CIO Barometer 2011

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CIO Barometer 2011 CSC A TIME OF OPPORTUNITIES?
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A TIME OF OPPORTUNITIES?The CIO Barometer is a survey carried out for the 3rd year by CSC, in cooperation with the leading research institute TNS Sofres . It is based on a quantitative analysis of the trends and outlook for IT directors from a sample of major U.S. andEuropean organizations.

Transcript of CIO Barometer 2011

Page 1: CIO Barometer 2011

CIO Barometer 2011

CSC

A TIME OF OPPORTUNITIES?

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Opinions expressed by contributors are their own. Reproduction in whole or in

part without written permission is strictly prohibited.

© Copyright CSC 2011. All rights reserved.

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CSC IN TOUCH WITH CURRENT TRENDS

Within the framework of its I.D.E.A.S program (Inspiration, Debate, Executive, Annual Surveys). CSC carries out a number of “barometers” every year to analyze trends and perspectives from key roles within the boardroom (human resources, finance, IT, procurement…) at the European or global level. Each of these studies, carried out with the assistance of independent survey institutions (IFOP and TNS Sofres), involve the participation of hundreds of managers from large businesses and public administrations. The results of these studies are revealed during high level events, organized in different cities (Paris, Madrid, Barcelona, Milan, Brussels, Lisbon, Washington D.C. , etc.), and are also relayed by partners from the media and from academia (universities and elite business schools).

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CIO Barometer 2011A TIME OF OPPORTUNITIES?

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35. CreAtIng vAlue 36. LEOCADIO ALONSO. Director of IT , Organization and Quality - thyssenKrupp Materials Ibérica, S.A. 38. AhMED BENNOuR. Services and Information Systems Director - ArevA 40. LuTz BRuNkE. IT Manager - Comdirect Bank Ag 42. PhILIPPE COuRQuEux. IT and Logistics Director - Cora 44. GIANLuCA FuSCO. CIO - edipower 46. ThOMAS hENkEL. CIO - Amer Sports 48. SyLvAIN MOMIN. head of Country Technology Organization - ABn Amro Bank (luxembourg)

51. ACtIng lIKe A StrAtegISt 52. ThIBAuT BRITz. CTO - trendiction 54. MIkkI CLANCy. CIO - Premier Health Partners 56. JéRôME FILIPPINI. Director, Inter-ministerial Department of State Information and Communication Systems France - DISIC 58. ERNST hEGER. CIO - ÖBB Infrastruktur Ag 60. vANESSA LAPINS. Senior vice President of Global Information, Technology - Dorel recreational/leisure 62. DANIEL LEBEAu. vice President, Management & Information Systems - gSK Biologicals 64. FRéDéRIC RIBAu. CIO EMEA - Yahoo

67. InnOvAtIOn 68. NABIL BATLOuNI. CIO Europe - nYSe euronext 70. ROBERTO FONSO. Information Technology and Operations Director - Banca Popolare di Milano 72. SAuRO NICLI. CIO - AXA 74. ALExANDRE RAMOS. CIO - lusitania 76. PASCAL ROChE. Director, Multichannel and Client Internet IT- Fnac 78. BRyAN WOLF. CIO - Children's Hospital of Philadelphia

81. SuPPOrtIng tHe lIne OF BuSIneSS 82. ALBERT ALMAJANO. CIO - Kern Pharma 84. FILIPPO CENSI. CIO - Cris Conf (Pinko) 86. FRANk DE SAER. CIO - FPS economy 88. SABINE LEhNER. CIO - Wiener Stadtwerke 90. FRANçOIS MESSAGER. IT and Organization Director - Celio* 92. ANNE ROMAGNOLI. Chief IT and Facilities Officer - Delta lloyd life 94. PEER STAuSkE. Information Systems & Organization - MAn truck & Bus 96. RIChARD vALENTI. Deputy Managing Director and CIO - generali France

TABLE OF CONTENTS

SUMMARy

11 PAGE 9

13 PAGE 33TESTIMONIAlS

100. trenDS AnD OutlOOK WItHIn It OrgAnIzAtIOnS - CIO BArOMeter 2011106. A tIMe OF OPPOrtunItIeS. CLAuDE CzEChOWSkI. President , South & West Europe. President Global Consulting / Technology / ERP practices - CSC108. tHe neXt generAtIOn OF DIgItAl gAMe-CHAngerS. DAvID MOSChELLA. Research Director - leading edge Forum

14 PAGE 99INSIgHTS

PAGE 15RESUlTS

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CIO Barometer 2011A TIME OF OPPORTUNITIES?

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THE CIO BAROMETER IS A SURvEy CARRIED OUT FOR THE 3RD yEAR By CSC, IN COOPERATION WITH THE lEADINg RESEARCH INSTITUTE TNS SOFRES. IT IS BASED ON A qUANTITATIvE ANAlySIS OF THE TRENDS AND OUTlOOk FOR IT DIRECTORS FROM A SAMPlE OF MAjOR U.S. AND EUROPEAN ORgANIzATIONS.

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PrOCeDure AnD MetHODOlOgY

The 3rd edition of the CIO Barometer was produced in cooperation with the TNS Sofres market research institute, based on a survey sample of CIOs/ IT Directors of large u.S. and European companies and government agencies. These executives were interviewed on the position, concerns, performance, and perspectives of IT organizations.

IntervIeW MetHOD

The questionnaire was administered by the TNS Sofres market research institute, in accordance with the CATI method (Computer Assisted Telephone Interview), between March and April 2011.

tArget AnD SAMPlIng

Private and semi-public companies and government agencies:• With a minimum of 1,000 employees,• Located in France, Germany, Great Britain, Italy, Spain,

Belgium, Portugal, and united States

160 CIOs/IT directors were interviewed. Organizations were selected to ensure a representative selection from key industry sectors. The sample was ultimately adjusted to guarantee representation.

CIO BAROMETERAN INTERNATIONAL STUDYA TIME OF OPPORTUNITIES ?

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1CIO BAROMETER 2011

SUMMARy

A TIME OFOPPORTUNITIES?

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INNOvATION

WHEN CIOS ACCElERATE THE TREND

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IN SEARch Of AgILITY whILE EmERgINg fROm A chALLENgINg EcONOmIc pERIOD, bUSINESSES ARE INcREASINgLY USINg NEw TEchNOLOgIES AS DRIvERS fOR mAkINg ORgANIzATIONS mORE AgILE AND INTELLIgENT. wITh ThE cURRENT bUSINESS ENvIRONmENT cONSTANTLY chANgINg, LEADINg cIOs ARE EmbRAcINg TOOLS ThAT mAkE IT pOSSIbLE TO RESpOND NOT ONLY TO ORgANIzATIONAL NEEDS, bUT ALSO TO OpERATIONAL bUSINESS REqUIREmENTS. IN SO DOINg ThEY cAN bOOST ThE cONTRIbUTION ThEY mAkE TO fORmULATINg STRATEgY AND INcREASINg OpERATIONAL ExcELLENcE IN ThE LINE Of bUSINESS, AND ThUS vALUE cREATION.

faced with increasing competitive pressures, accelerating decision cycles and a new generation of tech savvy users, companies are looking to their cIOs as advisors and agents for business responsiveness, agility and collaboration. cSc’s 2011 cIO barometer polled 160 cIOs from every business sector to shed light on the trends and outlook for the IT function.

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The CIO can help the business shift from a more efficient organization (thanks to cost reduction and process optimization) to a more intelligent organization, better able to anticipate risk and rapidly adapt to a changing financial, economic, political and technological environment. This can be accomplished by accelerating the adoption of new collaborative tools and new opportunities offered by cloud computing. For 78% of those surveyed in the CIO Barometer (compared to 59% in 2010), expectations on CIOs are now above all related to “their leadership in terms of innovation and value creation by way of new technologies”.

For 72% of the CIOs polled in the Barometer, the increasing involvement of the CIO in corporate strategy is the most striking development in recent years. “Our greatest challenge was to reinforce our alignment with the strategy of the business in order to avoid dissipating our efforts,” explains Frédéric Ribau, CIO EMEA at yahoo. “In the last two years, the IT department has drawn much closer to the decision makers in every department, in order to think together about

Increased speed and agility is a must for all projects, and thus concerns all departments of the organization. According to the Barometer, the level of involvement of CIOs in change and evolution in the line of business is even slightly on the rise (67% in 2011 compared to 64% in 2010). In line with customer expectations in terms of responsiveness, organizations and government agencies are implementing new ways of working to improve collaboration and performance, and to boost the creativity of employees, regardless of where they work in

Today the contribution of the CIO to value creation is greater. “Currently you need to have a sound understanding of the business strategy to be able to propose technological solutions that will help create value,” explains Ahmed Bennour, Services and Information Systems Director at AREvA. CIOs need to take responsibility for opening the business up to new technologies that can be integrated into the line of business. With little effort,

Some businesses have understood this and are starting to transform their networks into participative ecosystems. however, according to analysts, by 2015, 80% of them still will not have implemented a coherent approach to exploiting information circulating in the social media. And this inertia might well deprive the business of certain opportunities. “These largely technological shifts present a challenge; they raise questions of security, governance and ownership,” states Claude Czechowski, President, CSC South & West Europe and Global Business Solutions practices world-wide. “But they are enablers of excellence, innovation and agility. As such they are a real opportunity for both CIOs and the business.”

things far upstream in the processes. The goal is to develop projects aligned with the business and perfectly synchronized with operational needs.”This contribution of the IT department has been reinforced by a shift in business objectives, currently less focused on cost reduction or process optimization than on collaboration, interaction and sharing. Indeed, businesses are hoping to draw on collective know-how to drive innovation and value creation.

the organization. The focus here is on social media, Web 2.0 tools, smartphones, mobile internet connections and new cloud computing applications – tools whose implementation depends on the choices made by CIOs responsible for adapting the organization and technology infrastructures while focusing on business priorities. “We need to work hand in hand with the line of business, speaking the same language, and getting involved with them in genuine reengineering projects,” asserts Richard valenti, Deputy CEO and CIO of Generali France.

these tools make it possible to increase the commitment of staff and all parties involved in the processes of design, production and distribution of products and services – even if they are separated in space and time. In addition, social collaboration facilitates the identification of experts, knowledge sharing, preservation of know-how, rapid incident resolution and interactions with customers – it is an unlimited source of value.

MORE INNOvATION

gREATER AlIgNMENT WITH CORPORATE STRATEgy

gREATER INvOlvEMENT IN THE EvOlUTION AND FUNCTIONINg OF THE BUSINESS

MORE vAlUE CREATION

ClAuDe CzeCHOWSKIPRESIdENT, SOUTh & WEST EUROPE ANd GLOBAL BUSINESS SOLUTIONS PRACTICES WORLd-WIdEcSc

“tHeSe lArgelY teCHnOlOgICAl SHIFtS PreSent A CHAllenge; tHeY rAISe queStIOnS OF SeCurItY, gOvernAnCe AnD OWnerSHIP.”

rICHArD vAlentIdEPUTy CEO ANd CIOgENERALI fRANcE

“We neeD tO WOrK HAnD In HAnD WItH tHe lIne OF BuSIneSS, SPeAKIng tHe SAMe lAnguAge, AnD gettIng InvOlveD WItH tHeM In genuIne reengIneerIng PrOjeCtS.”

AHMeD BennOurSERvICES ANd INFORMATION SySTEMS dIRECTOR AREvA

“CurrentlY YOu neeD tO HAve A SOunD unDerStAnDIng OF tHe BuSIneSS StrAtegY tO Be ABle tO PrOPOSe teCHnOlOgICAl SOlutIOnS tHAt WIll HelP CreAte vAlue.”

FréDérIC rIBAuCIO EMEAYAhOO

“Our greAteSt CHAllenge WAS tO reInFOrCe Our AlIgnMent WItH tHe StrAtegY OF tHe BuSIneSS In OrDer tO AvOID DISSIPAtIng Our eFFOrtS.”

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MORE vAlUE CREATION

BuDget COnStrAIntS: A BrAKe On InnOvAtIOn

61% of those surveyed (compared to 47% in 2010) think that budget constraints are the main brake on innovation. This is far greater than mastering technological innovation and the results thereof (31%), and also much greater than the time and resources spent on handling incidents and urgent problems (46%).

tHe Hr CHAllenge

72% of CIOs consider identifying and developing key competencies to be a major challenge. The increase in competencies in terms of new technologies is one of the leading factors of this challenge (65%). More generally, competence and career management are of primary concern to 60% of CIOs polled.

IMPrOvIng OPerAtIOnAl PerFOrMAnCe

71% of CIOs mentioned increasing internal competency levels as a priority objective for boosting operational performance. Cost reduction, mass production, internationalization – in order to improve their operational excellence, the companies and government agencies surveyed are optimizing their procurement functions, with 54% further developing their procurement processes.

HIgHlIgHTS

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RESUlTS

2CIO BAROMETER 2011

A TIME OFOPPORTUNITIES?

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STRUCTURE OF THE SAMPlE

PerMAnent eMPlOYeeS

The sample is composed of major corporations and government agencies. half of the organizations surveyed have over 3,000 permanent employees.

In the united States the sample contains more large corporations than in Europe. 59% of the American organizations surveyed employ over 3,000 people, compared to 46% in Europe. On the other hand, 2% of American organizations surveyed have fewer than 1,000 employees, whereas the European sample is made up exclusively of organizations with over 1,000 employees.

BreAKDOWn OF IntervIeWS BY COuntrY

The global version of the CIO Barometer compares the outlook and trends for CIOs in Europe and the united States. The survey was thus carried out among American and European corporations and government agencies. The united States represents a large share of the sample, given that American companies make up 43% of the total. The other companies are located in European countries, including France, Italy, Germany, Spain and the uk.

USA43%Germany

9%

Spain

9%

UK

9%

Italy12%

France12%

Portugal

3%Belgium3%

500 to 999 employees1%

3,000 to 5,999 employees21%

6,000 to 9,999 employees9%

1,000 to 2,999 employees52%

10,000 or more employees17%

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BreAKDOWn gOvernMent / nOn-gOvernMent (unIteD StAteS)

Almost 40% of the American organizations surveyed are from the public sector.

BreAKDOWn OF IntervIeWS BY BuSIneSS SeCtOr

The public sector accounts for approximately 30% of the total. The healthcare and prevention sector represents 1/5th of the total sample, and the manufacturing sector accounts for 16%.

Public sector organizations represent a much greater share in the united States than in Europe (40% as opposed to 20%). In Europe on the contrary, the best represented sectors are manufacturing, retail, healthcare and prevention, and utilities.

CIO BAROMETER 2011

Non financial services(including retail, utilities etc.)20%

Financial services4%

Manufacturing16%

Public sector

29%

Healthcare and prevention

19%

No response

12%

Government37%

Non-Government

63%

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DESCRIPTION OF THE IT DEPARTMENT

nuMBer OF StAFF In tHe It FunCtIOn

Nearly half of the companies surveyed employ more than 50 staff in the IT function.

It DePArtMent rePOrtIng

In most cases (64%) the IT department reports to general management, in Europe and the uSA alike. In Europe the proportion of companies in which the IT department reports to the finance department is slightly higher.

0 to 19 staff37%

No response1%

50 to 99 staff

12%20 to 49 staff

15%

100 to 500 staff

25%

More than 500 staff

10%

Reporting to general management 64%

Reporting to the line of business8%

Reporting to another department12%

Reporting to the finance department16%

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PArtICIPAtIOn In COrPOrAte DeCISIOn MAKIng BODIeS

66% of the CIOs surveyed claim that they are involved in corporate decision making bodies. In the uSA, CIOs are more involved in decision making bodies than in Europe, in particular when it comes to the organization's IT investments and strategic decisions.

tYPe OF DeCISIOn MADe BY uS CIOs

CIO BAROMETER 2011

0 20 40 60 80 100

NSP

Financial budgets for all the divisions of the company

Strategic decisions for the company

Major investments in IT and programs 88%

71%

31%

2%No response

Yes

66%

No

34%

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reCent nOteWOrtHY CHAngeS In tHe rOle OF tHe CIO

The results of the survey show that the three major evolutions in the role of the CIO, in the uSA and in Europe alike, relate to: involvement in the change process or in business evolutions (69%), involvement in the organization's strategy (68%) and accelerating innovation (63%). In Europe, involvement in strategy comes first (72% compared with 63% in the uSA), while cloud computing initiatives are more important in the uSA (38% compared with 26% in Europe).

evOlutIOn OF tHe CIO's COntrIButIOn WItHIn tHe OrgAnIzAtIOn

The major evolution of the CIO’s contribution within the organization concerns new technologies. CIOs have understood that new technologies are innovation drivers and must be integrated into the business. 83% of the CIOs surveyed claim that they have an increasing influence on innovation leadership and value creation through new technologies. These results are similar in Europe and the uSA.

DESCRIPTION OF THE IT DEPARTMENT

0 10 20 30 40 50 60 70 80

No response

Shift from a cost center to a value creation center

Outsourcing

Cloud computing initiatives

Reduction in IT budget and staff

Accelerating innovation

Involvement in the company's strategy

Involvement in change or business evolution 69%

68%

63%

44%

31%

26%

25%

3 %

0 20 40 60 80 100

No response

Stimulation and leveraging the application asset base

Driver of operational excellence

Contribution to the definition of the company's strategy

Management of business processes

Innovation leadership and value creation thanks to new technologies 83%

74%

72%

71%

58%

2%

* US only

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POSItIOnIng AnD nAture OF tHe lInKS BetWeen It AnD generAl MAnAgeMent

In the majority of the companies surveyed (59%), the IT department’s relationship with general management is one of partnership. The notable difference between Europe and the uSA is that, in Europe, there are more organizations in which the IT department is considered a cost center than those in which the customer / supplier relationship is formalized. In the uSA, the IT regarded as a cost center to a much lesser extent.

CIO BAROMETER 2011

Partnership59%

Customer/supplier relationship

24%

IT is considered a cost center

17%

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SIgnIFICAnt CHAllengeS FOr tHe YeArS AHeAD

In the uSA and Europe alike, IT security is the no. 1 challenge for CIOs for the years ahead (80% of them consider it significant). The importance of other challenges is a little more heterogeneous. For example, rationalizing the cost of services and identifying and developing key skills are more important challenges for European CIOs (75% in Europe vs. 53% in the uSA respectively, and 72% vs. 55%). Improving delivery times and controlling the outsourcing of services are also viewed as far more important in Europe (there are 4 times more CIOs who deem these challenges significant in Europe than in the uSA). Conversely, uS CIOs tend to emphasize the optimization of the IT department's financial and operational steering (77% in the uSA vs. 58% in Europe) and innovation leadership by means of new technologies (66% vs. 57%).

