© 2009 ibm corporation robyn bennett vice president, marketing programs and enablement ibm global...
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© 2009 IBM Corporation
Robyn BennettVice President, Marketing Programs and EnablementIBM Global Technology Services
© 2009 IBM Corporation
IBM C‐Suite Studies provide insight and context into the mindset of senior decision makers.
InauguralGlobal CIO Study 2009
Released September 2009
Global CFO Study 2010Released March 2010
Global CEO Study 2010Released May 2010
Over 5,300 Face‐to‐Face Interviews Conducted
© 2009 IBM Corporation3
Between January and April 2009, IBM conducted 2,598 face-to-face interviews with CIOs – Represents different sizes of organizations in 78 countries and 19 industries
Analysis incorporates Profit before Tax (PBT) growth data, relative to peers in their industries, to associate CIO organizations with one of three growth levels: High, Medium or Low.
– Context (Low-growth v. High-growth) reflects environment in which CIO operates
Geography Organization SizeSector
Public18%
Distribution24%
Financial Services
21%
Industrial24%
Others2%Communications
11%
In the largest known sample of face-to-face interviews, we spoke with CIOs to understand their goals and challenges
© 2009 IBM Corporation4
Our analysis provided insights into how CIOs can make the biggest impact on behalf of the entire organization CIOs are much more actively engaged in:
– Setting strategy– Enabling business flexibility and change– Solving business problems, not just IT problems
CIOs spend an impressive 55% of their time on activities that spur innovation:
– Generating buy-in for innovative plans– Implementing new technologies– Managing non-technological issues
However, CIOs universally acknowledge that some of their most important objectives sometimes seem to clash
– How can we support the introduction of new services while avoiding the disruption of existing services?
– How can I reduce costs while improving services?– How will I balance the need to influence business strategy with the need
to provide top-notch IT support?
© 2009 IBM Corporation5
Successful CIOs blend three pairs of roles that seem contradictory, but are actually complementary
AblePragmatist
SavvyValue Creator
RelentlessCost Cutter
CollaborativeBusiness Leader
InspiringIT Manager
MakingInnovation
real
Raising the
ROI of IT
Expandingbusiness impact
InsightfulVisionary
© 2009 IBM Corporation6
Insightful Visionary andAble Pragmatist
Making innovation real
“Innovation should be based on practical technology that can deliver business objectives within reasonable time and cost, which can be absorbed by the business.” Life insurance CIO, India
© 2009 IBM Corporation7
46%
62%+35%
As Insightful Visionaries, CIOs are active members of the strategic team
... and are more often members of the most senior management team
High-growth CIOs reach out much more to the business to co-create and champion innovation…
Visionary CIOs recognize that successful innovation requires deep involvement with the business
“For us, innovation means generating diverse ideas to address a particular need. Then we distill them into an actionable plan that results in business improvement.” Energy and Utilities CIO, United States
”The CEO’s message to the board is that IT is necessary to be better as a company.”
Insurance CIO, Mexico
48%
67%+40%
+94%33%
64%
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
© 2009 IBM Corporation8
Innovation is not limited to IT solutions: Business-oriented plans rank high among CIOs’ visions of enhancing competitiveness
Ten most important visionary plan elementsInterviewed CIOs could select as many as they wanted
Source: IBM Global CIO Study 2009; n = 2345 High growthLow growth
© 2009 IBM Corporation9
As Able Pragmatists, CIOs make it possible to bring innovative plans to life while "keeping the engines humming"High-growth CIOs are expected to spend more time to enable the business and corporate vision
High-growth CIOs actively use collaboration and partnering technologies…
… and use third party business or IT services more often to improve their business agility “Like many other
companies, we are always exploring the possibility of utilizing external entities to
help manage the day-to-day IT operations so that,
internally, we can focus on more strategic initiatives.” Kurt Rao, Time Warner Inc.
