1
The CIOThe CIOA look at the evolving role of the CIO.
Vicky HsinyuBill Keller
Nathaniel LarocheAaron McMurry
2
For Our Purposes…For Our Purposes…
CTOCTO Relied upon for IT architecture, Relied upon for IT architecture,
infrastructure, etc.infrastructure, etc. 80% IT and 20% Business80% IT and 20% Business
CIO: CIO: Integrates IT into the overall business Integrates IT into the overall business
strategystrategy Introduces emerging technologiesIntroduces emerging technologies 80% Business and 20% IT80% Business and 20% IT
3
IntroductionIntroduction•Demographics of today’s CIO
•An interview with Bryan Doerr, CIO/CTO of Savvis Communications
•An interview with Greg Anstead, CIO of Citi Home Equity
•The evolving role of the CIO
•The CIO, Compliance, and Security
• “The New CIO Leader”
4
Demographics of the CIODemographics of the CIO
1. IT/Technology…………………………71%
2. Business Operations (non-IT)………….7%
3. Consulting……………………………….7%
4. Engineering……………………………...3%
5. Finance/Accounting.……………………3%
http://www.cio.com/state/, viewed March 21, 2006
The source of past experience
5
Demographics of the CIODemographics of the CIO
Tenure
Less than 2 years………………………24%
2-5 years………………………………35%
5-10 years……………….……………..31%
More than 10 years……………..………9%
Average tenure for a CIO is 4 years 11 months. Contrast that with the average tenure of 28 months for a CFO.
http://www.cio.com/state/, viewed March 21, 2006
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Demographics of the CIODemographics of the CIOSalary by industry revenues
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
Large Company: >$1Billion Revenue
Mid Size Company $100Million - $1 Billion
Revenue
Small Company <$100Million Revenue
http://www.cio.com/state/, viewed March 21, 2006
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Demographics of the CIODemographics of the CIOWho CIOs reports to
CEO…………………….42%
COO…………………….14%
CFO……………………..23%
Corporate CIO…………..3%
Other……………………26%
CEO
COO
CFO
Corporate CIO
Other
http://www.cio.com/state/, viewed March 21, 2006
8
Demographics of the CIODemographics of the CIOHow CIOs spend their time
0% 20% 40% 60% 80%
Interacting with CXOs and Business Executive
Making Strategic Systems Decision
Strategic Planning
Leading Projects
Designing/Optimizing Business Processes
Integrating with IT Vendors, Outsourcers, and ServiceProviders
Managing Crises/Putting Out Fires
http://www.cio.com/state/, viewed March 21, 2006
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CIO InterviewsCIO Interviews Bryan Doerr, Bryan Doerr,
CIO/CTO of SavvisCIO/CTO of Savvis Greg Anstead, CIO Greg Anstead, CIO
of Citi Home Equityof Citi Home Equity
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Founded in 1995Founded in 1995 HQ in St. LouisHQ in St. Louis ~ 2000 employees~ 2000 employees > 5000 enterprise clients> 5000 enterprise clients One of the largest IP network and hosting One of the largest IP network and hosting
providers in the worldproviders in the world Goal is to become an application infrastructure Goal is to become an application infrastructure
utilityutility Security and reliability of a private infrastructureSecurity and reliability of a private infrastructure Cost effectiveness of a shared serviceCost effectiveness of a shared service
Company has strong technology emphasis due to Company has strong technology emphasis due to core service offering and evolution of the companycore service offering and evolution of the company
1 http://www.savvis.net/corp/Company+Information/Investor+Relations/http://www.savvis.net/corp/Company+Information/Investor+Relations/
