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The new role of the CIO?
Borut Kolmanič
Outsourcing Sales Manager, S&T Group
Agenda




         1.   What forces are driving IT changes?
         2.   The impact on the CIO role
         3.   The CIO of today and tomorrow
         4.   How do I get there?
Forces driving IT change


Business is going            Business will be              New business
to be flat                   more demanding                processes need
And IT budget is not going   The requests from             to be supported
to increase                  business will be increasing   with IT
                                                           Core processes are
                                                           covered with IT, new ones
                                                           are in the front end and
                                                           information exchange


New and                      New service                   Social networks
breakthough                  delivery models               Impacting sales and
technologies                 Software as a service,        marketing, HR, image and
                             cloud computing               brand, communication
Virtualization. Clouds.
Mobile devices.
Business areas affected


Sales and                  Operations               Management
Marketing                  • New customer support   • Business intelligence in
• Mobile applications,       processes, mobile        the areas of customers,
  Social networks            applications             competition, business
                           • Collaboration            process performance,
                                                      employee performance




HR                         F&A                      IT
• People skills            • Risk management        • IT Management, IT
• People development and   • Liquidity management     project selection and
  training                                            management
                                                    • Costs, personnel
The CIO focus



  IT operations            Business (and IT)
                           change

      • Need to run –          • Needs to
        a must                   happen faster
      • Can partially be       • Can only be
        purchased                done internally
Different skills need for the CIO of tommorow



1                 2                  3
Business          Acceptance by      Luck. Choose the
knowledge         the top and        right projects.
                  middle
                  management



4                 5                  6
Be able to do     Change             Communication
more with same    management         skills
money             skills
Sources of CIO success
Gartner, CIO Agenda, 2011
What others are doing
Gartner, CIO Agenda, 2011



CIO IT strategies                            2011   2010   2009
Developing and managing a flexible            1
infrastructure
Delivering application and growth projects    2      1      3
Reducing IT cost                              3      3      2
Improving IT management and governance
Reorganizing IT (retaining personell)
Expanding use of information/intelligence
Implementing business process
improvement
Implementing cloud solutions
Improving business – IT relationship                 2      1
What others are doing
Gartner, CIO Agenda, 2011


Top 10 Business Priorities            Ranking   Top 10 Technology Priorities   Ranking
Increasing enterprise growth            1       Cloud computing                  1
Attracting and retaining new
                                        2       Virtualization                   2
customers
Reducing enterprise costs               3       Mobile technologies              3
Creating new products and services
                                        4       IT management                    4
(innovation)
Improving business processes            5       Business intelligence            5
Implementing and updating                       Networking, voice and data
                                        6                                        6
business applications                           communications
Improving technical infrastructure      7       Enterprise applications          7
Improving enterprise efficiency         8       Collaboration technologies       8
Improve operations                      9       Infrastructure                   9
Improving business continuity, risk
                                        10      Web 2.0                          10
and security
How do I get there?



1                         2                      3
Optimize                  Create the             Be an expert
existing costs            right IT               in Change
• IT Service              strategy               Management
  Management              • Alignment with       • Business process
• Cloud services and        operational            change preceeds IT
  virtualization            management             changes

• Look into Saas,         • Selection of right   • Thorough execution
  selective outsourcing     projects               of projects
                          • Communication
Optimize existing costs


             Release resources for
             changes from the current
             IT operations
Fine-tune         Adopt             Find optimal
IT processes      light-weight      service delivery
IT service        IT solutions      models
Management        Cloud services,   SaaS, Paas, Selective
                  virtualization    outsourcing
Optimize existing costs
Examples



Fine-tune                     Light-weight                  Optimal service
IT processes                  IT solutions                  delivery models
Internal IT department        Oracle licencing costs can    Exchange as a Service
responsible for the           decreased or at least be      offered by S&T is priced to
development of a new          kept at the same level if     4,7 €/user/month.
application was able to       virtualization is used when
launch a new application                                    TCO saving for a smaller
30% before planned go         migrating to a new            customer (up to 100 users)
live date.                    hardware with a higher        are in the range of 50%.
                              number of cores.
A shorter development                                       TCO savings for large
time was possible because     Savings can be up to 50%.     customers go up to 25%
the service desk could take                                 when also licencing
over a large part of their                                  agreements are optimized
work in supporting the                                      and roles are adopted.
existing applications.
Create the right IT strategy



                           Access to business
                              knowledge

Align with
                           Exchange of ideas on
business line             business improvement
                                  areas
managers
                           Crucial for sucessful
                             implementation
Create the right IT strategy


            Select the right projects
• Clear and
  measurable business
                                                • Resources
  impact on top or
                                                  needed
  bottom line
                        Business   Ability to
                                                • Resistance to
• Investment needed      impact    execute        change
• Balance quick wins
                                                • Risks
  and long term
  improvements
Create the right IT strategy



                   Strategy
                   To position IT
                                               Success
                                           To gain credibility
 Communicate
                            Projects
                         To drive the change
Be an expert in change management




