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www.straighttalkonline.com Issue Number 5
MAKING 
ENTERPRISE 
MOBILITY 
A REALITY 
Innovative mobility initiatives at Walmart, 
Merck, Qatar Airways, Dr Pepper 
Snapple, and other forward-looking 
companies. 
PAGE XX 
www.straighttalkonline.com Issue Number 5
Cover Article 
Making Enterprise 
MOBILITY A REALITY 
Innovative mobility initiatives at Walmart, Merck, Qatar Airways, Dr Pepper Snapple, 
and Montreal Transit 
Straight Talking 
05 
Content 
19 
19 
33 
Reimagining IT 
Richard Seltz, CIO and VP, 
Information Technology, Chemtura 
23 
Seven Essentials of the Highly 
Successful IT Function 
Turkka Keskinen, CIO, UPM 
Seven Habits of the Highly 
Successful CIO 
Brian Adams, CIO and Director of 
Procurement, WorleyParsons 
23 
Running IT Like a Business . . . 
at a Giant Nonprofit 
Terry Bradwell, EVP and CIO, AARP 
The ROI of Hard Work 
Kristin Russell, former Secretary of 
Technology and CIO, State of Colorado 
23 
Emerging Technology, 
Emerging Markets 
Vivek Vasudev Kamath, Executive 
Director, MSD (Merck) India
27 
Culture Change: IT as an 
Innovation Engine 
Annabelle Bexiga, EVP and CIO, 
TIAA-CREF 
Issue Number 5 
19 
Shifting Gears 
Timothy Heffron, Vice President, 
Human Resources, and CIO, Meritor 
Big Thinking Solution Spotlight 
Tackling Two Big 
IT Challenges 
19 
Reborn Digital: Reinventing 
the Enterprise for the Digital Age 
Steven Cardell, President, Enterprise 
Services and Diversified Industries, 
HCL Technologies 
19 
Proactive Obsolescence: 
Turning ASM Costs into 
Change-the-Business 
Investments 
Mark Hirst, Global Head, Public 
Services, HCL Technologies 
59 
The CIO Role in the 
Enterprise of the Future 
Andrew McAfee, cofounder, 
Initiative on the Digital Economy, 
MIT Sloan School of Management 
55 
Failure Can Wire 
Your Brain for Innovation 
Michele Gallen, CEO, Shhmooze
CIO Straight Talk Team 
Utkarsh Srivastav, Sanjeev Kaul, Arun Menon, Gangeya 
Purushottam, Vinay J. Mathew, Abhishek Singh, Paresh 
Vankar, Vikas Goel, Abhishek JM, John Meyer, 
Pichumani Sathyanarayana, Marc Chesover, Gaurav 
Kumar, Hitesh Parekh, Neeraj Singh, Sudha 
BalasubramanyanBiswajit Rath, Gangeya Purushottam, 
Shoba Pfaff, Siva Charvu, Shimona Chadha, Gaurav 
Kapahi, Shirish Sahay, Yasser Ahmed Khan, Krishna 
Kotipalli, Bhaskar Vedula Rao, Nikhil Chakravarthy 
Manupati. 
Atul Sharma 
HCL Technologies 
1st Floor, A-2, Sector – 3 
Noida – 201301, 
Uttar Pradesh, India 
sharma.atulsh@hcl.com 
Wendy Semerau 
1 Mid America Plaza, Suite 403 
Oakbrook Terrace, IL 60181 
USA 
408-328-7701 
wsemerau@hcl.com 
CIO Straight Talk is a periodical published by HCL Technolo-gies 
(HCLT) meant for its existing and prospective clients for 
information purposes. The information contained in the 
publication contains general views based on the experiences 
of technology practitioners and subject matter experts within 
and outside of HCLT, expressed by them in their individual 
capacity and in no event shall HCLT (including its affiliates 
and group companies) be liable for any claim, damages or 
any other liability arising out of or resulting from this 
publication. You are advised to seek professional advice 
before making any decision that may affect your business. 
All contents are copyright © 2014 by HCL Technologies Ltd. 
All rights reserved. Excerpts may be reprinted with attribu-tion 
to HCL Technologies. 
The Wisdom of Your Peers 
We recently launched a sister publication to CIO 
Straight Talk, called CTO Straight Talk. Like the 
magazine you are reading now, CTO Straight Talk 
highlights the thinking of those working in the field — 
in that case, CTOs and other senior product 
engineering executives. As we put together the first 
issue, I was struck again by the value of our content, 
value that flows from our decision to showcase 
“practitioner thought leadership” in these two Straight 
Talk publications. 
The inaugural issue of CTO Straight Talk 
(magazine.straighttalkonline.com/cto/issue1) 
includes a cover article (“The Internet of Experiences”) 
that offers a new take on the Internet of Things. The 
issue also includes an interview with Tim Brown, the 
CEO of IDEO, on how design thinking can enhance the 
experiences and “things” of the Internet of Things. 
But the heart of the first issue is a series of articles 
by product engineering executives from Fortune 1000 
companies. Each one offers insights that could only be 
distilled from the professional experiences of 
executives like these. 
Which brings us to this issue of CIO Straight Talk, 
also packed with practitioner insights. For the cover 
article, we talked to CIOs and mobility heads at six 
companies, ranging from Walmart to Qatar Airways, 
about initiatives they’ve launched to turn the promise 
of enterprise mobility into a reality. 
The “Straight Talking” section features articles by 
CIOs offering a wide variety of views on an equally 
wide variety of topics — from “seven habits of the 
highly successful CIO” to tackling an IT problem of 
tremendous complexity and massive scale. The 
authors’ organizations are in industries as different as 
financial services and automotive; they include 
nonprofits and government; and they are based in the 
U.S., Finland, India, and Australia. 
We hope the issue inspires you to share your 
professional insights with peers on the CIO Straight 
Talk group on LinkedIn (http://lnkd.in/CIO Straight 
Talk). I’m confident they will find your ideas useful, 
just as we hope you will benefit from the peer insights 
you’ll find in this issue. 
Editor Paul Hemp 
Managing Editor Ritesh Garg 
Contributing Editors Stephanie Overby, Glenn 
Rifkin, Alan Earls 
Copy Editor Amy Halliday 
Art Director Neha Sharma 
Digital and Social Anirban Sanyal 
Events and Webcasts Mishtun Chatterjee 
Distribution and Leverage Atul Sharma 
Editorial Advisory Board Anant Gupta, Krishnan 
Chatterjee, Apurva Chamaria, Amar Singh, Harsh 
Kumar 
Printing Quality Printing, Pittsfield, MA, USA 
Lustra Print Process Pvt. Ltd., New Delhi 
Acknowledgements 
Contact Us 
For information on reprinting articles and all other 
correspondence, please contact: 
Paul Hemp 
Editor
MAKING 
ENTERPRISE 
MOBILITY 
A REALITY 
For all the hype surrounding enterprise mobility — the 
declarations of both its benefits and its risks — most 
companies are still in the early stages of implementing 
mobile strategies. Here are the stories of five companies 
that are turning talk into action. 
Cover Article
Dr Pepper Snapple: A Mobility 
Slingshot to Battle the Giants 
When your chief rivals are Coke and Pepsi, you need all 
the competitive weapons you can get. 
For Tom Farrah, CIO of Dr Pepper Snapple Group, 
one such weapon is enterprise mobility. In the beverage 
and consumer packaged goods industry, visibility and 
shelf space are crucial to success. DPSG’s decision to 
provide its 2,400 account managers with iPads — 
equipped with real-time account information, 
promotional material, and critical sales data for every 
customer — is transforming how the company competes 
with rivals and is already helping to increase sales. 
In just over a year, mobile technology at Dr Pepper 
Snapple has shifted much of the complexity of doing 
business from the customer-facing front end to the 
technology-enabling back end. Gone are the outdated 
print-laden binders that an account manager had to lug 
into every retail outlet he visited, replaced by sleek new 
iPads loaded with custom-made apps for solidifying the 
crucial relationship with store managers. 
In a brand-based marketplace, Dr Pepper has long 
been a major force. The beverage, created in 1885 by a 
Waco, Texas pharmacist, is the oldest soft drink in the 
United States. Part of the Cadbury Schweppes empire 
from 1995 until 2008, the Dr Pepper Snapple beverage 
group was spun off into a stand-alone, publicly traded 
company. The $6 billion business, which owns more 
than 50 iconic trademarks, including Dr Pepper, 
Snapple, Mott’s, Schweppes, and 7 Up, is sold through 
retailers around the world, from Walmart to 
mom-and-pop convenience stores. 
The company is heavily dependent on a very mobile 
sales force that is responsible for direct store delivery. 
16 CIO Straight Talk 
Tectonic shifts in the technology landscape are nothing 
new to CIOs. If you’re not ready for familiar strategic 
landmarks to disappear every few years — if you’re 
uncomfortable with the maps used to plot your IT strategy 
becoming irrelevant — you’re in the wrong business. 
Take the emergence of mobile computing. The 
confluence of laptops, smartphones, tablets, cloud 
services, and high-speed broadband 3G and 4G networks 
over the past decade is changing the very nature of 
business. Outside the organization, mobile computing is 
transforming how companies interact with customers and 
prospects. Within the organization, it is allowing 
companies to work smarter and faster — while raising 
security risks and weakening the CIO’s control of a 
company’s technology framework. 
For example, the so-called consumerization of IT and 
the BYOD phenomenon — you “bring your own device” to 
use at work, and with it heightened expectations for 
computing convenience and capabilities — represent a 
massive cultural reshaping of a company’s technological 
environment. CIOs who spent their careers overseeing a 
monopoly in corporate IT now face competition from end 
users who have already experienced the benefits of 
state-of-the-art mobile consumer devices. In fact, 
enterprise mobility initiatives are often driven by senior 
executives with iPads who are insisting on the same 
dexterity with their corporate data that they have with their 
personal data. 
The magnitude of the changes wrought by mobile 
computing is evident in analysts’ estimates, predictions, 
and assessments: 
• Mobile devices now outnumber human beings, with an 
estimated 7.3 billion mobile devices in the world in 2012 
and just under 7 billio n people , according to Forrester 
Research. 
• Mobility is converging with social, cloud, and big data 
forces into a “nexus that is driving disruptive changes to 
IT, businesses, and society overall,” according to Gartner. 
• The global enterprise mobility market will reach $140 
billion by 2020, growing at an annual rate of 15%, 
according to HCL Technologies. 
• The number of smartphones in use is about to surpass 
the number of PCs in use, according to technology analyst 
Benedict Evans. 
• In 2013, 56% of companies created organization-wide 
mobile strategies and 47% increased investments in 
mobile and wireless capabilities, according to IDC. 
But being aware of and comfortable with the seismic 
transformations brought on by mobile computing isn’t the 
same as staying ahead of them. For all the hype 
surrounding mobility these days, most companies’ 
initiatives are in the nascent stage, and the CIO’s role in 
them isn’t always clear. Dan Bieler, an analyst with 
Forrester Research, has written, “CIOs will be responsible 
for introducing technology solutions that help break down 
silos, boost cross-team collaboration, drive the end-to-end 
customer experience, and engage more deeply with 
customers. In order to succeed, CIOs must go beyond 
technology enablement and support organizational and 
cultural transformation.” 
Given that the devil is in the details, CIO Straight Talk 
reached out to a cross-section of organizations that are in 
the midst of enterprise mobility efforts. Their stories offer 
examples of mobility initiatives that are already resulting 
in significant improvements in companies’ internal 
processes and productivity, as well as in their relationships 
with external customers.
16 CIO Straight Talk 
Account managers spend their days visiting 
individual customers to take replenishment orders and 
sell incremental activities such as promotions, displays, 
and other sales-generating offerings. Given the 
real-time, data-intensive nature of the business, these 
account managers have long been prime candidates for 
mobile technology. And until 2013, they (and the delivery 
drivers) did indeed carry rugged Motorola handheld 
devices. These devices, still used by delivery companies 
like Fedex and UPS, work well enough for replenishment 
order taking: An order, input at the retail location, 
triggers a delivery over the next 24 to 48 hours. 
But Farrah, a Cadbury veteran, had more ambitious 
plans. Providing retailers with information about 
incremental promotional activities turns out to be a 
complex task. Typically, the account manager carried 
around printed material with information on all 
promotions, ads, and sales activities for the month. 
Given that DPSG has 150 sales regions around the U.S. 
(each of which includes dozens if not hundreds of 
retailers) and that the company comprises more than 50 
individual brands (each with its own pricing changes, 
special promotions, and point-of-sale materials), the 
task of keeping updated binders with accurate 
information readily available for each account manager 
had become a black hole. 
“You have account teams selling to Walmart or 
Target or Kroger,” Farrah says. “You have mom-and-pop 
stores all over the place. Every brand has its own 
marketing activity, and every retail customer has its own 
account team creating different promotions and 
activities. When you take all the factors into account for 
our company — all the brands and how we license with 
our bottlers — there are over 12 million possible 
combinations of brand, bottler, and customer that need 
to be communicated to and executed at the store level.” 
Farrah saw that the sales binders — with their dirty, 
torn pages and often out-of-date information — had to 
go. “We decided to rebuild that application on an iPad,” 
Farrah says. “We started by moving the order entry 
application from the rugged handheld device to the iPad. 
Just by redesigning that application, we learned how to 
take advantage of the iPad interface, and we focused on 
the user experience down to the nth detail.” The 
application, built internally in IT, synchronizes all new 
data automatically to the mobile device. Any new 
customers, products, pricing changes, or other 
information is available in less than a minute with a 
touch of the screen before salespeople set out on their 
routes in the morning. 
The pilot program, launched in the first quarter of 
2013, was an immediate hit; salespeople reported that it 
cut their order-replenishment time in half. 
Phase two of the pilot was to get all the additional 
promotional material on the iPad. Now, when an account 
manager checks his route for the day, he sees a list of that 
day’s customers. When he clicks on a particular 
customer, the system instantly brings up 
customer-specific promotional activity, including 
pricing, packaging, point-of-sales materials, and the 
promotion timeline. 
“These guys usually have about two or three minutes 
of a store manager’s time,” Farrah says. “The last thing 
they want to do is say, ‘Let me walk you through this 
promotion,’ then hit a button and stand there waiting for 
it to download. When they synchronize their device in 
the morning, it is all downloaded then and there, so even 
if they are in a location without cellular service, it doesn’t 
matter.” 
The most daunting task for IT, Farrah notes, was 
building the back-end engine that could gather and 
distribute all that material. Using the company’s internal 
portal, Splashnet, Farrah’s team created MySplashnet, 
an intelligent personal portal for each individual in the 
organization. When an account manager opens 
MySplashnet, it knows who and where he is and provides 
all his daily operational metrics. 
Having rolled all this out far more quickly than 
anticipated, Farrah wasn’t done. Each account manager 
also has mobile BI (business intelligence) that is 
personalized to his account. He can click on My Route 
and see, through a mapping device, each store he will 
visit that day. Each store’s icon is accompanied by a 
balloon that opens to a box showing every brand and 
package that DPSG sells to that retailer, along with 
current sales, month-to-date, year-to-date, and what the 
average is and ought to be. If a salesperson is behind for 
the month, it tells him how many cases he needs to sell. It 
also ranks the salespeople in that region so he knows 
where he stands. 
“The last thing they want to do is say, 
‘Let me walk you through this 
promotion,’ then hit a button and stand 
there waiting for it to download. When 
they synchronize their device in the 
morning, it is all downloaded then and 
there, so even if they are in a location 
without cellular service, it doesn’t 
matter.” 
Tom Farrah, CIO, Dr Pepper Snapple Group
16 CIO Straight Talk 
Though sales force mobility capabilities are 
becoming standard operating procedure in the industry, 
Farrah believes that DPSG, in providing tailored data to 
individual account managers, is ahead of rivals such as 
Coke and Pepsi. 
His objective for 2013 was to increase sales for the 
business, and although he can’t attribute specific sales 
increases to the mobility rollout, given the variety of 
factors involved, the anecdotal evidence has been 
gratifying. For example, the president of Farrah’s 
business unit told him, “I’m not worried about 
calculating the value that’s come out of this, because I see 
what’s going on in my business — and there’s no question 
it is helping us to grow sales.” 
That’s feedback from the business side that any CIO 
would welcome. 
Merck: Go Fast, Be Ambitious 
When Merck, the $44 billion pharmaceutical giant, 
embarked on its enterprise mobility journey four years 
ago, it took an unusual route. Many companies were 
initiating their mobile efforts with the sales force so that 
salespeople could access information in the field. But 
according to Randie Schlamowitz, executive director of 
Merck IT, Merck decided to emphasize the “enterprise” 
in enterprise mobility and enable its entire corporate 
environment holistically. 
“We built a company-wide mobile network,” she 
explains. “We made sure we had security in place and 
that data was protected on mobile devices. We brought in 
a mobile device management tool, and we were able to 
track company-purchased mobile phones and, over time, 
personal devices, too. We supported e-mail and calendar 
and all the standard productivity capabilities.” 
From there, Schlamowitz began to consider Merck’s 
SAP-based ERP environment as a fertile landscape for 
taking mobility further. She began with a small pilot 
program. In a company the size of Merck, where many 
factors — performance, usability, support, etc. — need to 
be considered, pilots are essential. The initial pilot 
enabled the approval of an expense report using a 
Blackberry or an iPhone. After the success of that effort, 
the pilot was then expanded to more than 1,000 
managers across the company. It wasn’t earth-shaking, 
but it was a start. “Our philosophy for enterprise mobile 
applications is that we build them pretty rapidly — in 
anywhere from eight to twelve weeks — and deploy them 
among a small pilot user group,” Schlamowitz says. “We 
get feedback to ensure that there are no issues before we 
deploy the app to a broader user base.” 
After its initial forays, the company began to get more 
ambitious. What would it take to enhance productivity 
for managers, for the sales force, and for others around 
the organization? Schlamowitz’s group investigated 
available mobile enterprise application platforms, or 
MEAPs, and selected an SAP technology that plugged 
seamlessly into the company’s SAP landscape. Her team 
used this technology to rapidly enable certain key 
transactions on mobile devices, primarily iPhones and 
iPads, as the Blackberry, the company’s traditional 
smartphone of choice, was eclipsed by rivals. 
Unlike most U.S.–based companies, Merck made its 
most dramatic foray into enterprise mobility off-shore, 
specifically in China, an important emerging market for 
the company. In that case, the sales organization was the 
focus. The laptop devices they had been using were slow 
and were not effectively connecting to the network. 