28%-42%
Business and corporate vision enabler Core Technology services provider
46%
56%
+22%33%
53%+60%
+87%
IT Organization
22%
41%+86%
Entire Organization
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
15%
28%
© 2009 IBM Corporation10
Client Perspective: John Clarke, Senior VP & CIO, Nokia“Providing Insight to the Business"
© 2009 IBM Corporation11
Raising theROI of ITSavvy Value Creator andRelentless Cost Cutter
“We do recognize the strategic advantage of using data to support improved decision making … this is a key plank of our strategy going forward.” Consumer Products CIO, Ireland
© 2009 IBM Corporation12
44%
68%
54%
74%
As Savvy Value Creators, CIOs are skilled customer advocates that create value by truly understanding what customers want
High-growth CIOs proactively craft data into actionable information
... and anticipate much greater levels of integration and transparency with customers
In five years, CIOs expect end-customers to continuously explore new channels...
36%
58%
+61%
+37% +55%
“Having a strong data governance model that allows for a single view of the truth through accurate data is a strategic imperative.”Financial markets CIO, United States
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
© 2009 IBM Corporation13
As Relentless Cost Cutters, CIOs are perpetual seekers of savings who reduce costs through infrastructure and process standardization
Across our entire sample, CIOs spend about 14% of their time to take costs out of the ongoing technology environment
... and think business processes will be completely standardized and low cost
Many CIOs foresee a strongly centralized infrastructure in five years...
“Expectations have changed. It is about delivering a service through a simple process that can be repeated.” CIO, United Kingdom
“The balance between new projects and cost control is the dichotomy of my life.” Retail CIO, United States
50%
61%
+22%76%
76%
Of the 60 or so hours per week, some 9 hours are spent cutting costs
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
© 2009 IBM Corporation14
Client Perspective: Donagh Herlihy, Senior VP & CIO, Avon“Using information to Solve Business Problems "
© 2009 IBM Corporation15
ExpandingbusinessimpactCollaborative Business Leaderand Inspiring IT Manager
“IT is now seen as a key enabler to business goals and mission, and is engaged in delivering business strategy. Managing with defined goals and intent makes it easier for IT to align to business needs.”
Chris Ferguson, CIO, Elders Rural Services
© 2009 IBM Corporation16
61%
74%
46%
62%
As Collaborative Business Leaders, CIOs are true partners with other executives, jointly defining better business models
CIOs in high growth organizations more often receive high marks from their senior management team
53%
78%
+47%
High-growth CIOs are more closely involved in co-creating the business strategy with their fellow business leaders
+35%Decide on business strategy
as a member of the mostsenior management team
+25%Present business strategy
jointly with others on thesenior management team
Create business strategyas member of the team +21%
53%
66%
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
High or very high score by the entire senior management team for technology’s
contribution to the business
© 2009 IBM Corporation17
-51%
-67%
66%
81%
As Inspiring IT Managers, CIOs are consummate IT experts who foster IT expertise to extract and preserve critical business data
High-growth CIOs create IT centers of excellence to help realize business and technology innovation
High-growth CIOs do more to improve users’ access to data, as well as its quality
26%
44%
+69%
“We have centers of excellence for ERP and business applications, collaboration and security - some are more formal than others." Government CIO
+23%
Data is reliableand secure
Data is readily availablefor relevant users
+31%
High growthLow growthSource: IBM Global CIO Study 2009; n = 2598
67%
51%
© 2009 IBM Corporation18
Client Perspective: Tom Greene, CIO, Colgate-Palmolive“Providing Information in Time to Make a Difference"
© 2009 IBM Corporation19
Tuning tocontextA CIO’s Reality
© 2009 IBM Corporation20
The most effective CIOs consider the full range of possible influences when evaluating how each pair of roles should be prioritized
Stay abreast of market forces
Pay attention to geographical and regional particulars Know the availability of industry-specific skills
