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CIO: Build a Personal Development Plan to Become Chief Enterprise Integration Officer. Your role is at a crossroads. Reinvent yourself now or risk becoming head of technology support . Introduction.
CIO: Build a Personal Development Plan to Become Chief Enterprise Integration Officer Your role is at a crossroads. Reinvent yourself now or risk becoming head of technology support.
Introduction CIOs have to act now and arm themselves with the capabilities needed to be a strategic member of the executive team, or risk being relegated to an operational maintenance role and eventually becoming obsolete. CIOs/IT executives who are seeking guidance to develop the capabilities necessary to remain relevant in a fast-changing business environment. CEOs who want to understand the capabilities of a CIO who will help to deliver better business value. Organizations that have sufficient technology support, but are seeking to create a role with an enterprise view of the integration needs of the business. Develop the capabilities that will enable you to transition from the classic CIO role to the new Chief Enterprise Integration Officer (CEIO) position. Optimize the key accountabilities of the CEIO role to improve IT’s integration with the business. Foster key business relationships, both internal and external, to improve your ability to drive business improvement and innovation. This Research Is Designed For: This Research Will Help You To:
Solution Set Overview • This solution set is designed to help the IT executive set a course to becoming the Chief Enterprise Integration Officer (CEIO). • It includes several tools to assist in that journey: • CEIO Capability Assessment • Stakeholder Power Map Template • Stakeholder Management Strategy Template • Personal Development Plan Template • CEIO Scorecard • Completion of these tools will take time – recognize that you are responsible for your next career move, and make the necessary commitment to positioning yourself for success. The CIO will be the nucleus of any company, working closely with business executives and finance; strategizing about future technology directions; leading a staff of highly skilled professionals and leaders; championing streamlined technical operations. - Louis Lantin, Director, Enterprise Collaboration Group, Amtrak Become the Chief Enterprise Integration Officer Appreciate the key drivers for the CEIO role Assess your CEIO capabilities and stakeholder relationships Build your transformation action plan Identify the five drivers demanding change Determine your high priority capability gaps Understand how the CIO role has evolved Identify the most important stakeholders Design your CEIO Personal Development Plan Develop a scorecard to track your progress
Executive Summary • The CIO’s position is weakening. • Emerging technologies are leading the organization to question its need for an IT department and thus a CIO. The business is going around IT and procuring cloud services directly from vendors. Rising roles such as the CMO and other CXO roles are often filled by people with sufficient technical acumen to cause the organization to question the relevance of the CIO role. • At the same time, the CIO role is experiencing pressure from the CEO to: • Provide flexibility to adapt to changes in the business environment, • Enable top-line growth, • Help position the organization in terms of brand equity, • Understand the business and IT risk associated with new technologies, • …AND continue to drive down costs. The CIO needs a new agenda or he/she will end up as the Chief Technology Support Officer. • If the CIO fails to recognize that the role is eroding and to re-define the role to focus on highly-innovative integrative business solutions, as opposed to technology support, the CIO role will be severely devalued and will cease to exist within a few years. The Chief Technology Support Officer may survive, likely as the IT Director. • The CIO must do the following to remain a strategic partner with the business: • Drive innovation, be the technology visionary, and support revenue generation. • Manage IT likea business. • Ensure information assets are adequately protected. • Be a business leader. • Drive business insights through big data. The CIO needs to reinvent the role as the Chief Enterprise Integration Officer. • The CIO must take responsibility for his or her own personal improvement and develop the capabilities required to become the CEIO. • Info-Tech has identified 11 capabilities required to achieve success as a CEIO and a methodology to reach the level of capability that you will need to not only remain relevant, but emerge as a key figure in your organization. • •
The fundamental model for IT is being forced to change It is no longer about aligning with the business – it is about driving innovation and integration throughout the enterprise. Mobile devices are ubiquitous – PCs are becoming less relevant. The digitization of everything has resulted in an enormous volume of data. Enterprise systems can be purchased as a service. Many older IT systems are expensive and inflexible. Managers are procuring their own IT services and solutions without involvement of IT. The cloud is commonplace.
The CIO’s position is weakening Faced with a barrage of new technologies and increasing demands by the CEO, the CIO must adopt a new set of capabilities. Some emerging technologies are leading to a weakening of the CIO’s position within the organization. Indeed, cloud computing is making organizations question the need for an IT department, let alone a CIO. At the same time, the CIO is experiencing increasing pressure from the CEO to: • Provide flexibility to adapt to changes in the business environment. • Enable top-line growth. • Help position the organization in terms of brand equity. • Understand the business and IT risk associated with new technologies. If the CIO fails to re-define his/her role to address these challenges, the role will become redundant and will cease to exist within a few years. • If IT cannot move faster and show the business what is possible, it will become increasingly marginalized, and will likely to be absorbed into the cloud and the business.
