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The Chief Information Officer

The Chief Information Officer. Andrew Getz Sarah Tsige Candace James November 6, 2006. Presentation Overview. Objective Role of the CIO Company background and CIO profile Home Decorators Collection Boeing UMSL Demographics Issues Turnover Among CIOs Conclusions Questions

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The Chief Information Officer

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  1. The Chief Information Officer Andrew Getz Sarah Tsige Candace James November 6, 2006

  2. Presentation Overview • Objective • Role of the CIO • Company background and CIO profile • Home Decorators Collection • Boeing • UMSL • Demographics • Issues • Turnover Among CIOs • Conclusions • Questions • References

  3. Objective To understand the functions CIOs perform within organizations and explore attributes of effective CIOs

  4. Does it Take a Psychopath to Make a Good CIO?By: Elizabeth Millard • Study by a team of researchers from Stanford University, Carnegie Mellon University and the University of Iowa. • Trying to find what personality traits are markers for success in high-stress, high-stakes jobs. • Based on previous research, they speculated that people with lesions on the area of the brain that affect emotions would perform better than those without brain damage. Source: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

  5. What did they find?? • Patients labeled as “functional psychopaths” outperformed those who are not psychopaths • The lack of fear gives them an advantage over those that are emotionally healthier. So….should CIOs create a degree of emotional detachment, basically making them into functional psychopaths???????? Source: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

  6. Experts Answer….NO! Most CIOs do not display non-emotional responses typical of near psychopaths according to Doug Berg, founder of techies.com and chief executive of HotGigs (talent firm specializing in IT staffing). “Over the past decade, the role of the CIO has changed tremendously, and that’s driven change in what type of person is chosen to take on that job. The good ones have a balanced view of people, process and technology. They care about how the company meets its goals while embracing technology. They have to be emotionally invested to do that.” Berg Source: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

  7. Changing Role of the CIO • Moving from technical planning and implementation to strategic planning. • Become involved in top levels of corporate planning and decision making • Qualifications • Involved in external and internal customer support • Skill set of CIO Based on telephone survey of 340 CIOs from the U.S., UK, Germany, and France in June 1999 Source: http://www.cio.com/executive/edit/kornferr.html

  8. CIO Trends CIO Perspective Video: Jim Tom on Strategic Planning

  9. Role of the CIO "I've pretty much stepped back [from technical operations], and now I focus mostly on working with the business community, making sure I have a clear understanding of business processes and needs," I Henry Eckstein, CIO and VP at York Insurance Services Group

  10. Overview of CIOs Interviewed Rich Bradt September 28, 2006 Home Decorators Collection Director of IT Don Imholz – October 27, 2006 Boeing VP of Boeing IT Systems Jim Tom – October 30, 2006 University of Missouri-St. Louis Associate Vice Chancellor for IT

  11. Company Size Figures in Millions of Dollars

  12. Home Decorators Collection Home Decorators Collection • Direct to consumer (catalog) company • Majority of merchandise is household furniture, rugs but also carry other items • Over 450 employees • Currently operate 7 retail stores with plans to open at least 15 a year for the next 3 years • Acquired by Home Depot Direct on May 1, 2006

  13. How large is HDC? Home Decorators Collection

  14. HDC Customer • Women, usually married • Between the ages of 35 and 64 • Savvy and price conscious, but affluent • Median household income of approximately $100,000

  15. Rich Bradt • Director of IT for Home Decorators Collection • Educational background in: • Mathematics • Geography • Engineering • Management Information Systems • 15 Years if IT Experience Interview with Rich Bradt on Wednesday September 28, 2006

  16. Most Successful Internet Start up of HomeDecorators.com web site Use of Color on the website Most Troublesome Inventory Forecasting System Needs By Weeks Projects

  17. Effects of the Acquisition • Budget increase • Larger projects • More Bureaucracy

  18. Total Employees ~ 156,332 • Customers in 145 countries • Manufacturing operations in U.S., Canada and Australia

  19. Aerospace Products • Commercial jetliners • Military aircraft • Rotorcraft • Missiles • Rocket Engines • Launch Vehicles • Electronic & Defense Systems • Advanced information & communication systems

