201305 CIO-transform it - transform the enterprise


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201305 CIO-transform it - transform the enterprise

  1. 1. T E C H D O S S I E RThree IT imperatives for a CIO-led enterprisetransformation in a dynamic world.Consolidate to Drive Enterprise Visibilityand StandardizationEnable Intuitive, Approachable, andBusiness-Friendly ITAutomate to Accelerate IT Responsivenessand InnovationTransformTransform ITthe Enterprise
  2. 2. — It’s the backbone of the modern enterprise, not just another functionwithin it. For businesses to continue to succeed in an increasingly technology-dependentworld, CIOs must assume a strategic leadership role and drive change throughoutthe enterprise. Driving business strategy is not an entirely new role, but it is an addedresponsibility to the traditional CIO job function. While many CIOs possess the skillsand ambition to impact business strategy, existing IT operational models and an aginginfrastructure are holding them back. CIOs who have been successful in bridging thedivide between IT and the business did it by first accelerating IT transformation.2T E C H D O S S I E R Transform IT, Transform the EnterpriseITToday’s successful CIOs transform IT by understandingthe challenges of the business and aligning resourcesand initiatives to corporate goals. They market IT as abusiness enabler and do everything they can to dispelprevious perceptions of IT as nothing but a help deskand a technology custodian. They inspire and motivateIT staff to participate in a service-oriented culture. Theyenable IT transformation by consolidating fragmentedIT systems, by leveraging new sourcing models likecloud, by automating anything possible, and by offeringbusiness people an intuitive self-service IT storefront toget what they need to do their job.During a recent CIO leadership forum, 24 CIOs and othersenior IT leaders discussed the role of the IT leader inthe modern enterprise. The group shared strategiesthey used to change IT and assert their organizationsas business leaders and innovators. This paper providesCIOs and IT leaders with insight into three IT imperativesthese IT executives used to reposition IT and transformthe enterprise:1 Drive enterprise visibility and standardization;2 Make IT more intuitive, approachable andbusiness-friendly;3 Accelerate IT responsiveness and innovation.
  3. 3. 3IT-First FocusMost businesses grow through geographic expansion anda myriad of acquisitions. While this may be good for thehealth of the business, it can be detrimental to CIOs thatdo not take a leadership role and act swiftly to ensureglobal standards. A lack of standards can result in multipleredundant and fragmented systems and inefficient processes.IT executives are not equipped with the information theyneed to prioritize initiatives and execute accurate decisions.Improving IT service performance and publishing the valueof IT to business peers is almost always elusive. And withoutchanging the IT operating model to enable the modernenterprise, IT executives are at risk of losing control of theirown destiny. “IT will transform around us, or with us,” saidone IT leader at a U.S. military organization.For example, a large soft drink manufacturer was copingwith more than ten IT service systems acquired over theyears. A lack of integration and the existence of multiplerepositories for IT assets created inefficiencies thatconsumed IT budget and resources. And, global processesthat differed across geographies and departments couldn’tbe improved; without consistency, what metrics could evenbe used to measure them?“Everyone had their own way of doing things,” said the globalIT director at this large beverage company. “We spent a lot oftime standardizing processes.”It is little wonder that a large percentage of IT executivesparticipating in the CIO leadership forum began their ITtransformation initiative by consolidating redundant ITservice systems to a single system of record. The commonobjective among the CIOs was to simplify the IT operatingmodel by creating a baseline for global process consistency.Their vision was to move all IT workflow-driven processes toa single platform. A global platform for IT was simply a“vision” of the participating CIOs, until the introduction ofcloud computing and a modern approach to automation.To effectively and more easily move to a single systemof record, the cloud makes tremendous sense. The cloud,after all, frees IT organizations from the dependency onlocal infrastructure and limitations and complexity of clientserver software. It can drive change from a central pointand also provide a means for CIOs to tear down regional ITfiefdoms and silos in favor of a single IT system of record.As elements intersect, IT is freed from the grunt work andcosts of infrastructure maintenance and endless integrationchores among legacy tools. CIOs and their teams becomeConsolidate to Drive Enterprise Visibilityand StandardizationIT executives participating in the CIOleadership forum began their IT transformationinitiative by consolidating redundant ITservice systems to a single system of record.T E C H D O S S I E R Transform IT, Transform the Enterprise
