What’s next.Essentials for Digital Success:Insights from business leaders who havetaken control of IT and created significantlymore business value.The 2013 IT-Enabled Leadership Report
2Table of ContentsIntroduction ................................................................................. 3Survey Results ............................................................................. 4Profiles of IT-Enabled Leaders ................................................. 7Yves Baguet, CIO of Clearstream ............................................... 8Markus Bentele, CIO and CKO of Rheinmetall AG ................. 9Olivier Clos, CIO of Ludendo ...................................................... 10Paul Danneels, CIO of VDAB ....................................................... 11Antoine de Kerviler, CIO of Corsair International .................... 12Bassim Haj, CIO of Yara International ........................................ 13Thomas Henkel, CIO of Amer Sports Corporation ................. 14Aloys Kregting, CIO of Royal DSM .............................................. 15Bernard Lhermitte, Head of IT of ING Luxembourg ............... 16Artur Loureiro, CIO of Sonae ....................................................... 17Andrew Marks, CIO of Tullow Oil Plc ......................................... 18Mike Mcgrail, Director of Organisational Developmentof Spil Games ......................................................................... 19José Olalla, CIO of BBVA .............................................................. 20Gerry Pennell, CIO of the London Organising Committeefor the Olympic and Paralympic Games .......................... 21Joaquín Reyes Vallejo, CIO of CESPA ........................................ 22Matteo Veneziani, CIO for Expo Milano 2015 Spa .................. 23Luc Verbist, CIO of De Persgroep ............................................... 24Marco Zanussi, CIO for Gruppo Mossi & Ghisolfi ................... 25Next Steps: Working Together To Ensure Europe HasSufficient IT-Enabled Leaders .................................................. 26MethodologyThe findings in this report are based on two prin-ciple sources of original data: survey data from89 Chief Information Officers (CIOs) from tenEuropean countries and in-depth interviews with18 of Europe’s CIOs.For the survey, the author developed the surveyquestions based on the seminal work of Weilland Worner (2009) studying how the roles ofCIOs have changed. The survey instrument wasdesigned in collaboration with Joe Peppard,Director of the Cranfield University, School ofManagement’s IT Leadership Programme. Thebrief survey asked participating CIOs to estimatewhat percentage of their time in 2012 they andtheir team spent across three general activities:Managing and innovating delivery of IT services;Managing and innovating business processes; andImproving and innovating products and servicesfor external customers. In addition, participantswere asked to estimate what percentage of thetime spent on each of the three areas of activityinvolved working with colleagues from the rest ofthe business. Another set of questions asked themto anticipate what percentage of their time theywould spend across the same categories threeyears from now – i.e., 2015. From April to May of2013, CIONET country offices solicited mem-bers to participate in the brief survey. Over 110member CIOs participated. The results were firstcleaned (e.g., incomplete surveys were removed)and then analyzed in detail.In addition to the survey data, the author con-ducted in-depth interviews with 18 CIOs. TheseCIOs were selected by CIONET Country Officesbased on the winners of national awards for CIOsof the Year. Building on their survey responses, theauthor asked interview participants for examplesof how they lead teams to achieve and sustain asignificant range of accomplishments. Anotherset of questions was around what key skills arenecessary to fulfill each type of activity effectivelyand how their organizations foster such skills.AcknowledgementsThis report was authored by Nils Olaya Fonstad,Associate Director of INSEAD eLab. This reportand the research it is based on would not havebeen possible without the generous support ofmany people. The author greatly acknowledgesthe CIOs who took the time to complete the sur-vey and especially the CIOs who took time fromtheir busy schedules to be interviewed and theircolleagues who helped review the profiles. Specialthanks to Hendrik Deckers, Amandine Gatelier andMieke Pauwels of CIONET, along with the manyleaders of CIONET’s Country Offices. The authoris grateful to have collaborated on the surveydesign with Joe Peppard, Director of the CranfieldUniversity, School of Management’s IT LeadershipProgramme. The author also is grateful for thesupport of his colleagues at INSEAD eLab, VirginieBongeot-Minet, Theodoros Evgeniou, Nina Laven,Martina Mettgenberg, Nurina Merdikawati, AungMyint Thein, and Eduardo Rodriguez Montemayoras well as for Brian Henry for help in editing theprofiles and Karel and his team at Echtgoed fordesigning the report.
3The business leaders featured in thisreport represent a new type of busi-ness leader – one who is increasinglyessential to any organization’s success,especially as more of their operations,service and products are digitized.IT-enabled leaders (alternatively referredto as e-leaders or digital leaders) rep-resent a direct challenge to mediocreoperations and customer experiences.Their accomplishments are a threat tothose who treat their ICT departmentas simply an administrative functionwhose costs must be controlled. Havingefficient and effective IT systems isfundamental to the success of anyorganization; however it is no longer acompetitive differentiator. Organizationsalso need to have and foster IT-enabledleaders who can take control of the sys-tems of technology, business processand data that organizations inevitablyaccumulate over time into digitizedplatforms, and transform them intodigitized platforms that enable them tooperate and innovate globally.For a third year in a row, the researchfindings suggest that any organizationthat does not strive to have at least oneof the three types of IT-enabled leaderswho are featured in this report is failingto pursue important opportunities tocreate value and be competitive. Toinspire organizations to make the mostof their IT-enabled leaders, we wantedto share 18 recent success stories ofhow IT-enabled leaders are helping theirorganizations grow and strengthen intoday’s challenging economy.The report consists of the key findingsfrom our analysis of two sources of datathat we collected: survey data fromCIOs and interviews with 18 of Europe’smost distinguished CIOs. The surveydata show the extent by which CIOs andtheir IT Groups are engaged in severalkey activities beyond simply manag-ing IT services. We identify three typesof IT-enabled leaders, based on howCIOs spend their time: Technology-driven; Business process driven; andClient-driven. The 18 profiles illustratehow each type of leader providesdistinct kinds of value to the organiza-tion. Technology-driven leaders ensurethe organization is spending more oninnovation and less on operations andmaintenance; Business process-drivenleaders help non-IT colleagues map,re-design and improve how things getdone in the organization; and Client-driven leaders help extend theirorganization’s capacity to innovate withcustomers.As organizations discover more ways touse IT to operate and create value, theywill rely more and more on all threekinds of IT-enabled leaders.We hope the findings from this reporthelp governments and organizationsfoster all three types of IT-enabledleaders and inspire students to becomethe IT-enabled leaders of the futurethat enable their organizations to growand strengthen in any challengingenvironment.Nils FonstadAssociate Director, INSEAD eLabHendrik DeckersManaging Director, CIONET3Introduction
4Survey ResultsCIOs and their IT departments arecreating an impressive range of businessvalue. This is reflected in business re-sults (e.g., a range of accomplishmentsare described in listed in the profiles ofCIOs following this section) as well as inhow they spend their time.Consistent with the past three years ofsurveying CIOs, and contrary to tradi-tional perceptions of what CIOs do, ourdata show that CIOs spend a significantpercentage of their time outside ofmanaging IT services.Most CIOs spend their time in the fol-lowing three general areas of activity,helping to create the following type ofbusiness value:Managing and innovating deliveryof IT services.Managing and innovating businessprocesses.Improving and innovating prod-ucts and services for externalcustomers.We have identified three types of CIOs,depending on what general areas ofactivities they spend a greater thanaverage time percentage of their timein. Please note that in the majority of thecases, CIOs spend some percentage oftheir time in all three activities. The keydistinction is in what activity they tendto focus on most, relative to their peers.Technology-driven+ < 50%CIOs and IT Groups that are pri-marily focused on ensuring thatIT infrastructure, applications, andrelated services are delivered acrossthe organization at the desired costand service levels.CIOs and IT Groups who spend agreater than average percentageof time managing and innovatingbusiness processes, such as sharedservices, global supply chain, andoperations.CIOs and IT Groups who spend agreater than average percentageof time improving and innovatingproducts and services for externalcustomers.BusinessProcess-driven+ >= 50%and- > 0ExternalClient-driven+ >= 50%and- <= 0ABBBBBBCCCCCC1 32
5Types of CIOsin 2013Types of IT Groupsin 201334+41+25+A 54+25+21+A11332234%54%25%21%25%41%The two tables to the left summarize keysurvey results. Analysis of survey datareveals that last year, the most commontype of CIO, representing 41 percentof participating CIOs, was business-process focused. Business-processfocused CIOs are leaders who spend asignificant percentage of their time withnon-IT colleagues helping them to map,re-design and improve how things getdone in the organization.The most common type of IT Group,representing just over half (54 per-cent) of the participating firms, wasTechnology-driven. Technology-drivenIT Groups spend a significant percent-age of their time ensuring the organiza-tion is spending more on innovation andless on operations and maintenance.These findings highlight the importancefor CIOs and their IT Groups to have avertical set of competences that repre-sent expertise or “deep knowledge” in aspecific area (e.g., science; engineering;IT; social sciences)Analysis of survey data also revealsthat on average, all three types of CIOsspend around 30 percent of their timeengaging with colleagues from the restof the business. The table below showsthat all three types of CIOs spendtime engaging with non-IT colleaguesacross all three general sets of activities.Nonetheless, CIOs of a specific typetend to spend a greater percentage ofthe total time spend with non-IT col-leagues engaged in their correspondingarea of activity. For example CIOs whoare focused on external customers – onaverage, most of their time spent withcolleagues from the rest of the businessis extending their organization’s capac-ity to innovate with external customers.These findings highlight the importancefor CIOs and their IT Groups to have ahorizontal set of “transversal compe-tences,” such as negotiation; criticalthinking; design and systems thinking,business and entrepreneurship. Thesecompetences are relevant across avariety of situations and enable themcollaborate effectively across multipleboundaries (e.g., organizational, geo-graphic, occupational, etc.).41+40+19+AABC140+36+24+AABC121+57+22+AABC233+51+16+AABC217+33+50+AABC327+36+37+AABC3Last year, average % of total time that each type of CIO spent working withnon-ICT colleagues working on one of three general areas of activity.Last year, average % of total time that each type of IT Group spent working withnon-ICT colleagues working on one of three general areas of activity.
