a guide to cio advisory services

WH

ITE PAPER

A Guide to CIO Advisory Services

1 A GUIDE TO CIO ADVISORY SERVICES

A Guide to CIO Advisory Services

Executive Summary

The IT function in both small and midsize businesses is under stress. For years,

increasing competition for financial resources has forced virtually every IT

organization to do more with less, use existing IT assets and keep systems online.

At the same time, wave upon wave of disruptive technology offers potentially more

compelling value propositions or competitive advantages than the traditional data

center infrastructure. The push and pull of these competing forces can simply

overwhelm the ability of the IT director—or controller, CIO, CFO, President or

CEO, whoever does the job—to evaluate alternatives, adapt to changing business

needs, or simply keep up with existing projects.

Meanwhile, frustrated with the pace of response from IT, some business managers

take matters into their own hands. Often called “shadow IT,” they may implement a

departmental solution or buy mobile devices, for example, without understanding

the full impact on the organization’s infrastructure, operations, or costs. Bypassing IT

controls can lead to unfortunate results: creating more data silos or more seriously,

compromising data security.

Other managers complain that lack of alignment between IT and the business unit

hampers their ability to achieve revenue or other goals. Such complaints undermine

the CIO’s ability to be an effective member of the management team.

In the worst case, the relevance of the CIO role is called into question. Critics

have argued that IT is merely a commodity and a cost center; it does not require

representation in the C-suite. If this point of view prevails, then no one speaks for

the applications and infrastructure, and nobody takes a holistic, enterprise-wide

view of the function it performs. Yet the IT infrastructure is called the “backbone”

for good reason; it holds the organization together and enables it to move towards

its business goals.

While many mid-market companies typically have a CIO in place, start-ups and

small businesses frequently don’t. Small business owners often act as their own

CIO. They may not have the right skills or the right team to build and manage

the infrastructure. Typically they have nowhere to turn for guidance. Certainly

they don’t have time to do their own job and the CIO’s at the same time.

In both small and mid-size businesses, CIO Advisory Services can enhance the

owner’s or CIO’s personal effectiveness in a number of ways (see sidebar).

This white paper explores the impact that such services can have on the business.

• By temporarily assuming part of the operational load, freeing them to identify needs, strategize, and partner with business executives

• By acting as an independent advisor or project manager with comparable senior technology management experience, but greater expertise in a particular domain

• By coaching and mentoring the IT Director/CIO as needed

• By augmenting available resources with project staffing

How can CIO Advisory Services enhance the CEO/Owner’s or IT Director/CIO’s personal effectiveness?


The Changing Role of the CIO

For simplicity, let’s agree to call the person who manages IT the CIO, because no

matter what their actual title is, they have certain role requirements to fulfill. These

are more formalized in larger organizations and more ad hoc in small ones. Building

and maintaining the infrastructure—the technology, applications, services, and

staffing used to support the business—used to be the CIO’s only job. Now it is a core

competency, one of the four main roles the “next-gen CIO” is being asked to play,

says Ray Wang, CEO and analyst, Constellation Research. The ideal CIO will play all

four roles; the less well-rounded one risks losing some of his functions to business

leaders and teams. Wang says this is starting to happen in many of his firm’s clients.

These roles, or “personas” as Wang calls them, are Chief Infrastructure Officer,

Chief Integration Officer, Chief Intelligence Officer, and Chief Innovation Officer.

Their profiles appear in Figure 1 (“How do you spell CIO?”), along with notes on three

dimensions of the role: How much of the total IT budget does that persona control?

Does that role require a technology or a business focus? Is it internal-facing or

external-facing? These roles move across the spectrum from an internal-facing

technology focus to an edgier position with a dual technology/business, internal/

external orientation—and from an operational to a strategic perspective.

A report from the Info-Tech Research Group recommends a similar movement from

a purely technical to a combined technology and business focus. The title tells why:

“Being a Strategic Enabler Ensures the CIO Role Remains Relevant.” According to the

report, “as long as CIOs act like glorified operational managers, they will jeopardize

the strategic influence of the CIO position. There will always be a need for someone

to maintain servers and networks, but this person will not be needed at the executive

table. Today’s CIO must find the balance between business needs and technology

capabilities. This CIO needs to turn IT into an internal consultancy that will work to

leverage the technological infrastructure to build new business functionality.”i

What are the 4 personas of the Next Generation CIO?

