CIO Barometer 2011


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The CIO Barometer is a survey carried out for the 3rd year by CSC, in cooperation with the leading research institute TNS Sofres . It is based on a quantitative analysis of the trends and outlook for IT directors from a sample of major U.S. and
European organizations.

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CIO Barometer 2011

  2. 2. Opinions expressed by contributors are their own. Reproduction in whole or inpart without written permission is strictly prohibited.© Copyright CSC 2011. All rights reserved. 2
  3. 3. CSC IN TOUCH WITH CURRENT TRENDSWithin the framework of its I.D.E.A.S program (Inspiration, Debate, Executive,Annual Surveys). CSC carries out a number of “barometers” every year to analyzetrends and perspectives from key roles within the boardroom (human resources,finance, IT, procurement…) at the European or global level. Each of these studies,carried out with the assistance of independent survey institutions (IFOP and TNSSofres), involve the participation of hundreds of managers from large businessesand public administrations. The results of these studies are revealed during highlevel events, organized in different cities (Paris, Madrid, Barcelona, Milan, Brussels,Lisbon, Washington D.C. , etc.), and are also relayed by partners from the mediaand from academia (universities and elite business schools). 3
  4. 4. CIO Barometer 2011 A TIME OF OPPORTUNITIES?4
  5. 5. TABLE OF CONTENTS1 SUMMARy PAGE 921 RESUlTS PAGE 1531 TESTIMONIAlS PAGE 33 35. CreAtIng vAlue 36. LEOCADIO ALONSO. Director of IT , Organization and Quality - thyssenKrupp Materials Ibérica, S.A. 38. AhMED BENNOuR. Services and Information Systems Director - ArevA 40. LuTz BRuNkE. IT Manager - Comdirect Bank Ag 42. PhILIPPE COuRQuEux. IT and Logistics Director - Cora 44. GIANLuCA FuSCO. CIO - edipower 46. ThOMAS hENkEL. CIO - Amer Sports 48. SyLvAIN MOMIN. head of Country Technology Organization - ABn Amro Bank (luxembourg) 51. ACtIng lIKe A StrAtegISt 52. ThIBAuT BRITz. CTO - trendiction 54. MIkkI CLANCy. CIO - Premier Health Partners 56. JéRôME FILIPPINI. Director, Inter-ministerial Department of State Information and Communication Systems France - DISIC 58. ERNST hEGER. CIO - ÖBB Infrastruktur Ag 60. vANESSA LAPINS. Senior vice President of Global Information, Technology - Dorel recreational/leisure 62. DANIEL LEBEAu. vice President, Management & Information Systems - gSK Biologicals 64. FRéDéRIC RIBAu. CIO EMEA - Yahoo 67. InnOvAtIOn 68. NABIL BATLOuNI. CIO Europe - nYSe euronext 70. ROBERTO FONSO. Information Technology and Operations Director - Banca Popolare di Milano 72. SAuRO NICLI. CIO - AXA 74. ALExANDRE RAMOS. CIO - lusitania 76. PASCAL ROChE. Director, Multichannel and Client Internet IT- Fnac 78. BRyAN WOLF. CIO - Childrens Hospital of Philadelphia 81. SuPPOrtIng tHe lIne OF BuSIneSS 82. ALBERT ALMAJANO. CIO - Kern Pharma 84. FILIPPO CENSI. CIO - Cris Conf (Pinko) 86. FRANk DE SAER. CIO - FPS economy 88. SABINE LEhNER. CIO - Wiener Stadtwerke 90. FRANçOIS MESSAGER. IT and Organization Director - Celio* 92. ANNE ROMAGNOLI. Chief IT and Facilities Officer - Delta lloyd life 94. PEER STAuSkE. Information Systems & Organization - MAn truck & Bus 96. RIChARD vALENTI. Deputy Managing Director and CIO - generali France41 INSIgHTS PAGE 99 100. trenDS AnD OutlOOK WItHIn It OrgAnIzAtIOnS - CIO BArOMeter 2011 106. A tIMe OF OPPOrtunItIeS. CLAuDE CzEChOWSkI. President , South & West Europe. President Global Consulting / Technology / ERP practices - CSC 108. tHe neXt generAtIOn OF DIgItAl gAMe-CHAngerS. DAvID MOSChELLA. Research Director - leading edge Forum 5
  7. 7. CIO BAROMETERAN INTERNATIONAL STUDYA TIME OF OPPORTUNITIES ?PrOCeDure AnD MetHODOlOgY tArget AnD SAMPlIngThe 3rd edition of the CIO Barometer was produced in cooperation Private and semi-public companies and government agencies:with the TNS Sofres market research institute, based on a survey • With a minimum of 1,000 employees,sample of CIOs/ IT Directors of large u.S. and European companies • Located in France, Germany, Great Britain, Italy, Spain,and government agencies. These executives were interviewed Belgium, Portugal, and united Stateson the position, concerns, performance, and perspectives of ITorganizations. 160 CIOs/IT directors were interviewed. Organizations were selected to ensure a representative selection from key industry sectors. The sample was ultimately adjusted to guaranteeIntervIeW MetHOD representation.The questionnaire was administered by the TNS Sofres marketresearch institute, in accordance with the CATI method (ComputerAssisted Telephone Interview), between March and April 2011. 7
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  11. 11. faced with increasing competitive pressures,accelerating decision cycles and a new generationof tech savvy users, companies are looking totheir cIOs as advisors and agents for businessresponsiveness, agility and collaboration. cSc’s2011 cIO barometer polled 160 cIOs from everybusiness sector to shed light on the trends andoutlook for the IT function. IN SEARch Of AgILITY whILE EmERgINg fROm A chALLENgINg EcONOmIc pERIOD, bUSINESSES ARE INcREASINgLY USINg NEw TEchNOLOgIES AS DRIvERS fOR mAkINg ORgANIzATIONS mORE AgILE AND INTELLIgENT. wITh ThE cURRENT bUSINESS ENvIRONmENT cONSTANTLY chANgINg, LEADINg cIOs ARE EmbRAcINg TOOLS ThAT mAkE IT pOSSIbLE TO RESpOND NOT ONLY TO ORgANIzATIONAL NEEDS, bUT ALSO TO OpERATIONAL bUSINESS REqUIREmENTS. IN SO DOINg ThEY cAN bOOST ThE cONTRIbUTION ThEY mAkE TO fORmULATINg STRATEgY AND INcREASINg OpERATIONAL ExcELLENcE IN ThE LINE Of bUSINESS, AND ThUS vALUE cREATION. 11
  12. 12. MORE INNOvATION “tHeSe lArgelY The CIO can help the business shift from Some businesses have understood this and teCHnOlOgICAl a more efficient organization (thanks to are starting to transform their networks into SHIFtS PreSent A cost reduction and process optimization) participative ecosystems. however, according CHAllenge; tHeY to a more intelligent organization, better to analysts, by 2015, 80% of them still will not rAISe queStIOnS OF SeCurItY, able to anticipate risk and rapidly adapt to have implemented a coherent approach to gOvernAnCe AnD a changing financial, economic, political exploiting information circulating in the social OWnerSHIP.” and technological environment. This can media. And this inertia might well deprive be accomplished by accelerating the the business of certain opportunities. “TheseClAuDe CzeCHOWSKI adoption of new collaborative tools and new largely technological shifts present a challenge;PRESIdENT, SOUTh & WEST EUROPE ANd GLOBALBUSINESS SOLUTIONS PRACTICES WORLd-WIdE opportunities offered by cloud computing. they raise questions of security, governancecSc For 78% of those surveyed in the CIO and ownership,” states Claude