the role of the cio carine bonnet john maynard gavin shelton rositsa tsokova sarah wilkinson 1
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The Role of the CIOCarine BonnetJohn MaynardGavin SheltonRositsa TsokovaSarah Wilkinson
1
Learning Objectives
Why this topic is important for the General Managers CIOs can add real value to the business Business skills vs. IT skills
What you will learn from our presentation CIO statistics and information from scholarly
research CIO role in US & Europe Real interview results with CIOs of Anheuser-
Busch, Smurfit-Stone and NSI2
J
CIO Role
CIO – Defined Chief Information Officer (CIO) is an “executive responsible for development, implementation, and operation of Information Technology policies. CIO oversees all information systems infrastructure within the organization, and is responsible for establishing information related standards that support enterprise goals.”
(source 1)3
R
CIO Role
“The role of the modern CIO is less being purveyor of technical solutions and more being a business partner” - CIO Bob Worralls - Sun Microsystems
“ Further, CIOs are expected to be business partners who understand the business aspects of the organization. Given that IS permeates all business functions, the CIO ideally needs to also have a holistic understanding that crosses functional boundaries” - Karahanna and Watson
“The CIO position is also continuously evolving. One key is that the CIO must develop both a business and IT perspective.” - Patten, K.
(source 2,30,31)4
R
3 Types of CIOs
5
Business Strategist
• Developing/refining business strategy• Developing external customer insight• Developing business innovations• Identifying opportunities for competitive
differentiation
Function Head• Redesigning business processes• Aligning IT initiatives and strategy with business goals/strategy• Cultivating the IT/business partnership• Leading change efforts• Implementing new systems and architecture• Mapping IT strategy to overall enterprise strategy
Transformational Leader• Managing IT crises• Developing IT talent• Improving IT operations• Improving system performance• Security management• Budget management
(source 3)C
6
Type of CIO related to the company needs
G
Type of CIO related to the company needs
Function Head
• Restructuring or major improvement of the ISs .
• Security and compliance need modernizing.
Transformational Leader • IT organization
needs major strategic realignment with business goals
• New architecture standards and enterprise-level systems need to be implemented
Business Strategist • The business needs for
IT envision and enable new market opportunities and more sources of innovation.
• The business needs exploit new technologies that make possible new types of competitive differentiation/advantage
7(Source 3)
G
8
CIO Role
(source 3) Based on 558 companies
S
9
CIO Role
CEO COO CFO Corp CIO Other0%
10%
20%
30%
40%
50%41%
14%
24%
5%
15%
(source 3) Based on 558 companies
R
CIO Demographics
86%
14%
Gender
Males
Females
10
California study of their 200 largest companies found only 4 companies have female CIOs. (source 4)
(source 3) Based on 558 companies
S
CIO Annual Compensation
Declin
ed
< $
100
$100
-125
$125
-150
$150
-175
$175
-200
$200
-225
$225
-250
$250
-300
> $
300
0%
5%
10%
15%
20%
25%
Annual Compensation
11(source 3) Based on 558 companies
S
CIO Demographics
71%
29%
Member of Executive Management Committee Yes
No
(source 3) Based on 558 companies 12
R
CIO IT Budget
13
> $100 $50-$99.9
$10-$49.9
$5-$9.9 < $5 Don’t Know
0%5%
10%15%20%25%30%35%40%45%
10% 8%
25%
16%
40%
1%
IT Budget
* In Millions
(source 3) Based on 588 companies
The slow down of the US economy in 2008 has affected the IT budgets of the companies.According to the findings of Forrester , a US-based research company, 43 % of companies have already cut their overall IT budgets in 2008, and 24 % have put discretionary IT spending on hold.
