the cios agenda in turbulent times by tariq elsadik
TRANSCRIPT
The CIO Agenda in Turbulent Times
Tariq Elsadik CGEIT, CISA, CISM, CISSP, MBCS, BS7799 LA, EFQM LA, ISO 20000 Consultant
Chief Information/Excellence Officer
CIO Middle East Strategies
The Scene
Opportunities
Approach
The Challenge
What would you do when you are confronted with …
2007 – 2009 Global Financial Crisis
According to the IMFThe Global economic slowdown is so severe that the world economy will contract for the first time in 60 years
Slide 5
Don’t just panic, chart your course of action
Driven by greed…
The Whole of Science is nothing more than a
refinement of everyday thinking
1. Change is the only Constant2. Change isn’t only about the Big things, but about a series of little things3. Change is disruptive but at the same time presents opportunities
The Winds of Change have blown indeed…
The Scene
Opportunities
Approach
The Challenge
mainthe
challenge
INSANITY: doing the same thing over and over
again and expecting different results
Albert Einstein
“
”
think outside-of-the box
IT / Business Culture
Every organization has an alignment culture between the business and IT, and each is as unique as the organization itself. It can be:
collaborative or argumentative, structured or unstructured. An integral part of the business planning and operational processes or added on to as an afterthought. It can be ingrained or it can be reactive
Slide 11
Are we doing the right things?
Are we getting the benefits from the investments we
make?
The Strategic Question: Is the investment? In line with our vision Consistent with our businesses principles Contributing to our strategic goals Providing optimal value, at affordable cost,
at an acceptable level of risk
The Value Question: Do we have? A clear and shared understanding of the
expected benefits Clear accountability for realizing the benefits Relevant metrics An effective benefits realization process
Come to terms with the Business View
Are we doing them the right
way?
Are we getting them done
well?
The Architecture Question: Is the investment? In line with our architecture Consistent with our architectural principles In line with other initiatives
The Delivery Question: Do we have? Effective and disciplined service
management Competent and available technical and
business resources to deliver the required capabilities
Come to terms with the IT View
Increasing the understanding and
transparency of costs, risks and
benefits
Increasing the probability of
selecting those investments with the
highest potential return
Increasing the likelihood of success
of executing the selected investments
(Project Mastery)
Who Moved My Cheese?A. IT Budgets are under increased PressureB. Nimble but…Transforming an organization is always challengingC. Change Drivers … External = Urgent (Macro) vs Internal = More Time. D. Expectations of service will not reduce, but support for investment, training,
people development will.E. Business / IT Alignment … is still very much an Open Issue
Passion to get things done and challenge the status quo
The IS
Operational Excellence – Cost
Leadership
Product Leadership -
Differentiation
Customer Intimacy – Focus/Niche
1 - The Efficient Management Of People
2 - The Management Of Efficient Processes
3 - Dedication To Measurement Systems
4 - Management Of Customer Expectations
Operational Excellence Success Principles
KNOW THY VALUE-PROPOSITIONThe CIO span of influence and accountabilities have been changing and expanding. Yet, perhaps the greatest opportunity to be an invaluable strategic partner lies ahead
Governed by
Applications Processes People Infrastructure
IT Services
ITEn
viro
nmen
t
Business Services
Business People
Business Processes
Bus
ines
sEn
viro
nmen
t
Suppliers / Customers
Mar
ket
Envi
ronm
ent
Interaction Flow
Enterprise Spread
Interact with
Executed by
Enabled by
Developed Through
Aligning Business & IT Goals
Vision / Mission / Business Goals
Objective: Define a Set of Top Objectives to be cascaded throughout the organization
Leadership Layer
Units
Department 1
Strategy for Success
BU Strategies
AlignmentTop Down / Bottom up
Co. / Unit
Department 2 Department n
AlignmentTop Down / Bottom up
Objective: Define set of Objectives relevant to strategy and cascade to relevant areas
Objective: Define set of Objectives relevant to strategy and cascade to relevant areas
President / CxO
SMART Objectives
Tariq Elsadik- Slide 18
Business Environment
ValueStatements(IT Goals)
Business
Goals
Technology
Trends
Business drivers
IT BusinessStrategy
Feedback ITValue
Delivery
Leadership Support
Resources
ExecutionModel/Tool
StructureOperating
Model
Learning &
Innovation Blueprint
Performance MeasuresRisk Management
Organization Culture