1. Chief Infrastructure Officer

2. Chief Integration Officer

3. Chief Intelligence Officer

4. Chief Innovation Officer

FIGURE 1

How do you spell CIO?

Role % of Budget Purpose Focus Faces

Chief Infrastructure Officer

65-70%Cost reduction; availability; maintenance of legacy systems

Technology Faces Internally

Chief Integration Officer 5-10%Bring together business processes, data, systems, legacy systems and newer cloud-based approaches

TechnologyFaces Internally &

Externally

Chief Intelligence Officer 10-15% Improve business user access to information Business Faces Internally

Chief Innovation Officer 5-10%Understand business strategy; keep up to date with disruptive technology

Business & Technology

Faces Internally & Externally

Source: 4 Personas of the Next Generation CIO (http://www.cio.com/article/671573/4_Personas_of_the_Next_Generation_CIO)


Info-Tech’s action plan for building such a consultancy contains these steps:

• Forge links between business and IT strategies and processes

• Develop indicators that link IT performance metrics to business goals

• Secure resources for innovations by identifying opportunities rather than by cutting costs

• Align IT team members with business units and leverage their capabilities by developing training opportunities

The CIO Advisory Services model is geared to work with management as well as

IT and systems staff in implementing these action steps.

The 80/20 Rule

Becoming a “next-gen CIO” is hardest on those who started as IT administrators, were

promoted up through the IT ranks as the business grew, and have had their hands full

just with maintaining availability. Wang notes that most CIO’s are in their comfort zone

for the first two roles—Infrastructure and Integration—but have to stretch to perform

as Chief Intelligence Officer and Chief Innovation Officer. These two roles, which

ideally control 20% of the IT budget, increasingly go to tech-savvy business leaders.

Every CIO knows the 80/20 rule, the Pareto principle, stating that 80% of the effects

come from 20% of the causes. The principle has many applications in business, such

as that 80% of your orders come from 20% of your customers. The application

that concerns us here is that based on Figure 1 above, 20% of the IT budget has to

produce 80% of the competitive advantages from technology.

As a practical example that companies of all sizes can relate to, consider the claims

associated with cloud computing. Rick Nucci, founder and CTO of Dell Boomi, which

markets a platform for integrating cloud and on-premises applications, says, “Cloud

[computing] is more than moving IT from the data center and scaling it into the cloud.

Customers currently have an 80/20 paradox – 80% is maintaining the stuff you already

have, 20% is getting to innovation. This paradox is a main driver for moving to the

cloud. Cloud provides the fundamentals (free trials, automatic upgrades, constant

streams of innovation, reduced CapEx expenses) to flip flop the 80/20, so IT can

deliver more innovation to their customers and focus less on maintenance.”ii

And cloud computing is not alone in promising competitive advantages from innovation.

Especially in mid-size and larger companies, various other disruptive technologies—

Bring your own device (BYOD), mobile technology, social media, Big Data—clamor

for attention. If they don’t get it from the CIO, they get it from business champions.

IBM’s “State of Marketing 2012” survey found that fully 60 percent of marketers point

to their lack of alignment with the company’s IT department as the biggest obstacle to

reaching today’s consumers across new channels including mobile devices and social

networks.iii Capgemini says that “The exploitation of Big Data fuels a step change

in the quality of business decision-making,” but the biggest obstacle to taking that

step for most organizations is finding qualified data analysts.iv

“Customers currently have an 80/20 paradox – 80% is maintaining the stuff you already have, 20% is getting to innovation. This paradox is a main driver for moving to the Cloud.”

Rick Nucci, Founder and CTO, Dell Boomi


Which of these disruptive technologies has the most promise? What competitive

advantage do they offer your organization? Which solutions should you select?

How can you combine technologies and what could you accomplish if you did?

How would that impact the systems environment and the bottom line? Should you

migrate some of the legacy systems to the cloud in order to free up time and money

to retrain and reallocate staff into other roles such as data analysts and application

developers? These are the kinds of questions an internal IT consultancy under the

direction of the Chief Intelligence Officer and the Chief Innovation officer would field.

If such an internal consultancy does not exist, CIO Advisory Services can fill this gap.

