201212 The changing role of the CIO

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201212 The changing role of the CIO

  1. 1. THE CHANGING ROLE OF THE CIOat banque internationale à luxembourgDecember 17, 2012 - Prepared by Raphaël Henry
  2. 2. WE ARE CIONET LUXEMBOURGCIONET’s mission is to feed and develop top-levelIT executives with the resources they need to realise their fullpotential.CIONET Launch event, October 4, 2013, Hotel Simoncini
  3. 3. The  Changing  Role  of  the  CIO  CIONET LUXEMBOURG
  4. 4. Welcome  address  by Thierry Delroisse, COO and Board Member of BILWhat  the  CEO  expect  from  its  CIO      by  Lázaro  Campos,  former  CEO  of  Swi0    CIO  Tes:monials  :  The  Changing  Role  of  the  CIO  •  From  a  full  local  CIO  to  a  Group  head  of  IT  systems  &          The  CIO,  a  major  actor  of  the  company  strategy      by  Christophe  Pierron,  CIO  of  Caceis  Luxembourg  •  Bob  Kneip,  CEO  of  Kneip  •  Francisco  García  Morán,  European  Commission,  Director  of  Digit  The  new  breed  of  CIO    by  Pierre  CaEoir,  CIO  pracFce  Leader  at  Egon  Zehnder  Agenda  :  ‘THE  CHANGING  ROLE  OF  THE  CIO’  EVENT  
  5. 5. CIO’s communicationwith CEO and BoardLázaro CamposCIONet Event – 17 December 2012
  6. 6. Evolution of CIO roleFrom ToKeeping the businessrunningDriving businesstransformationEnabling businessinnovationKeeping thelights onDelivering IT-centric changeAligning IT andorganisationalstrategies
  7. 7. ExpectationsKeeping the business running• Availability, Security, Confidentiality, Integrity• Manage risk profile: technology and operations• Technology management (obsolescence vs opportunity)• No surprisesDriving business transformation• Optimise quality/cost ratios• Encourage efficiency and continuous improvement• Act in contextEnabling business innovation• Driver of relevant innovation• Military precision vs Innovation from within
  8. 8. CommunicationÜ  « The truth, and nothing but the truth »Ü  High level heads-up in advance, then just intime detailÜ  Framework for control and completenessÜ  External references and benchmarksÜ  Approximately useful vs precisely irrelevantÜ  Link to the business. Always
  9. 9. Other potential QuestionsÜ  What direction should CEO/Board give to the CIO relative to te governanceand management of IT and why would they do it?Ü  What does the CEO expect from the CIO?Ü  What does the Board expect from the CIO?Ü  How and about what should CIOs communicate to CEO and Board?Ü  Should CIOs spend more time communicating with CEO/Board? Have youexperienced that after the fact the information from the CIO was notcomplete enough or not sufficiently to the point?Ü  Is there a role for the CEO as intermediary between CIO and Board?Ü  What can a CEO do to improve the communication to the Board about oftencomplex IT project, technology or IT risk issues?Ü  Experiences and examples of good communication and collaborationbetween CIO/CEO/Board
  10. 10. Main drivers of changeÜ  From physical to virtual IT deptsÜ  Cloud ‘everything’Ü  Less humansÜ  Cyberwarfare will militarise ITÜ  BYOD will be the normÜ  CIO’s expected to impact business directionÜ  Analytics will be key
  11. 11. CIOnet LuxembourgDecember 17th, 2012From a full local CIO to a Group head of IT systems&The CIO, a major actor of the company strategyChristophe Pierron – CIO Caceis Bank Luxembourg
  12. 12. 17.12.12 > 2> CIOnet LuxembourgAgenda1.  A few words about CACEIS and myself2.  IT department of CACEIS, and what has changed in 3 years3.  Some IT trends within CACEIS4.  My vision of the CIO roleand IT as a transformation force for the company
