CIO Value Issue

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CIO Value Issue

  1. 1. It Helps if You’re Good at This 01/17/12 Peer Consulting Group Jim Sutter
  2. 2. <ul><li>Help Grow the Business </li></ul><ul><li>More with Less </li></ul><ul><li>Help the Business be more Efficient </li></ul><ul><li>Provide Analytic Insight </li></ul><ul><li>Add Value </li></ul><ul><li>… </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  3. 3. <ul><li>“ Signs of major technological improvements are all around us….. </li></ul><ul><li>The benefits are evident…in the production processes that have long been part of our industrial economy.” </li></ul><ul><ul><ul><ul><ul><li>Alan Greenspan </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Former Federal Reserve Chairman </li></ul></ul></ul></ul></ul>01/17/12 Peer Consulting Group Jim Sutter
  4. 4. <ul><li>All Corporate functions are under cost pressures. </li></ul><ul><li>Some corporate functions are examining outsourcing. </li></ul><ul><li>Many corporate functions are told to do more with less. </li></ul><ul><li>Most corporate investments must have a solid ROI. </li></ul><ul><ul><li>Should IT be different? </li></ul></ul>01/17/12 Peer Consulting Group Jim Sutter
  5. 5. <ul><li>IT users vary on real needs. </li></ul><ul><li>Most departments are reluctant to commit to hard savings. </li></ul><ul><li>Integrated applications imply benefits from the whole – not one department. </li></ul><ul><li>Infrastructure is not always ROI-able. </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  6. 6. <ul><li>CEO/COO/CFO look for ROI. </li></ul><ul><li>Other opportunities vie for the investment. </li></ul><ul><li>Cost for IT should not outpace revenue growth. </li></ul><ul><li>What do others spend? </li></ul><ul><li>CSO/CIO worry about falling behind the competition. </li></ul><ul><li>How do we support sales/business growth without upgrading the infrastructure? </li></ul><ul><li>Constant pressure from customers. </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  7. 7. <ul><li>IT Investments - </li></ul><ul><ul><ul><li>Who gets to say? </li></ul></ul></ul><ul><ul><ul><li>Who takes the lead? </li></ul></ul></ul><ul><ul><ul><li>Who commits? </li></ul></ul></ul><ul><li>What if its hard to Quantify? </li></ul><ul><li>Is everything measurable? </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  8. 8. 01/17/12 Peer Consulting Group Jim Sutter Systems Strategy Services –Data, Network, Desktop Software Delivery CEO, Mgt Committee High Priority Partnership Common Objective Cost Effectiveness Secure Competitive Minimum Function Management and Supervision Competing Objectives Differing Priorities Resource Allocation Optimized for their area Associates and Individual contributors Indifference Cynical Performance Reliability Ease of Use Maximum Function
  9. 9. 01/17/12 Peer Consulting Group Jim Sutter Systems Strategy Services –Data, Network, Desktop Software Delivery CEO, Mgt Committee Co-develop Support for initiatives Synchronize objectives Provide metrics Obtain best in class data Report progress Contrast competitors Management and Supervision Protect partisan objectives Balance enterprise vs. departmental flexibility Calculate cost Per seat Calculate cost per call Deliver to schedule Work to maintain leading edge Associates and Individual contributors Keep user groups informed Demand QOS Monitor SLA s Press for robust infrastructure Thorough training Stabilized environment
  10. 10. <ul><li>IT Investments - </li></ul><ul><ul><ul><li>Who gets to say? </li></ul></ul></ul><ul><ul><ul><li>Who takes the lead? </li></ul></ul></ul><ul><ul><ul><li>Who commits? </li></ul></ul></ul><ul><li>What if its hard to Quantify? </li></ul><ul><li>Is everything measurable? </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  11. 11. 01/17/12 Peer Consulting Group Jim Sutter
  12. 12. <ul><li>Gartner Group lists as one of the most durable challenges for CIOs. </li></ul><ul><li>Harvard Business School article, “Does IT Matter”. </li></ul><ul><li>SIM highlights value issue at its recent conference </li></ul><ul><li>Information Week, CIO Magazine surveys </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  13. 13. 01/17/12 Peer Consulting Group Jim Sutter Value Issue
  14. 14. <ul><li>“ IT projects should undergo the same economic analysis as all other capital investments” </li></ul><ul><li> Ed Trainor, CIO, Amtrak </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  15. 15. <ul><li>CEO surveys, 1977-2011 </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  16. 16. 01/17/12 Peer Consulting Group Jim Sutter “ It’s estimated that fewer than 1/5 th of all corporations have a process in place by which to cost justify an IT investment or determine if a new technology implementation will yield long-term corporate benefits.” Industry Week Magazine
  17. 17. 01/17/12 Peer Consulting Group Jim Sutter <ul><li>Materials Management (MRP) </li></ul><ul><li>Shop Floor Control </li></ul><ul><li>CAD - CAE </li></ul><ul><li>Analytic Computation </li></ul><ul><li>Word Processing </li></ul><ul><li>Direct Customer Access </li></ul><ul><li>Product Configurators </li></ul><ul><li>Product Customization </li></ul><ul><li>Fast Response/JIT </li></ul><ul><li>EDI/E-Commerce </li></ul><ul><li>Supply Chain/E-Pro </li></ul><ul><li>Social Networks </li></ul><ul><li>BYOD </li></ul><ul><li>Blogging,Wikis,Twitter </li></ul>1960 - 1973 1973 - 1980s 1990-2000s Faster Ledgers ---- Direct Savings Operating Efficiencies ---- Indirect Savings Virtual Corporation ---- Growth <ul><li>Accounting/ Finance </li></ul><ul><li>Payroll </li></ul><ul><li>Sales Statistics </li></ul><ul><li>Cost Distribution </li></ul><ul><li>Inventory Accounting </li></ul>It Has Become More Difficult
  18. 18. <ul><li>    -   look to results of industry specific surveys     -   search industry specific journals or publications     -   check with consulting companies who specialize in your industry     -   review companies selling solutions for specific problem area </li></ul>01/17/12 Peer Consulting Group Jim Sutter
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  20. 21. 01/17/12 Peer Consulting Group Jim Sutter
  21. 22. 01/17/12 Peer Consulting Group Jim Sutter
  22. 23. <ul><li>Obtaining solid ROIs from business leaders is weak in many companies. </li></ul><ul><li>IT leaders often attempt to substitute their own estimates. </li></ul><ul><li>Real VALUE can be found by intense digging using improved tools. </li></ul><ul><li>CIOs can improve the process for identifying VALUE by looking outside. </li></ul>01/17/12 Peer Consulting Group Jim Sutter
  23. 24. 01/17/12 Peer Consulting Group Jim Sutter

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