The CIO Agenda: Proactively Managing Business and Technology Change to Maximize Business Results


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CIO’s are leading the transformation of their IT organizations to play a more critical business driver role across the enterprise. Effective leaders are reaching outside the traditional IT role of control, integration and automation of legacy systems and positioning IT as innovators of technology and business change. Pete will focus his experience, insights and thought leadership around preparing IT service and support professionals for this ‘disruptive’ change.
As we prepare to plan, implement and support the many aspects of technology and business change, we must throw out the old checklist and project plans. It is critical to focus on the possibilities and opportunities to positively impact the customer experience and productivity. Regardless of the type of change, the health and competitiveness of your business will depend on both the minimal negative impact and the taking advantage of the ‘art of possibility and opportunity’.

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The CIO Agenda: Proactively Managing Business and Technology Change to Maximize Business Results

  1. 1. 6th Annual Excellence In Service The CIO Agenda: Management Proactively Managing Business and TechnologyThe Premier IT Service Change to MaximizeManagement Event on Business Results the West Coast Peter McGarahan President / Founder McGarahan & Associates
  2. 2. About The Speaker• 12 years with PepsiCo/Taco Bell IT and Business Planning• Managed the Service Desk and all of the IT Infrastructure for 4500 restaurants, 8 zone offices, field managers and Corporate office• 2 years as a Product Manager for Vantive• Executive Director for HDI• 6 years with STI Knowledge/Help Desk 2000• Founder, McGarahan & Associates (8 years)• McGarahan & Associates delivers service and support best practice consulting delivered through assessment / findings / recommendations / continuous improvement roadmap.• Retired Chairman, IT Infrastructure Management 2
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  4. 4. Relevant Research By 2015, Gartner estimates tablet unit Forrester ’s 2012sales will be 326 million, estimate for global and smartphone unit IT spend growth wassales will be one billion. recently halved toTablet sales by 2015 are 5.5% growth. **likely to roughly parallel PC sales. According to data Gartner published in June, 2011 – there were Gartner research 5 billion mobile devices predicted Tablet (1.2 billion smartphones sales would reach *) in use worldwide in 54.8 million units in 2010 and that number is 2011, with projected expected to exceed 6.7 sales of 214 million billion by 2015. by 2014.* Equal to the installed base of all computers-desktops, laptops, notebooks and tablets (including iPad) ** spend 3.7% of company revenues on overall IT spending and 2.6% on IT spending to maintain and operate the organization systems, and equipment (aka MOOSE). 4
  5. 5. Maturity Matters Level 5 Respect Level 4 Trust IT Mgmt. Toolbox • Governance IT Mgmt. Toolbox Level 3 Acceptance • Shared Services • Funding Models • Portfolio Mgmt. IT Mgmt. Toolbox • Architecture • Coordination • Project Office Level 2 Skepticism • Service Portfolio • Resource Mgmt. • Finance • Skill Assessment • Career Pathing IT Mgmt. Toolbox • Relationship & • Process Design • Program Mgmt. • Communication Project Mgmt. • Competencies Level 1 Uncertainty • Workplace • Consistency • Outsourcing • Culture Innovation • Reliability • Service Recovery • Measurement IT Mgmt. Toolbox • Strategic Sourcing Perception Points Gartner IS • Budgets • Operations • Performance • Recruitment • Staff Development. Perception Points • Leadership • Succession Perception PointsMaturity Model • Staffing Perception Points • Competency • Relationship Mgmt. • Alliances Perception Points • Information • Business Savvy • Partnerships • Problem Mgmt. • SLAs • Sourcing • Response • Consultation • Policies • Priorities • Service Pricing • Reliability • InnovationCMMI Maturity Model HDI Maturity Reactive Model Proactive Model Customer / Business-Centric Model Model 5
  6. 6. A Business PerspectiveIn tough economic conditions, the focus must be on YOUR customer.... Business Value is created by satisfied, loyal, engaged and productive employees. Employee satisfaction, in turn, results primarily from high- quality support services and policies that enable employees to deliver results to customers and business value to the organization. The Service-Profit chain establishes the interconnected relationships among internal service quality; employee satisfaction, retention and loyalty; service value; customer satisfaction and loyalty; revenue growth; and productivity. 6