(source 5)
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IT Spending in EUROPE
IT spending in Europe versus the US:
UK businesses and governments will spend €61 billion ($79 billion)
German businesses and governments will spend €57 billion ($74 billion)
France and Italy spend about two-thirds the size of the UK ($52 billion) Spain, Netherlands, and Switzerland will spend €15 billion to €20 billion each
($20 to $25 billion)
(source 6)
2006 (US$Billion) 2007 Growth 2007 spending
Europe $565 3.7% $586
The US $721 2.9% $741
14
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EUROPEAN CIO’s INVOLVEMENT
Role of the CIO Europe France
CIO involved in company decision making
47% 33%
• Most European companies see the CIO as a Technician who has no role in the company’s strategic decisions and innovations.
(sources 32,33)
15
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CIO Tenure
“State CIOs are averaging 26 months in their jobs, which is why state and local chief information officers joke that CIO stands for Career Is Over.” (Source 14)
“Rob Tabb is the 13th head of IT in 26 years, according to a longtime employee. This turnover rate is even more stunning considering that the CEO has been with the $3.4 billion chemical company for more than 45 years.” (Source 15)
16
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CIO Tenure
Average CIO Tenure Since 2003 Average CIO tenure climbed from 2003 to 2007 but dropped
in the 2008 State of the CIO poll results. (Data not available for 2005)
Year Average Tenure (Years)* 2003: 4.3 Years 2004: 4.5 Years 2005: N/A 2006: 4.9 Years 2007: 5.1 Years 2008: 4.4 Years (Notice the drop)
*Number surveyed = 558(source ) 17
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CIO Tenure
Been in the Job Long? CIOs who have held their job for less than 2 years has
increased by 7 % since the “State of the CIO” survey in 2006
How Long Have You Been In Your Current Position?
18
< 2 Years
2-5 Years
5-10 Years
10+ Years
2008 31% 34% 28% 7%
2007 27% 33% 29% 11%
2006 24% 35% 31% 9%
(source 3) Based on 558 companies
S
CIO Tenure
“You only stick around by delivering results. CIO’s have demonstrated they are good business managers.” Mark McDonald, VP of Gartner Inc. referring to the increase in tenure of Chief Information Officers. (Source 27)
CIOs must possess leadership qualities to last in the business “The ability to lead and motivate people is a must.”
-Richard Hoppe, Director of IT, Anheuser-Busch (Source 28)
“Leadership is the traditional role of the CIO…the CIO is personally instrumental in the organizational exploitation of IT.”
Feeny / Willcocks (Source 29)19
S
How CIOs Spend Their Time
Your company’s executives
Your IT staff or team
Non-IT employees
IT vendors/ service
providers
External business
partners/vendors
Base 555 555 555 555 555
51% or more
0% 14% 0% 0% 0%
41% to 50%
3% 22% 0% 0% 0%
31% to 40%
10% 30% 5% 0% 1%
21% to 30 %
31% 23% 22% 4% 5%
11% to 20%
33% 8% 39% 24% 18%
10% or less
23% 2% 31% 71% 66%
0% 0% 1% 2% 1% 11%
Mean 22% 40% 18% 11% 9%
Median 20% 40% 20% 10% 5%20
• 2 main viewing points• Group• Amount of time
• Both mean and median show most time is spent with …
1. IT staff or team (40%)
2. Company’s executives (avg. 21%)
(source 3) Based on 555 companiesG
How CIOs Spend Their Time
Function Head 37%
Transforma-tional Leader
51%
Business Strategist
12%
Chart Title
*(source 3) (Based on 542 respondents’ choices of which activities comprise their primary focus
“It’s not surprising that most CIOs are consumed with transformational duties and alignment, and that an
additional large percentage are homed in on the IT function and its operations. Few CIOs have the luxury of
spending most of their time on strategy; those that do have earned it by building a smooth-running,
efficient IT operation and a strong partnership with the business that keeps the portfolio in synch with
business needs.” –CIO Magazine (source 3)21
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How CIOs Spend Their Time
Looking towards the future…the importance of a business outlook.