  4. 4. 4T E C H D O S S I E R Transform IT, Transform the Enterpriseliberated to centrally manage IT services and focus on thedesign points and good process for successful service deliveryacross the business.“In the manufacturing world an important metric is capitalasset utilization,” said Dave Smoley, Flextronics CIO. “Youwant to use what you bought as much as you can. We needthe same thought process with IT systems….One rule will beto look at legacy sprawl and figure out how to simplify it.”Automating and Standardizing —IT Taking the LeadService-oriented IT organizations can be a model for theirbusiness counterparts. CIOs that participate in businessstrategy are spearheading line-of-business initiatives withenterprise service automation in mind — leveraging provenIT service models and technology to help their businesscounterparts operate their own processes more efficiently.As Benjamin Nuttin, NYSE Euronext director of IT processautomation and virtualization, noted, “Everything in theenterprise is a workflow that you can model tools around.”Identifying commonalities in business and IT processes canmake the difference in elevating the strategic relevance ofIT. Extensible and modern workflow-driven technology andproven IT service models can easily translate into businessprocess automation. For example, Flextronics extends the useof IT service automation technology and combines it with anunderstanding of their customer’s business problems to getahead. “You have workflow and approval, and you can applythis to almost any function or process,” Smoley noted. “If youuse it in IT and it works, then other functions want to use it.The next step is to determine where else in the company canI then take a system I know is configurable and extensible.“Key Energy Services, for example, manages environmentalhealth and safety incidents in the field, among other things,with IT practices and automated workflow as a guidingblueprint for business service support. As a result, it is seeingimprovements in equipment uptime and crew productivity.Functions such as facilities, HR, and legal are often goodstarting points for helping business partners operate moreefficiently. For example, HR often is awash in manual andnot necessarily auditable processes for on-boarding andoff-boarding employees. At Brit Insurance, these time-consuming, disconnected HR processes were replaced byan integrated workflow and service automation system thatprovides a measurable, transparent and repeatable way tohandle these workflows. Brit Insurance now has appropriateintegrations between HR and IT so new employees have thetools and resources they need their first day on the job.“When IT morphs into workflow delivery experts, there’s a lotof value in that”, the global IT director at the large soft drinkscompany commented.“Everything in the enterpriseis a workflow that you canmodel tools around.”— BENJAMIN NUTTINDIRECTOR OF IT PROCESS AUTOMATIONAND VIRTUALIZATION, NYSE EURONEXT
  5. 5. 5IT Self-Service“Help desk” — the name is often associated with very negativeconnotations for most IT professionals. Today’s IT departmenthas moved well beyond providing break-fix, one-to-one phonesupport. Yet, it’s often how business people describe theirIT department. CIOs that participated in the leadershipforum unanimously agreed that it is the duty of IT to changehow their business peers perceive them by marketing ITas a leader in innovation. Many CIOs turned to employeeself-service as a first-step cure and a means to modernizethe highly visible service component of IT.Business people typically interact with IT when they need toorder something or get help. When the employee’s personalonline shopping or support experience is compared withtheir workplace experience, it’s no wonder why IT is viewedas lagging behind. Simplifying and modernizing the interfacebetween IT and the business at the point of service — a placeof high business and IT interaction — can help to close thisgap and immediately elevate the perception of IT.“Today we send people to an actual help desk, the oppositeof what we should be doing, and we’re going to question thatmodel,” said a manager of integrated service operations at aninsurance provider. “Those calls are going through the roofand the talk is that should be the last place you go.”Or, as Smoley noted, “Get IT [staff] out of the equation, andget people to help themselves.”Self-service not only caters to the expectations of today’semployee, it can also generate more efficient and controlledsupport processes. When implemented correctly, the self-service portal becomes the IT storefront — the interface thatcommunicates what IT offers to the business in terms theEnable Intuitive,Approachable, andBusiness-Friendly ITT E C H D O S S I E R Transform IT, Transform the Enterprise<FPO>CIOs turned to employee self-service as a first-step cure and ameans to modernize the highlyvisible service component of IT.
