CIO Barometer 2010


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CIO Barometer 2010

  1. 1. CIO Barometer 2010RECOVERY ORbREakdOwn?CSC
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  3. 3. CSC In TOUCH wITH CURREnT TREndSWithin the framework of its I.D.E.A.S programme (Inspiration, Debate,Executive, Annual Surveys). CSC carries out a number of “barometers”every year to analyse trends and perspectives from key roles within theboardroom (human resources, finance, IT, procurement…) at the Europeanlevel. Each of these studies, carried out with the assistance of independentsurvey institutions (IFOP and TNS Sofres), involve the participationof hundreds of managers from the largest businesses and publicadministrations in Europe. The results of these studies are revealed duringhigh level events, organized in different European cities (Paris, Madrid,Barcelona, Milan, Brussels, Lisbon, etc.), and are also relayed by partnersfrom the media (Les Echos, La Tribune, Expansion, Liaisons Sociales,Il Sole 24 ORE, etc.) and from academia (universities and elite schools). Opinions expressed by contributors are their own. Reproduction in whole or in part without written permission is strictly prohibited. © Copyright CSC 2010. All rights reserved. 3
  4. 4. CIO Barometer 2010RECOVERY ORbREakdOwn?
  5. 5. TABLE OF CONTENTS 1 SUMMaRY PAGE 9 10. WHAT ARE THE NEW CHALLENGES FOR CIOS? 12. WHICH TECHNOLOGIES ARE NEEDED TO RESPOND TO THESE CHALLENGES? 14. HOW SHOULD CIOS EVOLVE TO RESPOND TO THESE CHALLENGES? 2 1 RESUlTS PAGE 17 3 1 TESTIMOnIalS PAGE 33 34. Alberto Alberini. CIO - Aviva Italia 36. Andreas Bereczky. Director of Production - ZDF (German Television) 38. Valentín Cabello. CIO - McCANN Worldgroup Spain 4o. Ian Campbell. CIO - Transport for London 42. Gunter Czisch. Mayor - City of Ulm, Germany 44. Fabio De Ferrari. General Manager - Cedacri 46. Bernard Gouraud. CIO - Banques Populaires Caisse d’Epargne 48. Jürgen Häfner. Permanent Secretary - Rhineland-Palatinate Ministry of the Interior and Sport. Director - Central Agency for IT and Multimedia 50. Ralf Kleindiek. CIO and IT Representative - Federal Ministry of Justice, Germany 52. Alain Moustard. CIO - Bouygues Telecom 54. Piero Persi. Director of Strategic Planning and Business Development - Industries SpA 56. Franz Josef Pschierer. Secretary of State for Finance , Bavaria (Germany) 58. Jörn Riedel. CIO - City of Hamburg, Germany 60. Albert Timmermans. CIO - SPE/Luminus 62. Freddy Van Den Wyngaert. CIO - Agfa ICS 64. Horst Westerfeld. State Secretary at the Ministry of the Interior and Sport - German state of Hesse5
  7. 7. RECOVERY OR BREAKDOWN?CIO baROMETERA EUROPEAN SURVEYAPPROACH AND METHODOLOGY TARGET AND SAMPLEThe 2nd edition of the CIO Barometer was produced in Private and semi-public companies:partnership with the TNS Sofres research institute, which • employing at least 1,000 staff,surveyed a sample of IT directors in European companies • located in France, Germany, Great Britain, Italy,employing more than 1,000 staff. These executives were Spain, Belgium and Portugal.interviewed on the position, concerns, performance andperspectives of information systems departments. 80 managers were interviewed (with no detailed criteria in terms of business sector or company size) representing the following target functions:INTERVIEW METHOD • IT director / manager.The questionnaire was administered by TNS Sofres inaccordance with the CATI method (Computer Assisted The sample was eventually adjusted to guaranteeTelephone Interview), from January to March 2010. representativeness in relation to the population of European companies from targeted business sectors employing at least 1,000 staff. 7
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  10. 10. SUMMARY CIO baROMETER TRENDS AND OUTLOOK WITHIN INFORMATION SYSTEMS DEPARTMENTS 1. wHaT aRE THE nEw CHallEngES FOR CIOS? CUSTOMER DEMANDS HAVE REINFORCED THE TREND TOWARD MARKET SEGMENTATION. CONSUMERS WANT TO CONTRIBUTE TO DEFINING THE OFFERINGS PROPOSED TO THEM, AS ILLUSTRATED BY COMMENTS ON SOCIAL NETWORKING SITES. MEMBERS OF THE SO-CALLED GENERATION Y ARE EXPRESSING A GROWING NEED FOR COLLABORATION AND SMOOTH INFORMATION FLOWS AS THE BOUNDARIES BETWEEN PRIVATE AND PROFESSIONAL LIFE ARE BECOMING BLURRED. ENVIRONMENTAL CONCERNS ARE NO LONGER MERE DECLARATIONS OF INTENT, AND "GREEN IT" IS BECOMING A MAJOR ISSUE FOR COMPANIES. MODELS TO BE REINVENTED the pressure on their standard of living, consumers tend to focus on product usage rather than ownership. The ability The economic crisis is forcing companies to rethink all or to enjoy the benefits of a product on demand prevails over part of their business model and to quickly adapt to an the notion of permanent possession. The product itself environment in which relationships with economic players becomes secondary. (customers, investors and the state) have been seriously disrupted. A shortage of cash and the loss of many It is difficult to guess what will survive this evolution customers have been the two most concrete effects of that has been accelerated by the crisis. The change in this crisis. As economic growth will no longer be driven by consumer behaviour linked with closer attention to price/ credit, new models need to be invented. quality ratios and more reasonable purchasing will have an impact on businesses. The economic crisis heralds a long- In the industrial sector, business models have been term expansion phase, based on the transformation of our thoroughly overhauled, the key drivers being cost savings consumption and production habits. and reductions in fixed costs. Companies have become aware of the scope of the value chain transformation and of GENERATION Y the role of the Internet as a driver of economic growth and competitive differentiation. The balance of power is shifting. One third of the world’s population (2.3 billion people aged 10 to 29) grew up clicking Customer demands have reinforced the trend toward market a mouse, with social networks as their frame of reference. segmentation. Consumers want to contribute to defining The generation of 20-30 year-olds arriving in companies the offers proposed to them, as illustrated by comments on is well-versed in a broad range of technophile activities: social networking sites. This need to participate concerns all blogs, wikis, social networks, RSS flows, etc. Four aspects generations and forces companies to adapt. The customer characterise these aficionados of Web 2.0 technologies: relationship is no longer an addition to the product or individualism, impatience, interactivity and interconnection. service. It is becoming a key success factor. Buying habits have changed dramatically, spelling the end of hyper- Generation Y is expressing a growing need for collaboration consumption. New patterns have emerged. To withstand and smooth information flows as the boundaries between10
