The CIO’s Role in Enabling Top-Line Growth

1. The CIO’s Role in Enabling Top-Line Growth Highlights of SIM’s Advanced Practices Council Thought Leadership November 18, 2008 Madeline Weiss, APC Program Director

2. What does your CEO expect from you as CIO? • World-class execution? • Enterprise IT architecture and governance that align with the business model?

3. What does your CEO expect from you as CIO? SUPPLY-SIDE EXPECTATIONS • World-class execution? • Enterprise IT architecture and governance that align with the business model?

4. What does your CEO expect from you as CIO? SUPPLY-SIDE EXPECTATIONS • World-class execution? • Enterprise IT architecture and governance that align with the business model? • To be a trusted and well-respected member of the top management team • exploring new ways of adding value to the business? • engaging not only on technology-related decisions, but also on strategy, marketing, production and financial decisions?

5. What does your CEO expect from you as CIO? SUPPLY-SIDE EXPECTATIONS • World-class execution? • Enterprise IT architecture and governance that align with the business model? DEMAND-SIDE EXPECTATIONS • To be a trusted and well-respected member of the top management team • exploring new ways of adding value to the business? • engaging not only on technology-related decisions, but also on strategy, marketing, production and financial decisions?

6. Agenda • How can you build and sustain relationships with peers necessary to fulfill the expected demand-side roles, enabling top-line growth? • How can you leverage networks to identify innovative solutions that drive top-line growth? Sources • APC-sponsored researchers • Other speakers at meetings (researchers, specialists, practitioners, vendors) • Members

7. Agenda • How can you build and sustain relationships with peers necessary to fulfill the expected demand-side roles, enabling top-line growth? • How can you leverage networks to identify innovative solutions that drive top-line growth?

8. Building and Sustaining Relationships with Peers • Spend Time Together • “Being part of the top management team affords me regular opportunities to demonstrate not only technology savvy, but also the ability to contribute to firm strategy, marketing, production and finance decisions.”

9. Building and Sustaining Relationships with Peers • Spend Time Together • “IT governance structures provide me with continual exposure to business unit heads.”

10. Building and Sustaining Relationships with Peers • Spend Time Together • “I broke into the executive club by outlining what I felt my responsibilities were and then separately meeting with each senior executive to go over the list to see if they were in agreement. They were glad to be asked.” • “I asked executive colleagues to review my list of initiatives for confirmation.”

11. Building and Sustaining Relationships with Peers • Spend Time Together • “We invite business executives to speak at IT meetings on leadership, their challenges, how IT can help. We reach out in particular to rising stars and executives who do not have positive views of IT. We give each speaker a gift as a way to say thank you. People now ask to come to speak. Not only do the presentations enhance business perspectives of IT staff, but they give me a reason to interact personally with the executive in helping him or her prepare for the presentation.”

12. Building and Sustaining Relationships with Peers • Spend Time Together • “I invite the senior most person from the business area to hand out awards at project celebrations. We do it stylishly and memorably with plaques and trophies.”

13. Building and Sustaining Relationships with Peers • Spend Time Together • “I invite executive colleagues to visit vendor labs with me. The demonstrations excite their interest in how these technologies might apply in their businesses.”

14. Building and Sustaining Relationships with Peers • Spend Time Together • “I ask executive colleagues to take me along on their business visits – to customers, clients, and remote firm locations. Traveling together provides rare time with busy executives.”

15. Building and Sustaining Relationships with Peers • Spend Time Together • “I hop taxis with executives going to the airport to find that precious time to share ideas.”

16. Building and Sustaining Relationships with Peers • Spend Time Together • “I use chance elevator or cafeteria encounters to have conversations.”

17. Building and Sustaining Relationships with Peers • Spend Time Together • “I arranged a carpool with a senior executive in marketing. I make sure that business conversations revolve around issues important to the business, rather than IT, which then naturally follows.”

18. Building and Sustaining Relationships with Peers • Spend Time Together • “The CEO and several other senior executives are passionate about baseball. I bought tickets for all of us and we go out for dinner and the game.”

19. Building and Sustaining Relationships with Peers • Seek Opportunities to Advance Executives’ Success • “Our chairman wanted an X-box for his kids just before Christmas. We pulled some strings to make sure that happened.”