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Example of serviceExample of service Connecting satellite offices and/or customers to headquarters Connecting satellite offices and/or customers to headquarters
ERP system via an intelligent IP virtual private network (VPN)ERP system via an intelligent IP virtual private network (VPN) -Or- have Savvis also host the ERP system at a Savvis data -Or- have Savvis also host the ERP system at a Savvis data
centercenter Each site can have own internet access as well as secure access Each site can have own internet access as well as secure access
to VPNto VPN VPN (single access circuit) can handle multiple applications, VPN (single access circuit) can handle multiple applications,
voice, video conference, CRM, etcvoice, video conference, CRM, etc
1 http://www.savvis.net/corp/Company+Information/Investor+Relations/http://www.savvis.net/corp/Company+Information/Investor+Relations/
HQHQRemote Remote Site ASite A
Remote Remote Site CSite C
Remote Remote Site BSite B
Savvis IP Savvis IP NetworkNetwork
Partner Partner Site BSite B
Partner Partner Site CSite C
Savvis Savvis Data Data
CenterCenter
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Savvis StatisticsSavvis StatisticsRevenueRevenue
http://www.savvis.net/NR/rdonlyres/1150CCDC-20D1-4CDA-9AA7-E77E21558A69/8782/factsglance2.pdf
$0
$100
$200
$300
$400
$500
$600
$700
$800
2000 2001 2002 2003 2004 2005
Reven
ue $
US
Mil
lio
n
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Savvis CIO – Bryan Savvis CIO – Bryan DoerrDoerr11
BRYAN DOERR is Chief Technology/Information BRYAN DOERR is Chief Technology/Information Officer at SAVVIS CommunicationsOfficer at SAVVIS Communications
CIO role began in 2003CIO role began in 2003 Leads product R&D, OSS development, traffic Leads product R&D, OSS development, traffic
engineering and cost management, customer engineering and cost management, customer solutions, and back-office system development. solutions, and back-office system development.
Mr. Doerr held positions in management, Mr. Doerr held positions in management, software technology research, and software software technology research, and software development at Bridge Information Systems, development at Bridge Information Systems, Boeing, and the Applied Physics Laboratory.Boeing, and the Applied Physics Laboratory.
EducationEducation Masters Degree in Electrical Engineering from Masters Degree in Electrical Engineering from
Johns Hopkins University in Baltimore, MarylandJohns Hopkins University in Baltimore, Maryland Masters Degree in Information Management from Masters Degree in Information Management from
Washington University in St. Louis, Missouri. Washington University in St. Louis, Missouri.
1 http://www.savvis.net/corp/Company+Information/Investor+Relations/http://www.savvis.net/corp/Company+Information/Investor+Relations/
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Savvis Executive TeamSavvis Executive TeamPhilip Koen
CEO
John FinlaysonCOO
Jeffrey Von DeylenCFO
Bryan DoerrCTO/CIO
HR SVP
Product Mgt SVP
Sales SVP
Global Accounts SVP
Operations SVP
EMEA GM
Asia GM
VP Product EngineeringVP Product Engineering
Advanced Planning TeamAdvanced Planning Team
VP EngineeringVP Engineering
VP Business IntegrationVP Business Integration
VP Global Operations System ArchitectureVP Global Operations System Architecture
Chief ScientistChief Scientist
VP Global Systems DevelopmentVP Global Systems Development
Process Management DirectorProcess Management Director
All Managers above (excluding shaded area) are part of Tier 1 Executive Team.
• All have equal access to CEO and equal influence
• All have their own budget
• Bi-monthly meetings
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
IT focused business with ‘Engineering’ focused staff.
