The CIO Agenda: Proactively Managing

Business and Technology Change to Maximize

Business Results

Peter McGarahan President / Founder

McGarahan & Associates

6th Annual Excellence In Service

Management

The Premier IT Service Management Event on

the West Coast

About The Speaker

• 12 years with PepsiCo/Taco Bell IT and Business Planning

• Managed the Service Desk and all of the IT Infrastructure for 4500 restaurants, 8 zone offices, field managers and Corporate office

• 2 years as a Product Manager for Vantive

• Executive Director for HDI

• 6 years with STI Knowledge/Help Desk 2000

• Founder, McGarahan & Associates (8 years)

• McGarahan & Associates delivers service and support best practice consulting delivered through assessment / findings / recommendations / continuous improvement roadmap.

• Retired Chairman, IT Infrastructure Management

2

3

Gartner research predicted Tablet

sales would reach 54.8 million units in 2011, with projected sales of 214 million

by 2014.

According to data Gartner published in

June, 2011 – there were 5 billion mobile devices (1.2 billion smartphones *) in use worldwide in

2010 and that number is expected to exceed 6.7

billion by 2015.

Forrester ’s 2012 estimate for global

IT spend growth was recently halved to 5.5% growth. **

4

* Equal to the installed base of all computers-desktops, laptops, notebooks and tablets (including iPad)

** spend 3.7% of company revenues on overall IT spending and 2.6% on IT spending to maintain and operate the organization systems, and equipment (aka MOOSE).

Relevant Research

By 2015, Gartner estimates tablet unit

sales will be 326 million, and smartphone unit

sales will be one billion. Tablet sales by 2015 are likely to roughly parallel

PC sales.

Maturity Matters

Level 1 Uncertainty IT Mgmt. Toolbox • Budgets • Operations • Staffing Perception Points • Response • Reliability

Level 2 Skepticism IT Mgmt. Toolbox • Communication • Consistency • Reliability • Performance • Recruitment Perception Points • Information • Problem Mgmt. • Policies

IT Mgmt. Toolbox • Service Portfolio • Skill Assessment • Relationship & Project Mgmt. • Outsourcing • Service Recovery • Staff Development. Perception Points • Competency • Business Savvy • SLAs • Priorities

Level 4 Trust

IT Mgmt. Toolbox • Shared Services • Architecture • Project Office • Resource Mgmt. • Process Design • Competencies • Culture • Measurement Perception Points • Leadership • Relationship Mgmt. • Sourcing • Service Pricing

Level 5 Respect

IT Mgmt. Toolbox • Governance • Funding Models • Portfolio Mgmt. • Coordination • Finance • Career Pathing • Program Mgmt. • Workplace Innovation • Strategic Sourcing • Succession Perception Points • Alliances • Partnerships • Consultation • Innovation

Level 3 Acceptance

Reactive Model Proactive Model Customer / Business-Centric Model

Gartner IS Maturity Model

CMMI Maturity Model

HDI Maturity Model

5

A Business Perspective

Business Value is created by satisfied, loyal, engaged and productive employees.

Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers and business value to the organization.

In tough economic conditions, the focus must be on YOUR customer....

The Service-Profit chain establishes the interconnected relationships among internal service quality; employee satisfaction, retention and loyalty; service value; customer satisfaction

and loyalty; revenue growth; and productivity. 6

Technologies / Funding Shifting IT Focus

• Relocating IT into the business / Partnering with the business. • Hire / place the right leaders in the right positions to get the

job done. • Tracking business outcomes (resulting impact) is the only way

to show how IT benefits your company. • Creating Technology / Business Innovation.

7

Accelerated Pace of Change

Given this trend toward IT and business convergence, IT must be willing to:

• Surrender some of its control over systems and services

• Give the business more control, ownership, accountability, access, and training.

A successful transformation requires:

• Proper planning and changing mindsets about traditional roles and responsibilities.

• The new IT organization partnered with the business must take full advantage of these trends to deliver business results.

8

Envision The End • Focus on what IT should look like in the end.

• Design a new IT model that dynamically aligns IT with the business and the customer service goals that deliver value.

• Deliver technology-enabled business solutions that solve problems and create business value, without the bureaucracy.

Rogue (Shadow) IT

• The business finding support outside the Service Desk and IT.

• Can’t say ‘NO’ forever - - it’s an unstoppable tide of change.

• Partner, work with them; find a way to say ‘YES’.

– Come as partner to help them, not as the enemy to stop them.

• Placing key IT people into the business to further partnership and collaboration on business-technology-innovation.

• More of a focus on speed to market, new revenue lines and profitability rather than one ‘bottleneck’ funnel into IT.

10

A natural result of the tensions between the consumerization of IT (mobile, social media, cloud and consumer technologies) and the traditional security and standardization of IT.

The Changing Customer / Worker

Successful eBusiness leaders will take a life-cycle view of their customers, invest in technology that will support multiple touchpoints and devices, and re-evaluate ownership

of online customer service strategy and operations. 11

Affecting IT, Business Trends • Cloud computing • Mobilizing the workforce • Business process,

technology convergence • IT outsourcing

• Server, desktop, and storage virtualization

• Business intelligence • All Things VIDEO • Virtual, project-based

“contractors.”

12

Consumerization of IT • BYOD = Bring Your Own Device!

– No Fad (e.g. bring your doggie to the office – Free Lunch).