“From a technology perspective, it’s the best time in history to be in business as more

capabilities are available at a lower flexible price point than ever before. However,

navigating those options and turning them into business profits can lead to decision

paralysis,” says Ryan Risley, Managing Director of CIO Advisory Services, Brittenford

Systems. In addition to moving decisions along, a virtual CIO can help the whole

organization focus on the big picture—a holistic view of business objectives and the

infrastructure to support them.

See the Big Picture

For the record, let’s define IT infrastructure as cio.gov does: “IT infrastructure

consists of the equipment, systems, software, and services used in common across

an organization, regardless of mission/program/project. IT Infrastructure also

serves as the foundation upon which mission/program/project-specific systems and

capabilities are built.” Many argue—correctly, we think—that human resources are

also vital components of the infrastructure.

Infrastructure is the glue that holds the business together, and it is your biggest IT

investment. Once built, the infrastructure provides a solid platform and enables

business agility that empowers future application choices. Choosing and configuring

the right components to build an IT infrastructure that is reliable, appropriate for

your organization, and able to grow with it is a major challenge. That is why it comes

first among “4 Reasons Why IT Matters More than Ever,” the title of a recent article

in CIO magazine.

Its author asks, “Who selects these vendors? Who comes up with the jargon necessary

to translate business requirements into technical mandates? Who sorts through the

requests for proposals?”v Even if IT is outsourced or consumed as a cloud service, these

and similar tasks remain essential. As applications move to the cloud, infrastructure

support staffers will evolve into vendor relationship managers.

Ryan Risley, Managing Director of CIO Advisory Services, Brittenford Systems


The rapid rate of technological change has already exceeded any company’s ability to

absorb and synthesize, and is still increasing. However, unlike most other areas of the

organization, IT has formalized and systematized practices for change management—

which is arguably the Chief Innovation Officer’s most necessary skill. It is based

on taking a holistic perspective of the network architecture, process interactions,

application capabilities and data dependencies that must come together for end-to-end

delivery of IT services. You can never change just one thing in a systems environment;

everything is interconnected. This realization gives IT practitioners respect for the

Law of Unintended Consequences.

The CIO—and any virtual CIO engaged for special needs—must be someone who

understands the big picture, but can translate it and motivate people to take next

steps. Otherwise, the inherent complexities become paralyzing.

How to Choose a Virtual CIO

We are in the middle of a paradigm shift comparable to the infiltration of personal

computing into the “glass-house” data center of the 1980s and the Internet explosion

of the 1990s. Most businesses will need help in planning and managing the transitions

ahead. What should they look for and what should they expect from the CIO

Advisory Services model?

Figure 2 (“Advisory Services Model”) offers a way to visualize the four pillars

of this model: strategy, domain expertise, mentoring, and resource augmentation.

An established CIO Advisory practice is likely to offer all four components in a

unique combination of personal strengths, platform- and industry-specific skills,

and business know-how. Your own needs determine which offering has the most

to contribute at a given time.

FIGURE 2

CIO Advisory Services Model

Mentoring

Help the CIO or his reports develop strategic skills

Strategy

Act as trusted advisor, sounding board or second opinion

Resource Augmentation

Enable IT to increase capacity in needed areas on a project basis

Domain Expertise

Bring specialized knowledge to bear on technology or business decisions


Ideally, a virtual CIO will have working experience with multidisciplinary IT teams and

many different organizations. The project at hand may dictate whether to engage a

specialist in your vertical market or a technology expert with broad cross-industry

implementation experience. A vertical specialist is a good choice if you are looking for

business strategy as part of the advisory package. Emphasizing technical credentials

is a good idea when you need a roadmap or a second opinion.

Unlike management consultants who provide a plan then leave you to execute it, a

virtual CIO can give you strategic direction and also can execute on the strategic,

tactical, or operational level, whether alone or with special project staffing. And unlike

an interim CTO, a virtual CIO is not a candidate for a full-time position with your

company. They are engaged on a project basis but need to think strategically about

where the project fits in. From an outside perspective, a virtual CIO can often keep

an organization focused on the end business objective to be achieved, and not just

the particular application or process that needs to be built or fixed.

CIO Advisory Services, such as the sample services described below, can help the CIO

build alliances among stakeholders, translate between IT and the business units,

motivate and mentor effectively, and keep the big picture in focus for everybody.

This holistic approach helps to integrate systems, save costs, lower risks, increase

innovation and produce successful outcomes.