MAturItY In terMS OF SOFtWAre MAnAgeMent

The vast majority of the companies surveyed claim their software management maturity is moderate to good. On average, it seems that the maturity of uS companies is greater than that of European organizations.

IT CHAllENgES AND PRIORITIES

Top 2 (5+4)

5 - Very important

4 - Important

3 - Moderately important

2 - Not very important

1 - Not at all importantControl the outsourcing of services

Web 2.0

Become greener

Cloud Computing

Improve delivery times

Implement business and/or ERP solutions

Extend mobile applications

Employee retention

Innovation leadership by means of new technologies

Optimize IT processes and promote the use of best practices

Identify and develop key skills

Rationalize the cost ot services

Optimize the IT department's financial and operational steering

Improve the management of relationships with customers and users

IT security

80%

66%

67%

66%

65%

64%

61%

60%

56%

54%

41%

29%

36%

26%

21%

Moderately mature: partial implementation focusing on the rationalization of applications and software42%

Not mature: no processes in place11%

Standardization of applications and

software development

44%

No response

3%

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MAIn OBStACleS enCOuntereD BY It In terMS OF InnOvAtIOn leADerSHIP

Budgetary constraints (73%), as well as focusing on the processing of requests and the delivery of coherent solutions (63%), are the two major obstacles encountered by the IT department in terms of innovation leadership. In the uSA, budgetary constraints are well ahead of all other obstacles, above all in the public sector.

Another significant obstacle is the fact that CIOs have to dedicate too much time and too many resources to the treatment of incidents and emergencies (55%).

Lack of innovative technology skills is a far greater obstacle in the uSA than in Europe, notably in the public sector.

CIO BAROMETER 2011

0 10 20 30 40 50 60 70 80

No response

Others

The company does not perceive IT as a driver of innovation

IT innovation perceived as difficult to controland yielding uncertain results

Lack of skills in terms of integrating innovative technologies

Too much time and too many resources dedicated tothe handling of incidents and urgent problems

Focus on the processing of requests andthe delivery of coherent solutions

Budgetary constraints 73%

63%

55%

35%

33%

23%

3%

2%

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PrIOrItY OBjeCtIveS FOr IMPrOvIng OPerAtIOnAl PerFOrMAnCe

The human aspect is very important for CIOs: increasing the internal skill level is the primary objective for improving operational performance, on a par with the managing of requests and the project portfolio (65%). The definition and governance of the IT efficiency plan also features among the priorities (58%). On the other hand, outsourcing comes last with 20% of the CIOs considering it important. While in Europe the primary objective is increasing the level of internal skills, the priority objective in the uSA tends to be the managing of requests and the project portfolio.

COntrIButIOn OF tHe PrOCureMent DePArtMent tO OPerAtIOnAl eXCellenCe

In Europe and the uSA, the organizations surveyed optimize their procurement function, by developing procurement procedures for example (62%), in order to improve their operational performance. The procurement department is also getting more deeply involved in projects (52%) and the sourcing of intellectual services (44%).

IT AND OPERATIONAl ExCEllENCE

Top 2 (5+4)

5 - Absolute priority

4 - Priority

3 - Moderate priority

2 - Not really a priority

1 - Not at all a priority

Outsourcing of functions, applications and infrastructure

Optimization of the sourcing strategy

Industrialization of development and production processes

Management and ownership of the application asset base by the line of business

Development of partnerships with key suppliers

Implementation of business and/or ERP solutions

Implementation of knowledge and information management solutions

Definition and governance of the IT efficiency plan

Management of the portfolio of requests and projects

Increase in internal skills level

65%

65%

58%

55%

55%

50%

37%

37%

31%

20%

No response

Outsourcing of the procurementfunction to specialist service providers

Rationalization of supplier portfolio and data

Introduction of e-procurement tools

Involvement of the procurement departmentin sourcing intellectual services

Involvement of the procurement department in projects

Development of procurement procedures 62%

52%

44%

40%

18%

14%

34%

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IT AND HR CHAllENgES

Hr CHAllengeS FACeD BY It

Due to the increasingly widespread adoption of new technologies within businesses, CIOs need to upgrade the skills of their teams in terms of new technologies. This is the major hR challenge faced by the IT department (66%). Managing skills and careers is also a significant challenge for 63% of the CIOs interviewed. A significant challenge in the uSA is the lack of vocational training and career plans. The emergence of new activity areas within the IT department is also a much more significant challenge than in Europe. The lack of attractiveness of the IT function, the aging of the population and staff turnover are also greater in the uSA. In most cases, hR challenges in the uSA are more significant in the public sector than the private sector.

ACtIOnS unDertAKen tO IMPrOve tHe lInK BetWeen It AnD tHe lIne OF BuSIneSS

Improving communication between the IT department and the line of business is a priority action (86% of the CIOs surveyed) for improving the link between IT and the business, in Europe as well as the uSA. Improving the visibility of the services provided, their efficiency and associated costs (69%), as well as the shared management and evaluation of applications and software within the business (68%) are also priority actions. The creation of joint IT and business teams is a more common occurrence in the uSA, while Europe resorts more often to the development of a dual business/technical competence among IT staff.

CIO BAROMETER 2011

64 %

62 %

60 %

57 %

54 %

44 %

42 %

36 %

No response

Internationalization of the required profiles

Staff turnover

Management of staff with different cultural backgrounds

Aging of the population

Lack of attractiveness of the IT function within the company

Scarcity of traditional skills

Diversity of the required profiles

Emergence of new activity areas within IT department

Lack of vocational training and career plans

Skills and career management

Increase skills in terms of new technologies 66%

63%

53%

50%

47%

44%

38%

36%

29%

26%

25%

4 %

64 %

62 %

60 %

57 %

54 %

44 %

42 %

36 %

No response

Developing contractual relationshipswith the line of business

Creation of positions and processesto interface with the line of business

Development of dual competencies(business and technical) for IT staff

Creation of joint IT and business teams

Involvement of IT in business decision cycles (prioritization,composition of portfolios, decision of versions)

Shared management and evaluation of the applicationasset base within business

Improving the visibility of the services provided,their performance and associated costs

Improving communication between IT and the line business 86%

69%

68%

65%

64%

62%

62%

30%

2%

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It BuDget

35% of the organizations surveyed foresee an IT budget of more than $15 million. This proportion is 25% in Europe compared to 48% in the uSA.

InveStMent trenDS FOr 2011

The breakdown of increasing, decreasing and stable investment trends for 2011 is relatively homogeneous. In the uSA, the investment trend is mostly stable. In addition, there is far more decreasing investment in the public sector than in the private sector in the uSA

IT AND THE BUDgET

No response4%

Less than $15M61%

$15M to $75M22%

$75M to $150M9%

$150M to $450M2%

$450M to $750M2%

Increasing33%

Decreasing29%

No response

1%

Stable37%

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eXPeCtAtIOnS COnCernIng tHe evOlutIOn OF BuDgetArY PrOCeSSeS

Flexibility is a priority expectation as regards the evolution of budgetary processes: CIOs must be capable of taking into account or mediating changes during the year (83%). Furthermore, the expansion and taking into account of all IT costs (75%), as well as the alignment of mediation processes with the strategic and/or business objectives (72%), are important expectations. The expansion and taking into account of all IT costs is a much more important expectation for uS CIOs.

MOSt COStlY OverAll BuDget IteMS In tHe PASt YeAr

Networks and telecommunication are ahead of all other items in terms of budget allocated (63%). however, it is mostly in Europe that they are perceived as the most costly item. This can be explained by the business' desire to implement new collaborative working tools based on social media and Web 2.0. Similarly, expenses concerning licenses, projects and ongoing maintenance are significant. In addition, deployment and support costs are a more significant part of uS budgets.

CIO BAROMETER 2011

64 %

62 %

60 %

57 %

54 %

44 %

42 %

36 %

No response

Establishment of an ABC costing system

Mediation processes for project portfoliiosand application maintenance

Optimization of the annual budgeting process

Alignment of mediation processes with strategicand/or business objectives

Expansion and taking into account of all IT costs

Ability to take into account or mediatechanges during the year

83%

75%

72%

68%

58%

30%

4%

No response

IT production costs

Outsourced services

Maintenance (corrective and regulatory)

Deployment and support costs

Maintenance (development and upgrades)

Projects

Licenses

Employee remuneration

Networks and telecom 63%

62%

58%

457%

57%

47%

40%

29%

28%

2%

*US only

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PrIOrItIeS FOr OPtIMIzIng It COStS In tHe YeAr tO COMe

Improving productivity and efficiency (76%) is a priority for the optimization of IT costs in the year to come. Reducing the maintenance cost of applications and rationalizing applications and software (66%) also feature among the priorities, in Europe as well as the uSA. Industrializing IT production and development engineering are not among the priorities but are considered slightly more important in Europe. The implementation of ABC cost management and outsourcing are of minimal priority in the optimization of IT costs.

evOlutIOn OF tHe PrOjeCt-relAteD BuDget In relAtIOn tO tHe MAIntenAnCe AnD OPerAtIOn BuDget

For most of the companies surveyed (56%), the ratio of the budget related to projects compared to that for maintenance and operations has remained stable. 27% of the companies surveyed claim it has increased. These proportions are similar in Europe and the uSA. however, a significant difference can observed between the results of the uS public and private sector. 37% of the organizations in the uS private sector claim that this ratio has increased, compared to 14% in the public sector.

IT AND THE BUDgET

Top 2 (5+4)

5 - Absolute priority

4 - Priority

3 - Moderate priority

2 - Not really a priorty

1 - Not at all a priority

Increasing the use of outsourcing

Implementing an ABC management model

Industrializing development engineering

Industrializing IT production and rationalization of infrastructure

Managing the portfolio of requests and projects

Reducing lead times

Reducing the maintenane cost of applicationsand rationalizing the application asset base

Improving productivity and efficiency

66%

76%

56%

56%

48%

31%

19%

17%

Increasing27%

Decreasing

15%

No response2%

Stable56%

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OUTSOURCINg, gOvERNANCE AND SUSTAINABlE DEvElOPMENT

IMPACt OF OutSOurCIng On It

In the uSA as well as Europe, outsourcing has a positive impact on innovation development. however, according to uS CIOs, outsourcing is essentially used to reduce costs: 43% of the uS organizations surveyed believe that the impact of outsourcing on cost reduction is positive, compared with only 33% in Europe.

Current Or eXPeCteD PerCentAge OF OutSOurCeD It ACtIvItIeS

More than two thirds of the CIOs surveyed outsource less than 25% of their IT activities. Only 12% of them outsource more than half of their IT activities. Comparing uS and European results reveals that, in the uSA, the proportion of organizations outsourcing more than 50% of their IT activities is a little lower than in Europe.

CIO BAROMETER 2011

Project efficiency

Cost reduction

Improved quality of services

Innovation development

Positive impact

No impact

Negative impact

No response

44%

38%

33%

37%

More than 50%12%

Less than 25%

70%

Between 25 and 50%

18%

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vISIBIlItY OF OutSOurCeD ACtIvItIeS COMPAreD WItH InternAl ACtIvItIeS

The majority of the CIOs surveyed consider the visibility of outsourced activities compared to internal activities equivalent or worse (84%). visibility seems better for European CIOs, as 64% of them claim that the visibility of outsourced activities compared to internal activities is equivalent or better, versus only 45% in the uSA.

PrIOrItY OF It gOvernAnCe OBjeCtIveS FOr BuSIneSSeS

IT alignment with corporate strategy is a priority objective for businesses in terms of IT governance for 85% of the businesses surveyed. The quality of the services provided to users at a controlled cost (76%), as well as the alignment of the IT businesses with best practices and continuous improvement (71%), are also a priority. The results are similar in Europe and the uSA. however, flexibility vis-à-vis business requirements is more important in the uSA.

OUTSOURCINg, gOvERNANCE AND SUSTAINABlE DEvElOPMENT

Equal40%

Worse44%

Better16%

Top 2 (5+4)

5 - Absolute priority

4 - Priority

3 - Moderate priority

2 - Not really a priority

1 - Not at all a priority

Cost measurement and internal and external comparison

Management of the application asset base

Innovation to increase value creation in the line of business

Management of the project portfolio

Risk management

Flexibility vis-à-vis business requirements

Alignment of the IT organization with best practices and continuous improvement

Quality of service provided to users at a controlled cost

IT department aligned with the company's strategy

76%

85%

71%

69%

62%

58%

58%

57%

48%

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ACtIOnS PlAnneD tO lIMIt tHe IMPACt OF It On tHe envIrOnMent

CIOs are making efforts to limit the impact of their activities on environment. Reduction in printing (90%), reduction in energy consumption (81%) and the recycling of PCs and IT hardware (77%) are the three major actions undertaken both in Europe and the uSA.

CIO BAROMETER 2011

64 %

62 %

60 %

No response

Others

implementation of green buildings

Project evaluation in relation to sustainable development

Carbon footprint assessment and related actions

Selection of environmentally friendly suppliers

Development of virtuous best practices in terms of governance andoperational steering by continuous integration of environmental criteria

Recycling PCs and IT hardware

Reduction in energy consumption

Reduction in printing 90%

81%

77%

52%

52%

44%

1%

2%

44%

37%

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TESTIMONIAlS

3CIO BAROMETER 2011

A TIME OFOPPORTUNITIES?

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CREATINg vAlUEIT, a cost center? Not a single CIO agrees. Taking their responsibilities in terms of implementing projects that deliver all the agility and intelligence needed by the business, CIOs today place their function at the heart of value creation.

"SUCCESS lIES IN MAINTAININg THE PERFECT BAlANCE BETWEEN INvESTMENT AND lEvEl OF SERvICE."

leOCADIO AlOnSODirector of IT , Organization and QualitythyssenKrupp Materials Ibérica, S.A.

"NEW ARCHITECTURE REDUCES DEvElOPMENT COSTS By 30%."

lutz BrunKeIT ManagerComdirect Bank Ag

"OUR PRIMARy FOCUS IS ON PROjECTS THAT gENERATE gROWTH AND REvENUES."

PHIlIPPe COurqueuXIT and Logistics DirectorCora

"THE IT DEPARTMENT CAN gENERATE REvENUE AND PROvIDE A COMPETITIvE ADvANTAgE IN DISCUSSIONS WITH ClIENTS."

SYlvAIn MOMInhead of Country Technology OrganizationABn Amro Bank (luxembourg)

"gREATER vISIBIlITy ON PROjECTS AND COSTS."

AHMeD BennOurServices and Information Systems DirectorArevA

"IT CONCENTRATES ON OPERATIONAl EFFICIENCy AND BUSINESS PERFORMANCE MANAgEMENT."

tHOMAS HenKelCIOAmer Sports

"THE IT DEPARTMENT SHOUlD NOT ONly BE INvOlvED IN THE MANAgEMENT AND DISTRIBUTION OF COMMODITy SERvICES, BUT AlSO IN THE COMPANy'S CORE BUSINESS ACTIvITIES."

gIAnluCA FuSCOCIOedipower

teStIMOnIAlS

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"SUCCESS lIES IN MAINTAININg THE PERFECT BAlANCE BETWEEN INvESTMENT AND lEvEl OF SERvICE."

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teStIMOnIAlS

lEOCADIO AlONSO DIRECTOR OF IT, ORGANIzATION AND QuALITy tHYSSenKruPP MAterIAlS IBérICA S.A.

ThySSENKRUPP MATERIALS IBéRICA S.A. WAS RE-FOUNdEd IN 1995 AS A RESULT OF TWO SUBSIdIARIES OF ThE ThySSEN GROUP IN SPAIN BEING MERGEd. ThEy WERE dEdICATEd TO ThE dISTRIBUTION OF SPECIALTy STEEL, ANd IRON ANd STEEL PROdUCTS RESPECTIvELy. WITh ThE MERGER OF ThySSEN IBéRICA S.A. WITh ThySSEN ACEROS ESPECIALES S.A., A NEW BUSINESS UNIT WAS CREATEd. ThE COMPANy IS PART OF ThySSENKRUPP MATERIALS INTERNATIONAL, ONE OF ThE OPERATIONAL dIvISIONS OF ThE GERMAN MULTINATIONAL, ThySSENKRUPP AG. ThySSENKRUPP MATERIALS IBéRICA S.A. PROvIdES MATERIALS ANd SERvICES TO A WIdE RANGE OF COMMERCIAL ANd INdUSTRIAL SECTORS.

In YOur COMPAnY, HOW DOeS tHe It DePArtMent SuPPOrt BuSIneSS grOWtH?

Our mission is to provide support to business processes, optimizing them and offering our internal clients - the users in our company - the best tools to make their work easier and more profitable, focusing on the priorities of the sales force. At the end of the 1990s, we only had an in-house software program that was developed on an S/36 and a management software program running over the LAN. Today, our core business is supported by an ERP system, the sales force is mobile and most processes have been reengineered, all of which has translated into a more than 400% increase in our volume of business.

SInCe tHe StArt OF tHe CrISIS, BuSIneSS CYCleS HAve Been SHOrteneD (r&D, PrODuCtIOn, MArKetIng, SAleS, etC.) WHAt IS YOur DePArtMent'S eXPerIenCe In terMS OF tHIS ACCelerAtIOn?

Despite our company's size and the volume of business we do, the IT department is a modest one. This allows us to maintain a constant course, avoiding major pitfalls or deviations caused by changes in the business cycle or by market conditions like those we see today. In addition, we have several partners that have demonstrated the highest levels of reliability and professionalism when we initiated projects that required 200% from all of the professionals involved. Our department policy is oriented toward variable costs, which gives us the greatest level of flexibility when facing situations of work overload or stagnation in IT investment.

WHAt rOle DO neW teCHnOlOgIeS PlAY In YOur BuSIneSS StrAtegIeS?

Basically, our strategy in this regard is oriented toward innovating to the greatest extent possible in procurement, with a clear philosophy of "buy very well so as to sell even better." With this in mind, and as an example of the type of business we conduct, our major clients are those that require us to be fully integrated with their B2B platforms, to handle electronic billing at either national or European level, and to conduct business without exchanging a single piece of paper.

AS CIO, WHAt Are YOur PrIOrItIeS In tHe Current eCOnOMIC SCenArIO?

To maintain the perfect balance between investment and level of service, with the goal of continuing to offer the quality of service that our clients/users require.

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"gREATER vISIBIlITy ON PROjECTS AND COSTS."