The VP of electricity did not disappear because electricity disappeared The pessimists believe that the CIO role will become redundant and may cease to exist – at least in its current form and shape. It has been said that, at the turn of the 20th century, electricity was so scarce that there was a very senior role in the organization to generate, secure, and manage it. As the infrastructure for electricity generation developed, and electricity became a commodity, this position disappeared. There are those who believe that IT faces a similar future. The most extreme view contends that in-house IT will become a shadow of its former self, looking after old legacy applications that no one else wants to touch. Under this scenario, funding for IT services will flow from the business through business IT groups that will devise processes out of cloud services. Another scenario envisions the merger of the CIO and CFO. And still another – recognizing that marketing is now the central engine of growth for many companies – proposes the creation of a Chief Marketing Technologist to replace the CIO. • I think the role of the IT leader will change in many ways. It’s hard to say where the IT group will be. The role will definitely be more about advisory around emerging technologies and assisting with mergers and acquisitions. • - Harald Ujc, Director of IT, George Weston Limited
The CIO has to reinvent the role as Chief Enterprise Integration Officer or… .. end up as Chief Technology Support Officer (CTSO) (not that there’s anything wrong with that). CIOs will be faced with a choice: • Continue to focus on providing a slick, trouble-free service to the business, or • Demonstrate higher value through supporting business decisions, delivering innovation, and contributing to business strategy. The existence of legacy systems and applications means that for the CIO to overcome becoming seen as the first point of contact for IT problems, he/she must build a strong team with the necessary technical capabilities, and learn to delegate operational concerns. If you are a technology-centric CIO, not a business-centric CIO, you will have little to do in the organization in the future. • Mandate of CEIO • Provide vision and insight to the development of the business strategy. • Demonstrate leadership and expertise for business technology initiatives. • Ensure trans-enterprise integration of business processes, technology solutions, data, customer experience, etc. to drive competitive capability, innovation, and new revenue. • Keep the business running by ensuring the integrity of all technology systems and solutions. • Mandate of CTSO • Provide information and communications technology support services to the organization. • Maintain efficient and effective IT services and infrastructure to support the organization’s goals. • Develop and maintain the disaster recovery program. • Ensuring account, server, and systems security, and management of systems and operating hardware. • Manage support from external service providers and contractors. • As CTSO, you will get to the root cause of recurring issues, build policy and procedure around key IT functions, and implement a triage system for the help desk; to help you with this, read Info-Tech’s solution set Move to a Stable & Controlled IT Department.
Firms will always need a chief integrator The CEIO will be the common thread that weaves the various fabrics of data, business processes, and technology together across the enterprise. It is risky for firms to think they can handle IT without an IT leader in place. Though everyone uses technology, not everyone can: • Map out its strategic deployment, or • Understand the business and IT risks associated with it. While business and functional units might choose the products to use and the strategies to adopt, the CEIO will be the common thread across the enterprise – ensuring that the decisions being made by the business units facilitate a seamless flow of information across the enterprise. Firms need someone at a suitably strategic position in the organization to: • Guide business prioritization and technology decisions. • Articulate the value of complex technology-based initiatives. • Oversee the value the company creates from its investments. Ditch the CIO role – reinvent it as the Chief Enterprise Integration Officer. • The new CIO is as pervasive a role as the CFO. There is no part of the business that technology doesn't touch. Like the CFO, the CIO should have a seat at the most senior level of the company. • - Irving Wladawsky-Berger, Strategic Advisor, • Wall Street Journal Contributor
The CEIO will drive integration throughout the enterprise The optimists argue that cloud and the consumerization/democratization of IT elevate the importance of IT, as both an integrating force and a strategic focus. The degree of penetration of IT across the organization will increase to the point that: • IT will no longer simply be a support function. • IT will become part of and optimize core business processes. The CEIO will be transformed from technology expert to business engineer: essential to the strategic growth of the firm. • Focusing on highly innovative business engineering. • Driving transformational organizational change. This CEIO no longer requires a technological or content specialization; rather, he/she will combine a strong understanding of the business with a broad understanding of technology and its potential to drive business value. As a strategic executive, aligned with the business's view of the world, revenue-generating functions will shift more into the focus of the CEIO. The CEIO will report as a member of the executive directly to the CEO because… • It is no longer simply cost that is the priority. • Rather, it is the strategic benefits, value contribution, and role as innovative driving force.
Use the pathfinder below to address specific questions about becoming the CEIO
Info-Tech identified five main drivers that lead to five demands on the CEIO and require eleven capabilities • 5 Key Drivers • 5 Demands on the CEIO • 11 Capabilities Required • Cloud • CEO’s Expectations • Consumerization & Democratization • Rise of the CMO and other CXO roles • Need for Enterprise-Wide Integration • Facilitate Innovation • Manage IT like a Business • Ensure Information Assets are Adequately Protected • Be a Business Leader • Drive Business Insights through Big Data • Technology Leadership & Innovation • Technology Stewardship • Investment Management • Services Orchestration • Business Acumen • Enterprise Architecture • Information Protection • Business Strategy • Stakeholder Engagement & Management • Leadership & Influence • Data Stewardship & Business Intelligence 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 7 8 9 10 11
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Info-Tech is ready to assist throughout this project Recommended Info-Tech Assisted Implementations Section 2: Making the case for the Chief Enterprise Integration Officer • Capability Assessment: Assist with capability assessment, determine personal prioritization, and discuss how to leverage results into a personalized action plan. Section 3: Assessing the Implications Stakeholder Power Map Template: Aid in performing an accurate stakeholder evaluation, review your completed template, and assess the implications of your Stakeholder Power Map results. Section 5: Understanding the role of the Chief Enterprise Integration Officer Stakeholder Management Strategy: Assist with completion of Info-Tech’s Stakeholder Management Template, review your completed template, and suggest strategies for developing/managing relationships. Section 5: Awakening the CEIO within yourself Personal Development Plan: Review your Personal Development Plan, suggest additional insights, and fill in any gaps. Check in regularly with an analyst to discuss progress and next steps. Section 5: Moving Forward as a CEIO CEIO Capability Scorecard: Aid in reviewing your perspectives, KPIs, and targets, suggest additional insights, and fill in any gaps. Check in regularly with an analyst to discuss progress and next steps.
