the role of the cio mark debarr kristin falke gerry rohr carolyn lum sue lynn

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The Role of the CIO Mark DeBarr Mark DeBarr Kristin Falke Kristin Falke Gerry Rohr Gerry Rohr Carolyn Lum Sue Lynn Carolyn Lum Sue Lynn

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Page 1: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

The Role of the CIO

Mark DeBarrMark DeBarr

Kristin FalkeKristin Falke

Gerry RohrGerry Rohr

Carolyn Lum Sue LynnCarolyn Lum Sue Lynn

Page 2: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

What Is A CIO?

CIOs (Chief Information Officer) are CIOs (Chief Information Officer) are responsible for all aspects of their responsible for all aspects of their companies’ information technology and companies’ information technology and systems. systems.

They are managers capable of aligning the They are managers capable of aligning the company’s technology strategy with its company’s technology strategy with its business strategybusiness strategy

Source: http://www.cio.com/summaries/role/descriptionSource: http://www.cio.com/summaries/role/description

Page 3: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

What Is A CIO’s Role?

As IT leaders, CIOsAs IT leaders, CIOs Set IT goals to achieve business valueSet IT goals to achieve business value Maximize return for every dollar spent in ITMaximize return for every dollar spent in IT Convert data and information into knowledgeConvert data and information into knowledge Empower the organization to meet customers’ Empower the organization to meet customers’

demanddemand Facilitate internal teamwork and external Facilitate internal teamwork and external

partnershipspartnerships

Source: CIO Insight Magazine, The Role of the CIO, February 14, 2003Source: CIO Insight Magazine, The Role of the CIO, February 14, 2003

Page 4: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

TOPICS

DemographicsDemographics Executive Executive

RelationshipsRelationships ChallengesChallenges IT SpendingIT Spending SkillsSkills Career PathCareer Path

SalarySalary IssuesIssues Case studyCase study

Anheuser BuschAnheuser Busch City of St. CharlesCity of St. Charles Enterprise Rent-A-Enterprise Rent-A-

CarCar ConclusionConclusion

Page 5: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICSTitle

62%15%

7%

2%

1%

13% CIO

Other Heads ofI.T.VP

SVP

EVP

CTO

Source: http://www.cio.com/archive/030102/demographicsSource: http://www.cio.com/archive/030102/demographics

Page 6: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICS cont’IT Responsibilities

Divisional I.T. Only,

14%

Corporate wide I.T.,

86%

Source: http://Source: http://www.cio.com/archive/030102/demographicswww.cio.com/archive/030102/demographics

Page 7: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICS cont’

8.70%

6.40%

5.00%4.20% 4.00%

<$100M $100M-$499M

$500M-$999M

$1B-$4.9B

$5B-$10B

IT Budget

Source: Spending: How Bad is the Bite in Your Budget by Allan E. Alter, January 14, 2003.Source: Spending: How Bad is the Bite in Your Budget by Allan E. Alter, January 14, 2003.

Page 8: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICS cont’IT Structure

Centralized, 61%

Decentralized, 22%

Distributed, 14%

Source: http://www.cio.com/archive/030102/demographicsSource: http://www.cio.com/archive/030102/demographics

Page 9: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICS cont’ Centralized :Centralized : corporate HQ with in-house application development and corporate HQ with in-house application development and

support capabilitiessupport capabilities

Decentralized :Decentralized :independent subsidiaries with application development: independent subsidiaries with application development: support provided locally as well as from central HQsupport provided locally as well as from central HQ

Distributed :Distributed :small sites with no local application development or small sites with no local application development or support capabilities that rely heavily on a centralized support capabilities that rely heavily on a centralized location or HQ for those services location or HQ for those services

Source: http://www.cio.com/archive/030102/demographicsSource: http://www.cio.com/archive/030102/demographics

Page 10: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

DEMOGRAPHICS cont’Gender

91% of CIOs are male

Source: http://www.cio.com/archive/030102/genderSource: http://www.cio.com/archive/030102/gender

Page 11: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

EXECUTIVE RELATIONSHIPS

Who does the CIO report to?Who does the CIO report to?