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AHMED BENNOURSERvICES AND INFORMATION SySTEMS DIRECTOR ArevA

ThE REORGANIzATION OF AREvA LEd TO ThE CREATION OF SINGLE IT dEPARTMENT FOR ThE GROUP. ThE RESULT: INCREASEd SIMPLIFICATION ANd COhERENCE, PARTICULARLy WELCOME AT A TIME WhEN ThE REqUIREMENTS OF MANAGEMENT CONTROL ARE BECOMING MORE dEMANdING.

WHAt rOle Are It DePArtMentS PlAYIng In 2011?

It all depends on the maturity of the function within every business, but it’s undeniable that IT departments should no longer be considered merely as cost centers. The goal today is to have a sound understanding of the business strategy in order to propose technological solutions that will help create value. To do that, the IT function needs to take up its full position within the organization. One of our challenges today is to integrate IT into governance with the business groups and operational departments in order to share governance, project prioritization processes and financial control with the line of business.

HOW DO YOu SuPPOrt tHe StrAtegY OF tHe BuSIneSS?

At the beginning of 2010, the group reorganized itself in line with the strategy of an integrated offering throughout the business. AREvA is now organized according to operational needs (mines, front end, reactors and services, back end and renewable energies) rather than divisions. At that time, a single IT department for the group was put in place. Our goals remain the same: client satisfaction and information system performance, security and risk management, cost reduction, standardization, continuous improvement… But we also have a specific goal in terms of management control and the positioning of Euriware, our consulting, systems integration and IT management business.

WHAt HAve Been tHe BeneFItS OF tHe reOrgAnIzAtIOn FOr YOu?

Simplification and coherence. We now have single roadmap for the group and we’ll soon have a single ERP system. In addition, this new organization gives us greater visibility on projects – which enables us to prioritize them well – and on costs, which has enabled us to adapt our cost structure when certain projects are postponed. That wasn’t possible in the old organization with 300 applications to manage… And it’s very beneficial in the context of the crisis in Japan, when we have to respond to everything that is changing.

WAS tHe reOrgAnIzAtIOn SuPPOrteD BY SPeCIFIC ACtIOnS?

In parallel we launched an optimization program that grouped our various challenges into roughly twenty projects. Some enabled us to implement genuine performance opportunity management, which had an impact on procurement, the renegotiation of certain contracts, the optimization of infrastructure or the development of offshore initiatives. This program is also contributing to improved management control, to greater efficiency in the way the IT department works with Euriware, and to the positioning of Euriware as the IT services provider and preferred partner of the group.

Are YOu runnIng PrOjeCtS InvOlvIng neW teCHnOlOgIeS?

We are consolidating our data centers and starting to virtualize our servers, but given the sensitive nature of our data, we are not considering moving it into a public cloud. As for social media, we are working with our colleagues in the communication, hR and legal departments to determine the impact of these new technologies. This process has already resulted in a charter for the use of social networks.

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"NEW ARCHITECTURE REDUCES DEvElOPMENT COSTS By 30%."

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lUTz BRUNkEIT MANAGER COMDIreCt BAnK Ag

IT ANd BANKING hAvE LONG BEEN INExTRICABLy LINKEd. FOR A dIRECT BANK FOCUSEd ON ONLINE OPERATIONS, GETTING IT RIGhT ISN’T jUST IMPORTANT – IT’S CRUCIAL. LUTz BRUNKE, IT MANAGER OF COMdIRECT BANK AG, dISCUSSES ThE PROjECTS BEING GIvEN PRIORITy TO SUPPORT ThE GROWTh OF ThE BUSINESS ANd ENhANCE ThE CUSTOMER ExPERIENCE.

BAnKS AnD DIreCt BAnKS Were PArtICulArlY SeverelY AFFeCteD BY tHe CrISIS. HOW DID COMDIreCt BAnK eXPerIenCe tHIS?

We were of course affected by the crisis, and still are today to some extent. As a direct bank, however, we don't just deal in securities; we also provide daily banking services for our clients, such as payment processing and savings accounts. This means that the effects of the financial crisis were not as dramatic for us as for other financial institutions, for example, those focused on real estate. Clearly we also exercise strict discipline in cost management. During the crisis, we worked intensively on the efficiency of existing processes, with less emphasis on new services and products. Now the markets have picked up, we want to use IT to help launch new products, and to further develop the functionality of existing products.

On tHe SuBjeCt OF eFFICIenCY – CAn YOu PrOvIDe uS WItH SOMe eXAMPleS OF HOW It HAS reSPOnDeD tO tHe ACCelerAtIOn In BuSIneSS CYCleS?

Firstly, we have a continuous improvement program in place to boost the efficiency of our back office and call center processes, which enables us to serve more customers with the same level of personnel. IT supports this by increasing the level of automation in the back office and improving customer self-service functionality – for instance, by enabling customers to perform even complex transactions independently online. In the call center, even simple measures such as an additional screen for rapid viewing of the customer history proved highly effective.

Secondly, within IT we’re finding ways to work more efficiently. We’re switching to a new software architecture to increase the speed and flexibility of IT. We’re migrating our middleware to a business logic environment with a Java-based architecture. This enables us to break open the software structures that have grown organically, so we can segment them into clean components. It has the additional benefit that when we outsource projects to make progress more rapidly, there are simply more technical resources on the market that can handle the Java architecture. Both programs were begun prior to the crisis, and continued to run during the downturn. They also deliver tangible benefits: for example, thanks to the architecture program we’re realizing savings of about 30% on our development costs.

WHAt IS tHe IMPACt OF tHeSe PrOjeCtS On tHe CuStOMer?

Many aspects are not visible for the customer, and initially at least, functionality and speed will remain the same as we migrate software functions. however, the advantages of the new architecture will play a role, for example by enabling us to offer products for off-exchange trading. Other projects do benefit our customers directly, such as product innovations or improved functionalities. This year, for instance, we will launch a website with enhanced user operability, based on Web 2.0 functionality, among others. For example, we’d like to provide a personalized accounts overview, in which the customer can determine what should be shown where, at what level of detail. Similar things will be added to the order screens.

FrOM A BuSIneSS AnD It PerSPeCtIve, WHAt Are YOur greAteSt CHAllengeS In tHe neAr terM, AnD WHAt neW teCHnOlOgIeS WIll YOu Be COnSIDerIng?

One significant challenge is the mobile arena. We will not only have to provide a website, but also make our products available to customers using smartphones and tablets. From the IT perspective, we also want to improve deliverability, that is, to reduce time to market. We’re also currently having an exciting discussion about incorporating social media. This raises questions about what we want to do as a bank, and even about what we’re allowed to do. ultimately we’re dealing with personal data.

tHe WHOle WOrlD IS tAlKIng ABOut ClOuD COMPutIng. WHAt PlACe DOeS It HAve In YOur PlAnS?

Particularly for a bank, there are many things that are currently not desirable to have in the cloud. This issue primarily relates to availability, security, and privacy. This means that we’re taking a very conservative approach to the public cloud at this time.

teStIMOnIAlS

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"OUR PRIMARy FOCUS IS ON PROjECTS THAT gENERATE gROWTH AND REvENUES."

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PHIlIPPE COURqUEUxIT AND LOGISTICS DIRECTOR COrA

AT CORA ThE IT dEPARTMENT IS NOT A COST CENTER, IT IS AT ThE hEART OF vALUE CREATION. A NEW SERvICE PLATFORM, ThE REINFORCING OF MULTIChANNEL SyNERGIES, A NEW ChECKOUT SySTEM: IT IS AT ThE CENTER OF INNOvATION ON ALL FRONTS.

WHAt IS tHe rOle OF tHe It DePArtMent In COrA’S return tO grOWtH?

Our primary focus is on projects that generate growth and revenues. We’re currently testing a new online shopping service, Cora Drive. Customers order online and are free to choose the day and time at which they want to come to collect their purchases. The difference with houra, the group’s online shopping platform, is that they aren’t limited to a fixed delivery slot. So in addition to saving time, it’s an extremely flexible service for people that work.

DOeS tHIS neW PlAtFOrM HAve A lOt OF grOWtH POtentIAl?

It’s getting a lot of traction in the stores where the pilot project is currently being run. The tool is highly relevant and delivers real added value. We involved our customers very far upstream in the process for designing the service, as well as in its continuous improvement. Today, when we launch a campaign to collect customer opinions, over 50% of them respond, which leads to tremendous improvements in the service. We’re striving to reinforce our multichannel strategy by further developing the links and interaction between the service platform (Cora Drive) and the various communication channels.

HOW HAve YOu eXPerIenCeD tHe ACCelerAtIOn OF BuSIneSS CYCleS?

We’ve felt the full impact. We reinforced our planning efforts in cooperation with top management and project management, in order to be capable of handling the requests and projects that will come up in the course of the year more easily. Where previously we were able to complete 80% of the projects planned at the beginning of the year, that level has been eroded in 2010, due to the propagation of new projects in the short term.

WHAt IS tHe PlACe OF neW teCHnOlOgIeS In YOur StrAtegY?

We’ve been investing in virtualization for several years, with vM Ware. As a result, our server park is smaller, more homogenous and easier to maintain. The 6,500 PCs in the group are managed via remote administration. We’re also interested in cloud computing, which is particularly relevant during test phases. however, it’s not always easy to find applications that correspond to our needs, without mentioning the interfacing problems.

WHAt Are YOur PrIOrItIeS?

We’re developing our own checkout solution, which is quite rare in the retail sector. We have already internalized our loyalty program in order to manage our special offer policy more easily. By internalizing the entire system, we’ll be able to develop a self-scanning service that will enable customers to scan their merchandise directly in the aisles more easily. We gain agility when developing the project, and we’re no longer dependent on an outside service provider while at the same time reducing our maintenance costs. We’re also working on a unique database of 140,000 products that will be shared by all the departments in the company: logistics, sales, accounting, etc. The goal: increased coherence and efficiency.

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"THE IT DEPARTMENT SHOUlD NOT ONly BE INvOlvED IN THE MANAgEMENT AND DISTRIBUTION OF COMMODITy SERvICES, BUT AlSO IN THE COMPANy'S CORE BUSINESS ACTIvITIES."

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gIANlUCA FUSCOCIO eDIPOWer SPA

WITh PROFOUNd KNOWLEdGE OF BUSINESS PROCESSES, CONSTANT COLLABORATION ANd dIALOGUE WITh MANAGEMENT ANd ThE ABILITy TO IdENTIFy ThE hIGhEST vALUE TEChNOLOGICAL INNOvATIONS, IT AT EdIPOWER IS A STRATEGIC dRIvER OF OPERATIONAL EFFICIENCy ANd ThE CREATION OF COMPETITIvE AdvANTAGE.

In YOur COMPAnY, HOW DOeS tHe It DePArtMent SuPPOrt tHe BuSIneSS tO FOSter reCOverY AnD grOWtH?

IT works closely with management by establishing a relationship based on knowledge of processes and business challenges. This relationship aims to identify projects and initiatives that contribute to efficiency, competitive value and differentiation in the marketplace. This approach combines traditional reactivity, that is to say the ability to quickly respond to needs expressed by the business, with a proactive approach that enables IT to offer new solutions.

WHAt rOle DO neW teCHnOlOgIeS PlAY In tHe StrAtegIeS ADOPteD BY YOur DePArtMent AnD BY YOur COMPAnY?

The knowledge of new technologies and the ability to identify and understand those having the greatest impact on the business are key aspects enabling IT management to form a strategic vision of efficiency and value creation, including through the introduction of innovation.Both IT and the CIO must thus develop analytical skills related to business analysis (in order to select technologies based on business priorities), related to architecture (in order to ensure proper governance during the integration processes), and related to change management (in order to identify processes and transformative activities for both IT and the business that must be addressed through appropriate training programs).

In YOur rOle AS CIO, WHAt Are YOur PrIOrItIeS In tHe Current eCOnOMIC ClIMAte?

My primary target is still to strengthen IT’s position as an authoritative partner for business initiatives capable of affecting the company's value chain. The IT department, in fact, should not only be involved in the management and distribution of commodity services, but also in the company's core business activities, so as to perform the role that today is increasingly sought of IT. This means that the IT department must be able to revise its organizational models and its sourcing solutions.

Organizational models must increasingly focus on personnel whose traditional technology skills are accompanied and complemented by knowledge of business processes. This is in order to maintain the important strategic and tactical processes inside the company (typically all governance processes), as opposed to the more operational and specialist processes, which can be outsourced.

The sourcing model must be able to adapt to the organizational setting in order to seize opportunities in terms of outsourcing or cloud computing - depending on business maturity - in a context that is certainly ever more complex in terms of technology and integration.

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"IT CONCENTRATES ON OPERATIONAl EFFICIENCy AND BUSINESS PERFORMANCE MANAgEMENT."

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THOMAS HENkElCIO AMer SPOrtS

AMER SPORTS IS PURSUING A NEW STRATEGIC dIRECTION WITh TWO KEy ELEMENTS. CIO ThOMAS hENKEL ExPLAINS ThE EFFECTS ThAT ThIS hAS ON IT ANd hOW IT WILL OvERCOME ThESE NEW ChALLENGES IN ThESE vERy TURBULENT TIMES.

WHAt CHAllengeS DO YOu FACe AS CIO OF AMer SPOrtS In tHeSe tIMeS OF CHAnge?

For one thing, fortunately our business is growing, which also has an impact on IT, and for another, we support the new strategic alignment of our company in the areas of organization and customer segmentation. For several years now, we have been working on organizing Amer Sports internally no longer by business segment but by product category. In the past year, in addition to our B2B customers in sports retailing and wholesaling, we have also begun addressing the end customer directly.

WHAt eFFeCt HAS tHAt HAD On It?

In practice, we’re the nervous system that connects teams and provides them with all the information they need to be successful in their product categories. This means that, in concrete terms, we first need to speak the same language with respect to data, reports and information. Many of the synergies that we seek will only be realized if the entire group uses the same processes. For example, we now execute 80% of our global sales volume in a single version of SAP. This gives us a high level of data quality, among other benefits, which is critically important for our decision support systems. We have also now equipped 50% of our locations with a uniform process platform. We want to increase this percentage, and thanks to our excellent IT team, we’re making good progress every year.

WHAt StrAtegIeS Are YOu PurSuIng tO MAKe It AnD PrOCeSSeS AgIle AnD FleXIBle enOugH tO BeSt SuPPOrt tHe PerFOrMAnCe AnD grOWtH OF AMer SPOrtS?

Strategically, we are concentrating on two tasks: improving operational efficiency, and optimizing business performance management. The first one deals with the question of how to automate our customer and delivery processes to the greatest extent possible. The second is about tracking and comparing our businesses according to the same criteria globally, so that we can react to trends as quickly as possible. We want to be able to supply our customers with the right products, in the right quantities, with pinpoint precision.

WHAt eFFeCt HAS DIreCtlY ADDreSSIng tHe enD CuStOMer HAD On tHe It DePArtMent?

Because we concentrate on our strategic initiatives on the IT side, in the area of e-commerce, where we serve our end customers as well as flagship stores and factory outlets, we work with partners that do everything for us, from website construction to payment processing and logistics. We’re clearly still in a learning phase here. In order to be able to provide our customers with a good online purchasing experience, however, we have placed this in the hands of our partners.

HOW DO YOu HAnDle neW teCHnOlOgIeS, AnD HOW DO YOu IntegrAte tHeM IntO YOur It StrAtegY?

We pick up on new themes early, but keep our investments relatively small at first, in order not to take too great a risk. For example, after some intense discussion, we decided not to invest in tablet PCs, but we will provide an opportunity for those employees who want to use their personal devices at the company to synchronize them with their company calendar, conference planners and emails. In the second big area of hype, cloud computing, we’re also proceeding with caution. We have started to use some applications in Software-as-a-Service mode, but only those that don’t need to be integrated in our business processes.

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"THE IT DEPARTMENT CAN gENERATE REvENUE AND PROvIDE A COMPETITIvE ADvANTAgE IN DISCUSSIONS WITH ClIENTS."

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SylvAIN MOMINhEAD OF COuNTRy TEChNOLOGy ORGANIzATION ABn AMrO BAnK (luXeMBOurg)

AS ThE BANKING SECTOR EMERGES FROM ThE WORLd FINANCIAL CRISIS, WE SPOKE WITh SyLvAIN MOMIN, hEAd OF COUNTRy TEChNOLOGy ORGANIzATION FOR ABN AMRO BANK IN LUxEMBOURG FOR ThE PAST FOUR yEARS. hE ShOWS hOW TEChNOLOGy CAN BOOST ThE BUSINESS EvEN AT A TIME OF CONTINUEd COST CUTTING.

HOW IS tHe teCHnOlOgY DePArtMent COntrIButIng tO tHe grOWtH OF tHe BAnK?

We work with the project management office on a daily basis to help drive new business ideas. We are looking at replacing the main applications used by the front office over the next year, for example. The idea is to provide improved services for customers and better performance for the bank's relationship managers through improved links to the back office. We want relationship managers to be able to have access to all information about the customer on one system, including their financial information and day-to-day operations.

At the same time, management will be better placed to monitor the performance of the account managers and the performance of the clients themselves. We will be able to group clients by revenue, giving us a greater understanding of their needs and where to invest time and resources. At present, we have a closed system that does not allow us to add new software for this kind of analysis.

WHAt Are YOur PrIOrItIeS Over tHe neXt FIve YeArS?

There continues to be a great deal of pressure to reduce costs. We plan to consolidate applications and reduce the number of software programs. We also want to reduce our infrastructure by reducing the number of servers we operate and consolidating our storage systems into one or two bigger systems. We started the consolidation process this year and hope to complete it within the next twelve months.

WHere Are tHe OPPOrtunItIeS gIven tHe PreSSure On COStS?

We are trying to show that the IT department can generate revenues rather than just being a cost center. We frequently work with other departments and make proposals to our management to prove that technology can be a real competitive advantage in discussions with clients, that we can add real value.

Last year, for example, we built a new web-based banking system for professional clients such as family offices and asset managers. The new system allows these clients to execute their own orders and that has proved to be a clear advantage when our bank is bidding for professional business. It took us one year to develop that system from the time of board approval to going live with the first client.

WHAt Are tHe MAIn CHAllengeS YOu FACe?

Increasingly, top-level management wants projects to be completed more quickly, giving us less time. In the past, we would have had around one year to complete a project, now it's typically between three and six months. We are looking for new ways of working to manage this change. For example, we are trying to ensure that the project and the business requirements are clear from the start so that we can work more efficiently. We are also implementing projects in different phases. Each phase will bring functionality, so the business does not have to wait until the end of the project to see results. When we introduced web-based professional banking, for example, we started by providing read-only access so that the business could at least show the new system to our clients. Then, in the second phase, we provided the ability for clients to execute orders via the internet.

