CIOs: How to Become the CEO s Business Partner

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1 CIOs: How to Become the CEO s Business Partner A Best Practices ebook Nicolas Betbeder-Matibet, Managing Director, MEGA Asia -

2 The Agenda for CIOs in 2012 According to Gartner*: CIO strategies concentrate on eliminating IT and enterprise distortions. *Gartner, Inc., Executive Summary: Amplifying the Enterprise: The 2012 CIO Agenda, Published: 1 January 2012, Analyst(s): Mark P. McDonald Dave Aron CIO IT strategies concentrate on eliminating IT and enterprise distortions CIO IT strategies Ranking of IT strategies CIOs selected as one of their top 3 in 2012 Ranking Delivering business solutions Reducing the cost of IT Developing or managing a flexible infrastructure Expanding the use of information and analytics Improving IT management and governance Improving business alignment and relationship Implementing mobility solutions Consolidating IT operations and resources Implementing business process improvements Improving the IT organization and workforce Implementing cloud solutions (SaaS, IaaS, PaaS) * * * * * * *Not an option that year

3 CIO and CEO priorities are not the same The common thread is that CIOs are looking slightly more tactically, functionally and operationally playing within the current business context; CEOs are looking slightly more strategically, structurally and organizationally playing with the business context. Comparison of CIO and CEO Business Priorities From the CIO Survey Increasing enterprise growth Attracting and retaining customers Reducing enterprise costs Increasing productivity Expanding into new markets or geographies Creating new products and services (innovation) Managing and delivering operational results Improving efficiency From the CEO Survey Increasing enterprise growth Reducing enterprise costs Expanding into new markets or geographies Increase profitability Implementing finance and controls Talent and workforce management/development Consolidating, standardizing and streamlining operations Execute acquisitions, mergers and partnerships *Gartner, Inc., A Comparison of the CEO and CIO Surveys Finds CIOs Must Elevate Their Focus, Published: 21 March 2012, Analyst(s): Dave Aron, Mark Raskino Improving marketing and sales effectiveness Attracting and retaining the workforce Implementing finance and controls Improve governance, compliance, risk and security Significantly higher from CIO perspective Significantly higher from CEO perspective Improve governance, risk, compliance and security Create new products and services Implement new and improved technology Customer focus Source: Gartner (March 2012)

4 What are CIOs expected to contribute... Support enterprise growth and expansion Consolidate, standardize and streamline organization to become a CEO business partner? Reduce enterprise costs via better efficiency Improve governance, risk and security

5 CIOs have a three-step journey Step 1 Step 2 Step 3 Maximize performance of business operations Support and drive business transformation Inspire and enable strategic decisions

6 Step 1 Maximize performance of business operations Challenge 1 Deliver services supporting business processes according to the appropriate SLAs. Challenge 2 Contribute to the flexibility and business agility of the organization through adaptable and agile IT assets. Provide business services (vs. provide tools) Enable business agility (vs. additional barriers to change) Maximize performance of business operations

7 Step 2 Support and drive business transformations Challenge 1 Determine and prioritize the changes needed in different business areas through engagement with business leaders Challenge 2 Execute and deliver the changes, ensuring that the business impacts of the changes are understood and appreciated within the enterprise Enforce a business-driven change management process (vs. technology-driven) Manage transformation to deliver business benefits (vs. deliver project) Support and drive business transformation

8 Step 3 Inspire and Enable Strategic Decisions Challenge Closely engage with business leaders in a two-way, collaborative process to position the IT strategy so that it supports and contributes to the business strategy Position the IT strategy as a part of the business strategy (vs. implementation plan) Inspire and enable strategic decisions

9 Three Key Practices for CIOs Key Practice 1 Key Practice 2 Key Practice 3 Enterprise Architecture IT Asset Management Transformation & Governance Step 1 Step 2 Step 3 Maximize performance of business operations Support and drive business transformation Inspire and enable strategic decisions

10 Key Practice 1: Enterprise Architecture With major trends like cloud and mobility, architecture has a renewed importance for IT performance EA can guarantee the alignment of IT assets with business for today and the ability to support future business changes for tomorrow

11 EA and Business Architecture Align IT with Business Business architecture and enterprise architecture provide the structure to align IT with business goals and optimize resources according to strategic goals Business Architecture Strategy & objectives Capabilities Business functions Business processes IT Architecture Applications Services Technology Enterprise Architecture Blueprint Information Business vocabulary Data

12 Key Practice 2: IT Asset Management Asset management enables IT to increase the business contribution of existing assets and determine future investments based on business needs It offers an opportunity to combine the critical service provider role with the business partner role

13 Application Portfolio Management Improves Asset Value and Customer Service Application Portfolio Management provides tools to assess the value of your application legacy and reduce its cost Technical efficiency & Safety Tolerate Innovate Eliminate Migrate Business Value Cost & Risk!

14 Key Practice 3: Transformation & Governance Leveraging its core project management strengths, IT can go beyond alignment and be a driver of change IT teams help identify, design, and execute change on an end-to-end basis, not just within IT but across the business They provide governance tools to control and manage risks

15 Transformation Transformation management practices help analyze different scenarios and plan appropriate change Business Architecture Strategy & objectives Capabilities Business functions Business processes Enterprise Architecture Blueprint Information Business vocabulary Transformation! IT Architecture Applications Services Technology Data Costs & Risk scenario analysis Roadmaps

16 Governance Governance practices ensure that operations are under control and risks are managed, while integrating all stakeholders as required Business Architecture Strategy & objectives Capabilities Business functions Business processes IT Architecture Applications Services Technology Enterprise Architecture Blueprint Information Business vocabulary Data Transformation! Costs & Risk scenario analysis Roadmaps Governance Action Plans Risks Controls & Audit management Incident Self assessments

17 The Consumer Goods Experience Procter & Gamble achieved success with EA: A comprehensive understanding of both business and IT architecture creates a vital information resource to support innovation and improve business decisions, while increasing the value and cost efficiency of IT for the enterprise. For P&G, it was the first step toward centralized information and the way to see and understand how the company s business processes related to the thousands of business applications used to support and deliver the business. P&G is: #27 on the Fortune 500 #24 in the World s Most Innovative Companies, according to Forbes

18 The Insurance Experience A leading insurance company CIO, overseeing worldwide IT operations, improved change management through EA. To better contribute to the company s strategy, the CIO transformed the IT department from reliable service provider to accountable business partner A change management and business architecture skill center were created within the IT department The new capabilities enabled the IT department to go beyond solution deployment, to business change management and benefits accountability

19 Key Practices to Make the CIO a True Business Partner Key Practice 1 Key Practice 2 Key Practice 3 Enterprise Architecture IT Asset Management Transformation & Governance Step 1 Step 2 Step 3 Maximize performance of business operations Support and drive business transformation Inspire and enable strategic decisions

20 For more information about our enterprise architecture solutions:

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