Making the case for the CEIO The history of the CIO. The key drivers of change: The Cloud. CEO’s Expectations. Consumerization/Democratization of IT. Rise of the CMO and other CXO Roles. Need for Enterprise-wide Integration. Making the case for the CEIO Assessing the capability implications Evaluating stakeholder relationships Understanding the role of the CEIO Awakening the CEIO within yourself
Despite the fact that the CIO role is poorly defined in many instances, it has persisted The CIO role is quite confusing compared with the CEO or CFO. The CIO role can be confusing, particularly when it is paired with the Chief Technology Officer. CIO reporting lines are equally inconsistent – distributed across the CEO, CFO, and COO portfolios. This is a consequence of how IT has evolved: • From being a Finance resource to being a business resource. • From being centralized to being decentralized to being centralized to being decentralized… And while the CIO role has become more common since the mid-1990s, there is no real distinction between that role, and that of the IT or MIS manager of old. There is no clear point in the career of the IT leader at which the role becomes a “chief” role. In reality, very few IT leaders ever get beyond being “IT managers” other than in name. • IT is perceived as: business-enabling, but not necessarily strategic; commoditized and not often proprietary; a cost to be managed and not an investment to extend enterprise value. These are the perceptions that a CIO has to manage.
Whether supporting finance or operations, the CIO role has customarily been perceived as a cost center
But the times they are a-changin’ (as the song says): understand the five main drivers of change for the CIO role • To determine what is needed from tomorrow’s CIO, Info-Tech examined the drivers for change. • 3. Consumerization & Democratization • 5. Need for Enterprise-wide Integration • 1. Cloud • 2. CEO’s Expectations • 4. Rise of the CMO and other CXO roles Look for this diagram at the top of each page to keep track of which driver is being discussed.
Info-Tech has identified the cloud as the major driver for IT organizational change All parts of the in-house IT organization will be affected. • The importance of the cloud to business is enormous: • Entering a new market can be done in hours. • Launching a new product in minutes. • Complex testing and development in mere days. • And with the ever-increasing “anything as a service,” the options for businesses will grow exponentially. • Indeed, IT is increasingly losing control of its role in application selection and development as the business contracts directly with cloud providers for software solutions, and vendors market directly to the business. • Capital budgets are no longer sought out. Business units pay using their own OPEX budget. • Shadow IT is becoming an increasingly serious problem for many IT departments. • If IT cannot move faster to show the business what is possible… • It will become increasingly marginalized and may itself end up in the cloud. • From a department that manages cloud services to a cloud service itself. • The CIO needs to be the "technical conscience" of the organization, taking the leadership role advising the organization on both the good and bad aspects of information technologies. It's not a role they currently play in most organizations. The CIO needs to proactively influence his/her future and the future of the IT organization. "If we don't, we will become the victims of a future that will happen to us." • - Pete DeLisi, Owner, Organizational Synergies, and Academic Dean IT Leadership Program, Santa Clara University
Get ahead of the cloud curve to avoid obsolescence • The cloud will reshape the way you do business. Plan for your organization’s adoption of the cloud before it is too late. The adoption of cloud services is marking the end of classic IT and the Plan-Build-Run model, and demanding a new set of leadership capabilities from the CIO. Info-Tech has identified a new operating model best suited to support your cloud-enabled organization – Enable-Integrate-Manage (E-I-M). E-I-M facilitates a more business-focused approach. With many traditional IT responsibilities being pushed to the cloud, there will be fewer people to manage, providing IT the opportunity to become the technology visionary the business has been seeking. IT will operate like a business: • Facilitating and brokering cloud services on behalf of the business. • Ensuring that the vendors and services they select and manage continue to meet the business’s requirements. New Model: Enable—Integrate—Manage • Manage • Service Delivery Management • Security & Risk Management • Financial Management • Data Management • Enable • Integrated Strategy • Service Management Strategy • Enterprise Architecture • Security & Risk Plan • Budget • IT Organizational Plan • Integrate • Project Management • Service Integration Management • Organizational Change Management
CIOs must be forward-thinking to address the expectations of CEOs Now, more than ever, it is vital that the CIO be aware of the expectations of the CEO in order to position him or herself as a business leader. • CEOs are not seeing the value of IT as a separate department and cost center. • If they believe that shifting IT spend to the business units will drive greater flexibility and efficiency – they will do it. • As CEOs and other CXOs become more tech-savvy, and learn the ins and outs of cloud procurement, being a naysayer is a dangerous proposition for most CIOs. • CIOs have the potential to help shape business strategy and business models – but being encumbered by daily IT operational functions will hamper their strategic aspirations. • It is within their control to delegate operational responsibilities in order to free their time for a more business-oriented role. • CIOs must align their priorities with those of their CEOs – they must demonstrate their capability to drive the organization towards its strategic goals. CEO Priorities vs. CIO Priorities: • CEO Priorities: Revenue Growth, Customer Satisfaction, Talent Management • CIO Priorities: Operational Efficiency, Security & Risk Mitigation, Revenue Growth • CEOs expect IT to be responsible for helping to meet business objectives, including: revenue growth, innovation, and customer satisfaction – as well as for driving cost out of IT infrastructure and the business, and mitigating risk. CIOs need to consider very carefully what numbers they’re putting in front of the board, what those numbers are about, and what conversations they’re having around the numbers that demonstrates the new value of their role. - Chris Potts, Corporate Strategist