6Over the next three years, the distribu-tion of different types of CIOs is ex-pected to change significantly, with adrop in the percentage of Technology-driven CIOs and an increase in thepercentage of Business-Process CIOsand External Client-driven CIOs.Types of CIOsLast year Last yearThree Years from now Three Years from nowTypes of IT Groups34+41+25+A8+52+40+A54+25+21+A18+41+41+A1 13 3228% 18%41% 41%41%51%The Strategic Roles ofIT-Enabled Leaders Are Dynamic123Technology-drivenBusiness Process-drivenExternal Client-driven
7Profiles of IT-Enabled LeadersIn this section, we present 18 profilesof CIOs who clearly illustrate how IT-enabled leaders are essential to the suc-cess of their organizations and how theyare creating value for their customersand partners. Featured in the followingprofiles is an impressive range of busi-ness value created by the CIOs, theirIT departments, and colleagues fromthe rest of their organizations. Theseprofiles highlight the importance of fos-tering IT-enabled leaders for Europeanorganizations to succeed and competein today’s global and digital economy.Yves BaguetCIO of Clearstream (Client-driven)Markus BenteleCIO and CKO of Rheinmetall AG (Business Process-driven)Olivier ClosCIO of Ludendo (Business Process-driven)Paul DanneelsCIO of VDAB (Client-driven)Antoine de KervilerCIO of Corsair International (Business Process-driven)Bassim HajCIO of Yara International (Business Process-driven)Thomas HenkelCIO of Amer Sports Corporation (Business Process-driven)Aloys KregtingCIO of Royal DSM N.V. (Business Process-driven)Bernard LhermitteHead of IT of ING Luxembourg (Technology-driven)Artur LoureiroCIO of Sonae (Technology-driven)Andrew MarksCIO of Tullow Oil plc (Business Process-driven)Mike McGrailDirector of Organisational Development of Spil Games (BusinessProcess-driven)José OlallaCIO of BBVA (Technology-driven)Gerry PennellCIO of the London Organising Committee for the Olympic and ParalympicGames (Client-driven)Joaquín Reyes VallejoCIO of CEPSA (Technology-driven)Matteo VenezianiCIO for Expo Milano 2015 spa (Client-driven)Luc VerbistCIO of De Persgroep (Technology-driven)Marco ZanussiCIO of Gruppo Mossi & Ghisolfi (M&G Group) (Business Process-driven)
8Yves BaguetCIO of ClearstreamExamples of IT-enabledleadership-in-actionSo integral is ICT to the success ofClearstream that about a third of the com-pany’s headcount are ICT employees. It is nowonder that Yves Baguet, who became CIOof Clearstream in 2000, has always made itone of his top priorities to eliminate distinc-tions between people who work in ICT andthose who work in other parts of the business.It’s a twofold mission, making sure ICT staffare business-savvy and business managers areICT-savvy. To make it happen, key employeesare rotated between ICT and non-ICT posi-tions throughout Clearstream.Baguet follows the same logic when engagingwith customers and as the official representa-tive of the Luxembourg Financial Communityon the Board of SWIFT, the financial mes-saging provider. “When I talk with externalcustomers or to SWIFT Board members, I donot want them to know whether I am fromthe ICT department or not based on what Idiscuss with them.”According to Baguet, the right ICT govern-ance model and a business-sensible enter-prise architecture will foster early and fre-quent engagement between ICT and the restof the business. In so doing, ICT can identifyand raise awareness of the systems of inter-dependencies between technology, businessprocesses, and data within the organization.“Rather than a bureaucratic exercise, ICT gov-ernance is an opportunity for ICT and the restof the business to engage and collaborate.”Baguet and his team have continued to createsignificant value for Clearstream Strong be-cause of this alignment between ICT and therest of the business. In 2012, as Clearstreamwas bringing its previous five-year strategicplan to an end, Baguet and his team workedwith the rest of the business to introduce newproducts in the investment funds servicesindustry, in custody and in collateral manage-ment. Given the financial crisis that plaguedthat period, clients were especially gratefulfor tools and solutions that improved riskmanagement support.Going back to the end of2011, Baguet and the rest ofClearstream’s Executive Team hadbegun to work on defining thecompany’s business strategy forits current 2013-2018 plan. Theirmain objective was to address asignificant change taking place throughoutthe financial services sector, the introduc-tion of what is known as TARGET2-Securities(T2S). Scheduled to go live by June 2015, T2Sis a major project overseen by the EuropeanCentral Bank to stimulate the integration ofthe securities post-trading infrastructure inEurope. Currently, the settlement of securitiestransactions in Europe takes place on multipleplatforms and is fragmented along nationalborders. As a result, settlement across coun-tries can be complicated and what’s morecostly. In contrast, T2S will provide a singleharmonized venue where virtually all heavilytraded securities circulating in Europe can besettled in central bank money.T2S is already imposing constraints that areeliminating some sources of revenue, increas-ing competition, and leading to new busi-ness models. Baguet and his team have beenworking closely with the rest of the businessto help Clearstream become the best collat-eral manager in a post-T2S world. Accordingto Baguet, this means offering custody ser-vices that support new strategies.To this end, one of Baguet’s first projects wasto introduce an open systems architecturethat enables the company to concentrateits collateral management services on aunique platform accessible to all customers,whatever their location. Overtime, this digital platform hasenabled Clearstream custom-ers to benefit from managingcollateral in a unified manner,without having to move theassets and therefore avoid thecosts associated with theseunnecessary movements.Clearstream’s ICT department has done sowell providing services internally that it nowprovides ICT services to other firms in thefinance-services sector. Clearstream ServicesIT, which is Clearstream’s 100 percent incor-porated IT subsidiary, builds and runs its com-mercial technologies and offers IT Hostingand Managing Services, as well as Software asa Service (SaaS) solutions, to financial institu-tions. Through more than 6,000 networkconnections in 26 countries, ClearstreamServices IT connects and runs the IT systemsfor its customers from all over the world andon a 24x7x365 basis.“As the CIO, I’m proud to say that we havealready received several awards for the newbusiness that we launched and that it is justthe start of an exciting adventure!”A selection of recent accomplishments-- ICT was integral in strengthening collateral managementas a strategic service offered by the company, transformingClearstream into the leading collateral manager within theindustry;-- ICT has been credited with improving Clearstream’s servicesthus enabling the firm to see revenue growth from newcustomers of €60 million and liquidity (securities managed bythe company) growth of 15 percent; and-- ICT has done such a remarkable job in improving internalservices that it now provides critical services externallythrough the company’s wholly-owned subsidiary ClearstreamServices IT.ClearstreamA market leader in the financial services industry, Clearstream is aEuropean supplier of post-trading services as well as investmentfunds services, issuance and asset services. It strives to serveas a fast, secure and trusted third-party to ensure that cash andsecurities are promptly and effectively delivered between tradingparties – no matter the complexity, speed and quantity of assetsinvolved. Clearstream has built strong relationships with around2,500 clients in over 110 countries. With a global networkextending across 50 markets, Clearstream settles hundreds ofthousands transactions every day and millions per month. InMarch 2013, for example, it processed 3.4 million internationalsettlement transactions.Generatingnew sources ofrevenue froma robust digitalplatform
9Markus BenteleCIO and CKO of Rheinmetall AGMarkus Bentele, who earned a Master’s degreein economics and studied organizationalpsychology, was named Rheinmetall’s ChiefKnowledge Officer in 2003. At that time, theICT Organization decided to focus its attentionon its core competences. These were businessprocess management and more broadly, onhelping the business create value with ICT. Atthe same time, it was decided to outsource allnon-core ICT delivery activities. In line with thissharper focus, Bentele was named CorporateChief Information Officer in 2005.Today, the ICT Organization employs a total of425 full-time employees. About 150 FTEs workfor the internal organization while the remain-ing 275 FTEs are external, and these employeesare located around the world, with just over aquarter of them based in Germany.Bentele and his team support all the ICT-related needs of 114 business units worldwide.About half of the internal IT Organizationconsists of Business Alignment Managers whoare focused on engaging with the rest of thebusiness on demand management and busi-ness process improvement. The other half ofthe internal organization is focused on moretechnical issues, such as enterprise architec-ture, translating business needs into technicalspecifications, and managing external serviceproviders. More than 50 percent of total ITbudget is spent on external service providerswho are responsible for a broad set of ICTservices.“We do not simply have the responsibilities ofa CIO, where we simply handle information;we have the responsibilities of a CIPO – aChief Information and Process Officer. As aresult, the IT Organization engages on a dailybasis with the rest of the business, using theirlanguage and exploring ways ICT can addressthe challenges that matter most to them.”Bentele and his ICT team have succeeded infostering greater collaboration and knowledgesharing across the various business units, suchas best practice sharing across project teams.He highlights three critical success factors:First, the ICT team introduced a large collec-tion of unified communication and collabora-tion tools all at once, rather than conductingpilot tests or introducing individual tools incre-mentally. For example, on one project, all ofthe tools were introduced at six in the morn-ing. In so doing, the staff were able to draw atwill on any of these tools, depending on theirinterest and comfort levels, during their work-ing day. In addition, the ICT team provided staffwith examples of how others were using tech-nologies from the suite of Enterprise 2.0 andhow they achieved their businessobjectives. The team did notrequire staff to use a particularsuite of technologies nor did theyprovide training on any particulartechnology. This approach ena-bled individuals to decide for themselves whattechnologies to use and how to use them.Second, no one participated in this exerciseanonymously. This lack of anonymity has beencredited for a problem-free introduction of thesuite of unified communication and collabora-tion tools.Third, employees were given time to learn forthemselves how to use the tools.The result has been a new “Workplace” withoutlimitations on time, place and heterogeneousICT-Infrastructure. It has fostered a greatercollaboration (Social Business) between differ-ent generations of employees, resulting in animportant cultural shift. Employees are moreengaged and motivated, while the use of col-laboration tools is helping to attract youngertalent.Said Bentele referring to the gains in inter-generational