CEOCEO 63%63%

COOCOO 12%12%

CFOCFO 11%11%63%

12%

11%

Source:National Computing Centre, MyITAdviser, Who’s be a CIO?Source:National Computing Centre, MyITAdviser, Who’s be a CIO?

Page 12: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

CHALLENGES

CIO’s biggest barriers to effectivenessCIO’s biggest barriers to effectiveness

Shortages – of key staff and skills, of Shortages – of key staff and skills, of money and time – are CIO’s chief money and time – are CIO’s chief challenges today. Those, along with volatile challenges today. Those, along with volatile market conditions, make it tough to be market conditions, make it tough to be effective.effective.

Page 13: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

CHALLENGES cont’

Lack of skill sets, retentionLack of skill sets, retention ……………..…………….. 40%40%Inadequate budgets……………………..Inadequate budgets…………………….. 37%37%Lack of time for strategic thinking……..Lack of time for strategic thinking…….. 31%31%Volatile markets………………………..Volatile markets……………………….. 22%22%Ineffective communication with users…Ineffective communication with users… 18%18%Poor vendor support and quality……….Poor vendor support and quality………. 16%16%Pace of technology change……………..Pace of technology change…………….. 14%14%Disconnects with executive peers………Disconnects with executive peers……… 12%12%Difficulty proving the value of I.T……..Difficulty proving the value of I.T…….. 10%10%Office politics…………………………..Office politics………………………….. 6% 6%

Source: http://www.cio.com/archive/030102/challengesSource: http://www.cio.com/archive/030102/challenges

Page 14: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

IT SPENDING

CIO’s top IT spending prioritiesCIO’s top IT spending priorities

Integrating systems and processesIntegrating systems and processes 36%36%

Implementing new technologiesImplementing new technologies 26%26%

Staff retention/hiring/trainingStaff retention/hiring/training 25%25%

External Customer R/ship ManagementExternal Customer R/ship Management 24%24%

Lowering CostsLowering Costs 22%22%

Enabling E-CommerceEnabling E-Commerce 21%21%

Project Management ImprovementProject Management Improvement 18%18%

Source: CIO Insight Magazine, IT Spending by Allan E. Alter, January 14 2003.Source: CIO Insight Magazine, IT Spending by Allan E. Alter, January 14 2003.

Page 15: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Aligning IT and business goalsAligning IT and business goals 14%14%

Implementing security measuresImplementing security measures 14%14%

User Training/EducationUser Training/Education 12%12%

Knowledge managementKnowledge management 7%7%

Managing IT globallyManaging IT globally 5%5%

Automation the supply chainAutomation the supply chain 4%4%

IT SPENDING cont’

Source: CIO Insight Magazine, IT Spending by Allan E. Alter, January 14 2003.Source: CIO Insight Magazine, IT Spending by Allan E. Alter, January 14 2003.

Page 16: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

SKILLS

70%

58%

46%

31%

19% 17%10%

Skills most pivotal for a CIO's success

Executive skills areEssential for CIOs today.Technology knowledge,

while still necessary,is less important than it was once.

Source: http://www2.cio.com/research/surveyreportSource: http://www2.cio.com/research/surveyreport

Page 17: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

CAREER PATH

IT has had by far the greatest influence on IT has had by far the greatest influence on CIO’s careers, but they also draw from CIO’s careers, but they also draw from experience in consulting, administration, experience in consulting, administration, customer service and salescustomer service and sales

Source: http://www.cio.com/archive/030102/careerpathSource: http://www.cio.com/archive/030102/careerpath

Page 18: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

SALARY

$183,245 on average, including stop options $183,245 on average, including stop options and bonuses.and bonuses.

4% receive more than $500,000 in 4% receive more than $500,000 in compensationcompensation

Most CIOs settled in the $100,000 to Most CIOs settled in the $100,000 to $250,000 a year range$250,000 a year range

Source: http://www.cio.com/archive/030102/salarySource: http://www.cio.com/archive/030102/salary

Page 19: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

ISSUES

Certify the CIO?Certify the CIO?No standard credentials exist for the CIO. Other No standard credentials exist for the CIO. Other occupations involving trust and responsibility occupations involving trust and responsibility certify the credentials of their professionals, certify the credentials of their professionals, giving them both moral authority and legal rights.giving them both moral authority and legal rights.

