1. STKI
Office of the CIO Trends
Galit Fein
EVP & Senior Analyst
Office of the CIO & Mobile Strategies
www.galitfein.blogspot.com

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Office of the CIO
Agenda
Office of the CIO Trends
Project & Portfolio Mng
PPM Tools
Service Desk

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Operational
Excellence
“Run the Business”
Business
Services & Support
“Change the Business”
Business
Competitive Advantage
& Innovation
“Transform the Business”
IT Focus Transformation
•Available & accurate info
•IT maintenance
•HW availability &uptime
•Technical support
•Align IT to business
•Best solution for bus. needs
•IT portfolio mng of LOBs
demands
•Align IT to customers
•Business partner
•Core business initiator
•Transformation initiator
Introduction

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On the desk of CIO
New products/services
Process improvements/service delivery
Technology improvements
Growing market share
Improving customer satisfaction
Managing operational costs
28%
36%
37%
39%
42%
50%
2010 priorities
Improve organizational processes
Increase org. productivity
Reduce operational costs through
improved IT efficiency
39%
49%
49%
Top 3 ways IT will help the org.
during the economic recovery
Cloud computing
Social media applications
Web 2.0
IT Governance
Energy efficiency
Mobility/mobile devices
Virtualization
Information security
13%
14%
15%
21%
26%
28%
29%
46%
IT priorities for 2010
Source: CDW IT Trend Release
Introduction

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Office of the CIO –
Main Theme
Office of
The CIO
Jump on the bandwagon -
Real business value is there

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MEGA OTC Trends 2010
 Slight exceed in IT Budget (back to 2008 level)
 Demand for IT will gradually expand
 Customer-facing & sales-supporting projects will be first
on the rise
 Need for new projects will return hiring mode into the
market
Office of
the CIO

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Demand for IT
Source: Information Week
Office of
the CIO

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2010 New Technology Investments
Source: Information Week
Analytics Outlook 2010
Survey of 360 business
technology professionals
Note: Mean average ratings
based on a 5-point scale,
where 1 is “investment will get
cut significantly” & 5 is
“investment will increase
significantly”
OTC
Trends

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OTC Trends – The Good News
 After 6 years of talking about OTC it’s actually happening!
• Mostly in Financial & Telecom sectors
 Financial crisis & budget reduction in 2009 forced better ITG:
• Increased focus on IT costs - efficiency increasing
• Business oriented CIOs understood the importance of ITG
• New regulations requested better transparency
 Most ITOs have examined & evaluated their ITG process &
tools
Office of
the CIO

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OTC Trends – The Bad News
 IT is still mostly viewed as a cost center
 Too many ITOs can’t calculate or prove that IT actually adds
value
Need for improvement in all practices
(planning, demand, prioritization, resource & risk mng)
No formal set of processes in place:
• Less than 20% of the organizations have a high commitment to
SLAs, EA, PMBOK, ITIL, COBIT, SOX, etc
Large gap between what IT managers & business managers
think about IT contribution to the business
Office of
the CIO

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Office of
the CIO
More IT managers than BU managers tend
to believe IT delivers value
Source: Cutter

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Misalignment Challenges
 IT was not regarded as a partner
 Technology decisions were made
without IT involvement, inc. purchases
Lack of transparency
Lack of BU commitment
 Consistent introduction of unplanned
work into an unmonitored IT portfolio
 Reactionary vs. strategy based decision
making
Office of
the CIO

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Establishment of Office of the CIO /
Business Relationship Mng
 Need for a new department / expanding the existing one
 Unlike elsewhere, Israeli OTC / BRM are built under CIO
• Business oriented IT managers (mostly IT project managers)
• CIOs support & ownership
 OTC/ BRM responsibilities:
 Methodologies & WF definition, process marketing, IT budget
control & mng, PPM, CTO, HR - resource allocation & mng, QA,
GRC…
Office of
the CIO