Overcome IT’s perception as nerdy, non-aggressive, and boring to gain credibility with the executive • This diagram illustrates the relative perception by CEOs of IT, Finance, and Marketing. • Characteristics on the left are transformative, that is, can cause change in an organization more easily. • CIOs have a major challenge ahead of themselves to position themselves and their department as being leaders in business change. IT is perceived as more boring than Finance! Marketing and Finance are the powerhouses. IT Finance Marketing Risk adversity is the only characteristic in which IT stands out. Adapted from: IT Stereotyping and the CEO-CIO Headlock, Paola Gonzalez, et al., Thirty-Third International Conference on Information Systems, Orlando 2012
Cut out the tech talk and focus on business to overcome IT stereotypes • The issues facing CIOs are a direct result of their focus on operations and keeping the lights on – that is, acting as the IT manger rather than the business partner. • The CIO needs to find a way to shift his/her responsibilities to the latter. • Differentiate between “support” and “enable.” • The forward-thinking CIO has to stop thinking of him/herself as a separate entity from the business. • The CIO who can help the CEO make savvier business decisions is the one who will be invited to stick around, not the one harping on security or boring the CEO with tech talk. • CEO stereotyping of the CIO and IT in general will only be compounded as a result of these kinds of conversations. • Communication around IT should function very much like IT itself. • Talk about how the technology makes things better for the business, on their terms. For example, “We can drive greater customer engagement with a new social media process.”
Get your house in order before taking on the strategy challenge There are three levels of IT maturity: firefighter, trusted operator, and innovator. • Firefighting mode is never a good place to be for IT. • The ability to fight the occasional fire is valuable, but • Consistent firefighting is inefficient and unsustainable. • IT departments in a Firefighting state cannot: • Gain control of their operations, • Deliver acceptable levels of service to the business, or • Sustain any type of stability for infrastructure, applications, or staff. • As IT departments increase their maturity level, they move from being reactive to being proactive – from dealing with chaos, instability, and stress on a daily basis to maintaining a stable and controlled business environment, and eventually to being the strategic partner that the business is looking for. • Transitioning out of Firefighting mode requires adjustments to IT process, technology, and people. Determine the maturity level of your IT department, and what you have to do to facilitate your personal transition using Info-Tech’s Firefighter to Housekeeper Prioritization Tool.
Use the cloud to shift operational tasks out of the firm and prioritize initiatives that matter to your CEO What CEOs want from the CIO: • IT priorities are aligned with business priorities, including: revenue growth, customer satisfaction, and innovation. • CIO understands the industry, including: customer behavior, supplier behavior, and strategic opportunities. • CIO has strong C-level skills such as business communication, talent development, knowledge of the business, and strategic thinking. • CIO, other CXOs, and the CEO develop a strategic agenda for IT-enabled innovation aimed at creating future growth for the business. Business-Focused CIO Technology-Focused CIO • IT Enables the Expansion of the Business • IT Enables the Expansion of the Business Relative Focus • IT Optimizes Business Processes • IT Optimizes Business Processes • IT Supports the Business • IT Supports the Business
Consumerization and democratization have wrestled control of IT decision-making away from CIOs • CXOs from business and functional units have reached a stage of maturity after having used IT for both business and personal purposes over several years. • They are making their own IT investment and product choices – bypassing the IT department and the CIO completely. • To make matters worse, vendors are marketing directly to the business, further devaluing IT’s relevance. • The danger of this is the potential for organizational inefficiencies – redundancies, higher costs, and incongruent data – due to a lack of integration across services. • In addition, a younger generation of consumers and employees – one that has grown up with technology – is forcing new business models, and demanding different tools and functionality than only a few years ago. • CIOs are struggling to accommodate these demands without sacrificing the integrity of the IT infrastructure overall. Users can procure the services they need themselves from various SaaS offerings in the cloud or outsourced vendors. • Consumerization/democratization of IT and the cloud actually increase the importance of IT. Organizations now need someone, at a suitably high level, to guide business prioritization, implementation, integration, and demonstration of value when pursuing technology-based initiatives.
