IT Strategy and Management: Navigating the Challenge Ahead

2. IT Strategy and Management: Navigating the Challenge Ahead Art Wittmann Managing Director InformationWeek Analytics ISB201

3. About Art Wittmann • Director of University of Wisconsin Engineering Computing Center 1990-1996 • Editor of Network Computing 1996 – 1999 • Editor in Chief of Network Computing2004 – 2007 • Editor of InformationWeek, Director of InformationWeek Analytics 2007 - Present

4. About InformationWeek Analytics • Twenty to forty page reports on: • Research: • 15 – 25 questions on technology adoption and user perceptions • 200 – 800 responses • typically 80% IT, 20% non-IT management • typically 50% over 1000 employees, 50% under • Analysis: • Experts with real world, practical experience • Provide best practices • Evaluation methodologies • Risk assessment and avoidance • Organizational requirements and dynamics • Architectural options

5. Bad Times A – Bank Run Of 1907 B – Great DepressionC – Recession of 1958D – Oil Embargo of 1973 E – Iranian Revolution & Oil Run Up of 1981F – Tech Bubble Burst 2001 F F E D D C C B B A

6. Big Opportunities A – UPS and Bell & Howell Launch B – Allstate Insurance LaunchC – Avis and Budget LaunchD – Clear Channel and SkyWest Launch E – MTV, Whole Foods, Sun Micro and Adobe LaunchF – Riverbed, Genomics and Wynn Resorts Launch F E D C A B

7. Long Term Economic and Population Growth

8. From Past Recessions We Know… • Recessions are followed by comparatively long periods of growth • The deeper the recession, the stronger the post-recession period • Recessions create new markets and new opportunities • While businesses fail in recessions, whole industries rarely do • Technology tends to be a destabilizing influence on the economy

9. … But What About THIS Recession? "Openings [for top IT spots] are declining, companies are not replacing people or they're not going outside to replace them,“ -- Beverly Lieberman, President, Halbrecht Lieberman Associates “[I’m] aware of about 10 to 12 companies on the East Coast in the midrange of $200 million to $3 billion in revenue that are using this stalling tactic of not filling a CIO vacancy to save money right now. If a CFO can save a company $140,000 by not replacing the CIO right now, that's what they'll do” -- Michael Kirven, co-founder and principal of Bluewolf

10. Ballmer sees “Fundamental Reset” “In my view, what we now have will be a fundamental economic reset.  The economy is going to have to re-establish itself at a level of spending that reflects the real value of underlying assets before we can all start growing again at a healthy rate.” 

11. Resetting the Business for Success • Move past cost cutting, and reacquaint yourself with your business partners – and how they make money • Virtualize, automate and embrace a services model • Consider the businesses your IT organization doesn’t need to be in • Be data driven

12. What IT Thinks is Expected

13. Success in Software 69% made some money on software Only 31% used revenue as a success metric.

14. When Development Goes Wrong

15. National Semiconductor Stats Founded: 1959 Employees: 7000 Revenue: $1.89 billion US Patents: 3,100 Total Products: over 15,000 Product Focus: “Analog Intensive” chips

16. National’s “Chicken and Egg Dilemma” Distributors are a key part of National’s businessBecause so many new parts are created each year, distributors arereluctant to carry them in inventory Electronics designers won’t use parts that aren’t in inventory Douglas Owens – Central Planning and Production Sheau-Huey Yuan – Applications Director

17. Solution: Virtual Inventory

18. Lessons From Nat Semi • Spend real time with your line of business partners • Each National IT manager spends two weeks in the field • Service oriented development can pay off in ways that you might not anticipate • Prototype and beta test with your business partners

19. How Harrah’s Wins Tim Stanley – CIO & Sr. VP of Innovation, Gaming, Technology

21. Innovation at Harrah’s Using RFID and interactive terminals, Harrah’s: tracks customers, with perks for preferred customers lets groups such as families find each other lets customers make purchases at Harrah’s without a wallet or room key – at a pool or spa lets customers gamble from anywhere within Harrah’s resorts via virtual gaming

22. Lessons from Harrah’s Be data driven Try new ideas Contribute to the bottom line

23. Virtualization Goes Mainstream

24. Why Virtualization?

25. Production Virtualization Requires APM

26. Applications Go Mobile

28. Rich Internet Apps

29. Why Develop Rich Internet Apps?

30. SOAs Morph Toward Web Services

31. What’s Hot?

32. Make IT Matter IT must be: Virtualized Automated Service Enabled Data Driven So that IT can work with line of business partners to drive new business and revenue

33. Thank You! Resources: InformationWeekAnalytics.comInformationWeeekReports.com

34. Resources • www.microsoft.com/teched Sessions On-Demand & Community • www.microsoft.com/learning • Microsoft Certification & Training Resources • http://microsoft.com/technet • Resources for IT Professionals • http://microsoft.com/msdn Resources for Developers

35. Track Resources TechNet IT Management Home Information Week's TechWeb Briefing Center Thrive Home http://www.technet.com/itmanagement/ http://platform-solutions.techweb.com/ http://www.microsoft.com/thrive

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37. © 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.