Project-Based All IT resources are centralized under a single reporting structure with centralized resource allocation (staffing). The organizational structure is built around resource pools. Line managers are replaced by resource managers.CentralizedIT is centralized under a single enterprise CIO. All IT systems and budgets reside at the corporate level.DecentralizedIT is decentralized by business unit, operating group, subsidiary, or geography. Each of these entities has its own CIO, IT organization, and IT budget. There is little or no attempt to coordinate across units or with corporate. Corporate IT supports the corporate HQ staff and perhaps some enterprise wide applications.FederatedIT takes on a hybrid structure. A centralized IT organization supports all infrastructure and enterprise wide applications, usually in a shared services environment. Individual business units maintain their own applications development organizations and budgets for BU- specific systems.Source: Forester Research - 2005
Reduce costsSustain market shareImprove customer satisfactionGrow revenueEnable new products and/or services
Decision Making Process
A Conceptual Delivery Model
The Scene
Opportunities
Approach
The Challenge
Top 10 Business Priorities RANK Top 10 Technology Priorities RANK
Business process improvement 1 Business intelligence 1
Reducing enterprise costs 2 Enterprise applications (ERP, CRM &others) 2
Improving enterprise workforce effectiveness 3 Servers and storage technologies (virtualization) 3
Attracting &retaining new customers 4 Legacy application modernization 4
Increasing the use of information/analytics 5 Collaboration technologies 5
Creating new products or services (innovation) 6 Networking, voice and data communications 6
Targeting customers and markets more effectively
7 Technical infrastructure 7
Managing change initiatives 8 Security technologies 8
Expanding current customer relationships 9 Service-oriented applications and architecture 9
Expanding into new markets & geographies 10 Document management 10
As enterprises face a challenging economic environment, IT spending budgets will be essentially flat with a planned increase of 0.16 percent in 2009, according to results from the 2009 CIO (1,527) survey by Gartner
GARTNER : “Meeting the Challenge – The 2009 CIO Agenda
Tariq Elsadik- Slide 21
Take Home: When all aspects of the problem are taken into account, the most important problems are:
1. Staffing Issues
2. Service Delivery
3. Proving the Value of IT
REALIZING THE REAL PROBLEMSGLOBAL SURVEY ON IT GOVERNANCE
PRACTICES THAT RETURNED THE MOST VALUE
Observation: It is clear that the most pragmatic/practical practices are indeed the most popular.
What (IT governance) solutions/frameworks do you use or are you considering using?’
ORGANIZATIONS USE WELL KNOWN FRAMEWORKS
Investment Decisions
No Yes
The Scene
Opportunities
Approach
The Challenge
Irregular
Reactive
Immeasurable
AbsoluteAD-HOC & TACTICALExpense-drivenTechnical Issue
Systematic
Adaptive
Measured
AdequateMANAGED & STRATEGICInvestmentBusiness Issue Slide 28
HOW DO WE APPROACH IT GOVERNANCE?
From To
Make IT happen
Strategic outcomes define the destination
Self Assessment defines the start
From-To map – charts the
course
The IT Balanced Scorecard drives
change
What Changes? COBIT From To How
Manage IT Human Resources
PO7 Operationally focused on hiring
Managing Personnel development/Growth and Turnover
Investment in People Standard
Service Levels Defined DS1 Inconsistent Managed and measureable ITILISO20000
IT Investment Management PO5 Focused on cost of operations
Focused on business value of investments Val IT
Tariq Elsadik- Slide 29
Make IT happen
Strategic outcomes define the destination
Self Assessment defines the start
From-To map – charts the
course
The IT Balanced Scorecard drives
change
Value Perspective• IT Business Alignment• IT Budget
User Perspective• Improved Knowledge Transfer• Drive Process Improvement
Process Excellence• Key to the success of any IT Shop• Consistent and cost effective service delivery
Future Orientation• Gaining new skills and expertise• Developing sound business knowledge
Tariq Elsadik- Slide 30
“I do not want IT solutions to be just about productivity and efficiency gains. If we are not productive and efficient at this point, we are in the wrong business. I need my IT colleagues to be real business partners and bring solutions that will enable our company to win new business, convert more prospects to customers, increase our market share, and get into the new markets. I need IT to be a true business partner, not a cost centre.”
Mindsets have shifted!No one said it better than a C-level business executive from the travel and entertainment industry:
Words of Wisdom