The walls are closing in: the responsibilities of the CIO are eroding as other roles gain importance The Chief Marketing Officer, Chief Digital Officer, and Chief Marketing Technologist have been nibbling away at the CIO’s traditional space. • Chief Marketing Officer (CMO): • Marketing has evolved from an art to a numbers-driven science focusing on analysis for demand generation, campaign analysis, etc. • With the rise of social networking and using technology to interact with the customer base, CMOs have had to become technology savvy to understand and reach their customers. Indeed, Marketing has been able to understand social networking and collaboration at a quicker pace than IT. • It is estimated that 50% of new marketing hires will have a technical background in 2013 (Source: Is the CMO the new CIO?, E.G. Nadhan). • Through years of practice, Marketing has learned to bypass IT and recently this has become much easier, as SaaS and low-risk subscription models gain popularity. • Chief Marketing Technologist: • Some companies have created a new position to bridge the gap between marketing and IT, suggesting that this role report to both the CMO and CIO. • Mobile marketing and mobile commerce represent examples of two growing fields where understanding the technology is less important than understanding customer behavior. • Chief Digital Officer (CDO): • Some organizations have also introduced a CDO to oversee the full range of digital strategies, and the use of digital technologies across the business. • Many CDOs are being positioned as strategic thinkers for emerging technologies. [The CDO] is the one who really understands digital as a means of innovating the company. His daring mission is to transform the business model of the company. The CDO does not implement technology, no, he implements technology-enabled innovation. • Peter Hinssen, “Will the real CIO please stand up?” Mar 7, 2013
Demand for integration is emerging as a key factor influencing IT IT decision making is centralizing not only in areas such as managing IT operations and technology assets, but in areas such as improving and changing business processes. • The trend towards increased centralization is manifested in: • More standardization in IT platforms and applications. • More formalization of IT business processes. • More centralization of decision making regarding IT. • Relatively more IT employees positioned in corporate than in the business units. • A higher rank of the top IT executive in the firm. • It is the result of greater demand for integration – that is, horizontal co-ordination across business units to achieve a common task. • This is a good news story for IT – IT is emerging as an important integrator in many multi-business unit firms because: • IT already facilitates the connectivity of differentiated business units and functions via technology, governance structure, and projects. • IT understands the requirements and capabilities of all business units and functions, and can: • Support cross-business unit innovation. • Identify opportunities to create complementary services. • Achieve economies of scale and scope. It’s a slam dunk that the IT organization plays an important integrative role in terms of the connectivity enabled by the technology. Additionally though, our observations indicate that the IT organization, with a systemic view and ability to communicate knowledgably across diverse business units, plays a surprisingly critical organizational role in coordinating the efforts of those units for the overall benefit of the firm. - Asst. Professor Eric C. Larson, University of Illinois Urbana-Champaign
Assessing the capability implications Making the case for the CEIO Assessing the capability implications Evaluating stakeholder relationships Understanding the role of the CEIO Awakening the CEIO within yourself Five demands driving 11 new capabilities. Assess the importance of the capabilities to your organization. Assess the level of competence required by your organization for each capability. Assess your level of competence for each capability.
The five main drivers of change are placing increasing demands on CIOs CIOs must build the capabilities to address these five key demands from the business. • Facilitate Innovation • CIOs are facing pressure to innovate, manage IT like a business, ensure information assets are adequately protected, become a business leader, and drive business insights through big data – all while continuing to “keep the lights on.” • Today’s CIOs must: • Evaluate their capabilities against those that are needed to address these demands. • Prepare an action plan to address capability gaps. • Make sure that that they can create new relevancy for their organizations. • Drive Business Insights through Big Data • Manage IT like a Business Look for this diagram in the top right corner of each slide to track which pressure is being discussed. • Be a Business Leader • Ensure Information Assets are Adequately Protected
Exercise: Measure your competence for each capability to compare yourself with your organization’s needs Use Info-Tech’s Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Toolto determine and prioritize your competency gaps. In the coming slides, learn about the five pressures affecting the role of the CIO, and the 11 capabilities they demand. Then use Info-Tech’s CEIO Capability Assessment Tool to evaluate your level of competence compared with that required by your organization. Use the drop down boxes on Tab 2 to: • Indicate the importance of each capability to your organization (Column H) • The competency level required by your organization (Column I) • Your personal competency level (Column J) The tool will calculate the gap between the required competency level and your current competency level, and prioritize the gaps according to the importance of that capability to your organization. To see the competency gaps go to Tab 3: • Compare the gaps between required competency level and personal competency level for each capability. • Use the Importance Score to assist with prioritization of skills development. • Read Tool Tab 1 (Introduction) and then continue reading the set until you see the tool icon again. Info-Tech Assisted Implementation: Contact an Info-Tech Analyst to assist with or to review your Capability Assessment, and determine next steps.