Under Merck’s single-device strategy, China’s 
3,500-member sales force all received iPads and were 
initially given ten mobile capabilities, including access to 
their enterprise portal, documents stored in SharePoint 
(Microsoft’s web-based collaboration software), the 
enterprise learning management system, and travel 
expense reporting. This last capability was particularly 
innovative, allowing a salesperson to quickly create an 
expense report, snap a photo of a receipt, and transmit it 
instantly on the iPad to the corporate back end. A process 
that had taken 26 minutes through the corporate portal 
was reduced to less than five minutes on an iPad. Given 
the success demonstrated in China, which included a 
close collaboration with business colleagues who 
changed their traditional ways of working to adopt 
mobility, these capabilities were ready to be deployed to 
the enterprise. The team continues to develop innovative 
mobile solutions across Merck and is working with 
Manufacturing to leverage mobile devices and 
applications to enhance productivity. 
Merck’s mobile philosophy has diluted the oft-heard 
refrain in corporate environments that the CIO and IT 
“When we embarked on this journey, we 
looked at it holistically. Organizations that 
focus primarily on mobility as a sales 
force enablement technology don’t 
necessarily think about the broader 
enterprise.” 
Randie Schlamowitz, 
Executive Director, Merck IT
16 CIO Straight Talk 
are impediments to the BYOD and mobility trend, trying 
to protect their turf and control the distribution of 
technology. For mobility, IT at Merck has been the visible 
champion. 
“When we embarked on this journey, we looked at it 
holistically, Schlamowitz says. “Organizations that focus 
primarily on mobility as a sales force enablement 
technology don’t necessarily think about the broader 
enterprise.” 
Merck’s CIO at the time made it clear that “whatever 
we do, we need to do it for the enterprise,” Schlamowitz 
says. Clark Golestani, who has been CIO for the past two 
years, has strongly supported and expanded that 
philosophy. Schlamowitz says that at least 50% of the 
company’s 74,000 employees around the globe 
eventually will benefit from the company’s mobile 
capabilities. 
What are the lessons from Merck’s mobility efforts? 
“Mobility is all about speed and forward momentum,” 
Schlamowitz explains. “You need to approach mobility a 
little bit differently in that you have to leverage the 
appropriate standard development practices using a 
much more aggressive timeline. It’s not just the group 
that’s building the app; it’s the group that is testing the 
app, it’s the group that is supporting the app, it’s the 
group that’s changing the back-end systems of record. 
They all need to be focused on acceleration.” 
At the same time, IT leaders must be prepared for 
unexpected changes in the technology landscape. 
Schlamowitz says, “A decision you make today may not 
be the right decision a year from now.” 
Qatar Airways: Delighting Your 
Passengers — and Your Employees 
The marvel of flying is an exceptional example of mobile 
technology — which puts an airline in a good position to 
realize the potential of mobile computing. Airlines don’t 
just transport passengers from one location to another; 
they manage a ceaseless flow of workers, baggage, fuel, 
and critical information. 
Qatar Airways, the award-winning airline of the State 
of Qatar, uses the latest in mobile technology — 
smartphones and tablets — to change how the company 
operates in the B2B, B2C, and B2E (business to 
employee) areas. 
“The technology challenge for the airline industry is 
preparing the passenger for travel through real-time, 
online solutions. Passengers increasingly want to do 
more of the preparation themselves, and for them to do 
so, cost-effective information dissemination mech-anisms 
must be available to them,” says CIO Arasnipala 
T Srinivasan, a 30-year airline technology veteran. 
“Mobility has finally offered that opportunity.” 
Qatar Airways has developed mobility solutions 
across the entire spectrum of its business: apps for 
empowering passengers and productivity- and 
service-enhancing apps for the cabin and flight crews 
and for a wide range of airport personnel and other 
employees. 
The term “mobility” was not part of the lexicon until 
recently, but the basic business advantage was clear. “As 
the iPad and other mobile devices became more reliable 
and robust over the past four years,” Srinivasan says, “we 
realized that we could provide our mobile workforce with 
a high level of information capture in real time.” 
Qatar Airways’ consumer apps have been welcomed 
and used widely by passengers. The initial offering 
allowed customers to view schedules, book a flight, check 
in, and check flight status — capabilities that are now 
being further enhanced. 
The airline’s solutions for its mobile workforce — 
cabin crew and pilots — consist of iPads that offer 
real-time information to help employees discharge their 
responsibilities more efficiently and effectively. Initially, 
these efforts were focused on elevating the customer 
experience — something Qatar Airways was already 
known for — to a whole new level. 
For example, when a flight is boarded and the door is 
about to close, a ground operations team member 
previously stepped onto the plane and handed the flight 
attendant a sheet of paper listing all passengers, seat by 
seat, and basic information such as special meal requests 
or medical needs. Two years ago, Qatar introduced 
Qruise, an app for the iPad that automatically provides 
detailed passenger information to the cabin crew. 
Instead of simply a name and a meal preference, the 
mobile app contains a deep well of data about each 
customer, especially first-class and business-class flyers, 
whom the airline ensures receive unparalleled service. 
Qruise is an office in the air for the cabin crew. Today, 
Qatar Airways deploys around 500 iPads and iPad Minis 
across its 130-aircraft fleet. 
Qatar Airways is also rolling out the iPad to its 2,000 
pilots, giving them a single device for all flight-related 
information. The company created an app called Qloud 
that will ultimately become an EFB (electronic flight bag) 
approved by the FAA as an integral Class 1 flight 
instrument. With it, pilots can, for example, check in for 
the flight, observe schedules and weather conditions at 
destination airports, meet the flight’s crew, and even 
obtain details on hotels where they will be staying in the 
cities they will be flying to. 
“The idea is to remove as much paper and 
documentation as we can from the flight deck,” 
Srinivasan says, “which not only leads to better decision 
making for the pilots, because they have the data at home 
or anywhere in the world, but also reduces weight on 
flights and enables data preservation.” 
Airport operations have also benefited immensely 
from mobility solutions. For example, Qatar’s dispatch 
functions — the so-called “red caps” who are accountable 
for on-time departures — have a prodigious task in a 
fluid environment. On a given shift, a red cap is 
responsible for multiple flights and must move around 
the airport overseeing many activities: baggage loading 
and unloading, fueling, following the status of
16 CIO Straight Talk 
“The idea is to remove as much paper 
and documentation as we can from the 
flight deck, which not only leads to better 
decision making for the pilots, because 
they have the data at home or anywhere 
in the world, but also reduces weight on 
flights and enables data preservation.” 
passengers, and staying abreast of maintenance on the 
planes. In the past, this person was armed with a 
walkie-talkie and loads of paper. 
Today, all the information on every aspect of every 
flight is updated in real time on Galaxy Tab tablets, and 
the red cap receives alerts when there’s a problem. “Now, 
it’s really management by exception as opposed to 
management by calling and sharing and handling finite 
pieces of paper that become irrelevant in five minutes 
because the status has changed,” Srinivasan says. 
To enhance productivity and employee self-service, 
Qatar Airways has developed a Corporate App Store that 
allows employees to download apps onto their personal 
devices. The Souq app, which provides details of 
corporate discounts, is popular with employees. Apps 
like Staff Check-in and MyGems allow employees to 
check in seamlessly, receive corporate messages, and 
view personal information while on the move. 
“It’s critical to note that Qatar Airways is a 24/7 
operation,” Srinivasan says. “The airline’s home and hub 
at Hamad International Airport is always open. This 
adds a whole other dimension to our operations. The 
mobile technology must be able to support this.” 
“Though it hasn’t been an easy task,” he says, “it has 
been a huge delight making mobile technology 
applications that take flight.” 
Walmart: An Adaptable App That 
Changes with Customer Needs 
Three years ago, Walmart launched a mobile app that 
fundamentally changed the way the company does 
business. The application looks like a typical e-commerce 
app on a user’s smartphone — most of the time. 
But when a customer enters a Walmart store, the app 
morphs into something very different. Using the location 
of customers who activate the in-store feature, the app 
provides promotions, prices, and other information 
specific to the store where they are shopping — for 
example, the exact location of an item on the customer’s 
shopping list or the price of the item in that particular 
store. 
At a time when some retail chains were blocking 
customers’ in-store Internet access — to prevent them 
from pricing and checking out a physical item and then 
purchasing it from an online competitor — Walmart’s 
Store Mode encouraged people to use their phones while 
roaming the aisles. Of course, the app also made it easy to 
order an item at Walmart.com if it was not available in 
the store. 
Although in-store apps are now relatively common 
among large retailers, Walmart was the first chain to roll 
one out nationally. 
What led to this new twist on the mobile app? And 
does Walmart’s approach to developing the app hold 
mobility lessons for other companies, whatever the 
industry? 
“It sounds trite, but when we think about innovation, 
we truly do so with the customer in mind,” says Gibu 
Thomas, Senior Vice President of Mobile and Digital at 
Walmart. A mobile app, he says, provides “an 
opportunity to get the right information to the customer 
at the right time.” 
Indeed, Thomas says, his team saw smartphones as 
having the potential to create a consistent connection 
with customers. The devices could close the gaps in a 
fragmented series of interactions that for the most part 
had been limited to a customer’s engagements with 
salespeople in the store and with Walmart’s website 
when a customer happened to be on a computer at home 
or work. 
The problem with the smartphone, though, was the 
size of the screen, which would have to accommodate not 
only the features available on the large-screen desktop 
site but also additional in-store features. 
As is often the case, what seemed at first like a 
constraint actually presented new possibilities. “We said 
to ourselves, ‘Wait a second. This actually isn’t a 
constraint. Or it’s one we can make an advantage, 
because this smartphone can provide us with context on 
where the customer is,’” Thomas explains. “Instead of 
providing on the screen a menu of all the features of the 
app, which the customer may or may not care about, we 
decided to offer a contextual experience that’s tailored to 
where the customer is.” 
“The simplest way to figure out if a customer was in a 
store or not was ‘geo-fencing’ every one of our stores,” he 
says. “Because of the location capability of the device, we 
were able to trigger the knowledge that you’re in the 
store. And the app interface would automatically 
Arasnipala T Srinivasan, CIO, Qatar Airways
16 CIO Straight Talk 
transform itself to display capabilities that only matter to 
you when you’re there.” The broader set of capabilities 
that customers wouldn’t care much about when they 
were in the store would still be available on the app; they 
just wouldn’t clutter up the screen. 
This move was driven by an empathetic 
understanding of what kind of experience would work for 
customers. What does Thomas think might have resulted 
if he and his team, in developing the mobile app, had 
strayed from their focus on customer needs? 
They might have tried to emulate the mobile apps of 
competitors, particularly pure-play e-commerce retailers 
like Amazon. But that would have been a distraction 
from Walmart’s strategy of capitalizing on the hybrid 
business opportunity that exists at “the intersection of 
digital and physical” — a strategy fully realized in the 
Store Mode app. 
Or they might have tried to pursue the amazing 
marketing opportunity that connected customers 
represent by sending lots of messages. “But bombarding 
customers with messages in the hope that they will buy 
more isn’t going to work, because customers are smart 
and they have alternatives,” Thomas says. 
They might even have tried to do right by the 
customer, offering the full array of capabilities that the 
smartphone enabled. “We could have said, ‘Whether the 
customer is in the store or not, we want to give him 
access to all of these capabilities. So let’s jam the screen 
with as many small buttons as possible.’ But customers 
would end up so confused and overwhelmed that they 
wouldn’t use the app. Or they’d see a capability on their 
screen — say, the Scan & Go feature, which allows them 
to scan their items with their phone as they shop and 
then breeze through checkout — wonder what it was, try 
it at home, and then say, ‘Why did you show me this if I’m 
not in a store?’” 
This empathy for what a customer feels and 
experiences has resulted in a wildly successful app, one 
that offers not just convenience but engagement. 
Walmart doesn’t give exact figures, but reports are 
that millions of people have downloaded the app. More 
than 50% of traffic to Walmart.com now comes from 
mobile devices. Nearly 85% of smartphone users — about 
half of Walmart customers in the U.S. and the U.K. own a 
smartphone — use their phone while shopping in a store. 
According to Walmart’s own internal research, 
customers with the app make up to two more shopping 
trips to Walmart stores and spend nearly 40% more each 
month – an indication that keeping the focus on 
customers — whether they be Walmart’s shoppers or the 
employee users of mobile devices in your organization — 
is key to the success of a mobility initiative. 
Société de transport de Montréal: 
Turning Mobility into Revenue 
Public transit, so often ridiculed and scorned by harried 
passengers, may seem to be an unlikely source of digital 
innovation. But the Montreal transit system — Société de 
transport de Montréal, or STM — is leveraging mobile 
computing and the system’s vast customer base to 
generate significant new streams of revenue. 
STM is the fourth largest public transportation 
system in North America, with 1.5 million daily riders, 
who account for more than 400 million trips per year on 
the city’s 250 bus lines and through its 68 subway 
stations. Fully 65% of the residents of this cosmopolitan, 
dual-language city are regular riders who have embraced 
the clean and efficient system as a preferred method of 
transportation. 
To increase ridership and offset the 13% who 
abandon the system each year because they move away, 
change jobs, or die, STM focuses not only on improving 
service but also on enhancing the customer experience in 
innovative ways. As part of that effort, STM has offered 
mobile solutions to its customers for more than five 
years, starting with notifications of bus and subway 
delays on riders’ mobile devices. 
But recently, STM decided to get serious about 
mobility and launched an ambitious loyalty program for 
its riders using mobile technology developed with SAP. 
Unveiled in late 2013, the Merci ( Thank You) program is 
the first such rewards program offered by a public transit 
system, and it is already paying big dividends. 
Merci is a mobile app that provides STM riders with 
not only a steady flow of information but also special 
offers from local retailers and event venues. The 
information is pumped out to iPhones, iPads, and 
Android devices in real time and is geo-located so that it 
is targeted at individuals on the basis of their current 
location. 
“Instead of providing on the screen a 
menu of all the features of the app, 
which the customer may or may not 
care about, we decided to offer a 
contextual experience that’s tailored 
to where the customer is.” 
Gibu Thomas, Senior Vice President of 
Mobile and Digital, Walmart
16 CIO Straight Talk 
“We send you things that are extremely relevant to 
you because we’ve asked you what you like,” says Pierre 
Bourbonniere, STM’s chief marketing officer. “We send 
you things that are relevant to you based on where you 
are located. If you are at the corner of Mount Royal and 
Ste. Catherine streets, we will send offers from the local 
shops, restaurants, bars, and events that are happening 
now, today.” 
“This loyalty program doesn’t give points,” he adds. 
“It is based on instant gratification.” 
The program also takes into account frequency of 
use, so the most loyal and high-usage customers are 
offered better deals, such as free tickets to an opera or 
ballet, while those who use the system less often might be 
offered a 50% discount. 
STM views the Merci program as a major success, 
with more than 50% of Opus card holders signing up. 
The program has had a positive effect on their behavior. 
According to Bourbonniere, 24% of riders using Merci 
increased their use of public transit; 57% discovered new 
destinations by public transit, either shopping or event 
related; 43% are using public transit for new reasons, 
other than, say, getting to work or school; and 47% are 
taking a friend along. 
But the Merci program has done more than 
strengthen customer loyalty. It has also proven to be a 
potent source of non-fare revenue for STM. Partners in 
the program provide the rewards at no charge to STM. 
Indeed, they pay an entry fee to be part of the program 
and additional fees for usage. Bourbonniere estimates 
that the program will generate $15 million in revenue for 
STM over its first three years and then blossom into an 
annual $50 million bonanza after that. 
“If you are at the corner of Mount 
Royal and Ste. Catherine streets, we 
will send offers from the local 
shops, restaurants, bars, and events 
that are happening now, today.” 
Pierre Bourbonniere, Chief Marketing Officer, 
STM 
So what can we learn from the experiences of these 
companies? How can mobility – one of the quartet 
of concepts that comprise the “SMAC stack” 
(Social, Mobility, Analytics, Cloud) and a 
front-of-mind area of interest for CIOs – actually 
create value for companies? 
A few themes emerge from these stories: 
• Mobility has the potential to transform and 
streamline existing business practices, such as 
account management, sales, and marketing, 
leading not only to significant productivity gains 
but also increased revenue streams. In fact, 
mobility initiatives themselves can become 
lucrative sources of revenue. 
• Mobility initiatives require forward momentum 
in order to bring the organization along. 
• Coordinated pilot programs can help ensure the 
rapid and successful rollout of such initiatives. 
• Corporate-wide mobility governance teams, 
overseen by IT but including business unit 
representatives, can smooth the path for 
enterprise mobility initiatives. 
• Although BYOD is a much-cited element of 
enterprise mobility, CIOs needn’t officially 
sanction BYOD in order to implement successful 
mobility initiatives. 
• Security remains perhaps the most significant 
challenge for CIOs seeking to embrace enterprise 
mobility. 
Although there are no fool-proof prescriptions 
here, heeding the lessons these companies offer 
may make a difference for an organization trying to 
make enterprise mobility a reality.
HIGHLIGHTS FROM ISSUE NUMBER 4 
7 Things CIOs Are 
Doing to Get Ahead in the DIGITAL ECONOMY 
PLUS: 
Experience Talks | The End of IT Innovation | The CIO’s Choice | Other Voices 
ALSO IN THE ISSUE: 
Straight Talking: 
Actionable insights from CIOs of Consumers Energy, Covance, SAP Americas, Vanguard Health 
Systems, and other forward-looking companies 
View from the Technology Blogosphere: 
Robert Scoble on The “Age of Context” 
Points of View: 
New-Age Outsourcing: Five outsourcing advisors describe emerging models 
Go to: magazine.straighttalkonline.com/issue4
www.straigthttalkonline.com Issue Number Straight Talking 
The Colorado State Capitol, located in Denver, was constructed in the 1890s from Colorado white granite, with a 
gold-plated dome that commemorates the Colorado Gold Rush of 1859. Today, the state is a growing center for 
high-technology companies. 
13 CIO Straight Talk
www.straigthttalkonline.com Issue Number 5 
Successfully tackling an IT problem of enormous complexity on a 
massive scale isn’t easy but can yield tremendous benefits — in 
this case, making a difference in the lives of hundreds of thousands 
of Colorado citizens. 