20. Building and Sustaining Relationships with Peers • Seek Opportunities to Advance Executives’ Success • “Every senior executive in my firm is expected to have a charity affiliation. I assign IT managers and staff to work with those executives on their charities.”

21. Building and Sustaining Relationships with Peers • Seek Opportunities to Advance Executives’ Success • “I built a relationship with a key medical executive by extending his existing health website with a podcast and blog. We also developed a video on healthcare that was featured at the White House.”

22. Building and Sustaining Relationships with Peers • Seek Opportunities to Advance Executives’ Success • “We organize technology days in which senior executives describe their key initiatives to an audience of carefully-selected IT vendors, who then respond with possible IT solutions they can offer to further the initiatives.”

23. Building and Sustaining Relationships with Peers • What practices have you used to build and sustain relationships with peers?

24. Building and Sustaining Relationships with Peers • It’s Turtles All the Way Down…

25. Measuring Peer Relationships – Business Partner Reviews at Allstate • Successful IT Partners • Behaviors and Attitudes – Trusting, credible, displaying a sense of urgency, proactive, collaborative • Technology Leadership – Benchmarking against industry standards and developing solution alternatives • Execution Excellence – Meeting commitments; quickly assessing ideas; setting mutually agreed quantifiable objectives; managing, mitigating and communicating risks; and communicating in a timely and full fashion

26. Measuring Peer Relationships – Business Partner Reviews at Allstate Behaviors and Attitudes • Do we (business and IT) build trust and credibility to strengthen the partnership? • Do we (business and IT) effectively collaborate, sharing information, resources and expertise to accomplish our objectives? • Do we (business and IT) display a “can do” attitude, sense of urgency, inclusion and flexibility? Technology Leadership • Does IT envision alternatives and introduce ideas that meet the needs of the business? • Does IT demonstrate and apply insight into leading-edge technologies? Execution Excellence • Do we (business and IT) assume joint accountability for arriving at solutions that meet both our needs? • Do we (business and IT) define the best mix of capability, cost and schedule to maximize the value to the business? • Do we (business and IT) appropriately staff our projects, using the right people, with the right skills at the right level? • Do we (business and IT) communicate relevant issues, with appropriate advance notice and adequate information given? • Do we (business and IT) meet our project commitments with regard to scope, schedule and budget?

27. Measuring Peer Relationships – Business Partner Reviews • What practices do you use for measuring peer relationships?

28. Agenda • How can you build and sustain relationships with peers necessary to fulfill the expected demand-side roles, enabling top-line growth? • How can you leverage networks to identify innovative solutions that drive top-line growth?

29. Leveraging Networks to Identify Innovative Solutions that Drive Top-Line Growth • Why Do You Need to Leverage Networks Beyond Your Firm? • There are many more ideas and smart people outside your firm than you can ever hope to hire. • Customers and partners have knowledge and expertise waiting to be harnessed. • Large firms find it difficult to do cost-effective innovation. • The global talent pool dwarfs the talent in developed markets. • Emerging market talent is cheaper and more motivated.

30. Leveraging Networks to Identify Innovative Solutions that Drive Top-Line Growth • “We want to grow efficiently. With our size, it’s just not possible to do it all yourself. And even if it was it’d be lunacy to attempt. Even if we could, it would be expensive. There are just too many smart people out there. And so we’ve been able to increase our innovative output while reducing our spending as a percent of sales because we’re multiplying it by all the people we’re partnering with.”Tom Crepe (Assoc Director, EBD group, P&G) • “It’s clear that we need to be much more open, access talent from wherever it exists, and in the strategic areas that we are trying to drive, make sure that we are constantly scanning technology and bringing in anything that is going to enhance our ability to grow faster.” Uma Chowdhry (SVP and CTO, DuPont) Source: Mohan Sawhney, Kellogg School of Management

31. Leveraging Global Technology Network at BP • CTO Digital Technology Scanning Team • Goal is to identify truly significant opportunities for BP • Business unit partnering • Emails to seeker network (leading academics, research and venture capital thought leaders)

32. Leveraging Global Technology Network at BP • Filters for innovative ideas and technologies • Relevance • Technical readiness • Economic viability • The surviving 40-50% are considered by business executive sponsors for pilots • 5-10 pilots are selected for broader adoption each year • Feedback loop to ecosystem partners

