Nicolas Betbeder-Matibet, Managing Director, MEGA Asia - ©MEGA June 2012
CIOs: How to Become
the CEO’s Business Partner
©MEGA
June 2012
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 strategies Ranking 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 * * *
©MEGA
June 2012
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
©MEGA
June 2012
What are CIOs expected to contribute...
… to become a CEO business partner?
Reduce enterprise costs
via better efficiency Improve risk and securitygovernance, Consolidate, standardize and streamline organization
Support enterprise
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June 2012
CIOs have a three-step journey
Support and drive business transformation
Maximize performance of business operations
Inspire and enable strategic decisions
Step 3 Step 2 Step 1
©MEGA June 2012 ©MEGA June 2012
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 1
Deliver services supporting business processes according
to the appropriate SLAs.
Challenge 2
Contribute to the flexibility
and business agility of the organization
©MEGA
June 2012
Support and drive
business transformations
Step 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 1
Determine and prioritize the changes needed in different
business areas through
engagement with business leaders
Challenge 2
Execute and deliver the changes,
ensuring that the business
impacts of the changes are understood
©MEGA
June 2012
Inspire and Enable
Strategic Decisions
Step 3
Inspire and enable strategic decisions
Position the IT strategy as a part of the business strategy
(vs. implementation plan)
Challenge
Closely 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
©MEGA
June 2012
Three Key Practices for CIOs
Support and drive business transformation Maximize performance of business operations Inspire and enable strategic decisions Step 3 Step 2 Step 1 Key Practice 3 Transformation & Governance Key Practice 2 IT Asset Management Key Practice 1 Enterprise Architecture
©MEGA
June 2012
©MEGA
June 2012
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
©MEGA June 2012 ©MEGA June 2012 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
Information Strategy & objectives
Capabilities Business functions Business processes Business vocabulary Applications Services Technology
Enterprise Architecture Blueprint
©MEGA June 2012 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
©MEGA
June 2012
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 Technical efficiency & Safety Business Value Tolerate Eliminate Innovate Migrate
!
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June 2012
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
©MEGA June 2012 Transformation management practices help analyze different scenarios and plan appropriate change
Transformation
Business Architecture IT Architecture Information Transformation !Strategy & objectives Capabilities
Business functions Business processes
Costs & Risk scenario analysis Roadmaps Business vocabulary Applications Services Technology
Enterprise Architecture Blueprint
©MEGA
June 2012
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 & objectives Capabilities
Business functions Business processes
Costs & Risk scenario analysis Roadmaps Business vocabulary Action Plans Risks Controls & Audit
management Incident Self assessments Applications Services Technology
Enterprise Architecture Blueprint
©MEGA
June 2012
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
©MEGA
June 2012
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
©MEGA
June 2012
Key Practices to Make the CIO a True
Business Partner
Support and drive business transformation Maximize performance of business operations Inspire and enable strategic decisions Step 3 Step 2 Step 1 Key Practice 3 Transformation & Governance Key Practice 2 IT Asset Management Key Practice 1 Enterprise Architecture
©MEGA June 2012