20 CIO Straight Talk 
The ROI of Hard Work 
Kristin D. Russell 
POSITION: Former Secretary of Technology and Chief Information 
Officer 
COMPANY: State of Colorado 
WORKS FROM: Denver, Colorado 
PROFESSIONAL BACKGROUND: In February 2011, Kristin 
Russell was appointed by Colorado Governor Hickenlooper to 
serve as the state’s Secretary of Technology and Chief 
Information Officer. In those roles, which she held until May 
2014, she led IT economic development for the state, promoted 
Colorado as a location for technology companies, and oversaw 
all information systems statewide. Prior to joining the 
Governor’s Office, Russell was the Vice President of Global IT 
Service Operations at Oracle, where she was responsible for all 
data centers and computing operations worldwide. She also 
served as the Vice President of Global IT Operations for Sun 
Microsystems, where she led the team that provisioned IT 
solutions and services to Sun’s extended enterprise, supporting 
more than 40,000 Sun employees and partners around the 
globe. Russell has also held roles in customer management, 
statistical process control analysis, and training and 
development at Citigroup and Southern Pacific Transportation 
Lines. She was named the public sector and nonprofit CIO of the 
year in 2013 by the Denver Business Journal and a Top 10 
Breakaway Leader by the Global CIO Executive Summit. In June 
2014, Russell became a Director with Deloitte Consulting. 
EDUCATION: BA, University of Colorado; Colorado Executive 
Development in Residence program 
PERSONAL PASSIONS: Family, fitness, and food
16 CIO Straight Talk 
Recently, I decided to leave my job as Secretary of 
Technology and Chief Information Officer for the 
Colorado Governor’s Office of Information Technology 
to join Deloitte Consulting. While most people don’t 
question my return to the private sector, I do get asked 
quite frequently why I ever decided to leave a successful 
career in the private sector to work in the public sector in 
the first place. 
The truth is that I certainly wasn’t looking to make 
that move when I got the call from Colorado Governor 
John Hickenlooper’s transition team, in early 2011. I was 
on my way back from Tokyo when a fellow tech leader 
who was helping the Governor recruit the state’s new 
dual CIO and Secretary of Technology called me. He told 
me about the position — I would be responsible for all the 
technology systems across the executive branch. I would 
be on the Governor’s cabinet, and I would lead the state’s 
IT economic development strategy. I would be known as 
Madame Secretary. 
I politely told him, “I don’t do public sector, I don’t 
know what a cabinet is, I don’t want to be a secretary, and 
I never want to be called madame!” 
I have to admit, however, that I was intrigued. Like 
many of you, I had heard the stories about government 
waste, bureaucracy, and politics, not to mention the 
significant pay cut. Still, I thought I’d go ahead and meet 
with the Governor and his team to hear what they had to 
say. After that, my plan was to shut them down. 
Governor Hickenlooper’s first question was, “Why do 
you want this job?” Knowing that I didn’t, I turned the 
question around and asked him, “Governor, if you were 
me, why would you consider this job?” 
He leaned across the desk and said, “It’s about 
meaningful work.” He pulled out a collection of poems 
and began to read “To Be of Use” by Marge Piercy. {See 
the sidebar} 
It moved me. I thought about what it would be like to 
do really meaningful work. I suddenly went from “Why 
would I want to take this job?” to “How can I not?” 
Whether at Oracle or Sun Microsystems or Citigroup, 
I’ve taken jobs for three reasons: to work with great 
people, to learn, and to help. 
Becoming the CIO of the state of Colorado met all 
three criteria in a big way. 
Fixing the Broken Pieces 
In a public-sector role, you’re in the spotlight. You 
typically have two phones, one for personal use and the 
other for work, your e-mail is subject to open review by 
anyone upon request, and your every move is publicly 
scrutinized. In a private company, you go in for a 
performance review in front of your peers and your boss. 
Here, you sit before a legislative committee and 
everything you say is streamed to millions of people. 
It’s an adjustment — and one that began right away 
for me. Within five minutes of the announcement of my 
appointment, I got a call from a reporter at the Denver 
Post. He had been covering the problems plaguing the 
Colorado Benefits Management System, or CBMS, for 
more than seven years. The first words out of his mouth 
were, “How are you going to fix it?” 
It was a huge problem. Back in 2004, state leaders 
wanted to consolidate the multiple systems supporting 
state benefits and welfare programs into one massive 
system in order to help citizens quickly and easily 
determine their eligibility for more than 100 programs. It 
was a great idea aimed at helping the state’s most 
vulnerable population. But the project was doomed from 
the start. It didn’t receive adequate funding. Four 
I thought I’d go ahead and meet with 
the Governor and his team to hear 
what they had to say. After that, my 
plan was to shut them down. 
Colorado Gov. John Hickenlooper convinced... 
...Kristin Russell to do a stint in public service, as head of 
the Office of Information Technology, where her... 
...first big challenge was sorting out the problems of the 
Colorado Benefits Management System.
pilot counties deemed the new system unworkable. Yet it 
went live anyway. 
CBMS’s troubles continued, and the state was forced 
to pay millions of dollars in sanctions to the federal 
government for food stamp overpayments. In 2010, just 
six months before I joined, the system collapsed under 
increased loads because of the recession and was down 
for 15 hours in a single month. Inside the government, 
CBMS was known as “C and B, Our Mess.” A federal audit 
of the system in 2011 cited serious problems that could 
have resulted in a loss of federal funding. Numerous legal 
cases had been brought against state agencies, and 
Colorado settled a lawsuit brought by an advocacy group 
over benefit delays and wrongful denials of benefits that 
affected nearly one quarter of a million enrollees. The 
system was a matter of life and death for many Colorado 
residents. 
I knew I could be of use. I wanted to make sure that 
CBMS was no longer a four-letter word. But, as Marge 
Piercy’s poem had said, that meant I had to “strain in the 
mud and the muck to move things forward,” to “do what 
has to be done, again and again.” 
Technology Problems Are People Problems 
The first committee meeting I attended was hostile. 
There had been a series of promises and attempts under 
two separate administrations to fix CBMS, but nothing 
had worked. People told me nothing ever would. 
I went out to several counties myself and sat down 
with people to understand their experiences. They would 
hit a button and go to lunch, hoping the system would be 
working by the time they got back. I hired a CTO, also 
from the private sector, to take a deep dive into the 
29 CIO Straight Talk 
It’s easy when there are problems 
with big IT projects in the public 
sector to point the finger at the 
vendor. We didn’t do that. 
bottlenecks. There was also no governance around the 
system. The agencies, departments, and counties that 
used it were fighting. 
I always say, “Technology is simple. People are hard.” 
My job was to demonstrate that we understood what the 
problem was and that we could fix it. 
We needed to bring everyone to the table to make the 
tough decisions about what we were going to do. We 
created an executive steering committee for CBMS, 
which was made up of the Executive Directors of the 
agencies, representatives from the Governor’s Office, 
county leaders, and me. We set up structured processes 
for how often we would meet and how we would make 
decisions. We drew pictures to show everyone exactly 
why the system wasn’t working and what we could do 
about it. The joint budget committee stuck its neck out to 
give us funding. And we created our first 18-month plan, 
focused largely on turning around the failed system. We 
set up data and metrics of what success would look like. 
Every quarter we reported back on what we had 
accomplished and what our next steps would be. 
Increasingly, companies recognize the value that a CIO can 
bring beyond delivering and managing enterprise systems. 
Some take on additional responsibilities in, for example, HR, 
digital marketing, operations, or strategy. 
In the state of Colorado, I wasn’t just the CIO. I was also 
the Secretary of Technology. Governor Hickenlooper clearly 
sees technology as a huge driver of economic growth, today 
and in the future, for the state of Colorado. We’re creating a 
public-private ecosystem that enables entrepreneurship and 
innovation to grow naturally. Our goal is to change how the 
state looks at itself and how technology companies and 
professionals look at the state. 
As the CIO, it’s a natural fit. A few years ago, I started the 
IT Economic Development advisory council, which has 
executive members from across Colorado’s technology 
community. We discuss what it’s like to manage a technology 
organization in Colorado and what we are doing to improve 
Colorado as a place to do business. 
We also reach out to Colorado’s technology companies to 
thank them for their business and commitment to the state. 
Colorado’s a great place to attract talent. It draws in people 
because of its natural beauty, entrepreneurial spirit, and 
business-friendly climate. We like to say that Colorado is a 
place where you can live, work, and play. Politically speaking, 
we’re a third Independent, a third Democrat, and a third 
Republican. That requires a collaborative environment that 
translates to trust and stability for businesses long term. 
We’ve had more than 17,000 new tech job 
announcements since we started. We’re doing amazingly 
well with the start-up community by bolstering our 
epicenters for entrepreneurship. Boulder has the most 
start-ups per capita of any city in the country, according to a 
study by the Kauffman Foundation and the Engine research 
group, with Fort Collins-Loveland in second position, Denver 
sixth, and Colorado Springs ninth. 
As much as my CIO role fueled my position as Secretary 
of Technology, the benefits also flowed the other way. As a 
result of being out among leading technology companies, I 
was very aware of what was going on and what cool new 
projects and solutions were coming to market. That kept my 
eyes open as I helped shape the technology strategy for the 
state. 
The Benefits of a Dual CIO Role
Colorado Governor John Hickenlooper’s efforts 
to convince Kristin Russell to be the state’s 
Secretary of Technology and Chief Information 
Officer included reading her this poem. 
To Be of Use 
By Marge Piercy 
The people I love the best 
jump into work head first 
without dallying in the shallows 
and swim off with sure strokes almost out of sight. 
They seem to become natives of that element, 
the black sleek heads of seals 
bouncing like half-submerged balls. 
I love people who harness themselves, an ox to a 
heavy cart, 
who pull like water buffalo, with massive patience, 
who strain in the mud and the muck to move things 
forward, 
who do what has to be done, again and again. 
I want to be with people who submerge 
in the task, who go into the fields to harvest 
and work in a row and pass the bags along, 
who stand in the line and haul in their places, 
who are not parlor generals and field deserters 
but move in a common rhythm 
when the food must come in or the fire be put out. 
The work of the world is common as mud. 
Botched, it smears the hands, crumbles to dust. 
But the thing worth doing well done 
has a shape that satisfies, clean and evident. 
Greek amphoras for wine or oil, 
Hopi vases that held corn, are put in museums 
but you know they were made to be used. 
The pitcher cries for water to carry 
and a person for work that is real. 
we had accomplished and what our next steps would be. 
It’s easy when there are problems with big IT projects 
in the public sector to point the finger at the vendor. We 
didn’t do that. Instead we worked closely with people at 
the vendor to restructure the relationship, to give them 
more accountability and a stake in the outcome. I think it 
helped that I came from the private sector and could 
understand their frustration about not being able to talk 
with people who understood what they were trying to do. 
Things started to turn around. 
It was a lot of listening, communicating, setting 
expectations, being transparent, and following through. 
It’s basic stuff, but sometimes it doesn’t happen. 
A Foundation for the Future 
By the time I left, we were meeting standard timelines to 
determine benefits eligibility approximately 90% of the 
time. More than 95% of CBMS transactions were 
happening in less than four seconds; our original goal 
was 80%. We also reduced help desk tickets by 35% and 
improved system performance by 30%. 
Those are great numbers. But the thing that made us 
most proud was seeing the actual results — the residents 
of Colorado getting the benefits they so desperately 
needed. 
It was a lot of listening, 
communicating, setting expectations, 
being transparent, and following 
through. It’s basic stuff, but 
sometimes it doesn’t happen. 
And the CBMS project created a solid foundation, 
both from a technology and a governance point of view. 
We took the governance structure created for this project 
and expanded it for use with all major IT projects, and we 
moved on to our next 18-month plan. The first plan 
focused 85% of our investment on fixing what was 
broken. In our most recent budget request, we inverted 
that: 88% of the budget is for new projects, such as 
PEAK, an online portal that enables Coloradans to apply, 
update, and check on the status of any type of benefit 
online, with anytime, anywhere, any-device access. 
Colorado also was one of a handful of states that 
successfully implemented the Affordable Care Act on 
time and without a hitch. The work we did with CBMS 
ensured our success in this historic effort. 
25 CIO Straight Talk 16 CIO Straight Talk
Every time I take a job, I have a 90-day plan. I write 
an epitaph for what I want to have accomplished when I 
leave. In my Colorado position, I wanted to create an IT 
organization that the state could be proud of, that would 
deliver critical services to the citizens of Colorado. I’ve 
done lots of systems implementations — big, important 
enterprise systems for huge companies. But I’d never 
done anything like this. Yes, it was truly meaningful 
work. 
The Takeaways 
• Public-sector roles can be uniquely 
challenging: As a public official, your 
every move is scrutinized, your 
“performance reviews” might take 
place before a legislative committee, 
and you are apt to inherit — and be 
expected to solve — high-profile 
messes. 
• Technology is simple. People are hard. 
Solving problems that affect hundreds 
of thousands of citizens requires 
listening to their needs and to the 
experiences of the people trying to 
implement the technology, and then 
instituting a rigorous process for 
tackling the issue and defining 
success. 
• It‘s easy when there are problems with 
big public-sector IT projects to point 
the finger at the vendor. It’s more 
helpful to work closely with people at 
the vendor to restructure the 
relationship, to give them more 
accountability and a stake in the 
outcome. 
The ROI 
Under Russell’s leadership, the State of Colorado’s 
Office of Information Technology… 
• Upgraded and transformed the Colorado Benefits 
Management System into a reliable and trustworthy 
system 
• Consolidated more than 15 disparate e-mail 
systems into a single, cloud-based collaboration 
system for the entire executive branch 
• Took the lead in the nation’s first multi-state 
cloud-based unemployment insurance solution 
(WYCAN) 
• Launched the Colorado Information Marketplace 
— the state’s first open, data sharing marketplace 
promoting government transparency, economic 
development, business intelligence, and analytics 
• Began modernizing a 23-year-old financial and 
accounting system that handles in excess of $35 
billion in annual expenditures and revenue 
25 CIO Straight Talk 16 CIO Straight Talk
Straight Talking 
AARP (formerly the American Association for Retired Persons) is a U.S.–based nonprofit, nonpartisan 
organization with more than 37 million members devoted to improving the lives of people over the age of 
50. AARP’s TEK (technology, education, and knowledge) events, like the one pictured here, offer free, 
user-friendly training to older individuals who want to enrich their lives through new technologies. 
23 CIO Straight Talk
When it comes to IT’s potential, a nonprofit organization is no 
different from a business. At AARP, IT employees turned 
themselves from technologists into strategic leaders, transforming 
their department into a source of value for AARP members. 
24 CIO Straight Talk 
Running IT Like a Business . . . 
at a Giant Nonprofit 
POSITION: Executive Vice President and Chief Information Officer 
COMPANY: AARP 
WORKS FROM: Washington, DC 
PROFESSIONAL BACKGROUND: Terry Bradwell, the Executive 
Vice President and Chief Information Officer at AARP, is 
responsible for managing a $100 million annual budget that 
supports all AARP stakeholders, including members, 
volunteers, advocates, donors, external business partners, 
and internal staff. He previously served as AARP’s Vice 
President of Application Services Management. Prior to 
joining AARP, Bradwell was a principal for IBM’s Media and 
Entertainment practice, with a primary focus on turning 
around troubled IT projects and corporate change 
management initiatives. While at IBM, he successfully led the 
turnaround efforts of AARP’s first integrated membership 
management system (Konnex) and established the framework 
for AARP’s Chief Information Officer role. 
EDUCATION: BS, Florida A&M University 
PERSONAL PASSIONS : Family time, travel, playing piano 
Hollis “Terry” Bradwell III 
TBradwell@aarp.org
Many people assume that nonprofit organizations like 
AARP don’t have to run like a business. But even though 
the focus of a nonprofit is the social mission, you’re still 
in the business of delivering on the aspects of that 
mission. There are operations to run, services to deliver, 
customers to satisfy, a bottom line to meet. You’re in the 
business of doing good, but it’s 
still a business. 
And at AARP, it’s a 
multifaceted business. Our 
mission is to equip Americans to 
age with dignity and purpose. 
That covers a broad spectrum of 
services — health care, 
entertainment, employment, 
long-term care, technology. We 
tackle each of those and more, 
and that makes us a very large 
and very complex business. 
I’ve been with AARP since I 
AARP TEK is one of the 
most exciting programs 
to come out of AARP in 
recent years. And it 
came from IT. 
fell in love with its mission 12 
years ago. But when I became 
CIO, in 2011, I saw the 
opportunity to turn around the 
technology organization. The IT 
department had been very tactical in its approach, 
delivering systems as needed with no real long-term 
strategy. Our infrastructure had grown organically over 
the years. And while organic growth works, it’s not 
efficient, and it’s very costly. 
I want IT to run — and think — like a business. We 
run operations. We have customers. We provide services. 
We have a bottom line. You might think we don’t have 
competition. But we have that, too. If we’re not quick or 
agile enough, our customers will turn elsewhere for their 
IT needs. We’re no different than any other company. I 
wanted to provide more value to AARP and become 
much more efficient in delivering our products and 
services to the organization. 
People First 
Whenever you make significant change in a technology 
organization, you have to consider people, process, and 
technology. A lot of IT leaders start with process. But I 
always start with people. People are your most valuable 
assets. Nothing happens without them. I can say that I 
want to run IT like a business until I’m blue in the face, 
but it’s not going to happen until I have these folks on 
board and a new culture embedded in the organization. 
I began this transformation with my leadership team. 
I needed to make sure we were all on the same page. 
Then we could set the right tone with the rest of the 
organization. 
But that’s not as simple as it sounds. We have always 
had a lot of great people in this organization. But when 
you’ve been doing the same things the same way for 
many years, you get comfortable with it. When you try to 
change that, it’s difficult. The default may be to push 
back or stand still. We spent a lot of time working with 
25 CIO Straight Talk 
our leadership team to make sure we all embraced 
common values and beliefs from a business and 
technology perspective. Some of my team came through 
that process, and others did not. It had nothing to do 
with their capabilities or skills. Where we were trying to 
go strategically just wasn’t the right cultural fit for 
everyone. 
Although it wasn’t easy, it 
helped facilitate some of the 
other transformational changes 
we needed to make. Once you 
set a new course with the right 
leadership, it propagates to the 
rest of the staff. Change is still 
hard, but you have a “coalition 
of the willing” working on 
creating the right strategy for 
technology, figuring out the 
best processes, and aligning 
with the business. 
My direct reports and I 
became less like technologists 
and more like leaders of what is 
essentially a $150 million 
business. Technology is what 
we do, but it’s not who we are. We are like a start-up with 
customers to serve, partners to integrate, and services 
that need to be relevant to our customers. And since 
we’re now running IT like a business, we need some of 
the same non-tech skills any company does. For 
example, I hired a marketing and PR professional. It is a 
thankless job. We rarely get attention unless something 
goes wrong. So our IT marketing manager finds 
opportunities to promote IT’s value. 