  13. 13. 3A Banking Group dedicated to Asset ServicingPROFILECACEIS is Europes premier depositary andfund administrator, and is focused exclusivelyon providing innovative asset servicingsolutions that generate a competitiveadvantage for its clients’ businessCACEIS has delivered strong and sustainablefinancials since its creation. As a result, its twoglobal shareholders grant us the independenceto define the most effective strategy to supportour clientsCACEIS is among the worlds mostexperienced asset servicing banks when itcomes to undertaking seamless operationalmigrations and successful insourcing ofcomplex functions with related staffCACEIS has the business agility to give clientsa first-starter advantage in todays changingregulatory environment. And by handlingclients’ non-core functions in an effective andefficient manner, it helps them focus ongenerating investor valueFocus StabilityExpertiseExperience
  14. 14. 4Key figuresPROFILE• CACEIS ranksamong the top tier ofasset servicingproviders.• CACEIS has a strongyet steady growthrate in terms ofassets, clients andgeographicalcoverage.Totalheadcount3,30050% at head office, 50% abroadGeographicalcoveragePresence in 10 countries80 markets coveredNo. 1 Depository Bankin Europe€650bnNo. 1 Fund Administratorin Europe€1.1trNo. 9 Custodianworldwide€2.3tr As at 31 December 2011
  15. 15. 5Backed by two of the European largest retail banking groupsSHAREHOLDERS•  No.1 retail banking group in France•  11,600 branches in Europe•  Asset Management, Insurance, AssetServicing, Corporate & InvestmentBanking, Private Banking, ConsumerFinance•  No.2 retail banking group in France•  8,000 branches in Europe•  Insurance, Corporate & InvestmentBanking, Asset Management, PrivateBanking, Private Equity and SpecialisedFinancial ServicesCrédit Agricole S.A.S&P Moodys FitchA/A-1 A2/Prime-1 A+/F1+BPCES&P Moodys FitchA/A-1 A2/Prime-1 A+/F1+€35.1 bn Net Banking Income€70.7 bn Shareholder Equity, Group Share10.2% Core Tier One Ratio€23.1 bn Net Banking Income€35.4 bn Shareholder Equity, Group Share9.1% Core Tier One RatioAs at 31 December 2011 As at 31 December 2011
  16. 16. 6An extensive product offer for international clientsCLIENTS AND PRODUCTS• Clients benefit fromour fully-integratedproduct offer andhigh service levelswhich arestandardised acrossour entities.Our Clients Our Products•  Asset managers•  Insurance Companies•  Pension Funds•  Broker-Dealers•  Banks•  Central Banks/Sovereign Funds•  Corporates•  Middle-Office Services•  Private Equity, Real Estate& Hedge Funds Services•  Fund Distribution Services•  Custody•  Capital Markets Services•  Depositary-Trustee•  Fund Administration•  Fund Structuring•  Fund Promotership•  Risk Analytics•  Clearing Services•  Cash Management•  Issuer Services•  Online Reporting
  17. 17. 17.12.12 > 7> CIOnet LuxembourgA few words about myself…Christophe PierronCIO of CACEIS Bank Luxembourg■ Christophe Pierron, 46 years old, is a software engineer (SupInfo -Paris)■ He starts his career in 1989 as a consultant within Arthur Andersen.n  In 1992, he joins the Société Générale Group where he will occupy 4positions : IT manager of Fimat Tokyo (now NewEdge), group projectmanager within Fimat Facilities Mgt (Chicago), CIO of Fimatex (nowBoursorama) and IT manager of ‘open’ developments for SGSS(Nantes).■ After a short but intense period with an ‘online banking’ startup, hejoins in 2001 Natexis Asset Management and became in 2002 theCIO. In 2005, he’s part of the of the creation of Natixis InvestorServicing (fund administration) as CIO.■ He joins Caceis early 2008 as CIO of CACEIS Fastnet Paris, andsince Sept. 2009 as CIO of Caceis Luxembourg.■ From 2011, the Quality / Efficiency is under the responsibility of theCIO.
