Cio Pulse Sept 2008

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Cio Pulse Sept 2008

  1. 1. CIO Pulse September 2008 Abbie Lundberg, Editor in Chief, CIO advice.cio.com/blogs/difference_engine
  2. 2. business realities Demand for growth Economic uncertainty Shifting business models Digital natives, consumerization of IT High yet ill-defined expectations Innovation and risk 2
  3. 3. 3
  4. 4. economic uncertainty 4 photo by Fadzly Mubin
  5. 5. 5
  6. 6. 6
  7. 7. shift to cost cutting What is the primary Create Enable Lower the Manage IT Focus of your Topline Business Operating Infrastructure Investments? Revenue Process cost of IT More growth Innovation efficiently Past 12 months 20% 39% 16% 26% Next 12 months 21% 37% 22% 19% CIO Budget & Staffing Survey, June 2008 7
  8. 8. from ROI to TCO Most important factor driving your IT Jan. 2008 June 2008 Investments the next 12 months Return on investment (ROI) 59% 52% Total cost of ownership (TCO) 41% 48% CIO Budget & Staffing Survey, June 2008 8
  9. 9. contingency plans Do you have a contingency plan in place in the event you need to make cuts to your IT budget? Yes, contingency plan currently in place 48% 68% Not yet but planning to implement 20% No plans for contingency plan 32% CIO Budget & Staffing Survey, June 2008 9
  10. 10. riding the recession If a recession is to occur, how confident are you in your organization’s ability to manage through it? Source: CIO Strategic IT Research Study, IDG Research, April 2008 10
  11. 11. some examples 11
  12. 12. extreme measures: TCO = 0? 12
  13. 13. shifting business models 13
  14. 14. digital natives web 2.0 consumerization of IT 14
  15. 15. employees & customers want to… • Create » Blogs, videos, wikis, machinima (remixes) • Communicate, collaborate, share & engage » IM, text messaging, social networking, photo sharing • Participate, influence & be recognized » Rate & be rated, comment, vote • Choose their own tools 15
  16. 16. consumerization of the enterprise Bechtel’s Project Services Network • Infrastructure-to-apps overhaul of technology environment • Goal: secure, ubiquitous, simplified, rapidly deployable access to corporate and customer information to any user around the world • Role Models: » YouTube: high-bandwidth networking » Google: leveraged infrastructure » Amazon: extreme virtualization » Saleforce: multi-tenant application support Upcoming issue of CIO Magazine, Nov. 1, 2008. www.cio.com 16
  17. 17. enterprise web 2.0 spending Source: Forrester Research 17
  18. 18. shift to customer 2.0 • Large businesses spend more on employee collaboration tools than customer-facing Web 2.0 • That trend will reverse by next year • By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration Source: Forrester Research 18
  19. 19. 19
  20. 20. innovation risk 20
  21. 21. discussion questions 1. What strategies are you employing today to hedge against rising prices and changing consumer behavior? 2. Is there still room to deliver more in the way of IT services while continuing to take out cost? 3. How suited is your IT infrastructure to a world of rapidly changing demand? What’s the best way to get to a YouTube/Amazon/Google infrastructure? 4. How do you balance innovation and risk? 5. Case 1 – Your CEO sees opportunity in entering a completely new and different market. What’s the first thing he needs to know from you? 6. Case 2 – Your company gets bought by a private equity firm and they want to quickly spin off some of your businesses. What do you do first? 7. Case 3 – The bottom falls out of a big chunk of your business. What’s the highest impact thing IT can do to a) cut costs quickly? b) shift to growth opportunities? 21

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