Anticipate your organization’s needs The majority of CIOs believe that security is the most important future capability. While this might be important, Info-Tech believes that CIOs need to focus more energy on revenue generating capabilities, which will be difficult unless operational tasks are shifted to the Cloud. Your organization will value some capabilities more than others. Do you know what those are? • Consider the following in determining (1) the importance of each capability to your organization, and (2) the level of competence required of each capability • Impact of emerging technologies • Strategic goals of your organization • Regulatory requirements • Demand for integration • Complexity of industry and markets • Customer expectations (your organization’s customers) • Growth projections • … • If you do not think that you can readily assess the (anticipated) importance level or competence level to your organization, talk to your colleagues. Helpful Information • • Corporate strategy • Departmental plans • • Business initiatives • Customer feedback • • Employee engagement surveys • … n = 80
The business needs the CIO to facilitate new product development and identify new market opportunities CIOs can no longer be satisfied with simply “keeping the IT lights on” – they must demonstrate value creation for the business. CIOs can create value by becoming an innovator to support the business, and ensuring that technology is applied wherever possible to create competitive advantage. • Due to its insights into business processes and the needs of multiple business units, IT is well positioned to facilitate enterprise-wide innovation. • IT must lay a foundation for enterprise-wide innovation. Business units will not turn to IT if it continues to manage problems reactively or only innovate within IT. • The CIO must prove to business executives that IT should be involved in innovation projects and earn the mandate to be part of innovation by: • Working extensively with the business to roll out new products and services • Demonstrate the tangible benefits of IT innovating with the business. • Provide the tools to optimize new products or services through practices such as process automation. • Providing the business with appropriate tools and analytics • The right tools can significantly reduce time to production or market. • Analytics are especially valuable for making business decisions. Having timely, accessible, and accurate data will empower decision makers. • Improving the efficiency of business processes • Reducing time or resources necessary to execute processes. “There are no technology projects; there are only business projects with technology components.” - CIOs As Rainmakers: The New Meme, Deconstructed, Jonathan Feldman, Information Week: Global CIO, December, 2012. For more information see Info-Tech’s Institutionalize Innovation Through IT.
The CIO must be a technology visionary and business advisor and assist with revenue generation CIOs must serve as the key advisor on technologies to help the business make the right technology decisions and drive business revenue. Given the incredibly fast paced IT environment, businesses need a CIO that can demonstrate value by: • Serving as the key advisor on emerging information technologies. • Identifying technologies that will drive more value from the organization’s processes, products, and services. • Increasing top-line results through new business models and better use of data. By staying on top of emerging technologies, assessing their potential impact, and helping the organization to embrace the resulting business transformations as smoothly as possible, the CIO can create competitive advantage for the firm and ultimately drive business revenue. There is also the opportunity for IT to directly help generate revenue for other departments within the organization such as marketing, sales, and customer service. Generally, CIOs do not see themselves as part of the business. CIOs need to understand that they have to contribute to the bottom line and particulate with the CEO to help solve business problems. Rather than being simply part of the internal supply-demand process, they need to act as a supplier to the organization’s customers. - Tarry Singh, Managing Partner & CEO, O&I Services
Evaluate your capability to facilitate innovation now • To be effective at enabling innovation and helping to build new markets, the CEIO must demonstrate competence in Technology Leadership & Innovation. • Refer back to the Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Tool, open Tab 2 (CEIO Capability Framework), and read the definition and competence level descriptions for the first capability listed (Technology Leadership & Innovation – Row 6). • Use Columns H-J to evaluate: • The level of importance of this capability to your organization; • The level of competence your organization needs from the CEIO for this capability; and • The current level of competence you bring to the CEIO role. • Technology Leadership & Innovation
The CIO can demonstrate value for the organization by managing IT like a business Progressive CIOs use sourcing alternatives and new IT management solutions to create a self-funding model for investing in new capabilities. More and more companies are using alternative methods of sourcing IT delivery to find ways for their internal operations to be financially beneficial to the enterprise. At the same time, new tools and solutions continue to emerge, allowing CIOs to manage infrastructure much like a utility. By taking costs out of infrastructure and reinvesting the savings,CIOs can drive: • Cost reduction. • Business enablement. • Innovation. • Development, deployment, and operation have been core to IT. With cloud, they are no longer the core. They are support. This means that the CIO has to choose whether he/she wants to be a “sourcing” CIO or an “investment” CIO. A “sourcing” CIO focuses on spending. An “investment” CIO focuses on value creation – overseeing the value the company creates from all it invests its time and money in, such as what the company is doing with IT, and what customers are doing with IT. • - Chris Potts, Corporate Strategist
The CIO feels pressure to facilitate cloud solutions, creating an agile environment to react quickly Agility has become a critical capability in the modern organization. IT must be able to quickly deliver the services required by the business. Given the move to cloud computing, and the new operating model mentioned in Section 1, CIOs are experiencing a growing requirement to broker and manage the cloud services their organization is procuring – while at the same time defining the organizational strategy for working in a cloud-based world. As more and more products are being purchased from external providers, IT leaders must develop their skill set in vendor and portfolio management in order to adequately oversee the variety of external services. This requirement includes being responsible for managing brokered hybrid delivery and the associated quality, risk, and cost management across the enterprise. If the CIO is able to efficiently look after these vendors, the part of IT that manages such SaaS services could be spun off as a revenue-generating entity within the enterprise, thereby helping IT to create value for the organization. Info-Tech Insight IT organizations must eliminate barriers to scale and find ways to build an infrastructure that can adapt and evolve rapidly. Connect legacy systems into an infrastructure stack that can provide the required elasticity for tablet and smartphone apps, social media analytics, location-based services, and an array of other post-PC tools and features. • Senior leadership needs to stay nimble, flexible, and liquid to be able to accommodate potential consolidations within the IT team. • - Harald Ujc, Director of IT, George Weston Limited
The organization is demanding trans-enterprise integration to drive strategic insight and business value As more cloud services are procured, the CIO needs to ensure enterprise-wide integration to achieve organizational efficiencies. As organizations purchase more cloud services and external applications in general, the CIO needs to be responsible for enterprise-wide integration of those services with existing services and with each other. The requirement to collect and analyze big data is perhaps the largest driver of this need. Organizations must be able to integrate and make use of different types of data from many different applications, regions, and divisions internal and external to the firm to make better business decisions. By ensuring integration, the CIO will be able to: • Provide usable information. • Optimize processes across the organization to deliver efficiencies and facilitate innovation. • Drive business value. CIOs need to support the creation of a frame of reference against which to vet new ideas and determine the best way to implement them so that they are consistent with the reference architecture. The CEIO will facilitate enterprise integration by providing a shared point of engagement and communication.