Czechowski, Barometer (compared to 59% in 2010), President, CSC South & West Europe and expectations on CIOs are now above all Global Business Solutions practices world- related to “their leadership in terms of wide. “But they are enablers of excellence, innovation and value creation by way of innovation and agility. As such they are a real new technologies”. opportunity for both CIOs and the business.” gREATER AlIgNMENT WITH CORPORATE STRATEgy “Our greAteSt For 72% of the CIOs polled in the Barometer, things far upstream in the processes. The CHAllenge WAS the increasing involvement of the CIO in goal is to develop projects aligned with the tO reInFOrCe Our corporate strategy is the most striking business and perfectly synchronized with AlIgnMent WItH tHe StrAtegY OF development in recent years. “Our greatest operational needs.” tHe BuSIneSS In challenge was to reinforce our alignment This contribution of the IT department has been OrDer tO AvOID with the strategy of the business in order reinforced by a shift in business objectives, DISSIPAtIng Our to avoid dissipating our efforts,” explains currently less focused on cost reduction or eFFOrtS.” Frédéric Ribau, CIO EMEA at yahoo. “In the process optimization than on collaboration,FréDérIC rIBAu last two years, the IT department has drawn interaction and sharing. Indeed, businessesCIO EMEAYAhOO much closer to the decision makers in every are hoping to draw on collective know-how department, in order to think together about to drive innovation and value creation. gREATER INvOlvEMENT IN THE EvOlUTION AND FUNCTIONINg OF THE BUSINESS “We neeD tO WOrK Increased speed and agility is a must for all the organization. The focus here is on social HAnD In HAnD WItH projects, and thus concerns all departments of media, Web 2.0 tools, smartphones, mobile tHe lIne OF BuSIneSS, internet connections and new cloud computing the organization. According to the Barometer, SPeAKIng tHe SAMe lAnguAge, AnD the level of involvement of CIOs in change applications – tools whose implementation gettIng InvOl veD and evolution in the line of business is even depends on the choices made by CIOs WItH tHeM In genuIne slightly on the rise (67% in 2011 compared responsible for adapting the organization and reengIneerIng to 64% in 2010). technology infrastructures while focusing on PrOjeCtS.” business priorities. “We need to work hand in In line with customer expectations in termsrICHArD vAlentI of responsiveness, organizations and hand with the line of business, speaking thedEPUTy CEO ANd CIOgENERALI fRANcE government agencies are implementing new same language, and getting involved with ways of working to improve collaboration and them in genuine reengineering projects,” performance, and to boost the creativity of asserts Richard valenti, Deputy CEO and employees, regardless of where they work in CIO of Generali France. MORE vAlUE CREATION “Currentl YOu neeD Y Today the contribution of the CIO to value these tools make it possible to increase the tO HAve A SOunD creation is greater. “Currently you need to commitment of staff and all parties involved unDerStAnDIng have a sound understanding of the business in the processes of design, production and OF tHe BuSIneSS StrAtegY tO Be strategy to be able to propose technological distribution of products and services – even if ABle tO PrOPOSe solutions that will help create value,” explains they are separated in space and time. teCHnOlOgICAl Ahmed Bennour, Services and Information In addition, social collaboration facilitates the SOlutIOnS tHAt WIll Systems Director at AREvA. CIOs need to identification of experts, knowledge sharing, HelP CreAte vAlue.” take responsibility for opening the business preservation of know-how, rapid incidentAHMeD BennOur up to new technologies that can be integrated resolution and interactions with customers – itSERvICES ANd INFORMATION SySTEMS dIRECTORAREvA into the line of business. With little effort, is an unlimited source of value. 12
  13. 13. HIgHlIgHTSBuDget COnStrAIntS: A BrAKe On InnOvAtIOn61% of those surveyed (compared to 47% in 2010) think that budget constraints are the main brake on innovation. This is fargreater than mastering technological innovation and the results thereof (31%), and also much greater than the time and resourcesspent on handling incidents and urgent problems (46%).tHe Hr CHAllenge72% of CIOs consider identifying and developing key competencies to be a major challenge. The increase in competenciesin terms of new technologies is one of the leading factors of this challenge (65%). More generally, competence and careermanagement are of primary concern to 60% of CIOs polled.IMPrOvIng OPerAtIOnAl PerFOrMAnCe71% of CIOs mentioned increasing internal competency levels as a priority objective for boosting operational performance. Costreduction, mass production, internationalization – in order to improve their operational excellence, the companies and governmentagencies surveyed are optimizing their procurement functions, with 54% further developing their procurement processes. 13
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  16. 16. STRUCTURE OF THE SAMPlEPerMAnent eMPlOYeeSThe sample is composed of major corporations and government agencies. half of the organizations surveyed have over 3,000permanent employees.In the united States the sample contains more large corporations than in Europe. 59% of the American organizations surveyedemploy over 3,000 people, compared to 46% in Europe. On the other hand, 2% of American organizations surveyed havefewer than 1,000 employees, whereas the European sample is made up exclusively of organizations with over 1,000 employees. 500 to 999 employees 1% 10,000 or more employees 17% 6,000 to 9,999 employees 9% 3,000 to 5,999 employees 21% 1,000 to 2,999 employees 52%BreAKDOWn OF IntervIeWS BY COuntrYThe global version of the CIO Barometer compares the outlook and trends for CIOs in Europe and the united States. The surveywas thus carried out among American and European corporations and government agencies. The united States representsa large share of the sample, given that American companies make up 43% of the total. The other companies are located inEuropean countries, including France, Italy, Germany, Spain and the uk. Portugal 3% Belgium 3% UK 9% Spain 9% USA Germany 43% 9% Italy 12% France 12% 16
  17. 17. CIO BAROMETER 2011BreAKDOWn OF IntervIeWS BY BuSIneSS SeCtOrThe public sector accounts for approximately 30% of the total. The healthcare and prevention sector represents 1/5th of thetotal sample, and the manufacturing sector accounts for 16%.Public sector organizations represent a much greater share in the united States than in Europe (40% as opposed to 20%).In Europe on the contrary, the best represented sectors are manufacturing, retail, healthcare and prevention, and utilities. Financial services 4% No response 12% Non financial services (including retail, utilities etc.) 20% Healthcare and prevention 19% Manufacturing 16% Public sector 29%BreAKDOWn gOvernMent / nOn-gOvernMent (unIteD StAteS)Almost 40% of the American organizations surveyed are from the public sector. Government 37% Non-Government 63% 17