Sample CIO Advisory Services The range of possible CIO Advisory Services is limited only by the buyer’s needs

and the provider’s capabilities. Here are the most popular categories.

• IT Consultation — Expert, unbiased advice on a broad variety of issues. This is tailored

to the organization’s need, size, culture, and cost preferences. It may consist of providing

a second opinion; briefing on industry best practices (e.g., for disaster recovery); building

a support structure (e.g., for mobile device support); or doing the problem analysis, plan,

cost justification and presentation to the Board, among other possibilities.

• Cloud Readiness Audits — Assessment of existing systems architecture, recommendations

on which operational, financial, and accounting processes that could be moved to the

cloud, and how to do so.

• Rescue Assessments — Highly focused, impartial review of breakdowns in systems,

applications, infrastructure and more. No finger-pointing, just a solid plan to fix the

problem and get you back on track.

• Support for IT Relocations — Experienced and thorough guidance in planning and

executing the relocation of servers, networking and other computing assets to ensure

efficiency, safety and continuity of operations.

• Mentoring — Skills assessment and development; executive coaching; linking business and

technology objectives to team performance; requirements definition for strategic staffing.

“From a technology perspective, it’s the best time in history to be in business as more capabilities are available at a lower flexible price point than ever before. However navigating those options and turning them into business profits can lead to decision paralysis.”

Ryan Risley, Managing Director of CIO Advisory Services, Brittenford Systems


CIO Advisory Services Client ProfileCompany: KippsDeSanto & Company, www.kippsdesanto.com

Business: Investment bank for growth-oriented defense and technology companies

Client Perspective:

Managing Director Kevin DeSanto says, “When we started our business, we faced a

fundamental choice: should we take charge of the IT function ourselves or outsource it?

We had limited expertise as technology managers—and even less time—so our startup

IT infrastructure did not meet our needs. We found an excellent professional services

firm that listened to our needs and offered to act as our virtual CIO. The Brittenford

team has been a crucial partner in our growth by providing deep, broad, and responsive

service, ranging from trouble-shooting to provisioning to advice on best practices

for security policies and procedures.”

Key Requirements:

• Fast growth path, cost effective structure, high performance collaboration platform, proven reliable platform

• Sample deliverables: fast and secure large file repository, centralized pipeline management, and BYOD policy guidance

Key Challenges:

• Needed to protect their intellectual property, ensure high staff productivity, and provide anywhere access

• Had outgrown its in-house Client/Deal Management system

Key Outcomes:

• Provided mobile device management and secure file access to enable analysts to work remotely as needed

• Improved performance of document collaboration

• Increased visibility into deal pipeline and key client interactions via MSCRM online

Kevin DeSanto, Managing Director, KippsDeSanto & Company


About Brittenford

Brittenford Systems is a professional services firm that helps organizations harness

the power of their financial applications. The firm implements, trains, and supports

Microsoft Dynamics GP, Dynamics SL, and Dynamics CRM, along with Intacct, the

leading cloud financial management system. Brittenford Systems also offers cloud

engineering services, strategic infrastructure consulting and CIO advisory services.

For more information on Brittenford Systems, visit www.brittenford.com.

Brittenford Staffing is a full-service staffing service specialized in all aspects of

Microsoft Dynamics. For more information, visit www.brittenfordstaffing.com,

or call 703-860-6945.

For a complimentary CIO Advisory consultation, contact Brittenford Systems above.

References

i. infotech.com http://www.infotech.com/research/being-a- strategic-enabler-ensures-the-cio-role- remains-relevant

ii. forbes.com http://www.forbes.com/sites/ciocentral/ 2011/12/03/executive-profiles-disruptive- tech-leaders-in-cloud-computing-rick-nucci-dell-boomi/

iii. crmadvocate.com http://www.crmadvocate.com/idb/ 41080b.html?goback=%2Egde_4371519_member_127814611

iv. in.capgemini.com http://www.in.capgemini.com/insights_and_ resources/news/capgemini-report-shows- rising-impact-of-big-data-on-decisionmaking/ ?goback=%2Egde_4371519_member_ 128700907

v. cio.com http://www.cio.com/article/711873/4_Rea-sons_Why_IT_Matters_More_Than_Ever?page=1&taxonomyId=3174

http://www.brittenford.com

http://www.brittenfordstaffing.com

http://www.cio.com/article/2393834/cio-role/4-reasons-why-it-matters-more-than-ever.html