  20. Boeing Business Groups • Boeing Capital (Corporate) • Commercial Airplane • Integrated Defense Systems • Phantom Works • Shared Services • Boeing Technology • HR & Administration

  21. Don Imholz Vice President of Boeing IT Systems • Schooling • Bachelors: BA - UMSL • Masters: Information Systems Mgmt– WU • Executive MBA – WU • Advanced through several positions in his career • Systems Development • Project Mgmt • Exec in Finance & Manufacturing • Involved in numerous activities

  22. Boeing IT Sarbanes-Oxley Act (SOX) Initiative Collaboration – Sharepoint Total Access Updating your work information Creating your personal profile Viewing company training records Enrolling in health benefits Pay, benefits, and tax summary General information links “If we don’t have a few (projects) that we are challenged with, we are probably being too conservative. “– D. Imholz Projects

  23. University of Missouri – St. Louis • Annual 2005 budget of $167 million • Customer Characteristics • Very few classically traditional students • Most students are employed full or part-time • Companies wanting specialized courses for employees onsite UMSL is “Using technology to reach into corporations” – Jim Tom Interview with Jim Tom on October 30, 2006

  24. Dr. Jim Tom • Vice Chancellor for Information Technology since January 2005 • Educational background: • Undergraduate degree in Physics • Masters in Systems and Computer Engineering • PhD in Engineering Economics • Work Experience • Program Analyst • Economic Statistician • Large Scale Economic Models • 10 years in IT • Most recently Director of Networks at University of British Columbia, Canada

  25. Current Project PeopleSoft Implementation • Goals • Improved access for students • Designed for student self-service • Valuable information from other campuses • Separate staff • Focus staff solely on project • Costing approximately $1.25 million for UMSL alone • Benefit from UM System expenditures • Meeting expectations at Rolla and in limited implementations elsewhere

  26. Demographics of CIOs Average Age: 47 Years old Gender: Source:Ellen Flanning “100 premier IT Leaders 2006.” Computerworld 6 January 2006.Base:100 IT Leaders survey by Computerworld in June/July 2002

  27. Average CIO Compensation large = $1 billion or more in revenuesmedium = $100 million to $1billionsmall = $100 million or less Source:Edward Prewitt “State of the CIO” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  28. Job Experience Primary Job Experience Job Experience Other than IT • 71% IT • 7% Business (non-IT) • 7% Consulting • 3% Engineering • 3% Finance and Accounting • 2% Administration • 1% Logistics • 1% Marketing • 1% Sales • 3% Other Other Logistics Manufacturing Marketing Sales Finance/Acc Engineering Administration Consulting Business Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  29. Hierarchy • Who the CIO reports to: Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  30. HDC Organization Chart Home Depot Corporate

  31. UMSL Organizational Chart Chancellor Jim Krueger VC Managerial & Tech Services (CFO) Provost Jim Tom 4 Direct Reports

  32. Average IT Investment • Small Companies • $6,762,700 • Medium Companies • $40,809,200 • Large Companies • $89,025,400 Source:Edward Prewitt “Sate of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazinelarge = $1billion or more in revenuesmedium = $100million to $1billionsmall = $100million or less

  33. IT Investment • Don Imholz • Consistent with manufacturing/aerospace Industry Average ~ 4% of total Revenues • Jim Tom • Annual IT Budget is about $10 Million • Roughly 5.9% of Budget

  34. IT Department Comparison • 24 Full-time IT employees • ~ 9000 – 10,000 IT professionals • ~ 5000 direct to Don Imholz • ~ 80 Full-time Employees

  35. Top 10 Current IT Issues in 2006 Security and Identity Management Funding IT Administrative/ERP/Information Systems Disaster Recovery/Business Continuity Faculty Development, Support, and Training Infrastructure Strategic Planning Governance, Organization, and Leadership E-Learning/Distributed Teaching and Learning Web Systems and Services Source: http://www.educause.edu/2006SurveyResources/#faculty

  36. 3 Notable Findings • First time ever, Security and Identity Management has topped Funding IT as the number-one IT related issue • Terrorist attacks • Disaster Recovery/Business Continuity only 2nd time on the list • Hurricane Katrina • Enterprise-Level Portals dropped off list • Increased vendor supplied ERP • Information portals have been implemented at numerous institutions Source: http://www.educause.edu/2006SurveyResources/#faculty