  11. 11. private and professional life are becoming blurred. However, ENVIRONMENTthese young professionals are in for a shock when theydiscover, in their company, client-server applications and Ecological concerns are no longer mere declarations ofan intranet devoid of any interactivity. This situation can intent. With the Grenelle Conference on the environmentcause frustration, even resignations, at a moment when and the increasingly frequent use of carbon footprintthe fight for talent is at its peak. Permanently connected assessments, "Green IT" is becoming a major issue forto the outside world via smart phones and social networks, companies.generation Y is demanding, creative and can multitask. Itsneed to be constantly connected reinforces the necessity to First of all, IT accounts for 2% of the world’s CO2 emissions,integrate new technologies into the company. All the more i.e. the equivalent of civil aviation emissions. Secondly, ITso as collaborative practices and Web 2.0 technologies offer can act as a positive lever to reduce the remaining 98%multiple benefits. They facilitate the sharing of knowledge of emissions (by optimising the supply chain, transport,and enhance responsiveness to customers. They promote construction etc.).innovation and collaboration with external partners. Theyimprove productivity and staff morale. This process of Finally, in light of the ecological crisis, environmental issuesgenerational renewal encourages companies to adopt new may soon top the list of purchasing criteria, regardless ofmanagement methods. CIOs adopt collaborative tools from the type of product. The world as we know it, made upthe private sphere for use in the professional sector, while of producers on one side and consumers on the other, isimplementing new working methods which create more disappearing. The digital revolution means that other modelsvalue. The information system must provide tools adapted are being developed. On the internet, for example, there areto new user habits: social networks and instant messaging neither producers nor consumers, only contributors. Weservices integrated into workstations, collaborative platforms are entering the era of the contribution economy, basedas appealing and user-friendly as private platforms. Many on a combination of personal and collective investmentscompanies thus prefer to resort to internal social networks which creates a different sort of value.which allow the sharing of information among employeesand protect against external indiscretion. However, this newgeneration is not a constraint but an opportunity. 11
  12. 12. 2. wHICH TECHnOlOgIES aRE nEEdEd TO RESpOnd TO THESE CHallEngES? VIRTUAL OFFICE CLOUD COMPUTING The economic and environmental context facilitates the Companies are being driven to transform global pressure adoption of virtual office infrastructures within companies. to reduce prices into an incentive to innovate and develop Cost reduction, energy saving, individual productivity new production technologies. For CIOs, innovation can and security policies result in the migration of a growing involve cloud computing to reduce information processing number of workstations towards an IT model based on costs, or parallel processing to increase data processing “light” computers as well as centralised applications and capacity while reducing processing costs. processing capability. Cloud computing is a transition towards a new way to CIOs focus on projects linked to operational efficiency, in collaborate. We are shifting away from the notion of product particular the rationalisation of infrastructure, consolidation ownership to that of service consumption. Fixed costs are operations, the virtualisation of servers and standardisation becoming variable costs. This technological combination of IT processes. The virtual office hosts no applications enables the rental of IT services on demand and the use of or data; it centralises them on a server. In addition, resources in function of one’s needs. virtualisation technologies make it possible to operate several applications simultaneously on the same server. The appeal of cloud computing is first and foremost economic, even if this is not the major benefit. Instead The virtual office generates savings in terms of support and of investing in servers and software which are not used maintenance, reduces equipment and licensing costs and to their full capacity, companies only pay for what they reduces energy consumption. It helps boost productivity actually use. and enhance generation Y’s work satisfaction by combining elements of both professional and personal “spheres” on The operational benefits are also significant: companies the same workstation. can share their resources and gain extra storage and processing capacity.12
  13. 13. SINCE THE LATE 20TH CENTURY, A NEW REVOLUTION HAS SERIOUSLY DISRUPTED THE ECONOMY, USINGINFORMATION TECHNOLOGY AS A TOOL AND SUPPORTED BY THE COLLAPSE OF THREE ESSENTIAL COSTS: THEPRICES OF INFORMATION PROCESSING, STORAGE AND TRANSPORT. THANKS TO THE DRAMATIC REDUCTIONIN THESE PRICES, COMPANIES HAVE BEEN ABLE TO TRANSFORM THE WAY IN WHICH THEY ARE ORGANISED(FLATTENING THEIR HIERARCHY), ANALYSE VAST AMOUNTS OF DATA (IN ORDER TO SEGMENT THEIR CUSTOMERS),AND OUTSOURCE ENTIRE ASPECTS OF THEIR ACTIVITY (INCREASING EFFICIENCY, CREATING ADDED VALUE ANDCUTTING COSTS). CIOS HAVE MULTIPLE AND VARIED TECHNOLOGICAL OPTIONS AT THEIR DISPOSAL. ClOUd COMpUTIng CLOUd COMPUTiNg iS A TRANSiTiON TOwARdS A NEw wAY OF COLLABORATiNg. wE ARE SwiTChiNg FROM ThE NOTiON OF PROdUCT OwNERShiP TO ThAT OF SERViCE CONSUMPTiON.Above all, cloud computing makes it possible to increase Green IT is a powerful lever in terms of communication andcompany flexibility in terms of innovation, speed and team building for the reduction of the negative impact ofreceptiveness. It enables rapid access to resources, human activities on the environment, although companyprocess simplification and the automation of functions. In directors expect savings first and foremost. There are threea global world where universal exchange prevails, access to major sources of savings: energy consumption, paperexponential information is a critical success factor. consumption and equipment recycling.Nonetheless, many companies remain hesitant, mostly CIOs can initiate, under the green IT banner, a number offor security reasons, as the reliability and security of projects aimed at reducing CO2 emissions and cuttinginformation is one of the main concerns of CIOs. In 2009, costs, from the virtualisation of servers to the consolidationworldwide attacks against corporate data almost doubled. of data centres, to revising printing guidelines or turningHowever, most computer attacks come from within rather off monitors after a period of inactivity. However, 72% ofthan outside companies. companies have no strategy whatsoever to reduce the power consumption of their data centres.GREEN IT In fact, Green IT projects are still few and far between. Major decision makers are more willing to communicate than actThere are approximately 45 million servers in operation on these subjects, and mentalities need to change. Whatworldwide. Major data centres alone have doubled their matters most of all is the discipline and best practices to bepower consumption between 2000 and 2005. After the implemented in companies on a daily required for IT equipment, which can be optimisedvia the virtualisation process, the largest share of theenergy used is consumed by the air conditioning systemson premises. 13