• CIO must educate the staff / the opportunity to focus on business problems & apps more than building & maintaining infrastructure.

• Consumerization of IT (BYOG)

– 37% of workers said they’ve used their own PC or Smartphone for work!

– 36% said that their company doesn’t provide the technology they need.

• Focus is on:

– Employee productivity.

– Creating an innovative environment.

– Being flexible and adaptive without sacrificing security, risk management and compliance.

13

According to an IDC study 2011 Consumerization of IT: 40.7 % of the devices used by Information Workers to

access business applications are personally owned.

The Age of Mobility

79% of CIOs said increased productivity is driving the adoption of mobile-devices in the enterprise.

14

The breakneck pace of consumer adoption of smartphones, tablets, and related applications drives enterprise IT organizations to support mobilization of their core applications (and ultimately their business processes).

“Goin Mobile”

• Mobile technology is the driving force that underlies the forces influencing where IT will go and what it will become (“technology as a service”).

• Workforce (generational, virtual, project-based)

• Ubiquitous data (anytime, anywhere). Business Intelligence anyone?

• Cloud Computing (Where physically is my data again?)

• Social Media (end-of-life email?)

• Mobility is the biggest single trend across tech industry investment and innovation (outpacing even the cloud trend).

• The pace of smartphone innovation will be ferocious.

• Social Computing and mobile phones will expand their love affair.

• The smartphone will become the crucible for disruptive.

• Organizations will have dedicated mobile staff.

15

Investing In The Cloud 1. Traditional IT Models are taking a

back seat to the cloud (IT Investment).

2. Tablet and Smartphone use in the enterprise is being driven by the growth of cloud-based applications, in addition to the low cost and availability of these devices.

3. The cloud offers organizations flexible, cost-effective alternatives to deliver IT services.

4. There are many fragmented flavors of “Cloud” Services for business to select.

Traditional IT Roles will be seriously impacted by:

• Consolidation and virtualization over true cloud capabilities.

• Server and data center consolidation / virtualization will continue to be the dominant priority

• Consolidate IT infrastructure via server consolidation

• Automate the management of virtualized servers to gain flexibility and resilience

• The ease of connecting mobile devices Tablets & Smartphones) to various cloud services.

16

Social Media • The “new” professionals are very comfortable

with browser based collaborating, texting and Instant Messaging (IM).

– From the perspective of adoption, use, productivity and training.

• The development opportunity for this soon-to-be-dominant platform lies in the ability to simulate features and capabilities that mimic the social media sites and tools younger workers exploit today. – E.g. Facebook, Twitter, YouTube, MySpace,

texting.

• Separating professional from personal computing will become increasingly difficult as each graduating class transitions into the workforce.

– Restrictions around popular Social Media sites

17

Bringing It All Together: The Art of Possible

Amplifying the Enterprise: The 2012 CIO Agenda (Gartner): Create the technology platform and architecture utilizing related technologies to broaden and unite all departments and core elements across the enterprise. Influence the business model and multiple strategic areas based on current trends and preferences that would fuel innovation and business for growth to: • Improve their understanding of

customers and markets • Allow them to engage externally at the

time, place and point of need • Facilitate collaborative dialogue

The Wake-up Call

The IT Change Imperative • The development of all IT professionals should be a priority of IT Leaders.

• It’s a continuous process of learning, acquiring and utilizing highly valued and marketable skills.

• Prepare and position them for a long-term, successful and rewarding career in IT and Business (soon to be one-in-the-same).

19

Bringing IT All Together: The IT Organizational Change Plan

No IT Professional Left Behind

Island Isolation to Cooperative Collaboration

Stretch individuals to discover their “uncomfort” zone

Persistence/Diligence of Vision/Strategy

Be a Visible Change Leader

Communicate, Communicate, Over Communicate

20

HIGHLY VALUED SKILLS

Such skills include those in the following areas:

– Leadership

– Strategic thinking

– Communication

– Influential power

– Relationships

– Problem-solving

These skills can lead to positions in: – Business processing

– Innovation

– Business intelligence

– Vendor management

– Business-IT account management

– Coaching

The transition for all IT professionals should be one of continuous learning with the acquisition and utilization of highly valued and marketable skills to

prepare and position them for an exciting career in business and IT.

21

Your Future Career

• Hybrid IT Professional - Provides leadership in devising and executing technology-enabled business ideas and initiatives.

• Business Innovation – A tech-savvy professional with good communication, process and business skills that locus on solving business problems and creating business opportunities.

• Business processing – BP redesign and integration and automation into state-of-art technologies.

• Business intelligence – An expert at data extraction and manipulation leverages analytical skills to correlate, trend and provide relevant business insights and directions for making better business decisions.

• Vendor management (VMO) – Managing the vendor sourcing relationship according to a playbook that maximizes the value from a relationship.

• Business-IT account management – An account manager responsible for a business function and ensuring that they are gaining the maximum value from invested technology and IT.

• Customer Service leader – Tech savvy, social media and customer / business professionals leads the companies effort on creating and delivering a customer-centric service delivery model / culture service focused on customer loyalty, retention and profitability

22

"Being a service leader is about positively impacting the world around you! It’s not about you, it's about

all that you can do to make other people

successful.“

Thank You! Pete McGarahan

McGarahan & Associates pete@mcgarahan.com

714.694.1158 Change the World!

23