MEGA eBook - CIO: A Business Partner for the CEO


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CIOs are facing more pressure to take on a new role within the organization. Because they are the keepers of information systems and the infrastructure that makes the business run, , they are in a better position to bring value and competitive advantage to the business. However, becoming a true business partner of the CEO is a long journey.

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MEGA eBook - CIO: A Business Partner for the CEO

  1. 1. CIOs: How to Becomethe CEO’s Business Partner A Best Practices eBook Nicolas Betbeder-Matibet, Managing Director, MEGA Asia - ©MEGA June 2012
  2. 2. The Agenda for CIOs in 2012According to Gartner*: CIO IT strategies concentrate on eliminating IT and enterprise distortions“CIO strategies CIO IT strategies Ranking of IT strategies CIOs selected as oneconcentrate on of their top 3 in 2012eliminating IT Ranking 2012 2011 2010 2009 2008 Delivering business solutions 1 2 1 3 1and enterprise Reducing the cost of IT 2 3 3 2 10distortions.” Developing or managing a flexible infrastructure Expanding the use of information and analytics 3 4 1 7 8 7 11 10 11 9 Improving IT management and governance 5 4 6 4 7 Improving business alignment and relationship 6 10 2 1 2 ©MEGA June 2012 Implementing mobility solutions 7 18 * * * Consolidating IT operations and resources 8 5 9 9 12 Implementing business process improvements 9 8 4 5 6*Gartner, Inc., “Executive Summary: Improving the IT organization and workforce 10 6 10 8 3Amplifying the Enterprise: The 2012 CIOAgenda”, Published: 1 January 2012, Implementing cloud solutions (SaaS, IaaS, PaaS) 11 9 * * *Analyst(s): Mark P. McDonald | Dave Aron *Not an option that year
  3. 3. CIO and CEO priorities are not the same“The common thread is that Comparison of CIO and CEO Business PrioritiesCIOs are looking slightlymore tactically, functionally From the CIO Survey From the CEO Surveyand operationally – playing Increasing enterprise growth Increasing enterprise growthwithin the current business Attracting and retaining customers Reducing enterprise costscontext; CEOs are looking Reducing enterprise costs Expanding into new markets or geographiesslightly more strategically, Increasing productivity Increase profitabilitystructurally and Expanding into new markets or geographies Creating new products and services (innovation) Implementing finance and controls Talent and workforce management/developmentorganizationally – playing Managing and delivering operational results Consolidating, standardizing and streamlining operationswith the business context.” Improving efficiency Execute acquisitions, mergers and partnerships ©MEGA June 2012 Improving marketing and sales effectiveness Improve governance, risk, compliance and security Attracting and retaining the workforce Create new products and services Implementing finance and controls Implement new and improved technology*Gartner, Inc., “A Comparison of the CEO and Improve governance, compliance, risk and security Customer focusCIO Surveys Finds CIOs Must Elevate TheirFocus”, Published: 21 March 2012, Analyst(s): Significantly higher from CIO perspective Source: Gartner (March 2012)Dave Aron, Mark Raskino Significantly higher from CEO perspective
  4. 4. What are CIOs expected to contribute... Support enterprise Consolidate, standardize growth and expansion and streamline organization … to become a CEO business partner? ©MEGA June 2012 Reduce enterprise costs Improve governance, via better efficiency risk and security
  5. 5. CIOs have a three-step journey Step 1 Maximize performance of business operations Step 2 Support and drive business transformation Step 3 Inspire and enable strategic decisions ©MEGA June 2012
  6. 6. Step 1 Maximize performance of business operations Challenge 1 Challenge 2 Deliver services supporting Contribute to the flexibilitybusiness processes according and business agility of the organization to the appropriate SLAs. through adaptable and agile IT assets.Provide business services Enable business agility (vs. provide tools) (vs. additional barriers to change) ©MEGA June 2012 Maximize performance of business operations
  7. 7. Step 2 Support and drive business transformations Challenge 1 Challenge 2 Determine and prioritize the Execute and deliver the changes, changes needed in different ensuring that the business business areas through impacts of the changes are understoodengagement with business leaders and appreciated within the enterprise Enforce a business-driven Manage transformation ©MEGA June 2012change management process to deliver business benefits (vs. technology-driven) (vs. deliver project) Support and drive business transformation