  18. 18. DESCRIPTION OF THE IT DEPARTMENTnuMBer OF StAFF In tHe It FunCtIOnNearly half of the companies surveyed employ more than 50 staff in the IT function. More than 500 staff 10% No response 1% 100 to 500 staff 25% 0 to 19 staff 37% 50 to 99 staff 12% 20 to 49 staff 15%It DePArtMent rePOrtIngIn most cases (64%) the IT department reports to general management, in Europe and the uSA alike. In Europe the proportionof companies in which the IT department reports to the finance department is slightly higher. Reporting to the line of business 8% Reporting to another department 12% Reporting to the finance department 16% Reporting to general management 64% 18
  19. 19. CIO BAROMETER 2011PArtICIPAtIOn In COrPOrAte DeCISIOn MAKIng BODIeS66% of the CIOs surveyed claim that they are involved in corporate decision making bodies. In the uSA, CIOs are moreinvolved in decision making bodies than in Europe, in particular when it comes to the organizations IT investments andstrategic decisions. No 34% Yes 66%tYPe OF DeCISIOn MADe BY uS CIOs Major investments in IT and programs 88% Strategic decisions for the company 71% Financial budgets for all the divisions of the company 31% No response NSP 2% 0 20 40 60 80 100 19
  20. 20. DESCRIPTION OF THE IT DEPARTMENTreCent nOteWOrtHY CHAngeS In tHe rOle OF tHe CIOThe results of the survey show that the three major evolutions in the role of the CIO, in the uSA and in Europe alike, relateto: involvement in the change process or in business evolutions (69%), involvement in the organizations strategy (68%) andaccelerating innovation (63%). In Europe, involvement in strategy comes first (72% compared with 63% in the uSA), whilecloud computing initiatives are more important in the uSA (38% compared with 26% in Europe). Involvement in change or business evolution 69% Involvement in the companys strategy 68% Accelerating innovation 63% Reduction in IT budget and staff 44% Cloud computing initiatives 31% Outsourcing 26% Shift from a cost center to a value creation center 25% No response 3% 0 10 20 30 40 50 60 70 80evOlutIOn OF tHe CIOs COntrIButIOn WItHIn tHe OrgAnIzAtIOnThe major evolution of the CIO’s contribution within the organization concerns new technologies. CIOs have understood thatnew technologies are innovation drivers and must be integrated into the business. 83% of the CIOs surveyed claim that theyhave an increasing influence on innovation leadership and value creation through new technologies. These results are similarin Europe and the uSA.Innovation leadership and value creation thanks to new technologies 83% Management of business processes 74% Contribution to the definition of the companys strategy 72% Driver of operational excellence 71% Stimulation and leveraging the application asset base 58% No response 2% * US only 0 20 40 60 80 100 20
  21. 21. CIO BAROMETER 2011POSItIOnIng AnD nAture OF tHe lInKS BetWeen It AnD generAl MAnAgeMentIn the majority of the companies surveyed (59%), the IT department’s relationship with general management is one ofpartnership. The notable difference between Europe and the uSA is that, in Europe, there are more organizations in whichthe IT department is considered a cost center than those in which the customer / supplier relationship is formalized. In theuSA, the IT regarded as a cost center to a much lesser extent. IT is considered a cost center 17% Customer/supplier relationship 24% Partnership 59% 21
  22. 22. IT CHAllENgES AND PRIORITIESSIgnIFICAnt CHAllengeS FOr tHe YeArS AHeADIn the uSA and Europe alike, IT security is the no. 1 challenge for CIOs for the years ahead (80% of them consider it significant).The importance of other challenges is a little more heterogeneous. For example, rationalizing the cost of services and identifyingand developing key skills are more important challenges for European CIOs (75% in Europe vs. 53% in the uSA respectively,and 72% vs. 55%). Improving delivery times and controlling the outsourcing of services are also viewed as far more importantin Europe (there are 4 times more CIOs who deem these challenges significant in Europe than in the uSA). Conversely, uSCIOs tend to emphasize the optimization of the IT departments financial and operational steering (77% in the uSA vs. 58%in Europe) and innovation leadership by means of new technologies (66% vs. 57%). 80% IT security 67%Improve the management of relationships with customers and users 66% Optimize the IT departments financial and operational steering 66% Rationalize the cost ot services 65% Identify and develop key skills 64% Optimize IT processes and promote the use of best practices 61% Innovation leadership by means of new technologies 60% Employee retention 56% Extend mobile applications 54% Implement business and/or ERP solutions 41% Improve delivery times 36% Cloud Computing Top 2 (5+4) 29% 5 - Very important Become greener 4 - Important 26% Web 2.0 3 - Moderately important 21% 2 - Not very important Control the outsourcing of services 1 - Not at all importantMAturItY In terMS OF SOFtWAre MAnAgeMentThe vast majority of the companies surveyed claim their software management maturity is moderate to good. On average, itseems that the maturity of uS companies is greater than that of European organizations. No response 3% Not mature: no processes in place 11% Standardization of applications and software development 44% Moderately mature: partial implementation focusing on the rationalization of applications and software 42% 22
  23. 23. CIO BAROMETER 2011MAIn OBStACleS enCOuntereD BY It In terMS OF InnOvAtIOn leADerSHIPBudgetary constraints (73%), as well as focusing on the processing of requests and the delivery of coherent solutions (63%),are the two major obstacles encountered by the IT department in terms of innovation leadership. In the uSA, budgetaryconstraints are well ahead of all other obstacles, above all in the public sector.Another significant obstacle is the fact that CIOs have to dedicate too much time and too many resources to the treatmentof incidents and emergencies (55%).Lack of innovative technology skills is a far greater obstacle in the uSA than in Europe, notably in the public sector. Budgetary constraints 73% Focus on the processing of requests and 63% the delivery of coherent solutions 55% Too much time and too many resources dedicated to the handling of incidents and urgent problemsLack of skills in terms of integrating innovative technologies 35% IT innovation perceived as difficult to control 33% and yielding uncertain resultsThe company does not perceive IT as a driver of innovation 23% Others 3% No response 2% 0 10 20 30 40 50 60 70 80 23
