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Ajay dhir - The new CIO leader: Managing in challenging times


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Ajay Dhir, Group CIO Lanco Infratech spoke at the CIO Event (dot) com/me

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Ajay dhir - The new CIO leader: Managing in challenging times

  1. 1. The new CIO Leader : Managing in Turbulent Times CIO Mid East Dubai – September 10th, 2012 AJAY KUMAR DHIR EXECUTIVE DIRECTOR & GROUP CIO LANCO INFRATECH LIMITED
  2. 2. Today‟s volatile times present a major opportunity for CIOsto transform and drive substantial IT enabled businesschange. There has been great uncertainty in global business Global economic uncertainty Threats to business continuity Globalization and the Multi-Polar world IT abundance
  3. 3. 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 toIT industrialisation achieve structurally lower costs AND deliver improved quality • Increase strategic focus in 3 key areas and Deliver IT enabled position the business for growth:business advantage 1. Business relationship management 2. Information strategy 3. Enterprise Architecture Balance and • There is a pressing business priority tomanage enterprise “balance Enterprise Risk with increasing risk business demands” and ensure appropriate business continuity
  4. 4. Industrialisation of IT – increasingly a competitive imperative • Few strategic partners Simplify • Global standards for technology • Few local solutions – global templates • Methods Standardise • Processes/ProceduresIndustrialized IT: • Workforce management use of methodscommon in Labour arbitrage and skills poolsmanufacturing andglobal supply chain • Common tooling Automate • Governance transparency • Performance metrics and reporting • CMMI Continuous • 6 sigma improvement • Lean development
  5. 5. There are more than 100 IT Cost Reduction Levers . . Infrastructure Process Application Security OrganizationPrinter/Fax Operations Non standard/Shadow IT costs Project portfolio investment PKI Rationalization Procurement Spend ReviewReview review ReviewTelecom Expense Disaster Recovery Re- Quota Management Review License Spend Supplier RationalizationManagement PrioritizationServer/Storage/Database Perimeter Security Self-Service Renegotiate Service Levels Vendor SLAConsolidation Rationalisation Security SoftwareFacilities Consolidation Dynamic Provisioning Portfolio Rationalization Contract renegotiation Consolidation Rationalise test and development Security Information &Thin client computing Workplace Collaboration Operating Models environments Event Management (SIEM)Virtualisation Process Reengineering Application Consolidation Compliance Automation Sourcing Strategies Role Based Network AccessAutomated Provisioning IT Process Automation Application Replatforming Organizational Design Control Information Lifecycle App Refactoring and Enterprise IdentityUnified Communications Shared Services Management Decommissioning Management Enterprise Architecture Security Infrastructure“Green IT” ITILv3 Multi-vendor Sourcing Rationalization ConsolidationInfrastructure Sourcing Minimize Optimize Redesign Outsourced/Managed IT Process Sourcing Services Application Sourcing Services Managed ServicesServices Security Services
  6. 6. Top CIO Challenges1. 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 well3. 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 IT4. 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 contracts5. Create a focused approach for Corporate Information Security and protection of Intellectual Property
  7. 7. Top CIO Challenges6. GRC – Corporate Governance and creating a Risk and Compliance Framework7. Infrastructure Management – Extending the lifecycle of the investments made8. Virtualization and Consolidation9. IT enabling the organization, to drive operational and process efficiencies10. Extending the value chain of Enterprise Applications to external stakeholders
  8. 8. Top Enterprise Technologies1. Enterprise Content Management2. Information Security Management3. Business Intelligence / Analytics4. Disaster Recovery / Business Continuity Planning5. Collaborative Computing / Open Source6. Cloud Computing7. HMI (Plant to Business Integration – Shop floor to Top floor)8. Green IT9. Virtualization and Consolidation10. Unified Communication and Telepresence
  9. 9. Qualities of a good leader1. The Ability to Inspire2. Communication skills3. Operational Credibility in driving results4. The Ability to Prioritize5. Creativity and flexibility (the ability to embrace change)6. The Ability to be a “Fish Out of Water” leader7. The ability to position one‟s organization as a hub for talent8. Consistency
  10. 10. The 4Ps – Keys to Success1. Perception – Shape how you are viewed2. Profile – Craft more than your org chart slot3. Participation – Don‟t wait to be asked4. 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
  11. 11. How CIOs should think about business value• Many organizations can‟t get a true fix on the value IT adds to thebusinesses it serves : defining, measuring and maximizing that valueremains elusive• Grasping the business value from IT is challenging. CIOs who aresuccessful in this endeavor, broaden their scope of action beyondthe technical sphere and traditional IT levers
  12. 12. The CIO Agenda
  13. 13. What is shaping the IT agenda?
  14. 14. How can IT add Strategic Value to the Enterprise ?1. Revenue growth/customer reach A 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 Strategy Inc. Harvard Business School and Microsoft2. Profitability/cost competitiveness A 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 confidence A study by the Corporate Executive Board found that overall competence in the IT function can increase Total Shareholder Return by as much as 20%; Source: “The Performance Payoff”.4. Risk reduction A study by the ISF (Information Security Forum) found that the 30% of top performers in Information Security have significantly fewer security incidents (37%).
  15. 15. Do these trends imply changing the look out towards IT ? Organizational considerations ► 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
  16. 16. Addressing the top IT challenges
  17. 17. Strategic Alignment - Business Strategy or IT Strategy? Is there an answer?► Todays 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.
  18. 18. 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 enabler for future business growth and competitive advantage ► Establish Aligned and Accountable IT organization ► Industry Benchmark to leverage and adopt leading practices
  19. 19. How to get there ?Developing Leverage New Technology External IT Strategy Define Gaps Best in Class of the Existing Initiatives Focussed and - Initiatives Evolve IT as a Vision Investments Adopt new Ascertain the Roadmap to cover “Strategic Improve by technologies to need/extent gaps and enabler” bridging gaps support business of As an “engine” create in current growth collaboration of change in Alignment to charter utilization with business business objectives The final partners for destination seamless Outsource integration non-core essential New application External dimensional and Partners technology associated IT and enhancement infrastructure Technology Initiatives stakeholders Visioning optimization An escalator of change for the enterprise Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
  20. 20. Methodology
  21. 21. Generating value-in-use : IT Generated Value SUB HEADLINE
  22. 22. Finding Levers where IT and Business Units intersect : Business Performance Through IT
  23. 23. Building Alliances
  24. 24. Dynamics of Value Creation through IT
  25. 25. Creating Business Value through IT – Benefits and Challenges
  26. 26. Business Relationship Management–Increased role in investment planning and driving IT enabledbusiness process and innovation Business IT Organisation Supply/Demand Resource Strategy Investment Planning Demand Balancing Refresh Planning Planning Doing the Right Things Doing Things the Right Way Business Service Change Change Delivering the Benefits Delivering to Commitments Service Business Introduction Delivery Benefits Resource Change Management Realisation Scheduling Management ResponsibilityExternals Partners Vendors Suppliers
  27. 27. 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
  28. 28. Thank YouContact me at :