  18. 18. 17.12.12 > 8> CIOnet LuxembourgCACEIS IT>  IT includes business analysts, developers, project managers, architects andapplication / functional help desk>  CACEIS has outsourced its IT production and infrastructure>  About 550 internal / external people, 240 in France and 180 in Luxembourg>  Around 75 000 man days of projects, about a third in LuxembourgAround 35 000 man days of maintenance / support / enhancement (third in Lux)>  2 big IT teams (Fr / Lu) that manage the Group information system>  Germany has a local IT (especially for Custody) due to the HVB takeover>  Luxembourg is in charge of the small entities (US, Canada, Belgium, Netherland,HK)
  19. 19. 17.12.12 > 9> CIOnet LuxembourgA lot of changes in 3 years…In 2009, the local CIO was in charge of the full IT of its country with few usage of other systems2010>  From a « MOA - MOE » organization to a « Business lines » organizationn  7 business lines (custody, fund administration, customers, …)n  Same organization in France, Luxembourg and Germany>  Appointment of Group heads of IT business lines (for coordination)2011>  Appointment of Group heads of Operational business linesn  Start of the cooperation for each ‘pair’2012>  Reinforcement of the IT Architecture team for the Group (functional & technical)2010-11-12-13>  More and more IT expertise centers centralized in France & Luxembourg>  More and more applications convergence to build progressively a Group information systemNow, the local CIO is in charge of a part of the Group information system, he’s a main actor ofthe Group strategy and represents the local entity (regulators, clients, …)
  20. 20. 17.12.12 > 10> CIOnet LuxembourgCurrent Group OrganizationBankingDealingFundadministrationInvestmentMgt ServicesClientsArchitecture& supportAdministrationPISMLuxembourgGermany FranceITInfrastructureProduction ITCash accounts, accounting,risks, payments, reconcilTreasury, forex, securitieslendingFund administrationMiddle Office, pricing, financialreporting, master data, OTCClient reporting and portal,billing, CRMFunctional and technicalarchitecture, devlopmentenvironment and toolsIT contracts, BudgetManagement of the productionand infrastructure providersWorkstation, network, mail,file server, …ProductionDistributionTransfer agent, fund executionCustodySecurities custody &depositary
  21. 21. 17.12.12 > 11> CIOnet LuxembourgSome IT trends within CACEIS>  2015 IT strategyn  Cost reduction (IT & Ops), but (try to) keep the same projects budgetn  Spend less on the core business (and streamline it), and spend more on newproducts / new clients / innovationn  A strategy per IT business line>  A new development framework – Case or ‘AGL’ (Palmyra from Vermeg)UML modeling – JAVA code generation – technology is mostly hiddenà  Caceis IT must be specialized on the business, not on the technologyà  Use of common components / master data – Standardize the developmentsà  Build progressively the application with the users>  Agile methodology strongly linked to the processà Collaborative & Interactive : associate from the beginning of the project the differentactors (IT, users, efficiency team)à Iterative & Agile : splits in phases and prototypesà Based on the process and business needs : start from the process, review / adaptthe process at the same time (if opportunity), and facilitate the change management.
  22. 22. 17.12.12 > 12> CIOnet LuxembourgMy vision of the CIO roleand IT as a transformation force for the company (1/2)>  More « IT fusion » with the business, than « IT alignement »and it must be true at all levels (CIO with ExCo, IT business line leader with Ops leader,…). The CIO has an important role to make it possible and working.>  The CIO must be part of the company strategy, in terms of product developmentand cost reduction.>  The CIO and IT must be closed to the business and final customers. IT must be abusiness thinker / innovator.>  IT must bring value through the technology, its knowledge of the Information Systemof the company and the business. IT must help the business to innovate and tomake it feasible.>  The CIO must not be afraid of SaaS solutions, and must play an important role tomanage the project, integrate the solution and have the right data available.>  The CIO must take risks in solutions and HR
  23. 23. 17.12.12 > 13> CIOnet LuxembourgMy vision of the CIO roleand IT as a transformation force for the company (2/2)>  The successful companies are agile : deliver quickly a new product (time to market),win a client, reduce costs quickly and the right ones,… IT is fully part of it and mustthen also be agile :n  Develop quickly a new application, and in most cases don’t look for 100% perfection(time to market is more important)n  Design applications to change / evolven  Innovate (in technology, process)n  Be flexible, and have resources work on the company prioritiesn  Deliver cheaper>  The IT department must also be efficient (not only the Ops)>  IT alone doesn’t generate enough cost saving. The Ops process must besimplified / reviewed, especially when it comes to a new application development orbig changes. Once again IT-Business fusion is a must, together we make the bestsavings and create the best products.