collaboration: “We did not set outto train employees to work across differentgenerations. We offered them the tools. Andrather than tell them that they must use aspecific tool, we engage with them, listen tothem describing their business challenges andoffer to help them. The challenge is not howto create bridges across generations. Rather,the challenge is how to help them to under-stand their business problems and how thetools may help them improve performance. Ifone employee is 30-years-old and another is60-years-old, both will collaborate when theyshare the same challenge.”Today more than half of allemployees at Rheinmetall useICT to collaborate as a result ofthis new approach. Moreover,most employees cannot imaginehow they could have improvedtheir productively without the role that ICT hasplayed in the organization.In fact, the results of having greater collabora-tion and knowledge-sharing tools have beenpositive. In addition to lower communicationand travel costs, the organization has seen anoticeable improvement in work performanceof individual contributors. Furthermore, theperformance and competitive positioning ofthe organization has dramatically improved,reflected in time reduction, higher throughput,better idea and innovation management, andfaster decision-making.A selection of recentaccomplishments-- Business Alignment Managers help business units im-prove business processes as well as manage and prioritizedemand;-- Consolidation of HR systems into a single shared service;and-- Increasing productivity and innovation with implementa-tion of a worldwide Collaboration and Knowledge sharingenvironment.Rheinmetall AGWith annual sales of around €4.7 billion in 2012, Rheinmetall AGis a successful player in two key markets: automotive compo-nents where it manufactures pistons, mechatronics and motorservices; and defense equipment where it produces combatsystems, air defense systems and wheeled vehicles. The com-pany has an extensive global presence: 72 percent of its salesare completed outside of Germany and almost half of its roughly21,700 employees are located outside of Germany. To operatecompetitively on such a global scale, Rheinmetall relies on itsICT Group to enable collaboration for business process excel-lence and innovation.Creating valueby enablingcollaboration
10Olivier ClosCIO of LudendoExamples of IT-enabledleadership-in-actionOlivier Clos joined Ludendo as its CIO In 2008,he didn’t realize how important it would be tomake sure every child got a toy on ChristmasDay. But his story is no different than any othera CIO must face. Between 2008 and 2011, Clossucceeded in introducing an organized andefficient ICT Group dedicated to La GrandeRécré. It was the first of the Group’s six brandsto have its own ICT department and wasintended to serve as a role model for the otherbrands. In late 2012, the executive committeedecided to spread this model to the six otherbrands of the Group. At the moment, the ICTGroup consists of 22 FTEs who work for allbrands within the Ludendo Group.To remove any boundaries between ICT andthe rest of the business, Clos has introducedseveral opportunities for regular and frequentengagements. For example, every threemonths Clos convenes an ICT Committeemeeting, where he and the rest of the seniormanagement team review all key projectsunderway. This is an important opportunity forthe team to develop a view of the project port-folio, rather than simply those projects mostrelevant to their function or unit. In addition,every two weeks, business partners who arepart of the ICT team meet with key users.A fundamental contribution of Clos andhis team has been to encourage the rest ofthe business to adopt new technologies toincrease productivity. Before Clos arrived, forexample, product managers within the pur-chasing department were forced to managetoy product selection and replenishment forstores without any automatic replenishmenttools. At that time, product managers knewof no technology that could do the trickyjob. To accomplish toy product selection andreplenishment, a team of 15 people checkedsales and inventory levels for every product,day-by-day, shop by shop. They then placedorders to suppliers for store replenishment.This process consumed the labor of the 15employees for seven hours a day from Januaryto October, and 11 hours a day in Novemberand December, the busiest months. Despitethis heroic effort, most product managers didnot have enough time to selectthe right toys effectively.In January 2012, Clos was askedto see what he could do aboutreplenishment. First, he broughttogether into a new singleentity the ICT department, theorganization department andsupply chain department. Forsix months, a team of peoplefrom the new department collaborated onre-designing and using ICT to improve thereplenishment process. The team divided theirwork into three parts: ICT managers developedthe software tool; supply chain managers re-designed the process and managed changeswith head office and the outlets; while theorganization managers took a coaching role ingetting the buy-in from top management.In the end, the 15 members of staff who hadbeen involved in inventory and replenishmentwere split into two new groups, each dedi-cated to a single task. Five became responsiblesolely for store replenishment and were movedto supply chain, while the remainder took re-sponsible solely for managing the toy productselection and stayed in purchasing.The results were significant. The number ofhours needed to replenish the stores was re-duced to two hours from January to October,and four hours in November and December,down from seven and 11, respectively. Inaddition, the number or person/day per yeardecreased from 1,380 to 140. Moreover, op-erational efficiencies were estimated to havesaved the Group €2 million.Most exciting, during the Christmas period,Ludendo avoided stock-outs, which hadplagued the Group for years.With sufficient inventories onhand, the Group’s retail outletswere able to satisfy the hugeincrease in seasonal demand andas a result saw an estimated in-crease in sales of €500,000 andgreater customer satisfaction.Going forward, Clos and histeam will continue to leadprojects that leverage ICT to create significantbusiness value – both within and across theGroup’s businesses. It has now become atradition to name each ICT project after a chil-dren’s movie or toy. This reflects the enthusi-asm of the team for collaborating with the restof the business to make a real difference.“The ICT Team works closely with each ofthe brands to help them operate better whilerespecting their distinct cultures. At the sametime, the ICT team is helping the brands learnfrom each other and develop a stronger senseof belonging to a group.” A selection of recentaccomplishments-- Introduced project management discipline across theorganization;-- Led a multi-disciplinary team to significantly improve stockinventory and replenishment processes in six months;-- The improvements were significant:-- €2 million in estimated cost savings and €500,000 inextra sales because key products were available duringpeak season; and-- Significantly increased employee productivity: The num-ber of person per day per year spent on these processesdecreased from 1,380 to 140.LudendoFounded in 1977 in Paris, France by the Grunberg family,Ludendo Group is a toy and gifts company administratingsix major brands in Europe. The main brand of Ludendo is LaGrande Récré. Others include (in alphabetic order) Diverdrak,Hamleys, Franz Carl Weber, RUEDELAFETE.COM and Starjouet.In 2012 Ludendo Group generated €600 million in turnover,employed 2500 people, and managed 450 sales outlets with a400 to 4500 M2 range capacity.Bridgingboundariesto help morecustomers getthe toys and giftsthey want.
11Paul DanneelsCIO of VDABExamples of IT-enabledleadership-in-actionPaul Danneels has been CIO for VDAB for thepast five years, during which time VDAB hastransformed itself and now serves nearly 10times the number of people than the organiza-tion previously served. VDAB went from being“a service provider for mandatorily-registeredjob seekers” of approximately 450,000 jobseekers a year, to becoming “a conductor, or-chestrating a community of voluntary partici-pants,” consisting of approximately four and ahalf million citizens of working age in Flanders.For 80 percent of the stakeholders that takeadvantage of its services, VDAB serves as aninformation hub, providing them with a set ofself-services where people can enter informa-tion, assess their competences, find promisingopportunities, and engage with firms seekingto hire talent. The IT Group has been criti-cal in developing these services. As Danneelsexplains to the Board, “fundamentally, VDAB isan information company that helps match jobseekers with vacancies.”In addition, the IT Group has introduced asecond, more innovative and experimentalstream using a Google platform. Needing busi-ness sponsorship as a prerequisite, all projectsmust also obtain backing from business groupsthat are willing to pilot them. Projects are thendeveloped in two-to-three weeks outside ofthe traditional process. This enables them torealize functional needs very quickly, howeverin a non-integrated manner.As Danneels explained, “we ask the integrationquestions later.” For example, the ICT Groupdeveloped an online calendar program in justtwo weeks. The ICT Group then found a busi-ness group to pilot the calendar applicationbefore rolling it out to the entire organization.For the moment, however, the ICT Group hasdecided not to integrate the calendar applica-tion into the VDAB case management plat-form, as the team is still learning what worksand what doesn’t work in the application. Ifapplications prove to be worthwhile, the ICTGroup will integrate them later on. Howeverthey do not want to lose the speed, flexibility,and learning from developingnon-integrated solutions.This dual approach enablesthe IT Group to meet urgentneeds of the business withrapidly developed applications.Once these rapid solutions aredeveloped and put into use, they provide thearchitecture team with important opportunitiesto learn how the IT Group can best support theevolving demands of the organization. Witheach newly developed function, the architec-ture group evaluates what is working and whatis not working. In 50 percent of the cases, theresults are presented to the Business Board todiscuss emerging trends and how to best sup-port them. They also discuss the pros and consof integrating a solution into the core digitalplatform of VDAB.Since the launch of the new strategy in 2010,VDAB has been developing applications thatrepresent significant changes to the way VDABoperated traditionally. Most involve importantbusiness changes that require the full supportof the Business Board to be fully realized. Forexample, the online scheduling function tookonly two weeks to develop, however to befully realized, required changing the processand people that were traditionally involved inscheduling appointments. When the Boardagrees to integrate a function, the integrationprocess follows the more traditional develop-ment process. Since the Google platform wasintroduced in early 2011, 2-3 new functionsare discussed at the Business Board, held everytwo months. This is a clear indication of thepace of change enabled by Danneels and histeam.Going forward, Danneels andhis colleagues are explor-ing ways ICT can open upthe public data and matchingservices to external stakehold-ers so that they can build ownservices for the labor market. In addition, theyare exploring the possibility of developing aseparate company in