Evaluate your capability to manage IT like a business now • In order to be effective at managing IT like a business, CEIO’s must possess several key capabilities, as identified in the box to the right. • Refer back to the Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Tool, open Tab 2 (CEIO Capability Framework) and read the definition and competence level descriptions for the second, third, fourth, and fifth capabilities listed (Rows 7-11) • Use Columns H-J to evaluate: • The level of importance of this capability to your organization; • The level of competence your organization needs from the CEIO for this capability; and • The current level of competence you bring to the CEIO role. • Business Acumen • Enterprise Architecture • Investment Management • Services Orchestration • Technology Steward
Whether by a trickle or a torrent, enterprise data security leaks can bleed a business dry CIOs are facing increasing demand to protect the organization’s greatest asset – its information. Data is the lifeblood of the modern business – and security threats are more advanced today than ever before. Protection applied directly to enterprise data to restrict access, control flow, and regulate use ensures both: • A higher level of defense. • A higher level of security for mobile data than network security can ever achieve. As CEOs and others in the organization take a greater interest in the safety of their most valuable asset, CIOs are under increasing pressure to: • Become experts in cyber-security and the nuances amongst different countries. • Take charge of disaster recovery plans from a global perspective. • Meet customer demands for more physically and logically secure environments. CIOs will likely find themselves in charge of both physical and information security, since technology generally underlies physical security systems. All this means more attention from the board – the CIO needs to be ready with a solid grasp of relevant security regulations, as well as information protection technology.
Evaluate your capability to Ensure Information Assets are Adequately Protected now • In order to ensure information assets are adequately protected, the CEIO must have strong Information Protection capabilities. • Refer back to the Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Tool, open Tab 2 (CEIO Capability Framework) and read the definition and competence level description for Information Protection (Row 12) • Use Columns H-J to evaluate: • The level of importance of this capability to your organization; • The level of competence your organization needs from the CEIO for this capability; and • The current level of competence you bring to the CEIO role. • Information Protection
CIOs are expected to walk alongside their business peers and “know the business of the business” More recently, CIOs' leadership capabilities, business acumen, and strategic perspectives have taken precedence over technical skills. It is not uncommon for CIOs to be appointed from the business side of the organization, especially if they have project management skills. If you do not want to be replaced by someone from the business, you need to: • Recognize that the technical skills you have today will likely not be relevant in two or three years. • Develop the skills that will give you staying power. CIOs must focus more of their attention on business strategy, stakeholder management, and leadership. They must: • Have an excellent understanding of the business and industry sector they work in and the organization’s business model. • Be able to translate technology concepts into digestible business principles that are meaningful to everyone in the organization. • Understand (from a strategic perspective) how IT can affect the organization’s bottom line and leverage this knowledge to help form business strategy. • Become adept at political power mapping and in using diplomacy, influencing, and negotiation skills to develop and nurture strategic stakeholder relationships.
Evaluate your capability to be a business leader now • The CEIO must be able to speak the language of the business and “know the business of the business.” Evaluate the key capabilities required to get there. • Refer back to the Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Tool, open Tab 2 (CEIO Capability Framework), and read the definition and competence level descriptions for Business Strategy, Stakeholder Management, and Leadership & Influence (Rows 13-15). • Use Columns H-J to evaluate: • The level of importance of this capability to your organization. • The level of competence your organization needs from the CEIO for this capability. • The current level of competence you bring to the CEIO role. • Business strategy • Stakeholder management • Leadership & influence
The CIO must be able to drive business intelligence using big data Being able to collect, store, and interpret big data is essential for organizations wishing to utilize real-time decision making. The capability to collect, store, analyze, and interpret mass amounts of data has become a crucial, but difficult task for most organizations wishing to use it to make real-time business decisions. CIOs must establish an environment that capitalizes on the vast array of data available to their organizations, including both familiar structured data and unstructured data that will be flooding the enterprise, such as: • Information generated by social media interactions. • Sensor data. The operational activities of the organization, its performance and profitability, and its long-term prospects will depend increasingly on the data, information, and business insights that the CIO can provide. It is up to the CIO to create an enterprise-wide business intelligence strategy to meet these expectations. • The future CIO will need to drive business and business understanding. To do so, they must have a greater understanding of how to influence business process through the adoption of advanced IT systems and infrastructure to support trends like big data. • Garry Ridler, Director, Spatial Management Services Pty Ltd
Evaluate your capability to drive business insights through big data • The CEIO must be able to collect, store, and interpret big data to help drive business insights. Evaluate your data stewardship and business capabilities to see how you stack up. • Refer back to the Chief Enterprise Integration Officer (CEIO) Capabilities Mapping Tool, open Tab 2 (CEIO Capability Framework), and read the definition and competence level description for Data Stewardship (Row 16). • Use Columns H-J to evaluate: • The level of importance of this capability to your organization. • The level of competence your organization needs from the CEIO for this capability. • The current level of competence you bring to the CEIO role. • Data Stewardship & Business Intelligence • You have now reached the end of the CEIO Capability Assessment Tool.
