Darwin John CIO (former CIO at the FBI, December 2004, CIO.com

The Brave New World

Abrupt changes in the world economic order

Recessionary environment globally; slowdown in India

Credit squeeze – marked slowdown in velocity of funds

No sector spared

Enterprises forced to re-appraise

R.I.P. – Business as usual

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Investment in IT

Businesses invest in IT to achieve six important business objectives

Operational excellence

New products, services, and business models

Customer and supplier intimacy

Improved decision making through real time data

Competitive advantage

Survival

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Role of Information Technology

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Risk – (Knee-jerk)

Cost (Budget-driven)

Platform For Business Ops (Operational)

Enabler of Business Improvement (Participative)

???????

Does IT understand Business Goals, Strategies and Markets

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Wharton Wipro survey of the emerging role of IT

Massive change from 2000 to 2008

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ENABLER DRIVER

SUPPORTER COST CUTTER

Strategic“competitive

”

Tactical“operational”

Reactive“following

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Proactive“leading”

Role of Information Technology

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Risk – (Knee-jerk)

Cost (Budget-driven)

Platform For Business Ops (Operational)

Enabler of Business Improvement (Participative)

Strategic Contributor (Transformational)

IT as a Value Center

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Service

Center

Investment Center

Cost Center Profit Cente

rValue Center

Business Capability

Operational Efficiency

MinimizeRisk

Maximize Opportunity

The ‘entrepreneurial’ CIO..?

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The Entrepreneur CIO

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S.E.L.F*self

* - Strategy Enhancement & Leadership Facilitation

Traits of the Entrepreneur CIO

Envision with conviction

Passionate about Idea

Focussed on Result

Take Risks

Deserve before you demand

Out of functional cocoon

Lead by Example

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Focus on Effectively Running IT as a Business

Structure one’s role as a Entrepreneur/ CEO

Understand customer business in depth

Focus on increasing overall business profitability and not just on lowering IT costs

Exploit multiple channels to communicate how IT drives business value

Tag IT performance directly to measurable business performance

Hold your peer-leaders accountable for how IT investments deliver this business value

Maintain a business-oriented enterprise architecture

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IT to be run ‘like’ not ‘as’ a Business

IT a significant contributor to a value chain, not necessarily a self‐contained value chain of its own

Technology deployment alone does not guarantee business success

Primary role – provide corporate leadership to business functions

Running IT like a business means adopting a business‐like mindset

Prepare to compete for strategic mindshare & investment

Prepare to be measured on strategic success

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“The person who grabs a cat by the tail learns

something he could not learn in any other way.”

- Mark Twain

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Questions/ Comments

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THANK YOU