IT Strategy and Management: Navigating the Challenge Ahead

Art WittmannManaging DirectorInformationWeek AnalyticsISB201

About Art WittmannDirector of University of Wisconsin Engineering Computing Center 1990-1996

Editor of Network Computing 1996 – 1999

Editor in Chief of Network Computing2004 – 2007

Editor of InformationWeek, Director of InformationWeek Analytics 2007 - Present

About InformationWeek AnalyticsTwenty to forty page reports on:Research:

15 – 25 questions on technology adoption and user perceptions200 – 800 responses typically 80% IT, 20% non-IT managementtypically 50% over 1000 employees, 50% under

Analysis:Experts with real world, practical experienceProvide best practicesEvaluation methodologiesRisk assessment and avoidanceOrganizational requirements and dynamicsArchitectural options

Bad Times

E

B

D

F

C

A – Bank Run Of 1907

B – Great Depression

C – Recession of 1958

D – Oil Embargo of 1973

E – Iranian Revolution & Oil Run Up of 1981

F – Tech Bubble Burst 2001

B

C

D

A

F

Big Opportunities

A B

ED

F

C

A – UPS and Bell & Howell Launch

B – Allstate Insurance Launch

C – Avis and Budget Launch

D – Clear Channel and SkyWest Launch

E – MTV, Whole Foods, Sun Micro and Adobe Launch

F – Riverbed, Genomics and Wynn Resorts Launch

Long Term Economic and Population Growth

From Past Recessions We Know… Recessions are followed by comparatively long periods of growth

The deeper the recession, the stronger the post-recession period

Recessions create new markets and new opportunities

While businesses fail in recessions, whole industries rarely do

Technology tends to be a destabilizing influence on the economy

… But What About THIS Recession?

"Openings [for top IT spots] are declining, companies are not replacingpeople or they're not going outside to replace them,“

-- Beverly Lieberman, President,Halbrecht Lieberman Associates

“[I’m] aware of about 10 to 12 companies on the East Coast in the midrange of $200 million to $3 billion in revenue that are using this stalling tactic

of not filling a CIO vacancy to save money right now. If a CFO can save a company $140,000 by not replacing the CIO right now, that's

what they'll do”

-- Michael Kirven, co-founder and principal of Bluewolf

Ballmer sees “Fundamental Reset”

“In my view, what we now have will be a fundamental economic reset. The economy is going to have to re-establish itself at a level of spending that reflects the real value of underlying assets before we can all start growing again at a healthy rate.”

Resetting the Business for Success

• Move past cost cutting, and reacquaint yourself with your business partners – and how they make money

• Virtualize, automate and embrace a services model

• Consider the businesses your IT organization doesn’t need to be in

• Be data driven

What IT Thinks is Expected

Success in Software

69% made some money on software

Only 31% used revenue as a success metric.

When Development Goes Wrong

National Semiconductor Stats

Founded: 1959

Employees: 7000

Revenue: $1.89 billion

US Patents: 3,100

Total Products: over 15,000

Product Focus: “Analog Intensive” chips

National’s “Chicken and Egg Dilemma”

Distributors are a key part of National’s business

Because so many new parts are created each year, distributors arereluctant to carry them in inventory

Electronics designers won’t use parts that aren’t in inventory

Douglas Owens – Central Planning and Production

Sheau-Huey Yuan – Applications Director

Solution: Virtual Inventory

Lessons From Nat Semi

Spend real time with your line of business partners

Each National IT manager spends two weeks in the field

Service oriented development can pay off in ways that you might not anticipate

Prototype and beta test with your business partners

How Harrah’s Wins

Tim Stanley – CIO & Sr. VP of Innovation,Gaming,Technology

Innovation at Harrah’sUsing RFID and interactive terminals, Harrah’s:

tracks customers, with perks for preferred customers

lets groups such as families find each other

lets customers make purchases at Harrah’s without a wallet or room key – at a pool or spa

lets customers gamble from anywhere within Harrah’s resorts via virtual gaming

Lessons from Harrah’s

Be data driven

Try new ideas

Contribute to the bottom line

Virtualization Goes Mainstream

Why Virtualization?

Production Virtualization Requires APM

Applications Go Mobile

Rich Internet Apps

Why Develop Rich Internet Apps?

SOAs Morph Toward Web Services

What’s Hot?

Make IT Matter

IT must be:VirtualizedAutomatedService EnabledData Driven

So that IT can work with line of business partners to drive new business and revenue

Thank You!

Resources:

InformationWeekAnalytics.com

InformationWeeekReports.com

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Resources

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http://www.technet.com/itmanagement/

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© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS,

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