“When chief information officers (CIOs) first entered the executive suite…they were not exactly a popular addition. ‘More comfortable with computers than people’ was a common verdict on CIOs who had risen through the information system ranks. Employers seemed to face a simple trade off: CIOs with depth and breadth of technology experience or those with general business and interpersonal skills, such as the ability to exercise influence within the organization.” - Mary Kwak
“We believe that this is the future-state of the CIO role, which in time will become the mandate for
most CIOs at most businesses. None of this is to say that we, or any other CIO, should turn our backs on the operational or IT transformational aspects of our role. But as the position evolves, we are spending proportionally much more of our time as strategists versus the other aspects of the role.” - Louis Ehlrich, CIO of Chevron Global Downstream and Vice President of Strategy and Services.
22
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(Source 18, 3)
Evolving CIO Leadership RoleBusiness skills vs. Technical skills
Established CIOs spend about 2/3 of their time on non-technical issues
The emphasis on non-technical issues shows the leadership role of CIOs is changing, with a greater focus on business issues and improving organizational growth
23
“He realizes that his role is not just about technology, but is concerned with business transformation, business success, and business leadership.” Jerry Luftman and Rajkumar Kempaiah on Cendant Corporation CIO Lawrence Kinder
23%
16%
8%9%7%
37%
Manage Business relationship Strategy HR
IT Governance Non- IT tasks IT Issues
(source3) Based on 558 companies
(source 35)
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CIO Interviews
24Mark O’Bryan
Joseph Castellano
Mary Ann Jacoby
Main Facts of Companies Interviewed
Smurfit-Stone Anheuser-Busch NSI
Type of Company Paper/Box/Recycler Mainly alcohol and entertainment
Marketing/Advertising service
2007 Sales $7.42 billion $ 16.69 billion ?
2007 Net Income $ -115 million $ 2.12 billion ?
Location (Main Offices)
Chicago and St. Louis
St. Louis (home) with breweries and offices internationally
St. Louis (home), New York, Los Angeles, Detroit
Number of employees
22,700 30,849 200+
(source 19,20,21)
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Companies Background Information
Companies Anheuser-Busch, Inc Anheuser-Busch
International, Inc. Anheuser-Busch
Packaging Group Metal Container Corp. Eagle Packaging Inc. Longhorn Glass Corp.
Busch Entertainment Group
Manufacturers Railway Co.
Anheuser-Busch Agricultural Operations
St. Louis Refrigerator Car Co.
Anheuser-Busch traces its origins back to the Bavarian brewery, which was established in 1852. 1860 - Eberhard Anheuser acquired the Bavarian brewery and renamed it E. Anheuser & Co. In 1864 Adolphus Busch, joined the company that would later become Anheuser-Busch.
48.8% of U.S. beer sales 2007 Net sales $16.69 billion
Net Income $2.12 billion 30,849 full-time employees
27(source 22)
S
28
North America’s premier packaging company
Smurfit-Stone Container Corporation was formed November 18, 1998, when St. Louis- based Jefferson Smurfit Corporation (JSC) merged with Chicago-based Stone Container Corporation.
Home offices in Chicago and St. Louis World’s largest paper recycler Industry’s largest paper based
packaging company
Size 22,700 employees 2007 net sales were $7.42 billion with a
net income of about $ -115 million
Capabilities Corrugating packaging (world’s largest) Mill products Recycling solutions Point-of-purchase displays Packaging Equipment
29
Some factories located in Canada, Mexico, and China
(sources 23,24,25)
R
Was started as a commercial art company in 1919
Family owned until 2005 (still private company)
Offices in St. Louis (Home), Los Angeles, New York, and Detroit
Largest advertising agency in St. Louis
200 employees Core Components
Asset Management Co-op and Compliance Sales Promotion Print on Demand Research and Intelligent New Media Solutions
Major Clients
30(source 26)
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IT Departments structure
32
VP/CIO
Business Technology
Project Mgmt &
TechnologyOperations“Plan” “Build” “Run”
• Faces business units – primary contact for all I.T.