Certification of CIO will give CIOs the respect Certification of CIO will give CIOs the respect they deservethey deserve

Source: CIO Magazine, Certify the CIO by Joe Gagliardi, January 15, 2002 Source: CIO Magazine, Certify the CIO by Joe Gagliardi, January 15, 2002

Page 20: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Where are the WOMEN IT Leaders?Where are the WOMEN IT Leaders?

Men outnumber women in IT leadership positions. Why?Men outnumber women in IT leadership positions. Why? Fewer women choose technology as a career. Fewer women choose technology as a career. More women leave corporate to start own businesses.More women leave corporate to start own businesses.

Female CIOs make an average of $109,000 per year, compared with Female CIOs make an average of $109,000 per year, compared with $122,000 for their male counterparts$122,000 for their male counterparts

ISSUES cont’

Source: CIO Insight Magazine, Leadership: Are Successful Leaders Born or Made?, October 1, 2003. Source: CIO Insight Magazine, Leadership: Are Successful Leaders Born or Made?, October 1, 2003.

Page 21: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

CASE STUDIES

Anheuser-BuschAnheuser-Busch City of St. CharlesCity of St. Charles Enterprise Rent-A-Enterprise Rent-A-

CarCar

Page 22: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Anheuser-Busch

Mr. Robert ByrneMr. Robert Byrne

Chief Information OfficerChief Information Officer

Vice President, MSGVice President, MSG

Page 23: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Major Products of A-B Beer (Domestic Beer (Domestic

and International)and International) Packaging GroupPackaging Group Entertainment Entertainment

(theme parks)(theme parks)

Page 24: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

General Characteristics of A-B’s Customers

Adult beverage consumers aged 21 and Adult beverage consumers aged 21 and olderolder

Adventurous people of all ages who enjoy Adventurous people of all ages who enjoy theme parkstheme parks

Page 25: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Size of A-B in Terms of Sales 2003 (in millions) Gross Sales: $ 16,320.2Gross Sales: $ 16,320.2 Net Sales (gross sales minus excise taxes): Net Sales (gross sales minus excise taxes):

$ 14,146.7$ 14,146.7 Gross Profit (net sales minus cost of sales): Gross Profit (net sales minus cost of sales):

$ 5,697.6$ 5,697.6 Net Income Overall: $ 2,075.9Net Income Overall: $ 2,075.9

Page 26: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Largest Challenges

Fulfilling the mission of the IT organizationFulfilling the mission of the IT organization• Delivering business solutions that enable the Delivering business solutions that enable the

company to grow sales and reduce operating costs company to grow sales and reduce operating costs for the companyfor the company

• Managing the information technology Managing the information technology organization to provide maximum business benefit organization to provide maximum business benefit at the optimized costsat the optimized costs

• Providing standardized business solutions and Providing standardized business solutions and excellent customer serviceexcellent customer service

Page 27: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

An Average Day

Meeting with and communicating with Meeting with and communicating with customers, vendors, and the IT organizationcustomers, vendors, and the IT organization

Meeting with each of his direct reports on a Meeting with each of his direct reports on a weekly basis to review key projects and weekly basis to review key projects and strategies (working to focus every part of strategies (working to focus every part of the A-B organization on the mission of the A-B organization on the mission of business growth, cost reduction, business growth, cost reduction, standardization and service excellence)standardization and service excellence)

Page 28: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Robert’s Educational Background

Undergraduate degree in Mechanical and Undergraduate degree in Mechanical and Industrial Engineering from the University Industrial Engineering from the University of Notre Dameof Notre Dame

MBA from Pepperdine UniversityMBA from Pepperdine University

Page 29: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Roberts Work History

Started at A-B after graduating from Notre Dame in Started at A-B after graduating from Notre Dame in 1980.1980.