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Strategic
Operational
CIO Role at SavvisCIO Role at Savvis Combines CTO and CIO Combines CTO and CIO
rolesroles Mr. Doerr had CIO type Mr. Doerr had CIO type
responsibilities before responsibilities before current role and took on current role and took on CTO responsibilities when CTO responsibilities when accepting his current roleaccepting his current role
IT management is IT management is centralizedcentralized No silos or divisional CTOsNo silos or divisional CTOs
CTO vs CIO focus is CTO vs CIO focus is business drivenbusiness driven Focus right now is more CIO Focus right now is more CIO
focusedfocused CIO 65% / CTO 35%CIO 65% / CTO 35%
Possible for this to swing Possible for this to swing back (reverse)back (reverse)
Strategic
Operational
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
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Top Priorities for 2006Top Priorities for 2006 Continued Integration of SystemsContinued Integration of Systems
Internal system integration due largely to Internal system integration due largely to acquisitions and providing IT efficiencyacquisitions and providing IT efficiency
Improve position for legislative Improve position for legislative requirementsrequirements SOXSOX
Business Process EfficiencyBusiness Process Efficiency Automating operational tasks and helping Automating operational tasks and helping
users improve their business metricsusers improve their business metrics
Top priorities seem more focused onTop priorities seem more focused onCTO/Operational goals for this yearCTO/Operational goals for this year
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
Non Valued-Non Valued-AddedAdded
OperationalOperational
Non Valued-Non Valued-AddedAdded
OperationalOperationalValued-AddedValued-Added
StrategicStrategic
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What keeps you up at What keeps you up at night?night?
The right systems architectureThe right systems architecture Too slow in getting thereToo slow in getting there
Operational vs. strategic tradeoffOperational vs. strategic tradeoff ““figuring out how long you can freeze figuring out how long you can freeze
something to fix it is a challenging problem”something to fix it is a challenging problem” Conflicting Tier 1 prioritiesConflicting Tier 1 priorities Level of short-term sacrifice for long-term benefitLevel of short-term sacrifice for long-term benefit
Lesson Learned from Quote/Order System Lesson Learned from Quote/Order System Development:Development: ““if they [user community] can’t draw the if they [user community] can’t draw the
process, don’t even start it”process, don’t even start it”
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
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CIO SkillsCIO Skills
1.1. PeoplePeople• Leadership and flat executive structureLeadership and flat executive structure
2.2. TechnicalTechnical• Savvis is highly technology focusedSavvis is highly technology focused• ““If I don’t have the vision of what the If I don’t have the vision of what the
[technical] structure will be, I can’t lead [technical] structure will be, I can’t lead people”people”
3.3. BusinessBusiness• May be interesting to see if this May be interesting to see if this
changes with new CEOchanges with new CEO
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
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How is CIO EvaluatedHow is CIO Evaluated
Subjective, company wide modelSubjective, company wide model
Operational
Compliance
Specific BusinessObjectives
Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.Bryan Doerr, CTO/CIO of Savvis, interviewed in person by Bill Keller, March 29, 2006.
20
Citi Home Equity Citi Home Equity StatisticsStatistics
Fortune 1000 Companies Net Income($MM)
Starbucks 392Office Depot 335Office Max 335Foot Locker 293SuperValu 280
Citi Home Equity(CHE) 277
Apple Computer 276Monsanto 267Aramark 263Darden Restaurants 232Ryder 216Owens Corning 204Bausch & Lomb 160Timberland 153Dillards 118
Citi Home Equity’s $277 MM of Net Income in 2006 would rank number 330 on latest Fortune 1000 list.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
21
Citi Home Equity Citi Home Equity StatisticsStatistics
$22.8$44.2
$65.1$103.0
$243.8
$480.7
0
100
200
300
400
500
600
2000 2001 2002 2003 2004 2005
$ M
illio
ns
Revenues
22
Citi Home Equity Citi Home Equity Organizational StructureOrganizational Structure
Citi Home EquityCitiMortgageStudent LoansAuto Loans
Consumer LendingGroup
BankcardsCitiFinancial
Global ConsumerGroup
CitiGroup
Corporate andInvestment
Banking
Global WealthManagement
AlternativeInvestments
Each business unit has a CIO that reports to a CEO. All technology is generally left on the SBU level.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
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Citi Home Equity CIO: Greg Citi Home Equity CIO: Greg AnsteadAnstead
EducationEducation AA in Computer ScienceAA in Computer Science BS in Computer Science/BS in ManagementBS in Computer Science/BS in Management Masters in ManagementMasters in Management
Recent ExperienceRecent Experience CTO with Citigroup Real Estate and CTO with Citigroup Real Estate and
Technology for 2 years managing a Technology for 2 years managing a development group of 400.development group of 400.