• Develops deep understanding of how business works
• In partnership, develops I.T. Strategies with “customer”
• For new applications, lead in designing requirements, effective implementation, benefits
realization• Provides user training,
maintenance, minor work on systems
• Innovates how information is obtained, used to drive business unit performance
• Manages all new major projects,developments• Manages consistent, quality
approach for system developers• Leads, coordinates development,
updating of enterprise-wide systems (SAP,
Siebel, etc.) and tools (e.g. “business intelligence)• Develops, applies expertise inI.T. “state of the art”
• Runs the systems that deliver business applications
• Delivers and maintains I.T. infrastructure and customer support services for the business, with ongoing focus on availability, performance,
security, customer service, and cost effectiveness• Anticipates and plans future
infrastructure and enterprise systems needs for the business,
including capacity growth and R&D of new technologies• Partners with BusinessTechnology and PMT
Accounting HR
Anheuser-Busch IT
(source 17)
G
Anheuser-Busch IT Breakdown
About 1200 people within IT worldwide
Budget is about 1.6% net sales (about $267 million) Didn’t disclose in detail Largest percentage went to salary
“Money buys brainpower” – Joe Castellano
33(source 17)
G
34
Smurfit-Stone IT
DemandManagement
ContainerKeith Fehd
Mill/Board Sales/Supply Chain/ Reclamation
Greg Schissler
Finance & HRChuck Miller
ApplicationsDoug Bolen
Infrastructure & ArchitectureJim Adams
SupplyManagement
John KnudsenSteve StricklandMatt Denton
Sonny JacksonMath BlanchardMike Oswald
Paul KaufmannRon Hackney
Operational/Functional
Owners
IT
(source 26)
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Smurfit-Stone IT Breakdown
About 320 people within IT worldwide Budget is about $89 million (1.2 % of
the Net Sales) $30 million salary $25 million depreciation The rest is used for
consultants/outsourcing/hosting fees
35(source 26)
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NSI IT
36(source 18)
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NSI IT Breakdown
About 30 people within IT Budget is still being worked on
Since 2005, all budgets were individual per project thru CFO
2009 will be the first budget year brought to senior management
Salaries are most expensive within IT budget
IT is most expensive department at NSI
37(source 18)
S
CIOs Background
Joseph Castellano
Received a degree in journalism from Northwestern University
Got hired into AB in the marketing department where he spent several years
He served as Vice President of Retail Marketing from 2001-2004
He then served as Vice President of Corporate Human Resources from 2004 to March 2007
In march of 2007 he was named Vice President and Chief Information Officer
39(source 17,34)
“It appears that only highly interpersonally skilled individuals—regardless of technical background—advance to the CIO position.” – Enns et al.
C
Mark O’Bryan
Bachelors and Masters in mechanical engineering from the University of Dayton
Worked at GE in aircraft engineering, then audit staff, and supply chain and procurement—worked for GE for a total of 13 years
Brought to Smurfit-Stone right after merger and was appointed Vice President of Procurement in order to help two companies find synergy after merger—4 years
Was appointed Vice President of Operational Management
Moved up to Vice President of Strategic Initiatives in July 2005
In April 2007, Mr. O’Bryan was named Senior Vice President of Strategic Initiatives and Chief Information Officer
40(source 26)
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Mary Ann Jacoby Received a degree in Business Administration
(Management Information Systems) from UMSL Got hired by Ralston Purina as a Tech Specialist
in the Emerging Technologies Group Then served as the IT liaison to the
sales/business side “Claim to fame” was automating the district sales
team
Built technical training programs for sales teams
Left Ralston Purina and started her own consulting company (12 years)
“Boutique place for small to mid-sized companies that needed IT solutions to various business components”
Eventually sold off pieces of the company and just did web-based marketing services on her own
Got hired by NSI in 2005 in Technical Business Development (made up position)
Bridge gap between IT and sales Taught company IT vision instead of on a client by
client basis Was appointed CIO when old CIO left
Pushed IT development and vision alignment with business
41(source 18)
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Typical Day/Major Responsibilities
Typical Day/Major Responsibilities
Lots of non-technical duties Communicate with managers (often
times learning on technical issues) Keep senior managers up to date
Sits on Strategic Planning Committee Most time spent on being “face guy” to