Interpreting your results from the CEIO Capabilities Assessment Prioritize your capability development by examining the size of your competency gap and the importance to your organization. Use this column to determine which capabilities should be addressed first. Your competency gap is determined by taking the difference between your required and your current competency level. The capabilities and level of competency required by your organization will change over time. Perform this capabilities assessment bi-annually to ensure that you are addressing all capabilities required by your organization. Your importance score is determined based on the level of importance to your organization you assigned.
Info-Tech Assisted Implementation: Making the case for the CEIO Prior to the IAI: During the IAI: IAI Value & Outcome: Complete the CEIO Capability Assessment Tool to the best of your ability. Define personal prioritization of capability development. • Info-Tech Consulting Analyst will discuss with you: • Assessing competency levels for various capabilities and determining your organization’s needs. • Determining your personal prioritization of development of capabilities. • Any issues or concerns with the Capability Assessment you might have. • Next steps for closing competency gaps (use the Stakeholder Power Map to determine key relationships that must be developed for your success). • At the conclusion of the IAI, you will have: • Validated Capability Assessment results. • Personalized prioritization of development of capabilities. • Next steps to close your competency gaps. • Scheduled next Info-Tech Assisted Implementation for Stakeholder Power Map. Implementation Point. An analysis of your current capabilities is an essential step that cannot be skipped. CIOs who fail to address competency gaps will not be taken seriously by other executives and will eventually be relegated to the Chief Support Officer. Arrange a call now by emailing AssistedImplementation@InfoTech.com
Evaluating stakeholder relationships Making the case for the CEIO Assessing the capability implications Evaluating stakeholder relationships Understanding the role of the CEIO Awakening the CEIO within yourself The importance of stakeholder management. Evaluate your stakeholder relationships and determine who you need on your side.
Keep your friends close and your frenemies closer CIOs continue to neglect relationships that have the most potential to threaten their relevance or build their reputation. The CIO and the CFO have typically been close because the origins of IT were in Finance, and in many organizations, IT remains there. CIOs have increasingly realized the importance of the CEO to their career – and as CEO’s expectations of the CIO increase, this relationship is key for the CIO. An Info-Tech survey found that most CIOs believe that the most important relationships over the next three to five years are with the Finance and Operations executives. But in a world where technologies are challenging the traditional domain of the CIO, the executive relationships that CIOs truly need are the ones that most often threaten their very existence, for example, the CMO. Relationships with those areas that generate revenue – marketing, sales, business development, and customer service – will be critical to the CIO’s success. Indeed, partnering with the CMO in light of the role’s growing technology focus is a natural fit. But if IT is already behind marketing in technology innovation, you will have to prove your worth with other functions first to demonstrate that you have the capability for innovation. CIOs remain focused on traditional relationships at the expense of those that are more strategic. (1 – most important, 6 – least important) CIOs should be focusing more on marketing and sales relationships. Source: Info-Tech Survey; N=64 Areas like marketing and risk management require a much stronger relationship. Marketing has now evolved far beyond a commercial, or a campaign, or a slogan, or an icon. It is now is about understanding behavior in real time, and not only predicting the turn that the consumer makes, but in fact, making the turn. - Frank Neugebauer, CIO, United Educators
Identify stakeholders that will stand to lose or win as a result of your success or failure Knowing and understanding your stakeholders is the essential first step in managing them. A stakeholder is anyone that could or should have an interest in what you are trying to achieve – that stands to lose or win as a result of your success or failure. They are worthy of serious consideration because they will have the power either to benefit or block your progress. Stakeholders are both external or internal to the organization: • External, e.g. vendors, colleagues, coaches and mentors, the regulatory community, analysts, and customers. • Internal includes your boss, peers, and staff. Stakeholders will vary enormously by the purpose of the initiative for which they are being evaluated. But if you do not recognize the differences, you can spend needless energy: • Focusing on managing those that are less critical. • Ignoring crucial influences that could either hinder or assist your success. Make the time to evaluate stakeholders as a basis for preparing a strategy to manage them to your advantage. • If you do not really understand what people are suffering with and what kinds of challenges they’re facing on the business side, you will have a really hard time showing value because it is too easy for the business to go elsewhere. IT has to show them that they have value and that they care about them more than any vendor ever could. • - Frank Neugebauer, CIO, United Educators