1. The new role of the CIO?
Borut Kolmanič
Outsourcing Sales Manager, S&T Group

2. Agenda
1. What forces are driving IT changes?
2. The impact on the CIO role
3. The CIO of today and tomorrow
4. How do I get there?

3. Forces driving IT change
Business is going Business will be New business
to be flat more demanding processes need
And IT budget is not going The requests from to be supported
to increase business will be increasing with IT
Core processes are
covered with IT, new ones
are in the front end and
information exchange
New and New service Social networks
breakthough delivery models Impacting sales and
technologies Software as a service, marketing, HR, image and
cloud computing brand, communication
Virtualization. Clouds.
Mobile devices.

4. Business areas affected
Sales and Operations Management
Marketing • New customer support • Business intelligence in
• Mobile applications, processes, mobile the areas of customers,
Social networks applications competition, business
• Collaboration process performance,
employee performance
HR F&A IT
• People skills • Risk management • IT Management, IT
• People development and • Liquidity management project selection and
training management
• Costs, personnel

5. The CIO focus
IT operations Business (and IT)
change
• Need to run – • Needs to
a must happen faster
• Can partially be • Can only be
purchased done internally

6. Different skills need for the CIO of tommorow
1 2 3
Business Acceptance by Luck. Choose the
knowledge the top and right projects.
middle
management
4 5 6
Be able to do Change Communication
more with same management skills
money skills

7. Sources of CIO success
Gartner, CIO Agenda, 2011

8. What others are doing
Gartner, CIO Agenda, 2011
CIO IT strategies 2011 2010 2009
Developing and managing a flexible 1
infrastructure
Delivering application and growth projects 2 1 3
Reducing IT cost 3 3 2
Improving IT management and governance
Reorganizing IT (retaining personell)
Expanding use of information/intelligence
Implementing business process
improvement
Implementing cloud solutions
Improving business – IT relationship 2 1

9. What others are doing
Gartner, CIO Agenda, 2011
Top 10 Business Priorities Ranking Top 10 Technology Priorities Ranking
Increasing enterprise growth 1 Cloud computing 1
Attracting and retaining new
2 Virtualization 2
customers
Reducing enterprise costs 3 Mobile technologies 3
Creating new products and services
4 IT management 4
(innovation)
Improving business processes 5 Business intelligence 5
Implementing and updating Networking, voice and data
6 6
business applications communications
Improving technical infrastructure 7 Enterprise applications 7
Improving enterprise efficiency 8 Collaboration technologies 8
Improve operations 9 Infrastructure 9
Improving business continuity, risk
10 Web 2.0 10
and security

10. How do I get there?
1 2 3
Optimize Create the Be an expert
existing costs right IT in Change
• IT Service strategy Management
Management • Alignment with • Business process
• Cloud services and operational change preceeds IT
virtualization management changes
• Look into Saas, • Selection of right • Thorough execution
selective outsourcing projects of projects
• Communication

11. Optimize existing costs
Release resources for
changes from the current
IT operations
Fine-tune Adopt Find optimal
IT processes light-weight service delivery
IT service IT solutions models
Management Cloud services, SaaS, Paas, Selective
virtualization outsourcing

12. Optimize existing costs
Examples
Fine-tune Light-weight Optimal service
IT processes IT solutions delivery models
Internal IT department Oracle licencing costs can Exchange as a Service
responsible for the decreased or at least be offered by S&T is priced to
development of a new kept at the same level if 4,7 €/user/month.
application was able to virtualization is used when
launch a new application TCO saving for a smaller
30% before planned go migrating to a new customer (up to 100 users)
live date. hardware with a higher are in the range of 50%.
number of cores.
A shorter development TCO savings for large
time was possible because Savings can be up to 50%. customers go up to 25%
the service desk could take when also licencing
over a large part of their agreements are optimized
work in supporting the and roles are adopted.
existing applications.

13. Create the right IT strategy
Access to business
knowledge
Align with
Exchange of ideas on
business line business improvement
areas
managers
Crucial for sucessful
implementation

14. Create the right IT strategy
Select the right projects
• Clear and
measurable business
• Resources
impact on top or
needed
bottom line
Business Ability to
• Resistance to
• Investment needed impact execute change
• Balance quick wins
• Risks
and long term
improvements

15. Create the right IT strategy
Strategy
To position IT
Success
To gain credibility
Communicate
Projects
To drive the change

16. Be an expert in change management
Business change The project is Measure and
precedes IT only finished communicate
change when changes results
The new business are in business Positive business
processes need to be use impacts need to be
defined before measured and
software development Training and support communicated to get
starts. of users are typically credibility and
shrinked to „deliver recognition.
projects on time“.

17. Conclusions
1 | Forces driving IT change
2 | How the CIO should respond
3 | Focuses of the CIO