Has had 11 different positions at A-B including Has had 11 different positions at A-B including management trainee, industrial engineer, assistant to management trainee, industrial engineer, assistant to the vice president of operations, computer systems, the vice president of operations, computer systems, manager of bottling operations at a brewery, director manager of bottling operations at a brewery, director of IT procurement, and director of applications of IT procurement, and director of applications development.development.

He spent 17 years in A-B before he went to the IT He spent 17 years in A-B before he went to the IT division 7 years ago. division 7 years ago.

He has relocated 5 times during his career.He has relocated 5 times during his career.

Page 30: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

A-B CIO’s Reporting

Reports directly to W. Randolph Baker, Vice Reports directly to W. Randolph Baker, Vice President and Chief Financial OfficerPresident and Chief Financial Officer

Page 31: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Annual IT Budget

Between 1-2% of A-B sales Between 1-2% of A-B sales ($16,320.2 million) ($16,320.2 million)

Page 32: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Approximate Number of IT Employees

1,2001,200

(out of a total of 23,316 full-time (out of a total of 23,316 full-time employees)employees)

Page 33: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

How does Robert view the relative importance of A-B’s business, people, and technical skill to job performance?

Page 34: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Technical skills are an important foundation to successful job performance.Critical to build on the technical foundation with both people skills and business skills.(Robert feels that “you should hire a business professional with a positive attitude and work to build on that individual’s technical foundation”)

Page 35: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Robert’s Relationship with CEO

He also reports to the CEO (Mr. Patrick He also reports to the CEO (Mr. Patrick Stokes) and the Chairman of the Board (Mr. Stokes) and the Chairman of the Board (Mr. August Busch III) through Mr. Baker.August Busch III) through Mr. Baker. He communicates with them on a weekly He communicates with them on a weekly

basis (on average) by means of memos, basis (on average) by means of memos, meetings, phone calls, presentations, meetings, phone calls, presentations, business trips, etc.business trips, etc.

Page 36: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

The Biggest Success

The replacement of the payroll system for The replacement of the payroll system for every employee in the corporationevery employee in the corporation It was an extremely large project that It was an extremely large project that

touched every part of the companytouched every part of the company Project went live in a “big bang” fashionProject went live in a “big bang” fashion Lesson learned: create a cross-functional Lesson learned: create a cross-functional

team to implement the project and give team to implement the project and give them ownership in its success.them ownership in its success.

Page 37: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Most Troublesome Projects

Not one in particular to discuss but they did Not one in particular to discuss but they did have similaritieshave similarities Poor requirementsPoor requirements Lack of business ownership and Lack of business ownership and

participationparticipation Trying to do too much over a long period Trying to do too much over a long period

of time rather than using a “phased of time rather than using a “phased approach”approach”

Page 38: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Extra Comments from Robert

““We like to say there are no IT initiatives in We like to say there are no IT initiatives in our company. Every thing we do is a our company. Every thing we do is a businessbusiness initiative. Our organization is not initiative. Our organization is not trying to be an IT company like IBM, Intel, trying to be an IT company like IBM, Intel, and SAP. We are, and will always be a beer and SAP. We are, and will always be a beer company. Maintaining our business focus company. Maintaining our business focus is the key to our success.”is the key to our success.”

Page 39: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

City of Saint Charles, MO

Mrs. Edsell BarriosMrs. Edsell Barrios

Director of Management Information SystemsDirector of Management Information Systems

Page 40: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

About the City of St. Charles

First MO State CapitolFirst MO State Capitol Seventh largest city in MOSeventh largest city in MO Employs nearly 1400 peopleEmploys nearly 1400 people Provides for it’s citizens:Provides for it’s citizens:

Police, Fire, Public Works, Recreation and Police, Fire, Public Works, Recreation and moremore

Source: www.stcharlescity.comSource: www.stcharlescity.com

Page 41: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

More about St. Charles City

Features a Historic Waterfront Tourism District Features a Historic Waterfront Tourism District founded in 1804founded in 1804

Home to Boeing’s Missile Defense SystemHome to Boeing’s Missile Defense System Home to St. Louis Family Arena where many of Home to St. Louis Family Arena where many of

this year’s NCAA College Basketball tournament this year’s NCAA College Basketball tournament games are being playedgames are being played