  7. 7. Technologies / Funding Shifting IT Focus• Relocating IT into the business / Partnering with the business.• Hire / place the right leaders in the right positions to get the job done.• Tracking business outcomes (resulting impact) is the only way to show how IT benefits your company.• Creating Technology / Business Innovation. 7
  8. 8. Accelerated Pace of ChangeGiven this trend toward IT and businessconvergence, IT must be willing to:• Surrender some of its control over systems and services• Give the business more control, ownership, accountability, access, and training.A successful transformation requires:• Proper planning and changing mindsets about traditional roles and responsibilities.• The new IT organization partnered with the business must take full advantage of these trends to deliver business results. 8
  9. 9. Envision The End• Focus on what IT should look like in the end.• Design a new IT model that dynamically aligns IT with the business and the customer service goals that deliver value.• Deliver technology-enabled business solutions that solve problems and create business value, without the bureaucracy.
  10. 10. Rogue (Shadow) ITA natural result of the tensions between the consumerization of IT (mobile, social media, cloud and consumer technologies) and the traditional security and standardization of IT. • The business finding support outside the Service Desk and IT. • Can’t say ‘NO’ forever - - it’s an unstoppable tide of change. • Partner, work with them; find a way to say ‘YES’. – Come as partner to help them, not as the enemy to stop them. • Placing key IT people into the business to further partnership and collaboration on business-technology-innovation. • More of a focus on speed to market, new revenue lines and profitability rather than one ‘bottleneck’ funnel into IT. 10
  11. 11. The Changing Customer / Worker Successful eBusiness leaders will take a life-cycle view of their customers, invest intechnology that will support multiple touchpoints and devices, and re-evaluate ownership of online customer service strategy and operations. 11
  12. 12. Affecting IT, Business Trends• Cloud computing • Server, desktop, and storage• Mobilizing the workforce virtualization• Business process, • Business intelligence technology convergence • All Things VIDEO• IT outsourcing • Virtual, project-based “contractors.” 12
  13. 13. Consumerization of IT• BYOD = Bring Your Own Device! – No Fad (e.g. bring your doggie to the office – Free Lunch).• CIO must educate the staff / the opportunity to focus on business problems & apps more than building & maintaining infrastructure.• Consumerization of IT (BYOG) – 37% of workers said they’ve used their own PC or Smartphone for work! – 36% said that their company doesn’t provide the technology they need.• Focus is on: – Employee productivity. – Creating an innovative environment. – Being flexible and adaptive without sacrificing security, risk management and compliance. According to an IDC study 2011 Consumerization of IT: 40.7 % of the devices used by Information Workers to access business applications are personally owned. 13
  14. 14. The Age of Mobility79% of CIOs said increased productivityis driving the adoption of mobile-devices in the enterprise. The breakneck pace of consumer adoption of smartphones, tablets, and related applications drives enterprise IT organizations to support mobilization of their core applications (and ultimately their business processes). 14
  15. 15. “Goin Mobile”• Mobility is the biggest single trend • Mobile technology is the driving force across tech industry investment that underlies the forces influencing and innovation (outpacing even where IT will go and what it will the cloud trend). become (“technology as a service”).• The pace of smartphone • Workforce (generational, virtual, innovation will be ferocious. project-based)• Social Computing and mobile • Ubiquitous data (anytime, anywhere). Business Intelligence anyone? phones will expand their love affair. • Cloud Computing (Where physically is my data again?)• The smartphone will become the crucible for disruptive. • Social Media (end-of-life email?)• Organizations will have dedicated mobile staff. 15
