The new CIO Leader : Managing in Turbulent Times
AJAY KUMAR DHIR
EXECUTIVE DIRECTOR & GROUP CIO
LANCO INFRATECH LIMITED
CIO Mid EastDubai – September 10th,
2012
Today’s volatile times present a major opportunity for CIOs to transform and drive substantial IT enabled business change. There has been great uncertainty in global business
Global economic uncertainty
Threats to business continuity
Globalization and the Multi-Polar world
IT abundance
For the CIO – uncertain times present an opportunity in three areas
• It is now a competitive imperative – you have to optimise IT costs, enable the business to achieve structurally lower costs AND deliver improved quality
• Increase strategic focus in 3 key areas and position the business for growth:
1. Business relationship management2. Information strategy3. Enterprise Architecture
• There is a pressing business priority to “balance Enterprise Risk with increasing business demands” and ensure appropriate business continuity
IT industrialisation
Deliver IT enabled business advantage
Balance and manage enterprise
risk
Industrialized IT:
use of methods common in manufacturing and global supply chain
Simplify
Standardise
• Few strategic partners• Global standards for technology• Few local solutions – global templates
• Methods• Processes/Procedures• Workforce management
• CMMI • 6 sigma• Lean development
Industrialisation of IT – increasingly a competitive imperative
Labour arbitrage and skills pools
Automate• Common tooling• Governance transparency• Performance metrics and reporting
Continuous improvement
Infrastructure Process Application Security Organization
Printer/Fax Operations Review
Non standard/Shadow IT costs review
Project portfolio investment Review
PKI Rationalization Procurement Spend Review
Telecom Expense Management
Quota Management Review License SpendDisaster Recovery Re-Prioritization
Supplier Rationalization
Server/Storage/Database Consolidation
Self-Service Renegotiate Service LevelsPerimeter Security Rationalisation
Vendor SLA
Facilities Consolidation Dynamic Provisioning Portfolio RationalizationSecurity Software Consolidation
Contract renegotiation
Thin client computing Workplace CollaborationRationalise test and development environments
Security Information & Event Management (SIEM)
Operating Models
Virtualisation Process Reengineering Application ConsolidationCompliance Automation
Sourcing Strategies
Automated Provisioning
IT Process Automation Application ReplatformingRole Based Network Access Control
Organizational Design
Unified Communications
Information Lifecycle Management
App Refactoring and Decommissioning
Enterprise Identity Management
Shared Services
“Green IT” ITILv3Enterprise Architecture Rationalization
Security Infrastructure Consolidation
Multi-vendor Sourcing
Infrastructure Sourcing Services
IT Process Sourcing Services
Application Sourcing Services
Outsourced/Managed Security Services
Managed Services
There are more than 100 IT Cost Reduction Levers . .
Minimize Optimize Redesign
Top CIO Challenges
1. Maximize utilization of existing resources – manpower, technology assets, infrastructure etc., “do more with less, continue doing more with less…”
2. Retention, Training and Reskilling of internal talent in the organization. Strengthen People Management and Leadership skills for self as well
3. Identify areas of opportunity within the organization for cost reduction and value creation. Adopt simple practices as recommended by TPM, Kaizen etc to generate quick wins and create visibility of IT
4. Establish ‘partnership’ with strategic vendors and service providers with a focus on co-creation of value in a collaborative manner. Examine current contracts and renegotiate wherever possible, or factor in value addition to get more from the same contracts
5. Create a focused approach for Corporate Information Security and protection of Intellectual Property
Top CIO Challenges
6. GRC – Corporate Governance and creating a Risk and Compliance Framework
7. Infrastructure Management – Extending the lifecycle of the investments made
8. Virtualization and Consolidation
9. IT enabling the organization, to drive operational and process efficiencies
10. Extending the value chain of Enterprise Applications to external stakeholders
Top Enterprise Technologies
1. Enterprise Content Management
2. Information Security Management
3. Business Intelligence / Analytics
4. Disaster Recovery / Business Continuity Planning
5. Collaborative Computing / Open Source
6. Cloud Computing
7. HMI (Plant to Business Integration – Shop floor to Top floor)
8. Green IT
9. Virtualization and Consolidation
10. Unified Communication and Telepresence
Qualities of a good leader
1. The Ability to Inspire
2. Communication skills
3. Operational Credibility in driving results
4. The Ability to Prioritize
5. Creativity and flexibility (the ability to embrace change)
6. The Ability to be a “Fish Out of Water” leader
7. The ability to position one’s organization as a hub for talent
8. Consistency
The 4Ps – Keys to Success
1. Perception – Shape how you are viewed
2. Profile – Craft more than your org chart slot
3. Participation – Don’t wait to be asked
4. Performance – Stand and Deliver
• There is no future for the ‘order taking, looking only for efficiencies’ type of CIO : Change or be ousted.. KPMG Report
• The big game in town now has moved on from efficiency – although that is still important – to how everybody exploits IT to create value and what that does for a company’s investment plans and the changes that the company makes… Chris Potts, IT Strategist and author of FruiTion
How CIOs should think aboutbusiness value
• Many organizations can’t get a true fix on the value IT adds to the businesses it serves : defining, measuring and maximizing that value remains elusive
• Grasping the business value from IT is challenging. CIOs who are successful in this endeavor, broaden their scope of action beyond the technical sphere and traditional IT levers
The CIO Agenda
What is shaping the IT agenda?