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ACTINg lIkE A STRATEgISTyear after year, faced with an accelerating series of related disruptions that is driving profound transformation within businesses, the contribution made by CIOs to the defining of corporate strategy is increasing. This reinforced role is a precondition to delivering the technological solutions that create the most value. CIOs explain their situation.

"THE vAlUE OF DATA FROM SOCIAl MEDIA SUCH AS BlOgS AND FACEBOOk IS CHANgINg THE WAy ORgANIzATIONS DO BUSINESS."

tHIBAut BrItz CTOtrendiction

"IN THE FUTURE, I THINk THE INFORMATION TECHNOlOgy DEPARTMENT WIll BE SEEN AS A STRATEgIC ENABlER TO THE REvENUE AND qUAlITy ARMS OF THE HEAlTH SySTEM THROUgH THE DIFFERENT SERvICES IT OFFERS."

MIKKI ClAnCYCIOPremier Health Partners

"IT DOESN’T FUNCTION IF THE PROCESSES DON'T WORk."

ernSt HegerCIOÖBB Infrastruktur Ag

"SIMPlIFICATION IS STIll THE gREATEST CHAllENgE FACINg IT."

DAnIel leBeAuvice President, Management & Information SystemsgSK Biologicals

"WE’RE STRENgTHENINg OUR IT gOvERNANCE WORlDWIDE TO PROMOTE SyNERgIES."

FréDérIC rIBAuCIO EMEAYahoo

"A gROUP IT DEPARTMENT FOR THE STATE."

jérôMe FIlIPPInIDirector, Inter-ministerial Department of State Information and Communication Systems, FranceDISIC

"ORgANIzATIONS MUST ASSESS HOW MUCH INFORMATION THEy WANT TO SHARE OvER THE INTERNET AND THEIR RISk APPETITE."

vAneSSA lAPInSSenior vice President of Global Information, TechnologyDorel recreational/leisure

teStIMOnIAlS

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"THE vAlUE OF DATA FROM SOCIAl MEDIA SUCH AS BlOgS AND FACEBOOk IS CHANgINg THE WAy COMPANIES DO BUSINESS."

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THIBAUT BRITzChIEF TEChNOLOGy OFFICER trenDICtIOn

ThIBAUT BRITz, 28 yEARS OLd, IS ThE CO-FOUNdER ANd ChIEF TEChNOLOGy OFFICER OF TRENdICTION, A WEB dATA COLLECTION COMPANy. WINNER OF ThE yOUNG ICT TALENT AWARd IN LUxEMBOURG LAST yEAR, hE ShARES hIS vISION OF ThE RISING IMPORTANCE OF SOCIAL MEdIA ANd ThE ChALLENGE OF COLLECTING hUGE AMOUNTS OF dATA.

WHAt IS trenDICtIOn?

Trendiction provides its clients with all relevant European social media data, collected from sources including blogs, message boards, online news, Twitter and Facebook so that it can be integrated into the clients’ own systems. Specialized in online crawling, data collection, data aggregation and search technologies on the social Web, Trendiction offers its clients the possibility of outsourcing the technologically complex social data collection process. We can collect data in any European language and work with the biggest media monitoring companies, market research institutes and online agencies in Europe.

HOW HAS tHe BuSIneSS CHAngeD SInCe YOu CO-FOunDeD tHe COMPAnY In 2009?

When we started, many companies carried out their own crawling of the internet. Now, they are increasingly outsourcing the online data collection and focusing more on their core business, the generation of knowledge from the data. Crawling has become more complicated as the amount of data on the internet grows daily. Collecting data requires significant resources – we have over 150 servers running to collect social media data from Germany, France, Italy, Spain and the Netherlands alone – and that represents a large investment. The financial crisis hasn't really affected us. If anything, it has increased companies' desire to know what people are writing about them.

HOW Are YOu IntegrAtIng neW teCHnOlOgIeS?

We are constantly looking at new trends like cloud computing and a distributed database system. We have decided against implementing cloud computing, however, for design reasons.

WHAt Are YOur PrIOrItIeS FOr tHe neXt COuPle OF YeArS?

We want to offer the European social web as one interface, that can be used for optimizing existing applications and business processes. These range from reputation management and online market research to integration into CRM tools. At present, many solutions are on the market that focus on creating knowledge out of data. I believe the key will be the integration of these solutions into existing business processes. We also eventually plan to push into other countries and are focusing strongly on research and development, marketing and sales.

WHAt Are tHe BIggeSt CHAllengeS tO grOWtH?

The biggest challenge will be how to collect and manage the huge amount of online social media data available. We can expect that the data will double every year in each language and we have to decide which languages to invest in. For now, we plan to have complete coverage of European countries over the next two years and then to expand more internationally.

The perceived value of social media remains fairly low and many companies still do not completely understand the value of this data. I am convinced this will change as more and more people use social networks like Facebook, LinkedIn and blogs as private as well as corporate communication channels. Companies need to know what is being said about them. If BP had reacted more quickly after the oil spill in the Gulf of Mexico, for example, perhaps its reputation would have been less damaged by the crisis.

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"IN THE FUTURE, I THINk THE INFORMATION TECHNOlOgy DEPARTMENT WIll BE SEEN AS A STRATEgIC ENABlER TO THE REvENUE AND qUAlITy ARMS OF THE HEAlTH SySTEM THROUgH THE DIFFERENT SERvICES IT OFFERS."

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MIkkI ClANCyCIO PreMIer HeAltH PArtnerS

PREMIER hEALTh PARTNERS IS A LARGE hEALTh SySTEM IN SOUThWEST OhIO ThAT INCLUdES MIAMI vALLEy hOSPITAL, GOOd SAMARITAN hOSPITAL, ATRIUM MEdICAL CENTER ANd UPPER vALLEy MEdICAL CENTER.

HOW HAS tHe teCHnOlOgY DePArtMent CHAngeD SInCe YOu BeCAMe CHIeF InFOrMAtIOn OFFICer In 2002?

The information technology department used to be seen as a back-office function that was a necessary cost. Today, it has a clear strategic role in enabling and improving operations, the patient experience, and the partnership between the physician, the patient, and the hospital.

In the future, I think the information technology department will be seen as a strategic enabler to the revenue and quality arms of the health system through the different services it offers. These will include the management of health records and the predictive modelling and measurement of care provided by physicians in line with Accountable Care models, part of the u.S. healthcare reform.

WHAt Are YOur PrIOrItIeS FOr tHe YeAr AHeAD At A tIMe OF greAt CHAnge FOr tHe HeAltHCAre InDuStrY In tHe u.S.?

All our priorities are linked to healthcare reform, quality, and operations improvement. We want to proactively position our organization for the future and have put in place a strategic plan to guide us over the next five years. Information technology plays an important and foundational role in these plans.

WHAt Are tHe OtHer CHAllengeS YOu FACe In tHe COMIng YeArS?

It’s increasingly hard to balance priorities with more demands. We find it increasingly challenging to recruit qualified people. That’s why we decided last year to work with three local colleges to help create training programs focused on software integration and workflow expertise rather than software development. We want to help create more capacity in the workforce.

HOW HAve YOu reOrgAnIzeD YOur teAM In tHe WAKe OF tHe FInAnCIAl CrISIS?

Over the last two years we have used project management office methodologies to improve how we work. The results have been pretty monumental for us. We have reduced our per employee worked hours from around 80 hours per week to around 50 hours, and reduced our backlog of projects by around 20%.

We did this by, among other measures, tracking staff working on routine maintenance and new projects and by making sure we are focusing on the high-priority projects that have the support of top management. We are now working on around 50 projects at a time instead of 100, for example, to maximize the completion rate. Before, some of our staff of 190 technology professionals were taking on a number of projects that were not in our original planning process.

WHAt IS lIKelY tO HAPPen tO YOur BuDget gIven tHe Current FOCuS On COSt reDuCtIOn In HeAltHCAre?

I think the budget will stay approximately the same. That means that we will have to justify projects and costs more than ever. We are in a quickly changing environment looking for additional resources.

Going forward, we will have to be really good at making a case for the money we need and we must make sure we take on the right projects.

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"A gROUP IT DEPARTMENT FOR THE STATE."

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teSIMOnIAlS

jéRôME FIlIPPINIDIRECTOR, INTER-MINISTERIAL DEPARTMENT OF STATE INFORMATION AND COMMuNICATION SySTEMS, FRANCE DISIC

RECENTLy APPOINTEd AS LEAdER OF ThE BRANd NEW INTER-MINISTERIAL dEPARTMENT OF INFORMATION ANd COMMUNICATION SySTEMS IN FRANCE, jéRôME FILIPPINI ShARES hIS GOALS ANd PROjECTS.

In reSPOnSe tO WHICH neeD WAS tHe DISIC CreAteD?

The French public authorities have recognized the strategic nature of information systems, which represent a major expenditure and which underpin modernization projects. The state thus decided to set up a group IT department similar to that in a large corporation, responsible for developing and managing the overall IT strategy – networks, software, security, etc. This management of information systems should enable the public sector reforms underway to be successfully completed.

WHAt Are tHe MAIn tASKS OF tHe DePArtMent?

There are four of them. The standardization of information systems, in terms of coherence and uniformity within government institutions. Cost and performance management, which is often little or poorly measured. Risk management, in particular for complex projects, whether inter-ministerial or just very large. And lastly, DISIC will “incubate” or run several projects to set up shared platforms.

SO It WIll HAve An OPerAtIOnAl rOle?

Its role will be more to stimulate the IT departments of the ministries to take measures and work together, but DISIC will not be only a management department: it will get its hands dirty, as it were. As of this year, we’ll be working on the inter-ministerial IP network, the implementation of secure cloud solutions for the state, and the organization of support operations for territorial users. Furthermore, even if DISIC does not intend to replace the IT departments in the ministries, it will be able to intervene in major projects: to help them make progress, or if necessary interrupt them if other, more efficient solutions are available...

WHAt WIll Be tHe FIrSt tHIngS DISIC WIll WOrK On?

In a first stage we will define our own cost and value creation models. Within government, this relates more to improving quality of service rather than increasing revenue. We will then need to rapidly determine the costs in the ministries and bring them up to speed in terms of governance.As regards the operational aspects mentioned earlier, we will put in place a solution able to integrate the ministerial networks as soon as they migrate away from their original models. As for the private cloud, we will identify the target and start to implement operational solutions. For this and other development processes, we will take the time to examine all the options available, without exceptions, in order to build a long-term solution.

DOeS tHe tIMe HOrIzOn DIFFerentIAte YOu FrOM A PrIvAte SeCtOr It DePArtMent?

It is true that our projects do not have to follow the pace imposed by the profit and loss account. however, that doesn’t mean that we are not subject to the acceleration in decision making and strong pressure on budgets that can lead to a “short-term” mindset. In addition, government has its own set of constraints (security, confidentiality, data protection, reputation) and drivers: we can rely on the remarkable motivation of civil servants, on a culture of innovation and on initiatives taken by public sector organizations that should be leveraged. Both sectors (public and private) benefit greatly from sharing experience and insight related to their respective merits, strengths and challenges.

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"IT DOESN’T FUNCTION IF THE PROCESSES DON'T WORk."

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ERNST HEgERCIO ÖBB InFrAStruKtur Ag

ThE IT dEPARTMENT AT ÖBB INFRASTRUKTUR hAS TO SUPPORT ThE LONG-TERM PLANS ANd OBjECTIvES OF ThE INFRASTRUCTURE SERvICE PROvIdER OF ThE AUSTRIAN FEdERAL RAILWAy (ÖBB), WhILE PROvIdING OPTIMAL PROCESS SUPPORT ANd KEEPING IT COSTS dOWN. CIO ERNST hEGER ThUS ATTAChES GREAT IMPORTANCE TO IT GOvERNANCE ThAT IS ALIGNEd WITh BUSINESS STRATEGy.

WHAt CHAllengeS Are YOu CurrentlY FACIng?

The most important challenge for IT is to be in line with business strategies and processes, in order to position itself more strongly as a department that creates value. IT doesn’t function if the processes don't work. That's why it is so important to work closely together with the company's engineers and process designers.

vAlue CreAtIOn ISn’t tHAt eASY tO DeMOnStrAte. HOW DO YOu DO tHAt?

We have set up a comprehensive project portfolio management system, in which we can assign specific strategic parameters to each IT project, and can show how well the various criteria are fulfilled. For example, we measure the effect that an application has on sales, or how it contributes to process simplification.

BuSIneSS AnD InnOvAtIOn CYCleS HAve BeCOMe SHOrter SInCe tHe CrISIS. HOW HAS tHe It DePArtMent At ÖBB InFrAStruKtur DeAlt WItH tHIS ACCelerAtIOn?

ÖBB Infrastruktur AG has a very long-term outlook. This is part of the nature of our business, which is about providing an adequate and reliable railway infrastructure, and the safe and timely operation of rail traffic. We’re always looking five years ahead in our concrete plans, and strategic considerations extend to 2025.

SO DID tHe eCOnOMIC CrISIS OF 2009-2010 nOt AFFeCt It At ÖBB InFrAStruKtur?

yes, to the extent that our customers suffered greatly as the economy collapsed, it did. Of course this also put great pressure on costs on our side, and we reacted by putting in place a very rigid cost management program. This led to greater transparency and reductions in cost for standard IT services.

WHAt neW trenDS AnD teCHnOlOgIeS DO YOu COnSIDer tO Be IMPOrtAnt?

For ÖBB Infrastruktur AG, the critical technologies are specific to railway operations, which are increasingly built on, and depend on, information and telecommunications technology (such as ETCS, GRSR, etc.). Classical information processing is converging with the control systems for railway systems and trains.

On the one hand, when it comes to general IT subjects, I’m interested in the development of IP telephony, videoconferencing, collaborative working and unified communications. On the other hand, I’m keeping a close eye on the growing service orientation in the IT landscape. The term SOA has unfortunately been overused, but it’s actually about clearly designed software service modules that can finally provide us in IT with the flexibility we have long been promised. Another area is the optimization of application management, in cooperation with service providers. We are working not just on implementing this at a technical level, but also on the goal of creating a comprehensive view of the end-to-end service quality that we provide to the specialist divisions, including non-operational requirements.

WHAt WAS YOur MOSt IMPOrtAnt PrOjeCt lASt YeAr?

Within ÖBB Infrastruktur AG, we set up an internal IT service provider with about 1,300 employees, centralizing all IT and telecommunications activities. This internal provider, set up as a shared service organization, provides everything from cabling to application management within the ÖBB group. This helps us meet three goals: bundling of resources, transparency, and a view on cost that enables price comparisons with the external market for IT services.

WHAt PrIOrItIeS Are YOu SettIng FOr tHe neXt 12 tO 18 MOntHS?

here again there are three: continue to establish sound governance, manage current operations in a structured manner at optimal cost, and simultaneously focus on innovation in terms of processes.

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"COMPANIES MUST ASSESS HOW MUCH INFORMATION THEy WANT TO SHARE OvER THE INTERNET AND THEIR RISk APPETITE."

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vANESSA lAPINSSENIOR vICE PRESIDENT OF GLOBAL INFORMATION TEChNOLOGy DOrel reCreAtIOnAl/leISure

WE SPOKE TO vANESSA LAPINS, SENIOR vICE PRESIdENT FOR TEChNOLOGy AT dOREL RECREATIONAL/LEISURE, ABOUT hOW ShE IS hELPING BOOST GROWTh IN hER RECENTLy-CREATEd ROLE AT ThE hEART OF ThE dOREL RECREATIONAL/LEISURE BUSINESS STRATEGy. ShE ALSO ExPLAINS ThE ChALLENGES ShE FACES AT A TIME OF SIGNIFICANT ChANGE.

WHAt Are tHe MAIn InItIAtIveS YOu HAve tAKen SInCe jOInIng DOrel reCreAtIOnAl/leISure lASt YeAr?

Dorel Recreational/Leisure’s CEO, Robert Baird, views technology as a key player in the business. My role is to help take the company's growth to the next level. For example, we moved to a new business-to-consumer web platform using the Magento platform with the aim of developing our e-commerce business. Previously, we had a proprietary platform developed internally but we wanted more flexibility with less cost. however, because our segment includes the brands Cannondale, GT, Schwinn and Sugoi, we need to enhance our brands without competing with the dealers who are our customers. Our largest technology project is to move additional u.S. and European operations to SAP. We started that project in February and we are now at the realization stage. This will allow us to harmonize our business processes and to take advantage of SAP best practices.

We also want to get rid of our extremely antiquated telephone system that lacks even a mute button. We are implementing Avaya’s voice-over-internet technology including for the call centers with a common messaging platform. The idea is to improve efficiency and give us more visibility in our dealings with the customers by internet and by phone.

HOW WOulD YOu DeSCrIBe tHe BIggeSt CHAllengeS AHeAD?

We are changing several platforms simultaneously and that is a lot of change for an organization to endure, especially for medium-sized companies that have to make sure they invest wisely. Lots of change can be stressful and there is an adjustment period for everyone.

Companies must also assess how much information they want to share over the internet and what is their appetite for risk. We do not want to create a citadel that does not react with other people but at the same time we need to protect some information. Last year, we implemented Widen’s digital asset management system that allows us to store and distribute digital photography, for example, but proprietary information is protected.

SInCe tHe FInAnCIAl CrISIS, HOW HAve YOu eXPerIenCeD tHe SHOrtenIng OF BuSIneSS CYCleS?

It used to be that the technology department could work on a project for three years. Now, the expectation is that projects are completed in between three and nine months. This shortening of cycles started around three years ago and has moved across the industry. We have to be careful that we are still doing proper due diligence, however, and that we are not missing details. It might be tempting to move everything to cloud-based technologies, for example, to reduce time to market, but it may not be a good idea to move email to the cloud if that email contains proprietary information.

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“SIMPlIFICATION IS STIll THE gREATEST CHAllENgE FACINg IT.”

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DANIEl lEBEAUvICE PRESIDENT, MANAGEMENT & INFORMATION SySTEMS gSK BIOlOgICAlS

WORLd LEAdER IN vACCINES, GSK BIOLOGICALS RELIES ON AN IT dEPARTMENT ThAT IS hIGhLy FOCUSEd ON PROCESSES ANd OPERATIONAL NEEdS, ANd OF WhICh ThE dIRECTOR WAS jUST NAMEd EUROPEAN CIO 2010 By INSEAd ANd CIONET.