  16. 16. Investing In The Cloud1. Traditional IT Models are taking a Traditional IT Roles will be seriously impacted by: back seat to the cloud (IT Investment). • Consolidation and virtualization over true cloud2. Tablet and Smartphone use in the capabilities. enterprise is being driven by the • Server and data center consolidation / growth of cloud-based applications, in virtualization will continue to be the dominant addition to the low cost and priority availability of these devices. • Consolidate IT infrastructure via server3. The cloud offers organizations flexible, consolidation cost-effective alternatives to deliver IT • Automate the management of virtualized services. servers to gain flexibility and resilience4. There are many fragmented flavors of • The ease of connecting mobile devices Tablets & “Cloud” Services for business to Smartphones) to various cloud services. select. 16
  17. 17. Social Media • The “new” professionals are very comfortable with browser based collaborating, texting and Instant Messaging (IM). – From the perspective of adoption, use, productivity and training. • The development opportunity for this soon-to- be-dominant platform lies in the ability to simulate features and capabilities that mimic the social media sites and tools younger workers exploit today. – E.g. Facebook, Twitter, YouTube, MySpace, texting. • Separating professional from personal computing will become increasingly difficult as each graduating class transitions into the workforce. – Restrictions around popular Social Media sites 17
  18. 18. Bringing It All Together: The Art of Possible Amplifying the Enterprise: The 2012 CIO Agenda (Gartner): Create the technology platform and architecture utilizing related technologies to broaden and unite all departments and core elements across the enterprise. Influence the business model and multiple strategic areas based on current trends and preferences that would fuel innovation and business for growth to: • Improve their understanding of customers and markets • Allow them to engage externally at the time, place and point of need • Facilitate collaborative dialogue
  19. 19. The Wake-up CallThe IT Change Imperative• The development of all IT professionals should be a priority of IT Leaders.• It’s a continuous process of learning, acquiring and utilizing highly valued and marketable skills.• Prepare and position them for a long-term, successful and rewarding career in IT and Business (soon to be one-in-the-same). 19
  20. 20. Bringing IT All Together: The IT Organizational Change PlanNo IT Professional Left BehindIsland Isolation to Cooperative CollaborationStretch individuals to discover their “uncomfort” zonePersistence/Diligence of Vision/StrategyBe a Visible Change LeaderCommunicate, Communicate, Over Communicate 20
  21. 21. HIGHLY VALUED SKILLS The transition for all IT professionals should be one of continuous learning with the acquisition and utilization of highly valued and marketable skills to prepare and position them for an exciting career in business and IT.Such skills include those in the These skills can lead to positions in:following areas: – Business processing – Leadership – Innovation – Strategic thinking – Business intelligence – Communication – Vendor management – Influential power – Business-IT account management – Relationships – Coaching – Problem-solving 21
  22. 22. Your Future Career• Hybrid IT Professional - Provides leadership in • Vendor management (VMO) – Managing the devising and executing technology-enabled vendor sourcing relationship according to a business ideas and initiatives. playbook that maximizes the value from a• Business Innovation – A tech-savvy relationship. professional with good communication, • Business-IT account management – An process and business skills that locus on account manager responsible for a business solving business problems and creating function and ensuring that they are gaining business opportunities. the maximum value from invested technology• Business processing – BP redesign and and IT. integration and automation into state-of-art technologies. • Customer Service leader – Tech savvy, social media and customer / business professionals• Business intelligence – An expert at data leads the companies effort on creating and extraction and manipulation leverages delivering a customer-centric service delivery analytical skills to correlate, trend and provide model / culture service focused on customer relevant business insights and directions for loyalty, retention and profitability making better business decisions. 22
  23. 23. "Being a service leader is about positively impacting the world around you! It’s not about you, its about all that you can do to make other people successful.“ Thank You! Pete McGarahanChange the World! McGarahan & Associates 714.694.1158 23