Business change        The project is           Measure and
precedes IT            only finished            communicate
change                 when changes             results
The new business       are in business          Positive business
processes need to be   use                      impacts need to be
defined before                                  measured and
software development   Training and support     communicated to get
starts.                of users are typically   credibility and
                       shrinked to „deliver     recognition.
                       projects on time“.
Conclusions




    1 | Forces driving IT change
    2 | How the CIO should respond
    3 | Focuses of the CIO

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The new role of CIO, Borut Kolmanič, S&T Slovenija

  • 1. The new role of the CIO? Borut Kolmanič Outsourcing Sales Manager, S&T Group
  • 2. Agenda 1. What forces are driving IT changes? 2. The impact on the CIO role 3. The CIO of today and tomorrow 4. How do I get there?
  • 3. Forces driving IT change Business is going Business will be New business to be flat more demanding processes need And IT budget is not going The requests from to be supported to increase business will be increasing with IT Core processes are covered with IT, new ones are in the front end and information exchange New and New service Social networks breakthough delivery models Impacting sales and technologies Software as a service, marketing, HR, image and cloud computing brand, communication Virtualization. Clouds. Mobile devices.
  • 4. Business areas affected Sales and Operations Management Marketing • New customer support • Business intelligence in • Mobile applications, processes, mobile the areas of customers, Social networks applications competition, business • Collaboration process performance, employee performance HR F&A IT • People skills • Risk management • IT Management, IT • People development and • Liquidity management project selection and training management • Costs, personnel
  • 5. The CIO focus IT operations Business (and IT) change • Need to run – • Needs to a must happen faster • Can partially be • Can only be purchased done internally
  • 6. Different skills need for the CIO of tommorow 1 2 3 Business Acceptance by Luck. Choose the knowledge the top and right projects. middle management 4 5 6 Be able to do Change Communication more with same management skills money skills
  • 7. Sources of CIO success Gartner, CIO Agenda, 2011
  • 8. What others are doing Gartner, CIO Agenda, 2011 CIO IT strategies 2011 2010 2009 Developing and managing a flexible 1 infrastructure Delivering application and growth projects 2 1 3 Reducing IT cost 3 3 2 Improving IT management and governance Reorganizing IT (retaining personell) Expanding use of information/intelligence Implementing business process improvement Implementing cloud solutions Improving business – IT relationship 2 1
  • 9. What others are doing Gartner, CIO Agenda, 2011 Top 10 Business Priorities Ranking Top 10 Technology Priorities Ranking Increasing enterprise growth 1 Cloud computing 1 Attracting and retaining new 2 Virtualization 2 customers Reducing enterprise costs 3 Mobile technologies 3 Creating new products and services 4 IT management 4 (innovation) Improving business processes 5 Business intelligence 5 Implementing and updating Networking, voice and data 6 6 business applications communications Improving technical infrastructure 7 Enterprise applications 7 Improving enterprise efficiency 8 Collaboration technologies 8 Improve operations 9 Infrastructure 9 Improving business continuity, risk 10 Web 2.0 10 and security
  • 10. How do I get there? 1 2 3 Optimize Create the Be an expert existing costs right IT in Change • IT Service strategy Management Management • Alignment with • Business process • Cloud services and operational change preceeds IT virtualization management changes • Look into Saas, • Selection of right • Thorough execution selective outsourcing projects of projects • Communication
  • 11. Optimize existing costs Release resources for changes from the current IT operations Fine-tune Adopt Find optimal IT processes light-weight service delivery IT service IT solutions models Management Cloud services, SaaS, Paas, Selective virtualization outsourcing
  • 12. Optimize existing costs Examples Fine-tune Light-weight Optimal service IT processes IT solutions delivery models Internal IT department Oracle licencing costs can Exchange as a Service responsible for the decreased or at least be offered by S&T is priced to development of a new kept at the same level if 4,7 €/user/month. application was able to virtualization is used when launch a new application TCO saving for a smaller 30% before planned go migrating to a new customer (up to 100 users) live date. hardware with a higher are in the range of 50%. number of cores. A shorter development TCO savings for large time was possible because Savings can be up to 50%. customers go up to 25% the service desk could take when also licencing over a large part of their agreements are optimized work in supporting the and roles are adopted. existing applications.
  • 13. Create the right IT strategy Access to business knowledge Align with Exchange of ideas on business line business improvement areas managers Crucial for sucessful implementation
  • 14. Create the right IT strategy Select the right projects • Clear and measurable business • Resources impact on top or needed bottom line Business Ability to • Resistance to • Investment needed impact execute change • Balance quick wins • Risks and long term improvements
  • 15. Create the right IT strategy Strategy To position IT Success To gain credibility Communicate Projects To drive the change
  • 16. Be an expert in change management Business change The project is Measure and precedes IT only finished communicate change when changes results The new business are in business Positive business processes need to be use impacts need to be defined before measured and software development Training and support communicated to get starts. of users are typically credibility and shrinked to „deliver recognition. projects on time“.
  • 17. Conclusions 1 | Forces driving IT change 2 | How the CIO should respond 3 | Focuses of the CIO