CIO of Citi Home Equity for the last 15 CIO of Citi Home Equity for the last 15 monthsmonths
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
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Greg Anstead Interview Greg Anstead Interview NotesNotes
How do you see your role in the How do you see your role in the organization?organization?““To provide technology solutions for the To provide technology solutions for the
business to be competitive, reduce cost, business to be competitive, reduce cost, and increase innovation.”and increase innovation.”
What keeps you up at night?What keeps you up at night?
Control is issue number one at Citigroup as Control is issue number one at Citigroup as one bad audit could “shut this business one bad audit could “shut this business down” and compromise the integrity of down” and compromise the integrity of Citigroup.Citigroup.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
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Greg Anstead Interview Greg Anstead Interview NotesNotes
How is your performance evaluated?How is your performance evaluated? TacticallyTactically StrategicallyStrategically Politically – being able to relate to CEO’s Politically – being able to relate to CEO’s
managers. This is actually weighted managers. This is actually weighted heavier then the tactical (operational) or heavier then the tactical (operational) or strategic portions of his performance.strategic portions of his performance.
Current role is more operational then Current role is more operational then strategic due to tremendous growth.strategic due to tremendous growth.
Role should be 80% strategic and Role should be 80% strategic and 20% tactical.20% tactical.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
26
The re-org of Citigroup’s The re-org of Citigroup’s North American IT!North American IT!
Citi Home EquityCitiMortgageStudent LoansAuto Loans
Consumer LendingGroup
BankcardsCitiFinancial
Global ConsumerGroup
CitiGroup
Corporate andInvestment
Banking
Global WealthManagement
AlternativeInvestments
North American
IT
Each SBU has a CIO that reports to a corporate CIO with a dotted line to the SBU’s CEO.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
27
The result of the Citigroup The result of the Citigroup reorgreorg
Old model: each SBU has their own CIO
New model: each SBU’s CIO reports to a corporate CIO with a dotted line to the SBU’s CEO
What do you believe are the goals/benefits of this organization?
What do you see as some potential drawbacks?
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The result of the Citigroup The result of the Citigroup re-orgre-org
Greg Anstead noted in his interview that the goal of this centralization is to:
•drive down cost
•improve consistency
•present one face to customers
•improve our compliance with regulators.The potential drawback is a lack of focus reporting to a corporate CIO and a dotted line to the SBU’s CEO.
Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.Greg Anstead, CIO of Citi Home Equity, interviewed in person by Nathaniel Laroche, March 27, 2006.
29
Development of the CIODevelopment of the CIO
Operations
HR
SalesManufacturing
Service Delivery
Customer Service
FinanceBilling
A/R
A/P
Budgeting
External Reporting
Supplier MGT
Technology
Early on business functions are silos of
excellence.
30
Development of the CIODevelopment of the CIO
Operations
HR
SalesManufacturing
Service Delivery
Customer Service
FinanceBilling
A/R
A/P
Budgeting
External Reporting
Supplier MGT
Technology
Technology supports functional
improvements
IT is recognized by internal
stakeholders as a key tool for operational efficiency.
Early on business functions are silos of
excellence.
31
Development of the CIODevelopment of the CIO
Operations
FinanceCFO
Technology
CTO
OperationsCOO
Technology
RegulatoryCusto
mers
Industry
The organization must also respond to
external forces.
Coordination between silos must
increase.
CIOIT becomes more an integral to the
business.
32
Role of CIO with External and Role of CIO with External and Internal DemandsInternal Demands
Technology
Finance
Operations
CIO
Demands on Business:
•Customers (speed, reliability, accuracy, security)
•Supply Chain
Demands on Business:
•Customers (accessibility, integration)
•B2B
Demands on Business:
•Shareholders (reporting, planning)
•Regulatory (reporting and compliance)
•Financial Markets (reporting and compliance)
COO CTO
CFO
33
Role of CIO within Citi Home Role of CIO within Citi Home Equity and the implementation Equity and the implementation
of a new systemof a new system
Technology
Finance
CFO
Operations
COO
CIO
Demands on Business:
The COO needs to understand how the new website will affect workflow and customer care.