collaboration with theinterim sector, including placement agencies,as a public-private partnership, where trainingcontent is developed more appropriately tobetter help address skills gaps.1“ICT is helping the rest of the organization tothink of news ways of working and collabo-rating that they had not thought of before.”1. For a business case study developed by VlerickBusiness School of VDAB and its uses of ICT, pleasevisit http://stijnviaen1.wix.com/landing-vdab-caseA selection of recent accomplishments-- Replaced the traditional “call for an appointment” approachwith a process whereby VDAB consultants publish their freeslots on a website and citizens can view and book appoint-ments online. These become synchronized with the agen-das of the counselors, job seekers, and team leaders;-- Online job application coaching and document sharingfeatures enable job seekers to discuss and improve CVdocuments together with consultants in real-time;-- Launch of the organization’s MyCareer portal with a compe-tence based portfolio; and-- More job seekers have been hired and customer satisfac-tion ratings increased as a result of more efficient accessto VDAB consultants, better service, and better interactionswith customers.VDABSince 1989, VDAB (Vlaamse Dienst voor Arbeidsbemiddeling enBeroepsopleiding) has served as the public employment servicefor the Flemish region of Belgium, providing employment servic-es, vocational training and career guidance. In 2010, it launcheda significant new strategy to transform itself from “a serviceprovider for mandatorily-registered job seekers” to “a conductor,orchestrating a community of voluntary participants.” Since then,VDAB has become a key information hub in the labor market.Transformingoperations sothat more peoplefind better jobs
12Antoine de KervilerCIO of Corsair InternationalExamples of IT-enabledleadership-in-actionAntoine de Kerviler has been CIO of CorsairInternational for only two years, but in thattime he and his team of six have alreadyhelped create significant business value forthe company. The ICT group has been instru-mental to the process of transforming Corsairfrom a charter airline with a few business cli-ents into a scheduled carrier with thousandsof demanding customers. They also helpedintroduce a Customer Relations Managementsystem to integrate 17 very fragmented cus-tomer databases and into a single, secure andconsistent customer experience.Until the end of 2010, Corsair was operat-ing 17 very fragmented customer databases.Although there were data about the samecustomer in more than one database, therewas no common link to identify the samecustomer across different databases. As aresult, depending on their point of contact,Corsair’s customers had access to differentand not necessarily consistent information.Finally, a data protection audit conductedby French government revealed there wereas many as 30 areas where Corsair was notcomplying with privacy laws. Corsair had nochoice but to fix the uncoordinated data thatit had been accumulating.The ICT group, in collaboration with theSales & Marketing group, selected Salesforceas Corsair’s CRM platform. Within a yearafter the audit, Corsair had migrated all of itsdata and 150,000 customer accounts ontoSalesforce. By August 2012, all 17 data sourceswere cleaned, de-duplicated and migratedenabling Corsair to develop a comprehensive360-degree view of its customer. Today, allof Corsair’s stations (French Antilles, WesternAfrica, Indian Ocean) have the CRM system, aswell as an outsourced call center. In mid-Feb-ruary 2013, the CRM platform was extendedto all sales associates, enabling them to useiPads during sales calls and access data onthe travel agents or corporate customers theyare with.The e-Papyrus project is another example ofhow De Kerviler and his teamworked with the rest of thebusiness to create a digitizedplatform from which keyoperations could be performedmore effectively and efficiently.e-Papyrus improved the processof reporting incidents related toaircraft operations and main-tenance (“on-board reporting”)across a variety of stakeholder groups.Sylvain Bosc, Corsair’s Chief CommercialOfficer, presented the issue to De Kervilerduring one of the first meetings. “Our report-ing system is 100 percent paper based. Ittakes us a minimum of three weeks beforeany issue can be taken into account by ourquality management team. This is intolerablefor a small company like us,” CCO Bosc said.De Kerviler and his team quickly went to workdeveloping a solution to digitize the reportingprocess. Working closely with end-users, theyre-defined the corresponding operationalprocess and equipped end users with com-fortable and useful devices. Adopting agilemethods, they started with a very small devel-opment team and three cabin crew cham-pions. A few weeks in the process, they hadtheir first very basic application. Programmersflew on many occasions to test the applica-tion in real life, and regularly adapted thesolutions as they received feedback from thecabin crew.Development started in October 2011. In May2012, the paper report was decommissioned.Now, an event lands in the case managementtool in 1.8 days on average (down from morethan 20 days) and is closedwithin 10 days (down fromseveral months). Said CCO Bosc:“Now, with our e-Papyrus iPadbased system, it takes us literallyminutes for a reported prob-lem to be dealt with. Issues arebetter identified and normalizedthan on the paper based systemand our overall quality level hassoared. Providers know that we are monitor-ing them in real time. Cabin crew pride andconfidence in their company has risen, andclient satisfaction has risen accordingly.”In September 2012, the reporting systemwas extended to pilots to report on servicesdelivered to the aircraft, such as towing andfuel deliveries. The company no longer usesor processes paper reports. Several airlineshave approached Corsair to enquire aboutbuying e-Papyrus as a software package or asa service.“Our best and most motivated sales people areour cabin crew who take every opportunity todemonstrate the tool that we helped developto their colleagues from other airlines.”A selection of recentaccomplishments-- Has been essential to the company’s successful transforma-tion from a charter airline into a scheduled carrier;-- Introduced a Customer Relations Management system tointegrate 17 traditionally disparate customer databases into asecure and consistent customer experience; and-- Ensured that Corsair is compliant with regulations regardingdata security.Corsair InternationalCorsair International is currently the second largest airline basedin France and operates international scheduled and charter ser-vices to 15 destinations in the French overseas territories, Africaand North America. Each year, almost 1,300,000 passengerstravel across the world on Corsair flights. In 2013, the companycompleted an ambitious program to renew its fleet and services.This included reconfiguring aircraft with a new entertainmentsystem and introducing and enhanced loyalty scheme and newe-services.Enabling thecompany andits customersto soar to newheights.
13Bassim HajCIO of Yara InternationalExamples of IT-enabledleadership-in-actionWhen Bassim Haj became CIO of Yara, the ICTdepartment did not have a good reputationwith the rest of the business. The senior man-agement team had become so frustrated withICT that they wanted to hand it off completelyto an external service provider. In a periodof three years, Haj and his team transformedthe ICT department into a strategic asset forthe company which is now responsible forimproving an increasing range of operationalprocesses.It all started in March 2008, when a new pro-cess-oriented CEO joined Yara. Two years later,the CEO hired Haj as the firm’s CIO, and heimmediately launched a full assessment of theIT area to ensure it was aligned with the com-pany’s strategic vision. The initiative involvedkey stakeholders around the Yara organization,with a core team consisting of selected talentfrom the ICT organization. One of his prioritieswas to mobilize the right people to ensure acommon understanding of the group’s chal-lenges and the need for change. Haj recalled,“my experience from turnaround projects wasthat people-aspects, such as mindset and mo-tivation, must be given careful attention fromthe start if we want to succeed.”In parallel, Haj spent his first year improvingICT’s service levels, primarily by renegotiatingcontracts with external service providers andmoving from a single external service providerto several providers. Changes such as thesesaved Yara almost €19 million per year in ICTcosts.According to Haj, the real value of ICT is fromthe data it generates. “We are a chemicalcompany. IT is not necessarily our product.Most of the industry spends 1.4 percentof their revenue on IT. The emphasis is oninformation: order fulfillment; logistics man-agement; insights on markets, products, andcustomers; getting better things faster to ourcustomers; and now, developing new servicesfor our farmers.”According to Haj, external providers canprovide better ICT services than Yara in mostareas. Yara’s internal ICT group,however, can provide signifi-cant value in business processmanagement and improve-ment, including putting the rightprocesses in place, setting theright key performance indica-tors, and establishing the rightgovernance. Together, these lead to betterinformation and information management.In addition, employees have better access toinformation and have better decision-makingcapabilities, resulting in more reliable com-mitments to deliveries.A key process that Haj and his team helpedimprove was a procurement process called“Purchase-to-Pay”. The process currentlyinvolves around €9 billion worth of procure-ments annually. In a short period of less thannine months, the equivalent of 1.5 FTEs fromIT worked with internal procurement special-ists. The key role of IT was to help createvisibility across Yara’s multiple business units,map interdependencies, understand howdifferent units operate and identify and pursuethe most strategic synergies. With a greaterand more accurate view across the procure-ment landscape, Yara’s procurement teamimproved purchases, reduced the number ofsuppliers, negotiated better rates, and prior-itized their time on the categories that madethe most sense.Now that ICT services and key businessprocesses are under greater control, Haj andhis team have turned their attention to work-ing with the rest of business on improvingthe post-merger integrationprocess. They are developinga “play-book” with the goal ofreducing interim integrationmeasures from six months tofour weeks. Such capabilitiesare critical to the future ofYara. The firm announced itwill grow the business 50 percent – mostlythrough acquisitions and building new plants.They are now getting ready to integratethe most recent acquisition, a Brazilian firmconsisting of 1,200 employees in sales anddistribution. Their “playbook” is intended tohelp them integrate this acquisition and oth-ers like it more effectively and efficiently.“IT is in a perfect position to provide signifi-cant business value by helping the organi-zation develop stronger business processcapabilities.”A selection of recent accomplishments-- Improved ICT service levels and saved almost €19 million peryear in IT costs by renegotiating contracts with external ser-vice provider and expanding sourcing to multiple providers.-- Increased efficiency and effectiveness of key business pro-cess such as:-- Plant Maintenance Process – reduced working capital onspare parts and improved maintenance;-- Order to Cash – reduced back office function by 20percent, reduced payment terms and improved accountreceivables; and-- Purchase To Pay – reduced costs by 10 percent andimproved category management.-- Enhanced Post Merger Integrations by introducing greaterprocess discipline and helping to develop a general post-merger integration playbook.Yara InternationalYara International is a global diversified agro-chemical companyheadquartered in Norway, employing more than 8,000 people in50 countries. Ranked #1 in the world for fertilizer, Yara offersone of the most comprehensive ranges of fertilizers in theindustry, starting from single nutrient fertilizers up to complexcompounds and micro-nutrients for feeding plants. The majorityof its products are commodities sold into highly fragmentedmarket, whereby Yara only has seven percent of the marketshare.Taking controlof ICT toimprove businessprocesses
