CIO Pulse Sept 2008

Abbie Lundberg, Editor in Chief, CIO advice.cio.com/blogs/difference_engine CIO Pulse September 2008

business realities

Demand for growth

Economic uncertainty

Shifting business models

Digital natives, consumerization of IT

High yet ill-defined expectations

Innovation and risk

economic uncertainty photo by Fadzly Mubin

shift to cost cutting CIO Budget & Staffing Survey, June 2008 19% 22% 37% 21% Next 12 months 26% 16% 39% 20% Past 12 months Manage IT Infrastructure More efficiently Lower the Operating cost of IT Enable Business Process Innovation Create Topline Revenue growth What is the primary Focus of your Investments?

from ROI to TCO CIO Budget & Staffing Survey, June 2008 48% 41% Total cost of ownership (TCO) 52% 59% Return on investment (ROI) June 2008 Jan. 2008 Most important factor driving your IT Investments the next 12 months

contingency plans 68% CIO Budget & Staffing Survey, June 2008 32% No plans for contingency plan 20% Not yet but planning to implement 48% Yes, contingency plan currently in place Do you have a contingency plan in place in the event you need to make cuts to your IT budget?

riding the recession If a recession is to occur, how confident are you in your organization’s ability to manage through it? Source: CIO Strategic IT Research Study, IDG Research, April 2008

some examples

extreme measures: TCO = 0?

shifting business models

digital natives web 2.0 consumerization of IT

employees & customers want 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

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

enterprise web 2.0 spending Source: Forrester Research

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

innovation risk

discussion questions

What strategies are you employing today to hedge against rising prices and changing consumer behavior?

Is there still room to deliver more in the way of IT services while continuing to take out cost?

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?

How do you balance innovation and risk?

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?

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?

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?