  24. 24. IT AND OPERATIONAl ExCEllENCEPrIOrItY OBjeCtIveS FOr IMPrOvIng OPerAtIOnAl PerFOrMAnCeThe human aspect is very important for CIOs: increasing the internal skill level is the primary objective for improving operationalperformance, on a par with the managing of requests and the project portfolio (65%). The definition and governance of theIT efficiency plan also features among the priorities (58%). On the other hand, outsourcing comes last with 20% of the CIOsconsidering it important. While in Europe the primary objective is increasing the level of internal skills, the priority objectivein the uSA tends to be the managing of requests and the project portfolio. 65% Increase in internal skills level 65% Management of the portfolio of requests and projects 58% Definition and governance of the IT efficiency plan 55% Implementation of knowledge and information management solutions 55% Implementation of business and/or ERP solutions 50% Development of partnerships with key suppliers 37%Management and ownership of the application asset base by the line of business 37% Top 2 (5+4) 5 - Absolute priority Industrialization of development and production processes 4 - Priority 31% 3 - Moderate priority Optimization of the sourcing strategy 2 - Not really a priority 1 - Not at all a priority 20% Outsourcing of functions, applications and infrastructureCOntrIButIOn OF tHe PrOCureMent DePArtMent tO OPerAtIOnAl eXCellenCeIn Europe and the uSA, the organizations surveyed optimize their procurement function, by developing procurement proceduresfor example (62%), in order to improve their operational performance. The procurement department is also getting moredeeply involved in projects (52%) and the sourcing of intellectual services (44%). Development of procurement procedures 62% Involvement of the procurement department in projects 52% Involvement of the procurement department 44% in sourcing intellectual services Introduction of e-procurement tools 40% Rationalization of supplier portfolio and data 34% Outsourcing of the procurement 18% function to specialist service providers No response 14% 24
  25. 25. CIO BAROMETER 2011IT AND HR CHAllENgESHr CHAllengeS FACeD BY ItDue to the increasingly widespread adoption of new technologies within businesses, CIOs need to upgrade the skills of theirteams in terms of new technologies. This is the major hR challenge faced by the IT department (66%). Managing skills andcareers is also a significant challenge for 63% of the CIOs interviewed. A significant challenge in the uSA is the lack of vocationaltraining and career plans. The emergence of new activity areas within the IT department is also a much more significantchallenge than in Europe. The lack of attractiveness of the IT function, the aging of the population and staff turnover are alsogreater in the uSA. In most cases, hR challenges in the uSA are more significant in the public sector than the private sector. Increase skills in terms of new technologies 66% 64 %63% Skills and career management 62 % Lack of vocational training and career plans 53% 60 % 50% Emergence of new activity areas within IT department 57 % Diversity of the required profiles 47% 54 % 44% Scarcity of traditional skills 44 % 38% Lack of attractiveness of the IT function within the company 42 % 36% Aging of the population 36 % 29% Management of staff with different cultural backgrounds 26% Staff turnover 25% Internationalization of the required profiles 4% No responseACtIOnS unDertAKen tO IMPrOve tHe lInK BetWeen It AnD tHe lIne OF BuSIneSSImproving communication between the IT department and the line of business is a priority action (86% of the CIOs surveyed) forimproving the link between IT and the business, in Europe as well as the uSA. Improving the visibility of the services provided,their efficiency and associated costs (69%), as well as the shared management and evaluation of applications and software withinthe business (68%) are also priority actions. The creation of joint IT and business teams is a more common occurrence in the uSA,while Europe resorts more often to the development of a dual business/technical competence among IT staff. Improving communication between IT and the line business 86% 64 % Improving the visibility of the services provided, their performance and associated costs 69% 62 % Shared management and evaluation of the application asset base within business 68% 60 % 57 % Involvement of IT in business decision cycles (prioritization, composition of portfolios, decision of versions) 65% 54 % Creation of joint IT and business teams 44 %64% 42 % Development of dual competencies 62% (business and technical) for IT staff 36 % Creation of positions and processes 62% to interface with the line of business Developing contractual relationships with the line of business 30% No response 2% 25
  26. 26. IT AND THE BUDgETIt BuDget35% of the organizations surveyed foresee an IT budget of more than $15 million. This proportion is 25% in Europe comparedto 48% in the uSA. $450M to $750M 2% $150M to $450M 2% No response 4% $75M to $150M 9% $15M to $75M 22% Less than $15M 61%InveStMent trenDS FOr 2011The breakdown of increasing, decreasing and stable investment trends for 2011 is relatively homogeneous. In the uSA, theinvestment trend is mostly stable. In addition, there is far more decreasing investment in the public sector than in the privatesector in the uSA No response 1% Decreasing 29% Increasing 33% Stable 37% 26
  27. 27. CIO BAROMETER 2011eXPeCtAtIOnS COnCernIng tHe evOlutIOn OF BuDgetArY PrOCeSSeSFlexibility is a priority expectation as regards the evolution of budgetary processes: CIOs must be capable of taking into accountor mediating changes during the year (83%). Furthermore, the expansion and taking into account of all IT costs (75%), as wellas the alignment of mediation processes with the strategic and/or business objectives (72%), are important expectations. Theexpansion and taking into account of all IT costs is a much more important expectation for uS CIOs. 83% Ability to take into account or mediate changes during the year 64 % 62 % Expansion and taking into account of all IT costs 75% 60 % 57 % Alignment of mediation processes with strategic 72% and/or business objectives 54 % 44 % 68% Optimization of the annual budgeting process 42 % Mediation processes for project portfoliios 36 % 58% and application maintenance Establishment of an ABC costing system 30% No response 4%MOSt COStlY OverAll BuDget IteMS In tHe PASt YeArNetworks and telecommunication are ahead of all other items in terms of budget allocated (63%). however, it is mostly inEurope that they are perceived as the most costly item. This can be explained by the business desire to implement newcollaborative working tools based on social media and Web 2.0. Similarly, expenses concerning licenses, projects and ongoingmaintenance are significant. In addition, deployment and support costs are a more significant part of uS budgets. Networks and telecom 63% 62% Employee remuneration Licenses 58% 457% Projects 57% Maintenance (development and upgrades) Deployment and support costs 47% 40% Maintenance (corrective and regulatory) 29% Outsourced services 28% IT production costs 2% No response *US only 27