14Thomas HenkelCIO of Amer Sports CorporationExamples of IT-enabledleadership-in-actionThomas Henkel, who has been the CIO ofAmer Sport since about 2006, leads a globallydistributed team of just over 200 ICT staff toachieve cost savings and generate revenue byharmonizing key business processes and data.The focus on solutions is evident even in thename of his team. As Henkel explains, “Ratherthan ICT, where T refers to Technology, weare ICS, where S refers to Solutions.” Althoughthe group’s headquarters is in Helsinki, theICS organization, which is responsible forall information and communications solu-tions, is globally distributed, with teams inVancouver, Seattle, Chicago, Annecy, Munichand Shanghai.Henkel became CIO of Amer Sports at a timewhen the group was integrating a strategicacquisition, Salomon and the family of brandsincluding Mavic, Bonfire, Arc’teryx, and Cliché.The acquisition expanded Amer Sports busi-nesses into the outdoor market and openedcompletely new market areas of bicyclecomponents and technical clothing.As part of the post-acquisition integration, theexecutive team decided to launch a massivebusiness process and data standardization andintegration project, called Global ONE, acrossfive divisions in 27 countries. The project suc-ceeded in harmonizing four core processes –global planning, sourcing, order-to-cash andfinancial – as well as all global master data oncustomers, products, vendors and global keyperformance indicators.In June 2012, three businesses in the USAwere migrated from their ICS systems to aglobally shared Global ONE process plat-form without any disruption to service. Theproject was delivered on time, within scope,and below cost. As a result of this platformchange, the delivery performance towardstheir customers increased by 12 percent andoperational costs decreased by 19 percent.These performance gains were mainly drivenby the capability to deliver directly to custom-ers while bypassing distribution centers. Inaddition, a much higher orderautomation rate was achievedbecause of the usage of salesforce automation, e-commerceself-service and EDI.Overall, by transforming, stand-ardizing and integrating keytechnical, business process anddata aspects of the digital platform, Henkeland the ICS team improved operational per-formance significantly. Business-to-business(B2B) e-commerce grew from two brands infour countries generating €3 million in 2010,to two brands in 12 countries generating €29million in 2012. The number of orders placedautomatically, such as mobile orders, EDI, andB2B e-commerce increased from 27 percentof all orders in 2010, to 76 percent of allorders in 2012. In addition, the same numberof people handled an increase of 290 percentof transactions. A single global technologysolution was able to handle a growth of retailstores from 18 stores in 2010, to 61 stores in2012. Finally, in terms of customer deliveryperformance, on-time delivery increased from61 percent in 2010, to 88 percent in 2012, andin-full delivery from 84 percent in 2010, to 92percent in 2012.One of the benefits of having standardizedglobal key performance indicators was thatthe ICS team could clearly demonstrate thevalue they help create in terms of businessprocess performance. These improvementshave not only helped Amer Sports save ap-proximately 14 percent in operational costs,but have also helped the company to improvecustomer service, which resulted in highercustomer satisfaction and increased sales.According to Henkel, a critical success factorfor sustaining and building onthese improvements is that theICS team has acquired a strongand enthusiastic understand-ing of the rest of the business.“They are incredibly eager tolearn how the business oper-ates. In some business areas,they understand the processesbetter than some of their counter-parts.” Thisis often the result of having taken extrovertedpeople who started in another part of thebusiness, bringing them into the ICS group,and then developing their ICT expertise. As aresult, members of the ICS team are regularlyinvited to key strategic meetings. Henkelalso suspects it also helps that most of themembers of the ICS team, now consisting ofabout 220 FTEs distributed around the globe,are active in a variety of sports.“Rather than ICT, where T refers to‘Technology,’ we are ICS, where S refers to‘Solutions.’A selection of recentaccomplishments-- Harmonized four core processes (global planning, sourc-ing, order-to-cash and financial), as well as all global masterdata on customers, products, vendors and global key per-formance indicators across five divisions in 27 countries;-- Integrated ICT infrastructure and applications of a smallacquisition in less than four months; and-- Recent accomplishments credited with saving €12 million inoperational costs and generating €32 million in revenue.Amer Sports CorporationAmer Sports is one of the leading sporting goods companiesin the world. It offers technically-advanced sports equipment,footwear, apparel and accessories and includes such brands asSalomon, Wilson, Atomic, and Precor. Through a sales networkcovering 33 countries, Amer Sports sells its products to tradecustomers, such as sporting goods chains, specialty retailers,and fitness clubs, and also directly to consumers through brandstores, factory outlets, and online.Focusing onsolutions ratherthan simplytechnology.
15Aloys KregtingCIO of Royal DSMExamples of IT-enabledleadership-in-actionDSM strives to ensure that business groupsrespond efficiently and quickly to marketchanges. To support agility, DSM has devel-oped a growing set of shared services calledDSM Business Services (DBS), which are underthe responsibility of Aloys Kregting, whohas been the CIO of DSM for more than fiveyears. Kregting is head of the ICT depart-ment consisting of 425 internal FTEs and 475external FTEs, and he also serves as the headof Financial Shared Services (500 FTEs), HRShared Services (50 FTEs) and a new sharedservice called Master Data ManagementShared Services (10 FTEs).Kregting developed a one-page frameworkcalled the Information Pyramid, which showshow investments in ICT can be related tobroader organizational aspects, such as thecompany’s governance, people and organiza-tion, reporting and master data, and businessprocesses. By relating these aspects in aone-page framework, he and his team guidediscussions on whether a business process,such as procurement, is sufficiently commonacross business units so that the process canbecome a shared service, or whether it shouldremain specific to a business unit.Kregting and his team have also broadeneddiscussions about the role of ICT. Previously,ICT costs were considered in isolation ofother costs, but now they have turneddiscussions of ICT around operational costs.Using the framework, Kregting explains: “ICTcosts account for less than 2 percent of totalexpenses. I am OK with discussing how to op-timize that 2 percent, but I also want to helpoptimize the other 98 percent. We can gainmore taking a 100 percent approach than a 2percent approach”The one-page framework also clarifies whois accountable for the differ-ent kinds of processes. GlobalProcess Owners are promotingglobal synergies and responsiblefor shared services, whereasFunctional Leader Teams areresponsible for specific pro-cesses within business units.Every quarter, Global Processes Owners meetwith Functional Leader Teams. Kregting andhis team use the framework to “listen to theappetite of a business unit” for converting abusiness process that they control into onethat is a shared service.When a business unit complains to Kregtingthat ICT costs are too expensive, he firstagrees with the unit but then, using theframework, explains to the unit how the ICTcosts relate to the business processes andwhy they are so expensive. Kregting strivesto foster a discussion with the business unitwhere together they explore different scenari-os, such as what would happen to costs if anexpensive process became a shared service.Using the framework, Kregting and his teamdemonstrated to the various finance functionswithin the business units that having a sharedservice would reduce operational costs whileimproving services. Kregting convinced theunits to “hand over their keys” and have himbecome responsible for Financial SharedServices. Now, a Global Process Owner isresponsible for defining what services willbe shared and at what service levels; whileKregting and his team are responsible for howthose services are provisioned at the request-ed service levels. By taking responsibilities ofseveral shared services, Kregtingand his team have discov-ered several cross-functionalsynergies.Together with HR and theCommunications team, Kregtinghas created an environmentwhere cultural differences among employeescan be harnessed to drive the knowledgemanagement forward. “We ask everybody totake cultural awareness training sessions, sothat people learn to appreciate their differ-ences. If you can add the strengths of oneculture to the weaknesses of another culture,then together we can become stronger.”Kregting is confident that his collaborativeapproach will result in the ICT departmentbecoming better at sharing knowledge. SaidKregting, “DSM is growing, changing and thismeans more data production and informationproduction. By anticipating organizationalchange and growth, the ICT department willbe able to sustain DSM’s future growth.”“For ICT to create value, you need daringleadership. You need IT leaders who cancome up with services that the businessgroups would not even ask for.”A selection of recentaccomplishments-- Reduced operational costs by putting into practice aframework he developed to ensure the business aligned ICTsystems with the company’s governance, people and organ-ization, reporting and master data, and business processes;-- Expanded shared services from ICT to Financial Services, HRand Master Data Management; and-- Transformed the way work is accomplished through aprogram titled New Way of Working. Benefits ranged frombetter connected employees, to a travel reduction of 35percent, floor space reduction of 30 percent, fewer CO2emissions, and flexible working hours.Royal DSMRoyal DSM (DSM) is a leading life sciences and materials sciencescompany that is active in health, nutrition and materials. DSMhas a strong global market position, with about 38 percent of itstotal sales of €9.1 billion coming from high growth economies.DSM has a decentralized organizational structure built aroundfour divisions that are empowered to carry out all business func-tions: Nutrition, Pharma, Performance Materials and PolymerIntermediates. DSM’s ICT department (DICT) is a service sharedacross the business areas.Helping businessunits focus onwhat they dobest.