  24. 24. BUSINESSDRIVESITBob KNEIP – CEO KNEIP
  25. 25. With offices in Belgium, France, Germany,Luxembourg, Switzerland and the UK,KNEIP serves more than 420 global fundmanagement companies.We help our clients meet their regulatoryreporting obligations, while enabling them toprovide consistent and accurate fund dataand documents to their regulators, clientsand data vendors.
  26. 26. WHAT IS CHANGING?
  27. 27. ALWAYS ONBECOMESA STANDARD
  28. 28. THE BLACKBOXBECOMESTRANSPARENT
  29. 29. COMPLEXITYVERSUSSIMPLICITY
  30. 30. BIG DATALEADS TOENDLESS OPPORTUNITIES
  31. 31. END-USERSBECOMECREATORS
  32. 32. CUSTOMERSBECOMEPARTNERS
  33. 33. SERIAL INNOVATION&SHORT TIME TO MARKET
  34. 34. IT BUDGETIS ABOUTDOING MORE WITH LESS
  35. 35. TOMORROW’S CIOBusiness drivenCustomer orientedEnd-user focused
  36. 36. THANK YOU
  37. 37. Informatics  e-    The  changing  role  of  the  CIO  A  perspective  from  the  European  Institutions  CIONET  Luxembourg  17/12/2012  Francisco  GARCÍA  MORÁN  Director  General  of  Informatics  
  38. 38. Informatics  Agenda•  1. Your business/your sector, your company,your organisation•  2. About you, your career, your experience as CIO•  3. What happened the last couple of years at the CIOseat in your organisation ?•  4. Your cook book: the things and the thoughts thatwork... your recent experience and vision•  5. now, how do you see the CIO position evolve ?•  6. the Tomorrows CIO
  39. 39. Informatics  The European Union•  The result of a number of international Treatiessince the ’50s (end of World War II) (primarylegislation)•  A unique economic and political partnershipbetween 27 democratic European countriesaimed at:Creating an ever closer union among the peoples of Europe, withdecisions taken as closely as possible to the citizensAchieving peace, prosperity and freedom for the citizens in a fairerand safer worldThrough its competences in a large number of areas, exercisedthrough secondary legislation (which prevails over national law)
  40. 40. Informatics  EU institutions: achieving the aimsThe  Treaes  set  up  a  number  of  EU  Instuons,  Agencies  and  Other  Bodies  (EUIs):  A  “core”  of  7  Instuons  (European  Council/GSC,  European  Commission,  EP,  CoJ,  CoA,  ECB)  based  in  Brussels  /  Luxembourg  /  Strasbourg  /  Frankfurt  Various  layers  of  other  types  of  EUIs  (40-­‐80  depending  on  how  they  are  counted  !)  scaUered  throughout  the  27  Member  States  Supranaonal  character  of  the  EU:  the  European  Commission  is  the  “engine”  behind  European  integra5on.  