Strategic Sourcing 
Once we had the people in place, we made an assessment 
of all our technology and services to determine which 
were providing value and which were not. It was a long, 
hard look at our own environment. We uncovered areas 
that were working where we could double down and 
deliver more. We discovered opportunities to tackle 
issues that customers had been unhappy with for years. 
Over the past three years, we’ve decoupled more than a 
decade’s worth of systems and processes that we had 
amassed and, in many cases, replaced them with new 
technology and processes that are more suited for our 
long-term strategy. 
We have taken a similar approach to our outsourcing 
portfolio. We had been doing quite a bit of outsourcing. 
But just as our technology infrastructure grew 
organically over the years, so did our outsourcing. There 
was no long-term focus. 
We took a step back and created an outsourcing 
strategy. We narrowed our partners down from more 
than 30 IT suppliers to just a handful of service providers 
that could do meaningful and purposeful work for us, not 
just handle our spot needs. We get to leverage their
mature processes and the investments they’ve made. 
And, as a result, our service delivery improves and our 
costs go down. 
As a result of that shift in sourcing strategy, the skill 
sets we need have changed. We no longer need to have 
capabilities like development and systems support 
in-house, but we do need experienced vendor managers 
and business solution architects. 
Today, we have four primary partners: HCL for 
application support services, IBM for ERP maintenance, 
CSC for cloud computing, and Ciber for project 
management and analytics. It’s all work that we could 
certainly do for ourselves. But if we did, it would mean 
spending 80% of our time supporting day-to-day 
operations and only 20% planning for the future. I 
wanted to flip that. Our partners are doing very 
important work that we couldn’t afford to provide. And I 
can take the money that I save and invest it in even 
higher value work. We can spend our time working 
closely with the business to plan for the future. 
IT Takes Center Stage 
Having those partners to rely on has freed up our IT 
organization to identify areas of the business where we 
can bring new and innovative services to the table in 
order to enhance the value of AARP’s mission — in ways 
that even the business hadn’t considered before. 
In the past, we were viewed by the rest of the 
organization as strictly an operational group behind the 
scenes. But I want IT up on that stage. We can deliver 
more value than just CRM or ERP or ECM. We can 
25 CIO Straight Talk 
deliver value to our membership at large. 
A great example of that is our AARP TEK Pavilion 
initiative. TEK stands for technology, education, and 
knowledge, and the program offers free, hands-on 
training to seniors who want to learn how to use 
consumer electronics, computers, and social media to 
enrich their lives. 
Today, 20% of Americans have yet to get online — 
and half of those folks are age 65 or older. Yet being 
online is an imperative in the 21st century, whether 
you’re trying to rent a movie or do your banking. We saw 
an opportunity within IT to create a program to educate 
our members about technology. We worked with our 
major vendors, including Microsoft and AT&T, to 
provide us with sponsorships, equipment, and 
storefronts for the nationwide program that we are 
launching in 60 markets this year. 
The program has elevated IT’s status and gotten us 
out of the back room as we’ve engaged with every major 
function within the organization, from marketing to 
membership, to get the AARP TEK program off the 
ground. It’s one of the most exciting programs to come 
out of AARP in recent years. And it came from IT. 
Now that we’ve done a lot of the heavy lifting 
regarding the IT transformation, the goal is to make sure 
that what we do has business impact, whether it’s new 
capabilities we’re rolling out like single sign-on or the 
effort we’re making to provide 100% systems access via 
mobile devices. 
We’ve set the stage. All the players are here. The 
curtains are open. It’s show time. 
• Running IT like a business, instead of a 
support function, requires a shift in 
mind-set: IT has customers and a bottom 
line. It also has competition. To remain 
relevant to customers, IT needs some of the 
same non-tech skills any company does, 
such as PR and marketing professionals 
who can find opportunities to promote IT’s 
value. 
• Any leader transforming a technology 
organization must consider people, 
process, and technology. A lot of IT leaders 
start with process. But no new process will 
be effective unless the people are all on the 
same page. 
• Left to develop organically, an outsourcing 
portfolio may lack a long-term focus. 
Instead of turning to outsourcing partners 
on an ad hoc basis, as needs arise, 
companies should be thinking in terms of an 
outsourcing strategy, choosing partners 
with processes and skill sets that can 
support strategic goals. 
The Takeaways
Straight Talking 
Headquartered in North Sydney, Australia, WorleyParsons is a global provider of professional services to the 
resources and energy sectors, including the design, engineering, and operation of offshore oil and gas production 
platforms, such as the Bayu Undan facility in the Timor Sea (pictured here). The company has 166 offices in 43 
countries. 
13 CIO Straight Talk
Being a CIO today requires a whole new set of skills and traits. Here’s a 
starter list from a CIO with an unusual perspective on the job. 
20 CIO Straight Talk 
Seven Habits of the 
Highly Successful CIO 
Brian Adams 
POSITION: Chief Information Officer and Director of Procurement 
COMPANY: WorleyParsons 
WORKS FROM: Perth, Australia 
PROFESSIONAL BACKGROUND: Brian Adams is in his eighth 
year with WorleyParsons, where he is the Global CIO and 
Director of Procurement. Previously, he was the CFO for 
Australia and New Zealand, having joined the company as the 
Director of Strategy and Development for that region. Adams 
has spent over 20 years in senior international roles with 
well-known companies, such as Caterpillar and Ernst & Young. 
His career spans Australia, Africa, Asia, and Europe. Adams is a 
Fellow of the Council of Guildford Grammar School and is a 
graduate of the Australian Institute of Company Directors. 
PERSONAL PASSIONS: Snow skiing, saltwater fishing, 
motorcycles (he once rode a British Royal Enfield, made in 
India, back to England from a work assignment in Calcutta), 
raising money for Future Hope (www.futurehope.net) 
Brian.Adams@WorleyParsons.com
A wise man once said to me, “Brian, there are only two 
types of people in the world: the maintainers and the 
changers.” I’ve always chosen to be a changer. 
Most of my career steps have reflected my desire to 
round out gaps in functional and operational expertise. 
I’ve had marketing, services, manufacturing, and finance 
roles. I’ve worked at companies ranging from Caterpillar 
to a mining consultancy to Ernst & Young. 
But when I talk about myself as a changer, I don’t just 
mean in my career moves. I’ve also actively sought roles 
that provide fantastic change management challenges. 
When I joined WorleyParsons eight years ago, I first 
managed strategy and development for the Australia and 
New Zealand region and then I led the regional finance 
group as the regional CFO. 
In that position, I was forever poking sharp sticks at 
the IT function, not because they weren’t doing a good 
job, but because they were not 
engaged with the business. 
They were like maintainers. If 
there’s one thing that has 
become apparent to me from 
my years outside IT looking in, 
it is that IT must be an 
organization of changers. The 
enterprise of the 21st century 
— an era that is (as they say in 
the military) “VUCA”: volatile, 
uncertain, changing, and 
ambiguous — requires an 
innovative, strategic, and 
business-aligned IT function. 
Our CEO at the time agreed. 
And he turned me from 
poacher into gamekeeper, 
giving me my first CIO role. 
I believe this varied 
If there’s one thing that 
has become apparent to 
me from my years outside 
IT looking in, it is that IT 
must be an organization of 
changers. 
background provides me with an interesting perspective 
on the capabilities that a CIO needs in order to succeed in 
this new world. We are at a tipping point, and the 
traditional CIO has to change to meet the demands of the 
business. If that doesn’t happen, there’s going to be a lot 
of turnover in the position. As I’ve settled in to this latest 
leadership challenge, I’ve put together a list of the skills 
and traits I believe are critical for CIOs leading IT 
organizations today. 
1. Take a Walk on the Non-IT Side 
I’ve had a long career outside the walls of IT, which has 
proven invaluable in my current CIO role. All too often, a 
CIO will have worked his or her way to the top of what 
was traditionally a technical function, without a 
well-rounded knowledge of the business and with little 
ability to comprehend the complexity of how an 
organization works. I believe that any IT leader who can 
spend significant time in non-technology roles will 
benefit. 
Giving promising IT folks the opportunity to rotate in 
and out of IT to instill that understanding of the business 
21 CIO Straight Talk 
is a great idea. In fact, such rotations are a great idea for 
employees in any central business-enabling function, 
whether IT or finance or HR. In reality, however, it can 
be difficult to implement. Taking a purely technical 
professional and finding him or her a role in finance or 
HR or procurement or manufacturing might not work. 
Once you get to the more senior levels of the IT 
organization, it’s a bit easier. 
But a few progressive companies, like my former 
employer, Caterpillar, are showing how this can work. 
They do a fantastic job of moving people throughout 
various functions so that when they get to the executive 
level they understand how all the parts come together. 
That’s what a CEO wants in a CIO. That’s what a CEO 
wants in any strategic executive. If you’re too 
functionally specific, you won’t last long. A CIO who’s 
spent 20 years in IT probably isn’t capable of having a 
conversation about anything 
other than IT. 
2. Be Business Curious 
A CIO who’s a changer, not a 
maintainer, needs the 
intellectual curiosity that leads 
him or her to question how the 
business works. He or she needs 
the desire to understand what 
makes the business tick — even 
more than what makes IT tick. 
Where is the money made? 
Where is the money lost? Where 
are sales made? Where are sales 
lost? What makes employees 
more productive? What makes 
employees less productive? 
Those are the questions that 
should be top-of-mind — not, how do I optimize my 
storage? 
I meet CIOs who get turned on by technology but not 
by the business. That doesn’t work if you want to be a 
business-aligned CIO. 
3. Speak English 
Traditionally, the successful CIO was a technical expert. I 
am not. And I am happy to raise my hand and say, “I have 
no idea what that means. Can you explain it to me in 
layman’s terms?” There is no greater Jedi mind trick for 
making someone fall asleep than to talk about servers, 
storage, or — God forbid — network uptime. Unless you 
can translate the tech speak into the language of the 
business, being a technical expert can be a hindrance to a 
CIO today. Yes, you need a fundamental understanding 
of technology so some IT guy or vendor doesn’t pull the 
wool over your eyes. But a successful CIO will talk in 
terms of what IT can do for the business to enable it or 
differentiate it or come up with differentiated product 
solutions. Companies today don’t need a CIO who’s a 
chief infrastructure officer. They need a CIO who’s a chief
All too often, a CIO will have 
worked his or her way to the top 
of what was traditionally a 
technical function, without a 
well-rounded knowledge of the 
business and with little ability to 
comprehend the complexity of 
how an organization works. I 
believe that any IT leader who 
can spend significant time in 
non-technology roles will 
26 CIO Straight Talk 
innovation officer. They don’t care how you’re going to 
configure your servers to optimize your networks. They 
care about your ability to bring about change. 
4. Have the Courage of Your Convictions 
There are still plenty of organizations that assume a CIO 
or IT manager ought to just do what he or she is told to 
do. But the new CIO must resist being put inside that 
order-taking box. It takes a fairly strong character to 
confront and overcome some of the pushback you get 
from the business without alienating them. It’s 
absolutely necessary. 
When banks asked customers if they’d like ATMs, 
they said, “Hell no!” When Apple asked customers if 
they’d like an iPad-sized tablet, they couldn’t see the 
value in it. But banks built the ATMs. Apple developed 
the iPad. And the rest is history. 
A CIO needs to do that sometimes — push past 
resistance to introduce systems or processes that they are 
convinced will have value to the business. I recently 
introduced a new communication and collaboration 
platform. When I talked to people about it, their eyes 
glazed over. They didn’t want an internal social network. 
But we pushed ahead, and now it’s widely used, creating 
fantastic value for the business. 
5. Learn Your Financial ABCs 
Traits like the desire to understand how the business 
works or to stand up for the value of IT may be somewhat 
innate. You either have them or you don’t. There are 
other equally valuable skills that take a bit more effort to 
acquire. Having a solid financial understanding falls into 
the latter category. 
You must be able to create a compelling business case 
for anything you want to do. Modern CIOs have to be 
commercially savvy about return on investment or they 
will continue to struggle to convey the value of 
technology. If you aren’t commercially and financially 
savvy, IT will never be considered a strategic 
differentiator in the business. It will be thought of as just 
another budget item to manage. 
6. Get to Know the Other Functions 
Clearly, it’s important to build strong relationships with 
the CEO and COO, whose support you will need for your 
initiatives. But it’s also critical to have good relationships 
with all corporate functions. Going beyond just 
delivering what the function traditionally wants is what 
we all need to aim for. When talking to Finance, don’t 
just think of the systems that you need to deliver for 
accountants; think of how you can help Finance provide 
valuable commercial insight that will help the business 
make better decisions. When talking to HR, don’t just 
think of the traditional systems of compensation and 
benefits; think of what you can do as CIO to make 
employees not only more productive but happier in 
benefit. 
carrying out their work, thereby helping recruitment and 
retention. When talking to the CMO, help him or her 
figure out how to gain access to new markets and 
demographics using social tools, instead of just 
supporting the corporate web site. 
7. Think Strategy First 
Many CIOs and IT leaders are smart tactical problem 
solvers. But a CIO today needs to be capable of having a 
high-level, strategic conversation about where the 
company is going. It makes sense for a CIO to be part of 
the CEO’s strategic growth team. After all, in today’s 
digital enterprises, there is a strategy piece in everything 
that IT does. Technology is a critical component to the 
long-term strategy of the organization. 
Many CIOs can’t have that conversation; they’re not 
even invited to that conversation. They’re incapable of 
discussing how to raise market share or how to adjust 
pricing strategies or how to target a new market. A recent 
survey by Harvard Business Review and Dell found that 
75% of CEOs think strategic CIO involvement is key to 
business success and that companies in which the CEO 
and the CIO are aligned outperform organizations 
lacking that alignment by a 2:1 differential. 
This research indicates that less than a third of CEOs 
think their CIOs are “above average.” And of that group, 
only 40% think their CIO is knowledgeable enough about
26 CIO Straight Talk 
the business to provide true strategic differentiation. 
(http://innovatebusinessit.com/research-what-does-th 
e-c-suite-think-about-your-future/) 
Today’s CIOs must bring value to the strategy 
discussion and align IT’s budget and strategy to the 
business strategy. They must be comfortable 
approaching the CMO to talk about how IT can help 
target a new demographic, perhaps sparking a whole 
series of conversations around apps, social media, digital 
advertising, and all of those things that the CIO would 
otherwise never be party to. CIOs who ask the right 
questions get engaged in more value-adding 
conversations with the business. 
Get to know your peers on the business side. Learn how 
to think and talk as they do. If possible, become one of 
them for a while. Understand how what you do fits into 
the organization’s overall business strategy. 
At the same time, know that you are the technology 
expert. Don’t be afraid to champion a great idea that may 
not initially make sense to them. 
Your adoption of behaviors such as these will help the 
IT function become something much more than a cost 
center — and help you become a key member of the 
CEO’s decision-making team. 
• CIOs today need to be “changers” rather 
than “maintainers.” They need to engage 
with the business, participate in the 
high-level strategic conversation about 
where the company is going, and then help 
the company get there. 
• A CIO who has spent 20 eyars in IT probably 
won’t be able to play a broader strategic 
role. It’s imperative to spend time in a 
variety of non-technical roles, to be curious 
about 
what makes the business tick, and to know 
how to talk about technology in layman’s 
terms to other functional executives. 
• Plenty of organizations still assume that the 
CIO is the person who takes technology 
orders. But to align IT with the business, 
the CIO must resist that role and be 
prepared to make a business case for 
technologies whose strategic value the 
non-tech people don’t yet understand. 
The Takeaways 
***
26 CIO Straight Talk
Straight Talking 
UPM, a global bio and forest products company based in Helsinki, focuses on creating value from renewable and 
recyclable materials. UPM’s wood-based biofuel is compatible with all diesel engines, meets EU and U.S. diesel 
standards, and can be distributed through existing gas stations. 
13 CIO Straight Talk
Creating and running an effective IT organization is no easy task. 
Here are some principles that go beyond the well-worn prescriptions 
for success and offer new ways to think about this critical leadership 
challenge. 
20 CIO Straight Talk 
Seven Essentials of the Highly 
Successful IT Function 
Turkka Keskinen 
POSITION: Chief Information Officer 
COMPANY: UPM 
WORKS FROM: Helsinki 
PROFESSIONAL BACKGROUND: Turkka Keskinen has been the 
CIO of UPM since October 2008. He has held a variety of roles 
during his long career with the company, most of them in 
finance and control. Before becoming CIO, Keskinen was a 
Senior Vice President for Financial Services and Business 
Control. In that position, he transformed Finance and Control 
from a function based in the business units to a global function. 
He also served as controller and as a member of a divisional 
management team, and from 1999 to 2002 he led a global SAP 
program for UPM. In 2010 he was recognized as the IT People 
Director of the year in Finland, and in 2012 he was awarded the 
CIO of the year in Finland. 
EDUCATION: Master’s degree in finance and business 
administration, University of Tampere 
PERSONAL PASSIONS: Tennis and all sports, family, 
motorbiking, and reading popular science 
turkka.keskinen@upm.com
In the past, our IT organization 
delivered 60% to 65% of what 
the business expected and so 
ended up disappointing users. 
Today we are delivering 90% or 
95% of what is expected. We 
didn’t change anything about 
our delivery, but we did change 
how we managed expectations. 
Let’s put it bluntly: It doesn’t matter what IT thinks 
about IT. What matters is what the business thinks about 
IT. In fact, business perception becomes IT reality. 
Several years ago, after I had been in the CIO role for 
a couple of years, I set out to create a list of the principles 
— you might even call them philosophies — that I believe 
define a successful information technology organization 
in the eyes of the business. 
I brought a special perspective to this task, because I 
had come to my CIO position from the business side, 
where I was a customer of IT. In fact, most of my career 
at UPM, a global bio and forest industry company based 
in Finland, has been in finance and internal controls. 
As I compiled my list, I tried to prioritize the items, 
putting the most crucial principle first, and so on. The 
version offered here isn’t comprehensive. But these are 
my top seven defining characteristics of a successful IT 
function , all of which we in UPM’s IT function try to live 
daily. 
1. Run IT Like a Business 
To do this, you have to know the business that IT is in. 
That means understanding the roles of IT’s owners and 
IT’s customers. The owners, whether it’s the CEO or 
CFO, may view IT as a cost center to manage. The 
customers are looking to IT for technology solutions that 
will meet the business’s needs and strategies. 