16Bernard LhermitteHead of IT of ING LuxembourgExamples of IT-enabledleadership-in-actionBernard Lhermitte, CIO of ING Luxembourgfor the past five years, credits his team’sengagement and integration with the rest ofthe business as a key reason why the com-pany has created so much value from ICT.As a result of a deep understanding of thecompany’s needs and strategy, his team canpropose solutions that meet immediate busi-ness needs as well as longer-term strategicobjectives. The key building blocks of the ITstrategy are Customer Centricity, OperationalExcellence and Top Employer.To sustain strong alignment between ICTand the rest of the business, Lhermitte andhis team follow a governance model thatencourages early engagement and strongcooperation among key stakeholder groupsthroughout critical stages of the process ofbuilding solutions to business needs – fromdefining priorities, to managing portfolios ofproject, to reviewing projects after they havebeen implemented. In addition, as a custodianof the company’s innovations, the ICT depart-ment relies on the ICT governance modelto promote innovation with discipline andavoid as early as possible investing in “faussesbonnes idees” (false good ideas).To facilitate discussions between ICT andother departments, Lhermitte has built an ICTdepartment that fosters talent with strongbusiness competences and domain exper-tise. Because of the high reliance of financialservices on ICT applications and systems,some members of the ICT team are more ca-pable of describing and formalizing businessprocesses than employees within the businessitself. Lhermitte tends to hire people withstrong ICT expertise even though his goalis to ensure that most of his team membershave strong business function competences.He develops their functional expertise usinga variety of methods, such as asking newlyhired ICT employees to complete instructor-led business courses, to join project teamswhich have experienced professionals sothat mentoring can take place, and to spendtime working in different areas of the bank tobroaden experience. This leadership and de-velopment approach helps teammembers develop a global viewof how technology, businessprocesses and data from differ-ent units within the companyrelate to each other.Lhermitte and his ICT team havedeveloped a strong track recordin following key areas: ICTstrategy, business and ICT align-ment, budget optimization, project portfoliocoordination, project governance and peoplemanagement. Although part of a larger globalorganization, the ICT department enjoys alarge degree of autonomy, combined withopportunities of synergy with other entities inthe ING Group. For example, they developeda suite of mobile banking applications thatwas coordinated with another unit within ING,enabling greater economies of scale.In pursuit of enhancing the customer experi-ence, the ICT department has developedmulti-channel solutions that enable custom-ers to access services from multiple devices,such as iPads, smartphones and computers.As the ICT department increasingly developsservices for the bank’s customers (rather thanfor simply for the bank itself), the pressure hasincreased to have zero errors in their services.When users are customers, they can provideimmediate and publically available feedbackto the app stores and social networks. In addi-tion, the ICT department uses metrics such as“first-time-right” to help increase the qualityof solutions available to customers. ICT staffalso participate in on-the-job training, includ-ing spending time in the branches, to developcommercial and communication sensibilities.The efforts of Lhermitte andhis ICT department have notonly paid off for the bank buthave also received recogni-tion from his peers. Last year,Lhermitte was awarded “CIO ofthe Year”, while his team wonthe prestigious “ICT Departmentof the Year” award at the 2012Luxembourg ICT Awards. Goingforward, Lhermitte and histeam will continue to be key stakeholders inthe business transformation process of INGLuxembourg.“IT is all about people, I am proud of the highlevel of engagement of my team. This engage-ment is visible on the ground, day to day, andthe results are reflected the global annual INGengagement survey: the ING Luxembourg ITteam has reached one of the highest levels ofany group in the global organization.”A selection of recentaccomplishments-- Created a digitized platform (Services Oriented Architecture)that improved speed and scalability of new services forexternal customers and enabled customers to access newservices from multiple channels;-- Developed a suite of mobile banking applications in amanner that was coordinated with another unit within ING,enabling greater economies of scale; and-- Introduced white labeled wealth management servicesto external customers and ING Businesses in emergingmarkets.ING LuxembourgING Luxembourg is the result of a merger of two banks in 2003.The parent company ING (Internationale Nederlanden Group)is located in the Netherlands and is an international financialservices group. ING Luxembourg has focused its activities onthree areas: the local (“domestic”) banking network, privatebanking and corporate banking. In 2011, it employed a staff of800 people, making it the 7th largest financial-sector employerin the Grand Duchy.Enhancingthe customerexperienceby fostering abusiness-savvyICT department
17Artur LoureiroCIO of SonaeExamples of IT-enabledleadership-in-actionArtur Loureiro has been a member of theSonae top executive team for more than20 years, including 12 years in which heserved as CIO and executive board memberof Optimus, the group’s telecommunica-tions company. Throughout his long career,Loureiro has been under continuous pressureto do more things with less resources. Thesepressures have been especially pronouncedever since Loureiro became CIO of the retaildivision two years ago, during which timePortugal has entered a period of tough aus-terity measures.Given the diversity of business units withinretail, each with different budgets and timingneeds, managing priorities across all of themrequires a global and strategic view. Loureirohas developed a rigorous approach to humanresource management and financial account-ing while undertaking a cost / benefit analysisof all the retail units, many of which areexpanding globally. Against a background ofslow domestic growth, the rapid internationalexpansion has introduced additional chal-lenges to portfolio management.Loureiro and his ICT team have workedclosely with the rest of the business toenhance data mobility across all the retailunits to enable a broad set of operations andservices. Today’s store managers can accesspoint of sales (POS) data by category and bystore, data which is updated every two hoursand viewable from smartphones, tablets andcomputers. At the same time, customers arebeing offered access to a greater variety ofself-checkout services. Meanwhile the POSdata is completely integrated with the ICTlogistics system so that inventory manage-ment and replenishment are fully automated.By focusing on supply chain management,Loureiro has improved employee productiv-ity and reduced levels of inventory stock heldin stores. In so doing, Loureiro has freed upmore retail space for sellingitems rather than storing them.Loureiro has also realized moresynergies throughout the supplychain while improving logisticsfor the entire range of retailstores. In short, he has benefitedfrom greater economies ofscale and scope in terms of hisnegotiations with suppliers across the group’straditionally independently supplied retailbusiness units.Loureiro credits the ICT governance model,including his prioritization process, as criticalsuccess factors for thriving amid Portugal’scurrent bout of austerity. The governancemodel ensures that the business units shareresponsibility for getting value from ICTinvestments. The senior governance commit-tee consists of Loureiro, two CEOs within theretail group, and the CCCO (Corporate CenterChief Operating Officer).Portfolio governance meetings are heldweekly, where a complete dashboard of theactive portfolio is shared. Several key perfor-mance indicators are defined to allow eachteam to keep up with the prioritization, devel-opment and delivery of their projects.Every second week, a meeting with all busi-ness partners, including ICT process ownersthat interface with business users, is held inorder to share business needs, requests anddiscuss synergies within a number of projects.These meetings can lead to cost reduction,improve deliveries time frames and optimizedresource planning. As a result of the opera-tional savings and improved governance andprioritization, Loureiro and his ICT team wereable to execute more than 80additional projects per year.To create more synergies,Loureiro and his ICT team planto analyze customer data fromthe company’s other divisions tocreate better and more tailoredvalue for customers. With shop-pers in the group’s food stores using loyaltycards for 90 percent of their purchases,Loureiro and the ICT team want to exploreways to use this data to develop a new eco-system. They could cross-feed this data toother business units within the Sonae Groupand its external partners, including GALPPetroleum and EDP.“The ICT team creates value by improvingboth the bottom and top lines.”A selection of recentaccomplishments-- Savings of more than €400,000 by improving projectprioritization;-- Faster implementation of projects, enabling the organizationto generate more revenue more quickly;-- Reduction of time to develop a new service by 30 percent;and-- Execution of more than 80 additional projects per year as aresult of operational savings and improved prioritization.SonaeSonae is a retail company, headquartered in Portugal, with twomajor partnerships in the shopping centers and telecommuni-cations sectors. Many of its core businesses in food (e.g., BomBocado restaurants; Book.it book and stationary stores; and therange of Continente markets) and retail (e.g., Sportzone in sportsproducts; Modalfa & ZIPPY clothing stores; and Worten storesfor white goods and consumer electronics) are market leaders inPortugal. Sonae is present in 41 countries with more than 43,000employees.Thriving amidstausterity byarchitectingICT-enabledsynergies.
