The new CIO Leader : Managing in Turbulent Times

AJAY KUMAR DHIR

EXECUTIVE DIRECTOR & GROUP CIO

LANCO INFRATECH LIMITED

CIO Mid EastDubai – September 10th,

2012

Today’s volatile times present a major opportunity for CIOs to transform and drive substantial IT enabled business change. There has been great uncertainty in global business

Global economic uncertainty

Threats to business continuity

Globalization and the Multi-Polar world

IT abundance

For the CIO – uncertain times present an opportunity in three areas

• It is now a competitive imperative – you have to optimise IT costs, enable the business to achieve structurally lower costs AND deliver improved quality

• Increase strategic focus in 3 key areas and position the business for growth:

1. Business relationship management2. Information strategy3. Enterprise Architecture

• There is a pressing business priority to “balance Enterprise Risk with increasing business demands” and ensure appropriate business continuity

IT industrialisation

Deliver IT enabled business advantage

Balance and manage enterprise

risk

Industrialized IT:

use of methods common in manufacturing and global supply chain

Simplify

Standardise

• Few strategic partners• Global standards for technology• Few local solutions – global templates

• Methods• Processes/Procedures• Workforce management

• CMMI • 6 sigma• Lean development

Industrialisation of IT – increasingly a competitive imperative

Labour arbitrage and skills pools

Automate• Common tooling• Governance transparency• Performance metrics and reporting

Continuous improvement

Infrastructure Process Application Security Organization

Printer/Fax Operations Review

Non standard/Shadow IT costs review

Project portfolio investment Review

PKI Rationalization Procurement Spend Review

Telecom Expense Management

Quota Management Review License SpendDisaster Recovery Re-Prioritization

Supplier Rationalization

Server/Storage/Database Consolidation

Self-Service Renegotiate Service LevelsPerimeter Security Rationalisation

Vendor SLA

Facilities Consolidation Dynamic Provisioning Portfolio RationalizationSecurity Software Consolidation

Contract renegotiation

Thin client computing Workplace CollaborationRationalise test and development environments

Security Information & Event Management (SIEM)

Operating Models

Virtualisation Process Reengineering Application ConsolidationCompliance Automation

Sourcing Strategies

Automated Provisioning

IT Process Automation Application ReplatformingRole Based Network Access Control

Organizational Design

Unified Communications

Information Lifecycle Management

App Refactoring and Decommissioning

Enterprise Identity Management

Shared Services

“Green IT” ITILv3Enterprise Architecture Rationalization

Security Infrastructure Consolidation

Multi-vendor Sourcing

Infrastructure Sourcing Services

IT Process Sourcing Services

Application Sourcing Services

Outsourced/Managed Security Services

Managed Services

There are more than 100 IT Cost Reduction Levers . .

Minimize Optimize Redesign

Top CIO Challenges

1. Maximize utilization of existing resources – manpower, technology assets, infrastructure etc., “do more with less, continue doing more with less…”

2. Retention, Training and Reskilling of internal talent in the organization. Strengthen People Management and Leadership skills for self as well

3. Identify areas of opportunity within the organization for cost reduction and value creation. Adopt simple practices as recommended by TPM, Kaizen etc to generate quick wins and create visibility of IT

4. Establish ‘partnership’ with strategic vendors and service providers with a focus on co-creation of value in a collaborative manner. Examine current contracts and renegotiate wherever possible, or factor in value addition to get more from the same contracts

5. Create a focused approach for Corporate Information Security and protection of Intellectual Property

Top CIO Challenges

6. GRC – Corporate Governance and creating a Risk and Compliance Framework

7. Infrastructure Management – Extending the lifecycle of the investments made

8. Virtualization and Consolidation

9. IT enabling the organization, to drive operational and process efficiencies

10. Extending the value chain of Enterprise Applications to external stakeholders

Top Enterprise Technologies

1. Enterprise Content Management

2. Information Security Management

3. Business Intelligence / Analytics

4. Disaster Recovery / Business Continuity Planning

5. Collaborative Computing / Open Source

6. Cloud Computing

7. HMI (Plant to Business Integration – Shop floor to Top floor)

8. Green IT

9. Virtualization and Consolidation

10. Unified Communication and Telepresence

Qualities of a good leader

1. The Ability to Inspire

2. Communication skills

3. Operational Credibility in driving results

4. The Ability to Prioritize

5. Creativity and flexibility (the ability to embrace change)

6. The Ability to be a “Fish Out of Water” leader

7. The ability to position one’s organization as a hub for talent

8. Consistency

The 4Ps – Keys to Success

1. Perception – Shape how you are viewed

2. Profile – Craft more than your org chart slot

3. Participation – Don’t wait to be asked

4. Performance – Stand and Deliver

• There is no future for the ‘order taking, looking only for efficiencies’ type of CIO : Change or be ousted.. KPMG Report

• The big game in town now has moved on from efficiency – although that is still important – to how everybody exploits IT to create value and what that does for a company’s investment plans and the changes that the company makes… Chris Potts, IT Strategist and author of FruiTion

How CIOs should think aboutbusiness value

• Many organizations can’t get a true fix on the value IT adds to the businesses it serves : defining, measuring and maximizing that value remains elusive

• Grasping the business value from IT is challenging. CIOs who are successful in this endeavor, broaden their scope of action beyond the technical sphere and traditional IT levers

The CIO Agenda

What is shaping the IT agenda?