Home to Ameristar Casino, the metropolitan Home to Ameristar Casino, the metropolitan area’s largest casinoarea’s largest casino

Source: www.historicsaintcharles.orgSource: www.historicsaintcharles.org

Page 42: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Annual Budget

$120,000 for City wide projects and $120,000 for City wide projects and maintenancemaintenance

Based on projects and replacement of Based on projects and replacement of workstations, laptops and printersworkstations, laptops and printers

Page 43: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Largest Challenge

Keeping Departments form implementing Keeping Departments form implementing non-compatible IT equipmentnon-compatible IT equipment

Teaching individuals with varying Teaching individuals with varying education levels the IT solutions for their education levels the IT solutions for their business needs; examples:business needs; examples: Police: LEWebPolice: LEWeb Public Works: Various Database UsesPublic Works: Various Database Uses Providing Standard ApplicationsProviding Standard Applications

Page 44: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

An Average Day

Responding to daily needs:Responding to daily needs: Malfunctioning equipmentMalfunctioning equipment EducationEducation Working on current projectsWorking on current projects Budgeting and planning future projectsBudgeting and planning future projects

Page 45: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Edsell’s History

Born in IndiaBorn in India Moved to St. Louis and attended Saint Moved to St. Louis and attended Saint

Louis UniversityLouis University B.S. in Management Information SystemsB.S. in Management Information Systems Hired by St. Charles City in 1996Hired by St. Charles City in 1996 Director of MIS in 2000Director of MIS in 2000

Page 46: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Executive Relationships

Edsell reports directly to the Assistant City Edsell reports directly to the Assistant City AdministratorAdministrator

She meets with him once a week, during She meets with him once a week, during any major project he has an open door any major project he has an open door policypolicy

She is given great freedom in implementing She is given great freedom in implementing IT solutions and projectsIT solutions and projects

Page 47: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

How does Edsell view the relative importance of the City’s business, people, and technical skill to job performance?

Depends on the user: Depends on the user: Most know just enough to be dangerous, Most know just enough to be dangerous,

which is the bulk of her daily problemswhich is the bulk of her daily problems However, technical skills are important to However, technical skills are important to

the success of her departmentthe success of her department

Page 48: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Biggest Success

Implementing a city wide inter/intranetImplementing a city wide inter/intranet Challenging because:Challenging because:

Multiple departments at multiple sitesMultiple departments at multiple sites Staying on budgetStaying on budget

Page 49: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Most Troublesome Project

Implementing a city wide phone systemImplementing a city wide phone system Due to:Due to:

Her lack of expertise in telecommunicationsHer lack of expertise in telecommunications Multiple sitesMultiple sites BudgetBudget

She is given almost all technology related projects She is given almost all technology related projects and expected to implement them despite her and expected to implement them despite her knowledge of the topicknowledge of the topic

Page 50: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Extra Comments from Edsell

She enjoys the randomness of her jobShe enjoys the randomness of her job She enjoys more freedom than many She enjoys more freedom than many

corporate CIO’s, despite the paycorporate CIO’s, despite the pay She feels her efforts are important as they She feels her efforts are important as they

directly affect such functions as Police and directly affect such functions as Police and Fire protectionFire protection

Page 51: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Headquarters: St. Louis, MOHeadquarters: St. Louis, MO

Core Business: Local Car RentalsCore Business: Local Car Rentals

Senior VP and C.I.O.: Craig KennedySenior VP and C.I.O.: Craig Kennedy

Page 52: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Founded in 1957 as Executive LeasingFounded in 1957 as Executive Leasing Renamed in 1969 in honor of the aircraft Renamed in 1969 in honor of the aircraft

carrier USS Enterprise, on which company carrier USS Enterprise, on which company founder Jack Taylor served during WWIIfounder Jack Taylor served during WWII

Largest car rental company in North Largest car rental company in North AmericaAmerica