business side to align IT with business and instill IT value in company
43(source 17)
J
44
• Manage 3 models from IT layout (see chart)• Operational• Demand• Supply
• Most time spent working with business working on change• Not very technical – trust managers under him• “Face guy” to business side to instill value in IT
• Money for projects (new $130 million IT project to centralize processes/system for factories)
• Communicate with senior manager to help align strategies
Typical Day/Major Responsibilities
(source 26)
G
45
Smurfit-Stone IT
DemandManagement
ContainerKeith Fehd
Mill/Board Sales/Supply Chain/ Reclamation
Greg Schissler
Finance & HRChuck Miller
ApplicationsDoug Bolen
Infrastructure & ArchitectureJim Adams
SupplyManagement
John KnudsenSteve StricklandMatt Denton
Sonny JacksonMath BlanchardMike Oswald
Paul KaufmannRon Hackney
Operational/Functional
Owners
IT
(source 26)
G
Typical Day/Major Responsibilities
Never a typical day (smaller, new company) Try to put structure in company
Never has been formal structure Managing priorities within IT and various department
Install overall vision for future Teach management team to have process in IT
“Sell it then build it” vs. “Have model already in place” Have departments understand how IT works
Align IT with company view Support sales team How IT will keep company competitive in the future
“I’m a very hands on CIO which is probably different from other corporate CIOs you have talked to.” –Mary Ann Jacoby
46(source 18)
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Who Does a CIO Report to?
Who Does a CIO Report to?
Mr. Castellano felt this debate is highly overrated The debate between CFO/CEO receives too much press
Reports to Mike Owens (Vice President of Business Operations) Has a great relationship
Because of previous positions held, relationships with all senior executives are excellent Trust from his dept. and from other senior managers Because of seniority, Mr. Castellano has a strong voice in
lots of decisions (Strategic Planning Committee)
48(source 17)
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Who Does a CIO Report to?
49
• Mr. O’Bryan Reports to CEO (Patrick Moore)• Used to reports to CFO (Charles Hinrichs) –focus on driving cost
down• Now focused on IT change so reporting to CEO helps this
process• Has worked for CEO in other positions at Smurfit-Stone (lots of
trust)• Give updates once every 3 weeks• Weekly update through email• Uses CEO to fire department up when needed• Thinks its better to work for CEO (keeps alignment with business
close)
(source 26)
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Who Does a CIO Report to?
Ms. Jacoby used to report to CEO (Mark Mantovani)
Now reports to COO (Dennis Griebel) Very close relationship Mr. Griebel helps lead support for IT
Is really important for Ms. Jacoby Views on reporting to the COO
Mr. Griebels play “traffic cop” for all the departments, so reporting to him makes sure IT and the other departments are in synch
50(source 18)
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IT/Business Strategy
IT/Business Strategy
Anheuser-Busch believes that by following these operating principles, we achieve optimal benefit from our information technology investments.
Deliver Business Value1. Information technology is pursued with the business in mind, and all work enables the business to perform better.2. All information technology work follows business strategies and process optimization. 3. We pursue optimum, not maximum, functionality – balancing resources, time, risk and cost – to provide true value
for the business and the end user.4. As information technology experts within the company, A-BIT seeks to influence the adoption of innovative
technology for competitive advantage.Use Technology Efficiently5. We pursue standardization and simplicity to optimize spending, drive security, and mitigate risk. Customization is
considered only when necessary to meet an overriding business need.6. We continually improve our services, ensuring that we deliver cost effective solutions to the business.Invest Wisely in I.T.7. We use an objective process to drive prioritization of I.T. investments, and escalate for decisions when conflicts
cannot be resolved.8. No information technology work is done without the total impact evaluated and considered – benefits weighed
against total cost, system complexity, and risk.Collaborate9. All involved are accountable for the business result, and we drive accountability through collaboration, openness,
and fact-based measures.10. All users of information technology are responsible for safeguarding the integrity, confidentiality, security and
reliability of A-B’s computer resources in their care.11. We build partnerships with our suppliers to enhance our capabilities and leverage our investments.Value People12. We believe in the value of our employees and invest in their development, engagement and retention.