  41. 41. Informatics  Customs  Union  Compe55on    Monetary    Marine  ressources  Commercial  policy  Interna5onal  agreements  (AETR)    Human  Health  Industry  Culture  Tourism  Educa5on,  voca5onal  training,  youth  and  sport  Civil  protec5on  Administra5ve  coopera5on    internal  market    social    cohesion    agriculture  and  fisheries  (except  where  exclusive)    environment    consumer  protecon    transport    trans-­‐European  networks  energy  freedom,  security  and  jusce    public  health  research  and  technological  development    space  development  cooperaon    humanitarian  aid  SUPPORTACTIONSEXCLUSIVECOMPETENCESSHAREDCOMPETENCES
  42. 42. Informatics  The  2020  Challenges  The  2020  Challenges   Economical  recovery  Transport  efficiency  Jobs,  ……  Climate  change  Ageing  society  Energy  consumption  Inclusion  Empowering  patients  Security  Europe  2020  Innovation  Union  Youth  on  the  move  Digital  agenda  for  Europe  Resource  efficient  Europe  Industrial  policy  for  the  globalization  era  An  agenda  for  new  skills  &  jobs  European  Platform  against  poverty  
  43. 43. Informatics  • own  IT  team  &  organisation  • Responsible  for  the  delivery  of  their  IT  services  and  the  development  of  their  information  systems  they  need  • Varying  degrees  of  IT  maturity      • Shared  services  on  a  voluntary  basis  Each  Institution  • "Comité  Informatique  Interinstitutionnel"  ensures  global  coordination  on:  • ITC  infrastructure  • Common  IT  services  (e.g.  product  management,    IT  architecture,  Calls  for  Tenders  &  Contracts,  etc.)  • Information  Systems  Hosting  • Shared  Applications  CII  ICT  in  the  EU  •  Corporate  IT  services  •  IT  Strategy  and  Coherence  •  Development  of  Corporate  Information  Systems  (IS)  •  IT  Support  (2nd  level),  Corporate  Logistic  Services,  Corporate  Contracts  and  Budget  Management  •  Development  of  policy  oriented  IS  on  request  •  (approx.  450  officials  and  850  external  staff)  DIGIT  •  Management  of  local  IT  infrastructure  •  IT  User  Support  (1st  level)  (except  those  in  ITIC)  •  Development  of  Information  Systems  in  support  of  EU  operational  policies  •  (approximately  650  staff)  Local  Org.  ICT  @EC:  Hybrid  model  •  We  deliver  digital  services  to  enable  EU  policies  and  to  support  the  Commissions  internal  administration  DIGIT  
  44. 44. Informatics  Agenda•  1. Your business/your sector, your company,your organisation•  2. About you, your career, your experience asCIO•  3. What happened the last couple of years at the CIOseat in your organisation ?•  4. Your cook book: the things and the thoughts thatwork... your recent experience and vision•  5. now, how do you see the CIO position evolve ?•  6. the Tomorrows CIO
  45. 45. Informatics  
  46. 46. Informatics  Agenda•  1. Your business/your sector, your company,your organisation•  2. About you, your career, your experience asCIO•  3. What happened the last couple of years at theCIO seat in your organisation ?•  4. Your cook book: the things and the thoughts thatwork... your recent experience and vision•  5. now, how do you see the CIO position evolve ?•  6. the Tomorrows CIO
  47. 47. Informatics  and  2.  EC  –  IT  Rationalisation  1.  The  new  world  out  there…  New  IT  corporate  governance  structure  with  more  involvement  of  business  IT  Rationalisation  @EC  A  new  «  differentiated  IT  Strategy  »  taking  into  account  value,  risk  and  cost  è  economies  of  scale.  IT  rationalisation  (absorb,  integrate,  do  nothing,  best  practices)  17  domains  started    What  has  changed  in  the  last  years?  
  48. 48. Informatics  Informatics  2007    Complexity  Level  1:  Simple  website  Level  2:    On-­‐line  government  Level  3:  Integrated  government    E-­‐Commission  2001-­‐2005  2008  Level  3:  Integrated  government    2009  2010  3  2015  Lead  by  example  -­‐  EU  Policies  -­‐  Internal  Admin.  E-­‐Commission  2012-­‐2015  New  paradigm  E-­‐Commission  2006-­‐2010  New  strategy  Level  2:    On-­‐line  government  