  6. 6. 6business understands. It creates a forcing function for IT toclearly define and articulate the services they deliver, whichspecific individuals are entitled to receive specific services,and how the requests will be processed. All this drives fasterrequest fulfillment and incident resolution, and more efficientuse of valuable IT resources.Driving Enterprise Self-ServiceAs IT tunes itself to become a service-oriented partner to thebusiness, the business will begin looking to IT for direction.By demonstrating to colleagues in other disciplines thebenefits of service automation, CIOs can further cementor even regain lost influence with their peers as businesspartners in their own right.“IT has been losing influence in the business,” said FrankSlootman, ServiceNow CEO. “Now we are in a situation whereIT is once again leading the business, saying we can rapidlyautomate processes at a very acceptable cost. That is thebiggest transformation to which we can envision or aspire.”And for many companies, the time is right to realize thoseaspirations. “We are so connected now to the business. Everypart of the business is responsible to improve service andincrease revenue and IT is enabling those organizations fromthe technology perspective,” said the VP of IT sourcing ata major retail chain. “We are tightly integrated with all thebusiness’ major objectives. There is much better alignmentthat really wasn’t there until last year.”IT can capitalize on this momentum by facilitating sharedservices through a consolidated service and request catalog.Employees quickly get what they need to do their jobs on theirown terms. Automated workflows back-ending the catalogenable the appropriate routing of requests or informationdelivery to the necessary service providers, whether theuser’s need is to obtain business cards, to resolve an invoicingproblem with finance, or request vacation days from HR.Shared services hit full stride when the business servicecatalog leverages other shared resources such as graphicalworkflows, notifications, work queues, and reporting.“Now we are in a situation where IT is onceagain leading the business, saying we canrapidly automate processes at a very acceptablecost. That is the biggest transformation towhich we can envision or aspire.”— FRANK SLOOTMANSERVICENOW CEO“We are so connected now tothe business. Every part ofthe business is responsible toimprove service and increaserevenue and IT is enablingthose organizations from thetechnology perspective.”— VP OF IT SOURCINGMAJOR RETAIL CHAINT E C H D O S S I E R Transform IT, Transform the Enterprise
  7. 7. 7Supply and demand is perhaps one of the most fundamentalconcepts in business. In the case of most IT organizations,IT is not positioned to keep up with business demand. Asbusiness demand mounts and resources become thin, IT hastwo options: Say, “No, get what you need from someone else,”or reprioritize project workload.Both have a severe negative impact on the strategic relevanceof IT. The “no” option results in the business sponsor goingaround IT to get what they need. In most cases, the businesssponsor isn’t buying a self-sustaining product — they arecommitting corporate resources to an initiative that contributesto enterprise architecture. And in more cases than not, IT willend up with responsibility for the technology at some point. Theother rebound effect of “no”, is that it can negatively influencehow the business will involve IT in the future — which also leadsto inefficiency, sprawl and loss of control.Reprioritizing project workload is a standard IT practiceand one that will likely never subside. However, the type ofprojects that get reprioritized can define the IT organization.Ideally, CIOs will be able to balance maintenance activitieswith strategic initiatives. To do this, IT leaders must accelerateIT transformation to simplify the infrastructure, identifyscalable fulfillment models, such as cloud, and drive anautomation-first mentality across the enterprise. The resultis a self-sustaining infrastructure and more time spent onstrategic initiatives.Modern IT depends upon automation for its existence, andIT organizations should look to automate services to reducetheir own management responsibilities and deliver capabilitiesin a lighter, faster, “zero-touch” way. Automation does thework faster, more consistently, and in an auditable and cost-efficient fashion. When IT workers embrace it, capturing theirAutomate to AccelerateIT Responsiveness andInnovationT E C H D O S S I E R Transform IT, Transform the EnterpriseIT organizations should lookto automate services toreduce their own managementresponsibilities and delivercapabilities in a lighter, faster,“zero-touch” way.
  8. 8. 8knowledge and scaling it for the benefit of all, they elevatethemselves out of the world of manual and mundane tasksand into one where they can help the organization pursuemore strategic endeavors.Consider the power of automation combined with the powerof self-service. The IT storefront becomes a front-end forworkflow automation. Employees can trigger systematicworkflow to provision and retire virtual instances, rundiagnostics on their own machines or submit requestsfor packaged goods and services.But it’s also important for IT leaders to understand thatservice automation doesn’t need to be limited to standard IToperational activities. In other words, free the mind to discoverthe possibilities of automation without limitation. FrankSlootman pushes the boundaries of the impact IT expertisecan have on other parts of the business. For example, hepoints to a sizable telecom company that uses ServiceNow tocreate line-of-business incident records. Once created, a setof automated workflows spring into action, including runningdiagnostics to automatically populate a record with usefulinformation, and perhaps resetting a device as a result.“So the incident from conception to close is micro-seconds,and never touched by a person,” he said.Driving fundamental IT change involves shifting the modelof IT from a maintenance function to one fully centeredaround service orientation. IT must re-tool to help theirbusiness partners transform operations and processes thatdeliver change and advantage. IT should embrace a vision ofcompleting work of every type in microseconds. Rather thanjust managing services and operations, IT needs to automatethem, with human intervention designated only for activitiesthat cannot yet be automated.When business processes are standardized and automated,and IT is consolidated across the global enterprise to create asingle system of record, IT departments are positioned to savetime, and CIOs position themselves to focus on improvingother aspects of their business with IT resources.Clearly, IT transformation that is defined by and carried outwith respect to the three IT imperatives of consolidation,self-service, and automation will position CIOs to lead theirorganizations to a brighter future.Parting ThoughtsRather than just managing services andoperations, IT needs to automate them,with human intervention designated onlyfor activities that cannot yet be automated.T E C H D O S S I E R Transform IT, Transform the Enterprise