Those two groups, however, have to be in sync. 
Otherwise, the customers may be seeking solutions that 
the owners aren’t willing to fund. Both groups need to be 
sitting at the same table, literally, or you will end up not 
pleasing either one. 
At UPM, we created an IT steering committee with 
representatives of all businesses and functions — IT’s 
customers — that meets six times a year and with the 
company’s executive committee two times a year. I don’t 
lead either committee. I can, however, guide the two 
groups as they together prioritize investments. But — 
and this is crucial — IT’s owners and customers must 
make the final decisions. This process makes the owners 
and customers accountable for IT, even though they 
don’t deliver it. 
2. Think Service First 
IT must understand its customers — not just the senior 
business “buyers” of a system but also the end users of 
that system, who may number in the thousands. Too 
many IT organizations are isolated from end users. And 
what those users want is friendly, empathetic, 
person-to-person service — particularly of the “how do I 
use this” kind. Of course, excellent IT service is based on 
excellent IT service processes. But people deliver it. 
As for the higher-level “it’s not working” service 
requests, listen carefully to what your customer is saying. 
Never say no, but reserve the right to resolve the issue the 
way you think is best. Of paramount importance: Deliver 
as agreed upon — with a smile and without excuses. It’s 
easier to do that if you don’t overpromise. In the past, our 
21 CIO Straight Talk 
IT organization delivered 60% to 65% of what the 
business expected and so ended up disappointing users. 
Today we are delivering 90% or 95% of what is expected. 
We didn’t change anything about our delivery, but we did 
change how we managed expectations. 
3. Empower Your People 
IT is made up very smart people. To get the best 
performance, you need to strike the right balance 
between directing them and setting them free. I like to 
say you need to be tough on targets and easy on people. 
IT professionals aren’t afraid of a challenge, but they 
don’t want to suffer under oppressive and unnecessary 
hierarchies. I believe in giving people the flexibility they 
need to deliver and then rewarding them for results. 
Not everyone is comfortable with that level of 
empowerment at the start. If someone comes into my 
office with a problem, I will coach him or her through 
taking on the accountability for solving it. They leave 
with an idea of how they might do that. 
4. Keep IT Simple 
One of the biggest problems for the IT organization is 
that its native language isn’t understood by business. 
Another related problem is complexity, which is a killer 
not just for IT’s interaction with the business but also for 
the development and management of IT’s operations. It’s 
imperative to make IT simple for the business to 
understand and for the IT organization to run. 
I make sure my team members understand that using 
technology jargon and acronyms doesn’t make them look 
like the smartest person in the room. Explaining 
something in a way that everyone can understand does 
make them look smart. Don’t throw out terms like
“middleware” that mean nothing outside of IT. Use 
metaphors to explain technical concepts. For example, 
you might say that middleware is like the plumbing that 
connects the water supply to a house. 
It’s equally important to simplify expectations and 
decision-making processes. If the business perceives IT 
as complicated, it is complicated. Perception is reality. 
You must manage that. 
5. Do the Right Things 
If you want to serve the business, the business must 
determine and prioritize the IT portfolio, including only 
those projects that create value for the business. But let’s 
be honest; business people are not technologists. Nor 
should they have to be. 
IT’s role is to help the business determine its 
technology needs and justify them to IT’s “owners.” At 
UPM, we have made templates that help define the 
components of a technology proposal one by one. The 
templates create a clear structure not simply for the 
proposal but for how the IT is developed. So when 
business people come to the IT steering and executive 
committees, they are presenting their requests in a 
standard format. 
This makes it easier for the business to take 
ownership of the IT prioritization process. 
6. Do the Things Right 
Just as a successful IT organization enables the business 
to prioritize its own IT portfolio, it must also involve the 
business in implementation. 
Here at UPM, we nominate a top-level project 
chairman for the steering team, who represents the 
business or function benefitting from the project. On the 
IT side, we nominate only the most skilled project 
managers, and they report directly to the project 
chairman. By appointing a project chairman from the 
business side, the projects become true collaborations 
between IT and business. That ensures that business 
benefits are driving the project. 
A rigorous project management process is also 
necessary. Perhaps most important, you must pay 
attention to the people running the project. A successful 
IT shop takes care of its project teams through all phases 
of development and implementation. 
7. Mirror the Business 
IT leaders have preached the importance of business 
alignment for years. But how do you achieve that? 
Typically, a company has an organizational structure and 
IT has its own, different structure. I have found that it’s 
far more effective to model IT’s structure after the 
business. 
That is what we’ve done at UPM. There’s an IT group 
that works with global business process owners, another 
with local business managers, another with end users, 
another with portfolio and project management, and 
21 CIO Straight Talk 
others linked to strategy, sourcing, and other support 
functions. We involve the business in any key 
nominations within those groups and make sure to rotate 
people through them. 
But perhaps “mirroring the business” sounds too 
passive. What we in fact are trying to do is zipper 
together the IT and the business organizations. We want 
our efforts so aligned — intermeshed, even — that the gap 
that exists in so many companies is closed and our work 
and goals are shared. 
*** 
As I said, these are not the only guiding philosophies of a 
successful IT function. For example, I believe you need to 
manage and lead your suppliers — instead of letting them 
manage and lead you — while treating them like 
members of your own team. You must create an 
enterprise architecture road map — one that includes not 
only processes, technology, and applications but also 
data — without feeling the need to follow it slavishly. You 
need an explicit agreement with business about security 
levels. And so on. 
But an IT organization able to embody these seven 
concepts , as we have tried to do at UPM, will have in 
place the basic elements to ensure effectiveness and 
success. 
The Takeaways 
• It doesn’t matter what IT thinks about 
IT. What matters is what the business 
thinks about IT. It’s useful to think in 
terms of IT’s owners and IT’s 
customers. The owners may think of 
IT as a cost center. The customers are 
looking for business solutions. The 
two groups need to be in sync. 
• IT needs to be simple for the business 
to understand and for the IT 
organization to run. If the business 
perceives IT as complicated, it is 
complicated. 
• A successful IT organization enables 
the business to prioritize its own IT 
portfolio. It also involves the business 
in implementation.
Straight Talking 
Chemtura, based in Middlebury, Connecticut, is a global specialty chemicals manufacturer whose products 
are sold in more than 100 countries. The company serves major industries, including transportation, 
energy, and electronics. 
23 CIO Straight Talk
When Richard Seltz joined Chemtura, he seized the opportunity 
not just to facilitate the company’s strategic divestitures but also to 
rethink the way IT operated. 
24 CIO Straight Talk 
Reimagining IT 
POSITION: CIO and Vice President, Information Technology 
COMPANY: Chemtura 
WORKS FROM: Philadelphia, Pennsylvania 
PROFESSIONAL BACKGROUND: Richard Seltz joined 
Chemtura in 2011 and became the CIO in 2012. In that role, he 
has transformed the organization to reduce costs while 
seeking to improve customer satisfaction and service levels. 
Previously, Seltz was the global business leader for the 
transportation adhesives business at Rohm and Haas (now 
Dow Chemical). Prior to joining the chemicals industry, Seltz 
was a Vice President and cofounder of GeoStrategy 
Consulting, where he focused on growth strategy and 
operational reengineering with Fortune 200 clients. His 
consulting career also included positions at CSC Index, Viant, 
and EDS. served as a U.S. Peace Corps volunteer and 
cofounded the first English-language newspaper in Bosnia. 
EDUCATION: BSBA, University of Florida; MBA, the Wharton 
School of the University of Pennsylvania 
PERSONAL PASSIONS : Travel to off-the-beaten-path places 
and keeping up with my two boys 
Richard Seltz 
Richard .Seltz @chemtura.com
Driving Sales and Customer Service with Enterprise Mobility
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Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility
Driving Sales and Customer Service with Enterprise Mobility

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Driving Sales and Customer Service with Enterprise Mobility

  • 2. MAKING ENTERPRISE MOBILITY A REALITY Innovative mobility initiatives at Walmart, Merck, Qatar Airways, Dr Pepper Snapple, and other forward-looking companies. PAGE XX www.straighttalkonline.com Issue Number 5
  • 3.
  • 4. Cover Article Making Enterprise MOBILITY A REALITY Innovative mobility initiatives at Walmart, Merck, Qatar Airways, Dr Pepper Snapple, and Montreal Transit Straight Talking 05 Content 19 19 33 Reimagining IT Richard Seltz, CIO and VP, Information Technology, Chemtura 23 Seven Essentials of the Highly Successful IT Function Turkka Keskinen, CIO, UPM Seven Habits of the Highly Successful CIO Brian Adams, CIO and Director of Procurement, WorleyParsons 23 Running IT Like a Business . . . at a Giant Nonprofit Terry Bradwell, EVP and CIO, AARP The ROI of Hard Work Kristin Russell, former Secretary of Technology and CIO, State of Colorado 23 Emerging Technology, Emerging Markets Vivek Vasudev Kamath, Executive Director, MSD (Merck) India
  • 5. 27 Culture Change: IT as an Innovation Engine Annabelle Bexiga, EVP and CIO, TIAA-CREF Issue Number 5 19 Shifting Gears Timothy Heffron, Vice President, Human Resources, and CIO, Meritor Big Thinking Solution Spotlight Tackling Two Big IT Challenges 19 Reborn Digital: Reinventing the Enterprise for the Digital Age Steven Cardell, President, Enterprise Services and Diversified Industries, HCL Technologies 19 Proactive Obsolescence: Turning ASM Costs into Change-the-Business Investments Mark Hirst, Global Head, Public Services, HCL Technologies 59 The CIO Role in the Enterprise of the Future Andrew McAfee, cofounder, Initiative on the Digital Economy, MIT Sloan School of Management 55 Failure Can Wire Your Brain for Innovation Michele Gallen, CEO, Shhmooze
  • 6. CIO Straight Talk Team Utkarsh Srivastav, Sanjeev Kaul, Arun Menon, Gangeya Purushottam, Vinay J. Mathew, Abhishek Singh, Paresh Vankar, Vikas Goel, Abhishek JM, John Meyer, Pichumani Sathyanarayana, Marc Chesover, Gaurav Kumar, Hitesh Parekh, Neeraj Singh, Sudha BalasubramanyanBiswajit Rath, Gangeya Purushottam, Shoba Pfaff, Siva Charvu, Shimona Chadha, Gaurav Kapahi, Shirish Sahay, Yasser Ahmed Khan, Krishna Kotipalli, Bhaskar Vedula Rao, Nikhil Chakravarthy Manupati. Atul Sharma HCL Technologies 1st Floor, A-2, Sector – 3 Noida – 201301, Uttar Pradesh, India sharma.atulsh@hcl.com Wendy Semerau 1 Mid America Plaza, Suite 403 Oakbrook Terrace, IL 60181 USA 408-328-7701 wsemerau@hcl.com CIO Straight Talk is a periodical published by HCL Technolo-gies (HCLT) meant for its existing and prospective clients for information purposes. The information contained in the publication contains general views based on the experiences of technology practitioners and subject matter experts within and outside of HCLT, expressed by them in their individual capacity and in no event shall HCLT (including its affiliates and group companies) be liable for any claim, damages or any other liability arising out of or resulting from this publication. You are advised to seek professional advice before making any decision that may affect your business. All contents are copyright © 2014 by HCL Technologies Ltd. All rights reserved. Excerpts may be reprinted with attribu-tion to HCL Technologies. The Wisdom of Your Peers We recently launched a sister publication to CIO Straight Talk, called CTO Straight Talk. Like the magazine you are reading now, CTO Straight Talk highlights the thinking of those working in the field — in that case, CTOs and other senior product engineering executives. As we put together the first issue, I was struck again by the value of our content, value that flows from our decision to showcase “practitioner thought leadership” in these two Straight Talk publications. The inaugural issue of CTO Straight Talk (magazine.straighttalkonline.com/cto/issue1) includes a cover article (“The Internet of Experiences”) that offers a new take on the Internet of Things. The issue also includes an interview with Tim Brown, the CEO of IDEO, on how design thinking can enhance the experiences and “things” of the Internet of Things. But the heart of the first issue is a series of articles by product engineering executives from Fortune 1000 companies. Each one offers insights that could only be distilled from the professional experiences of executives like these. Which brings us to this issue of CIO Straight Talk, also packed with practitioner insights. For the cover article, we talked to CIOs and mobility heads at six companies, ranging from Walmart to Qatar Airways, about initiatives they’ve launched to turn the promise of enterprise mobility into a reality. The “Straight Talking” section features articles by CIOs offering a wide variety of views on an equally wide variety of topics — from “seven habits of the highly successful CIO” to tackling an IT problem of tremendous complexity and massive scale. The authors’ organizations are in industries as different as financial services and automotive; they include nonprofits and government; and they are based in the U.S., Finland, India, and Australia. We hope the issue inspires you to share your professional insights with peers on the CIO Straight Talk group on LinkedIn (http://lnkd.in/CIO Straight Talk). I’m confident they will find your ideas useful, just as we hope you will benefit from the peer insights you’ll find in this issue. Editor Paul Hemp Managing Editor Ritesh Garg Contributing Editors Stephanie Overby, Glenn Rifkin, Alan Earls Copy Editor Amy Halliday Art Director Neha Sharma Digital and Social Anirban Sanyal Events and Webcasts Mishtun Chatterjee Distribution and Leverage Atul Sharma Editorial Advisory Board Anant Gupta, Krishnan Chatterjee, Apurva Chamaria, Amar Singh, Harsh Kumar Printing Quality Printing, Pittsfield, MA, USA Lustra Print Process Pvt. Ltd., New Delhi Acknowledgements Contact Us For information on reprinting articles and all other correspondence, please contact: Paul Hemp Editor
  • 7.
  • 8. MAKING ENTERPRISE MOBILITY A REALITY For all the hype surrounding enterprise mobility — the declarations of both its benefits and its risks — most companies are still in the early stages of implementing mobile strategies. Here are the stories of five companies that are turning talk into action. Cover Article
  • 9. Dr Pepper Snapple: A Mobility Slingshot to Battle the Giants When your chief rivals are Coke and Pepsi, you need all the competitive weapons you can get. For Tom Farrah, CIO of Dr Pepper Snapple Group, one such weapon is enterprise mobility. In the beverage and consumer packaged goods industry, visibility and shelf space are crucial to success. DPSG’s decision to provide its 2,400 account managers with iPads — equipped with real-time account information, promotional material, and critical sales data for every customer — is transforming how the company competes with rivals and is already helping to increase sales. In just over a year, mobile technology at Dr Pepper Snapple has shifted much of the complexity of doing business from the customer-facing front end to the technology-enabling back end. Gone are the outdated print-laden binders that an account manager had to lug into every retail outlet he visited, replaced by sleek new iPads loaded with custom-made apps for solidifying the crucial relationship with store managers. In a brand-based marketplace, Dr Pepper has long been a major force. The beverage, created in 1885 by a Waco, Texas pharmacist, is the oldest soft drink in the United States. Part of the Cadbury Schweppes empire from 1995 until 2008, the Dr Pepper Snapple beverage group was spun off into a stand-alone, publicly traded company. The $6 billion business, which owns more than 50 iconic trademarks, including Dr Pepper, Snapple, Mott’s, Schweppes, and 7 Up, is sold through retailers around the world, from Walmart to mom-and-pop convenience stores. The company is heavily dependent on a very mobile sales force that is responsible for direct store delivery. 16 CIO Straight Talk Tectonic shifts in the technology landscape are nothing new to CIOs. If you’re not ready for familiar strategic landmarks to disappear every few years — if you’re uncomfortable with the maps used to plot your IT strategy becoming irrelevant — you’re in the wrong business. Take the emergence of mobile computing. The confluence of laptops, smartphones, tablets, cloud services, and high-speed broadband 3G and 4G networks over the past decade is changing the very nature of business. Outside the organization, mobile computing is transforming how companies interact with customers and prospects. Within the organization, it is allowing companies to work smarter and faster — while raising security risks and weakening the CIO’s control of a company’s technology framework. For example, the so-called consumerization of IT and the BYOD phenomenon — you “bring your own device” to use at work, and with it heightened expectations for computing convenience and capabilities — represent a massive cultural reshaping of a company’s technological environment. CIOs who spent their careers overseeing a monopoly in corporate IT now face competition from end users who have already experienced the benefits of state-of-the-art mobile consumer devices. In fact, enterprise mobility initiatives are often driven by senior executives with iPads who are insisting on the same dexterity with their corporate data that they have with their personal data. The magnitude of the changes wrought by mobile computing is evident in analysts’ estimates, predictions, and assessments: • Mobile devices now outnumber human beings, with an estimated 7.3 billion mobile devices in the world in 2012 and just under 7 billio n people , according to Forrester Research. • Mobility is converging with social, cloud, and big data forces into a “nexus that is driving disruptive changes to IT, businesses, and society overall,” according to Gartner. • The global enterprise mobility market will reach $140 billion by 2020, growing at an annual rate of 15%, according to HCL Technologies. • The number of smartphones in use is about to surpass the number of PCs in use, according to technology analyst Benedict Evans. • In 2013, 56% of companies created organization-wide mobile strategies and 47% increased investments in mobile and wireless capabilities, according to IDC. But being aware of and comfortable with the seismic transformations brought on by mobile computing isn’t the same as staying ahead of them. For all the hype surrounding mobility these days, most companies’ initiatives are in the nascent stage, and the CIO’s role in them isn’t always clear. Dan Bieler, an analyst with Forrester Research, has written, “CIOs will be responsible for introducing technology solutions that help break down silos, boost cross-team collaboration, drive the end-to-end customer experience, and engage more deeply with customers. In order to succeed, CIOs must go beyond technology enablement and support organizational and cultural transformation.” Given that the devil is in the details, CIO Straight Talk reached out to a cross-section of organizations that are in the midst of enterprise mobility efforts. Their stories offer examples of mobility initiatives that are already resulting in significant improvements in companies’ internal processes and productivity, as well as in their relationships with external customers.