18Andrew MarksCIO of Tullow Oil plcExamples of IT-enabledleadership-in-actionAt the start of 2012, after Andrew Marks hadbeen CIO of Tullow Oil for about 5 years ago,he and the ICT department (about 150 in to-tal) decided to proactively stop a concerningtrend. Each year, as the business was growingin terms of geographic markets, production,and staff, so too were both ICT capital andICT operating costs – by an estimated €25million a year. In 2013, they stopped the trendand held the ICT budget at the same level as2012.To generate greater value from the samebudget as the year before, Marks and his teamintroduced IT roadmaps aligned with businessunit interests; strengthened and simplifiedproject governance, and reorganized the ICTteam. By looking across Business Units andFunctional needs, the IT Business Partnerswere able to identify overlaps and gaps.They were also able to better schedule andsynchronize investments and in the process,present a more realistic budget.Marks and his team also introduced a simpli-fied project governance process that encour-aged early and frequent engagement betweenICT and the rest of the business. As part ofthe process, for a project to be considered,business owners are required to first presentan investment opportunity in the form of ashort (four page) Business Case, stating clearlyWhat, Why, When and a statement of whatmoney made or money saved relative to theinvestment required. This helped change thegeneral mind set from “how much cost” to“how much money made or money saved.”It also provided a transparent opportunity forothers – especially the ICT team – to chal-lenge investments in a constructive, com-mercial way.Once potential investments pass the first gate,they are presented at a round-table meeting,chaired by Marks, in which other businessexecutives review how the newly proposedIT-related investments fit with the company’sstrategy and ranked portfolio of existing pro-jects, what resources would be necessary toimplement them (including business changeimpact), absolute estimated cost and abso-lute estimated return on investment. This hashelped put ownership for IT-related decision-making in the hands of the restof the organization. This hasalso helped identify potentialsynergies – particularly in termsof re-use of existing solutions.Finally, the ICT department wasre-organized into two inter-re-lated teams related to businessvalue. The Driving Value teamincludes Demand Managementand Project Delivery. Membersof this team are responsible for shaping busi-ness needs and for preparing business casesjointly with business peers. They are alsojointly accountable for tracking and deliveryof business benefits along with their businesspeers. As Marks explained, this team helps therest of the business “only do what is required,what adds value, and do it well.”The Protecting Value team includes ServiceDelivery and Managing Risk. They provideday-to-day high-quality IT services and assurethat IT runs optimally in terms of hardwareand software performance, asset manage-ment procurement and training/support.Essentially, they are focused on “deliveringgreat service, securely and at the right cost.”Marks and his team now collaborate withthe rest of the business to create value in avariety of ways. With regards to exploration,Tullow has an amazing success rate of 80percent - that is, 8 out of every 10 wells thatthey drill they succeed in finding oil or gas(industry average is 25-30 percent). Markscredits their exceptional and historic trackrecord because of the teams of people whobuild models of what the subsurface lookslike (“ultrasounds of Mother Earth”) in terms ofwhere the oil may be and howmuch of it. The ICT team helpsthe geoscientists reduce risks byboth iterating through a greaternumber of scenarios to de-velop a more likely and specificscenario (thereby increasingthe degree of likelihood thatthe model is correct) and byhelping them model more partsof the earth and in the processdevelop a broader understand-ing of what is possibly there. The role of ICTto help reduce risks associated with explora-tion is so fundamental that Mars reports tothe Exploration Director, rather than the CFOor CEO.“Company’s in this sector are in a risk game. Afundamental role of ICT is to reduce risk.”A selection of recentaccomplishments-- The ICT department reorganized itself to be more strategi-cally aligned with the rest of the business, ensure invest-ments in ICT were prioritized accordingly, and overallimprove ICT services;-- Changes helped save €27.5 million in operational costs dueto better demand management; and-- The decision as to whether to invest the organization’smoney in IT-enabled change now lies with those who areaccountable for the change and the benefits. It is no longersimply an ICT decision.Tullow Oil plcTullow Oil plc is Africa’s leading independent oil company. In2012, 73 percent of its production and 84 percent of its revenuecame from Africa; the rest came from countries in Asia, Europe,and South America. With headquarters in London and corporateoffices in Ireland, Ghana, Uganda and South Africa, Tullow Oil’sglobal footprint covers 25 countries, 150 licenses, 67 producingfields and a workforce of over 1,700 people, with approximately50 percent of them working in their African operations.Helping thebusiness takegreater controlof ICT to mitigaterisk and generatemore strategicvalue.
19Mike McGrailDirector of Organisational Development of Spil GamesExamples of IT-enabledleadership-in-actionAs an online games publisher, Spil Gamesderives all of its value from ICT. The companyengages with customers through smart-phones, tablets or computers. The gamingcontent and experience that the companyoffers is entirely digital. Said Mike McGrail,“ICT is not only a key business enabler, it is thevalue itself.”From the beginning, Spil Games made thestrategic decision to use open-source soft-ware for everything they do to avoid expen-sive licensing fees for software and to avoidhaving to rely on external service providers forsupport. No single piece of technology in thecompany is commercial or off-the-shelf. Thisapproach also affords the company a higherdegree of flexibility because “anything weneed to do, we’re able to do immediately onour own,” McGrail said.Of the 280 full-time staff members employedat Spil Games, about 110 of these are basedwithin the ICT organization. About a third ofthe ICT headcount belong to an engineeringteam that manages and monitors the datacenter, networks and servers. About a fifthare involved in the development and main-tenance of platforms, such as the analyticsplatform, the presentation platform and gameengines. The rest of the team works in smallgroups focused on the user experience.McGrail and his ICT teams engage in data-driven decision making. They track myriadreal-time metrics regarding user gaming ac-tivities, micro-payment activities and adver-tisement-related activities, such as the num-ber of people from a particular demographicplaying a particular game while viewing aspecific advertisement – all in relation to theirpreferences based on any past engagementswith Spil Games. Every morning they checkwhat their revenue performance was the daybefore. Said McGrail, “With such a granularcompass to help us understand where we are,we are able to identify whichrecently developed featuresare achieving results and whichones are not.”Essential to the success ofSpil Games are core competi-tive mechanics, which McGraildefines as the ability to improvethe user experiences con-tinuously by rapidly developing,introducing, experimenting with, and learn-ing from new features. According to McGrail,“First and foremost we are here to competedigitally for the time and money of our users.We do that by quickly developing featuresthat will give them the ‘unicorn and rainbow’feeling that makes them want to come back.”One of the biggest challenges that McGrailfaces is to respond rapidly and repeatedly tospecific and local opportunities with an ICTsolution, while ensuring that over time thatthe digital platform builds out in a comple-mentary manner. Key aspects of individualsolutions, including the technology, thebusiness processes that rely on the technol-ogy, and the data that is used and generated,should accumulate in a sufficiently coordinat-ed manner as to enable economies of scaleand scope and re-use for subsequent solu-tions. McGrail and his ICT team achieve thisby rapidly developing new features and thenusing performance data to assess whether ornot the features merit more ICT investmentinto a sustainable and integrated solution.McGrail and his ICT teams are very adept atexperimenting with small tests. For a specificuser group, they may try out new features ormodify existing features in order to test userengagement, which is meas-ured by the number of returnvisits and other metrics. Teammembers follow a variety ofmethodologies, some of themtaken from several establishedmethods.Said McGrail, “We don’t dictateto the teams how they shouldwork. We just engage themon results.” Within a week, for example, adevelopment team can develop and intro-duce a new feature to a specific set of users.Many times, the data reveal that small testsdo not lead to better performance. However,after several iterations, if the data indicatethat users are interested in a new feature,then the company will invest resources intodeveloping the feature further and integratingit more robustly and sustainably into the coreinfrastructure.“We believe that the most important char-acteristic that someone can have to join thiscompany is passion.”A selection of recentaccomplishments-- Developed a team of diverse and passionate developersfrom 35 different countries who have a rich variety of edu-cational levels and work experiences;-- The team helps engage 200 million consumers around theworld each month, and of these 85 million are females;-- Offers a powerful play experience, as the average user ofSpil Games spends 85 minutes per month of play time ontheir websites; and-- Helps grow the business, with advertising revenues increas-ing by 70 percent year-over-year.Spil GamesSpil Games is an online games publisher, engaging 200+ millionvisitors on its platforms each month. Spil Games has investedin and built gaming platforms for three target demographics –Girls, Teens, and Family – in 15 languages. Spil Games promotesonline gaming as a social activity, developing gaming platformswith all the social features players need to challenge themselvesand each other, share their creativity, and connect with theirfellow players.Guiding thepassions ofteams into“unicorn andrainbow feelings”for users.
20José OlallaCIO of BBVAExamples of IT-enabledleadership-in-actionFor the past three years José Olalla has beenthe CIO of BBVA, after serving for two years asCIO for Spain where BBVA has its head office.After 20 years of working for BBVA, Olallahas developed a detailed understanding ofhow the bank operates. During this time, heand his team have been integral to creatinga new ICT services provider and in helpingcolleagues from the rest of the business takecontrol of ICT and extract greater value fromit.In late 2009, to increase productivity, reducecosts, and improve customer satisfaction,Olalla and his team introduced a new wayof using ICT to operate back-office pro-cesses across the company. The new way ofmanaging operations was based on a three-layer model designed to identify whether aprocess should be centralized, outsourced oroffshored.An important dimension of the transformationjourney was the launch and development ofa new company called OPPlus. In close col-laboration with an HR team from BBVA, Olallaand others created the new company fromscratch, including hiring, training and design-ing career paths for almost all of the employ-ees. Over time, OPPlus has grown organicallyand incrementally, and today, OPPlus consistsof about 1,500 FTEs.During the initial phases of the transforma-tion, Olalla and his ICT Group started with afew key pilot projects to convince the rest ofthe business that their approach was feasibleand beneficial. Having demonstrated realbenefits with the pilots, they earned the sup-port of the top executive committee to moveaggressively ahead with the whole project.This was essential because it had gonebeyond just an ICT project, as most of theprocesses that affected customers were goingto be revisited.Over time, Olalla and his team were able toconvince the rest of the business to movemore customer-facing services online. Theyhave become adept at con-structively pushing back thebusiness on some demandswhile pushing it forward inother directions. For example,some business managers werereluctant to move a processcompletely online because theydid not believe it was possible to do so whilemaintaining a high level of customer service.To overcome their risk adversity, the ICTGroup demonstrated the value and necessityof moving the entire process onto a digitalplatform.A critical success factor for challenging therest of the business has been hiring talentwho are knowledgeable both in ICT and thebusiness. If ICT employees have this dualexpertise, according to Olalla, it will enablethem to identify the most relevant technolo-gies and to discuss technology-related issuesin a credible, knowledgeable and persua-sive manner with their business colleagues.Consequently, if someone from the ICTGroup suggests an innovative solution – nomatter how challenging – their businesscolleagues will tend listen to and respect-fully consider their proposals. Said Olalla,“The people who are proposing solutions arepeople who know very well how the businessoperates and also have a deep knowledge onhow the technology operates.”In line with his focus on staff synergies, Olallaintroduced the role of business partnerswho are responsible for ensuring that ICT ishelping their respective business unit thrive.Business partners report both to the CIO andthe head of their business unit.In so doing, when a businessmanager at BBVA starts consid-ering a new product or service,either Olalla or the businesspartner are involved early on inthe process. This helps themunderstand how to best leveragenew technologies and build solutions that arewell integrated to existing business processes.In several key business units, Olalla and hisICT team have already transformed andstandardized the back office processes us-ing a three-layer model. Spain and Portugalhave already been transformed and so goingforward, Olalla and his ICT team will continueto apply the three-layer model to the rest ofBBVA’s country units.