  14. 14. 3. HOw SHOUld CIOS EVOlVE TO RESpOnd TO THESE CHallEngES? COMPANY DIRECTORS ARE ASKING CIOS TO BECOME MORE FLEXIBLE AND LEAD THE WAY IN THE DEVELOPMENT OF THE DIGITAL COMPANY. CIOS ARE ECOURAGED TO LIAISE MORE WITH BUSINESS DIVISIONS TO SUPPORT THEIR TRANSFORMATION PROCESSES. THEY MUST HAVE IN-DEPTH KNOWLEDGE OF THE COMPANY’S BUSINESSES WHILE DEMONSTRATING SOLID IT EXPERTISE. CIO TRANSFORMATION types of usage that will provide the business with a competitive edge in terms of decision making, customer In a context where every company has to reinvent its relationships and supply chain management. CIOs are production methods and develop new models for switching from a technical to a management role, as economic growth, the information system represents a technological knowledge is no longer the primary skill crucial element for operational efficiency. CIOs have an expected of them. important role to play. To do this, they must be capable of comprehending the world as a whole, its crises as INNOVATION well as long-term cycles, and understanding how all stakeholders within the will respond to these cycles. More than ever before, innovation is considered a strategic element of economic recovery. Nearly 90% Far from limiting themselves to the management of IT of business leaders believe that innovation is at least resources, even though cost reduction is a recurring as important as cost reduction in their economic issue, CIOs are changing their infrastructure in an processes. The economic crisis makes innovation effort to focus on innovation and value creation. Their an even greater necessity for long-term business priority is to deploy technologies promoting company sustainability. Innovation leaders are not just striving to growth, priority projects being those which support protect themselves against the crisis; they are trying to the company’s strategic evolution. IT is thus no longer make the most of it to overtake their competitors. To considered a cost centre but a way to enhance the make innovation a reality, CIOs must be both visionary business activity. and pragmatic. Business leaders are asking CIOs to become more flexible However, there is no miracle solution in terms of and lead the way in the development of the digital innovation. The efficiency of innovation is enhanced company. CIOs are encouraged to liaise more closely by the implementation of partnership, an appropriate with business divisions to support their transformation organisation and decision making rules to govern processes. They must have in-depth knowledge of the interaction of people with creative and rational the company’s businesses while demonstrating solid competences. The natural tendency to oppose IT expertise. Their added value is their ability to differences is outdated. Diversity of skills, training, ages, understand user expectations and recommend new genders or ethnicities is an asset.14
  15. 15. BEFORE 2008…CIOs experienced a long period marked by cost reduction and theimprovement of business processes. IS services were perceived by businessleaders as a cost centre whose added value was difficult to assess. ITwas regarded as a function that supported operational improvement costreduction. The role of the CIO focused on the evolution of infrastructureand organisation of IT architecture, which did not necessarily create valuefor the company. This role subsequently switched from a technological andIT dimension to a more strategic dimension.IN 2009…CIOs have had to face new challenges associated with the financial andeconomic crisis, responding to these challenges by upgrading informationsystems, making them more flexible, adaptable and upgradeable. CIOshave deployed the resources necessary to provide increasingly efficientservices at the best possible price. They have adapted and are increasinglybeing perceived as innovation and business process facilitators, creatinggreater value for the company through operational excellence. CIOshave become closer to the line of business by becoming progressivelymore deeply involved in its evolution and the definition of the corporatestrategy, thereby affirming their leadership role in the area of innovation. 15
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  18. 18. SAMPLE STRUCTURE INTERVIEWS BY COUNTRY France France 21 % Italy Italie 21 % UK 16 % Germany Allemagne 16 % 20% Spain Espagne 16 % Portugal Portugal 5% BUSINESS SECTOR Belgique Belgium 5% 3% 10 % Services Services Industry Industrie 10 % Trade Commerce Transport 60 % 60 % Transport Construction & BTP 17 % 17 Public works PERMANENT STAFF 1,000 to 2,999 De 1 000 à 2 999 salariés 62 % 3,000 to 5,999 De 3 000 à 5 999 salariés 23 % 6,000 to 9,999 De 6 000 à 9 999 salariés 7% 10 000 salariés et plus 8% 10,000 and more18
  19. 19. CIO BAROMETER 2010DESCRIPTION OF THE IT DEPARTMENTThe harmonisation of the information system with business functions is effective in companiesBusiness requirements have resulted in the dynamic management of applications and software, and the contributionof the CIO function is based on improved management of business processes. The key factors of this evolution relateto the very identity of IT departments, which has changed drastically. The purely technological aspect is becoming lesssignificant, leaving room for innovation leadership and a strong involvement in the strategy, which creates greater valuefor the company.An undeniable strategic functionThe CIO’s involvement in the company’s decision making bodies and the fact that this function reports directly to topmanagement shows that the new role of the CIO is highly strategic.NUMBER OF IT STAFF Moins de 20 20 to 50 50 % Less than 50 De 20 à 20 21 % De 50 à 100 8% 50 to 100 De 100to 500 100 à 500 14 % More than 500 Plus de 500 11 %POSITION OF THE IT DEPARTMENT PARTICIPATION IN THE COMPANY’SWITHIN THE COMPANY DECISION MAKING BODIES 2% 7% 23 % 13 % General management Direction Générale NO NON Finance Financière Direction 77 % 77 61 % 61 % Other department Autre Direction 17 % 17 Operations Direction Métier YES OUI No response NSP 19
