Making The Difference The 2008 CIO Agenda

Transcription

1 Participación estratégica del CIO en el crecimiento y desarrollo del los Seguros Salvador Orozco Junio 2008 Making The Difference The 2008 CIO Agenda 0

2 Making the difference in 2008 comes applying technology to create distinctive solutions. Enterprises expect IT to make THE difference IT makes the difference through effective IT and focused innovation CIOs are changing their roles to make the difference Deliver the difference in

3 Enterprises expect IT to make the difference 2008 Business Expectations To what extent will each of the following be a top priority for you in 2008? Insurance 2008 Improving business processes Attracting and retaining new customers Creating new products or services (innovation) Expanding into new markets or geographies Reducing enterprise costs Improving enterprise workforce effectiveness Expanding current customer relationships 7 * 3 Increasing the use of information/analytics Targeting customers and markets more effectively 9 * 9 Acquiring new companies and capabilities (M&A, etc) 10 * * New question for 2008 ** New question for

4 What is THE difference? The reason customers use when they choose YOU! 3

5 THE Difference separates you from the rest of the Cloud. Better 54% 14% Unique Customer Intimacy Product Leadership Everyone Else Operational Excellence 32% Cheaper Adapted from Treacy and Wiersema. The Discipline of Market Leaders 4

6 CIOs see the need to change to create THE difference. Value Discipline Level of Change Limited Modest (evolutionary) Structured (new strategy) Significant (> 50%) Total Customer Intimacy 1% 7% 26% 20% 54% 73% Operational Excellence 1% 4% 16% 11% 32% Product Leadership 0% 2% 7% 5% 14% Total 2% 13% 49% 36% 100% 5

7 The Difference comes from distinctive solutions that build from a base of generic operations. Generic Operations Importance to strategy Critical Required Internal Internal Application Technical Context Technology Strategic Difference Business Context External Application Results External Distinctive Solutions Operation Degree of Change 6 Transformation

8 IT budget growth is accelerating but remains modest. Average Weighted IT Budget Increase 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 1.3% 2.5% 2.7% 3.0% 3.3% 0.0% Weighted IT budget increases

9 Making the difference in 2008 comes applying technology to distinctive solutions. Enterprises expect IT to make THE difference IT makes the difference through effective IT and focused innovation CIOs are changing their roles to make the difference Deliver the difference in

10 Creating distinctive solutions extends the CIOs focus both IN and ON the business. The Business IN ON Importance to strategy Critical Enablement Strategic Value Frontier Generic Operations Distinctive Solutions Operation Transformation Degree of Change Working IN and ON the business Adapted from: The E-Myth by M. Gerber 9 To create Distinctive Solutions from Generic Operations

11 CIOs are concentrating on delivering strategies based on proven practices and priorities CIO Strategies To what extent will each of the following be a top five priority for you in 2008? Delivering projects that enable business growth Linking business & IT strategies and plans Attracting, developing and retaining IT personnel Improving the quality of IS services Improving the business and IT relationship 5 * 4 Implementing IT process improvements Improving IT governance Building business skills in the IT organization Use of information/intelligence in ops, products or service Reducing the cost of IT * New question for 2008 ** New question for Insurance

12 CIOs continue to invest core technologies that can drive distinctive solutions CIO Technology Priorities To what extent will each of the following technologies be a top five priority for you in 2008? * New question for 2008 ** New question for Insurance Unweighted Average Budget Change Business intelligence % Enterprise applications (ERP, SCM, CRM, etc) % Servers & storage technologies % Legacy modernization, upgrade or replacement % Security technologies % Technical Infrastructure % Networking, Voice and Data % Collaboration technologies % Document management % Service oriented (SOA, SOBA) %

13 CIOs see the need improve skills, innovation and their role in strategy. 12

14 Making the difference in 2008 comes applying technology to distinctive solutions. Enterprises expect IT to make the difference IT makes the difference through effective IT and focused innovation CIOs are changing their roles to make the difference Deliver the difference in

15 CIOs have the tenure reporting relationships and experience to lead significant change CIO Tenure (current job) Average: 4 years 4 months 39% Less than Three Yrs 34% Three to Five Yrs 16% Six to Eight Yrs 6% Nine to Eleven Yrs 2% Twelve to Fourteen Yrs 2% More than 15 Yrs 1% More than 20 Yrs CIO Tenure (career as CIO) Average: 7 years 1 month 24% Less than Three Yrs 25% Three to Five Yrs 20% Six to Eight Yrs 13% Nine to Eleven Yrs 7% Twelve to Fourteen Yrs 6% More than 15 Yrs 5% More than 20 Yrs CIO Reporting Relationship Role Immediately Prior to CIO 50% 40% 30% 20% 39% 23% 17% 21% IT executive other 34% IT executive same 22% CIO other 19% Business Exec other 16% Business Exec same 9% 10% 0 CEO CFO COO Other 14

16 The CIOs role is expanding as business expectations and CIO performance grow. Number of outside responsibilities > 3 Percentage who report having this responsibility. 75% Business Process Improvement 67% Enterprise Strategy Planning 65% Procurement & Vendor Mgmt 38% Customer Contact Center 30% Property and Facilities 41% Innovation Office 29% Human Resources 34% Business Development % Business Process Improvement 32% Procurement & Vendor Mgmt 18% Property and Facilities 8% Human Resources 30% Business Process Improvement 11% Procurement & Vendor Mgmt 4% Property and Facilities IT 32% Enterprise Strategy Planning 17% Customer Contact Center 7% Innovation Office 8% Business Development 10% Enterprise Strategy Planning 6% Customer Contact Center 5% Innovation Office Internally Focused 15 Externally focused

17 Making the difference in 2008 comes applying technology to distinctive solutions. Enterprises expect IT to make the difference IT makes the difference through effective IT and focused innovation CIOs are changing their roles to make the difference Deliver the difference in

18 Evaluate your IT portfolio. CIOs will create different types of solutions for the enterprise. Yes Distinct Need Operational Improvement B Open Innovation Optimize Optimize Focused Innovation Focused Innovation A Open Innovation A B C Distinctive Solution Achieved through Open Innovation Core Capability Achieved through Optimizing Capabilities Point Solution Achieved through Focused Innovation No D Operational Improvement C D General Operations Achieved through Operational Improvement No Distinct Solution Yes 17

19 The CIO and IT organization is expanding their focus to make a difference through distinctive solutions. Importance to Strategy Critical Make a difference Information Innovation Processes Effectiveness Services Enablement Functions Do more with less Operation Proven Practice Degree of Enterprise Change 18 New ways of working Transformation

20 CIOs see pricing, regulation, growth and demographic challenges in the future. Economic, social and environmental concerns. 19

21 Your CIO Agenda is not immune to economic conditions. Stronger Scenarios A = Continued Strong Growth A B Economic Context B = Peak of the Business Cycle C = Recession C Weaker

22 The CIO action plan applies across different economic scenarios. CIO Action Plan 1) Use your value discipline to identify your enterprise difference 2) Evaluate IT s contribution to those differences in contrast to enablement of generic solutions 3) Attract the right people and build the right skills in IT A B C 4) Assess and address gaps in IT capabilities to meet business expectations. 5) Strengthen enterprise architecture to leverage existing technologies. 6) Evaluate your business and technical performance to determine the strength of the CEO/CIO relationship 7) Use the assessment to identify areas for improvement, communication and transformation 8) Build a business process capability focusing first on IT processes 9) Look to take on adjacent responsibilities. 10) Measure ITs impact on enterprise performance and strategy 21

23 Your Name Your Title Presentation Date Making The Difference The 2008 CIO Agenda 22