  28. 28. IT AND THE BUDgETPrIOrItIeS FOr OPtIMIzIng It COStS In tHe YeAr tO COMeImproving productivity and efficiency (76%) is a priority for the optimization of IT costs in the year to come. Reducing themaintenance cost of applications and rationalizing applications and software (66%) also feature among the priorities, inEurope as well as the uSA. Industrializing IT production and development engineering are not among the priorities but areconsidered slightly more important in Europe. The implementation of ABC cost management and outsourcing are of minimalpriority in the optimization of IT costs. 76% Improving productivity and efficiency 66% Reducing the maintenane cost of applications and rationalizing the application asset base 56% Reducing lead times 56% Managing the portfolio of requests and projects 48%Industrializing IT production and rationalization of infrastructure 31% Industrializing development engineering Top 2 (5+4) 5 - Absolute priority 19% 4 - Priority Implementing an ABC management model 3 - Moderate priority 2 - Not really a priorty 17% 1 - Not at all a priority Increasing the use of outsourcingevOlutIOn OF tHe PrOjeCt-relAteD BuDget In relAtIOn tO tHe MAIntenAnCe AnDOPerAtIOn BuDgetFor most of the companies surveyed (56%), the ratio of the budget related to projects compared to that for maintenanceand operations has remained stable. 27% of the companies surveyed claim it has increased. These proportions are similar inEurope and the uSA. however, a significant difference can observed between the results of the uS public and private sector.37% of the organizations in the uS private sector claim that this ratio has increased, compared to 14% in the public sector. No response 2% Decreasing 15% Increasing 27% Stable 56% 28
  29. 29. CIO BAROMETER 2011OUTSOURCINg, gOvERNANCE AND SUSTAINABlE DEvElOPMENTIMPACt OF OutSOurCIng On ItIn the uSA as well as Europe, outsourcing has a positive impact on innovation development. however, according to uS CIOs,outsourcing is essentially used to reduce costs: 43% of the uS organizations surveyed believe that the impact of outsourcingon cost reduction is positive, compared with only 33% in Europe. 44% Innovation development 38% Improved quality of services 37% Cost reduction 33% Project efficiency Positive impact No impact Negative impact No responseCurrent Or eXPeCteD PerCentAge OF OutSOurCeD It ACtIvItIeSMore than two thirds of the CIOs surveyed outsource less than 25% of their IT activities. Only 12% of them outsource morethan half of their IT activities. Comparing uS and European results reveals that, in the uSA, the proportion of organizationsoutsourcing more than 50% of their IT activities is a little lower than in Europe. More than 50% 12% Less than 25% Between 25 and 50% 70% 18% 29
  30. 30. OUTSOURCINg, gOvERNANCE AND SUSTAINABlE DEvElOPMENTvISIBIlItY OF OutSOurCeD ACtIvItIeS COMPAreD WItH InternAl ACtIvItIeSThe majority of the CIOs surveyed consider the visibility of outsourced activities compared to internal activities equivalentor worse (84%). visibility seems better for European CIOs, as 64% of them claim that the visibility of outsourced activitiescompared to internal activities is equivalent or better, versus only 45% in the uSA. Better 16% Worse 44% Equal 40%PrIOrItY OF It gOvernAnCe OBjeCtIveS FOr BuSIneSSeSIT alignment with corporate strategy is a priority objective for businesses in terms of IT governance for 85% of the businessessurveyed. The quality of the services provided to users at a controlled cost (76%), as well as the alignment of the IT businesseswith best practices and continuous improvement (71%), are also a priority. The results are similar in Europe and the uSA.however, flexibility vis-à-vis business requirements is more important in the uSA. 85% IT department aligned with the companys strategy 76% Quality of service provided to users at a controlled cost 71%Alignment of the IT organization with best practices and continuous improvement 69% Flexibility vis-à-vis business requirements 62% Risk management 58% Management of the project portfolio 58% Innovation to increase value creation in the line of business 57% Top 2 (5+4) Management of the application asset base 5 - Absolute priority 4 - Priority 48% 3 - Moderate priority Cost measurement and internal and external comparison 2 - Not really a priority 1 - Not at all a priority 30
  31. 31. CIO BAROMETER 2011ACtIOnS PlAnneD tO lIMIt tHe IMPACt OF It On tHe envIrOnMentCIOs are making efforts to limit the impact of their activities on environment. Reduction in printing (90%), reduction in energyconsumption (81%) and the recycling of PCs and IT hardware (77%) are the three major actions undertaken both in Europeand the uSA. Reduction in printing 90% 64 % Reduction in energy consumption 81% 62 % Recycling PCs and IT hardware 77% 60 % Development of virtuous best practices in terms of governance and 52%operational steering by continuous integration of environmental criteria Selection of environmentally friendly suppliers 52% Carbon footprint assessment and related actions 44% Project evaluation in relation to sustainable development 44% implementation of green buildings 37% Others 2% No response 1% 31
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  35. 35. teStIMOnIAlSCREATINg vAlUEIT, a cost center? Not a single CIO agrees. Taking their responsibilities in terms of implementing projectsthat deliver all the agility and intelligence needed by the business, CIOs today place their function at theheart of value creation. "SUCCESS lIES IN MAINTAININg "gREATER vISIBIlITy ON THE PERFECT BAlANCE BETWEEN PROjECTS AND COSTS." INvESTMENT AND lEvEl OF SERvICE." AHMeD BennOur Services and Information Systems leOCADIO AlOnSO Director Director of IT , Organization and Quality ArevA thyssenKrupp Materials Ibérica, S.A. "NEW ARCHITECTURE REDUCES "OUR PRIMARy FOCUS IS ON DEvElOPMENT COSTS By 30%." PROjECTS THAT gENERATE gROWTH AND REvENUES." lutz BrunKe IT Manager PHIlIPPe COurqueuX Comdirect Bank Ag IT and Logistics Director Cora "THE IT DEPARTMENT SHOUlD "IT CONCENTRATES ON NOT ONly BE INvOlvED IN THE OPERATIONAl EFFICIENCy MANAgEMENT AND DISTRIBUTION AND BUSINESS PERFORMANCE OF COMMODITy SERvICES, BUT MANAgEMENT." AlSO IN THE COMPANyS CORE BUSINESS ACTIvITIES." tHOMAS HenKel CIO gIAnluCA FuSCO Amer Sports CIO edipower "THE IT DEPARTMENT CAN gENERATE REvENUE AND PROvIDE A COMPETITIvE ADvANTAgE IN DISCUSSIONS WITH ClIENTS." SYlvAIn MOMIn head of Country Technology Organization ABn Amro Bank (luxembourg) 35
