The new role of CIO, Borut Kolmanič, S&T Slovenija
The new role of the CIO?Borut KolmaničOutsourcing Sales Manager, S&T Group
Agenda 1. What forces are driving IT changes? 2. The impact on the CIO role 3. The CIO of today and tomorrow 4. How do I get there?
Forces driving IT changeBusiness is going Business will be New businessto be flat more demanding processes needAnd IT budget is not going The requests from to be supportedto increase business will be increasing with IT Core processes are covered with IT, new ones are in the front end and information exchangeNew and New service Social networksbreakthough delivery models Impacting sales andtechnologies Software as a service, marketing, HR, image and cloud computing brand, communicationVirtualization. Clouds.Mobile devices.
Business areas affectedSales and Operations ManagementMarketing • New customer support • Business intelligence in• Mobile applications, processes, mobile the areas of customers, Social networks applications competition, business • Collaboration process performance, employee performanceHR F&A IT• People skills • Risk management • IT Management, IT• People development and • Liquidity management project selection and training management • Costs, personnel
The CIO focus IT operations Business (and IT) change • Need to run – • Needs to a must happen faster • Can partially be • Can only be purchased done internally
Different skills need for the CIO of tommorow1 2 3Business Acceptance by Luck. Choose theknowledge the top and right projects. middle management4 5 6Be able to do Change Communicationmore with same management skillsmoney skills
Sources of CIO successGartner, CIO Agenda, 2011
What others are doingGartner, CIO Agenda, 2011CIO IT strategies 2011 2010 2009Developing and managing a flexible 1infrastructureDelivering application and growth projects 2 1 3Reducing IT cost 3 3 2Improving IT management and governanceReorganizing IT (retaining personell)Expanding use of information/intelligenceImplementing business processimprovementImplementing cloud solutionsImproving business – IT relationship 2 1
What others are doingGartner, CIO Agenda, 2011Top 10 Business Priorities Ranking Top 10 Technology Priorities RankingIncreasing enterprise growth 1 Cloud computing 1Attracting and retaining new 2 Virtualization 2customersReducing enterprise costs 3 Mobile technologies 3Creating new products and services 4 IT management 4(innovation)Improving business processes 5 Business intelligence 5Implementing and updating Networking, voice and data 6 6business applications communicationsImproving technical infrastructure 7 Enterprise applications 7Improving enterprise efficiency 8 Collaboration technologies 8Improve operations 9 Infrastructure 9Improving business continuity, risk 10 Web 2.0 10and security
How do I get there?1 2 3Optimize Create the Be an expertexisting costs right IT in Change• IT Service strategy Management Management • Alignment with • Business process• Cloud services and operational change preceeds IT virtualization management changes• Look into Saas, • Selection of right • Thorough execution selective outsourcing projects of projects • Communication
Optimize existing costs Release resources for changes from the current IT operationsFine-tune Adopt Find optimalIT processes light-weight service deliveryIT service IT solutions modelsManagement Cloud services, SaaS, Paas, Selective virtualization outsourcing
Optimize existing costsExamplesFine-tune Light-weight Optimal serviceIT processes IT solutions delivery modelsInternal IT department Oracle licencing costs can Exchange as a Serviceresponsible for the decreased or at least be offered by S&T is priced todevelopment of a new kept at the same level if 4,7 €/user/month.application was able to virtualization is used whenlaunch a new application TCO saving for a smaller30% before planned go migrating to a new customer (up to 100 users)live date. hardware with a higher are in the range of 50%. number of cores.A shorter development TCO savings for largetime was possible because Savings can be up to 50%. customers go up to 25%the service desk could take when also licencingover a large part of their agreements are optimizedwork in supporting the and roles are adopted.existing applications.
Create the right IT strategy Access to business knowledgeAlign with Exchange of ideas onbusiness line business improvement areasmanagers Crucial for sucessful implementation
Create the right IT strategy Select the right projects• Clear and measurable business • Resources impact on top or needed bottom line Business Ability to • Resistance to• Investment needed impact execute change• Balance quick wins • Risks and long term improvements
Create the right IT strategy Strategy To position IT Success To gain credibility Communicate Projects To drive the change
Be an expert in change managementBusiness change The project is Measure andprecedes IT only finished communicatechange when changes resultsThe new business are in business Positive businessprocesses need to be use impacts need to bedefined before measured andsoftware development Training and support communicated to getstarts. of users are typically credibility and shrinked to „deliver recognition. projects on time“.
Conclusions 1 | Forces driving IT change 2 | How the CIO should respond 3 | Focuses of the CIO