  20. 20. NOTEWORTHY RECENT DEVELOPMENTS FOR IT DEPARTMENTS Involvement in business change Implication dans les changements 64 % and evolution ou évolutions des métiers Innovation enhancement Accélération de linnovation 62 % Involvement inImplication dans lastrategy the company’s stratégie 58 % de lentreprise ReductionRéduction des budgets et in IT budget and staff 47 % des effectifs de la DSI Outsourcing Externalisation 30 % Switch from a cost centre de coût vers Passage dun centre to a value 25 % un centre de création de valeur creation centre Upaugmentation par rapport à 2009 En on 2009 Down on 2009 rapport à 2009 En diminuation par No Response NSP 3% EVOLUTION OF THE CONTRIBUTION OF THE IT DEPARTMENT WITHIN THE COMPANY Business process management Gestion de processus métier 66 % 62 % Driver of operational excellence Levier dexcellence opérationnelle 61 % Innovation leadership and value creation Leadership sur linnovation et création 59 % via new technologies de valeurpar les nouvelles technologies Enhancement and optimal use of Dynamisation et valorisation 53 % des patrimoines applicaifs applications and software No Response NSP 5% Upaugmentation par rapport à 2009 En on 2009 Down on 2009 rapport à 2009 En diminuation par20
  21. 21. CIO BAROMETER 2010CHALLENGES AND PRIORITIES FOR THE IT DEPARTMENTThe extended enterprise is having a profound effect on traditional organisation structures, with an increasing levelof complexity that fundamentally changes working methods.Increased cooperation between the company and its environment, the need to share information and the need todevelop collaborative tools raises numerous security issues.The priority of the IT department will be to integrate customers and the various users involved into the informationsystem, while allowing them uninterrupted access to company data, regardless of their location and in a totally securemanner.Attracting customers and increasing their loyalty, and reinforcing relationships with users: IT departments need tofocus on these elements and acquire an understanding of requirements and potential markets that will enable themto seize business opportunities.Improving relationships with customers and users of the IS is a major issue, and a key success factor in a business-oriented strategy. The IT department must adapt in order to find new approaches.New technological trends should enhance the company’s competitiveness by enabling it to seize more opportunitiesand create greater value through innovation.SIGNIFICANT CHALLENGES FOR THE YEARS AHEAD Implement security and internal sécurité Mettre en place la control 88 % et le contrôle interne Improve the management of customer Améliorer la gestion de la relation 78 % avecandclientsrelationships les user et utilisateurs Optimise financial and operational Optimiser le pilotage financier 77 % steeringet opérationnel de la DSI of the IT department Rationalise applications, les patrimoines Rationaliser software and 74 % applicatifs etinfrastructure infrastructures Optimise IT processes and et développer Optimiser les processus IT increase the 70 % lusage des bonnespractices use of best pratiques Up augmentation par rapport à 2009 En on 2009 Down on 2009 rapport à 2009 En diminuation par 21
  22. 22. Put in place business Mettre en place des solutions and/or métiersolutions ERP et/ou ERP 66% Communicate action taken Communiquer son action vers les méiers 63 % to the business Assert leadership in innovation Affirmer son leadership sur linnovation 58 % by meansde nouvelles technologies au moyen of new technologies Identify and develop key competences Identifier et développer 50 % des compétences clés Become green Devenir Green 42 % Control the outsourcing of services Maîtriser lexternalisation des services 77 % Down on 2009rapport à 2009 En diminuation par COMPANY MATURITY IN TERMS OF SOFTWARE AND APPLICATION MANAGEMENT Low maturity Peu mature 13 % Average maturity Maturité 29 % moyenne High maturity Bonne 58 % maturité VISIBILITY OF THE QUALITY OF STRATEGIC APPLICATIONS Insufficient Insuffisant 6% Good Bon 44 % Average Moyen 50 % 50 %22
  23. 23. CIO BAROMETER 2010 MAIN OBSTACLES TO INNOVATION LEADERSHIP ENCOUNTERED BY THE IT DEPARTMENT Focus on the processing of requests and Focolisation sur la gestion des demandes 56 % et delivery of coherent cohérentes la livraison des solutions solutions Budget constraints and budgétaire et Contrainte absence of 47 % dedicated budget item absence de poste budgétaire dédié IT innovation perceived as difficilement Innovation IT perçue comme difficult to 40 % maitrisable with uncertain results control et aux résultats incertains Too much time and too many resources mobilised Trop de temps et de ressources mobilisés 34 % for the treatment of incidents andet des urgences pour le traitement des incidents emergencies The relevance of technologies for the Difficulté à démontrer lintérêt 27 % business is difficultles métiers des technologies pour to prove The company does not regard IT as a Lentreprise ne perçoit pas lIT 26% comme un vector pourinnovation vecteur for linnovation The company’s opérationnel de lentreprise Le modèle operational model and 26 % et la gouvernance ne not appropriate governance are sont ppas adaptés No response NSP 5% Upaugmentation par rapport à 2009 En on 2009 Down on 2009 rapport à 2009 En diminuation par PRIORITY INVESTMENT AREAS FOR THE NEXT 2-3 YEARS SécuritéIT security informatique 79 % Infrastructure consolidation and virtualisation Consolidation et virtualisation 77 % des infrastructures IS modernisation Intégration des applications dentreprise 75 % Coordination and steering of processes Modernisation du SI 71 % Service oriented architectures Orchestration et pilotage des processus 63 % Integration of corporateorientées service Architectures applications 63 %Implementation of business and/or ERP solutions Mise en place de solutions métier et/ou ERP 62 % Upaugmentation par rapport à 2009 En on 2009 Down on 2009 En diminuation par rapport à 2009 Convergence of web applications with Convergence des applications 60 % other types of network usage Web avec les autres utilisations réseaux Business intelligence applications Applications de Business Intelligence 54 % Extended mobility applications Applications étendues en mobilité 47 % Database management Gestion des référentiels 46 % Web 2.0 Web 2,0 34 % Open source development Développement de lopen source 33 % Cloud computing Cloud computing 24 % 23
