Making It As A 21-st Centry CIO

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2 Making It As A 21-st Centry CIO Bobby Cameron Vice President And Principal Forrester Research November 5, 2007

4 Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT to be successful at BT? How will IT successfully respond to the design for people, build for change imperative? 4 Entire contents 2007 Forrester Research, Inc. All rights reserved.

5 Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT to be successful at BT? How will IT successfully respond to the design for people, build for change imperative? 5 Entire contents 2007 Forrester Research, Inc. All rights reserved.

6 Business organizations are frustrated with IT Businesses are impatient with IT s speed Firms can t govern technology populism Technology allows users to out-pace IT projects IT s design-build-maintain approach isn t working! 6 Entire contents 2007 Forrester Research, Inc. All rights reserved.

7 New technologies enable business users without IT Tech populism blogs, wikis, IM, handheld devices Assembling, composing, and configuring business process management (BPM), information workplace (IW) Contracting Software as a service (SaaS), business process outsourcing (BPO) All based on increasingly robust IT infrastructure and operations 7 Entire contents 2007 Forrester Research, Inc. All rights reserved.

8 Business Technology (BT) is rapidly emerging Pervasive technology use that drives business results BT is a fundamental change in technology management not another pendulum swing from centralized-to-decentralized IT 8 Entire contents 2007 Forrester Research, Inc. All rights reserved.

9 Business organizations play roles previously in IT Defining or designing the solution 3% 10% 28% 31% 25% 3% Directly selecting vendor-offered solutions 7% 16% 34% 25% 15% 3% Directly negotiating with and/or directly managing solutions vendors 6% 19% 26% 27% 19% 4% Directly configuring solutions to deliver what you need 3% 5% 28% 36% 24% 3% Directly managing projects with substantial technology involved 5% 10% 30% 32% 21% 2% Directly managing the technology solutions once in production 3% 12% 21% 38% 24% 3% Base: 186 global business executives Source: July 2007 US The Business View Of IT Online Survey 9 Entire contents 2007 Forrester Research, Inc. All rights reserved. Completely other business areas (not IT s) responsibility More other business areas responsibility Equal mix of other business areas and IT More IT s responsibility Completely IT organization s responsibility Don t know

10 IT has to balance the two aspects of increased business control Business control is risky... Information integrity and consistency Assuring compliance, security, policy, and privacy Quality assurance Execution performance... but business control means opportunity User-driven speed Business agility Networked business models Founded on IT excellence 10 Entire contents 2007 Forrester Research, Inc. All rights reserved.

11 Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT to be successful at BT? How will IT successfully respond to the design for people, build for change imperative? 11 Entire contents 2007 Forrester Research, Inc. All rights reserved.

12 Traditionally, IT handles the entire technology stack Dynamic and differentiated technologies Stable foundation and commodity technologies X Internet, multichannel, mobile, SOA Transaction systems, data warehouses RDBMS, BI platform storage, servers data center ops, desktop maintenance 12 Entire contents 2007 Forrester Research, Inc. All rights reserved.

13 But with BT, business people deliver solutions Historically, it s all been IT but with BT, business people deliver dynamic, differentiated solutions 13 Entire contents 2007 Forrester Research, Inc. All rights reserved.

14 With BT, business users needs are changing Traditional IT provides: Solution analysis, design, delivery, and operations Project management IT-centric technology New technology R&D BT users also need from IT: Solid business app platforms SOA services for data, transactions, policy, security, etc. Deep technical skills on call Support for BT tools Operational support for BT solutions Project support services Help with skills development Open minds, support, & culture Joint business innovation 14 Entire contents 2007 Forrester Research, Inc. All rights reserved.

15 The bottom line: Agree with it or not, you won t outlast this change BT is a fundamental change in technology management not another pendulum swing from centralized-to-decentralized IT 15 Entire contents 2007 Forrester Research, Inc. All rights reserved.

16 Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT to be successful at BT? How will IT successfully respond to the design for people, build for change imperative? 16 Entire contents 2007 Forrester Research, Inc. All rights reserved.

17 There s a fork in the road: Take it! Focus only on traditional IT Letting business areas run ahead without you Getting stuck in the technology engine room Focus heavily on enabling BT Empowering business success with managed risk Becoming a partner player 17 Entire contents 2007 Forrester Research, Inc. All rights reserved.

18 IT enables BT by enabling flexibility From: IT/business alignment Business results from large IT-led projects Investments that cover much of the technology stack Crisp lines between IT and business roles IT-does-it-all IT assures risk and policy To: BT synchronization Business results mostly from small BT efforts User investments in thin layers at the top tech stack Data and transaction investments deep in the stack Fluid lines of responsibility between IT and the business Business-user-enabling IT has open minds and culture IT enables users to manage risk and policy 18 Entire contents 2007 Forrester Research, Inc. All rights reserved.

19 Today s IT organization manages all technology... CIO IT Architecture IT Demand Management Development IT Operations IT Strategy & Planning 19 Entire contents 2007 Forrester Research, Inc. All rights reserved.

20 Today s IT organization manages all technology... CIO IT Architecture IT Demand Management Development IT Operations IT Strategy & Planning Technology Exec 20 Entire contents 2007 Forrester Research, Inc. All rights reserved.

21 ... but CIOs must become chief BT officers, restructuring IT... BT Architecture BT Strategy & Planning Development CBTOs Technology Exec BT Synchronization IT Operations Business Organizations Business Organizations Business Organizations... as business orgs take on roles previously in IT Business analysis Project management Application configuration Information management Analytics delivery Security, compliance, risk, and policy assurance 21 Entire contents 2007 Forrester Research, Inc. All rights reserved.

22 Strategic roles expand in the BT organization BT Role: BT synchronization BT architecture BT strategy and planning Description Business-based, enterprise- and solutions-network-wide balancing of demand, focus, and change Includes traditional demand management for tech resources Ongoing mapping of business capabilities to the Bill Of IT Assuring user-driven solutions support for policy, risk management, etc. Handling planning and budgeting for BT s technology resources Interfacing with the entire sourcing network 22 Entire contents 2007 Forrester Research, Inc. All rights reserved.

23 Summary Business organizations are frustrated with IT And BT makes it easy for business to take control of technology Roles previously in IT are moving to the business There s a fork in the road: Take it! Stay ahead of this change by enabling BT 23 Entire contents 2007 Forrester Research, Inc. All rights reserved.