1. CIO Pulse
September 2008
Abbie Lundberg, Editor in
Chief, CIO
advice.cio.com/blogs/difference_engine

2. business realities
Demand for growth
Economic uncertainty
Shifting business models
Digital natives, consumerization of IT
High yet ill-defined expectations
Innovation and risk
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3. 3

4. economic uncertainty
4 photo by Fadzly Mubin

5. 5

6. 6

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
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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
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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
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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
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11. some examples
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12. extreme measures:
TCO = 0?
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13. shifting business models
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14. digital
natives
web 2.0
consumerization of IT
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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
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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
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17. enterprise web 2.0 spending
Source: Forrester Research
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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
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19. 19

20. innovation
risk
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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?
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