  24. 24. OPERATIONAL EXCELLENCE The lack of internal competences is a major obstacle for the operational performance of the IT department. The simplification of information systems through the use of out-of-the-box solutions shows that IT departments still have a long way to go in terms of improving working methods. Compared to the previous year, the urgency of actions remains unchanged. Efforts to improve the IT department’s relationship with the line of business remain focused on communication. This is an ongoing struggle for IT departments in which they are not making any major progress. PRIORITY OBJECTIVES TO BE ACHIEVED TO IMPROVE PERFORMANCE Accroissement du niveau de competence level Increase in internal compétence interne 75 % Definition and governance of the IT efficiency plan Définition et gouvernance du plan defficacité IT 68 % Implementation of business and/or ERP et/ou ERP Mise en place des solutions métiers solutions 68 % Implementation of knowledge and information Mise en place de solutions de 62 % gestion de la connaissance et de l’information management solutions Management of the portfolio of Pilotage du portefeuille des 53 % demandes et des projets requests and projects Standardisation of processes Industrialisation des processus 52 % Development of partnerships with de partenariats Développement key suppliers 49 % avec les fournisseurs clés ManagementGestion et appropriation du patrimoine and adoption of applications and 48 % software by par les métiers applicatif the business Optimisation of thestratégie destrategy Optimisation de la sourcing sourcing 35 % Up augmentation par rapport à 2009 En on 2009 Externalisation of functions, Outsourcing des fonctions, Down on 2009 rapport à 2009 En diminuation par 35 % applications, infrastructures applications and infrastructure ACTIONS UNDERTAKEN TO IMPROVE THE RELATIONSHIP BETWEEN THE IT DEPARTMENT AND THE BUSINESS Improvements in communication between Amélioration de la communication 87 % the IT department la DSItheles métiers entre and et business Improvement in the visibility of the services Amélioration de la visibilité des services offerts, 66 % provided, their performance andleurs coûts associés de leurperformance et de associated costs Creation of positions andpostes et de Création de processes 56 % to interface with the business processus dinterface avec les métiers Participation ofla DSIIT department in business Participation de the aux cycles de décision métier decision making cycles (prioritisation, (priorisation, constitutiondes portefeuilles, 46 % composition of portfolios, definition of versions) définition des versions)24
  25. 25. CIO BAROMETER 2010 Creation of joint IT – business teams Création de binômes DSI - Métier 45 % Development of dual business/technical Déveioppement de la double compétence, 42 % métier et technique, des collaborateurs SI competences for IT staff Shared management and evaluation of Gestion et évaluation partagées 39 % de patrimoine applicatif avec les métiers applications and software with the businessSetting up service level agreements to define the Contractualisation de 38 % relationship with the business la relation avec les métiers No response NSP 2% 25
  26. 26. CIOS AND THE BUDGET 2010 seems to be a year of recovery in terms of investment. Following last year’s significant drop in investments, CIOs are more optimistic for 2010. 65% of those interviewed do not plan to reduce their investments and 27% plan to increase them. Despite this increase, the total budget of IT departments in 2010 should be at the same level as 2005. Outsourcing does not seem to be the norm when it comes to cost optimisation: the focus is primarily on improving productivity and overall efficiency, notably thanks to cost reduction and infrastructure rationalisation. IT BUDGET €300 300 à 500 millions million De million to €500 deuros 2% €100 100 à 300 millions million De million to €300 deuros 2% Plus deOvermillions million 500 €500 deuros 5% €50 million to €100 million De 50 à 100 millions deuros 6% Do not know NSP 7% €10 million to €50 million De 10 à 50 millions deuros 15 % Moins de than €10 million Less 10 millions deuros 63 % INVESTMENT TRENDS FOR 2010 38 % 34 % 27 % 1% Stable Stables EnDown diminution Up En augmentation No response NSP26
  27. 27. CIO BAROMETER 2010COSTLIEST ITEMS IN THE OVERALL BUDGET IN 2009 Projects Les projets 53 % Upgrade maintenance La maintenance évolutive 49 % Networks and telecom Les réseaux et Telco 49 % Licences Les licences 34 % Corrective and regulatory maintenance La maintenance corrective et réglementaire 22 % IT production costs Les coûts de production informatique 22 % Les coûts de déploiement et de support Deployment and support costs 21 % Les prestations externalisées Outsourced services 21 %PRIORITIES FOR THE OPTIMISATION OF IT BUDGET COSTS FOR 2010 Improve productivityde la productivité Amélioration and efficiency 74 % et de lefficacitéReduce the cost and maintenance of applications Diminution des coûts et 66 % maintenance des applications Standardise IT production andinformatique Industrialisation de la production rationalise 62 % infrastructure et rationalisation des infrastructures Manage du portefeuille des requests and projects Gestion the portfolio of demandes et des projets 57 % Outsourcing Externalisation 27 % Augmentation duthe use à lexternalisation Increase recours of outsourcing 25 % Standardise development engineering Industrialisation de lingénierie du développement 23 % Implement an ABC modèle de gestion ABC Mise en place dun management model 17 %EVOLUTION OF RATIO OF THE PROJECT-RELATED BUDGET TO THE MAINTENANCE ANDOPERATION BUDGET Down En diminution 41 % 30 % Stable Stable 29 % Up En augmentation 27
  28. 28. OUTSOURCING, GOVERNANCE AND SUSTAINABLE DEVELOPMENT The CIO must adopt a business-oriented language to stimulate productivity improvement. The information system must be governed such that it is aligned with the company’s strategic objectives, and the CIO must focus on broader managerial skills to improve understanding of business issues. The explicit use of information must ensure the growth of the role of the CIO within the company, and thus make it possible to seize business opportunities. Armed with their comprehension and overall vision of the organisation’s strategy, CIOs must use the technologies available to achieve the performance and profitability objectives set by top management. The international dimension must be taken into account when developing the IT strategy to ensure the information system is upgradeable and adaptable. In 2010, it is expected that CIOs be both visionary and pragmatic. CURRENT OR EXPECTED SHARE OF IT ACTIVITIES OUTSOURCED 60 % 22 % 16 % More de 50 50% Plus than % 25% to 50% Entre 25 et 50 % Less than25 % Moins de 25% VISIBILITY OF OUTSOURCED ACTIVITIES COMPARED TO INTERNAL ACTIVITIES 40 % 31 % 27 % Lesser Moins bon Equal Equivalent Greater Supérieur28