HOW DO YOu See tHe rOle OF tHe CIO?

Today the CIO is a process engineer whose greatest challenge is to fight against the fragmentation of systems and to respond to the need for simplification. The number of different technologies needs to be limited, which is not always easy when confronted with requirements that can at times be very specific. For our part, we have eliminated almost 200 systems and have kept only a single major ERP system for finance, procurement, hR, manufacturing and part of our project management processes.

WAS It tHe CrISIS AnD PreSSure tO Cut COStS tHAt DrOve tHIS StrAtegY?

Our intention to rationalize things originated before that, in that same way that our culture of integration drives us to limit the number of interfaces, that we continuously upgrade our assets to maintain their value, and that we focus on the project itself (excluding its upstream and downstream phases) as the only real source of value creation. It is this culture that has naturally prepared us, already for years, to bear the pressure on costs. The crisis did however drive us to monitor costs more closely by way of annual benchmarking of all costs per platform (PCs, servers, SAP, etc.).

HOW DO YOu ADD vAlue?

Firstly, by improving the productivity and efficiency of processes (electronic invoicing, document management, etc.), and by increasing customer satisfaction (planning, forecasting, etc.). Secondly and more specifically, by providing a robust global platform which guarantees that vaccines are manufactured the same way all over the world. In a very highly regulated industry, we also make a significant contribution to compliance with regulatory requirements. Finally, even if innovation in our organization comes mainly from R&D, we contribute to the implementation of innovative processes (project management tools, collaborative tools, etc.).

In WHICH WAY HAve YOu IntegrAteD tHeSe neW teCHnOlOgIeS?

We’re very proactive in providing our people with new tools for collaboration and knowledge management. These tools are available for home use at much lower cost than is currently the case for enterprise use. Responding to the impact of this consumerization is not only about cost savings and the productivity gains to be realized, but is also a question of reputation. If the tool has a good reputation among users, this will be reflected in the quality of our projects and ultimately on the attractiveness of the IT department as a location for new talent.

DO YOu tHInK tHAt ClOuD COMPutIng IS A MAjOr SOlutIOn FOr tHe Future?

It’s already a solution today. We were one of the first large corporations, along with Coca Cola, to have migrated our messaging, intranet and calendars into the cloud. In addition to cost reduction, the cloud guarantees us a steady flow of new functionality as the months go by, and saves us from having to worry about updating our systems. For the future, we’re thinking of the applications that can be integrated the best and that will enable the greatest cost savings.

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"WE’RE STRENgTHENINg OUR IT gOvERNANCE WORlDWIDE TO PROMOTE SyNERgIES."

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FRéDéRIC RIBAUCIO EMEA YAHOO

ThAT WhICh dOES NOT KILL US MAKES US STRONGER. hOWEvER PAINFUL IT MAy BE, EvERy CRISIS hAS ITS BENEFITS. ANd yAhOO IS A GOOd ILLUSTRATION OF NIETzSChE’S MAxIM. ALThOUGh ThE AMERICAN ORGANIzATION SUFFEREd A dROP IN REvENUES IN 2008, IT IS BOOKING GROWTh AGAIN IN SPRING 2011. dRIvING ThESE RESULTS (CONSIdERABLy BETTER ThAN ExPECTEd) IS A MORE FAvORABLE ECONOMIC CONTExT, BUT ALSO OPERATIONAL ExCELLENCE STIMULATEd By ThE CRISIS.

WHAt HAS tHe rOle OF tHe It DePArtMent Been In YAHOO’S grOWtH?

The crisis taught us to leverage our resources to continue to develop new projects in a tight budgetary environment. Our greatest challenge was to reinforce our alignment with the strategy of the business in order to avoid dissipating our efforts. In the last two years, the IT department has drawn much closer to the decision makers in every department, in order to think together about things far upstream in the processes. The goal is to develop projects aligned with the business and perfectly synchronized with operational needs. We have communicated internally about the role of IT as a center for value creation. We carry out and publish quarterly reviews of progress made as well as the level of satisfaction within the business units in order to make our contribution more visible to the line of business.

WHAt SHAPe HAS tHIS tAKen WItHIn tHe It DePArtMent?

We have strengthened the governance of the IT department at a global level, in order to avoid working in silos and to promote synergies between the regions (America, Asia-Pacific and EMEA). We have appointed a worldwide project manager who makes sure there is no duplication of work in the regions and who evaluates the relevance of projects – the right project at the right time. We have worked on creating shared resources at a global level; although our platforms are global, sometimes our ways of collaborating are still caught up in methods from the past. We strive to encourage a more cross-cultural approach to work.

WHAt PlACe DO neW teCHnOlOgIeS HAve In YOur StrAtegY?

As a player in the digital economy, we need to follow and preferably anticipate technological revolutions. Today, mobility and the associated tools are a central challenge to be faced to provide optimal productivity for our people. According to a recent study, more smartphones are being sold than ordinary mobile phones, and tablet PCs are slowly replacing normal PCs. Our internal strategy is thus oriented simply around mobility and collaborative work; our employees want to be mobile and be able to communicate at any time (via their PC, telephone, videoconference, etc.). We need to fully integrate these new technologies into our infrastructure, creating ecosystems that are fluid, operational and secure – and all of this needs to be subject to a clear and efficient policy in order to control costs.

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INNOvATIONSocial media, web 2.0 tools, smartphones – the increasing efficiency and growing range of collaborative tools used among employees, and between businesses and their customers, is driving enterprise transformation. At the center of this trend, CIOs are reinforcing their role as leaders of innovation. here is what they are saying.

teStIMOnIAlS

"TECHNOlOgy AT THE HEARTOF THE ACTIvITy OF A STOCkExCHANgE OPERATOR."

nABIl BAtlOunICIO Europe nYSe euronext

"IN EMERgINg MARkETS, OURgROWTH DEPENDS lARgEly ONREDUCINg OUR TIME TO MARkET"

SAurO nIClICIO AXA

"A CHAllENgE WITHIN ACHAllENgE: TO COMPlyWITH REgUlATIONS WITHOUTgIvINg UP INNOvATION."

rOBertO FOnSOInformation Technology and Operations DirectorBanca Popolare di Milano

"lUSITANIA SEgUROS CONTINUES TO BE A COMPANy CHARACTERIzED By INNOvATION, TECHNOlOgy lEADERSHIP, AND THE STEADFAST SUPPORT OF ITS PARTNERS "

AleXAnDre rAMOSCIOlusitania

"RAPIDly DECODE NEW TECHNOlOgICAl OPPORTUNITIES"

PASCAl rOCHeDirector, Multichannel and Client Internet ITFnac

"ANAlyTICS AlSO HAS HUgE POTENTIAl AND IS ONE OF THE BIggEST OPPORTUNITIES OF THE COMINg DECADE."

BrYAn WOlFCIOChildren's Hospital of Philadelphia

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"TECHNOlOgy AT THE HEART OF THE ACTIvITy OF A STOCk ExCHANgE OPERATOR."

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NABIl BATlOUNICIO EuROPE nYSe eurOneXt PRESIDENTnYSe teCHnOlOgIeS

NySE EURONExT IS ThE LEAdING TRANSATLANTIC STOCK ExChANGE OPERATOR. IN EUROPE, ThE ORGANIzATION hAS UNIFIEd ThE ExChANGES OF PARIS, AMSTERdAM, BRUSSELS, LISBON ANd LONdON (dERIvATIvES). ANd IT PLAyS A CENTRAL ROLE IN ThIS ACTIvITy, WITh ONE MAIN ChALLENGE: STAy CONTINUOUSLy AT ThE LEAdING EdGE OF

nYSe eurOneXt BrIngS tOgetHer SeverAl eurOPeAn eXCHAngeS. Are tHe InFOrMAtIOn SYSteMS CentrAlIzeD?

The centralization of information systems was one of the key points of the creation of Euronext in 2000. Since the merger with NySE in 2007, the group has invested heavily in developing a universal platform, by taking the best of each system, with a single interface for all our clients, which facilitates access to all our markets (equities, bonds, derivatives, etc). Our activities in Europe are currently managed from Paris for the cash markets and London for the derivatives markets. The primary systems are centralized in a data center linked to our clients via a secure high speed network which we also manage.

tHere IS lIvelY COMPetItIOn BetWeen eXCHAngeS WOrlDWIDe. WHAt rOle DO InFOrMAtIOn SYSteMS PlAY In tHIS COnteXt?

The group (and NySE Euronext in Paris in particular) was a pioneer with the development and implementation of the first automatic quotation systems. Our platforms use state of the art technology and enable us to offer innovative services. We say it loud and clear: technology is at the heart of the group’s strategy! Our subsidiary NySE Technologies brings together expertise and knowhow to offer products, complete turnkey systems and high added value services. The company is the preferred supplier for numerous international clients, whether financial institutions or foreign stock exchanges such as those in Qatar, Warsaw or Tokyo.

YOu reCentlY Set uP A DAtA Center ClOSe tO lOnDOn.

The data center in Basildon was opened in spring 2010. It’s one of the most advanced and secure centers in Europe, with very high performance technical specifications, in particular in terms of robustness and low latency. Its scale was designed to support the future growth of our activities, and to host infrastructure in the context of the services we offer to our clients.

WHAt Are tHe CHAllengeS FACIng YOur BuSIneSS tODAY?

The first challenge for a stock exchange platform is market liquidity, in other words, the degree of ease and immediacy with which an investor can buy or sell financial instruments at a fair price. To ensure this liquidity, we have to be able to execute orders very rapidly (in much less than a millisecond), with a very high level of reliability. We’re thus particularly vigilant in terms of security, but also in terms of continuity of service. We also have to manage continuously increasing data and transaction volumes – while optimizing our costs at the same time.

HAS YOur WAY OF WOrKIng CHAngeD In tHe lASt FeW YeArS?

Of course. Since 2007, our organization has been global, with procedures and tools harmonized at group level. Our teams in the various countries are working on several development projects – but in the end they should all be for the benefit of the entire group. That’s also one of the conditions for performance.

WHAt Are YOur gOAlS AnD CHAllengeS FOr 2011?

We are currently in the second phase of the migration of our systems to the London data center. In parallel, we are carrying out several projects in the context of new trading platforms that will be deployed in the near future. In general, we constantly have to face the challenges inherent to our sector, and must continue to develop our systems as technological innovation progresses, in order to stay on the leading edge in all areas.

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"A CHAllENgE WITHIN A CHAllENgE: TO COMPly WITH REgUlATIONS WITHOUT gIvINg UP INNOvATION."

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ROBERTO FONSOINFORMATION TEChNOLOGy AND OPERATIONS DIRECTOR BAnCA POPOlAre DI MIlAnO (BPM)

FINANCIAL INSTITUTIONS ARE NOW INvOLvEd IN ThE dELICATE TRANSITION FROM A PROdUCT-BASEd BUSINESS MOdEL TO A BUSINESS MOdEL BASEd ON ThEIR RELATIONShIP WITh ThE CLIENT. ThE IT dEPARTMENT AT BPM IS BEING CALLEd UPON TO SUPPORT GROWTh ThROUGh ThE IMPLEMENTATION OF SOLUTIONS ThAT STREAMLINE PROCESSES, PROvIdE USEFUL INFORMATION IN REAL TIME ANd FOSTER COLLABORATION AMONG ThE BANK’S EMPLOyEES.

WHAt Are tHe MAIn It CHAllengeS FACIng YOur COMPAnY?

The crisis is still affecting the economic and financial system and will continue to be felt for a while. As far as we’re concerned, 2010 and 2011 will still be characterized by cost cutting and, hopefully, by an increase in revenues, mainly related to interest rate recovery. In this context, the IT department is being called upon to act on two main fronts: to streamline processes with the aim of reducing expenditure, and to support business growth. For some time, however, all the players in the financial services sector have been in the grip of a third problem: regulatory compliance. Although the original aim was to adjust the balance in the relationship between the bank and its clients, in practice it has created a strong dichotomy for financial institutions. On the one hand, an effort is being made to simplify procedures and to make them flow better for the benefit of both the bank and its clients. On the other hand, regulatory compliance requires us to add many monitoring and verification processes, which result in an increased level of complexity and thus increased costs. Suffice it to say that today compliance accounts for almost 40% of our investment! There is, thus, a challenge within a challenge: to comply with regulations without giving up innovation!

AnD WHAt Are YOur PrIOrItIeS AS A CIO?

In keeping with what is outlined in our strategic plan, we are working on two specific aspects, both at central and branch level. First of all, we are focused on further reducing IT costs, be they direct costs (through solutions such as virtualization or the outsourcing of non-core activities) or indirect costs (by using innovation to optimize internal procedures). At the same time, we are working to provide the business with more effective support. Today, the concept of marketing a product in the way it was done until very recently no longer exists in modern banks. Banking institutions must be able to understand the real needs of their clients and provide them with services that best meet their specific needs. In this context, IT must provide specific, reliable and timely data and information that is required by the sales force to fully understand their clients. We are moving from a product-based business model to a relationship-based business model, and IT is being called upon to provide support for the building up and increased quality of this relationship. In this context, dashboards and indicators of profitability play an increasingly important role.

WHAt rOle DO neW teCHnOlOgIeS PlAY In tHe StrAtegIeS ADOPteD BY YOur DePArtMent AnD BY YOur COMPAnY?

In my opinion we need to make a distinction between pure technological innovation, “IT for the purpose of IT”, and innovation for the end user, whether internal or external. Cloud computing, which we are currently evaluating, as well as virtualization, which we are already working on, are examples of innovation within the IT world that are very important but that do not have a direct impact on the end user. Different considerations apply, however, to innovation that has a direct impact on the bank's relationship with its key partners, that is to say its clients and its employees. At BPM, innovation in the bank-client relationship is managed for the entire group by Webank. This internet banking company is dedicated to all areas of online banking and the involvement of the end user, based on a Web 2.0 approach. In this context, an online competition was recently launched, the WePad project, which enables our clients to be directly involved in the definition of specific apps for the iPad.

In my department, we work in the intranet sphere, providing new tools for the benefit of internal staff (employees and agents). In this context, we have developed solutions for our financial advisors that work out in the field, through which they can have real time access to personalized customer information as well as financial market data. This enables them to sell the best product to each individual client.

In the near future, we hope to be even more effective by implementing professional social networking tools for sharing experiences, exchanging views on common problems and for expressing ideas and suggestions on relevant topics. This is a project that we are already working on together with the organizational structure department, and I am convinced that despite the complexity of the issues involved, the results will be very positive.

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"IN EMERgINg MARkETS, OUR gROWTH DEPENDS lARgEly ON REDUCINg OUR TIME TO MARkET."

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SAURO NIClICIO AXA

INCREASINGLy dEMANdING CUSTOMER REqUIREMENTS, EMERGING MARKETS TO CONqUER – ThE IT dEPARTMENT AT AxA IS hELPING TO GUIdE ThE WAy, WITh ThE GOAL OF SUPPORTING GROWTh ANd CONTROLLING ExPENSES. MORE vALUE, LESS COST: ThE INSURANCE BUSINESS IS GOING dIGITAL ANd INNOvATING RAPIdLy.

HOW IS tHe It DePArtMent SuPPOrtIng AXA’S DevelOPMent?

Our first challenge is to help the company redefine its services and its way of interacting, such that they are better aligned with our clients’ changing expectations. With the rapid rise of 2.0 technologies, the virtual economy and globalization, both expectations and behavior have evolved considerably. having become more mature and autonomous, clients are increasingly driving the customer relationship. They are the ones that choose where, when and how. Our IT department is there to support the implementation of a genuinely multichannel, multi-access strategy. For example, we introduced the possibility of using smartphones to notify us of a car accident. The next step is to enable the client to monitor the status and progress of the claim, via smartphone, online, in an agency or by calling our call center. We are also developing a lot of self-service functionality, while trying to simplify the customer experience as much as possible, if necessary by providing tools such as smartphone applications to facilitate complex processes. More generally, our IT department contributes to preparing AxA for the changes driven by the digitalization of the insurance business at all levels: processes, products, collaborative working methods and social networks, whether internal or external.

WHAt Are tHe PrIOrItIeS FOr YOur It DePArtMent In tHIS tIMe OF CHAnge?

They are divided into two categories. Firstly, we have to support growth. In developed markets, this means making better use of the information we have on our clients and products. To put it simply, we’re trying to put in place a strategy of customer intimacy. We’re developing competencies and tools focused on business intelligence, advanced data processing, putting in place event-driven methods, etc. We are determined to improve the segmentation of our customer profiles in order to offer more personalized services.

In emerging markets, our growth depends largely on our time to market. Along with the line of business, the IT department strives to develop operating models that can be rapidly replicated in various countries. The goal is to make a common infrastructure with low operating costs available to everyone, as is the case in Asia.

Are YOu IMPleMentIng A COSt CuttIng StrAtegY?

yes, and that’s our second priority, which is just as important as supporting growth. We are making serious efforts to reduce our total cost base. We’re working on reducing the complexity of our processes, we’re trying to adopt systems that are both simpler but also more robust and less expensive to maintain. This implies reducing the complexity of our data centers and of our network, and the transformation of our operations, in particular by deploying new technologies like cloud computing. We strive to share resources at group level, which means sharing investments, reusing the work of others, and developing solutions on a global scale rather than at the level of an operational entity. Our strategy is to globalize our IT infrastructure, which translates into the harmonization of our IT hardware, and the creation of technical solutions common to all entities and lines of business.

AnD WHAt IS tHe IMPACt OF tHIS On tHe It DePArtMent?

The rationalization effort has influenced the development process of the IT department itself, and the way in which we interact with the lines of business within AxA. We created service centers for testing new applications. We also set up centers of excellence around “building blocks” (such as claims management and hR IT systems) in order to leverage business competencies and encourage partnerships built upon an asset base of reusable applications.

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"lUSITANIA SEgUROS CONTINUES TO BE A COMPANy CHARACTERIzED By INNOvATION, TECHNOlOgy lEADERSHIP, AND THE STEADFAST SUPPORT OF ITS PARTNERS."

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AlExANDRE RAMOSCIO luSItAnIA SegurOS

ALExANdRE RAMOS IS CIO OF LUSITANIA SEGUROS, ThE NON-LIFE INSURER OF ThE MONTEPIO GROUP. hE OvERSEES ThE IT dEPARTMENT, WhICh IS RESPONSIBLE FOR dEvELOPING ANd dEPLOyING ThE BUSINESS INFORMATION SUPPORT SySTEMS ThAT PROvIdE ThE NECESSARy FRAMEWORK FOR OPTIMAL ANd EFFICIENT OPERATIONS.