52
Mr. Castellano serves on 17 person Strategy Committee that meets monthly
(source 17)
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Smurfit-Stone IT/Business Strategy
53
• Within cost structure, IT and business is very well aligned• Directly helps overall business=overall business support
• Strategy within supply chain thinking/connections with customers, IT and business alignment starts to get separated• Lots of managers don’t understand IT cost and how this investment
will create a more efficient system• Mr. O’Bryan constantly acts as “face guy” to various senior managers
• Show value in IT investment instead of just driving down IT department cost
(source 26)
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IT/Business Strategy
When the company was family run, IT was not involved within business strategy Company driven by sales
NSI just started implementing strategy committees for overall business and within IT
Ms. Jacoby works hard to push for strategy management within the company instead of just focusing on increasing revenue
Good relationships with senior management helps this process Educate CEO/COO on value of aligning IT with business
because of Co-op/Compliance (40% of sales)
54(source 18)
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Characteristics of a Successful CIOAll 3 CIOs said… People skills/communication is the most
important role Most of job is managing people and
communicating effectively with senior management
Communication skills are needed to sell management on IT ideas/investments
Understanding the business side of the company Helps in seeing where IT can truly be an
asset Respect gained from other senior
managers—support for IT projects/investments
Most of job falls between the IT department and the business side—one needs to understand that space very well
55(source 17,18,26)
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Top IT/IS IssuesWhat Keeps You Up At Night?
Top IT/IS Issues
Joseph P. Castellano, CIO of Anheuser-Busch The fact that he is still learning, while trying to maintain
the business aspect of the organization as well Reading IT literature to keep up with the pace of the
ever-changing market
57(source 17)
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Top IT/IS Issues
Richard Hoppe, Director of IT, Anheuser-Busch “Concern about the InBev acquisition on the employees
that have made A-B successful. “Planning for the attrition of 10-15% of my staff by year
end, as the result of the early retirement program announced in June.”
58(source 28)
S
Mark O’Bryan, CIO of Smurfit-Stone (SSCC) The new $130 Million IT investment in the corrugating
packaging segment on Smurfit’s Demand side of their IT structure
Due to the increased market demand of corrugating packaging
Attempting to maintain market share (as they are currently the world’s largest supplier)
59
Top IT/IS Issues
(source 26)
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Top IT/IS Issues
Top IT/IS issues and what keeps you up at night? Mary Ann Jacoby, CIO of The National System Inc.
“The fact that IT is always the last stop.” This was an IT/IS issue as well as something that remained in her thoughts after work.
IT was often given a project that they were expected to do, within a short range of time, with little notice.
“Can we manage priorities (Sales vs. IT department) to keep people motivated.”
60(source 18)
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Biggest Success/Most Troublesome
Biggest Success/Most Troublesome
Biggest Success/Failure Joseph P. Castellano, CIO of Anheuser-Busch
Success: The smooth implementation of SAP at Anheuser-Busch after a lengthy planning period
Richard Hoppe, Director of IT, Anheuser-Busch Success: “The reduction in proliferation of server computers
through the use of ‘virtualization’ technology.” (Enables a single computer to host multiple instances of Microsoft Windows operating systems, and thus multiple business applications.)
Troublesome: “Our corporate efforts to achieve compliance with the recent PCI standards* have been costly and slow.”
*”PCI DSS stands for Payment Card Industry Data Security Standard.”
62(source 17,28)
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Biggest Success/Most Troublesome
Biggest success/most troublesome issue Mark R. O’Bryan, CIO of Smurfit-Stone
Success: The approval of a $130 million budget increase for the I.T. department by the executive board. Mr. O’Bryan also mentioned the successful roll-out of PeopleSoft®
Troublesome: Attempting to stay cost-efficient on a daily basis with all of the new technology.