Page 53: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Key Numbers 2003 Revenue2003 Revenue $6.9 Billion$6.9 Billion 2003 Employees:2003 Employees: 53,50053,500 1-Year Sales Growth: 1-Year Sales Growth: 6.2%6.2% 1-Year Employee Growth: 1-Year Employee Growth: 7.0%7.0% NeverNever had an unprofitable year had an unprofitable year 90% of U.S. population lives within 15 miles 90% of U.S. population lives within 15 miles

of an Enterprise location of an Enterprise location

Source: www.hoovers.comSource: www.hoovers.com

Page 54: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Awards Ranked #15 “Largest Private Companies in Ranked #15 “Largest Private Companies in

America” – Forbes MagazineAmerica” – Forbes Magazine

Included in the “100 Best Companies To Work Included in the “100 Best Companies To Work For” – Fortune MagazineFor” – Fortune Magazine

Included in the “100 Companies Most Likely to Included in the “100 Companies Most Likely to Succeed in the Next Millennium” – CIO MagazineSucceed in the Next Millennium” – CIO Magazine

Source: www.hoovers.comSource: www.hoovers.com

Page 55: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Craig Kennedy-CIO

Oversees a department of 1,200 IT professionalsOversees a department of 1,200 IT professionals 1989 : Started at Enterprise - Programmer/Analyst1989 : Started at Enterprise - Programmer/Analyst 1990 : Promoted to Programmer Supervisor1990 : Promoted to Programmer Supervisor 1991 : Headed new department: “Advanced Technology 1991 : Headed new department: “Advanced Technology

Group”, responsible for researching new technologies.Group”, responsible for researching new technologies. 1992 : Director of Software Development1992 : Director of Software Development 1993 : Assistant Vice President of Information Systems1993 : Assistant Vice President of Information Systems 1996 : Vice President of Information Systems1996 : Vice President of Information Systems 2002 : CIO2002 : CIO

Page 56: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Background Development

Joined Enterprise as programmerJoined Enterprise as programmer Directly managed or been a part of building Directly managed or been a part of building

every IS related departmentevery IS related department Served under two previous CIO’s who Served under two previous CIO’s who

provided mentorshipprovided mentorship 13 years with company13 years with company

Page 57: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Organization Flow Chart

C ra ig K e nn e dyS V P /C IO

D o n R o ssP re s id en t/C O O

A n d y T a ylo rC h a irm a n /C E O

Communications with:Communications with:

Informally/FrequentlyInformally/Frequently

Formally/FrequentlyFormally/Frequently

Page 58: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Corporate Steering Committee

CEOCEO

COOCOO

CIOCIO

CFOCFO

VPs of Corporate Strategy:VPs of Corporate Strategy: North American OperationsNorth American Operations

European OperationsEuropean Operations

Human ResourcesHuman Resources

Chief Administration Chief Administration OfficerOfficer

Page 59: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Largest Challenges within Enterprise

Implementing new technology in rapidly Implementing new technology in rapidly changing environmentchanging environment

Complicated technical solutionsComplicated technical solutions Cost ControlsCost Controls

Legacy SystemsLegacy Systems New Infrastructure (Terrestrial from New Infrastructure (Terrestrial from

satellite-based network)satellite-based network)

Page 60: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Standard Business Day

Meeting with direct reports (subordinates)Meeting with direct reports (subordinates) CommunicationsCommunications Resource ManagementResource Management Representing Information SystemsRepresenting Information Systems Personnel MattersPersonnel Matters Fiscal ManagementFiscal Management

Page 61: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Business/People/Technical Skills Relative to CIO Role ““All three are vital, since the role of the All three are vital, since the role of the

CIO has little to do with technology!”CIO has little to do with technology!” ““Business skills are important, because that Business skills are important, because that

is our reason for being here.”is our reason for being here.” ““People skills are equally important. …the People skills are equally important. …the

CIO is insignificant and unable to do CIO is insignificant and unable to do anything without a strong team”anything without a strong team”

Page 62: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Technical Skills of CIO

““Technical skills are probably less Technical skills are probably less important than the other two”important than the other two”

Advantages to strong tech background:Advantages to strong tech background: Helps understand concepts betterHelps understand concepts better Helps guide people’s thinkingHelps guide people’s thinking Break deadlock decisionsBreak deadlock decisions