Demands on Business:
The CTO needs help in understanding the business requirements of a new Orginiations website.
Demands on Business:
The CFO needs to be a part of and understand the questions asked in the website to be sure they meet credit standards.
CTO
34
The changing role of the The changing role of the CIOCIO
1986 ranking of top 10 issues*1. Facilitating/managing end-user computing
2. Translating information technology into competitive advantage
3. Having top management understand needs and perspective of IS
4. Measuring and improving effectiveness/productivity
5. Keeping current with changes in technology
6. Managing information resources
7. Integration of IS technologies
8. Data security and control
9. Impact of new technology
10.Training and educationPassino, Jacque H., Jr., and Severance, Dennis G., “The Changing Role of the Chief Passino, Jacque H., Jr., and Severance, Dennis G., “The Changing Role of the Chief Information Officer” Information Officer” Planning ReviewPlanning Review, Vol. 16, 5, Sep/Oct 1988, pp. 38-42., Vol. 16, 5, Sep/Oct 1988, pp. 38-42.
35
The changing role of the The changing role of the CIOCIO
1986 ranking of top 10 issues*1. Facilitating/managing end-user computing
2. Translating information technology into competitive advantage
3. Having top management understand needs and perspective of IS
4. Measuring and improving effectiveness/productivity
5. Keeping current with changes in technology
6. Managing information resources
7. Integration of IS technologies
8. Data security and control
9. Impact of new technology
10.Training and education
More of an operational
focusPassino, Jacque H., Jr., and Severance, Dennis G., “The Changing Role of the Chief Passino, Jacque H., Jr., and Severance, Dennis G., “The Changing Role of the Chief Information Officer” Information Officer” Planning ReviewPlanning Review, Vol. 16, 5, Sep/Oct 1988, pp. 38-42., Vol. 16, 5, Sep/Oct 1988, pp. 38-42.
36
The changing role of the The changing role of the CIOCIO
2005 ranking of top 10 issues*1. Cost containment
2. Data security and integrity
3. Fiscal compliance and data transparency
4. Revenue and business growth
5. Innovation of products and services
6. Stakeholder pressure
7. Risk Management
8. Customer data integration
9. E-business/E-government
10.Privacy
Guptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” Guptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” OptimizeOptimize, Vol. 4, 5, May 2005, pp. 77-80., Vol. 4, 5, May 2005, pp. 77-80.
37
The changing role of the The changing role of the CIOCIO
2005 ranking of top 10 issues*1. Cost containment
2. Data security and integrity
3. Fiscal compliance and data transparency
4. Revenue and business growth
5. Innovation of products and services
6. Stakeholder pressure
7. Risk Management
8. Customer data integration
9. E-business/E-government
10.Privacy
Major strategic initiatives 20 years
laterGuptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” Guptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” OptimizeOptimize, Vol. 4, 5, May 2005, pp. 77-80., Vol. 4, 5, May 2005, pp. 77-80.
38
The changing role of the The changing role of the CIOCIO
2005 ranking of top 10 issues*1. Cost containment
2. Data security and integrity
3. Fiscal compliance and data transparency
4. Revenue and business growth
5. Innovation of products and services
6. Stakeholder pressure
7. Risk Management
8. Customer data integration
9. E-business/E-government
10.Privacy
Two relatively new and highly emphasized issues for CIOs!
Guptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” Guptill, Bruce, and Koenig, Mark, “CIOs Budget for Business” OptimizeOptimize, Vol. 4, 5, May 2005, pp. 77-80., Vol. 4, 5, May 2005, pp. 77-80.
39
Demands on Business and Demands on Business and CIO: ComplianceCIO: Compliance
Section 404 of Sarbanes-Oxley Act Section 404 of Sarbanes-Oxley Act requires management’s assessment and requires management’s assessment and signoff on all internal controls.signoff on all internal controls.
