CIO 2015 Mechanic, Architect or Conductor?

1. CIO 2015Mechanic, Architect or Conductor? Peter Whatnell Chief Information Officer Sunoco Inc Information Technology Taking The Lead And Leading The Way

2. CIO 2015Mechanic, Architect or Conductor?……..It depends…….. Peter Whatnell Chief Information Officer Sunoco Inc Information Technology Taking The Lead And Leading The Way

3. Information Technology Taking The Lead And Leading The Way

4. Then When??? Now Mgr, Information Technology Mgr, Computer & Information Systems CIO Supervisor, EDP ????????? Construct & Operate Acquire & Deploy Where Did We Come From? Information Technology Taking The Lead And Leading The Way

5. IT Roles High Strategic Renewal Business Success Dependent on New Use of IT Support Factory Low High Business Success Dependent on Existing Use of IT McFarlan & Cash Information Technology Taking The Lead And Leading The Way

6. Information Technology Taking The Lead And Leading The Way

7. Getting A Seat At The Table What is the basis of competition in your industry? How does your company make money? Act the part Don’t fall in love with the technology Maximizing Impact Architecture – Business Process & Technical Innovation Sourcing The CIO’s Agenda Information Technology Taking The Lead And Leading The Way

9. Getting A Seat At The Table What is the basis of competition in your industry? How does your company make money? Act the part Don’t fall in love with the technology Maximizing Impact Architecture – Business Process & Technical Innovation Sourcing The CIO’s Agenda Information Technology Taking The Lead And Leading The Way

10. Leadership Failing to take the lead in determining how technology can help their company Strategic Thinking No broad understanding of the environment their company is operating in, or how to build the capabilities of their IT organization with the future in mind. Synthesis Skills Inability to pull together all available information to achieve a business goal. A tendency to rush to a determination of what the problem is Communication Skills Speak well and exhibit a helpful and supportive attitude but an absence of good questioning, listening and sales skills Influencing Skills Not good at marketing themselves and their organization. Perception that they are hopelessly trapped in a narrow analytical mind set. Relationship Skills Know what builds strong relationships but lack the skills to build them. Don’t understand how easily trust can be eroded nor the power of listening CIO Perceived Shortcomings MIT Sloan Management Review May 2010 Information Technology Taking The Lead And Leading The Way

11. Getting A Seat At The Table What is the basis of competition in your industry? How does your company make money? Act the part Don’t fall in love with the technology Maximizing Impact Architecture – Business Process & Technical Innovation Sourcing The CIO’s Agenda Information Technology Taking The Lead And Leading The Way

12. Maximizing The Impact Of IT Questions To Ask • Where do we need to invest to be competitive? • Are IT activities and $ driving our critical business initiatives • Am I getting value for my IT spend – what is value? • How do I compare with my competitors – effectiveness and efficiency • What options and alternatives are there? • What is the cost/consequence of doing nothing • What do we need to do for ourselves, what do we outsource when do we partner • When do we buy and when do we build • How do we manage risk? • What is the competence of our IT leadership • Are our technology choices ‘fit for purpose’ • Is there appropriate business ownership Information Technology Taking The Lead And Leading The Way

13. The Five Stages Of Trucking At Widget Inc • Stage 1 Custom Build • Designed and built transmission, fuel system, suspension etc • Stage 2 Best of Breed/System Integration • Bought engine from Cummins, transmission from Borg-Wagner etc and we made it work together • Stage 3 Package Solution • Bought a truck • Stage 4 Outsourced Truck driving and Operations • Retained ‘customer critical’ activities e.g. routing and scheduling • Stage 5 Service Based • 1-800-FEDEX Information Technology Taking The Lead And Leading The Way

14. The Five Stages Of Trucking At Widget Inc • Widget Inc is in the business of getting great widgets into the hands of customers, not trucking • Reliable delivery is critical to the success of the business but it is not THE business • Can you answer the question what IT your Business expects, and why that is good for the customer? Information Technology Taking The Lead And Leading The Way

15. Impact Is Not Proportional To Effort • Doing the right thing • Doing it right Information Technology Taking The Lead And Leading The Way

16. Qualifiers Don’t differentiate us in the marketplace Little difference between business units Support base business operations Cost & service level driven Table Stakes/Hygiene Factor Winners Give competitive advantage Drive / support business strategy Have a customer value proposition Types Of Work Information Technology Taking The Lead And Leading The Way

17. Data center operations Network operations Desktop support Personal productivity tools Core accounting and operational systems Bureaucracy Procurement Planning & Budgeting Simplification Standardization Central planning/managed Disciplined change management Continuous improvement programs & benchmarks Leverage volume Service level managed Funding approach - what does it cost? IT Qualifiers & Characteristics Activities Characteristics Reliability, Availability, Efficiency Information Technology Taking The Lead And Leading The Way

18. Supply chain management Data Analytics & Interpretation Decision support Group collaboration E.T.D.B.W. Customized solutions Business driven planning Reduced cycle time Prototyping solutions Funding approach – what is my return? IT Winners & Characteristics Information Technology Taking The Lead And Leading The Way

19. Where Are We Going? • Why do firms use IT? • Why does YOUR firm use IT? • Why does your firm need YOU to use IT? Information Technology Taking The Lead And Leading The Way

20. The Four Roles Of ANY CIO • Services • Managing the IT organization and its people at the desired level of cost, risk and service • Embedded • Working with business units addressing strategy, business process, product and service development etc • Customer • Meeting with external customers or partners as part of the sales or service delivery process • Enterprise Process • Managing enterprise processes and associated digital platform. e.g. shared services, product or service development, operations etc. Center for Information Systems Research, Sloan School of Management MIT Information Technology Taking The Lead And Leading The Way

21. Center for Information Systems Research, Sloan School of Management MIT Information Technology Taking The Lead And Leading The Way

22. CIO Purpose/Job Role To ensure that we make more money than our competitors because we use IT better than they do Information Technology Taking The Lead And Leading The Way

23. Lessons Learned • Understand the basis of competition adopted by your business • IT is important to the business but is not the business • People are invited to join the top table, it is not a right • To make a difference you need to know what will make a difference and spend time on it • Its surprising how much you can accomplish if you don’t worry who gets the credit • ‘Strategic’ is not a measure of self worth Information Technology Taking The Lead And Leading The Way

24. BREAK POINT • UNUSED SLIDES BEHIND THIS ONE Information Technology Taking The Lead And Leading The Way