  37. 37. teStIMOnIAlSlEOCADIO AlONSODIRECTOR OF IT, ORGANIzATION AND QuALITytHYSSenKruPP MAterIAlS IBérICA S.A.ThySSENKRUPP MATERIALS IBéRICA S.A. WAS RE-FOUNdEd IN 1995 AS A RESULT OF TWO SUBSIdIARIES OF ThEThySSEN GROUP IN SPAIN BEING MERGEd. ThEy WERE dEdICATEd TO ThE dISTRIBUTION OF SPECIALTy STEEL, ANdIRON ANd STEEL PROdUCTS RESPECTIvELy. WITh ThE MERGER OF ThySSEN IBéRICA S.A. WITh ThySSEN ACEROSESPECIALES S.A., A NEW BUSINESS UNIT WAS CREATEd. ThE COMPANy IS PART OF ThySSENKRUPP MATERIALSINTERNATIONAL, ONE OF ThE OPERATIONAL dIvISIONS OF ThE GERMAN MULTINATIONAL, ThySSENKRUPP AG.ThySSENKRUPP MATERIALS IBéRICA S.A. PROvIdES MATERIALS ANd SERvICES TO A WIdE RANGE OF COMMERCIALANd INdUSTRIAL SECTORS.In YOur COMPAnY, HOW DOeS tHe It DePArtMent WHAt rOle DO neW teCHnOlOgIeS PlAY In YOurSuPPOrt BuSIneSS grOWtH? BuSIneSS StrAtegIeS?Our mission is to provide support to business processes, optimizing them Basically, our strategy in this regard is oriented toward innovating to theand offering our internal clients - the users in our company - the best tools greatest extent possible in procurement, with a clear philosophy of "buyto make their work easier and more profitable, focusing on the priorities of very well so as to sell even better." With this in mind, and as an example ofthe sales force. At the end of the 1990s, we only had an in-house software the type of business we conduct, our major clients are those that requireprogram that was developed on an S/36 and a management software us to be fully integrated with their B2B platforms, to handle electronicprogram running over the LAN. Today, our core business is supported by billing at either national or European level, and to conduct business withoutan ERP system, the sales force is mobile and most processes have been exchanging a single piece of paper.reengineered, all of which has translated into a more than 400% increasein our volume of business. AS CIO, WHAt Are YOur PrIOrItIeS In tHe Current eCOnOMIC SCenArIO?SInCe tHe StArt OF tHe CrISIS, BuSIneSS CYCleSHAve Been SHOrteneD (r&D, PrODuCtIOn, To maintain the perfect balance between investment and level of service,MArKetIng, SAleS, etC.) WHAt IS YOur with the goal of continuing to offer the quality of service that our clients/DePArtMentS eXPerIenCe In terMS OF tHIS users require.ACCelerAtIOn?Despite our companys size and the volume of business we do, the ITdepartment is a modest one. This allows us to maintain a constant course,avoiding major pitfalls or deviations caused by changes in the businesscycle or by market conditions like those we see today. In addition, we haveseveral partners that have demonstrated the highest levels of reliabilityand professionalism when we initiated projects that required 200% fromall of the professionals involved. Our department policy is oriented towardvariable costs, which gives us the greatest level of flexibility when facingsituations of work overload or stagnation in IT investment. 37
  39. 39. teStIMOnIAlSAHMED BENNOURSERvICES AND INFORMATION SySTEMS DIRECTORArevAThE REORGANIzATION OF AREvA LEd TO ThE CREATION OF SINGLE IT dEPARTMENT FOR ThE GROUP. ThE RESULT:INCREASEd SIMPLIFICATION ANd COhERENCE, PARTICULARLy WELCOME AT A TIME WhEN ThE REqUIREMENTS OFMANAGEMENT CONTROL ARE BECOMING MORE dEMANdING.WHAt rOle Are It DePArtMentS PlAYIng In 2011? WAS tHe reOrgAnIzAtIOn SuPPOrteD BY SPeCIFIC ACtIOnS?It all depends on the maturity of the function within every business, but it’sundeniable that IT departments should no longer be considered merely In parallel we launched an optimization program that grouped our variousas cost centers. The goal today is to have a sound understanding of the challenges into roughly twenty projects. Some enabled us to implementbusiness strategy in order to propose technological solutions that will help genuine performance opportunity management, which had an impact oncreate value. To do that, the IT function needs to take up its full position procurement, the renegotiation of certain contracts, the optimization ofwithin the organization. One of our challenges today is to integrate IT into infrastructure or the development of offshore initiatives. This program isgovernance with the business groups and operational departments in also contributing to improved management control, to greater efficiencyorder to share governance, project prioritization processes and financial in the way the IT department works with Euriware, and to the positioningcontrol with the line of business. of Euriware as the IT services provider and preferred partner of the group.HOW DO YOu SuPPOrt tHe StrAtegY OF tHe Are YOu runnIng PrOjeCtS InvOlvIng neWBuSIneSS? teCHnOlOgIeS?At the beginning of 2010, the group reorganized itself in line with the We are consolidating our data centers and starting to virtualize ourstrategy of an integrated offering throughout the business. AREvA is now servers, but given the sensitive nature of our data, we are not consideringorganized according to operational needs (mines, front end, reactors and moving it into a public cloud. As for social media, we are working with ourservices, back end and renewable energies) rather than divisions. At that colleagues in the communication, hR and legal departments to determinetime, a single IT department for the group was put in place. Our goals the impact of these new technologies. This process has already resultedremain the same: client satisfaction and information system performance, in a charter for the use of social and risk management, cost reduction, standardization, continuousimprovement… But we also have a specific goal in terms of managementcontrol and the positioning of Euriware, our consulting, systems integrationand IT management business.WHAt HAve Been tHe BeneFItS OF tHereOrgAnIzAtIOn FOr YOu?Simplification and coherence. We now have single roadmap for thegroup and we’ll soon have a single ERP system. In addition, this neworganization gives us greater visibility on projects – which enables us toprioritize them well – and on costs, which has enabled us to adapt ourcost structure when certain projects are postponed. That wasn’t possiblein the old organization with 300 applications to manage… And it’s verybeneficial in the context of the crisis in Japan, when we have to respondto everything that is changing. 39