  29. 29. CIO BAROMETER 2010IMPACT OF OUTSOURCED ACTIVITIES ON THE FOLLOWING DOMAINS: Positive Positif Neutral Neutre Negative Négatif 15 % 15 % 20 % 20 % 35 % 35 % 32 % 32 % Decrease compared to 2009 Augmentation par rapport à 2009 Dimsinution par rapport à 2009 Increase compared to 2009 30 % 30 % 28 % 28 % 23 % 23 % 33 % 33 % 52 % 52 % 49 % 49 % 40 % 40 % 31 % 31 % Project Lefficacité projet Growth of Improved Le développement Lamélioration de la Cost reduction La réduction des coûts efficiency innovation qualité des services de linnovation quality of servicePRIORITY OBJECTIVES OF THE BUSINESS IN TERMS OF IT GOVERNANCE IT alignment with company strategy Alignement du SI à la stratégie de lentreprise 93 % Quality of the services provided to fournis at a Qualité des services users aux 84 % controlled cost utilisateurs à coût maîtrisé Flexibility vis-à-vis business requirements Agilité vis-à-vis des besoins des métiers 78 % IT organisation aligned with best practices and Alignement de lorganisation informatique aux 74 % continuous improvement meilleures pratiques et à lamélioration continue Risk management Maîtrise des risque 73 % Management of applications and software Gestion du patrimoine applicatif 63 % Management of project portfolio Gestion du portefeuille des projets 60 % Focus on the choice sur target architecture and Orientation of les choix des architectures 57 % cible et des solutions à mettrerequired solutions en place Cost assessment and internal and external Mesure des coûts et comparaison interne et externe 53 % benchmarking 29
  30. 30. ACTIONS PLANNED TO MAKE THE IT DEPARTMENT MORE ENVIRONMENTALLY FRIENDLY Reduction in printing Réduction des impressions 74 % Reduction in energy consumption Réduction de la consommation dénergie 68 % Replacement of PCs and IT equipment as in the Remplacement des PC et des composantsdes SI 55 % danscontext de programmes de recyclage le cadre of recycling programmes Choix des fournisseurs respectueuxfriendly suppliers Selection of environmentally de lenvironnement 43 % Development of responsible best practices Développement des bonnes 4242 % % pratiques vertueuses Project evaluation inpar rapport Evaluation des projets terms 3030 % % of sustainable development au développement durable Développement des bonnes 42 % pratiques vertueuses Carbon footprint assessment andcarbone et actions associées Bilan related actions 2323 % % Evaluation des projets par rapport 30 % au développement durable Implementation ofengreen buildings Mise œuvre des bâtiments verts 22 22 % % En diminuation par rapport à 2009 Bilan carbone et actions associées 23 % No response NSP 7 7% % Mise en œuvre des bâtiments verts 22 % Down on 2009 rapport à 2009 En diminuation par NSP 7%30
  31. 31. CIO BAROMETER 2010 31
  32. 32. 32
  34. 34. "wE MUST bECOME EVERMORE agIlE and SwIFT."34
  35. 35. TESTIMONIALSalbERTO albERInICIOAVIVA ITALIAHOW HAS YOUR COMPANY REACTED TO THE CRISIS? development of modern and efficient IT organisationalHAVE YOU DECIDED TO CONCENTRATE ON THE models, training of personnel, stimulating work byRENEWAL OF OPERATING MODELS AND STRATEGIES? objectives and projects, planning… It is only possible to attain ambitious goals, which go far beyond theThe company is part of a group that is undertaking an normal day-to-day activities to which the structure isimportant transformation. Last year we focused on our accustomed, with qualified and highly motivated “Within 3-5 years Aviva Europe will become the The management of talent was and will continue to bemost admired, the most sought after, the most trusted a key issue.and financially successful company in our industry andregion. We will be the unquestioned leader in every area NOW THAT THE WORST SEEMS TO BE OVER, WHICHin which we decide to compete”. We also concentrated on ACTIVITIES ARE NOW AN INTEGRAL PART OF THEthe realisation of what we call the Quantum Leap: seven DAILY OPERATIONS OF YOUR FUNCTION?programmes and twenty-eight pan-European projects.In this context we have bet heavily on the renewal of Certainly the habit of thinking globally and acting locally.operating models and the strategies to realise our motto‘One Aviva, twice the value’, which refers to the process AND WHICH WOULD YOU DESCRIBE AS TRULYof consolidating a series of independent businesses into INNOVATIVE AND DRIVERS OF RADICAL CHANGE?only a single Aviva, and doubling our earnings per shareby 2012. In Italy in particular, towards the end of the year The awareness that it is necessary to change, knowingwe began a profound revision of the organisation and of how to identify those minor changes that produce majorthe processes related to damage claims, aware that in the transformations, and being aware that it is an ongoingfuture the major source of competition in the insurance process that must become an integral part of everyone’sworld will be the capacity to “pay fair damages rapidly”. mentality. We must become ever more agile and swift.A client who receives compensation within only a fewdays of an incident is a faithful customer, who advertises WHAT ARE THE NEW TRENDS AND PROSPECTSfor the company and is prepared to pay for the service. In FOR THE ROLE OF THE CIO, AND HOW DOESterms of impact on our IT applications the work has so far THE IMPORTANCE OF THE CIO INFLUENCE THEbeen demanding, but we have made good progress… We ORGANISATION, GOVERNANCE AND DECISION-are on the right track. MAKING PROCESSES IN YOUR COMPANY? In the insurance world the role of IT and organisationWHAT WERE THE PRINCIPAL CHALLENGES THAT are critical in determining the strategic choices of theYOU HAD TO FACE AS CIO WHEN THE CRISIS HIT THE business. Insurance products are by definition highlyWORLD ECONOMY AND IN ITALY IN PARTICULAR? computerised products.WHAT WAS YOUR PERSONAL EXPERIENCE LASTYEAR? WHAT ARE YOUR PRIORITIES FOR THIS YEAR?Last year was decidedly exacting, but also inspirational. The priorities for this year are to accelerate theI immediately realised that in order to innovate and transformation and implementation in Italy of Quantumrealise the strategic pan-European projects, it was first Leap in order to contribute effectively to the realisationof all fundamental to foster a new culture with the team of our vision. And this without forgetting two importantI had met in Aviva. We have concentrated our energies points: “simple is good” and “proceed in order toon a profound project of change management within innovate”.the IT department; we have spent time and effort on the 35
  36. 36. "OUR gREaTESTCHallEngE ISdIgITalISaTIOn."36
  37. 37. TESTIMONIALSandREaS bERECzkYDIRECTOR OF PRODUCTIONZDF - GERMAN TELEVISIONIS ZDF’S IT BUDGET SUFFERING FROM THE ECONOMIC WHAT IT PROJECTS ARE YOU PLANNING FOR THECRISIS? COMING YEAR?We have noticed hardly any negative impact thus far. As We are going to extend our online and contentwe all know, ZDF is largely financed by licence fees and if management systems. Although they currently functionthe unemployment rate does not increase very sharply – perfectly, we need to upgrade them in order to respond tojob-seekers in particular do not have to pay licence fees – the new requirements from editors. In addition, electronicthen our budget remains stable. Our IT budget remained media are developing so rapidly that we need to regularlylargely unchanged in 2010. We are thus doing better than update our systems in that area.comparable media companies. WHAT CHALLENGES DO YOU SEE AHEAD FOR ZDF’SWILL THIS SITUATION CHANGE IN THE MEDIUM TERM? IT DEPARTMENT?We are in a very uncertain situation at the moment, as Our greatest challenge is digitalising the media landscape.we are