CIO Pulse Sept 2008
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CIO Pulse Sept 2008



observations on the state of business and technology in the fall of 2008

observations on the state of business and technology in the fall of 2008



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CIO Pulse Sept 2008 CIO Pulse Sept 2008 Presentation Transcript

  • Abbie Lundberg, Editor in Chief, CIO 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.
  • 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?