  • 10. 16 CIO Straight Talk Account managers spend their days visiting individual customers to take replenishment orders and sell incremental activities such as promotions, displays, and other sales-generating offerings. Given the real-time, data-intensive nature of the business, these account managers have long been prime candidates for mobile technology. And until 2013, they (and the delivery drivers) did indeed carry rugged Motorola handheld devices. These devices, still used by delivery companies like Fedex and UPS, work well enough for replenishment order taking: An order, input at the retail location, triggers a delivery over the next 24 to 48 hours. But Farrah, a Cadbury veteran, had more ambitious plans. Providing retailers with information about incremental promotional activities turns out to be a complex task. Typically, the account manager carried around printed material with information on all promotions, ads, and sales activities for the month. Given that DPSG has 150 sales regions around the U.S. (each of which includes dozens if not hundreds of retailers) and that the company comprises more than 50 individual brands (each with its own pricing changes, special promotions, and point-of-sale materials), the task of keeping updated binders with accurate information readily available for each account manager had become a black hole. “You have account teams selling to Walmart or Target or Kroger,” Farrah says. “You have mom-and-pop stores all over the place. Every brand has its own marketing activity, and every retail customer has its own account team creating different promotions and activities. When you take all the factors into account for our company — all the brands and how we license with our bottlers — there are over 12 million possible combinations of brand, bottler, and customer that need to be communicated to and executed at the store level.” Farrah saw that the sales binders — with their dirty, torn pages and often out-of-date information — had to go. “We decided to rebuild that application on an iPad,” Farrah says. “We started by moving the order entry application from the rugged handheld device to the iPad. Just by redesigning that application, we learned how to take advantage of the iPad interface, and we focused on the user experience down to the nth detail.” The application, built internally in IT, synchronizes all new data automatically to the mobile device. Any new customers, products, pricing changes, or other information is available in less than a minute with a touch of the screen before salespeople set out on their routes in the morning. The pilot program, launched in the first quarter of 2013, was an immediate hit; salespeople reported that it cut their order-replenishment time in half. Phase two of the pilot was to get all the additional promotional material on the iPad. Now, when an account manager checks his route for the day, he sees a list of that day’s customers. When he clicks on a particular customer, the system instantly brings up customer-specific promotional activity, including pricing, packaging, point-of-sales materials, and the promotion timeline. “These guys usually have about two or three minutes of a store manager’s time,” Farrah says. “The last thing they want to do is say, ‘Let me walk you through this promotion,’ then hit a button and stand there waiting for it to download. When they synchronize their device in the morning, it is all downloaded then and there, so even if they are in a location without cellular service, it doesn’t matter.” The most daunting task for IT, Farrah notes, was building the back-end engine that could gather and distribute all that material. Using the company’s internal portal, Splashnet, Farrah’s team created MySplashnet, an intelligent personal portal for each individual in the organization. When an account manager opens MySplashnet, it knows who and where he is and provides all his daily operational metrics. Having rolled all this out far more quickly than anticipated, Farrah wasn’t done. Each account manager also has mobile BI (business intelligence) that is personalized to his account. He can click on My Route and see, through a mapping device, each store he will visit that day. Each store’s icon is accompanied by a balloon that opens to a box showing every brand and package that DPSG sells to that retailer, along with current sales, month-to-date, year-to-date, and what the average is and ought to be. If a salesperson is behind for the month, it tells him how many cases he needs to sell. It also ranks the salespeople in that region so he knows where he stands. “The last thing they want to do is say, ‘Let me walk you through this promotion,’ then hit a button and stand there waiting for it to download. When they synchronize their device in the morning, it is all downloaded then and there, so even if they are in a location without cellular service, it doesn’t matter.” Tom Farrah, CIO, Dr Pepper Snapple Group
  • 11. 16 CIO Straight Talk Though sales force mobility capabilities are becoming standard operating procedure in the industry, Farrah believes that DPSG, in providing tailored data to individual account managers, is ahead of rivals such as Coke and Pepsi. His objective for 2013 was to increase sales for the business, and although he can’t attribute specific sales increases to the mobility rollout, given the variety of factors involved, the anecdotal evidence has been gratifying. For example, the president of Farrah’s business unit told him, “I’m not worried about calculating the value that’s come out of this, because I see what’s going on in my business — and there’s no question it is helping us to grow sales.” That’s feedback from the business side that any CIO would welcome. Merck: Go Fast, Be Ambitious When Merck, the $44 billion pharmaceutical giant, embarked on its enterprise mobility journey four years ago, it took an unusual route. Many companies were initiating their mobile efforts with the sales force so that salespeople could access information in the field. But according to Randie Schlamowitz, executive director of Merck IT, Merck decided to emphasize the “enterprise” in enterprise mobility and enable its entire corporate environment holistically. “We built a company-wide mobile network,” she explains. “We made sure we had security in place and that data was protected on mobile devices. We brought in a mobile device management tool, and we were able to track company-purchased mobile phones and, over time, personal devices, too. We supported e-mail and calendar and all the standard productivity capabilities.” From there, Schlamowitz began to consider Merck’s SAP-based ERP environment as a fertile landscape for taking mobility further. She began with a small pilot program. In a company the size of Merck, where many factors — performance, usability, support, etc. — need to be considered, pilots are essential. The initial pilot enabled the approval of an expense report using a Blackberry or an iPhone. After the success of that effort, the pilot was then expanded to more than 1,000 managers across the company. It wasn’t earth-shaking, but it was a start. “Our philosophy for enterprise mobile applications is that we build them pretty rapidly — in anywhere from eight to twelve weeks — and deploy them among a small pilot user group,” Schlamowitz says. “We get feedback to ensure that there are no issues before we deploy the app to a broader user base.” After its initial forays, the company began to get more ambitious. What would it take to enhance productivity for managers, for the sales force, and for others around the organization? Schlamowitz’s group investigated available mobile enterprise application platforms, or MEAPs, and selected an SAP technology that plugged seamlessly into the company’s SAP landscape. Her team used this technology to rapidly enable certain key transactions on mobile devices, primarily iPhones and iPads, as the Blackberry, the company’s traditional smartphone of choice, was eclipsed by rivals. Unlike most U.S.–based companies, Merck made its most dramatic foray into enterprise mobility off-shore, specifically in China, an important emerging market for the company. In that case, the sales organization was the focus. The laptop devices they had been using were slow and were not effectively connecting to the network. Under Merck’s single-device strategy, China’s 3,500-member sales force all received iPads and were initially given ten mobile capabilities, including access to their enterprise portal, documents stored in SharePoint (Microsoft’s web-based collaboration software), the enterprise learning management system, and travel expense reporting. This last capability was particularly innovative, allowing a salesperson to quickly create an expense report, snap a photo of a receipt, and transmit it instantly on the iPad to the corporate back end. A process that had taken 26 minutes through the corporate portal was reduced to less than five minutes on an iPad. Given the success demonstrated in China, which included a close collaboration with business colleagues who changed their traditional ways of working to adopt mobility, these capabilities were ready to be deployed to the enterprise. The team continues to develop innovative mobile solutions across Merck and is working with Manufacturing to leverage mobile devices and applications to enhance productivity. Merck’s mobile philosophy has diluted the oft-heard refrain in corporate environments that the CIO and IT “When we embarked on this journey, we looked at it holistically. Organizations that focus primarily on mobility as a sales force enablement technology don’t necessarily think about the broader enterprise.” Randie Schlamowitz, Executive Director, Merck IT
  • 12. 16 CIO Straight Talk are impediments to the BYOD and mobility trend, trying to protect their turf and control the distribution of technology. For mobility, IT at Merck has been the visible champion. “When we embarked on this journey, we looked at it holistically, Schlamowitz says. “Organizations that focus primarily on mobility as a sales force enablement technology don’t necessarily think about the broader enterprise.” Merck’s CIO at the time made it clear that “whatever we do, we need to do it for the enterprise,” Schlamowitz says. Clark Golestani, who has been CIO for the past two years, has strongly supported and expanded that philosophy. Schlamowitz says that at least 50% of the company’s 74,000 employees around the globe eventually will benefit from the company’s mobile capabilities. What are the lessons from Merck’s mobility efforts? “Mobility is all about speed and forward momentum,” Schlamowitz explains. “You need to approach mobility a little bit differently in that you have to leverage the appropriate standard development practices using a much more aggressive timeline. It’s not just the group that’s building the app; it’s the group that is testing the app, it’s the group that is supporting the app, it’s the group that’s changing the back-end systems of record. They all need to be focused on acceleration.” At the same time, IT leaders must be prepared for unexpected changes in the technology landscape. Schlamowitz says, “A decision you make today may not be the right decision a year from now.” Qatar Airways: Delighting Your Passengers — and Your Employees The marvel of flying is an exceptional example of mobile technology — which puts an airline in a good position to realize the potential of mobile computing. Airlines don’t just transport passengers from one location to another; they manage a ceaseless flow of workers, baggage, fuel, and critical information. Qatar Airways, the award-winning airline of the State of Qatar, uses the latest in mobile technology — smartphones and tablets — to change how the company operates in the B2B, B2C, and B2E (business to employee) areas. “The technology challenge for the airline industry is preparing the passenger for travel through real-time, online solutions. Passengers increasingly want to do more of the preparation themselves, and for them to do so, cost-effective information dissemination mech-anisms must be available to them,” says CIO Arasnipala T Srinivasan, a 30-year airline technology veteran. “Mobility has finally offered that opportunity.” Qatar Airways has developed mobility solutions across the entire spectrum of its business: apps for empowering passengers and productivity- and service-enhancing apps for the cabin and flight crews and for a wide range of airport personnel and other employees. The term “mobility” was not part of the lexicon until recently, but the basic business advantage was clear. “As the iPad and other mobile devices became more reliable and robust over the past four years,” Srinivasan says, “we realized that we could provide our mobile workforce with a high level of information capture in real time.” Qatar Airways’ consumer apps have been welcomed and used widely by passengers. The initial offering allowed customers to view schedules, book a flight, check in, and check flight status — capabilities that are now being further enhanced. The airline’s solutions for its mobile workforce — cabin crew and pilots — consist of iPads that offer real-time information to help employees discharge their responsibilities more efficiently and effectively. Initially, these efforts were focused on elevating the customer experience — something Qatar Airways was already known for — to a whole new level. For example, when a flight is boarded and the door is about to close, a ground operations team member previously stepped onto the plane and handed the flight attendant a sheet of paper listing all passengers, seat by seat, and basic information such as special meal requests or medical needs. Two years ago, Qatar introduced Qruise, an app for the iPad that automatically provides detailed passenger information to the cabin crew. Instead of simply a name and a meal preference, the mobile app contains a deep well of data about each customer, especially first-class and business-class flyers, whom the airline ensures receive unparalleled service. Qruise is an office in the air for the cabin crew. Today, Qatar Airways deploys around 500 iPads and iPad Minis across its 130-aircraft fleet. Qatar Airways is also rolling out the iPad to its 2,000 pilots, giving them a single device for all flight-related information. The company created an app called Qloud that will ultimately become an EFB (electronic flight bag) approved by the FAA as an integral Class 1 flight instrument. With it, pilots can, for example, check in for the flight, observe schedules and weather conditions at destination airports, meet the flight’s crew, and even obtain details on hotels where they will be staying in the cities they will be flying to. “The idea is to remove as much paper and documentation as we can from the flight deck,” Srinivasan says, “which not only leads to better decision making for the pilots, because they have the data at home or anywhere in the world, but also reduces weight on flights and enables data preservation.” Airport operations have also benefited immensely from mobility solutions. For example, Qatar’s dispatch functions — the so-called “red caps” who are accountable for on-time departures — have a prodigious task in a fluid environment. On a given shift, a red cap is responsible for multiple flights and must move around the airport overseeing many activities: baggage loading and unloading, fueling, following the status of
  • 13. 16 CIO Straight Talk “The idea is to remove as much paper and documentation as we can from the flight deck, which not only leads to better decision making for the pilots, because they have the data at home or anywhere in the world, but also reduces weight on flights and enables data preservation.” passengers, and staying abreast of maintenance on the planes. In the past, this person was armed with a walkie-talkie and loads of paper. Today, all the information on every aspect of every flight is updated in real time on Galaxy Tab tablets, and the red cap receives alerts when there’s a problem. “Now, it’s really management by exception as opposed to management by calling and sharing and handling finite pieces of paper that become irrelevant in five minutes because the status has changed,” Srinivasan says. To enhance productivity and employee self-service, Qatar Airways has developed a Corporate App Store that allows employees to download apps onto their personal devices. The Souq app, which provides details of corporate discounts, is popular with employees. Apps like Staff Check-in and MyGems allow employees to check in seamlessly, receive corporate messages, and view personal information while on the move. “It’s critical to note that Qatar Airways is a 24/7 operation,” Srinivasan says. “The airline’s home and hub at Hamad International Airport is always open. This adds a whole other dimension to our operations. The mobile technology must be able to support this.” “Though it hasn’t been an easy task,” he says, “it has been a huge delight making mobile technology applications that take flight.” Walmart: An Adaptable App That Changes with Customer Needs Three years ago, Walmart launched a mobile app that fundamentally changed the way the company does business. The application looks like a typical e-commerce app on a user’s smartphone — most of the time. But when a customer enters a Walmart store, the app morphs into something very different. Using the location of customers who activate the in-store feature, the app provides promotions, prices, and other information specific to the store where they are shopping — for example, the exact location of an item on the customer’s shopping list or the price of the item in that particular store. At a time when some retail chains were blocking customers’ in-store Internet access — to prevent them from pricing and checking out a physical item and then purchasing it from an online competitor — Walmart’s Store Mode encouraged people to use their phones while roaming the aisles. Of course, the app also made it easy to order an item at Walmart.com if it was not available in the store. Although in-store apps are now relatively common among large retailers, Walmart was the first chain to roll one out nationally. What led to this new twist on the mobile app? And does Walmart’s approach to developing the app hold mobility lessons for other companies, whatever the industry? “It sounds trite, but when we think about innovation, we truly do so with the customer in mind,” says Gibu Thomas, Senior Vice President of Mobile and Digital at Walmart. A mobile app, he says, provides “an opportunity to get the right information to the customer at the right time.” Indeed, Thomas says, his team saw smartphones as having the potential to create a consistent connection with customers. The devices could close the gaps in a fragmented series of interactions that for the most part had been limited to a customer’s engagements with salespeople in the store and with Walmart’s website when a customer happened to be on a computer at home or work. The problem with the smartphone, though, was the size of the screen, which would have to accommodate not only the features available on the large-screen desktop site but also additional in-store features. As is often the case, what seemed at first like a constraint actually presented new possibilities. “We said to ourselves, ‘Wait a second. This actually isn’t a constraint. Or it’s one we can make an advantage, because this smartphone can provide us with context on where the customer is,’” Thomas explains. “Instead of providing on the screen a menu of all the features of the app, which the customer may or may not care about, we decided to offer a contextual experience that’s tailored to where the customer is.” “The simplest way to figure out if a customer was in a store or not was ‘geo-fencing’ every one of our stores,” he says. “Because of the location capability of the device, we were able to trigger the knowledge that you’re in the store. And the app interface would automatically Arasnipala T Srinivasan, CIO, Qatar Airways
  • 14. 16 CIO Straight Talk transform itself to display capabilities that only matter to you when you’re there.” The broader set of capabilities that customers wouldn’t care much about when they were in the store would still be available on the app; they just wouldn’t clutter up the screen. This move was driven by an empathetic understanding of what kind of experience would work for customers. What does Thomas think might have resulted if he and his team, in developing the mobile app, had strayed from their focus on customer needs? They might have tried to emulate the mobile apps of competitors, particularly pure-play e-commerce retailers like Amazon. But that would have been a distraction from Walmart’s strategy of capitalizing on the hybrid business opportunity that exists at “the intersection of digital and physical” — a strategy fully realized in the Store Mode app. Or they might have tried to pursue the amazing marketing opportunity that connected customers represent by sending lots of messages. “But bombarding customers with messages in the hope that they will buy more isn’t going to work, because customers are smart and they have alternatives,” Thomas says. They might even have tried to do right by the customer, offering the full array of capabilities that the smartphone enabled. “We could have said, ‘Whether the customer is in the store or not, we want to give him access to all of these capabilities. So let’s jam the screen with as many small buttons as possible.’ But customers would end up so confused and overwhelmed that they wouldn’t use the app. Or they’d see a capability on their screen — say, the Scan & Go feature, which allows them to scan their items with their phone as they shop and then breeze through checkout — wonder what it was, try it at home, and then say, ‘Why did you show me this if I’m not in a store?’” This empathy for what a customer feels and experiences has resulted in a wildly successful app, one that offers not just convenience but engagement. Walmart doesn’t give exact figures, but reports are that millions of people have downloaded the app. More than 50% of traffic to Walmart.com now comes from mobile devices. Nearly 85% of smartphone users — about half of Walmart customers in the U.S. and the U.K. own a smartphone — use their phone while shopping in a store. According to Walmart’s own internal research, customers with the app make up to two more shopping trips to Walmart stores and spend nearly 40% more each month – an indication that keeping the focus on customers — whether they be Walmart’s shoppers or the employee users of mobile devices in your organization — is key to the success of a mobility initiative. Société de transport de Montréal: Turning Mobility into Revenue Public transit, so often ridiculed and scorned by harried passengers, may seem to be an unlikely source of digital innovation. But the Montreal transit system — Société de transport de Montréal, or STM — is leveraging mobile computing and the system’s vast customer base to generate significant new streams of revenue. STM is the fourth largest public transportation system in North America, with 1.5 million daily riders, who account for more than 400 million trips per year on the city’s 250 bus lines and through its 68 subway stations. Fully 65% of the residents of this cosmopolitan, dual-language city are regular riders who have embraced the clean and efficient system as a preferred method of transportation. To increase ridership and offset the 13% who abandon the system each year because they move away, change jobs, or die, STM focuses not only on improving service but also on enhancing the customer experience in innovative ways. As part of that effort, STM has offered mobile solutions to its customers for more than five years, starting with notifications of bus and subway delays on riders’ mobile devices. But recently, STM decided to get serious about mobility and launched an ambitious loyalty program for its riders using mobile technology developed with SAP. Unveiled in late 2013, the Merci ( Thank You) program is the first such rewards program offered by a public transit system, and it is already paying big dividends. Merci is a mobile app that provides STM riders with not only a steady flow of information but also special offers from local retailers and event venues. The information is pumped out to iPhones, iPads, and Android devices in real time and is geo-located so that it is targeted at individuals on the basis of their current location. “Instead of providing on the screen a menu of all the features of the app, which the customer may or may not care about, we decided to offer a contextual experience that’s tailored to where the customer is.” Gibu Thomas, Senior Vice President of Mobile and Digital, Walmart
  • 15. 16 CIO Straight Talk “We send you things that are extremely relevant to you because we’ve asked you what you like,” says Pierre Bourbonniere, STM’s chief marketing officer. “We send you things that are relevant to you based on where you are located. If you are at the corner of Mount Royal and Ste. Catherine streets, we will send offers from the local shops, restaurants, bars, and events that are happening now, today.” “This loyalty program doesn’t give points,” he adds. “It is based on instant gratification.” The program also takes into account frequency of use, so the most loyal and high-usage customers are offered better deals, such as free tickets to an opera or ballet, while those who use the system less often might be offered a 50% discount. STM views the Merci program as a major success, with more than 50% of Opus card holders signing up. The program has had a positive effect on their behavior. According to Bourbonniere, 24% of riders using Merci increased their use of public transit; 57% discovered new destinations by public transit, either shopping or event related; 43% are using public transit for new reasons, other than, say, getting to work or school; and 47% are taking a friend along. But the Merci program has done more than strengthen customer loyalty. It has also proven to be a potent source of non-fare revenue for STM. Partners in the program provide the rewards at no charge to STM. Indeed, they pay an entry fee to be part of the program and additional fees for usage. Bourbonniere estimates that the program will generate $15 million in revenue for STM over its first three years and then blossom into an annual $50 million bonanza after that. “If you are at the corner of Mount Royal and Ste. Catherine streets, we will send offers from the local shops, restaurants, bars, and events that are happening now, today.” Pierre Bourbonniere, Chief Marketing Officer, STM So what can we learn from the experiences of these companies? How can mobility – one of the quartet of concepts that comprise the “SMAC stack” (Social, Mobility, Analytics, Cloud) and a front-of-mind area of interest for CIOs – actually create value for companies? A few themes emerge from these stories: • Mobility has the potential to transform and streamline existing business practices, such as account management, sales, and marketing, leading not only to significant productivity gains but also increased revenue streams. In fact, mobility initiatives themselves can become lucrative sources of revenue. • Mobility initiatives require forward momentum in order to bring the organization along. • Coordinated pilot programs can help ensure the rapid and successful rollout of such initiatives. • Corporate-wide mobility governance teams, overseen by IT but including business unit representatives, can smooth the path for enterprise mobility initiatives. • Although BYOD is a much-cited element of enterprise mobility, CIOs needn’t officially sanction BYOD in order to implement successful mobility initiatives. • Security remains perhaps the most significant challenge for CIOs seeking to embrace enterprise mobility. Although there are no fool-proof prescriptions here, heeding the lessons these companies offer may make a difference for an organization trying to make enterprise mobility a reality.