HOW DOeS YOur It DePArtMent COntrIBute tO tHe grOWtH AnD DevelOPMent OF luSItAnIA'S BuSIneSS?

There is a committee that aligns the annual program of activities with the strategic guidelines issued by the company and takes care of implementation since IT is involved in 95% of the cases. We are also highly focused on all of the solutions related to the business generating activities of our partners, brokers, and service providers, and on improving the services delivered to end customers. In the past three years we have implemented several improvements in this respect, in particular in the area of claims management, which is central to the perception of good service. SInCe tHe CrISIS BegAn In 2008, HAS tHe COMPAnY Seen A DeClIne In ItS r&D, PrODuCtS, MArKetIng Or SAleS OPerAtIOnS? HOW HAS tHIS DeClIne Been MAnIFeSteD?

Essentially, we examine each project from every possible angle, subjecting it to various scenarios under multiple cost-benefit configurations. In the current crisis, Lusitania’s goal is to be as efficient as possible, while spending no more than is necessary. Lusitania has however made big investments and there have been no cuts in research and development. We continue to invest in the latest technologies, for example with Microsoft. We are also getting ready to upgrade to the latest version of our xEO software, a technology we developed in-house, and we’re also migrating to the latest version of the outsystems platform. In other words, we have not in any way halted investment in new solutions.

We have invested heavily in revamping our business continuity plan, by creating a disaster recovery center in Maia. This redundancy will ensure continuous operations, because it is no longer acceptable for information systems to be unavailable or down. Like other companies, we have felt a lot of pressure in this respect, because while marketing can implement a very aggressive and effective campaign, the effort can be completely wasted if our systems are unavailable.

HOW WIll neW teCHnOlOgIeS Be InCOrPOrAteD IntO tHe COMPAnY'S StrAtegY?

Last year, we created a management information system that would allow us to analyze and update the company's profit and loss account on a daily basis. The system has given us immediate access to accurate information to make certain decisions that previously could be made only after the information had been aggregated and processed.

The company also has a strategic plan that is reviewed annually and is aligned with the IT department’s 5-year plan. The plan is organized into two parts – infrastructure and applications – and is adjusted based on the activities for each year. For example, if the emphasis is on outsourcing more services to broker portals, an adjustment is made to the IT strategic plan.

AS CIO, WHAt Are YOur PrIOrItIeS DurIng tHIS turBulent tIMe?

Security and quality! A project related to information security has been approved with a view to obtaining ISO 27001 certification at the end of 2012. As an insurance company, we have to guarantee and prove that we truly are secure. Our other goal is quality control, because increasingly we have to ensure the quality of our deliverables is good.

One might sometimes get the idea that Lusitania is a company that works alone when it comes to IT matters; this is not the case. We work in cooperation with our partners and we depend on them, in particular because there are only 39 people in our IT department, yet our information system supports both Lusitania and N Seguros, with 800 internal users and more than 4,000 brokers.

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"RAPIDly DECODE NEW TECHNOlOgICAl OPPORTUNITIES."

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PASCAl ROCHEDIRECTOR, MuLTIChANNEL AND CLIENT INTERNET IT FnAC

INITIALLy dEdICATEd TO ThE dEvELOPMENT OF E-COMMERCE, ThE MULTIChANNEL ANd CLIENT INTERNET IT dEPARTMENT AT FNAC hAS BEEN dEvELOPING LEAdING EdGE PROjECTS FOR ThE PAST TWO yEARS, ExPLOITING ALL ThE POSSIBILITIES OFFEREd By NEW TEChNOLOGIES.

WHAt IS tHe OrIgIn OF YOur MultICHAnnel AnD ClIent Internet SPeCIAlIzAtIOn?

Originally we were in charge of developing the fnac.com site. One year go we were integrated into the corporate IT department of Fnac, and took charge in addition of the multichannel and customer relationship activities, while continuing to expand our model at an international level. A merchant website is consumer centric by design, and makes use of technologies that enable the collection of information and the improved aggregation thereof in order to develop a 360° vision of the customer. But above all, in addition to traditional BI / CRM / campaign management tools, we are also equipped with tools that allow us to genuinely bring to life the customer relationship by taking advantage of new ways of interacting (devices, social networks, etc.).

HOW Are YOur OBjeCtIveS DIFFerent FrOM tHOSe OF A ClASSIC It DePArtMent?

To a certain extent we have the same objectives as any other IT department – rationalization, quality and cost optimization – with the same focus on responding to the needs of the business. however the extension of our bricks and mortar role into the internet environment means we have to manage a much higher growth rate, and above all, rapid change combined with a high rate of innovation. Decoding the opportunities that new technologies can deliver to the business, and speed of implementation in particular, are probably a higher priority for us than elsewhere; it’s also a question of mindset.

DOeS tHIS gIve rISe tO AnY SPeCIFIC CHAllengeS?

Our primary challenge is still to ensure the coherence of our core model platform, to drive its industrialization while continuously rapidly launching new activities. In fact, we work in several directions. In the past two years, we have thus developed, among others, three sites for subsidiaries abroad (we’ll launch three in the next twelve months), a marketplace that enables us to complement our own web offering with that of other merchants, we’ve outsourced operations, launched our multichannel activities and put in place a digital offering from Fnac: fnacbook.

DO YOu IntenD tO MAKe MASSIve uSe OF ClOuD COMPutIng?

For the next twelve months, our priority will be to organize a transition to the cloud which responds best to our need for elasticity on the web. Basically, we need to be able to satisfy peaks in demand (at the end of the year, or when the iPad was launched, for instance) by having instant access to additional capacity on a pay as you go basis. But this will have an impact on our entire way of working, as well as on the financial management of IT. We are considering it seriously and are currently carrying out some experiments with small peripheral projects.

WHAt OtHer tHIngS WIll YOu Be WOrKIng On In tHe YeArS AHeAD?

We need to better integrate the social networks in order to gather information and amplify the interaction with customers beyond the Fnac ecosystem. We need to have a sound understanding of the functionalities they make available to us and be ingenious in exploiting them. Links have to be created, platforms connected, etc. Basically, there’s an entirely new capillarity and new customer experiences to be developed.

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"ANAlyTICS AlSO HAS HUgE POTENTIAl AND IS ONE OF THE BIggEST OPPORTUNITIES OF THE COMINg DECADE."

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BRyAN WOlFCIO CHIlDren'S HOSPItAl OF PHIlADelPHIA

HOW WIll HeAltHCAre reFOrM In tHe u.S. IMPACt YOur HOSPItAl?

We are not sure yet as we don't know what will happen in Congress. We haven't decided whether to apply for the status of an Accountable Care Organization because it is still unclear what that means.

In any event, we are anticipating that we will receive less funding from the Federal budget and we need to be ready for cuts. We also expect that we will receive less dollars in reimbursements.

HOW Are YOu PrePArIng FOr BuDget CutS?

I have pushed to streamline our project management office and am hoping for a 10% gain in efficiency which could translate into millions of dollars of savings. I would also eventually like to implement a lean project aimed at eliminating wasteful steps in our processes.

HAve COSt CutS Put A BrAKe On YOur PlAnS FOr neW teCHnOlOgY?

No, we are in the middle of an ambitious information technology plan to implement fully electronic health records following the decision to have an integrated system five years ago.

We have around 500 beds in the hospital and 1.3 million outpatients every year. We are like a mini-health system focused on paediatrics. We want to make sure that we have the same information on the system when a patient goes to our care units or has tests done in the laboratory, for example. Before, there was a mixture of electronic and paper-based records.

In January, we finished the implementation of the Epic system for services such as radiology and oncology and for most of our specialized services. We still have an ambitious road map over the next three to seven years looking to replace the system in other areas such as the operating room and the cardiac center.

WHAt OtHer PlAnS DO YOu HAve tO IMPleMent neW teCHnOlOgY?

We are rolling out an e-health strategy that will allow physicians outside the hospital to use our tools to follow their patients. We do not want to be isolated. We want to interact with other physicians in private practices by making our data accessible. The physicians would pay a fee to have access to our applications which would also represent a revenue opportunity for us.

Parents will also be able to access the e-health system and see their child's laboratory results or their next appointment, for example.

We have already implemented our e-health strategy in a couple of practices and hope to roll it out in all 43 private practices we work with by the end of next year.

WHAt OPPOrtunItIeS DO YOu See FOr YOur DePArtMent tO COntrIBute tO tHe grOWtH OF tHe HOSPItAl?

Our biggest opportunity is to go after funding from the government under the health Information and Technology Act. under this act, the government will grant hospitals millions of dollars if physicians are using electronic health records in a meaningful way to get better outcomes when treating patients. That is something we are pursuing and we have to apply for that funding within the next 12 months. We would then have three years to show that we have everything in place. We are pretty confident because we made the decision to have an integrated electronic platform back in 2005.

Analytics also has huge potential and is one of the biggest opportunities of the coming decade. We are sitting on an incredible trove of data that we can mine and analyze to better understand our patients. We can use the data to research diseases and show that we are getting better outcomes for children. We have built the infrastructure, the data warehouse and the tools that allow us to extract the data and analyze it. however, it will be a few years work before we can use the data efficiently.

Social networks also represent an enormous opportunity for us to showcase who we are. As recently as 15 months ago, the hospital blocked social network sites such as Facebook. We went to the steering committee and argued that we should allow access. That opened the floodgates. Many patients and staff now interact with each other through social networks and our marketing department has taken over management of the hospital's Facebook page. Organizations have to adapt to change.

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SUPPORTINg THE lINE OF BUSINESSAdapting the organization and the technology infrastructure. yes – while focusing on business priorities. Large among these are increased agility and speed, along with the deployment of mobile technologies that promote collaboration anytime, anywhere. A new approach to the traditional relationship between the line of business and support functions.

"OUR PRIORITy IS TO PROvIDE THECOMPANy WITH WIDE-RANgINgTOOlS, ADEqUATE FOR OUR FUTURE NEEDS, AT A REASONABlE COST."

AlBert AlMAjAnO CIOKern Pharma

"BODIES FOR IT gOvERNANCE ATAll lEvElS OF THE BUSINESS ."

FrAnçOIS MeSSAgerIT and Organization DirectorCelio*

"EMPOWER OUR END USERS By gIvINg THEM THE TOOlS TO FIND AND PROCESS INFORMATION THEMSElvES."

FrAnK De SAerCIO FPS economy

"COMBININg OPENNESSAND SECURITy: THAT'S THE CHAllENgE OF 2.0!"

rICHArD vAlentIDeputy Managing Director and CIOgenerali France

"yOU HAvE TO FIND THE RIgHTBAlANCE BETWEEN qUAlITyAND EFFICIENCy SO THAT ITDEvElOPMENT DOES NOT DIvERgE FROM BUSINESS DEvElOPMENT."

FIlIPPO CenSICIOCris Conf (Pinko)

"UNDERSTANDINg NEEDSBEFORE THE lINE OFBUSINESS ExPRESSES THEM."

Anne rOMAgnOlIChief IT and Facilities OfficerDelta lloyd life

"IT AND BUSINESS NEED TO DEvElOP A COMMON UNDERSTANDINg"

SABIne leHnerCIOWiener Stadtwerke

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"WE HAvE AlMOST DOUBlED OUR PROjECT BUDgET COMPARED TO 2010."

Peer StAuSKeInformation Systems & OrganizationMAn truck & Bus

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"OUR PRIORITy IS TO PROvIDE THE COMPANy WITH WIDE-RANgINg TOOlS, ADEqUATE FOR OUR FUTURE NEEDS, AT A REASONABlE COST."

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AlBERT AlMAjANOCIO Kern PHArMA

KERN PhARMA IS A PhARMACEUTICAL ORGANIzATION ThAT BELONGS TO ThE INdUKERN GROUP. ThANKS TO ThE ACqUISITION OF ThE ROChE GROUP, ThE INdUKERN GROUP CONSOLIdATEd ITS STRATEGy IN ThE AREA OF hUMAN hEALTh. KERN PhARMA IS ACTIvE IN TWO MAIN LINES OF BUSINESS: dEvELOPING, MANUFACTURING, ANd MARKETING PhARMACEUTICAL PROdUCTS UNdER ThE KERN BRANd, ANd PROvIdING SERvICES TO ThIRd PARTIES (dEvELOPMENT, CONTRACT MANUFACTURING ANd ChEMICAL PROdUCTION).

In YOur COMPAnY, HOW DOeS tHe It DePArtMent SuPPOrt BuSIneSS grOWtH?

The IT department’s activities center on fulfilling the needs and accelerating the processes of all of the company's departments. This is achieved by automating key processes and simplifying already established processes, which in turn anticipates the end client's needs and optimizes internal company management. In doing so, we can be more agile, responding to business needs and providing support to the rest of the organization more quickly. In addition, the IT department strives to select tools and technologies that can better support business development - mobility, for instance, which is one of the most important technologies in society today.

SInCe tHe StArt OF tHe CrISIS, BuSIneSS CYCleS HAve Been SHOrteneD (r&D, PrODuCtIOn, MArKetIng, SAleS, etC.). HOW HAS YOur DePArtMent eXPerIenCeD tHIS ACCelerAtIOn?

This acceleration has forced us to focus on key business elements. Project selection is a much more exhaustive process, and the number of projects has been decreased in order to undertake only those that are most strategic. Planning that used to be carried out for the entire year is now reviewed, justified and approved before beginning each project. All of these efforts center on the areas of value creation, prioritizing projects that are key to the company's strategy. Project time frames have been reduced, and it is still equally important to meet the allocated budget as it is to meet to the established deadlines.

WHAt rOle DO neW teCHnOlOgIeS PlAY In YOur BuSIneSS StrAtegY?

The task of the CIO is to select from among an ever-increasing variety of technologies those that can help the organization combine technology and business. kern Pharma has been characterized from the beginning by its rapid growth, which has obliged us in the IT department to select not only those technologies that can add value to the business (ROI), but also those technologies that allow us to be prepared for future challenges we may face. Technologies such as mobility, virtualization and cloud computing have been an integral part of our organizational DNA for some time. When implementing these changes, we have always sought the necessary technology at a reasonable cost, while constantly keeping in mind the ideal time for its adaptation. The company has to know when it is prepared to take full advantage of a specific technology.

AS CIO, WHAt Are YOur PrIOrItIeS In tHe Current eCOnOMIC COnteXt?

To provide kern Pharma with tools that are wide-ranging and adequate not only for today's challenges, but also for the future needs of the company, at a reasonable cost. In doing so, we achieve a greater return on investment for the tools selected, allowing information systems to not be a hindrance, but rather a key element for business development.

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"yOU HAvE TO FIND THE RIgHT BAlANCE BETWEEN qUAlITy AND EFFICIENCy SO THAT IT DEvElOPMENT DOES NOT DIvERgE FROM BUSINESS DEvElOPMENT."

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FIlIPPO CENSICIO CrIS COnF (PInKO)

FOR PINKO, ThE INTERNATIONALLy RENOWNEd BRANd NAME UNdER WhICh ThE ORGANIzATION CRIS CONF SELLS ITS CLOThING, TURNING ThE ECONOMIC CRISIS INTO AN OPPORTUNITy WAS NOT MERELy dECLARATION OF INTENT, BUT RAThER A SUCCESSFUL BUSINESS STRATEGy FOR dEvELOPING ThE BUSINESS WITh ThE hELP OF ThE IT dEPARTMENT.

HOW DOeS tHe It DePArtMent SuPPOrt tHe BuSIneSS tO FOSter reCOverY AnD grOWtH?

Management addressed the crisis by turning it into an opportunity for growth by understanding the reasons behind it. This allowed us to reformulate both our brand development strategy as well as the way we communicate with our customers, whose current attitudes and judgment criteria are different from those of the past. This change does not begin and end with the economic crisis, and although our company has been spared any significant negative impact, our awareness of current changes has induced us to rethink some of our business strategies. The IT department's immediate reaction was to change its program. We have undertaken many initiatives with the objective of fostering integration between different departments within the company. For example, we have enhanced our multimedia communication systems, we have designed point of sale projects aimed at establishing closer interaction between the company and its customers, we have launched an initiative to render corporate data more accessible and facilitate the rapid development of applications that provide support to off-site personnel, and we have also exported our central systems to other group companies.

tHe eCOnOMIC CrISIS HAS ACCelerAteD ACtIvItY CYCleS In All MAjOr BuSIneSS PrOCeSSeS (r&D, PrODuCtIOn, MArKetIng, SAleS, etC.). HOW DID YOur DePArtMent reSPOnD tO tHIS?

By its very nature, the IT department is compelled to contend with reduced cycle times. The completion of projects to "production quality", i.e. good enough to ensure stability, usability and integration with the rest of the application architecture, is an objective that is not compatible with the demands of a frenzied market. you have to find the right balance between quality and efficiency so that IT development does not diverge from business development. This is achieved by a certain degree of agility in project management, and by being open to a non-fundamentalist approach that can live with, at least temporarily, the idea that systems have to be complete and perfect right from the very beginning. This has now become a necessity given the chronic lack of time available to finalize projects to a mature stage of completion. The negative effects resulting from this imperfect approach are remedied in a second stage by going through a system re-engineering process that is carried out after the software has been released in production, when there is more time available.

WHAt rOle DO neW teCHnOlOgIeS PlAY In tHe StrAtegIeS ADOPteD BY YOur DePArtMent AnD BY YOur COMPAnY?

A significant role has been assigned to technology, given that today technology defines the system of communication. Within the IT department, we have recently added a new line management function dedicated to "Innovation, Research & Development", whose objective is to study new technologies and to identify the opportunities they hold. The combination of new products and new applications fronts points in the direction of greater customer involvement. Today, it is increasingly necessary to constantly supply the customer with information and suggestions.

AS CIO, WHAt Are YOur PrIOrItIeS In tHe Current eCOnOMIC COnteXt?

The IT department must be in line with the rest of the company. Should it ever happen that the company perceives our department as a mere supplier of IT services, albeit professionally delivered, then we will have failed in our endeavors. What should happen on the other hand is that the various departments of the company should consider IT an essential element to leverage business development. This objective can be achieved through continuous training, the application of a methodology that is rigorous but at the same time capable of adapting to changing needs, the periodic review of the company and finally, the flexibility of the people working in the department.

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"EMPOWER OUR END USERS By gIvINg THEM THE TOOlS TO FIND AND PROCESS INFORMATION THEMSElvES."