63(source 26)
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Biggest Success/Most Troublesome Biggest success/failure
Mary Ann Jacoby, CIO of The National System Inc. Success: Turnaround of the IT department morale as
well as forming a team that is as business minded as it is tech minded.
Troublesome: The compliance website used by NSI (compliance is 40% of NSI’s business). “The architecture is bad because the environments are split. Eventually, we will re-write the back-end.”
64(source 18)
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IT Governance
66
AB IT Governance
Accounting HR
*Alignment with Engineering I.T.
VP/CIO
Business Technology
Project Mgmt &
TechnologyOperations
(source 17)
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AB IT Governance
IT Governance Joseph P. Castellano, CIO of Anheuser-Busch
Strategy Committee (which Castellano sits on) is the main decision-making body. (Duopoly)
Richard Hoppe, Director of IT, Anheuser-Busch “In a current state, many decisions are made by the
individual business units based on specific needs and the level of executive influence that they wield.” (FUEDAL)
67(source 17,28)
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IT Governance
68
COOSteve Klinger
COOSteve Klinger Human Resources
Ron Hackney
Human ResourcesRon Hackney
CIO/Strategic Initiatives
Mark O’Bryan
CIO/Strategic Initiatives
Mark O’BryanCFO
Chuck Hinrichs
CFOChuck Hinrichs
Container SalesSteve Strickland
Container SalesSteve Strickland
Chairman & CEOPatrick Moore
Chairman & CEOPatrick Moore
LegalCraig Hunt
LegalCraig Hunt
CommunicationsSue Neumann
CommunicationsSue Neumann
ContainerManufacturingJohn Knudsen
ContainerManufacturingJohn Knudsen
MillsSonny Jackson
MillsSonny Jackson Reclamation
Mike Oswald
ReclamationMike Oswald
Board Sales/Supply Chain
Math Blanchard
Board Sales/Supply Chain
Math Blanchard
SourcingDavid Harrison
SourcingDavid Harrison Transportation
Peter Burke
TransportationPeter Burke
(source 26)
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69
Smurfit-Stone IT
DemandManagement
ContainerKeith Fehd
Mill/Board Sales/Supply Chain/ Reclamation
Greg Schissler
Finance & HRChuck Miller
ApplicationsDoug Bolen
Infrastructure & ArchitectureJim Adams
SupplyManagement
John KnudsenSteve StricklandMatt Denton
Sonny JacksonMath BlanchardMike Oswald
Paul KaufmannRon Hackney
Operational/Functional
Owners
IT
(source 26)
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NSI IT Governance
IT Governance NSI still remains very sales driven, and thus,
much of the IT demands and decisions concerning what the company needs comes from the Sales Department and what the client is requesting.
When making IT decisions (more money, new systems, etc.) it is very important to “put the information in ‘bottom line’ terms for the CXOs. They need to understand the principals of risks especially,” when making IT decisions.
IT Monarchy
70(source 18)
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71
Anheuser-BuschJoe Castellano
Smurfit-StoneMark O’Bryan
NSIMary Ann Jacoby
Survey
Tenure
1 year, 8 months 1 year, 7 months About 2 years All 3 represent about 19% of
CIOs
ReportVP of Business
OperationsCEO COO CEO-41%
COO-14%
Background
Marketing/HR Engineering/ Operations
IT/Marketing IT-77%Marketing-1%
Eng.-4%Operations-3%
Type of Leader
Transformational Leader/Business Strategist
Transformational Leader/Business Strategist
ALL 3 Function Head-37%Transformational Leader-51%Business Strategist-12%
Looking Back…
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The Big Picture-An Understanding of Business and People
“Having a CIO that understands the importance of people skills and an understanding of the business side of the company not only allows him to be an effective communicator to senior management and his department, but also gains the trust and respect of senior management and his department. It is this trust and respect that allows him to be successful as a CIO.” – Rick Hoppe, Director of IT Anheuser-Busch
72
(source 28)
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