  • 16. HIGHLIGHTS FROM ISSUE NUMBER 4 7 Things CIOs Are Doing to Get Ahead in the DIGITAL ECONOMY PLUS: Experience Talks | The End of IT Innovation | The CIO’s Choice | Other Voices ALSO IN THE ISSUE: Straight Talking: Actionable insights from CIOs of Consumers Energy, Covance, SAP Americas, Vanguard Health Systems, and other forward-looking companies View from the Technology Blogosphere: Robert Scoble on The “Age of Context” Points of View: New-Age Outsourcing: Five outsourcing advisors describe emerging models Go to: magazine.straighttalkonline.com/issue4
  • 17. www.straigthttalkonline.com Issue Number Straight Talking The Colorado State Capitol, located in Denver, was constructed in the 1890s from Colorado white granite, with a gold-plated dome that commemorates the Colorado Gold Rush of 1859. Today, the state is a growing center for high-technology companies. 13 CIO Straight Talk
  • 18. www.straigthttalkonline.com Issue Number 5 Successfully tackling an IT problem of enormous complexity on a massive scale isn’t easy but can yield tremendous benefits — in this case, making a difference in the lives of hundreds of thousands of Colorado citizens. 20 CIO Straight Talk The ROI of Hard Work Kristin D. Russell POSITION: Former Secretary of Technology and Chief Information Officer COMPANY: State of Colorado WORKS FROM: Denver, Colorado PROFESSIONAL BACKGROUND: In February 2011, Kristin Russell was appointed by Colorado Governor Hickenlooper to serve as the state’s Secretary of Technology and Chief Information Officer. In those roles, which she held until May 2014, she led IT economic development for the state, promoted Colorado as a location for technology companies, and oversaw all information systems statewide. Prior to joining the Governor’s Office, Russell was the Vice President of Global IT Service Operations at Oracle, where she was responsible for all data centers and computing operations worldwide. She also served as the Vice President of Global IT Operations for Sun Microsystems, where she led the team that provisioned IT solutions and services to Sun’s extended enterprise, supporting more than 40,000 Sun employees and partners around the globe. Russell has also held roles in customer management, statistical process control analysis, and training and development at Citigroup and Southern Pacific Transportation Lines. She was named the public sector and nonprofit CIO of the year in 2013 by the Denver Business Journal and a Top 10 Breakaway Leader by the Global CIO Executive Summit. In June 2014, Russell became a Director with Deloitte Consulting. EDUCATION: BA, University of Colorado; Colorado Executive Development in Residence program PERSONAL PASSIONS: Family, fitness, and food
  • 19. 16 CIO Straight Talk Recently, I decided to leave my job as Secretary of Technology and Chief Information Officer for the Colorado Governor’s Office of Information Technology to join Deloitte Consulting. While most people don’t question my return to the private sector, I do get asked quite frequently why I ever decided to leave a successful career in the private sector to work in the public sector in the first place. The truth is that I certainly wasn’t looking to make that move when I got the call from Colorado Governor John Hickenlooper’s transition team, in early 2011. I was on my way back from Tokyo when a fellow tech leader who was helping the Governor recruit the state’s new dual CIO and Secretary of Technology called me. He told me about the position — I would be responsible for all the technology systems across the executive branch. I would be on the Governor’s cabinet, and I would lead the state’s IT economic development strategy. I would be known as Madame Secretary. I politely told him, “I don’t do public sector, I don’t know what a cabinet is, I don’t want to be a secretary, and I never want to be called madame!” I have to admit, however, that I was intrigued. Like many of you, I had heard the stories about government waste, bureaucracy, and politics, not to mention the significant pay cut. Still, I thought I’d go ahead and meet with the Governor and his team to hear what they had to say. After that, my plan was to shut them down. Governor Hickenlooper’s first question was, “Why do you want this job?” Knowing that I didn’t, I turned the question around and asked him, “Governor, if you were me, why would you consider this job?” He leaned across the desk and said, “It’s about meaningful work.” He pulled out a collection of poems and began to read “To Be of Use” by Marge Piercy. {See the sidebar} It moved me. I thought about what it would be like to do really meaningful work. I suddenly went from “Why would I want to take this job?” to “How can I not?” Whether at Oracle or Sun Microsystems or Citigroup, I’ve taken jobs for three reasons: to work with great people, to learn, and to help. Becoming the CIO of the state of Colorado met all three criteria in a big way. Fixing the Broken Pieces In a public-sector role, you’re in the spotlight. You typically have two phones, one for personal use and the other for work, your e-mail is subject to open review by anyone upon request, and your every move is publicly scrutinized. In a private company, you go in for a performance review in front of your peers and your boss. Here, you sit before a legislative committee and everything you say is streamed to millions of people. It’s an adjustment — and one that began right away for me. Within five minutes of the announcement of my appointment, I got a call from a reporter at the Denver Post. He had been covering the problems plaguing the Colorado Benefits Management System, or CBMS, for more than seven years. The first words out of his mouth were, “How are you going to fix it?” It was a huge problem. Back in 2004, state leaders wanted to consolidate the multiple systems supporting state benefits and welfare programs into one massive system in order to help citizens quickly and easily determine their eligibility for more than 100 programs. It was a great idea aimed at helping the state’s most vulnerable population. But the project was doomed from the start. It didn’t receive adequate funding. Four I thought I’d go ahead and meet with the Governor and his team to hear what they had to say. After that, my plan was to shut them down. Colorado Gov. John Hickenlooper convinced... ...Kristin Russell to do a stint in public service, as head of the Office of Information Technology, where her... ...first big challenge was sorting out the problems of the Colorado Benefits Management System.
  • 20. pilot counties deemed the new system unworkable. Yet it went live anyway. CBMS’s troubles continued, and the state was forced to pay millions of dollars in sanctions to the federal government for food stamp overpayments. In 2010, just six months before I joined, the system collapsed under increased loads because of the recession and was down for 15 hours in a single month. Inside the government, CBMS was known as “C and B, Our Mess.” A federal audit of the system in 2011 cited serious problems that could have resulted in a loss of federal funding. Numerous legal cases had been brought against state agencies, and Colorado settled a lawsuit brought by an advocacy group over benefit delays and wrongful denials of benefits that affected nearly one quarter of a million enrollees. The system was a matter of life and death for many Colorado residents. I knew I could be of use. I wanted to make sure that CBMS was no longer a four-letter word. But, as Marge Piercy’s poem had said, that meant I had to “strain in the mud and the muck to move things forward,” to “do what has to be done, again and again.” Technology Problems Are People Problems The first committee meeting I attended was hostile. There had been a series of promises and attempts under two separate administrations to fix CBMS, but nothing had worked. People told me nothing ever would. I went out to several counties myself and sat down with people to understand their experiences. They would hit a button and go to lunch, hoping the system would be working by the time they got back. I hired a CTO, also from the private sector, to take a deep dive into the 29 CIO Straight Talk It’s easy when there are problems with big IT projects in the public sector to point the finger at the vendor. We didn’t do that. bottlenecks. There was also no governance around the system. The agencies, departments, and counties that used it were fighting. I always say, “Technology is simple. People are hard.” My job was to demonstrate that we understood what the problem was and that we could fix it. We needed to bring everyone to the table to make the tough decisions about what we were going to do. We created an executive steering committee for CBMS, which was made up of the Executive Directors of the agencies, representatives from the Governor’s Office, county leaders, and me. We set up structured processes for how often we would meet and how we would make decisions. We drew pictures to show everyone exactly why the system wasn’t working and what we could do about it. The joint budget committee stuck its neck out to give us funding. And we created our first 18-month plan, focused largely on turning around the failed system. We set up data and metrics of what success would look like. Every quarter we reported back on what we had accomplished and what our next steps would be. Increasingly, companies recognize the value that a CIO can bring beyond delivering and managing enterprise systems. Some take on additional responsibilities in, for example, HR, digital marketing, operations, or strategy. In the state of Colorado, I wasn’t just the CIO. I was also the Secretary of Technology. Governor Hickenlooper clearly sees technology as a huge driver of economic growth, today and in the future, for the state of Colorado. We’re creating a public-private ecosystem that enables entrepreneurship and innovation to grow naturally. Our goal is to change how the state looks at itself and how technology companies and professionals look at the state. As the CIO, it’s a natural fit. A few years ago, I started the IT Economic Development advisory council, which has executive members from across Colorado’s technology community. We discuss what it’s like to manage a technology organization in Colorado and what we are doing to improve Colorado as a place to do business. We also reach out to Colorado’s technology companies to thank them for their business and commitment to the state. Colorado’s a great place to attract talent. It draws in people because of its natural beauty, entrepreneurial spirit, and business-friendly climate. We like to say that Colorado is a place where you can live, work, and play. Politically speaking, we’re a third Independent, a third Democrat, and a third Republican. That requires a collaborative environment that translates to trust and stability for businesses long term. We’ve had more than 17,000 new tech job announcements since we started. We’re doing amazingly well with the start-up community by bolstering our epicenters for entrepreneurship. Boulder has the most start-ups per capita of any city in the country, according to a study by the Kauffman Foundation and the Engine research group, with Fort Collins-Loveland in second position, Denver sixth, and Colorado Springs ninth. As much as my CIO role fueled my position as Secretary of Technology, the benefits also flowed the other way. As a result of being out among leading technology companies, I was very aware of what was going on and what cool new projects and solutions were coming to market. That kept my eyes open as I helped shape the technology strategy for the state. The Benefits of a Dual CIO Role
  • 21. Colorado Governor John Hickenlooper’s efforts to convince Kristin Russell to be the state’s Secretary of Technology and Chief Information Officer included reading her this poem. To Be of Use By Marge Piercy The people I love the best jump into work head first without dallying in the shallows and swim off with sure strokes almost out of sight. They seem to become natives of that element, the black sleek heads of seals bouncing like half-submerged balls. I love people who harness themselves, an ox to a heavy cart, who pull like water buffalo, with massive patience, who strain in the mud and the muck to move things forward, who do what has to be done, again and again. I want to be with people who submerge in the task, who go into the fields to harvest and work in a row and pass the bags along, who stand in the line and haul in their places, who are not parlor generals and field deserters but move in a common rhythm when the food must come in or the fire be put out. The work of the world is common as mud. Botched, it smears the hands, crumbles to dust. But the thing worth doing well done has a shape that satisfies, clean and evident. Greek amphoras for wine or oil, Hopi vases that held corn, are put in museums but you know they were made to be used. The pitcher cries for water to carry and a person for work that is real. we had accomplished and what our next steps would be. It’s easy when there are problems with big IT projects in the public sector to point the finger at the vendor. We didn’t do that. Instead we worked closely with people at the vendor to restructure the relationship, to give them more accountability and a stake in the outcome. I think it helped that I came from the private sector and could understand their frustration about not being able to talk with people who understood what they were trying to do. Things started to turn around. It was a lot of listening, communicating, setting expectations, being transparent, and following through. It’s basic stuff, but sometimes it doesn’t happen. A Foundation for the Future By the time I left, we were meeting standard timelines to determine benefits eligibility approximately 90% of the time. More than 95% of CBMS transactions were happening in less than four seconds; our original goal was 80%. We also reduced help desk tickets by 35% and improved system performance by 30%. Those are great numbers. But the thing that made us most proud was seeing the actual results — the residents of Colorado getting the benefits they so desperately needed. It was a lot of listening, communicating, setting expectations, being transparent, and following through. It’s basic stuff, but sometimes it doesn’t happen. And the CBMS project created a solid foundation, both from a technology and a governance point of view. We took the governance structure created for this project and expanded it for use with all major IT projects, and we moved on to our next 18-month plan. The first plan focused 85% of our investment on fixing what was broken. In our most recent budget request, we inverted that: 88% of the budget is for new projects, such as PEAK, an online portal that enables Coloradans to apply, update, and check on the status of any type of benefit online, with anytime, anywhere, any-device access. Colorado also was one of a handful of states that successfully implemented the Affordable Care Act on time and without a hitch. The work we did with CBMS ensured our success in this historic effort. 25 CIO Straight Talk 16 CIO Straight Talk
  • 22. Every time I take a job, I have a 90-day plan. I write an epitaph for what I want to have accomplished when I leave. In my Colorado position, I wanted to create an IT organization that the state could be proud of, that would deliver critical services to the citizens of Colorado. I’ve done lots of systems implementations — big, important enterprise systems for huge companies. But I’d never done anything like this. Yes, it was truly meaningful work. The Takeaways • Public-sector roles can be uniquely challenging: As a public official, your every move is scrutinized, your “performance reviews” might take place before a legislative committee, and you are apt to inherit — and be expected to solve — high-profile messes. • Technology is simple. People are hard. Solving problems that affect hundreds of thousands of citizens requires listening to their needs and to the experiences of the people trying to implement the technology, and then instituting a rigorous process for tackling the issue and defining success. • It‘s easy when there are problems with big public-sector IT projects to point the finger at the vendor. It’s more helpful to work closely with people at the vendor to restructure the relationship, to give them more accountability and a stake in the outcome. The ROI Under Russell’s leadership, the State of Colorado’s Office of Information Technology… • Upgraded and transformed the Colorado Benefits Management System into a reliable and trustworthy system • Consolidated more than 15 disparate e-mail systems into a single, cloud-based collaboration system for the entire executive branch • Took the lead in the nation’s first multi-state cloud-based unemployment insurance solution (WYCAN) • Launched the Colorado Information Marketplace — the state’s first open, data sharing marketplace promoting government transparency, economic development, business intelligence, and analytics • Began modernizing a 23-year-old financial and accounting system that handles in excess of $35 billion in annual expenditures and revenue 25 CIO Straight Talk 16 CIO Straight Talk
  • 23. Straight Talking AARP (formerly the American Association for Retired Persons) is a U.S.–based nonprofit, nonpartisan organization with more than 37 million members devoted to improving the lives of people over the age of 50. AARP’s TEK (technology, education, and knowledge) events, like the one pictured here, offer free, user-friendly training to older individuals who want to enrich their lives through new technologies. 23 CIO Straight Talk
  • 24. When it comes to IT’s potential, a nonprofit organization is no different from a business. At AARP, IT employees turned themselves from technologists into strategic leaders, transforming their department into a source of value for AARP members. 24 CIO Straight Talk Running IT Like a Business . . . at a Giant Nonprofit POSITION: Executive Vice President and Chief Information Officer COMPANY: AARP WORKS FROM: Washington, DC PROFESSIONAL BACKGROUND: Terry Bradwell, the Executive Vice President and Chief Information Officer at AARP, is responsible for managing a $100 million annual budget that supports all AARP stakeholders, including members, volunteers, advocates, donors, external business partners, and internal staff. He previously served as AARP’s Vice President of Application Services Management. Prior to joining AARP, Bradwell was a principal for IBM’s Media and Entertainment practice, with a primary focus on turning around troubled IT projects and corporate change management initiatives. While at IBM, he successfully led the turnaround efforts of AARP’s first integrated membership management system (Konnex) and established the framework for AARP’s Chief Information Officer role. EDUCATION: BS, Florida A&M University PERSONAL PASSIONS : Family time, travel, playing piano Hollis “Terry” Bradwell III TBradwell@aarp.org
  • 25. Many people assume that nonprofit organizations like AARP don’t have to run like a business. But even though the focus of a nonprofit is the social mission, you’re still in the business of delivering on the aspects of that mission. There are operations to run, services to deliver, customers to satisfy, a bottom line to meet. You’re in the business of doing good, but it’s still a business. And at AARP, it’s a multifaceted business. Our mission is to equip Americans to age with dignity and purpose. That covers a broad spectrum of services — health care, entertainment, employment, long-term care, technology. We tackle each of those and more, and that makes us a very large and very complex business. I’ve been with AARP since I AARP TEK is one of the most exciting programs to come out of AARP in recent years. And it came from IT. fell in love with its mission 12 years ago. But when I became CIO, in 2011, I saw the opportunity to turn around the technology organization. The IT department had been very tactical in its approach, delivering systems as needed with no real long-term strategy. Our infrastructure had grown organically over the years. And while organic growth works, it’s not efficient, and it’s very costly. I want IT to run — and think — like a business. We run operations. We have customers. We provide services. We have a bottom line. You might think we don’t have competition. But we have that, too. If we’re not quick or agile enough, our customers will turn elsewhere for their IT needs. We’re no different than any other company. I wanted to provide more value to AARP and become much more efficient in delivering our products and services to the organization. People First Whenever you make significant change in a technology organization, you have to consider people, process, and technology. A lot of IT leaders start with process. But I always start with people. People are your most valuable assets. Nothing happens without them. I can say that I want to run IT like a business until I’m blue in the face, but it’s not going to happen until I have these folks on board and a new culture embedded in the organization. I began this transformation with my leadership team. I needed to make sure we were all on the same page. Then we could set the right tone with the rest of the organization. But that’s not as simple as it sounds. We have always had a lot of great people in this organization. But when you’ve been doing the same things the same way for many years, you get comfortable with it. When you try to change that, it’s difficult. The default may be to push back or stand still. We spent a lot of time working with 25 CIO Straight Talk our leadership team to make sure we all embraced common values and beliefs from a business and technology perspective. Some of my team came through that process, and others did not. It had nothing to do with their capabilities or skills. Where we were trying to go strategically just wasn’t the right cultural fit for everyone. Although it wasn’t easy, it helped facilitate some of the other transformational changes we needed to make. Once you set a new course with the right leadership, it propagates to the rest of the staff. Change is still hard, but you have a “coalition of the willing” working on creating the right strategy for technology, figuring out the best processes, and aligning with the business. My direct reports and I became less like technologists and more like leaders of what is essentially a $150 million business. Technology is what we do, but it’s not who we are. We are like a start-up with customers to serve, partners to integrate, and services that need to be relevant to our customers. And since we’re now running IT like a business, we need some of the same non-tech skills any company does. For example, I hired a marketing and PR professional. It is a thankless job. We rarely get attention unless something goes wrong. So our IT marketing manager finds opportunities to promote IT’s value. Strategic Sourcing Once we had the people in place, we made an assessment of all our technology and services to determine which were providing value and which were not. It was a long, hard look at our own environment. We uncovered areas that were working where we could double down and deliver more. We discovered opportunities to tackle issues that customers had been unhappy with for years. Over the past three years, we’ve decoupled more than a decade’s worth of systems and processes that we had amassed and, in many cases, replaced them with new technology and processes that are more suited for our long-term strategy. We have taken a similar approach to our outsourcing portfolio. We had been doing quite a bit of outsourcing. But just as our technology infrastructure grew organically over the years, so did our outsourcing. There was no long-term focus. We took a step back and created an outsourcing strategy. We narrowed our partners down from more than 30 IT suppliers to just a handful of service providers that could do meaningful and purposeful work for us, not just handle our spot needs. We get to leverage their
