Pete Van Vuuren

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Leading in Times of Transition:The 2010 CIO Agenda

Prof Pete Janse van VuurenExecutive PartnerGartner Africa

© 2010 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.

Leading in Times of Transition: The 2010 CIO Agenda

Transition gives the enterprise and IT the opportunity to reposition themselves and exploit the tough corrective actions taken during the recession.

While recovery will not come to everyone at the same time, enterprises and their CIOs can proceed with raising productivity and creating the capabilities needed to lead today and be well positioned for tomorrow.

CIOs expect IT to shift its focus from cost and consolidation to innovation and competitive advantage.

They have aspired to this shift for years, but economic, strategic and technological changes have only recently made it realistic.


About the 2010 Gartner Executive Programs CIO Survey

• Annual survey since 2000—the largest of its kind

• In 2010, 1,600 enterprises responded, representing more than $120 billion dollars in IT spend and covering all major industries and geographies

• Average enterprise has an IT budget of $66 million and an IT organization of 400 personnel

• Survey conducted from September 15 to December 30, 2009

• Survey focused on understanding CIO business priorities, strategies, technologies and budgets, along with the factors that drive effectiveness

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• Transition creates an economic premium on productivity

• CIO strategic technology supports more collaboration and innovation capabilities

• CIOs will lead today and reposition IT for the future

• CIOs will need to create their own transition—their own 2010 CIO agenda

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2010 is a year of transition for CIOs and their enterprises—in several ways

Transition aspect

Transitioning From:

TransitioningToward:

Impact on Enterprise and IT

Economic conditions

Economic contraction and recession where future prospects call for lower levels of growth and resources

Economic stabilization, recovery and growth, as conditions improve in terms of revenue and investment

Economic transition will change the enterprise’s strategic outlook, presenting tough decisions and new opportunities

Enterprise strategies

Cost-cutting efficiency as the enterprise matches its resources to declining revenue

Productivity, as the enterprise shifts to attracting and serving customers

Enterprises need to move toward profitable growth and innovation, requiring them to do more than just support current operations on a lower cost base

Enterprise technologies

Heavy, owned solutions requiring IT to operate or outsource technology at a fixed cost

Lighter-weight, scalable services with limited up-front cash and variable cost structures

Accelerated IT provisioning cycles for new and existing technology; reduced IT capital budgets; and reshaping the IT organization

IT’s role in the enterprise

Managing resources to create enabling technologies that demonstrate IT is not wasting money

Managing results by solving business issues in priority schedule; measuring performance in terms of business performance

Enterprises have greater choice in provisioning their technology (services, cloud or IT); they value IT when it creates results through its unique combination of business context, information and technology

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How CIOs manage this transition will set the course for IT’s future

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The economy places a premium on productivity

• In 2009, CIOs survived by managing IT cost-efficiencies in response to the global recession

• Few CIOs believe they can cut their way to success in 2010

• As part of the transition, CIOs are shifting their focus from efficiency to productivity

• All enterprises benefit from being more productive, regardless of when they transition from recession to recovery

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Business expectations for 2010 call for greater productivity and continued cost-efficiencies

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CIOs are shifting their focus from cost-efficiency to resource productivity

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IT budgets define the need for greater productivity

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The economy places a premium on productivity, requiring CIOs to address several issues

• How will the enterprise work differently to create additional capacity with the same level of resources?

• What structural changes do we need to make in the IT organization to raise productivity and service levels?

• How does the CIO increase resource flexibility and focus it on important and changing priorities?







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CIO strategic technology supports more collaboration and innovation capabilities

Productivity builds the foundation for enterprise performance and success

Still, enterprises need new capabilities that generate greater collaboration and innovation

Fortunately, technologies are coming onto the scene that support current CIO strategies and will help transition IT from an enabling function to a contributing capability

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CIOs see re-establishing IT’s role in the business and productivity as key for success

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CIO strategies for 2010 concentrate on immediate needs but with an eye to the future

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CIOs see their future strategic priorities moving toward greater business impact in 2013

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CIO strategic technologies reflect increased interest in “lighter-weight” solutions

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The future of IT will involve raising IT’s capability level

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CIO strategic technology supports more collaboration and innovation capabilities

• What is your plan to transition IT and its role in the enterprise?

• What is your current and required IT capability?

• How will you balance immediate needs for enterprise productivity and future innovation?

• What is the potential to transform your infrastructure, its capacity and its cost structure?

• What are the business opportunities for applying technology in the mid-office?

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CIOs will lead today and reposition IT for the future

The CIO’s leadership role faced challenges in 2009, but the best CIO leaders met those challenges.

As a group, CIOs see no future in returning IT to the past.

However, redefining IT’s role, contribution and structure requires a new level of leadership, as IT transitions from managing resources to creating results.

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The context for IT is shifting from managing resources to creating results

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CIOs will lead today and reposition IT for the future

CIOs looking to raise their profile and that of IT need to:• Concentrate on raising enterprise effectiveness

through focused projects and services

• Leverage current reporting relationships so that executives can sponsor CIO involvement outside of IT

• Transition IT management practices and metrics from a technical to a business orientation

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CIOs will need to create their own transition—their own 2010 CIO agenda

Raising productivity, creating capability and realizing the opportunities of the recovery involve continued change in the enterprise and IT.

During the recession, CIOs demonstrated their ability to control costs. In 2010, their agenda should be based on delivering both productivity and capability.

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Questions?

Pete Van Vuuren

Documents

cio agenda transition

times of transition

year of transition

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future cios

greater productivity

own2010 cio agenda

revenue productivity