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FRANk DE SAERCIOFPS eCOnOMY

FPS (FEdERAL PUBLIC SERvICE) ECONOMy hAS ACCESS TO AN ENORMOUS TROvE OF dATA, WhICh INTERNAL ANd ExTERNAL ENd USERS dISTILL INTO INFORMATION USEFUL FOR POLICy MAKING. BUT dEMANd IS GROWING, ANd RESOURCES ARE LIMITEd. A NEW APPROACh IS dESIGNEd TO ENABLE USERS TO REqUEST ANd ANALyzE INFORMATION ThEMSELvES – A WIN-WIN SITUATION.

WHAt IS tHe greAteSt CHAllenge tHAt YOu’re FACIng?

To do more with less, without a doubt. As a public sector organization, we create added value by providing quality services to our external clients, namely citizens and businesses. A typical example is the recent project for the automation of the allocation of social tariffs for electricity and gas. By linking the government and supplier databases, we can now automatically allocate the social tariffs to those families that meet the corresponding requirements. Previously a lot of administrative effort was needed. We also try to limit the administrative burden for business as much as possible, for example by automating all kinds of mandatory surveys. If they can be filled in electronically, that means a great deal of time and money can be saved. As operator of the Crossroads Bank for Enterprises, we are increasingly called up to provide data related to businesses. We’re faced with continuously increasing expectations, and everything has to be done more quickly.

SO, tHAt’S tHe ‘MOre’. WHAt ABOut tHe ‘leSS’?

At the same time we have to provide services to all those internal and external clients with a limited budget and fewer staff. People that retire can only be partially replaced. In addition, it’s not simple to find the right people – primarily with an IT background – in the labor market.

IS tHAt CHAllenge reSultIng In DIFFerent WAYS OF WOrKIng?

Most definitely. In the past, mainly internal clients came to the IT department with requests for information. It was our task to distil the information as quickly and efficiently as possible out of a mass of data, and then to process it. Now we’re in the middle of a shift to empowering our end users. In other words, we make sure that our staff have the necessary competencies, tools and search engines so that they can find and process information themselves. In that respect, it’s of course important that all information is stored in central data warehouses. It’s also essential that we safeguard the confidentiality and accuracy of the data.

DOeS tHIS neW APPrOACH HAve BeneFItS FOr CItIzenS AnD BuSIneSSeS?

That’s exactly why we want to use the internet as much as possible. Within this ‘self-service model’, citizens and businesses can generate their own statistics, for example in terms of population data, business start-ups or bankruptcies. In future we’ll be able to go a step further, by allowing the private sector to develop applications for information that we will make available. Take for instance the data in the Crossroads Bank for Enterprises. Thanks to such an application, a recently graduated physiotherapist would easily be able to determine in which region the ratio ‘physiotherapists per inhabitant’ is lowest. So this approach can certainly lead to win-win situations, in which both the users and the providers of the applications benefit. Many organizations are already interested. This way of working also fits perfectly with the philosophy of open government, open data and open services.

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"IT AND BUSINESS NEED TO DEvElOP A COMMON UNDERSTANDINg."

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SABINE lEHNERCIO WIener StADtWerKe

WIENER STAdTWERKE (ThE vIENNA PUBLIC UTILITIES COMPANy), IS ThE LARGEST INFRASTRUCTURE SERvICE PROvIdER IN AUSTRIA, ANd BRINGS TOGEThER ThREE dEPARTMENTS: ENERGy, TRAFFIC, ANd BURIALS/CEMETERIES. ITS IT dEPARTMENT FOCUSES ON TEChNICAL INNOvATION ANd ORGANIzATIONAL MEASURES IN ORdER TO MEET ThE EvER-ChANGING dEMANdS ON IT.

WHAt CHAllengeS Are YOu PerSOnAllY, AnD CIOS In generAl, FACIng?

For Wiener Stadtwerke, as well as all the other energy providers in the sector, the increasing flexibility of the IT landscape plays a key role. New laws, changing market demands, and technological innovation require a high level of adaptability from companies and their IT organizations. however, not all current IT systems are sufficiently flexible to respond to the demand for changes in the short to medium term. Another critical matter is increasing efficiency in all areas. We need to reduce costs wherever it makes sense to minimize them. We also need to create structures for assimilating business requirements early on, so we’re able to react to them quickly. Last but not least, in times when the business is demanding more and more from the IT department, innovation is a critical item on the agenda.

WHAt ACtIOnS Are YOu tAKIng tO reSPOnD tO tHe DeMAnD FOr FleXIBIlItY, even tHOugH YOu tHInK StAnDArD SOFtWAre StIll HAS WeAKneSSeS In tHIS AreA?

There are two basic approaches to take. On the one hand, we have technical questions, such as architecture and application planning that is as sustainable as possible. key areas of focus here are service oriented architecture and business process management. On the other hand, we try to smooth this approach with complementary organizational measures. IT and business need to develop a common understanding of the goals to be achieved, at an early stage. We do this with the support of Steering Boards, in which IT and the line of business are equally represented and which benefit from a high level of attention from top management, as well as with an appropriate organizational structure within IT.

HOW DO YOu MAKe Sure YOur It DePArtMent reMAInS InnOvAtIve AnD neW teCHnOlOgIeS Are IntegrAteD IntO ItS ACtIvItIeS?

Initially several employees have taken on this task. Although they cannot work exclusively on it, they do spend part of their time dedicating themselves to the matter of innovation. For example, they are exploring the possibilities of what the workplace of the future could look like for Wiener Stadtwerke staff, and how we will have to handle the increasing

demands for mobility coming from both employees and customers. Of course, we’re also spending time on industry specific challenges in the energy sector, such as Smart Grid and Smart Metering, and the demands they will place on the IT architecture.

BuSIneSS AnD It InnOvAtIOn CYCleS Are gettIng SHOrter AnD SHOrter. HOW IS WIener StADtWerKe reSPOnDIng tO tHIS ACCelerAtIOn?

Firstly, we’re fully exploiting the current technical possibilities; secondly, we’re setting up efficient decision making processes. We want to bring business and IT together as quickly as possible. Of course, it also helps that we monitor technological innovations closely and adopt them for ourselves whenever we see a corresponding need.

HOW DO YOu HAnDle neW trenDS AnD teCHnOlOgIeS, AnD HOW DO YOu IntegrAte tHeM IntO YOur It StrAtegY?

We’re currently looking at the question of how to deal with the exploding volumes of data that we will have to handle in future. Business intelligence, mobility, and Web 2.0 strategies are also currently critical topics. Cloud computing is of course a widely discussed subject, but it must be investigated more closely within the context of our business requirements before practical implementation is possible.

WHAt PrIOrItIeS Are YOu SettIng FOr tHe neXt 12 tO 18 MOntHS?

We’re going to review all of our IT structures and re-design the organizational processes within the company, in order to bring IT closer to the business. The boundary and increasing convergence between information technology and operations technology is an exciting topic, particularly in our industry. We’ll also continue to keep a sharp eye on costs.

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"UNDERSTANDINg NEEDS BEFORE THE lINE OF BUSINESS ExPRESSES THEM."

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ANNE ROMAgNOlIChIEF IT AND FACILITIES OFFICER DeltA llOYD lIFe

WITh 30% GROWTh PER yEAR, ThE SUBSIdIARy OF ThE dELTA LLOyd GROUP IS BOOKING STRONG RESULTS IN ThE BELGIAN LIFE INSURANCE MARKET. ThE IT dEPARTMENT SUPPORTS ThE ORGANIzATION’S dEvELOPMENT By WAy OF FAR-REAChING ANTICIPATION OF ThE NEEdS OF ThE BUSINESS, WhILE REMAINING FOCUSEd ON LONG-TERM REqUIREMENTS.

HOW HAve YOu eXPerIenCeD tHe ACCelerAtIOn In DeCISIOn MAKIng CYCleS?

It’s increasingly difficult for the business to wait for IT projects to be completed. Business needs evolve rapidly, often while we’re formulating a response. Meeting all demands at short notice is a real challenge. It makes it more problematic for the company to respond to future challenges, and for us to control our costs.

HOW CAn YOu AvOID tHAt PItFAll?

you have to be able to say no to certain requests. That’s what happens here; since I’m on the executive committee, I take part in important decisions and have a strong enough position that I can challenge the business case prior to all development work. The best safeguard however is our ability to anticipate the needs of the line of business. To avoid tunnel vision, we have to understand and anticipate their needs by helping the business to express them in a precise manner.

HOW DO YOu DO tHAt?

We have reinforced the existing bridges between IT competencies and business. In 2009, we put in place a project competency pool grouping roughly 20 people together: business analysts, program managers and project leaders. Multi-skilled experts that are permanently in contact with the business and that jointly manage projects with them. This proximity gives us a very early and detailed awareness of business needs; in concrete terms, that improves our understanding and the solutions we deliver.

IS It POSSIBle tO gO FurtHer?

In the last 15 years IT has considerably expanded its competencies, going from infrastructure management to application management, to finally become deeply involved in the business and take ownership of their challenges. Now the line of business needs to become interested in our projects, in order to further improve communication and express every need while taking our constraints more into account. This would make it possible among others to reduce the frustration within the business caused by their difficulty in understanding our technology and architecture constraints.

CAn neW teCHnOlOgIeS HelP BOOSt AgIlItY?

In recent years, we have above all used them to improve productivity, in particular by increasing the mobility of staff and the connectivity of our business with the outside world. For example, every employee with a laptop can now set themselves up anywhere on site and work or make presentations on large screens. We’re currently building a platform that will enable us to open up the network in a secure manner for iPads and iPhones, as we’ve already done for Blackberries. As for cloud computing applications, currently that’s more of a challenge for our infrastructure provider, who is also under cost pressure.

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"BODIES FOR IT gOvERNANCE AT All lEvElS OF THE BUSINESS."

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FRANçOIS MESSAgERIT AND ORGANIzATION DIRECTOR CelIO*

ThE REAdy-TO-WEAR CLOThING SECTOR hAS FELT ThE ACCELERATION OF dECISION MAKING CyCLES EvEN MORE STRONGLy ThAN OThERS. TO IMPROvE ITS ABILITy TO ANTICIPATE, ThE IT dEPARTMENT AT CELIO* IS MOvING CLOSER TO ThE BUSINESS – ANd TO TOP MANAGEMENT.

In WHICH COnteXt IS tHe It DePArtMent evOlvIng WItHIn CelIO*?

Over the long term, celio* is a business with strong growth. We opened one store in 1986, we had about 300 in 2006, and today there are over 1,000 stores and a strong international presence! In the same period, the proportion of labor hours that were automated has risen from 0.5% to 60% and new confidentiality constraints have appeared. Now the matters the IT department is working on involve all levels of the business.

AnD WHAt HAve Been tHe COnSequenCeS OF tHAt On YOur rOle?

Our role is now less about hardware and software, and more about the way in which the business is organized. The question has become: which process needs to be carried out via the information systems, and how? And this question is being raised in a general context of accelerated decision making cycles which are incompatible with the timelines related to IT development and the transformation of business models. All this is amplified further in an environment such as the clothing sector which is characterized by extremely short reaction times...

HOW CAn tHIS COntrADICtIOn Be reSOlveD?

By anticipating more and more. To do this, the IT department must be in increasingly close contact with the line of business, and be able to talk as equals with line management. Bodies for IT governance need to be set up at all levels of the business, and projects have to be set in motion that will bring people closer together, and create relationships based on trust. The first condition for success is of course that IT functions well, but that is not enough. you also need to have a vision of the business that is sufficiently innovative to find solutions without becoming caught up in overly specific user needs, and you need to be able to guarantee a certain level of standardization.

AnD WHAt ABOut tHe lOng-terM vISIOn?

In recent years, we have made efforts to increase our proximity to top management. In 2009 the crisis forced us to concentrate on the highly operational projects underway, which then also gave us the time to think after the crisis. Our discussions with management led to them accepting to engage in genuine risk management with us, and to draw up a roadmap clearly indicating the activities the information system will have to encompass in the years ahead.

WHAt Are tHe BrOAD OutlIneS OF tHe rOADMAP?

We would like grow from an international company into a multinational business, but at the same time we want to cover certain risks we are no longer willing to live with. We have also decided to migrate several very specific matters unrelated to our intellectual property into the cloud, in order to benefit from the lower costs associated with these rapidly developing technologies, and to be able to buy processing power in function of the needs of certain parts of the business.

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"WE HAvE AlMOST DOUBlED OUR PROjECT BUDgET COMPARED TO 2010."

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PEER STAUSkEINFORMATION SySTEMS & ORGANIzATION MAn truCK & BuS

MAN TRUCK & BUS IS CURRENTLy UNdERGOING MAjOR STRATEGIC ChANGES, WhICh NATURALLy AFFECT IT. IN AN INTERvIEW WITh CSC, CIO PEER STAUSKE dESCRIBES ThE ROLE ThAT IT PLAyS IN ThIS ChANGE PROCESS, ANd WhAT ChALLENGES hE SEES FOR ThE FUTURE.

WHAt CHAllengeS DO It MAnAgerS FACe tODAY, AnD WHAt CHAllengeS Are YOu PerSOnAllY FACIng nOW?

I am currently most involved with business processes and models, and the automation solutions that arise from them. This means an increasing involvement with process development itself. In the classical functionally-oriented corporate structure, there is generally no entity in charge of moderation and escalation between processes and functions, which is required most of all when processes become cross-functional. At MAN, the IT department has taken on this role to a greater and greater extent in recent years. We are able to create good solutions only if we understand the technical area on the one hand, but also consider the overall process on the other. This subject has become particularly relevant and urgent due to two events. In 2009, we purchased a vW subsidiary that produces commercial vehicles, and integrated it into the corporation as MAN Latin America. We’re also in intense discussions with colleagues from our principal shareholder vW about what the business model of the future will look like, in order to be able to decide quickly which automation solutions will be applied.

WHAt CHAllengeS DID YOu HAve tO OverCOMe In tHe CrISIS OF 2009-2010?

From mid-2008 to 2010, we have mainly been working on operational efficiency, and have only implemented the most truly necessary projects. This means that we now have to catch up. In 2011, our total IT budget is thus 20% to 25% greater than in 2010, simply in order to implement the projects that had to be put off during the crisis.

WHAt Are YOu DOIng In OrDer tO SuPPOrt tHe Current grOWtH OF YOur COMPAnY? HOW IS It HelPIng MAn SWItCH FrOM DeFenSe tO OFFenSe?

The increased budget is flowing primarily to projects, and to our innovative vehicles. Operating expenses are actually being reduced. In this area, we are benefiting from multi-year supplier contracts that include annual cost reductions. This has almost doubled our project budget compared to 2010.

WHAt PrOjeCtS Are tHOSe?

Business intelligence, for example, is one focal point. This has to do with improving the classical reporting functions, as well as BI projects that address vehicle quality. We can utilize our data much better in this area.

regArDIng neW teCHnOlOgIeS: WHICH trenDS AnD teCHnOlOgIeS DO YOu COnSIDer IMPOrtAnt, AnD WHAt StrAtegIeS Are YOu PurSuIng tO IntegrAte tHeM In YOur It PrOgrAM?

Fundamentally, we are machine manufacturers in the capital goods industry, so we adhere to the principle of "IT follows business." My core competency is in processes and their design, and in innovation to a lesser extent. If we need innovative technologies in order to optimally support processes, then we use them where possible, but innovation is not the primary goal of our IT program.

In YOur OPInIOn, HAve BuSIneSS AnD InnOvAtIOn CYCleS BeCOMe SHOrter SInCe tHe CrISIS, AnD HOW Are YOu DeAlIng WItH tHIS?

The crisis has now been behind us for only about a year. In that time, I have not been able to accelerate the business and innovation cycles in IT. At the moment, we’re still working on catching up on things we postponed.

WIll YOu Be SPenDIng MOre tIMe On tHe MeDIAtIOn rOle BetWeen PrOCeSS AnD FunCtIOn tHAn PrevIOuSlY? AnD WIll OtHer CIOs AlSO neeD tO BeCOMe FAMIlIAr WItH tHIS rOle?

In my view, yes. The classical technology role is dying out. Of course, I still need to work in close cooperation with the specialists. A CIO as only the director of information systems doesn’t make sense; at the heart of the role should be an entrepreneurial responsibility for designing business processes.

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"COMBININg OPENNESS AND SECURITy: THAT’S THE CHAllENgE OF 2.0!"

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RICHARD vAlENTIDEPuTy MANAGING DIRECTOR AND CIO generAlI FrAnCe

ORGANIC ANd ACqUISITIvE GROWTh hAvE MAdE GENERALI INTO ThE SECONd LARGEST GENERAL INSURER IN ThE FRENCh MARKET. AFTER hAvING SET UP A SINGLE IT SySTEM FOR ThE ENTIRE GROUP, ThE IT dEPARTMENT dEvELOPEd AGILE METhOdS WITh ONE PRIORITy: FIRMLy ANChORING IT IN ThE LINE OF BUSINESS.

2011 IS Set tO Be A YeAr In WHICH InveStMentS In It SYSteMS BOunCe BACK. WIll tHIS AlSO Be tHe CASe FOr generAlI?

Generali is in something of a specific context. After years of acquisitive growth, the company set in motion an enormous transformation project in 2006. It has resulted in us cutting the number of major applications in half, and creating two external data centers along with a leading edge business continuity plan. This represents an investment of several million euro, but we’ve been able to maintain our efficiency: our ratio of IT costs to premium revenues is still the lowest in the sector! Today this project can be considered completed, so we can now reallocate these budgets to projects more directly oriented toward the business.

HOW WOulD YOu DeFIne tHe relAtIOnSHIP WItH tHe lIne OF BuSIneSS?

We’re focused on value creation, which is achieved in three ways: the development of applications, and innovation of course, but also governance, to firmly anchor IT in the line of business. We have to work hand in hand with the business, speak the same language as they do, and become involved with them in genuine re-engineering projects.

WHAt Are tHe KeY SuCCeSS FACtOrS In terMS OF InnOvAtIOn? WHAt AreAS Are YOu WOrKIng On?

Innovation isn’t just about ideas. It’s also – very prosaically – about governance and processes, to define upstream the areas to be explored and to share ideas with the business. To ensure that innovation isn’t only dictated by technology, we have developed a process driven by the marketing department. We have also created an internal innovation laboratory – a place to demonstrate what can be done with technology and to exchange ideas with the business, to think about tomorrow’s innovations in concrete terms.