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Office of
the CIO
What is the current status of OTC in your org?
Robust &
Automatic
17%
Expansion
29%
Establish
ment
54%
Source: STKI

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PMO vs. BRM
PMO - Project Mng Office
 Project mng processes
definition
 Support in business referents
 Accompany the project
implementation
 Project Gantt control –
milestones
 Project risk mng
BRM – Business Relationship Mng
 Business needs definition
 IT/Business alignment
 Overall perspective
 Value-focused IT spending
 Business & technical risks
 TCO calculation
Office of
the CIO

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Office of the CIO
Staffing Ratio
 Average size of Israeli OTC department: 3-5
• ~1.5% of IT department (between 0.5% - 4%*)
• Compared to ~5-8% in global orgs
* in large enterprises, varies according to the maturity of IT
Governance in the organization
Office of
the CIO

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Essentials to consider
in OTC implementation
• Marketing of OTC process
• CIOs understanding, embracing & championing the
process
• Executive involvement & active support
• Financial & “Osh" departments inclusion - appropriate funding,
good ROI, financial goals
• Acknowledging the need for funding of resource time
& appropriate tools to support the program
• Create a real partnership with your PPM vendor or with a ITG
consultant
Office of
the CIO

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OTC Myths
1. Takes many years until
it shows a valid value
2. Can build “on the
way”
3. PPM tools are not
important
4. Too much visibility is
bad for IT
5. ITG consultants can’t
understand your
business
1. You can see the actual
business value after few
month only
2. Must be executives’
ownership & dedicated
resources
3. ITG automation provides the
essential transparency
4. When you are “underground”
no one notice your success
either
5. Best practices & knowledge
utilization
Office of
the CIO

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It’s all about right decision
making based on single source
Collect & inputs
requirements
Financial Depart
Check
business
objectives &
project indicators
Approvals
Business
referent
Check project’s
content with a
budget & capacity
Office of the CIO
Business
Executives
Office of
the CIO

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Transparency
 When everyone sees the same picture – IT strategic plan
based on project’s contribution to the business,
without political considerations
 Not every IT is ready for such a transparency :
• BU can now follow after their requirements’ progress & IT
compliance with SLA
Office of
the CIO

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Ongoing Activity Report
 You can only achieve the real
transparency through hours spent
per task report
 OTC process & benefits marketing
with executives’ dedication it’s the
only solution for employee
resistance
Office of
the CIO

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Office of
the CIO
PPM Framework
Source: Cutter

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Office of
the CIO
Capex vs. Opex Spending
Source: Cutter
Regulatory
$
Number
of projects

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“What if” analysis
If your budget is 1M then your IT portfolio is…
If your budget is 3M then your IT portfolio is…
You can add your governance polices:
• If the risk score is > then X
• If the project’s contribution score is < then Y
• If the Payback time is >then 2 years
• If the ROI is < then
1M 2M 3M 4M
Projects’ Size, Risk & Value
Office of
the CIO

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Project Monitoring
 Commonly used set of metrics (budget, schedule, scope)
that does not always reflect the project’s contribution to
the business goals or org. success
 No post-implementation audits to ensure successful
system-use
Office of
the CIO

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CIO’s Dashboard
Help Desk
CIO’s dashboard should pull the real-time data from all
organizational systems
Source: MSP
Office of
the CIO

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OTC as a preparation for
IT Chargeback
 IT aim to stop acting as unlimited
resource:
• Difficult to allocate operational
budget
• Cloud computing model
 IT process mapping, transparency,
resource mng & dashboards will be
used as a platform for IT Chargeback
Office of
the CIO

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PPM Tools
 About 10 ITOs implemented end-to-end PPM solution (Clarity,
MSP)
 Successful implementation – started in IT but today across all
BU
 New PPM player in the Cloud Computing model on Force.com
platform
 Microsoft launches MS Project 2010 (EA), which promises to be
a full PPM solution & probably will bring to another market
awakening
Office of
the CIO