1http://www.cio.com/archive/070104/sarbox.html, viewed 3/3/2006
“ “When CIOs began installing ERP When CIOs began installing ERP systems…theysystems…theyunwittingly took something that used to unwittingly took something that used to belong to CFOs: financial controls.”belong to CFOs: financial controls.”11
One of Greg Anstead’s biggest objectives One of Greg Anstead’s biggest objectives was to maintain compliance and meet audit was to maintain compliance and meet audit standards for fear what poor audit results standards for fear what poor audit results could do to the whole corporation!could do to the whole corporation!
40
Demands on Business and Demands on Business and the CIO at Citi Home the CIO at Citi Home Equity: ComplianceEquity: Compliance
Technology
CTO
Finance
CFO
Operations
COO
CIO
Demands on Business:
COO is required to document all processes as part of SOX requiring functional information on IT systems.
Demands on Business:
CTO must build, improve, and implement systems that meet new regulations.
Demands on Business:CFO required to with auditors to look at data systems to comply with the Sarbanes-Oxley Act and the Graham-Leach Act.
41
Demands on Business and Demands on Business and the CIO: Securitythe CIO: Security
Identity theft, phishing scams, intellectual Identity theft, phishing scams, intellectual property theft are just three examples of property theft are just three examples of the types of information security threats. the types of information security threats.
““Just 37 percent of respondents reported that they Just 37 percent of respondents reported that they had an information security strategy—and only 24 had an information security strategy—and only 24 percent of the rest say that creating one is in the percent of the rest say that creating one is in the plans for next year.”plans for next year.”11
Going back to the Citi Home Equity interview Going back to the Citi Home Equity interview security was identified as a major component to security was identified as a major component to Citigroup’s success and a major initiative at Citi Citigroup’s success and a major initiative at Citi Home Equity.Home Equity.
1 www.cio.com/archive/091505/global.html, viewed 3/3/2006 , viewed 3/3/2006
42
Security demands on the Security demands on the Business and the CIO at Business and the CIO at
Citi Home EquityCiti Home Equity
Technology
CTO
Finance
CFO
Operations
COO
CIO
Demands on Business:
Entitlement reviews go out across the business checking for unauthorized access.
Demands on Business:
The CTO must implement technical controls to tighten access to systems and to be sure all systems are relatively hack proof.
Demands on Business:
CFO must work with Technology to be sure systems are secured and access is controlled.
43
From What to HowFrom What to How
Necessities for the leap from CTO to CIONecessities for the leap from CTO to CIO LeadershipLeadership
CredibilityCredibility Communication & Relationship buildingCommunication & Relationship building
Business KnowledgeBusiness Knowledge Know Your EnterpriseKnow Your Enterprise Competitive environment, business Competitive environment, business
fundamentals, etc.fundamentals, etc. VisionVision
Where can IT strengthen customer Where can IT strengthen customer relationships and impact growth?relationships and impact growth?
Broadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston, MA, 2005.
44
Leadership: Deliver Results Leadership: Deliver Results that Matterthat Matter
CredibilityCredibility To build credibility with your fellow To build credibility with your fellow
executives:executives: Deliver results that matter to themDeliver results that matter to them How does it help executive colleagues meet How does it help executive colleagues meet
their goals?their goals?Initial Initial
CredibilityCredibility
OutcomesOutcomes
ResulResultsts
ResourcesResources
CredibilityCredibility
Lost Lost CredibilityCredibilityBroadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston,
MA, 2005.
45
Leadership: Play PoliticsLeadership: Play Politics
Communication is the KeyCommunication is the Key Push, Prod, Educate & StimulatePush, Prod, Educate & Stimulate 20% of CIO’s time20% of CIO’s time
Build RelationshipsBuild Relationships Build “Political Capital”Build “Political Capital”
Know key stakeholdersKnow key stakeholders Convert opponent; Strengthen advocatesConvert opponent; Strengthen advocates
Broadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston, MA, 2005.
