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
Notas do Editor
בוקר טוב וברוכים הבאים לכנס השנתי של STKI. שמי גלית פיין ואני אנליסטית בתחום של OFFICE OF THE CIO. השנה, בנוסף לנושאים הרגילים של OFFICE OF THE CIO, אני אתמקד במגמות המובייל, מכיוון שלשימוש העולה בטלפונים הסלולאריים החכמים יש השפעות חברתיות וכלכליות מרחיקות לכת. ואמנם החלטות המובייל מתקבלות ברמה הארגונית - אנו מעריכים, כי לארגוני IT יהיה תפקיד מכריע בשינוי מודלים עסקיים מסורתיים הן לגבי האינטרקציה עם הלקוחות והן לגבי צורת העבודה של אנשי השטח בארגון.
http://www.it-sideways.com/2009/01/2009-trends-in-networking-and-security.html
Next Generation Networking Internet Protocol (IP) Core and High Speed Broadband“The 13-country Frost and Sullivan Asia-Pacific Broadband Access Technology and Market Comparison study released mid-year, showed the money to be made by telcos from offering broadband services to both corporate and home users. With a compound annual takeup subscription growth rate across the region, of 19.9%, revenues across Asia Pacific stood at US$28.1billion in 2007 and this is projected to reach $42billion by end-2013. Focused investment in HSBB (high speed broadband) in Malaysia via fibre-to-the-home and Ethernet-to-the-home with last-100 metres vDSL built on an end-to-end infrastructure for which Juniper Networks is set to provide the core network and other components, will further stimulate broadband demand and enhance national competitiveness.
Network and data centre consolidation and network virtualisation“Network and data centre consolidation reached fever pitch in 2008. Organisations have been focusing on this as a key way to reduce operating expenditure but many networks are still far too complex. 2009 will see a shift in focus to look across the entire organisation and really address complexity. We’ve seen a number of customers look at cost and space savings available with this virtualisation technology in 2008. The challenge is getting server and network teams together to break down communication and education barriers to help businesses really streamline their data centres. 2009 will be the year that the network is the next to get the virtualisation treatment.”
Green Networking“Beginning in 2008, 2009 is likely to see quantifiable metrics for efficiency and power consumption become a core element to RFPs (requests for proposals). To date it’s been a ‘nice to have’ with vague, unquantifiable goals. There are now testing standards (which Juniper is leading with testing vendor Ixia) that allow more rigorous demands to be placed around the green credentials for networking equipment.”
IPv6“2008 saw an uptake in interest in IPv6, but only a few real implementations. As the number of available IPv4 addresses rapidly dwindles, 2009 may just be the year that the industry really starts to embrace IPv6. It’s not going to suddenly replace IPv4, but we’ll certainly see an increase in deployments as operators and companies look to future proof their networks.”
Network Operating systems“Maximising network and server resources depends on using them more effectively and this needs proper management. The network operating system is a key way to achieve this and as such it is likely to emerge as a more important part of the buying decision in 2009. This will see new battles emerging among the main network vendors to differentiate and help customers reduce operating cost. It’s certainly an area that Juniper is making significant investment with JUNOS forming a core part of the business strategy.”
Network intelligence and policy control“Companies are looking to leverage a lot more multiplay applications which will lead to an increasing mix of video, voice and data flowing over networks. Dealing with these multiple traffic types is certainly achievable with only modest networks - as long as they have enough intelligence built in. In 2009, the mechanism to achieve this level of intelligence, through advanced application aware networking, is likely to emerge as a key focus area for businesses.”
Network Security“Against a backdrop of economic uncertainty, environmental pressures and tighter budgets going into 2009 from 2008, investments in Network and Internet Security will continue. Recent events that unfolded in Mumbai & Bangkok raise focus on not just security and connectivity, but continued access to information and data. In this aspect, ICE (In-Case of Emergency) capabilities, disaster recovery and business continuity will be top of mind with many CIOs. In addition, some organizations will supplement that with identity management and access control to tighten their information security. Consolidation and virtualization will extend to security solutions in an effort to reduce security appliance sprawl and reduce costs in power and cooling in the data centre.”
אני רוצה לפתוח בשקף המתאר את השינוי במיקוד של ארגוני IT. זהו שקף שמלווה אותי במצגות כמה שנים. לפני 6-7 שנים דיברנו על חשיבות המיקוד של IT במצויינות תפעולית – מה שנקרא לעזור לארגון TO RUN THE BUSINESS – מדובר היה בחשיבות תפקיד של IT באספקת מידע מדויק, ותחזוקה וזמינות מערכות
לפני 3 שנים התחלנו לדבר על שינוי בתפיסת ה-IT –IT התחיל לראות את עצמו כספק השירותים לארגון, התחלנו לדבר על הלימת ה-IT ליעדים העסקיים, ועל
ועתה אנו מדברים על צורך של IT להיות מעורבים בחדשנות הארגונית – בהגדלת יתרון תחרותי של הארגון, הוא לא רק פלטפורמה טכנ לשינוי אלא היוזם של מודלים עסקים חדשים בעזרת מהפכה טכנ' שכבר קורית בחוץ עם טלפונים חכמים וWEB 2