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PPM on-Demand
 There is almost no on-Demand PPM solution acceptance
in Israel:
• Psychological reason - PPM solution concerns all strategic
aspects of org. – financial, budgeting, strategic projects,
costs & clients
• Technological reason – integration difficulty in SaaS model
• Integrators did not offer it to customers
Office of
the CIO

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Benefits & Importance of OTC
 Greater transparency & communication re what IT is working
on for a business build on:
• Single (automated) source of truth
• Unified methodology
 Increased business satisfaction with IT
• BU have a strong feeling of involvement & ownership of IT projects
• Sense of truth Business-IT partnership
• Better business & IT value
 IT delivery aligned with customers & business strategy
 IT became a core business initiator!
Office of
the CIO

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ITG/ PPM- Positioning of the Israeli MarketLocalSupport
Market Presence
This analysis should be used with its
supporting documents
Vendors to Watch:
CA
HP
Compuware IBM
MSP
PS Next
Enterprise
Worldwide
Leader
Microsoft New Player
Approach
Office of
the CIO

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Project Mngt - Positioning of the
Israeli Market
LocalSupport
Market Presence
Enterprise
Existing Israeli
experience in
project mng
This analysis should be used with its
supporting documents
Vendors to Watch:
Compuware IBM
Worldwide
Leader
Microsoft
CA
PS Next
HP
Primavera
Office of
the CIO
MSP

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PPM Tools & Integrators in Israel
IntegratorsNew Clients 09/10’Clients
CA, ProceedOrange, Teva,
Jewish Agency,
Bank Hapoalim
Ministry of Tourism, Clalit,
SanDisk, Leumi Card
Clarity (CA)
MSP, ONE1Cellcom, Phoenix,
Leumit, Justice
Department, Clal Bit,
Bank Igud, Delek,
Ministry of Defense
Menora, IAI, Tel-Aviv
Municipality, Ayalon-ins
CIO Dashboard: Random
Logic, IDF, Elbit
MSP
HP, BDALivePersonMataf, Motorola(Global)PPM (HP)
Matrix (Sibam)Jacada (Global), Retalix
(Global)
Compuware
Changepoint
(Matrix)
IBM-Focal point,
RTC (Rational
Project Conductor),
Rational Insight
(IBM)
Office of
the CIO

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PPM Tools & Integrators in Israel
IntegratorsNew Clients 09’Clients
Matan, Orantech,
Neway, PZ Projects,
Proceed, Tefen
Orantech: Netafim, ECI, Navy;
Matan: Machteshim Agan, Prime
Minister, Maccabi
PZ Projects: Min. of Foreign Affers,
MS PR 2010 - Justice Department
Tefen: Clal
MS PR 2010 - Amdocs
M-system, Leumit, IAI, IAA, Lotem,
Bezeq, Mekorot, Tel Aviv Municip,
Orbotech, Bank Leumi, Coca-Cola,
Nice, Strauss-Elite
Matan: Alvarion, IAA, Better Place,
Tnuva, Random Logic; Orantech:
Ceragon, Logic, AD Gency ,Sol gel ,
Rocar ,Playtech, Sandisk; KAKAL,
MODU, Kodak, RAD; Proceed:
Malam
EPM
(Microsoft)
*MS Project 2010
– Launch @ 05/10
Xioma, Signifer,
Aman
Bid Band Networks, IDE, Veraz,
Opgal, Teva Tech
Bank Discount, Menora, Teva, Visa
Cal, BVR, Nova, Evogene, Leadcom
Hazera Genetics
PS Next
(Xioma)
EffectiveX,
SalesForce.com
NetafimApproach PPM
on Force.com
(EffectiveX)
AvivMercava, IDF, IntelPrimavera
(Oracle)
Office of
the CIO

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The End
Thank you!
Galit Fein
Blog: www.galitfein.blogspot.com
Twitter: GalitFein