46
Business: Know Thy Business: Know Thy EnterpriseEnterprise
Industry & Competitive EnvironmentIndustry & Competitive Environment Where does the enterprise stand relative Where does the enterprise stand relative
to its competitors?to its competitors? Lagging, Maintaining or LeadingLagging, Maintaining or Leading
Business FundamentalsBusiness Fundamentals Competitive Advantage & StrategyCompetitive Advantage & Strategy
Industry TrendsIndustry Trends What developments will impact the firm?What developments will impact the firm?
Business maximsBusiness maxims IT maxims IT maxims IT IT initiativesinitiatives
Broadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston, MA, 2005.
47
Vision: Don’t Just Manage, Vision: Don’t Just Manage, LEAD!LEAD!
Based On:Based On: Economic model of Economic model of
enterpriseenterprise Strategic intent & Strategic intent &
endeavorsendeavors Seize the Seize the
OpportunityOpportunity Generate ITO’s Generate ITO’s Choose wiselyChoose wisely
Don’t follow the Don’t follow the hypehype
Pilot programsPilot programs Testing phaseTesting phase
Broadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston, MA, 2005.
TechnologyTrigger
Peak of InflatedExpectations
Trough ofDisillusionment
Slope ofEnlightenment
Plateau ofProductivity
Visibility
48
In the FutureIn the Future
No More IT Projects! No More IT Projects! IT Projects are Business projectsIT Projects are Business projects
CIO as an Enterprise Business LeaderCIO as an Enterprise Business Leader Implement strategic initiativesImplement strategic initiatives Create competitive advantageCreate competitive advantage Capitalize on opportunities (emerging tech.)Capitalize on opportunities (emerging tech.)
Broadbent, Marianne, and Kitzis, Ellen, The New CIO Leader, Harvard Business School Press, Boston, MA, 2005.
49
What questions do you What questions do you have?have?
50
AppendixAppendix
51
Demands ‘By’ the Demands ‘By’ the BusinessBusiness
Operations
HR
SalesManufacturing
Service Delivery
Customer Service
FinanceBilling
A/R
A/P
Budgeting
External Reporting
Supplier MGT
Technology
Make this easier, less manual, and more effective.
52
Demands ‘By’ the Demands ‘By’ the BusinessBusiness
FinanceBilling
A/R
A/P
Budgeting
External Reporting
Operations
HR
SalesManufacturing
Service Delivery
Customer Service Supplier
MGT
Technology
Make this easier, less manual, and more effective.
IT plays a larger role in business processes.
Head of Technology is called upon for intra-functional process
improvement.
IT recognized by business a key
tool for operational efficiency.
53
Demands ‘By’ the Demands ‘By’ the BusinessBusiness
FinanceBilling
A/R
A/P
Budgeting
External Reporting
HR
Operations
SalesManufacturing
Service Delivery
Customer Service Supplier
MGT
Make this easier, less manual, and
more effective.
Technology
Head of Technology is called upon for inter-functional
process improvement.
IT becomes more integral to the
business.
CTO role manages demands ‘by’ the
business.
CTO
54
Role of CIO with External and Role of CIO with External and Internal DemandsInternal Demands
Technology
Finance
Operations
CIO
Demands on Business:
•Customers (speed, reliability, accuracy, security)
•Supply Chain
Demands on Business:
•Customers (accessibility, integration)
•B2B
Demands on Business:
•Shareholders (reporting, planning)
•Regulatory (reporting and compliance)
•Financial Markets (reporting and compliance)
COO CTO
CFO
55
Role of CIO Citi Home Role of CIO Citi Home EquityEquity
Technology
CTO
Finance
CFO
Operations
COO
CIO
Demands on Business:
•Customers (speed, reliability, accuracy, security)
•Supply Chain
Demands on Business:
•Customers (accessibility, integration)
•B2B
Demands on Business:
•Shareholders (reporting, planning)
•Regulatory (reporting and compliance)
•Financial Markets (reporting and compliance)