  41. 41. teStIMOnIAlSlUTz BRUNkEIT MANAGERCOMDIreCt BAnK AgIT ANd BANKING hAvE LONG BEEN INExTRICABLy LINKEd. FOR A dIRECT BANK FOCUSEd ON ONLINE OPERATIONS,GETTING IT RIGhT ISN’T jUST IMPORTANT – IT’S CRUCIAL. LUTz BRUNKE, IT MANAGER OF COMdIRECT BANK AG,dISCUSSES ThE PROjECTS BEING GIvEN PRIORITy TO SUPPORT ThE GROWTh OF ThE BUSINESS ANd ENhANCE ThECUSTOMER ExPERIENCE.BAnKS AnD DIreCt BAnKS Were PArtICulArlY WHAt IS tHe IMPACt OF tHeSe PrOjeCtS On tHeSeverelY AFFeCteD BY tHe CrISIS. HOW DID CuStOMer?COMDIreCt BAnK eXPerIenCe tHIS? Many aspects are not visible for the customer, and initially at least,We were of course affected by the crisis, and still are today to some extent. functionality and speed will remain the same as we migrate softwareAs a direct bank, however, we dont just deal in securities; we also provide functions. however, the advantages of the new architecture will play a role,daily banking services for our clients, such as payment processing and for example by enabling us to offer products for off-exchange trading. Othersavings accounts. This means that the effects of the financial crisis were projects do benefit our customers directly, such as product innovations ornot as dramatic for us as for other financial institutions, for example, those improved functionalities. This year, for instance, we will launch a websitefocused on real estate. Clearly we also exercise strict discipline in cost with enhanced user operability, based on Web 2.0 functionality, amongmanagement. During the crisis, we worked intensively on the efficiency others. For example, we’d like to provide a personalized accounts overview,of existing processes, with less emphasis on new services and products. in which the customer can determine what should be shown where, atNow the markets have picked up, we want to use IT to help launch new what level of detail. Similar things will be added to the order screens.products, and to further develop the functionality of existing products. FrOM A BuSIneSS AnD It PerSPeCtIve, WHAt AreOn tHe SuBjeCt OF eFFICIenCY – CAn YOu YOur greAteSt CHAllengeS In tHe neAr terM,PrOvIDe uS WItH SOMe eXAMPleS OF HOW It HAS AnD WHAt neW teCHnOlOgIeS WIll YOu BereSPOnDeD tO tHe ACCelerAtIOn In BuSIneSS COnSIDerIng?CYCleS? One significant challenge is the mobile arena. We will not only have toFirstly, we have a continuous improvement program in place to boost the provide a website, but also make our products available to customersefficiency of our back office and call center processes, which enables us using smartphones and tablets. From the IT perspective, we also wantto serve more customers with the same level of personnel. IT supports to improve deliverability, that is, to reduce time to market. We’re alsothis by increasing the level of automation in the back office and improving currently having an exciting discussion about incorporating social media.customer self-service functionality – for instance, by enabling customers This raises questions about what we want to do as a bank, and even aboutto perform even complex transactions independently online. In the call what we’re allowed to do. ultimately we’re dealing with personal, even simple measures such as an additional screen for rapid viewingof the customer history proved highly effective. tHe WHOle WOrlD IS tAlKIng ABOut ClOuD COMPutIng. WHAt PlACe DOeS It HAve In YOurSecondly, within IT we’re finding ways to work more efficiently. We’re PlAnS?switching to a new software architecture to increase the speed and flexibilityof IT. We’re migrating our middleware to a business logic environment Particularly for a bank, there are many things that are currently not desirablewith a Java-based architecture. This enables us to break open the software to have in the cloud. This issue primarily relates to availability, security, andstructures that have grown organically, so we can segment them into clean privacy. This means that we’re taking a very conservative approach to thecomponents. It has the additional benefit that when we outsource projects public cloud at this make progress more rapidly, there are simply more technical resourceson the market that can handle the Java architecture. Both programs werebegun prior to the crisis, and continued to run during the downturn. Theyalso deliver tangible benefits: for example, thanks to the architectureprogram we’re realizing savings of about 30% on our development costs. 41
  43. 43. teStIMOnIAlSPHIlIPPE COURqUEUxIT AND LOGISTICS DIRECTORCOrAAT CORA ThE IT dEPARTMENT IS NOT A COST CENTER, IT IS AT ThE hEART OF vALUE CREATION. A NEW SERvICEPLATFORM, ThE REINFORCING OF MULTIChANNEL SyNERGIES, A NEW ChECKOUT SySTEM: IT IS AT ThE CENTER OFINNOvATION ON ALL FRONTS.WHAt IS tHe rOle OF tHe It DePArtMent In COrA’S WHAt IS tHe PlACe OF neW teCHnOlOgIeS In YOurreturn tO grOWtH? StrAtegY?Our primary focus is on projects that generate growth and revenues. We’re We’ve been investing in virtualization for several years, with vM Ware. As acurrently testing a new online shopping service, Cora Drive. Customers result, our server park is smaller, more homogenous and easier to maintain.order online and are free to choose the day and time at which they want The 6,500 PCs in the group are managed via remote come to collect their purchases. The difference with houra, the group’s We’re also interested in cloud computing, which is particularly relevantonline shopping platform, is that they aren’t limited to a fixed delivery during test phases. however, it’s not always easy to find applications thatslot. So in addition to saving time, it’s an extremely flexible service for correspond to our needs, without mentioning the interfacing problems.people that work. WHAt Are YOur PrIOrItIeS?DOeS tHIS neW PlAtFOrM HAve A lOt OF grOWtHPOtentIAl? We’re developing our own checkout solution, which is quite rare in the retail sector. We have already internalized our loyalty program in order to manageIt’s getting a lot of traction in the stores where the pilot project is currently our special offer policy more easily. By internalizing the entire system, we’llbeing run. The tool is highly relevant and delivers real added value. We be able to develop a self-scanning service that will enable customers toinvolved our customers very far upstream in the process for designing the scan their merchandise directly in the aisles more easily. We gain agilityservice, as well as in its continuous improvement. Today, when we launch when developing the project, and we’re no longer dependent on an outsidea campaign to collect customer opinions, over 50% of them respond, service provider while at the same time reducing our maintenance costs.which leads to tremendous improvements in the service. We’re striving We’re also working on a unique database of 140,000 products that will beto reinforce our multichannel strategy by further developing the links and shared by all the departments in the company: logistics, sales, accounting,interaction between the service platform (Cora Drive) and the various etc. The goal: increased coherence and efficiency.communication channels.HOW HAve YOu eXPerIenCeD tHe ACCelerAtIOn OFBuSIneSS CYCleS?We’ve felt the full impact. We reinforced our planning efforts in cooperationwith top management and project management, in order to be capableof handling the requests and projects that will come up in the course ofthe year more easily. Where previously we were able to complete 80%of the projects planned at the beginning of the year, that level has beeneroded in 2010, due to the propagation of new projects in the short term. 43