going to undergo a transition to a new fee model The end of the analogue era is coming, and we are nowwhose effects we cannot yet assess. It is thus difficult to building everything around digital structures – frommake accurate predictions regarding the budget situation production and broadcasting to programme distributionin the coming years. and signal reception. The images and signals we receive are increasingly made available in digital format viaHOW ARE YOU DEALING WITH THIS UNCERTAINTY? IP networks. The trend towards less video and more IP transmission is rather clear to us. That means that weWe are making efforts to control our costs, to be more must adapt all of our station’s central components toefficient in production and to implement innovative this digital platform. We want to completely moderniseproduction processes. We are investing in areas in which the station’s central components by the end of 2012,we can realise direct efficiency improvements such as and of course integrate the new high definition format.production, technology and the editorial environment. This implies a complete transformation of the station’sOur goal is to complete several more efficiency infrastructure and will involve operations conducted byprojects this year. We are investing, for example, in a all employees, in both editing and integrated programme planning system, and weare trying to outsource commodity IT activities such WILL DIGITALISATION ALSO CHANGE THE ROLE OFas support for networks and mainframe computers. THE CIO?However, we will continue to perform all IT tasks specificto ZDF such as archiving, post-production management, We already abandoned separate ‘traditional’ IT andcontent management systems and other similar activities television technology departments seven years ago byin-house in future. integrating the two into a single unit. Therefore I don’t expect any changes to the role of the station’s CIO in the foreseeable future. However, the CIO must constantly improve his understanding of broadcast technology in order to master his job. 37
  39. 39. TESTIMONIALSValEnTín CabEllOCIOMCCANN WORLDGROUP SPAININ GENERAL TERMS, HOW DID YOUR COMPANY monitored was not popular and we had to introduce theREACT AND WHAT MEASURES DID IT TAKE TO FACE change gently but firmly. Another major challenge has beenTHE ECONOMIC CRISIS? managing users’ obsolete IT equipment, as a result of the investment constraints. We devoted a lot of time in the pastSimilar to what happened in the majority of businesses, year to calming and helping users experiencing problemsincluding our clients, the uncertainty paralysed investment caused by the age of their computers, trying to performdecisions in all areas of the company, including IT, and long- near miracles to convert their frustration into satisfaction.term strategic decisions gave way to short-term decisions,as nobody really knew what the immediate future held. WHAT ARE THE NEW TRENDS IN YOUR ROLE?The IT budget strategy was primarily based on drastically The increase in internet bandwidth, the reduction ofcutting investment (capital expenditure, or capex) and communication costs and the development of virtualisationconverting it into operating expenditure (opex). For systems has meant that today everyone is saying thatexample, by trying to lengthen the service life of computers cloud computing will be the solution to our IT problems. Aby increasing RAM, using server maintenance services common sense approach will be needed when assessinginstead of renewing them and changing the company’s which services can be outsourced and which cannot. Weprinting system and culture. cannot change everything overnight, and of course it would make sense to wait until past investments in company dataIN YOUR ROLE AS CIO, WHAT PROVED TO BE THE centres have been fully depreciated.MAIN CHALLENGES WHEN THE CRISIS BROKE OUT? In IPG we have been working with private clouds for yearsThe company’s main aim was to cut costs. Consequently, for email services and some applications such as SAP. Ithe IT department’s objective changed and basically we think that outsourcing certain IT services into public ordecided to maintain service quality with lesser resources private clouds will become standard practice over the nextavailable, discarding a large number of projects and making few years with even user desktops being virtualised. Thetimescales on others as flexible as possible. One of the cost technology exists and it works. Ultimately, the aim oncecutting objectives was to reduce printing costs, which were again is to cut capex budgets and the spikes that disturbgrowing uncontrollably every year. finance directors so much, and opt instead for pay as you go services (opex). These are much more predictable andThe printing system that we had was based on having a flexible in terms of one-off needs and high availability,large number of departmental printers that were replaced meaning that we can finally put behind us a series ofonce they were fully depreciated, and which had become problems common to all of us: onerous backup operations,obsolete. In the context of our cost cutting initiatives, air-conditioning requirements and power supply issues.instead of replacing the existing printers with new ones, wegot rid of all of them and signed up for a “pay as you go” From a service standpoint, who wouldn’t be interested inprinting service provided by a leading market player, with having access to their folders (personal or otherwise) andthe aim of reducing the TCO (toner, paper, repair, technical corporate applications from any computer? Everythingsupport costs, etc.) and obtaining a range of services that has its pros and cons. We IT managers will have to placewe did not previously have (multifunctional devices, better our trust in these types of companies and services. Wequality creative devices, better accounting control of must overcome our fear of a lack of control over this typeprinting costs, authentication before printing). At the same of outsourced service, by developing suitable SLAs withtime we reduced the number of printers in the company the providers. This will enable IT departments to focusand the number of documents printed by users each year. more efficiently on aligning IT strategy with corporate strategy, and providing added value solutions that will helpThe main challenge was efficiently managing the change. differentiate us the competition.Changing the corporate culture is always complicated andthe users’ printing culture had been based on a “copies areon the house” feeling. Users frequently printed documentsthat were not even picked up. The feeling of being 39
