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Theme. Technology is moving outside of IT’s control — CIOs’ one choice: Partner with the business to stay ahead of the change. Agenda. How are frustration and opportunity conspiring to drive greater technology control in business orgs?

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  1. Theme Technology is moving outside of IT’s control — CIOs’ one choice: Partner with the business to stay ahead of the change

  2. Agenda • How are frustration and opportunity conspiring to drive greater technology control in business orgs? • What does the business need from IT leaders to be successful at BT? • How will IT leaders successfully respond to enable business success with BT?

  3. Agenda • How are frustration and opportunity conspiring to drive greater technology control in business orgs? • What does the business need from IT leaders to be successful at BT? • How will IT leaders successfully respond to enable business success with BT?

  4. Business is certain about technology’s importance – but isn’t as certain about IT’s capability “How strongly do you agree or disagree with the following statements about the perception of technology's importance in your business in 2010?” “How strongly do you agree or disagree with the following statements about your perception of how effective IT is at meeting your business's expectations?” Strongly Agree Strongly Disagree Technology will be a core component of our products and/or services IT enables technology to be a core component of our products and/or services Technology will be central to how we differentiate ourselves from competitors IT enables technology will be central to how we differentiate ourselves from competitors July 2007 North American and European Business Technology Online Survey Online survey of 186 business decision-makers

  5. Get application projects done on time and on budget • Improve infrastructure services • Reduce costs of the business with IT • Reduce costs within the IT organization • Improve IT value management and communications • Support regulatory requirements • Increase the capacity of IT • Address staffing and skills needs • Improve transparency to business of IT costs, business demand and capacity • Increase company differentiation with IT IT Drivers for 2008, ranked by importance … and it reflects in IT priorities Which of the following two statements most closely describes your company's philosophy toward IT? Technology is a differentiator Technology is used primarily for efficiency July 2007 North American and European Enterprise IT Management and Governance Phone Survey Phone survey of 503 IT decision-makers

  6. Business organizations are frustrated with IT • Businesses are impatient with IT’s speed • Firms can’t govern technology populism • Technology allows users to out-pace IT projects IT’s design-build-maintain approach isn’t working!

  7. New technologies enable business users — without IT • Tech populism — blogs, wikis, IM, handheld devices • Assembling, composing, and configuring — business process management (BPM), information workplace (IW) • Contracting — Software as a service (SaaS), business process outsourcing (BPO) • All based on increasingly robust IT infrastructure and operations

  8. Business Technology (BT) is rapidly emerging • Pervasive technology use that drives business results BT is a fundamental change in technology management — not another pendulum swing from centralized-to-decentralized IT

  9. Defining or designing the solution 3% 10% 28% 31% 25% 3% Directly selecting vendor-offered solutions 7% 16% 34% 25% 15% 3% Directly negotiating with and/or directly managing solutions vendors 6% 19% 26% 27% 19% 4% Directly configuring solutions to deliver what you need 3% 5% 28% 36% 24% 3% Directly managing projects with substantial technology involved 5% 10% 30% 32% 21% 2% Directly managing the technology solutions once in production 3% 12% 21% 38% 24% 3% Completely other business areas’ (not IT’s) responsibility More other business areas’ responsibility Equal mix of other business areas and IT More IT’s responsibility Completely IT organization’s responsibility Don’t know Business organizations play roles previously in IT Base: 186 global business executives Source: July 2007 US The Business View Of IT Online Survey

  10. Business control is risky . . . Information integrity and consistency Assuring compliance, security, policy, and privacy Quality assurance Execution performance . . . but business control means opportunity User-driven speed Business agility Networked business models Founded on IT excellence IT has to balance the two aspects of increased business control

  11. Agenda • How are frustration and opportunity conspiring to drive greater technology control in business orgs? • What does the business need from IT leaders to be successful at BT? • How will IT leaders successfully respond to enable business success with BT?

  12. Traditionally, IT handles the entire technology stack Dynamic and differentiated technologies X Internet, multichannel, mobile, SOA Stable foundation and commodity technologies Transaction systems, data warehouses — RDBMS, BI platform — storage, servers — data center ops, desktop maintenance

  13. . . . but with BT, business people deliver dynamic, differentiated solutions Historically, it’s all been IT. . . But with BT, business people deliver solutions

  14. With BT, business users’ needs are changing

  15. Agenda • How are frustration and opportunity conspiring to drive greater technology control in business orgs? • What does the business need from IT leaders to be successful at BT? • How will IT leaders successfully respond to enable business success with BT?

  16. Focus only on traditional IT- Letting business areas run ahead without you Getting stuck in the technology engine room Focus heavily on enabling BT - Empowering business success with managed risk Becoming a partner player There’s a fork in the road: Take it!

  17. IT enables BT by enabling flexibility

  18. Development IT Operations Today’s IT organization manages all technology . . . CIO IT Architecture IT Demand Management IT Strategy & Planning

  19. Development IT Operations Technology Exec Today’s IT organization manages all technology . . . CIO IT Architecture IT Demand Management IT Strategy & Planning

  20. Business Organizations Business Organizations Business Organizations Technology Exec . . . but CIOs must become chief BT officers, restructuring IT . . . CBTOs BT Architecture BT Synchronization • . . . as business orgs take on roles previously in IT • Business analysis • Project management • Application configuration • Information management • Analytics delivery • Security, compliance, risk, and policy assurance BT Strategy & Planning Development IT Operations

  21. The CIO will change to support BT enablement Source: December 6, 2007 “Next Up: The 21st Century CIO:

  22. Checklist for successful 21-st century CIO Source: December 6, 2007 “Next Up: The 21st Century CIO:

  23. For Additional Reading… • December 14, 2007 “Seven Trends That Will Shape The CIO Role” by Alex Cullen • December 6, 2007 “Next Up: The 21st Century CIO” by Bobby Cameron

  24. Thank you Alex Cullen +1 617.613.6373 acullen@forrester.com www.forrester.com/simboston

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