  45. 45. teStIMOnIAlSgIANlUCA FUSCOCIOeDIPOWer SPAWITh PROFOUNd KNOWLEdGE OF BUSINESS PROCESSES, CONSTANT COLLABORATION ANd dIALOGUE WIThMANAGEMENT ANd ThE ABILITy TO IdENTIFy ThE hIGhEST vALUE TEChNOLOGICAL INNOvATIONS, IT AT EdIPOWERIS A STRATEGIC dRIvER OF OPERATIONAL EFFICIENCy ANd ThE CREATION OF COMPETITIvE AdvANTAGE.In YOur COMPAnY, HOW DOeS tHe It DePArtMent In YOur rOle AS CIO, WHAt Are YOur PrIOrItIeS InSuPPOrt tHe BuSIneSS tO FOSter reCOverY AnD tHe Current eCOnOMIC ClIMAte?grOWtH? My primary target is still to strengthen IT’s position as an authoritativeIT works closely with management by establishing a relationship based on partner for business initiatives capable of affecting the companys valueknowledge of processes and business challenges. This relationship aims chain. The IT department, in fact, should not only be involved in theto identify projects and initiatives that contribute to efficiency, competitive management and distribution of commodity services, but also in thevalue and differentiation in the marketplace. This approach combines companys core business activities, so as to perform the role that today istraditional reactivity, that is to say the ability to quickly respond to needs increasingly sought of IT. This means that the IT department must be ableexpressed by the business, with a proactive approach that enables IT to to revise its organizational models and its sourcing solutions.offer new solutions. Organizational models must increasingly focus on personnel whoseWHAt rOle DO neW teCHnOlOgIeS PlAY In tHe traditional technology skills are accompanied and complemented byStrAtegIeS ADOPteD BY YOur DePArtMent AnD BY knowledge of business processes. This is in order to maintain the importantYOur COMPAnY? strategic and tactical processes inside the company (typically all governance processes), as opposed to the more operational and specialist processes,The knowledge of new technologies and the ability to identify and which can be outsourced.understand those having the greatest impact on the business are keyaspects enabling IT management to form a strategic vision of efficiency The sourcing model must be able to adapt to the organizational setting inand value creation, including through the introduction of innovation. order to seize opportunities in terms of outsourcing or cloud computing -Both IT and the CIO must thus develop analytical skills related to business depending on business maturity - in a context that is certainly ever moreanalysis (in order to select technologies based on business priorities), complex in terms of technology and integration.related to architecture (in order to ensure proper governance during theintegration processes), and related to change management (in orderto identify processes and transformative activities for both IT and thebusiness that must be addressed through appropriate training programs). 45
  47. 47. teStIMOnIAlSTHOMAS HENkElCIOAMer SPOrtSAMER SPORTS IS PURSUING A NEW STRATEGIC dIRECTION WITh TWO KEy ELEMENTS. CIO ThOMAS hENKELExPLAINS ThE EFFECTS ThAT ThIS hAS ON IT ANd hOW IT WILL OvERCOME ThESE NEW ChALLENGES IN ThESEvERy TURBULENT TIMES.WHAt CHAllengeS DO YOu FACe AS CIO OF AMer WHAt eFFeCt HAS DIreCtlY ADDreSSIng tHe enDSPOrtS In tHeSe tIMeS OF CHAnge? CuStOMer HAD On tHe It DePArtMent?For one thing, fortunately our business is growing, which also has an Because we concentrate on our strategic initiatives on the IT side, in theimpact on IT, and for another, we support the new strategic alignment of area of e-commerce, where we serve our end customers as well as flagshipour company in the areas of organization and customer segmentation. stores and factory outlets, we work with partners that do everything forFor several years now, we have been working on organizing Amer Sports us, from website construction to payment processing and logistics. We’reinternally no longer by business segment but by product category. In clearly still in a learning phase here. In order to be able to provide ourthe past year, in addition to our B2B customers in sports retailing and customers with a good online purchasing experience, however, we havewholesaling, we have also begun addressing the end customer directly. placed this in the hands of our partners.WHAt eFFeCt HAS tHAt HAD On It? HOW DO YOu HAnDle neW teCHnOlOgIeS, AnD HOW DO YOu IntegrAte tHeM IntO YOur ItIn practice, we’re the nervous system that connects teams and provides StrAtegY?them with all the information they need to be successful in their productcategories. This means that, in concrete terms, we first need to speak the We pick up on new themes early, but keep our investments relativelysame language with respect to data, reports and information. Many of small at first, in order not to take too great a risk. For example, afterthe synergies that we seek will only be realized if the entire group uses some intense discussion, we decided not to invest in tablet PCs, but wethe same processes. For example, we now execute 80% of our global will provide an opportunity for those employees who want to use theirsales volume in a single version of SAP. This gives us a high level of data personal devices at the company to synchronize them with their companyquality, among other benefits, which is critically important for our decision calendar, conference planners and emails. In the second big area of hype,support systems. We have also now equipped 50% of our locations with cloud computing, we’re also proceeding with caution. We have starteda uniform process platform. We want to increase this percentage, and to use some applications in Software-as-a-Service mode, but only thosethanks to our excellent IT team, we’re making good progress every year. that don’t need to be integrated in our business processes.WHAt StrAtegIeS Are YOu PurSuIng tO MAKe ItAnD PrOCeSSeS AgIle AnD FleXIBle enOugH tOBeSt SuPPOrt tHe PerFOrMAnCe AnD grOWtH OFAMer SPOrtS?Strategically, we are concentrating on two tasks: improving operationalefficiency, and optimizing business performance management. The firstone deals with the question of how to automate our customer and deliveryprocesses to the greatest extent possible. The second is about trackingand comparing our businesses according to the same criteria globally,so that we can react to trends as quickly as possible. We want to be ableto supply our customers with the right products, in the right quantities,with pinpoint precision. 47