cio pulse sept 2008
DESCRIPTION
observations on the state of business and technology in the fall of 2008TRANSCRIPT
Abbie Lundberg, Editor in Chief, CIO
advice.cio.com/blogs/difference_engine
CIO PulseSeptember 2008
22
business realities
Demand for growthEconomic uncertainty
Shifting business modelsDigital natives, consumerization of IT
High yet ill-defined expectationsInnovation and risk
33
44
economic uncertainty
photo by Fadzly Mubin
55
66
77
shift to cost cutting
What is the primaryFocus of yourInvestments?
CreateToplineRevenuegrowth
EnableBusinessProcessInnovation
Lower theOperatingcost of IT
Manage ITInfrastructur
eMoreefficiently
Past 12 months 20% 39% 16% 26%
Next 12 months 21% 37% 22% 19%
CIO Budget & Staffing Survey, June 2008
88
from ROI to TCO
Most important factor driving your ITInvestments the next 12 months
Jan. 2008 June 2008
Return on investment (ROI) 59% 52%
Total cost of ownership (TCO) 41% 48%
CIO Budget & Staffing Survey, June 2008
99
contingency plans
Do you have a contingency plan in place in the event you need to make cuts to your IT budget?
Yes, contingency plan currently in place 48%
Not yet but planning to implement 20%
No plans for contingency plan 32%
68%
CIO Budget & Staffing Survey, June 2008
1010
If a recession is to occur, how confident are you in your organization’s ability to manage through it?
riding the recession
Source: CIO Strategic IT Research Study, IDG Research, April 2008
1111
some examples
1212
extreme measures:TCO = 0?
1313
shifting business models
1414
digital
natives
web 2.0
consumerization of IT
1515
employees & customerswant to… • Create
» Blogs, videos, wikis, machinima (remixes)• Communicate, collaborate, share & engage
» IM, text messaging, social networking, photo sharing
• Participate, influence & be recognized» Rate & be rated, comment, vote
• Choose their own tools
1616
consumerization of the enterprise
Bechtel’s Project Services Network
• Infrastructure-to-apps overhaul of technology environment
• Goal: secure, ubiquitous, simplified, rapidly deployable access to corporate and customer information to any user around the world
• Role Models:» YouTube: high-bandwidth networking» Google: leveraged infrastructure» Amazon: extreme virtualization» Saleforce: multi-tenant application support
Upcoming issue of CIO Magazine, Nov. 1, 2008. www.cio.com
1717
enterprise web 2.0 spending
Source: Forrester Research
1818
shift to customer 2.0
• Large businesses spend more on employee collaboration tools than customer-facing Web 2.0
• That trend will reverse by next year
• By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration
Source: Forrester Research
1919
2020
innovation
risk
2121
discussion questions1. What strategies are you employing today to hedge
against rising prices and changing consumer behavior?
2. Is there still room to deliver more in the way of IT services while continuing to take out cost?
3. How suited is your IT infrastructure to a world of rapidly changing demand? What’s the best way to get to a YouTube/Amazon/Google infrastructure?
4. How do you balance innovation and risk?5. Case 1 – Your CEO sees opportunity in entering a
completely new and different market. What’s the first thing he needs to know from you?
6. Case 2 – Your company gets bought by a private equity firm and they want to quickly spin off some of your businesses. What do you do first?
7. Case 3 – The bottom falls out of a big chunk of your business. What’s the highest impact thing IT can do to a) cut costs quickly? b) shift to growth opportunities?