  8. 8. Step 3 Inspire and Enable Strategic Decisions Challenge Closely engage with business leaders in a two-way, collaborative process to position the IT strategy so that it supports and contributes to the business strategy Position the IT strategy as a part of the business strategy (vs. implementation plan) ©MEGA June 2012 Inspire and enable strategic decisions
  9. 9. Three Key Practices for CIOs Key Practice 1 Key Practice 2 Key Practice 3 Enterprise IT Asset Transformation Architecture Management & Governance Step 1 Step 2 Step 3 Maximize Support and drive Inspire and performance of business enable ©MEGA June 2012 business operations transformation strategic decisions
  10. 10. Key Practice 1: Enterprise ArchitectureWith major EA can guaranteetrends like cloud the alignmentand mobility, of IT assets witharchitecture business for todayhas a renewed and the ability toimportance for IT support futureperformance business changes for tomorrow ©MEGA June 2012
  11. 11. EA and Business ArchitectureAlign IT with BusinessBusiness Enterprise Architecture Blueprintarchitectureand enterprise Business Architecture Informationarchitecture provide Strategy & objectives Capabilities Business vocabularythe structure Business functions Business processesto align IT withbusiness goals andoptimize resources ©MEGA June 2012according to IT Architecturestrategic goals Applications Data Services Technology
  12. 12. Key Practice 2: IT Asset ManagementAsset management It offers anenables IT opportunity toto increase combine the criticalthe business service provider rolecontribution of with the businessexisting assets and partner roledetermine futureinvestments based ©MEGA June 2012on business needs
  13. 13. Application Portfolio Management ImprovesAsset Value and Customer ServiceApplication PortfolioManagementprovides tools to Tolerate Innovateassess the value Technical Costof your application efficiency & & Safety Risklegacy and reduceits cost Eliminate Migrate ! ©MEGA June 2012 Business Value
  14. 14. Key Practice 3: Transformation & GovernanceLeveraging its core IT teams help They provideproject management identify, design, and governance tools tostrengths, IT can go execute change on control and managebeyond alignment an end-to-end basis, risksand be a driver of not just within IT butchange across the business ©MEGA June 2012
  15. 15. TransformationTransformation Enterprise Architecture Blueprint Transformationmanagementpractices help Business Architecture Strategy & objectives Information Businessanalyze different Capabilities Business functions vocabularyscenarios and plan Business processesappropriate change ! Costs & Risk IT Architecture ©MEGA June 2012 Data scenario analysis Applications Roadmaps Services Technology
  16. 16. GovernanceGovernance Enterprise Architecture Blueprint Transformation Governancepractices ensurethat operations Business Architecture Strategy & objectives Information Businessare under control Capabilities Business functions vocabularyand risks are Business processesmanaged, while !integrating allstakeholders as IT Architecture Costs & Risk Action Plans ©MEGA June 2012 Data scenario analysis Risksrequired Applications Services Roadmaps Controls & Audit management Technology Incident Self assessments
  17. 17. The Consumer Goods ExperienceProcter & Gamble achieved success with EA:–– “A comprehensive –– “For P&G, it was the first understanding of both step toward centralized business and IT information and the way to architecture creates a see and understand how P&G is: vital information resource the company’s business –– #27 on the Fortune 500 to support innovation and processes related to the improve business decisions, thousands of business –– #24 in the World’s Most while increasing the value applications used to Innovative Companies, and cost efficiency of IT for support and deliver the according to Forbes the enterprise.” business.” ©MEGA June 2012
  18. 18. The Insurance ExperienceA leading insurance company CIO, overseeing worldwide IT operations, improved changemanagement through EA.–– To better contribute to –– A change management and –– The new capabilities enabled the company’s strategy, business architecture skill the IT department to go the CIO transformed center were created within beyond solution deployment, the IT department from the IT department to business change reliable service provider management and benefits to accountable business accountability partner ©MEGA June 2012
  19. 19. Key Practices to Make the CIO a TrueBusiness Partner Key Practice 1 Key Practice 2 Key Practice 3 Enterprise IT Asset Transformation Architecture Management & Governance Step 1 Step 2 Step 3 ©MEGA June 2012 Maximize Support and drive Inspire and performance of business enable business operations transformation strategic decisions
  20. 20. For more information about ourenterprise architecture - @mega_int ©MEGA June 2012