Nicolas Betbeder-Matibet, Managing Director, MEGA Asia - ©MEGA June 2012

CIOs: How to Become the CEO’s Business Partner

A Best Practices eBook

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The Agenda for CIOs in 2012

According to Gartner*:

“CIO strategies concentrate on eliminating IT and enterprise distortions.”

*Gartner, Inc., “Executive Summary: Amplifying the Enterprise: The 2012 CIO Agenda”, Published: 1 January 2012, Analyst(s): Mark P. McDonald | Dave Aron

CIO IT strategies concentrate on eliminating IT and enterprise distortions

CIO IT strategiesRanking of IT strategies CIOs selected as oneof their top 3 in 2012

Implementing cloud solutions (SaaS, IaaS, PaaS)

Improving the IT organization and workforce

Implementing business process improvements

Consolidating IT operations and resources

Implementing mobility solutions

Improving business alignment and relationship

Improving IT management and governance

Expanding the use of information and analytics

Developing or managing a flexible infrastructure

Reducing the cost of IT

Delivering business solutions

Ranking 2012 2011 2010 2009 2008

1 2 1 3 1

2 3 3 2 10

3 1 8 11 11

4 7 7 10 9

5 4 6 4 7

6 10 2 1 2

7 18 * * *

8 5 9 9 12

9 8 4 5 6

10 6 10 8 3

11 9 * * *

*Not an option that year

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CIO and CEO priorities are not the same

“The common thread is that CIOs are looking slightly more tactically, functionally and operationally – playing within the current business context; CEOs are looking slightly more strategically, structurally and organizationally – playing with the business context.”

*Gartner, Inc., “A Comparison of the CEO and CIO Surveys Finds CIOs Must Elevate Their Focus”, Published: 21 March 2012, Analyst(s): Dave Aron, Mark Raskino

Comparison of CIO and CEO Business Priorities

From the CIO Survey From the CEO Survey

Implementing finance and controls

Improve governance, compliance, risk and security

Attracting and retaining the workforce

Improving marketing and sales effectiveness

Improving efficiency

Managing and delivering operational results

Creating new products and services (innovation)

Expanding into new markets or geographies

Increasing productivity

Reducing enterprise costs

Attracting and retaining customers

Increasing enterprise growth

Implement new and improved technology

Customer focus

Create new products and services

Improve governance, risk, compliance and security

Execute acquisitions, mergers and partnerships

Consolidating, standardizing and streamlining operations

Talent and workforce management/development

Implementing finance and controls

Increase profitability

Expanding into new markets or geographies

Reducing enterprise costs

Increasing enterprise growth

Source: Gartner (March 2012)Significantly higher from CIO perspective

Significantly higher from CEO perspective

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What are CIOs expected to contribute...

… to become a CEO business partner?

Reduce enterprise costsvia better efficiency

Improve governance,risk and security

Consolidate, standardize and streamline organization

Support enterprise growth and expansion

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CIOs have a three-step journey

Support and drive business transformation

Maximize performance of business operations

Inspire and enable strategic decisionsStep 3

Step 2

Step 1

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Maximize performance of business operations Step 1

Enable business agility(vs. additional barriers to change)

Maximize performance of business operations

Provide business services(vs. provide tools)

Challenge 1Deliver services supporting

business processes according to the appropriate SLAs.

Challenge 2Contribute to the flexibility

and business agility of the organizationthrough adaptable and agile IT assets.

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Support and drive business transformationsStep 2

Manage transformation to deliver business benefits

(vs. deliver project)

Support and drive business transformation

Enforce a business-driven change management process

(vs. technology-driven)

Challenge 1Determine and prioritize the changes needed in different

business areas through engagement with business leaders

Challenge 2Execute and deliver the changes,

ensuring that the business impacts of the changes are understood

and appreciated within the enterprise

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Inspire and Enable Strategic DecisionsStep 3

Inspire and enable strategic decisions

Position the IT strategy as a part of the business strategy(vs. implementation plan)

ChallengeClosely engage with business leaders in a two-way, collaborative process to position the IT strategy so

that it supports and contributes to the business strategy

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Three Key Practices for CIOs

Support and drivebusiness

transformation

Maximizeperformance of

business operations

Inspire andenable

strategic decisions

Step 3Step 2Step 1

Key Practice 3Transformation& Governance

Key Practice 2IT Asset

Management

Key Practice 1Enterprise

Architecture

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With major trends like cloud and mobility, architecture has a renewed importance for IT performance

EA can guarantee the alignment of IT assets with business for today and the ability to support future business changes for tomorrow

Key Practice 1: Enterprise Architecture

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Business architecture and enterprise architecture provide the structure to align IT with business goals and optimize resources according to strategic goals

EA and Business Architecture Align IT with Business

Business Architecture

IT Architecture

InformationStrategy & objectivesCapabilitiesBusiness functionsBusiness processes

Business vocabulary

ApplicationsServicesTechnology

Enterprise Architecture Blueprint

Data

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Asset management enables IT to increase the business contribution of existing assets and determine future investments based on business needs

It offers an opportunity to combine the critical service provider role with the business partner role

Key Practice 2: IT Asset Management

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Application Portfolio Management provides tools to assess the value of your application legacy and reduce its cost

Application Portfolio Management Improves Asset Value and Customer Service

Cost&

Risk

Technicalefficiency& Safety

Business Value

Tolerate

Eliminate

Innovate

Migrate

!

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Leveraging its core project management strengths, IT can go beyond alignment and be a driver of change

IT teams help identify, design, and execute change on an end-to-end basis, not just within IT but across the business

They provide governance tools to control and manage risks

Key Practice 3: Transformation & Governance

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Transformation management practices help analyze different scenarios and plan appropriate change

Transformation

Business Architecture

IT Architecture

Information

Transformation

!

Strategy & objectivesCapabilitiesBusiness functionsBusiness processes

Costs & Risk scenario analysis

Roadmaps

Business vocabulary

ApplicationsServicesTechnology

Enterprise Architecture Blueprint

Data

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Governance practices ensure that operations are under control and risks are managed, while integrating all stakeholders as required

Governance

Governance

Business Architecture

IT Architecture

Information

Transformation

!

Strategy & objectivesCapabilitiesBusiness functionsBusiness processes

Costs & Risk scenario analysis

Roadmaps

Business vocabulary

Action PlansRisks

Controls & Audit management

IncidentSelf assessments

ApplicationsServicesTechnology

Enterprise Architecture Blueprint

Data

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Procter & Gamble achieved success with EA:

– “A comprehensive understanding of both business and IT architecture creates a vital information resource to support innovation and improve business decisions, while increasing the value and cost efficiency of IT for the enterprise.”

– “For P&G, it was the first step toward centralized information and the way to see and understand how the company’s business processes related to the thousands of business applications used to support and deliver the business.”

P&G is: – #27 on the Fortune 500 – #24 in the World’s Most

Innovative Companies, according to Forbes

The Consumer Goods Experience

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A leading insurance company CIO, overseeing worldwide IT operations, improved change management through EA.

– To better contribute to the company’s strategy, the CIO transformed the IT department from reliable service provider to accountable business partner

– A change management and business architecture skill center were created within the IT department

– The new capabilities enabled the IT department to go beyond solution deployment, to business change management and benefits accountability

The Insurance Experience

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Key Practices to Make the CIO a True Business Partner

Support and drivebusiness

transformation

Maximizeperformance of

business operations

Inspire andenable

strategic decisions

Step 3Step 2Step 1

Key Practice 3Transformation& Governance

Key Practice 2IT Asset

Management

Key Practice 1Enterprise

Architecture

©MEGA June 2012

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