How can IT add Strategic Value to the Enterprise ?
1. Revenue growth/customer reachA leading study by Microsoft and the Harvard Business School found that leading IT functions can improve revenue growth by almost 7%.
Source: Research study by Keystone StrategyInc. Harvard Business School and Microsoft
2. Profitability/cost competitivenessA study by the Hackett Group found that top IT performers generate $1.07 billion more operating profit on an annual basis and $645 million higher net profit
Source; “Delivering Value Through IT Business Value Management”.
3. Shareholder value/stakeholder confidenceA study by the Corporate Executive Board found that overall competence inthe IT function can increase Total Shareholder Return by as much as 20%;
Source: “The Performance Payoff”.
4. Risk reductionA study by the ISF (Information Security Forum) found that the 30% of top performers in Information Security have significantly fewer security incidents (37%).
Do these trends imply changing the look out towards IT ?
► Diversification planned
► Growth plan
► Inconsistencies in IT functions
► How to achieve the required automation
► Empowering IT group with a certain set of
policies and procedures
► How to make sure that the information
needs of various stakeholders are being
fulfilled
► Is IT satisfying the automation and
information needs at all levels
► How to manage a the IT function
Organizational considerations
Addressing the top IT challenges
Strategic Alignment - Business Strategy or IT Strategy? Is there an answer?
► Today's organizations have adopted information technology in
an “enabler role‟ over a past perception of “supporter role‟.► Considering the benefits derived due to IT enablement the
annual budgets of organizations includes IT initiatives.► Having decided to invest in information technology, management
of most organizations want to align IT adoption in line with the
business strategy .► To address the above concern, one has to consider the
information universe. This will take into account the business
strategy and information needs of the organization.► Based on the business strategy a “fit for purpose‟ IT
strategy is developed which enlists the IT initiatives to support
the short and long term business goals.► IT strategy also provides a roadmap for implementation
of the initiatives and guidelines on the governance models for the
implementation plans.
Strategy for “Best in Class” enterprise
Drivers
► Draw out synergies between businesses across:
► IT strategic initiatives
► IT application and infrastructure
► IT Service Management► People and Processes
► Evolve IT as business enablerfor future business growth and competitive advantage
► Establish Aligned andAccountable IT organization
► Industry Benchmark to leverageand adopt leading practices
Developing
Leverage of the Existing Vision Investments
Improve by
bridging gaps
in current
utilization
Technology
Visioningoptimization
External IT Strategy
Focussed and
Ascertain the Roadmap
need/extent
of
collaboration
with
business
partners for
seamless
integration
New
External dimensional
Partners technology
IT andenhancementInitiatives stakeholders
An escalator of change for the enterprise
Define Gaps Best in Class
- Initiatives Evolve IT as a
to cover “Strategic
gaps and enabler”
create
charter
The finaldestination
Outsource
non-core
essential
applicationand
associated
infrastructure
Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
New Technology Initiatives
Adopt new
technologies to
support business
growth
How to get there ?
As an “engine” of change inAlignment to
business objectives
Methodology
SUB HEADLINE
Generating value-in-use :IT Generated Value
Finding Levers where IT and Business Units intersect : Business Performance Through IT
Building Alliances
Dynamics of Value Creation through IT
Creating Business Value through IT – Benefits and Challenges
Business Relationship Management–Increased role in investment planning and driving IT enabled business process and innovation
IT Organisation
Business
Externals Vendors Suppliers
Business Change
Service Change
DemandPlanning
Resource Scheduling
Delivery Management
Resource Planning Strategy
Refresh
BusinessChange
Management
BenefitsRealisation
InvestmentPlanning
Supply/DemandBalancing
Doing the Right Things Doing Things the Right Way
Delivering the Benefits Delivering to CommitmentsService
Introduction
Responsibility
Partners
Enterprise Architecture – Planning for simplification and avoiding tomorrow’s “fur-balls”
• Key role in ensuring IT and business strategies/process transformations are closely aligned
• Defining and managing technical, application and information roadmaps
• Reducing complexity, enabling future flexibility/agility