Understand how customer expectations are changing Know where competitive threats exist Understand how customer relationships are evolving
Understand the organization structure and culture Evaluate the overall business and IT situation
Request input from end users and IT colleagues to identify areas of strength, as well as improvement opportunities
Macroeconomic factors
Regional conditions
Industry characteristics
Organizational influences
Personal aspirations
© 2009 IBM Corporation21
Despite multiple forces in play, our findings show that CIOs are focusing on what matters most for them and their organizations
Continue the conversation at ibm.com/voiceofthecio
CIOs acknowledged the constant tension of integrating actions that sometimes seem oppositional
Over time, we expect CIOs to regularly assess how much emphasis is appropriate on each of the three pairs of roles in order to make innovation real, raise the ROI of IT and expand business impact
© 2009 IBM Corporation22
Questions
© 2009 IBM Corporation23
Additional information
For more information related to the IBM Global CIO Study, visit ibm.com/voiceofthecio
– Read industry and regional CIO perspectives on the IBM Global CIO Study's insights
– Watch respected CIOs from around the global share their lessons learned as they relate to the study results
– Take the CIO Study questionnaire yourself and see how your results compare to those of the IBM Global CIO Study
For other details on CIO strategies and insights, visit ibm.com/cio
24 © 2009 IBM Corporation
2005 Study
2006 Study2004 Study 2008 Study
2007 Study
2008 Study2005 Study2003 Study
The IBM Global CIO study is part of our C-Suite series
Total Interviews: 450 Face-to-Face: 450
Total Interviews: 889 Face-to-Face: 267
Total Interviews: 1230Face-to-Face: 619
Total Interviews: 1130 Face-to-Face: 1100
Total Interviews: 404 Face-to-Face: 337
Total Interviews: 456
Total Interviews: 320 Face-to-Face: 320
Total Interviews: 765 Face-to-Face: 506
2010 Study
Total Interviews: 1917Face-to-Face: 1485
CFO Studies
2009 Study
Total Interviews: 2598Face-to-Face: 2598
CIO Studies
CEO Studies
CHRO Studies
2009 Study
Total Interviews: 393 Face-to-Face: 367
CSCO Studies
Total Interviews: 1564 Face-to-Face: 1564
2010 Study
IBM Institute for Business Value
© 2009 IBM Corporation
How do the priorities of the CEO, CFO and CIO align to address uncertainty and complexity?
CIO Study CFO Study CEO Study
Raising the ROI of IT Enterprise Cost Reduction Build Operating Dexterity
Aims for completely standardized, low-cost business processes
Foresees a centralized infrastructure Focuses relentlessly on taking costs out of
ongoing technology environment
Standardizes processes Enterprise-wide Shared Services /
COEs or Outsourcing Adoption Rationalizes and standardizes analytical
technologies Improves asset utilization
Simplify operations and products to better manage complexity
Use iterative strategies, make quick decisions and execute with speed
Integrate globally, increase cost variability and exploit partnering to increase agility
Expanding Business Impact Drive Information Integration Reinvent Customer Relationships
Proactively crafts data into information Adds value by proactively suggesting better
ways to use data Does more to improve users access to data,
as well as its quality “Knows” that end-customers expect no less
than world class integration and transparency
Uses different approaches to help the enterprise make decisions
Improves information delivery Drives data integrity
“Getting closer to customers” is the single most important theme in the organization
Better understand customer needs through collaboration and information sharing
Exploit the information explosion to deliver unprecedented customer service
Making Innovation Real Manage Risks Embody Creative Leadership
Truly integrates business and IT to innovate Proactively reaches out to the business to co-
create and champion innovation Has a clear view of the top technological
priorities that will enhance competitiveness Does practical things to help enable the
business and corporate vision, as business leaders expect
Combines insights from operational and financial data with external factors to better navigate uncertainty
Drives risk management through CFO direct reports of Controls and Risk Management
Improves compliance on security and privacy
Creativity is #1 leadership quality Drive change in the organization to stay
ahead of market and use of wide range of communication styles and tools
Break with status quo of industry, enterprise and revenue models