How can IT add Strategic Value to the Enterprise ?

1. Revenue growth/customer reachA leading study by Microsoft and the Harvard Business School found that leading IT functions can improve revenue growth by almost 7%.

Source: Research study by Keystone StrategyInc. Harvard Business School and Microsoft

2. Profitability/cost competitivenessA study by the Hackett Group found that top IT performers generate $1.07 billion more operating profit on an annual basis and $645 million higher net profit

Source; “Delivering Value Through IT Business Value Management”.

3. Shareholder value/stakeholder confidenceA study by the Corporate Executive Board found that overall competence inthe IT function can increase Total Shareholder Return by as much as 20%;

Source: “The Performance Payoff”.

4. Risk reductionA study by the ISF (Information Security Forum) found that the 30% of top performers in Information Security have significantly fewer security incidents (37%).

Do these trends imply changing the look out towards IT ?

► Diversification planned

► Growth plan

► Inconsistencies in IT functions

► How to achieve the required automation

► Empowering IT group with a certain set of

policies and procedures

► How to make sure that the information

needs of various stakeholders are being

fulfilled

► Is IT satisfying the automation and

information needs at all levels

► How to manage a the IT function

Organizational considerations

Addressing the top IT challenges

Strategic Alignment - Business Strategy or IT Strategy? Is there an answer?

► Today's organizations have adopted information technology in

an “enabler role‟ over a past perception of “supporter role‟.► Considering the benefits derived due to IT enablement the

annual budgets of organizations includes IT initiatives.► Having decided to invest in information technology, management

of most organizations want to align IT adoption in line with the

business strategy .► To address the above concern, one has to consider the

information universe. This will take into account the business

strategy and information needs of the organization.► Based on the business strategy a “fit for purpose‟ IT

strategy is developed which enlists the IT initiatives to support

the short and long term business goals.► IT strategy also provides a roadmap for implementation

of the initiatives and guidelines on the governance models for the

implementation plans.

Strategy for “Best in Class” enterprise

Drivers

► Draw out synergies between businesses across:

► IT strategic initiatives

► IT application and infrastructure

► IT Service Management► People and Processes

► Evolve IT as business enablerfor future business growth and competitive advantage

► Establish Aligned andAccountable IT organization

► Industry Benchmark to leverageand adopt leading practices

Developing

Leverage of the Existing Vision Investments

Improve by

bridging gaps

in current

utilization

Technology

Visioningoptimization

External IT Strategy

Focussed and

Ascertain the Roadmap

need/extent

of

collaboration

with

business

partners for

seamless

integration

New

External dimensional

Partners technology

IT andenhancementInitiatives stakeholders

An escalator of change for the enterprise

Define Gaps Best in Class

- Initiatives Evolve IT as a

to cover “Strategic

gaps and enabler”

create

charter

The finaldestination

Outsource

non-core

essential

applicationand

associated

infrastructure

Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6

New Technology Initiatives

Adopt new

technologies to

support business

growth

How to get there ?

As an “engine” of change inAlignment to

business objectives

Methodology

SUB HEADLINE

Generating value-in-use :IT Generated Value

Finding Levers where IT and Business Units intersect : Business Performance Through IT

Building Alliances

Dynamics of Value Creation through IT

Creating Business Value through IT – Benefits and Challenges

Business Relationship Management–Increased role in investment planning and driving IT enabled business process and innovation

IT Organisation

Business

Externals Vendors Suppliers

Business Change

Service Change

DemandPlanning

Resource Scheduling

Delivery Management

Resource Planning Strategy

Refresh

BusinessChange

Management

BenefitsRealisation

InvestmentPlanning

Supply/DemandBalancing

Doing the Right Things Doing Things the Right Way

Delivering the Benefits Delivering to CommitmentsService

Introduction

Responsibility

Partners

Enterprise Architecture – Planning for simplification and avoiding tomorrow’s “fur-balls”

• Key role in ensuring IT and business strategies/process transformations are closely aligned

• Defining and managing technical, application and information roadmaps

• Reducing complexity, enabling future flexibility/agility

Thank You

Contact me at :akdhir@yahoo.com

akdhir@gmail.com