Cio Pulse Sept 2008
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Transcript of Cio Pulse Sept 2008
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Abbie Lundberg, Editor in Chief, CIO
advice.cio.com/blogs/difference_engine
CIO PulseSeptember 2008
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business realities
Demand for growthEconomic uncertainty
Shifting business modelsDigital natives, consumerization of IT
High yet ill-defined expectationsInnovation and risk
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economic uncertainty
photo by Fadzly Mubin
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shift to cost cutting
What is the primaryFocus of yourInvestments?
CreateToplineRevenuegrowth
EnableBusinessProcessInnovation
Lower theOperatingcost of IT
Manage ITInfrastructur
eMoreefficiently
Past 12 months 20% 39% 16% 26%
Next 12 months 21% 37% 22% 19%
CIO Budget & Staffing Survey, June 2008
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from ROI to TCO
Most important factor driving your ITInvestments the next 12 months
Jan. 2008 June 2008
Return on investment (ROI) 59% 52%
Total cost of ownership (TCO) 41% 48%
CIO Budget & Staffing Survey, June 2008
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contingency plans
Do you have a contingency plan in place in the event you need to make cuts to your IT budget?
Yes, contingency plan currently in place 48%
Not yet but planning to implement 20%
No plans for contingency plan 32%
68%
CIO Budget & Staffing Survey, June 2008
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If a recession is to occur, how confident are you in your organization’s ability to manage through it?
riding the recession
Source: CIO Strategic IT Research Study, IDG Research, April 2008
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some examples
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extreme measures:TCO = 0?
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shifting business models
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digital
natives
web 2.0
consumerization of IT
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employees & customerswant to… • Create
» Blogs, videos, wikis, machinima (remixes)• Communicate, collaborate, share & engage
» IM, text messaging, social networking, photo sharing
• Participate, influence & be recognized» Rate & be rated, comment, vote
• Choose their own tools
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consumerization of the enterprise
Bechtel’s Project Services Network
• Infrastructure-to-apps overhaul of technology environment
• Goal: secure, ubiquitous, simplified, rapidly deployable access to corporate and customer information to any user around the world
• Role Models:» YouTube: high-bandwidth networking» Google: leveraged infrastructure» Amazon: extreme virtualization» Saleforce: multi-tenant application support
Upcoming issue of CIO Magazine, Nov. 1, 2008. www.cio.com
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enterprise web 2.0 spending
Source: Forrester Research
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shift to customer 2.0
• Large businesses spend more on employee collaboration tools than customer-facing Web 2.0
• That trend will reverse by next year
• By 2013, companies will spend nearly a billion dollars more on customer-facing Web 2.0 than on internal collaboration
Source: Forrester Research
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2020
innovation
risk
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discussion questions1. What strategies are you employing today to hedge
against rising prices and changing consumer behavior?
2. Is there still room to deliver more in the way of IT services while continuing to take out cost?
3. How suited is your IT infrastructure to a world of rapidly changing demand? What’s the best way to get to a YouTube/Amazon/Google infrastructure?
4. How do you balance innovation and risk?5. Case 1 – Your CEO sees opportunity in entering a
completely new and different market. What’s the first thing he needs to know from you?
6. Case 2 – Your company gets bought by a private equity firm and they want to quickly spin off some of your businesses. What do you do first?
7. Case 3 – The bottom falls out of a big chunk of your business. What’s the highest impact thing IT can do to a) cut costs quickly? b) shift to growth opportunities?