However, “technology decisions are made However, “technology decisions are made by those creating solutions”by those creating solutions”

Page 63: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Biggest Success

Guided development of a web-based Guided development of a web-based software product for the insurance industrysoftware product for the insurance industry

Labor- and communication-intensive Labor- and communication-intensive transaction between rental branch and transaction between rental branch and insurance adjusterinsurance adjuster Better customer service/more responsiveBetter customer service/more responsive Substantial lead over competitorsSubstantial lead over competitors

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Most Troublesome Project

New system for writing rental contractsNew system for writing rental contracts Problems, first try:Problems, first try:

Vision did not extend far enoughVision did not extend far enough Before fully developed, fell short of Before fully developed, fell short of

growing needsgrowing needs

Page 65: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Most Troublesome Project

Problems Second Try:Problems Second Try: Too far-reachingToo far-reaching Solution would recreate entire systemSolution would recreate entire system Cost and support prohibitiveCost and support prohibitive

Final compromise:Final compromise: Build new capabilities upon proven Build new capabilities upon proven

systemsystem

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Lessons Learned

Cannot lose sight of proven core Cannot lose sight of proven core technologiestechnologies

Cannot get enamored with new technology Cannot get enamored with new technology or new capabilitiesor new capabilities

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Issues Facing CIO’s-Next 5 Years PrivacyPrivacy SecuritySecurity OffshoringOffshoring Corporate GovernanceCorporate Governance

Page 68: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn

Additional Words of Wisdom ““No sustainable competitive advantage can No sustainable competitive advantage can

be gained from technology”be gained from technology” ““Implementing technology itself is not a Implementing technology itself is not a

substitute for a strategy”substitute for a strategy” ““Solid business strategies can be Solid business strategies can be

accelerated through the use of technology”accelerated through the use of technology” ““CIO’s must always be thinking about IT as CIO’s must always be thinking about IT as

a business tool and nothing more”a business tool and nothing more”

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Summary- “text book definition"

Most CIO’sMost CIO’s Responsible for aligning technology with Responsible for aligning technology with

business strategy.business strategy. Work for an organization with a Work for an organization with a

centralized IT department.centralized IT department. Have no standard credentials.Have no standard credentials. Have varying career paths.Have varying career paths.

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Summary-from our research

Most CIO’sMost CIO’s Have no standard IT initiatives, rather Have no standard IT initiatives, rather

use IT to solve business needs.use IT to solve business needs. Use their people skills more than their Use their people skills more than their

technical skills.technical skills. Are communicators rather than Are communicators rather than

visionaries.visionaries.

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Summary-Comparing the CIO’s

A-BA-B

Robert ByrneRobert Byrne

St. CharlesSt. Charles

Edsell BarriosEdsell Barrios

EnterpriseEnterprise

Craig KennedyCraig Kennedy

Greatest Greatest ChallengeChallenge

Developing Developing solutions to solutions to business business problemsproblems

Educating Educating diverse diverse workforce on workforce on new technologynew technology

Balancing old Balancing old and newand new

BudgetBudget $244,803,000 $244,803,000 $120,000$120,000 $210,000,000$210,000,000

Greatest Greatest SuccessSuccess

New Payroll New Payroll SystemSystem

Bringing them Bringing them into 21into 21stst century century

Communication Communication improvements improvements among branches among branches and adjustersand adjusters

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Summary-Comparing the CIO’s

A-BA-B

Robert ByrneRobert Byrne

St. CharlesSt. Charles

Edsell BarriosEdsell Barrios

EnterpriseEnterprise

Craig KennedyCraig Kennedy

Average DayAverage Day CommunicationCommunication CommunicationCommunication CommunicationCommunication

Thoughts On Thoughts On IT’s PurposeIT’s Purpose

““IT solutions to IT solutions to business business initiatives.”initiatives.”

““IT solutions to IT solutions to business business problems.”problems.”

““Business Business strategies are strategies are accelerated accelerated through IT.”through IT.”

Page 73: The Role of the CIO Mark DeBarr Kristin Falke Gerry Rohr Carolyn Lum Sue Lynn