  37. How do CIOs Spend their Time • Interacting with Company Execs • Making Strategic System Decisions • Strategic Business Planning • Leading Projects • Designing/Optimizing Business Processes • Managing IT Staff and Crises • Budgeting • Learning about Technologies Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  38. How CIOs Spend their Day “Everyday is different” - Don Imholz Rich • Talking to various people • Meetings with department heads to see how IT can improve their business processes • Meetings with other top management • Touching bases with VP of IT for Home Depot Direct • Making sure systems are running Don • Meetings with executives and direct reports • Strategic Planning (33%) • Operational Projects (33%) • Miscellaneous Tasks (33%) Jim • Meetings with directors and other executives • Firefighting • Strategic Planning (15% -20%) “No Routine” - Jim Tom

  39. Tenure • Rich Bradt • 14 Years • Started at the early stage of company development • Don Imholz • 31 Years • 23-24 in IT • 4 years in current position • Jim Tom • 2 Years • Average Tenure: • 4 Years, 11 Months for CIOs • 7 years for CEOs7

  40. CIO (career is over) Turnover • Varying Estimates • Reasons for Turnover • Examples

  41. CIO Turnover • Average turnover rate of 23.8% varying from 15% - 40%1 • How long have you been CIO? • 24% Less than 2 years • 35% Between 2-5 years • 31% Between 5-10 years • 9% More than 10 years • Hard to measure6 • 1994/1995 data • 2002/2003 data • Based press reports Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  42. Reasons for Turnover • Fix-it Artists1 • Increased movement within companies1 • Ford Motor Company2 • Replaces Jim Yost with Marvin Adams • Yost on job for 18 months, 27 years at Ford moved onto be VP of Corporate Strategy • High job demand3 • Business demands on IT outreach IT capabilities3 • Continual budget and spending justification1 “…true business transformations don’t happened without turmoil.” 2

  43. Additional Reasons • Definition of success3 • Not in step with business interests3 • Rapid change in technology – more so than in the past2 • 3Com2 • Merged 900 IT employees with e-commerce group • CIO David Starr replaced after only 15 months on the job • “Consequence of e-commerce transformation” • Higher company turnover creates higher CIO turnover2 CIOs “generally are being asked to leave because the communication and the expectations that were established between IT groups and business groups have eroded.” – Beverly Lieberman, Halbrecht Lieberman Associates1

  44. Cost of High Turnover • Greater short term focus6 • Emphasize what will look good for next position/employer6 • Contributes to IT inefficiencies6

  45. Top 10 Management Priorities • Align IT and Business goals • Business continuity/risk management • Control IT costs • IT-enabled process improvement • Improve Internal user satisfaction • Develop IT staff leadership/business skills • Improve project management discipline • Ensure privacy of customer and employee data • Enable or enhance knowledge management and leverage intellectual assets • Ensure regulatory compliance Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  46. Barriers to Job Effectiveness • Overwhelming backlog of requests and projects • Inadequate budgets • Shortage of time for strategic thinking and planning • Unrealistic and unknown expectations from the business • Lack of Technical skill sets and business knowledge within the IT department • Overwhelming pace of technology change • Lack of alignment between business goals and IT efforts • Difficulty proving the value of IT Source:Edward Prewitt “State of the CIO.” CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

  47. Biggest Challenges Rich Bradt: • “Making sure IT systems don’t interfere or stop us from growing.” Don Imholz: • Regulatory Compliance Jim Tom: • Keeping and recruiting competent IT professionals

  48. What keeps CIOs awake at Night? According to Survey by Society for information Management (SIM) which polled 139 CIOs Top CIO concerns in 2006 1. Alignment of IT and business 2. Developing and retaining IT talent • CIO Perspective Video: Jim Tom on Keeping and Recruiting Good People 3. Security and privacy issues • “If you sleep like a baby, you wake up crying every 2 hours” – Don Imholz Information Week, by Marianne Kolbasuk McGee, September 18, 2006 Source: http://www.informationweek.com/news/showArticle.jhtml?articleID=193000377&subSection=All+Stories

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