  49. 49. Informatics    Action  plan  • Break  barriers  between  EU  PA  &converging  systems  • Strengthen  operational  effectiveness  and  efficiency    • Improve  transparency  and  accessibility  of  information  • Reduce  admin  burdens  &  streamline  processes  • Enhance  IT  Security  • Exploit  innovative  technologies  • Convergence  of  IT  systems    Goals  • reduce  costs  and  create  value  • effectiveness  &  efficiency  • business  continuity  • streamlining  administrative  processes  • improve  transparency  • eliminate  digital  barriers    Deliver  user-­‐centric  digital  services  for  EU  policies  and  COMs  internal  admin.  To  Europe  2020  Guiding  principles  User-­‐centricity    Effectiveness  and  efficiency  Simplification  and  proportionality  Security  and  privacy    Transparency  and  accessibility  Openness  Reusability  Governance  Focus  on  corporate  priorities  Monitor  key  investments  Transparency  and  visibility  Accountability  
  50. 50. Informatics  Agenda•  1. Your business/your sector, your company,your organisation•  2. About you, your career, your experience asCIO•  3. What happened the last couple of years at theCIO seat in your organisation ?•  4. Your cook book: the things and the thoughtsthat work... your recent experience and vision•  5. now, how do you see the CIO position evolve ?•  6. the Tomorrows CIO
  51. 51. Informatics  IF YOU ALWAYS DOWHAT YOU ALWAYS DID,YOU ALWAYS GETWHAT YOU ALWAYS GOT.IM POSSIBLE
  52. 52. Informatics  
  53. 53. Informatics  Agenda•  1. Your business/your sector, your company,your organisation•  2. About you, your career, your experience asCIO•  3. What happened the last couple of years at theCIO seat in your organisation ?•  4. Your cook book: the things and the thoughts thatwork... your recent experience and vision•  5. How do you see the CIO position evolve ?•  6. The Tomorrows CIO
  54. 54. Informatics  Un professionnel capable de gérer un boîte IT qui aune très bonne connaissance du business combinéavec une excellente expertise technique afin depouvoir jouer un rôle stratégique permettant àlorganisation de développer des solutions innovatricesfacilités par la technologie.
  55. 55. Informatics  e-    Thank  You  
  56. 56. EgonZehnderInternationalEgonZehnderInternationalEgonZehnderInternationalCIONET Luxembourg17 December 2012Pierre Cattoir
  57. 57. 2ObjectiveThis presentation shares our perspective based on ourclient work.Its real purpose is to serve as a thought starter toexchange ideas & points of views afterwards.
  58. 58. © 2012 Egon Zehnder International 3© 2011 Egon Zehnder International 3We have defined a set of core competencies to describepositions and appraise management (1/2)Core CompetenciesBusinessLeadershipThoughtLeadershipPeople &OrganisationLeadership•  Strategic Orientation•  Market Knowledge•  Results Orientation•  Customer Focus•  Collaboration & Influencing•  People Development•  Team Leadership•  Change Leadership
  59. 59. © 2012 Egon Zehnder International 4© 2011 Egon Zehnder International 4We have defined a set of core competencies to describepositions and appraise management (2/2)Logic of the Competency Scales1234567BasicmanagementcompetenceIncreasing stretch –building towardsworld classcompetenceTransformational,step change,visionarycompetenceLevel 3 Level 2 Level 1•  understand•  try•  interact•  willing•  make nomistakes•  respond•  apply•  meet•  collaborate•  doing•  take onownership•  be involved•  improve•  exceed•  inspire•  delegating•  take risks•  pro active
  60. 60. © 2012 Egon Zehnder International 5CIO rolesStaff Level C-levelFunctionalHead CIOTransformationCIOBusinessStrategist CIOFocus onIT operationsexcellenceFocus onpartnering withthe businessandprocesstransformationFocused onenterprisestrategyinnovation &differentiationIT StaffIT Managers
  61. 61. © 2012 Egon Zehnder International 6Staff Level C-levelFunctionalHead CIOTransformationCIOBusinessStrategist CIOEvolution of critical CIO competencies
  62. 62. © 2012 Egon Zehnder International 7StrategyOrientationChangeLeadershipCollaboration &InfluencingTeamLeadershipFunctionalCompetenceResultsOrientationMarketKnowledgeStaff Level C-levelFunctionalHead CIOTransformationCIOBusinessStrategist CIOEvolution of critical CIO competencies
  63. 63. 8HR people who have worked in line roles score higheron each individual leadership competency
  64. 64. © 2012 Egon Zehnder International 9The real science of executive search“Of course, all the successful people Ihave met are highly intelligent. Theyare also hard workers. They believe inpreparation. They relate very well toothers…But if you ask me to point to the mostimportant reason for their success, Ibelieve it is… … “Dr. Egon P.S. Zehnder

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