  41. 41. TESTIMONIALSIan CaMpbEllCIOTRANSPORT FOR LONDONHOW HAS YOUR COMPANY REACTED TO THE CRISIS? AFTER THE CRISIS, WHAT ARE YOU DOING NOWDID YOU REVAMP YOUR BUSINESS MODEL AND YOUR THAT YOU WOULD DESCRIBE AS SOMETHING REALLYSTRATEGIES? NEW, SOMETHING DISRUPTIVE?In transport, there are no short-term strategies, we are We are considering a project to provide wireless internetcurrently working to the Mayor’s Transport Strategy which access across London – its schools, community centressets out his transport vision for London and details how TfL and libraries. This project is a paradigm shift for us, andand our partners will deliver the plan over the next 20 years. uses infrastructure and buildings that we own. We areWe are already delivering efficiencies as agreed as part of currently looking at how we can operate this in the bestour long-term planning and expect to continue to do so. interests of Londoners.A drop in passenger numbers of around 6% has hit our WHAT ARE THE NEW TRENDS IN THE ROLE OFrevenues but things are starting to pick up now. Ultimately, CIO... IN TERMS OF ORGANISATION, GOVERNANCE,we are here to provide a service to London which must LEADERSHIP, AND PROCESSES?continue, uninterrupted, regardless of the economic climate. The environment has been changed by the crisis, howeverWHAT WERE YOUR MAJOR CHALLENGES AS A CIO we are increasingly commercial in our outlook, as wellWHEN THE CRISIS HIT? HOW DID YOU PERSONALLY as taking into account that fewer and stronger leadersLIVE THIS LAST YEAR? are better placed to guide the company. The approach is more innovative, as we reach out and see what theThe question for me was, did I have a good operating community can do with us. For example, workingmodel in place and could it be scaled up or down fast. Our through the GLA’s London datastore, we’ll be releasingbudgetary priorities have withstood scrutiny even as money data which can be used by third parties eg; for an iPhonehas been tight. As a local government body, answerable to application to help commuters. More partnerships andthe Mayor, our priority is to keep London moving even if this services like this will exploit our strengths.means taking a more measured approach to innovation. So,new customer information displays, for instance, will roll out WHAT WILL BE YOUR PRIORITIES THIS YEAR?slower. I have looked to keep the trust and motivation levelsof my team high. This is a good time to invest in training and Everything for the Olympics has to be ready 18 monthsdeveloping employees so they well prepared when business ahead, to give us time to iron out glitches. We’ll be playingpicks up. our part in delivering the improvements necessary for 2012 including the major upgrades underway on theAFTER THE CRISIS, WHAT ARE YOU DOING NOW THAT Tube. We’re also working with our GLA partners toYOU WOULD DESCRIBE AS "BUSINESS AS USUAL"? provide better value for money to Londoners through shared services. This is an area where IM really takesWe are running a large number of shared services, using centre-stage. However, as always, our primary objectiveproviders such as CSC, scaled to deal with the volumes is to ensure we continue to keep London moving.coming in. The Olympic Games, to be held in London in2012, requires us to improve our digital services, especiallyfor visitors using 3G mobile technologies, looking for routeand location information by phone. 41
  42. 42. "IT pROJECTS MUSTalSO bE gEaREdTOwaRd CITIzEnS."42
  43. 43. TESTIMONIALSgUnTER CzISCHMAYORCITY OF ULM, GERMANYWHAT ARE THE CHALLENGES FACING IT? WHAT WILL THE IMPACT BE OF BUDGETARY CONSTRAINTS IN THE NEXT FEW YEARS?Our guiding principle “thinking of, and acting on behalfof, the people” also includes IT. We don’t regard it as an The city of Ulm is financially sound. We have even scaledisolated technology, but rather as one of the elements used back levels of debt in the last few years to EUR 117 millionto organise solutions for citizens. For instance, we have set (about 40 percent). We are thus able to take action. Thatup so-called citizens’ offices to deal with a few key issues, means we are also able to tackle strategic matters and, forsuch as Construction and Family. One of these offices, the instance, address matters such as Web 2.0. In contrast toNeue Mitte service centre, was opened a few weeks ago. many other local authorities, we set our own priorities, forIt is entirely tailored to matters related to moving house. example, expanding the broadband infrastructure in Ulm.For instance, a customer can obtain documents to notify Together with public utilities we have worked on a projectof a change of address here, can buy “Müllmarke” (small whose aim is to equip every house in Ulm with a fibre opticiron plates to be attached to rubbish bins indicating that connection, in order to provide complete coverage ofthey have been registered with the local authority), apply broadband (50 MB) internet access to all citizens. That is anfor electricity, gas and water connections, and attend to enormous advantage in terms of location. The project willeverything else which pertains to the matter of moving cost approximately another EUR 7 million, after 200 km ofhouse. For this to work we had to break down the previous optical fibre has already been laid in the city.IT silos and set up new processes. The public offices forConstruction and Family have both already been operating HOW IS THE ROLE OF THE CIO BEING DEVELOPEDas part of a pilot programme for two years now. FURTHER?The second big challenge for IT is to find standardised, simple I believe the CIO should have a say in the policy of a publicand understandable solutions that are easy for employees administration. They should seize the opportunities offeredand citizens to use. This is important because in the future, by innovation and implement them in city-wide policies. Inwe want to be able to provide public administration services addition, the CIO must be oriented on what citizens needonline too. from the administration, and be skilled in communicating those needs in an easily understandable manner.And of course we have to get by in a financial and economiccrisis with the budgets that are available. An IT solution WHAT ARE YOUR PLANS IN THE CONTEXT OFcreated for a particular office shouldn’t mean that the WEB 2.0?administration will require more subsidies from publicfinances than previously. Quite the opposite, IT solutions We are convinced that as a location we can only remainshould bring a return on investment within three years at attractive in the long-term if we can get young peoplethe most. This rule is only broken if an additional service involved in social debate and with what is happening in theyields above-average benefits for citizens. IT projects must city. We are also trying to reach them where they spendalso be geared toward citizens. their leisure time. At the moment we are considering how best to reach young people through social networks and in their communities. As a city we should also create real service offerings, establish communities and be involved in all areas relevant to the city’s interests. Otherwise young people will simply shut us out of their lives. 43