“The ICT Group knows how to push the restof the business so that we all end up innovat-ing even more. We prefer to say ‘not that way’rather than simply ‘no.’ As a result, ICT is creat-ing business value in areas that no one in therest of the business thought were possible.”A selection of recentaccomplishments-- Enhancing Operations: Introduced a new way of using ICTto operate back office processes across the company. Basedon a three-layer operational model that the ICT Group lead,it is credited with already saving €41 million a year in opera-tional costs and is expected to annually save an additional€47 million over the coming years.-- Digitizing other key processes: Customer Credit Card Claimprocess now 100 percent paperless and average resolutiontime reduced from 21 days to less than 1 day.-- Enabling new ways of working: Introduced Google Appsplatform to support more flexible, more productive andmore satisfied workforce.BBVABanco Bilbao Vizcaya Argentaria (BBVA) is a global financialgroup with a diversified business providing financial servicesto 53 million customers across more than 30 countries. BBVAhas a strong position in Spain; it is the top financial institutionin Mexico; it has leading franchises in South America and inthe Sunbelt region in the United States, where it is one of the15 largest banks; and it has a significant presence in China andTurkey.Translatingserviceexcellence intoa new enterprise
21Gerry PennellCIO of the London Organising Committeefor the Olympic and Paralympic GamesExamples of IT-enabledleadership-in-actionFor any specific year and season, the OlympicGames are also one of the world’s mostpopular temporary organizations, evolvingsignificantly during their lifecycle of severalyears. A critical success factor for any CIO ofsuch an event is to adapt accordingly. Duringthe four years that Gerry Pennell served asCIO, as the demands from the event evolved,he had to build and adapt his team accord-ingly. From scratch, he built a large teamthat was first responsible for developing andintegrating the technology and then provid-ing excellent client service. By the peak of theGames, the ICT department had expanded to400 paid staff, together with 2,500 supplierstaff and 3,000 volunteers.Another fundamental challenge that Pennelland his team embraced and worked withthroughout the process of developing ICTsystems was that the set of requirementsto which they were developing the systemswas incomplete at the time the develop-ment process started and would changethroughout the process as more stakeholdergroups joined the process and developed abetter sense of what they needed. To developrobust and effective ICT systems aroundincomplete and dynamic requirements by anon-negotiable deadline, the team developed“an approximate and agile style of delivery”where they focused on the key fundamentalrequirements and accepted changes through-out the process.Another critical success factor was how theteam went about testing the systems. Testingwas essential to ensure that the ICT systemswould delivery perfectly when the gameswent live. Pennell estimates thatduring the last year and a half,over half of the ICT resourceswere invested in testing. Theytook three complementaryapproaches to testing. First ofall, they set up a large purpose-built testing lab (“the Olympics in one room”)where they were able to simulate all thesports in the games, separately and together,under a variety of conditions (e.g., normal tocrisis). Second, they tested the ICT systemsand related processes in 42 live environments,such as qualifications events, leading up tothe official games. Finally, they invested in“technology rehearsals.” A few months beforethe games, once the venues were built, anddrawing on hundreds of people, they simu-lated events while trying to make things gowrong (e.g., power outages, cyber-attacks,etc.) to test the resiliency of the ICT systemsand operations in the actual venues thatwould be used.The range of activities that Pennell and histeam accomplished is impressive. They pro-vided a range of technology services to sup-port all 37 LOCOG functional areas; providedservices directly to most client groups includ-ing athletes, technical officials, the OlympicFamily, broadcasters, written press andpress agencies including photo-journalists,spectators and the general public at homeand overseas; provided real-time results onall Olympic sports to web, broadcasters andother users ; deployed 110,000components and 5,500 km ofcabling to around 100 venuesover a couple of months; createda 24/7 scale operation to supportthe Olympic and the ParalympicGames to the very high level ofservice required; and decommissioned andremoved all technologies from all venueswithin a few days of the Paralympic ClosingCeremony.Their results were even more impressive.During the Olympics, there were no inac-curate or late results published to key clientgroups; no major technology failures affect-ing press or broadcast operations; at no timeswere their web-site successfully degradedthrough cyber-attack or over-load (none)and no formal complaints were received ontechnology services from client groups.“To deliver such results within a short period,we established an integrated team, pullingtogether staff, volunteers, sponsors and othersuppliers from a number of countries.”A selection of recentaccomplishments-- ICT was fundamental to the successful delivery of theOlympic and Paralympic Games in the UK – the nation’s sin-gle largest peace-time logistical and mobilization challengeand the most digitally connected Games ever;-- Set up the infrastructure and software (largely new) requiredto provide real-time results on all Olympic sports to web,broadcasters and other users. During the Olympics, 1.6 mil-lion results messages were accurately delivered to athletes,spectators, broadcasters, press, Olympics family, and publicvia a variety of digital and non-digital channels; and-- They enabled for the first time real-time results to be deliv-ered from all sports to the Web as well as the first public de-livery of results apps (12.5 million downloads) to four smart-phone and two tablet platforms. At peak, over 60 percent ofthe load on their web-servers came from people using theirmobile web-site directly or their downloadable apps.London OlympicsIn 2005, London was awarded the Games of the 30th Olympiad.The London Organising Committee for the Olympic andParalympic Games was responsible for myriad activities relatedto hosting the Games. They hosted more than 15,000 eliteathletes across 183 days of competition, spanning all Olympicsports and disciplines and six Paralympic sports, across 28venues around London and the UK. Millions around the worldviewed the Games from a variety of news outlets and devices.Deliveringresultsto millions.
22Joaquín Reyes VallejoCIO of CEPSAExamples of IT-enabledleadership-in-actionCEPSA operates in a sector where are nothighly differentiated. Business is marked byvery high volumes of transactions with verylow margins. Consequently, operational ef-ficiency and customer loyalty are essential forcompetitiveness. CEPSA’s CIO, Joaquín ReyesVallejo explains that “the fundamental roles ofICT are to maximize operational efficienciesand create value-added services to our non-differentiated products.”About 10 years ago, soon after becoming CIOof CEPSA, Reyes received support from theBoard of Directors to pursue a shared servicesmodel. Having analyzed the ICT services andbudgets of several business units, the ICTGroup discovered that if the BUs switchedcompletely to variable costs it would resultin savings of 15 percent. Within a few years,most BUs agreed to have Reyes and his teamhandle their ICT needs.Reyes and his team’s efforts to develop acommon ICT strategy to support all theirBUs extended beyond ICT and into businessprocesses. For example, ICT Group devel-oped internally a new platform to supportall production processes in the refineries.In so doing, the ICT Group studied whatprocesses chemical plants, which consistof batch processes, had in common withrefineries, consisting of continuous processes.Traditionally, the sector treats these processesas very distinct. They were surprised by howmany processes were similar and decided todevelop a common ICT strategy and platformfor both types of processes. Two years later,they reused the platform for the refineriesand, with a few modifications, used it for thechemical plants as well.A critical success factor has been the ICTGroup’s ability to engage with other businesscolleagues and show them how their localinterests relate to the broader enterprise.“ICT has a special capability to understandmodels. They have the capability to developa global understanding and seeall the pieces integrated into asingle view. They can under-stand the behavior of a wholesystem rather than individualcomponents. It is easy to focuson a single component, suchas production, logistics or procurement.However it is also important to understandhow these components interact in differentways. In addition, it is important to understandthe human and cultural interactions within asystem.”To define areas where productivity improve-ments and cost savings could be made, acommittee was set up of mostly non-ICTbusiness leaders. Within the committee, ICTwas expected to serve as a catalyst ratherthan a leader. In addition, the committeeagreed that any projects that emerged fromthe recommendations would involve onlymarginal ICT investments because ICT wouldmostly reuse existing solutions. Reyes and histeam also insisted that any investment thatthe company did make in ICT would becomethe property of the shared services ICT groupand a corporate asset. And anyone whowanted to use the technology in the futurecould use it for free.One of the unexpected benefits of havingsufficiently standardized business processplatforms and ICT platforms and has beenthat it enables talent to move around thefirm more effectively. Managers from thechemical side have been able to work on therefinery side and become operational quickly.Integration and standardizationfacilitated and increased internalmobility. And by working in dif-ferent business areas, managersare developing a richer set ofcompetences.Benchmarking studies consistently show thatCEPSA continues to be one of the most ef-ficient companies in the industry. In 2012, ICTspending was only 0.4 percent of total rev-enues, compared with the industry median of1.1 percent, and ICT employees accounted foronly 2.9 percent of total CEPSA employees,while the industry average was 4.5 percent.“Digitization of the enterprise is the drivingforce for the future of the businesses. My teamand I work closely with other business col-leagues to put in place a common strategy toextract the potential of mobility, social mediaand cloud services.”A selection of recentaccomplishments-- Lower operational costs: Saved €200 million in ICT spend-ing. In 2012, ICT spend represented 0.4 percent of revenue,in contrast to an industry average of 1.1 percent;-- Operational excellence: Senior management designated theIT Group’s Global Shared Service Centre organization as thereference model to be followed for other corporate cross-function organizations, such as Finance, Procurement, HR,Logistics, and Maintenance; and-- Improved operations: Business processes that are commonto all companies improved. For example, plant maintenancecost decreased after creating integrated sites for chemicaland refinery plants and procurement purchases coverageincreased from 35 percent to 65 percent.CEPSACEPSA (Compañía Española de Petróleos, S.A.U.) is an integratedenergy company operating globally at every stage of the oilvalue chain. CEPSA has more than 12,000 employees and, inaddition to Spain, has significant business interests in Algeria,Brazil, Canada, Colombia, Panama, Peru and Portugal. CEPSAis engaged throughout the world in petroleum and natural gasexploration and production activities; refining, the transport andsale of crude oil derivatives; petrochemicals, gas and electricity,including 1,700 service stations throughout Portugal and Spain.Growingglobally throughstrategic reuse.