the cio's dilemma

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The CIO’s Dilemma Abbie Lundberg, Lundberg Media Former Editor in Chief, CIO Magazine EFFICIENCY OR INNOVATION? PULLED IN TWO DIRECTIONS & GETTING NOWHERE FAST

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The CIO's dilemma can best be described as having to manage the competing imperatives for growth, innovation and new capabilities on the one hand and continued cost reduction and efficiency on the other. There is an answer to the CIO's dilemma: simplification.

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Page 1: The CIO's Dilemma

The CIO’s Dilemma

Abbie Lundberg, Lundberg Media

Former Editor in Chief, CIO Magazine

EFFICIENCY OR INNOVATION?PULLED IN TWO DIRECTIONS & GETTING NOWHERE FAST

Page 2: The CIO's Dilemma

profitable

growth

Photo by Matthew Fang

Page 3: The CIO's Dilemma

Pulled in two directions, getting nowhere fast

Photo by jpmueller99

Page 4: The CIO's Dilemma

a slow recovery

Photo by Steve Wall

Page 5: The CIO's Dilemma

Photo by Anders Ljungberg

poor visibility

Page 6: The CIO's Dilemma
Page 7: The CIO's Dilemma

Photo by Joe PennistonPhoto by Urban Archaeology

economy in transitioneconomy in transitioneconomy in transition

Page 8: The CIO's Dilemma

The CIO’s Dilemma

Build New Capabilities

Be More Responsive

Customize

Be Open

Make Business Agile

Think Strategically

Business Unit Goals

Cut Costs

Be More Efficient

Standardize

Be Secure

Make IT Predictable

Execute Flawlessly

Enterprise Goals

Page 9: The CIO's Dilemma

pat your head

rub your belly

Page 10: The CIO's Dilemma

"Being highly responsive to our business partners’ and customers’ needs and creating standardized processes and technology platforms can seem like conflicting goals, but doing BOTH is key to maximizing value.”

Stuart McGuigan, CIO, CVS Caremark

Page 11: The CIO's Dilemma

Innovation 32%

Cost Reduction 11%

Both 57%

BOTH57% of executives say innovation and cost reduction are equally important to their company’s ability to achieve future growth

Source: Accenture survey of 630 U.S. and U.K. executives, Nov. 2009

Page 12: The CIO's Dilemma

IT savvy firms are

20% more profitable

than their competitors-MIT Center for Information Systems Research

Page 13: The CIO's Dilemma

does IT matter?How

Page 14: The CIO's Dilemma

“There are very few secrets out there anymore.

The only competitive advantage becomes speed.

Organizations need to keep embracing innovation and new technology models.

At the end of the day, it’s about getting from point A to point B quicker than everybody else.”

Rollin Ford, CIO, Wal-Mart

Page 15: The CIO's Dilemma

Photo by Randen Pederson

IT weighing you down?

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clean house

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fixed costs

Photo by Matti Mattila

70%

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85%

information is a key strategic asset

36%

well positioned to use information for growth

Source: “Unlocking the Value of the Information Economy,” a global survey of 1,375 executives conducted by Harvard Business Review Analytic Services and sponsored by Symantec

Room for Improvement

Page 19: The CIO's Dilemma

Barriers to growthWhich of the following are barriers to your organization's ability to use information to grow your business? (Select all that apply)

Source: “Unlocking the Value of the Information Economy,” a global survey of 1,375 executives conducted by Harvard Business Review Analytic Services and sponsored by Symantec

Page 20: The CIO's Dilemma

Photo by Doug Shick

Page 21: The CIO's Dilemma

IT budget thaw

Source: CIO Magazine’s Economic Impact Survey, Dec. 2009

Direction of IT Spending March '08 May '09 Dec. '09

Increase 63% 14% 40%

Decrease 17% 50% 28%

Remain the same 20% 36% 32%

Overall change (mean) +7% -13% +4%

Page 22: The CIO's Dilemma

Photo by Jenny Downing

lighten up

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SaaS

1/3 of all enterprises have subscribed to or plan to subscribe to software as a service applications in the next 12 months

Source: Forrester Enterprise And SMB Software Survey 2010

Page 24: The CIO's Dilemma

The government should adopt Web-based and free technologies over proprietary ones wherever possible to reduce government spending on long-term maintenance and consulting contracts. - Aneesh Chopra

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Photo by O2UKOfficial

City of Los Angeles

Photo by Erwin Recinos

Page 26: The CIO's Dilemma

Photo by O2UKOfficial

Genentech

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Cisco Virtual Sales Meeting, September

2009

19,000 participants

89 countries

24 times zones

88 hours

90% cost savings!

… and offset 84,400 metric tons of carbon dioxide

Image from Cisco

Page 28: The CIO's Dilemma
Page 29: The CIO's Dilemma

Photo by Vali

focus on customersfocus on customers

Page 30: The CIO's Dilemma

Please rate how important each of the following information strategies is to your organization’s growth over the next 1–3 years where 1 means “not at all important” and 10 means “extremely important.” Please rate how well your organization is currently doing each.

Source: “Unlocking the Value of the Information Economy,” a global survey of 1,375 executives conducted by Harvard Business Review Analytic Services and sponsored by Symantec

Performance Gap

Page 31: The CIO's Dilemma

Closing the Performance Gap

What are the three most important things your organization can do to close the gap from where you are today and where you want to be to make better use of information? (Select up to three)

32Source: “Unlocking the Value of the Information Economy,” a global survey of 1,375 executives conducted by Harvard Business Review Analytic Services and sponsored by Symantec

Page 32: The CIO's Dilemma

REAL SIMPLECOMMON PROCESSES

STANDARD INFORMATION

LEVERAGED PLATFORM OF CORE SYSTEMS

INNOVATION AT THE EDGE

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“It may seem counterintuitive, but the more standardized your systems and processes are, the more flexible you can be.”- Charlie Feld, Blind Spot

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Leveraged

Core

Market Edge

Charlie Feld, Blind Spot

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Today’s Tech Landscape

Q. Which option best describes your plans for each of the following applications in the next 12 months?

Source: CIO Technology Priorities Study February 2010

Page 37: The CIO's Dilemma

Source: CIO Technology Priorities Study February 2010

Tomorrow?

Q. Which option best describes your plans for each of the following applications in the next 12 months?

Page 38: The CIO's Dilemma

So littlemoney!

Page 39: The CIO's Dilemma

Photo by Jack Wolf

limited resources

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“We can do anything you want; we just can’t do everything you want.”

-Healthcare CIO

Page 42: The CIO's Dilemma

Smaller

Better

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Simple Project Portfolio FrameworkPriority Project Name Status Description IS Sponsor

Business Sponsor

Project Manager

Original Impl Date

Estimated Impl Date

Original Cost Estimate Forecast

123456789

101112131415161718192021222324252627282930

Page 44: The CIO's Dilemma

Photo by Wilka Hudson

Page 45: The CIO's Dilemma

PURSUE BOTH

LIGHTEN UP, SIMPLIFY

FOCUS, PRIORITIZE

TEAM SPORT

the upshot

Photo by Matthew Fang

Page 46: The CIO's Dilemma

think radical

Photo by Ana Cotta

Page 47: The CIO's Dilemma

Abbie Lundberg508.269.3547

[email protected]://lundbergmedia.com

Most of the photos in this presentation are from flickr, offered for use under a Creative Commons licensePhoto by Matthew Fang