33. Leveraging Global Technology Network at BP • Game Changer Initiatives • At least one per year has generated business impacts up to $100 million

34. Leveraging Networks for Connect and Develop Innovation

35. Source: Mohan Sawhney, Kellogg School of Management

36. Traditional pools • US, EU Academics • Contract labs (FTE) • Individual networks • Opportunity pools • Global Academia • Researchers in Russia, India, China. • Scientists in other industries • Excess capacity • Retirees • Traditional networks • Nontraditional pools of intellectual capacity Source: Mohan Sawhney, Kellogg School of Management

37. The Amazing Reach of InnoCentive Total Solvers > 90,000 across 175 countries Total Seekers - 34 Scientific Disciplines - 40 Challenges Posted > 200 Challenges Solved > 58 Source: Mohan Sawhney, Kellogg School of Management

38. Who are the Solvers? • INNOCENTIVE 216128 (Protein crosslinks) • INNOCENTIVE 3109(R4-(4-Hydroxyphenyl) Butanoic Acid) • INNOCENTIVE 96229 (Regio-Stereocontrolled • Tricyclic Alcohols) • INNOCENTIVE 258382 (Paracrystalline Arrays) • INNOCENTIVE 55195(Substituted isoquinoline) Head of Indian research institute Retired head of Hoechst R&D N. Ireland CRO and US Professor Outside discipline Russian scientist Source: Mohan Sawhney, Kellogg School of Management

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41. IBM • The Future of the Enterprise • Including designing the 21st century corporation; managing global talent and skills; alternate R&D/innovation models; “global” small businesses • Transportation and Mobility • Including mega-urban centers and smart traffic management; “connected” vehicles; customs, ports and border control • Environment and Energy • Including eco-efficient technologies; economic impact of access to clean water supplies; predictive environmental impact services Source: Mohan Sawhney, Kellogg School of Management

42. IBM • What: Global online brainstorming sessions involving hundreds of thousands of thought leaders -- IBMers, our clients, business partners, academia and even family members • Why: To create breakthrough new marketplace opportunities/partnerships for IBM and clients • How: • Four fora built around major aspects of our professional and personal lives: Going Places, Staying Healthy, A Better Planet and Finance and Commerce • Participants discuss potential innovations made possible at the intersection of emerging, new technologies and major business/societal shifts • Emphasis on surfacing ideas for new products, services, processes and new business models that will transform industry and society • Outcome: • More than 140,000 participants • 104 countries represented • 67 client, partner and university organizations participating • 31,000 concurrent users at peak of phase one • 37,000+ ideas posted in 72 hours • Ideas posted from 77 different countries

43. Leveraging Networks to Identify Innovative Solutions that Drive Top-Line Growth • What experiences have you had with leveraging external networks to identify innovative solutions? • What barriers have you experienced? • What barriers would you anticipate experiencing?

44. The CIO’s Role in Enabling Top-Line Growth • How can you build and sustain relationships with peers necessary to fulfill the expected demand-side roles, enabling top-line growth? • How can you leverage networks to identify innovative solutions that drive top-line growth? Sources • APC-sponsored researchers • Other speakers at meetings (researchers, specialists, practitioners, vendors) • Members

45. SIM Advanced Practices Council • Setting new Competitive Standards Through Research and Thought Leadership • CIO Driven Research • Relevant Thought Leadership • Member Sharing • Networking • Madeline Weiss, Program Director (madeline.weiss@verizon.net) • Blake Ives, Research Director (bives@mac.com)

46. Recent APC Research Projects • Innovation in a networked world • Unleashing the Power of Enterprise Value Nets • Network and Industry Transformation • Assessing IT Architecture Outcomes • How to Drive Value from IT – Senior Executives’ Perspectives • Identity Management for Business Value • Advanced Practices in IT Structure and Governance • Deploying Far-Flung Teams: A Guidebook for Managers • Transformation of the Enterprise through eBusiness • Future Architectures • Strategic Agility • Disruptive Technologies • Inter-organizational IT Change Management • Benefits and Risks of Open Source • The Wiki in Your Company: Lessons for Collaborative Knowledge Management • Grooming the 2010 CIO

47. Current APC Research Projects • Driving breakthrough innovation with IT: a CIO perspective • How do CIOs use metrics to manage their firms’ IT activities? • Green IT and IS