Recently we were the first insurance company to develop an iPhone application for portfolio management, which generated a lot of buzz in the market. In addition, we’re doing a lot of work on mobile technologies, cloud computing, and also the development of increasingly agile methods.

tHere HAS Been A lOt OF tAlK ABOut tHe ACCelerAtIOn OF CYCleS In BuSIneSS…

It’s true. In uncertain times, it’s important to break projects down into phases with deadlines of 3 or 4 months. Which again implies working closely with the business on a daily basis!

Accelerating cycles also means enabling the operational staff to respond rapidly to clients by giving them real time information, accessible 24/7. Only a few years ago we were happy with applications that had an uptime of 99%. Today that’s no longer enough…

HAve YOu Put In PlACe COllABOrAtIve tOOlS?

We already have web conference tools. We’ve also made progress in the area of social media: within the IT department, a sort of private LinkedIn enables us to exchange thoughts about innovations, and we’re considering developing virtual communities for our people.

In general, the trend is to make systems more open to enable staff to work from home and interact – but also to stay in touch with clients. All this with the highest level of security, of course. Combining openness and security, that’s the challenge of 2.0!

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4CIO BAROMETER 2011

INSIgHTS

A TIME OFOPPORTUNITIES?

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Trends and Outlook within

IT organizationsreDuCIng COSt AnD OPtIMIzIng PrOCeSSeS COntInue tO Be PrIMArY BuSIneSS FOCuSeS. COllABOrAtIOn AnD InFOrMAtIOn SHArIng HAve eMergeD AS IMPOrtAnt BuSIneSS InItIAtIveS. SuStAInABle COMPetItIve ADvAntAge lIeS In InnOvAtIOn AnD FleXIBIlItY. tHe rISe OF generAtIOn Y IS AMPlIFYIng tHIS trenD, WHICH IS PArtICulArlY ADePt At utIlIzIng COllABOrAtIve teCHnOlOgIeS AnD SOCIAl MeDIA.

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WeB 2.0 SOlutIOnS AnD MOBIle teCHnOlOgY Are enABlIng COMPAnIeS AnD gOvernMent AgenCIeS tO trAnSFOrM tHeIr netWOrKS IntO ACtIve CuStOMer, SuPPlIer AnD eMPlOYee eCOSYSteMS WItH tHe gOAl OF Better unDerStAnDIng tHeIr CuStOMerS' neeDS AnD MOre rAPIDlY reSPOnDIng.

Consumer buying cycles continue their acceleration to fever pitch levels driving the need for greatly accelerated solution delivery. All business cycles are shortening: ideation, engineering, production, marketing and sales. CIOs are under pressure to enable this acceleration, forcing reduced project duration and requiring quicker business results.

To competitively respond to the rising tide of customer expectations, companies are driven to implementing new ways of doing business with their customers, suppliers and employees. Consumers are the focal point of innovation; and the prevalence and effectiveness of collaborative tools are becoming key enablers of this business transformation.

Collaboration and sustainable agility are emerging as the new watch words for the new business transformation renaissance. This cultural shift to business collaboration is enabled by corporate social networks, which are in turn made possible by a new a new generation of technologies and a broad base of tech savvy internal and external users.

The collaborative revolution is divided into three main aspects:Customer relationships, employee relationships, and relationships between the company/government agency and its customers.

COllABOrAtIOn BetWeen CuStOMerS

Web 2.0 technologies launched a social/cultural evolution where internet users create content, self-organize communities, and promote their personal profile. Businesses are capitalizing on this social/cultural evolution and are embedding the social dimension in their marketing strategies, including social marketing (development of products and services), social commerce (distribution) and social CRM (interaction with customers). Technological advances also give rise to unforeseen uses and benefits. The social network is now at

the heart of the sales channel and allows customers to share their purchasing experience with their community. Thanks to social media, consumers exchange their opinions on the products and services they buy. Thus, information technologies enable individuals to promote ideas and perceptions and forge relationships as a new collaborative form of consumption emerges.

Businesses have heightened awareness of the power of social media as a way to form communities, share points of view, innovate, and promote new products or services. Social media helps to open up to the outside world and improve collaboration, expression and mobility. Informal links between individuals act as a platform to create value. In addition, the presence of brands in social media can yield considerable benefits in terms of image.

The value of internet users in social media cannot be overlooked. The web facilitates service-oriented logic and interaction traceability enabling businesses to collect valuable information based on interchanges between customers. The implementation of this exchange-based relationship is a prerequisite for collaboration, the ultimate purpose being the joint creation of value.

Leading brands such as Dell (IdeaStorm), Nike (Nike+) and Procter & Gamble (Being Girl) encourage their customers to exchange regularly in their community platforms. Orange Business Services relies on a network of influential bloggers to test their new products.

Despite market enthusiasm for social media, Gartner* believes that by 2015, 80% of businesses still will fail to have a coherent grasp of the information circulating in social media, even though these networks constitute a major source of innovation.

CIO BAROMETER2011

insighTs

ThE uPhEAvALS CAuSED By ThE ECONOMIC CRISIS AND ThE GLOBALIzATION OF ECONOMIC PhENOMENA ARE FORCING ORGANIzATIONS TO BECOME MORE AGILE. BuSINESS LEADERS ARE TRyING TO ANTICIPATE RISkS AND QuICkLy ADAPT TO NEW FINANCIAL, ECONOMIC, POLITICAL AND TEChNOLOGICAL ChALLENGES.

* Source: Gartner Identifies Seven Major Projects CIOs Should Consider During the Next Three Years (http://blogs.gartner.com/symposium-live/2010/11/09/)

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COllABOrAtIOn BetWeen eMPlOYeeS

Collaborative technologies enable business leaders and government to better harness collective employee intelligence and talent. Social media, smart phones, tablet PCs, roaming internet connections, etc., help improve the performance, creativity and collaboration of employees, wherever they may be. These affordable tools make it possible to increase the involvement of staff and all stakeholders committed to the design, production and distribution of products and services. They help maximize the efficiency of the group involved in a project, even when they are in disparate locations and time zones.

Far beyond electronic mail, collaborative workspaces facilitate the sharing of files and collective work on the same project. Above all, social collaboration becoming a business revolution. It facilitates the sourcing of experts, sharing of knowledge and preservation of know-how, while accelerating the resolution of incidents and increasing interactivity with customers. Collaborative business platforms encourage their members to expand their internal network and create links outside the scope of projects and communities. These tools help connect employees, communities

and content. Corporate social networks are changing the relationship with others: they improve the knowledge of other staff and enhance interactivity while the information travels more freely throughout the organization. For example, “MySFR”, the intranet site of SFR telecom company, includes a corporate blog, central forum and offers the opportunity to create profiles allowing employees to share information on their career aspirations and professional development.

CSC’s internal C3 social business platform was created to foster collaborative thought and work on a global scale. Approximately 8,000 collaborative groups have been created on its C3 portal, which boasts more than 85,000 users. It is now used in all of CSC’s business units across the globe. CSC’s Australia region is eliminating its email system and adopting C3 as its single internal communication tool.

These are just two examples of companies who are changing the way they do business by bringing together employees virtually through social business solutions.

BuSIneSSeS MuSt Be reACtIve In reSPOnSe tO COMPleX AnD unPreDICtABle CuStOMer BeHAvIOr. tHeY MuSt OrgAnIze tHeMSelveS SO tHeY CAn FOCuS On MOre vOlAtIle AnD CrItICAl uSerS.

COllABOrAtIOn BetWeen tHe COMPAnY AnD ItS CuStOMerS

Collaboration via social media makes it possible to share knowledge between employees, customers, partners and society. The company or agency draws on this collective knowledge to innovate and improve its products and services. Through social media, customers participate more frequently and honestly, providing greater insight into their wants and reactions enabling organizations to better understand consumer preferences and create products

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and offerings aligned with their needs. As a result, a new relationship is developing between companies and consumers. xavier Flamand, managing director of Fnac.com, sums up this new relationship: “Customers now have the power: they can choose where and how they will contact a company, what type of information they need, and when and how they will enter into a transaction, commercial or otherwise, with the company.” Businesses must be reactive in response to complex and unpredictable customer behavior. They must organize themselves so they can focus on more demanding users, who are more critical of their suppliers.

To respond to their customers' needs, businesses and government agencies are turning their networks into participatory ecosystems. And with Smart phones, tablet PCs and other web-enabled mobile devices, customers have almost limitless ways to personalize their relationship with the company.

SOCIAl MEDIA IS FACIlITATINg NEW vENUES FOR PROMOTINg IDEAS, PERCEPTIONS AND RElATIONSHIPS AS WEll AS A NEW COllABORATIvE FORM OF CONSUMPTION.

While consumers are becoming increasingly technology-enabled, human contact remains critical for customers. In the banking sector, account managers play the role of mediators. Their added value lies in their ability to facilitate customer contact and choices. At Crédit Agricole group, workstations now include real time and multi-channel extension of its self-service portal which can be personalized by advisors and customers. This provides greater access to information and support at all stages of the relationship resulting in improved collaboration between customers and advisors.

Web 2.0 technologies and mobile services enable customer access to a pool of sales representatives or experts from a consumer mobile device. This offers a quality of presence, information sharing, and of advice similar to a face-to-face interaction. At Crédit Agricole, this continuity between the different physical and virtual channels also applies to sales and banking

transaction mechanisms. An action can be initiated from any channel and completed on any other. Additionally, “contact-less” technologies make it possible to recognize and authenticate a customer, personalize an application or download it to a mobile phone, making the customer experience seamless and intuitive. To improve customer relationships, businesses are becoming more involved in social networks, opening new possibilities for dialogue and facilitating consumer engagement. Businesses are segmenting customer and prospect communities to target additional services.

user networks like Facebook can provide a powerful distribution service and can be channels for joint value creation. To promote its 1 Series, BMW developed an application with which users could create their own design. Social media make joint innovation possible, allowing companies and government agencies to use consumers' contributions on social networks to improve services and products.

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AnD FOr tOMOrrOW?

New information technologies initially benefited start-up creators and businesses by making their organizations more efficient. Now consumers are adopting these technologies. For the first time, customers are interacting on a broad scale and wielding their influence – with tools infinitely more powerful than traditional consumer associations. Citizens are doing the same thing, as demonstrated by the recent events in Tunisia and Egypt. Once again, the Internet is changing the world.

The technological revolution and its social consequences are significantly changing businesses. Customers’ requirements are evolving rapidly. Consumers are using the web to inform themselves, make purchases and help other consumers. Innovation is being driven by individuals and then transferred to businesses. Social networks started by winning over individuals, and businesses have been forced to adapt. Corporations and government agencies are creating their own Facebook pages, tweeting, and recruiting bloggers to help bring their websites to life. This trend

emulates consumer behavior and allows corporations and governments to raise their profile among online customers.

More familiar with project models and formal processes, businesses are now asking themselves how to make the most of these exogenous practices and tools. They are aware of the need to adapt to the pace set by their customers, but the web is not a natural interaction channel for traditional companies. In this race, they are finding it increasingly difficult to catch up with consumers who have become experts, and who are demanding and autonomous. In the face of consumer power based on web 2.0 technologies and social media, companies and government agencies must be more transparent in their interactions with customers and must evolve more rapidly. CIOs play a key role in this transformation. New technologies are now being integrated into the business, so CIOs are increasingly involved in the creation of value and the standardization of best practices. They must adapt the organization and technology infrastructure to this evolution while retaining

a primary focus on business priorities. While evaluating emerging and disruptive technologies as always been an important part of the CIO’s role, Web 2.0, mobility and cloud are enabling breakthroughs in intelligence and responsiveness throughout the organization and with its customers and suppliers. Competitive pressures are pushing CIOs towards greater flexibility and agility via the application of social- and mobile- enabled solutions; resulting in greater collaboration between employees, customers and suppliers and new sources of innovation.

Social networks started by winning over individuals, and businesses have been forced to adapt. Corporations and government agencies are creating their own Facebook pages, tweeting, and recruiting bloggers to help bring their websites to life.

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CIOs Are DrIven tOWArDS FleXIBIlItY BY COllABOrAtIve APPlICAtIOnS, InterACtIvItY BetWeen CuStOMerS AnD SuPPlIerS, AnD COlleCtIve InnOvAtIOn.

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ClAUDE CzECHOWSkIPRESIDENT, SOuTh & WEST EuROPEPRESIDENT, GLOBAL CONSuLTING / TEChNOLOGy / ERP PRACTICESCSC

72% of the CIOs polled in CSC's 2011 CIO Barometer believe that the increasing involvement of the CIO in corporate strategy is the "most notable development" of the past few years. A notable but not surprising development. While CIOs’ participation in decision making has now become the norm, their power will continue to grow in the years to come. Breakthroughs are accelerating, overlapping and imposing far-reaching changes upon businesses at an exceedingly fast pace. Three are worthy of mention.

• Operational excellence. The crisis, and above all global competition, have turned the "better, cheaper, safer" motto into a requirement for business sustainability. Once regarded as a competitive advantage, operational excellence has become a categorical imperative for businesses, or it could even be said, a condition for survival.

• Innovation is the equally imperative corollary of an increasingly virtual economy. Businesses must satisfy the expectations of customers who have embraced mobility, Web 2.0, multichannel interaction, RFID, etc.

• Customer intimacy, finally, is also crucial for not merely submitting to the acceleration of cycles but rather taking advantage of it. In the front line, generation y has already understood this and is demanding responsive, flexible and collaborative tools.

In this race, the businesses that rely on formalized processes are struggling to catch up with customers who have become experts and staff eager for immediacy. Once forerunners, they must now accelerate their evolution in order to bridge the gap. CIOs play a key role in this transformation. The conclusions of our 2011 Barometer are unequivocal: 78% of those surveyed believe that CIOs are now primarily evaluated "on their leadership in terms of innovation and value creation via new technologies".

tAKe tHe leAP

Radical changes are occurring, as can be witnessed every day. Businesses have begun to turn their networks into participative ecosystems. Collaboration via social media makes it possible to share knowledge between employees, customers, partners and society in general. Businesses draw on the collective knowledge of their people to innovate. This joint creation process encourages customer intimacy as well as the definition of relevant products and services, which benefit all parties.

The deployment of mobile technologies is also emerging as a priority for more than half of the CIOs surveyed. In an increasingly global economy, it is essential to offer more flexibility to employees who need to collaborate regardless of their location or time zone. This need for flexibility is also reflected in the increased use of cloud computing and IT resources available on demand, infrastructure and development environments accessible on the internet, rapid prototyping, and a "plug and play" approach to solutions delivered quickly and cheaply.

While these largely technological transformations are a challenge and raise security, governance, ownership and other issues, they promote excellence, innovation and flexibility. In this regard, they constitute a genuine opportunity for businesses and the CIO alike.

Finally, time is a key factor: real competitive advantage lies in businesses' ability to rapidly evolve within this new environment. The future is here and now.

AnAlYSIS

A TIME OF OPPORTUNITIES

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DAvID MOSCHellARESEARCh DIRECTORleading edge Forum

THE NExT gENERATION OF DIgITAl gAME-CHANgERS

After a few tough years during the recession, futurism is once again in vogue – something that no futurist we know actually predicted. We are clearly seeing renewed client interest in issues such as technology horizon scanning, future scenarios and the revitalization of the CtO function. Why?

The basic answer is that many of us have a growing sense that our underlying technological architecture is once again being reset. Just as we have lived through previous generations of technology – mainframes, minis, PCs, Internet, etc. – the combination of mobility, social media and the cloud is now forcing a significant Post-PC IT industry shift. We know that previous eras of IT change brought with them new sets of capabilities, challenges, suppliers and fortunes, along with venture capital and stock market bubbles that eventually had to burst. Just 10 years after the great dot.com mania, IT exuberance has returned, but (at least not yet) to nowhere near such irrational levels. history suggests that once again the long-term technological progress will prove more important than any short-term financial excess.

Additionally, many of our clients are also feeling renewed pressure for innovation. They know that delivering further efficiencies will become increasingly difficult without new ways of working, and that a steady stream of innovation is really the only way to stay ahead of China and other global competitors. Thus, the need for both lower costs and improved differentiation is leading forward-thinking firms to be more open to new IT approaches. It appears that today’s technology opportunities and market pressures are well aligned.

We have been sensing these changes for some time, which is why we launched our Digital Game-Changer project late last year. By ‘digital game-changer’ we mean a digital technology or trend that forces a major change in existing practices while also being a platform for future changes over many years. For example, if, as an employee, you increasingly Bring your Own Technology (ByOT) to work, it would not only radically change the provisioning and financing of IT devices, but would also significantly reshape the mission and culture of the IT function, as well as the contractual relationship between the employee and the firm. While we have a long and growing list of some 60 such potential change agents, here are 20 that we think are particularly potent:

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AFter A FeW tOugH YeArS DurIng tHe reCeSSIOn, FuturISM IS OnCe AgAIn In vOgue – SOMetHIng tHAt nO FuturISt We KnOW ACtuAllY PreDICteD. We Are CleArlY SeeIng reneWeD ClIent IntereSt In ISSueS SuCH AS teCHnOlOgY HOrIzOn SCAnnIng, Future SCenArIOS AnD tHe revItAlIzAtIOn OF tHe CtO FunCtIOn. WHY?

TOP 20 POTENTIAl ‘DIgITAl gAME-CHANgERS’

CONSuMERIzATION-DRIvEN

1. Post-PC architectures2. Bring your Own Technology3. Social media marketing4. New user interfaces5. Wireless broadband6. Identity/Privacy 2.07. Biometrics/facial recognition8. Radical transparency9. Double-deep education10. Internet Tv

BuSINESS-DRIvEN

11. Pervasive virtualization12. Advertising in the enterprise13. Open innovation14. Location-aware applications15. visualization/3D16. Collective intelligence17. Internet of things18. Semantic Web19. IT as an outsourcer20. Shifts in global IT expertise

We think this list alone provides significant evidence that the pace of technological change is indeed accelerating. In our research, we are looking at two main issues:

1. What sorts of changes each of these developments might bring to large organizations.2. how our clients are responding to these new opportunities and challenges, particularly in terms of their internal technology assessment processes and their CTO or equivalent function.

The full report on this topic will be available to LEF clients in September. If you'd like to learn more about the LEF please visit http://lef.csc.com or contact kate Taylor at [email protected]

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CIO Barometer 2011A TIME OF OPPORTUNITIES?

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CSC

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About CSC

The mission of CSC is to be a global leader in providing technology-enabled business solutions and services.

With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients, and improve operations.

CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor-independent, delivering solutions that best meet each client’s unique requirements.

For 50 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integration and consulting needs. The company trades on the New York Stock Exchange under the symbol “CSC.”

www.csc.com

Copyright © 2011 Computer Sciences Corporation. All rights reserved.

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