  • 26. mature processes and the investments they’ve made. And, as a result, our service delivery improves and our costs go down. As a result of that shift in sourcing strategy, the skill sets we need have changed. We no longer need to have capabilities like development and systems support in-house, but we do need experienced vendor managers and business solution architects. Today, we have four primary partners: HCL for application support services, IBM for ERP maintenance, CSC for cloud computing, and Ciber for project management and analytics. It’s all work that we could certainly do for ourselves. But if we did, it would mean spending 80% of our time supporting day-to-day operations and only 20% planning for the future. I wanted to flip that. Our partners are doing very important work that we couldn’t afford to provide. And I can take the money that I save and invest it in even higher value work. We can spend our time working closely with the business to plan for the future. IT Takes Center Stage Having those partners to rely on has freed up our IT organization to identify areas of the business where we can bring new and innovative services to the table in order to enhance the value of AARP’s mission — in ways that even the business hadn’t considered before. In the past, we were viewed by the rest of the organization as strictly an operational group behind the scenes. But I want IT up on that stage. We can deliver more value than just CRM or ERP or ECM. We can 25 CIO Straight Talk deliver value to our membership at large. A great example of that is our AARP TEK Pavilion initiative. TEK stands for technology, education, and knowledge, and the program offers free, hands-on training to seniors who want to learn how to use consumer electronics, computers, and social media to enrich their lives. Today, 20% of Americans have yet to get online — and half of those folks are age 65 or older. Yet being online is an imperative in the 21st century, whether you’re trying to rent a movie or do your banking. We saw an opportunity within IT to create a program to educate our members about technology. We worked with our major vendors, including Microsoft and AT&T, to provide us with sponsorships, equipment, and storefronts for the nationwide program that we are launching in 60 markets this year. The program has elevated IT’s status and gotten us out of the back room as we’ve engaged with every major function within the organization, from marketing to membership, to get the AARP TEK program off the ground. It’s one of the most exciting programs to come out of AARP in recent years. And it came from IT. Now that we’ve done a lot of the heavy lifting regarding the IT transformation, the goal is to make sure that what we do has business impact, whether it’s new capabilities we’re rolling out like single sign-on or the effort we’re making to provide 100% systems access via mobile devices. We’ve set the stage. All the players are here. The curtains are open. It’s show time. • Running IT like a business, instead of a support function, requires a shift in mind-set: IT has customers and a bottom line. It also has competition. To remain relevant to customers, IT needs some of the same non-tech skills any company does, such as PR and marketing professionals who can find opportunities to promote IT’s value. • Any leader transforming a technology organization must consider people, process, and technology. A lot of IT leaders start with process. But no new process will be effective unless the people are all on the same page. • Left to develop organically, an outsourcing portfolio may lack a long-term focus. Instead of turning to outsourcing partners on an ad hoc basis, as needs arise, companies should be thinking in terms of an outsourcing strategy, choosing partners with processes and skill sets that can support strategic goals. The Takeaways
  • 27. Straight Talking Headquartered in North Sydney, Australia, WorleyParsons is a global provider of professional services to the resources and energy sectors, including the design, engineering, and operation of offshore oil and gas production platforms, such as the Bayu Undan facility in the Timor Sea (pictured here). The company has 166 offices in 43 countries. 13 CIO Straight Talk
  • 28. Being a CIO today requires a whole new set of skills and traits. Here’s a starter list from a CIO with an unusual perspective on the job. 20 CIO Straight Talk Seven Habits of the Highly Successful CIO Brian Adams POSITION: Chief Information Officer and Director of Procurement COMPANY: WorleyParsons WORKS FROM: Perth, Australia PROFESSIONAL BACKGROUND: Brian Adams is in his eighth year with WorleyParsons, where he is the Global CIO and Director of Procurement. Previously, he was the CFO for Australia and New Zealand, having joined the company as the Director of Strategy and Development for that region. Adams has spent over 20 years in senior international roles with well-known companies, such as Caterpillar and Ernst & Young. His career spans Australia, Africa, Asia, and Europe. Adams is a Fellow of the Council of Guildford Grammar School and is a graduate of the Australian Institute of Company Directors. PERSONAL PASSIONS: Snow skiing, saltwater fishing, motorcycles (he once rode a British Royal Enfield, made in India, back to England from a work assignment in Calcutta), raising money for Future Hope (www.futurehope.net) Brian.Adams@WorleyParsons.com
  • 29. A wise man once said to me, “Brian, there are only two types of people in the world: the maintainers and the changers.” I’ve always chosen to be a changer. Most of my career steps have reflected my desire to round out gaps in functional and operational expertise. I’ve had marketing, services, manufacturing, and finance roles. I’ve worked at companies ranging from Caterpillar to a mining consultancy to Ernst & Young. But when I talk about myself as a changer, I don’t just mean in my career moves. I’ve also actively sought roles that provide fantastic change management challenges. When I joined WorleyParsons eight years ago, I first managed strategy and development for the Australia and New Zealand region and then I led the regional finance group as the regional CFO. In that position, I was forever poking sharp sticks at the IT function, not because they weren’t doing a good job, but because they were not engaged with the business. They were like maintainers. If there’s one thing that has become apparent to me from my years outside IT looking in, it is that IT must be an organization of changers. The enterprise of the 21st century — an era that is (as they say in the military) “VUCA”: volatile, uncertain, changing, and ambiguous — requires an innovative, strategic, and business-aligned IT function. Our CEO at the time agreed. And he turned me from poacher into gamekeeper, giving me my first CIO role. I believe this varied If there’s one thing that has become apparent to me from my years outside IT looking in, it is that IT must be an organization of changers. background provides me with an interesting perspective on the capabilities that a CIO needs in order to succeed in this new world. We are at a tipping point, and the traditional CIO has to change to meet the demands of the business. If that doesn’t happen, there’s going to be a lot of turnover in the position. As I’ve settled in to this latest leadership challenge, I’ve put together a list of the skills and traits I believe are critical for CIOs leading IT organizations today. 1. Take a Walk on the Non-IT Side I’ve had a long career outside the walls of IT, which has proven invaluable in my current CIO role. All too often, a CIO will have worked his or her way to the top of what was traditionally a technical function, without a well-rounded knowledge of the business and with little ability to comprehend the complexity of how an organization works. I believe that any IT leader who can spend significant time in non-technology roles will benefit. Giving promising IT folks the opportunity to rotate in and out of IT to instill that understanding of the business 21 CIO Straight Talk is a great idea. In fact, such rotations are a great idea for employees in any central business-enabling function, whether IT or finance or HR. In reality, however, it can be difficult to implement. Taking a purely technical professional and finding him or her a role in finance or HR or procurement or manufacturing might not work. Once you get to the more senior levels of the IT organization, it’s a bit easier. But a few progressive companies, like my former employer, Caterpillar, are showing how this can work. They do a fantastic job of moving people throughout various functions so that when they get to the executive level they understand how all the parts come together. That’s what a CEO wants in a CIO. That’s what a CEO wants in any strategic executive. If you’re too functionally specific, you won’t last long. A CIO who’s spent 20 years in IT probably isn’t capable of having a conversation about anything other than IT. 2. Be Business Curious A CIO who’s a changer, not a maintainer, needs the intellectual curiosity that leads him or her to question how the business works. He or she needs the desire to understand what makes the business tick — even more than what makes IT tick. Where is the money made? Where is the money lost? Where are sales made? Where are sales lost? What makes employees more productive? What makes employees less productive? Those are the questions that should be top-of-mind — not, how do I optimize my storage? I meet CIOs who get turned on by technology but not by the business. That doesn’t work if you want to be a business-aligned CIO. 3. Speak English Traditionally, the successful CIO was a technical expert. I am not. And I am happy to raise my hand and say, “I have no idea what that means. Can you explain it to me in layman’s terms?” There is no greater Jedi mind trick for making someone fall asleep than to talk about servers, storage, or — God forbid — network uptime. Unless you can translate the tech speak into the language of the business, being a technical expert can be a hindrance to a CIO today. Yes, you need a fundamental understanding of technology so some IT guy or vendor doesn’t pull the wool over your eyes. But a successful CIO will talk in terms of what IT can do for the business to enable it or differentiate it or come up with differentiated product solutions. Companies today don’t need a CIO who’s a chief infrastructure officer. They need a CIO who’s a chief
  • 30. All too often, a CIO will have worked his or her way to the top of what was traditionally a technical function, without a well-rounded knowledge of the business and with little ability to comprehend the complexity of how an organization works. I believe that any IT leader who can spend significant time in non-technology roles will 26 CIO Straight Talk innovation officer. They don’t care how you’re going to configure your servers to optimize your networks. They care about your ability to bring about change. 4. Have the Courage of Your Convictions There are still plenty of organizations that assume a CIO or IT manager ought to just do what he or she is told to do. But the new CIO must resist being put inside that order-taking box. It takes a fairly strong character to confront and overcome some of the pushback you get from the business without alienating them. It’s absolutely necessary. When banks asked customers if they’d like ATMs, they said, “Hell no!” When Apple asked customers if they’d like an iPad-sized tablet, they couldn’t see the value in it. But banks built the ATMs. Apple developed the iPad. And the rest is history. A CIO needs to do that sometimes — push past resistance to introduce systems or processes that they are convinced will have value to the business. I recently introduced a new communication and collaboration platform. When I talked to people about it, their eyes glazed over. They didn’t want an internal social network. But we pushed ahead, and now it’s widely used, creating fantastic value for the business. 5. Learn Your Financial ABCs Traits like the desire to understand how the business works or to stand up for the value of IT may be somewhat innate. You either have them or you don’t. There are other equally valuable skills that take a bit more effort to acquire. Having a solid financial understanding falls into the latter category. You must be able to create a compelling business case for anything you want to do. Modern CIOs have to be commercially savvy about return on investment or they will continue to struggle to convey the value of technology. If you aren’t commercially and financially savvy, IT will never be considered a strategic differentiator in the business. It will be thought of as just another budget item to manage. 6. Get to Know the Other Functions Clearly, it’s important to build strong relationships with the CEO and COO, whose support you will need for your initiatives. But it’s also critical to have good relationships with all corporate functions. Going beyond just delivering what the function traditionally wants is what we all need to aim for. When talking to Finance, don’t just think of the systems that you need to deliver for accountants; think of how you can help Finance provide valuable commercial insight that will help the business make better decisions. When talking to HR, don’t just think of the traditional systems of compensation and benefits; think of what you can do as CIO to make employees not only more productive but happier in benefit. carrying out their work, thereby helping recruitment and retention. When talking to the CMO, help him or her figure out how to gain access to new markets and demographics using social tools, instead of just supporting the corporate web site. 7. Think Strategy First Many CIOs and IT leaders are smart tactical problem solvers. But a CIO today needs to be capable of having a high-level, strategic conversation about where the company is going. It makes sense for a CIO to be part of the CEO’s strategic growth team. After all, in today’s digital enterprises, there is a strategy piece in everything that IT does. Technology is a critical component to the long-term strategy of the organization. Many CIOs can’t have that conversation; they’re not even invited to that conversation. They’re incapable of discussing how to raise market share or how to adjust pricing strategies or how to target a new market. A recent survey by Harvard Business Review and Dell found that 75% of CEOs think strategic CIO involvement is key to business success and that companies in which the CEO and the CIO are aligned outperform organizations lacking that alignment by a 2:1 differential. This research indicates that less than a third of CEOs think their CIOs are “above average.” And of that group, only 40% think their CIO is knowledgeable enough about
  • 31. 26 CIO Straight Talk the business to provide true strategic differentiation. (http://innovatebusinessit.com/research-what-does-th e-c-suite-think-about-your-future/) Today’s CIOs must bring value to the strategy discussion and align IT’s budget and strategy to the business strategy. They must be comfortable approaching the CMO to talk about how IT can help target a new demographic, perhaps sparking a whole series of conversations around apps, social media, digital advertising, and all of those things that the CIO would otherwise never be party to. CIOs who ask the right questions get engaged in more value-adding conversations with the business. Get to know your peers on the business side. Learn how to think and talk as they do. If possible, become one of them for a while. Understand how what you do fits into the organization’s overall business strategy. At the same time, know that you are the technology expert. Don’t be afraid to champion a great idea that may not initially make sense to them. Your adoption of behaviors such as these will help the IT function become something much more than a cost center — and help you become a key member of the CEO’s decision-making team. • CIOs today need to be “changers” rather than “maintainers.” They need to engage with the business, participate in the high-level strategic conversation about where the company is going, and then help the company get there. • A CIO who has spent 20 eyars in IT probably won’t be able to play a broader strategic role. It’s imperative to spend time in a variety of non-technical roles, to be curious about what makes the business tick, and to know how to talk about technology in layman’s terms to other functional executives. • Plenty of organizations still assume that the CIO is the person who takes technology orders. But to align IT with the business, the CIO must resist that role and be prepared to make a business case for technologies whose strategic value the non-tech people don’t yet understand. The Takeaways ***
  • 33. Straight Talking UPM, a global bio and forest products company based in Helsinki, focuses on creating value from renewable and recyclable materials. UPM’s wood-based biofuel is compatible with all diesel engines, meets EU and U.S. diesel standards, and can be distributed through existing gas stations. 13 CIO Straight Talk
  • 34. Creating and running an effective IT organization is no easy task. Here are some principles that go beyond the well-worn prescriptions for success and offer new ways to think about this critical leadership challenge. 20 CIO Straight Talk Seven Essentials of the Highly Successful IT Function Turkka Keskinen POSITION: Chief Information Officer COMPANY: UPM WORKS FROM: Helsinki PROFESSIONAL BACKGROUND: Turkka Keskinen has been the CIO of UPM since October 2008. He has held a variety of roles during his long career with the company, most of them in finance and control. Before becoming CIO, Keskinen was a Senior Vice President for Financial Services and Business Control. In that position, he transformed Finance and Control from a function based in the business units to a global function. He also served as controller and as a member of a divisional management team, and from 1999 to 2002 he led a global SAP program for UPM. In 2010 he was recognized as the IT People Director of the year in Finland, and in 2012 he was awarded the CIO of the year in Finland. EDUCATION: Master’s degree in finance and business administration, University of Tampere PERSONAL PASSIONS: Tennis and all sports, family, motorbiking, and reading popular science turkka.keskinen@upm.com
  • 35. In the past, our IT organization delivered 60% to 65% of what the business expected and so ended up disappointing users. Today we are delivering 90% or 95% of what is expected. We didn’t change anything about our delivery, but we did change how we managed expectations. Let’s put it bluntly: It doesn’t matter what IT thinks about IT. What matters is what the business thinks about IT. In fact, business perception becomes IT reality. Several years ago, after I had been in the CIO role for a couple of years, I set out to create a list of the principles — you might even call them philosophies — that I believe define a successful information technology organization in the eyes of the business. I brought a special perspective to this task, because I had come to my CIO position from the business side, where I was a customer of IT. In fact, most of my career at UPM, a global bio and forest industry company based in Finland, has been in finance and internal controls. As I compiled my list, I tried to prioritize the items, putting the most crucial principle first, and so on. The version offered here isn’t comprehensive. But these are my top seven defining characteristics of a successful IT function , all of which we in UPM’s IT function try to live daily. 1. Run IT Like a Business To do this, you have to know the business that IT is in. That means understanding the roles of IT’s owners and IT’s customers. The owners, whether it’s the CEO or CFO, may view IT as a cost center to manage. The customers are looking to IT for technology solutions that will meet the business’s needs and strategies. Those two groups, however, have to be in sync. Otherwise, the customers may be seeking solutions that the owners aren’t willing to fund. Both groups need to be sitting at the same table, literally, or you will end up not pleasing either one. At UPM, we created an IT steering committee with representatives of all businesses and functions — IT’s customers — that meets six times a year and with the company’s executive committee two times a year. I don’t lead either committee. I can, however, guide the two groups as they together prioritize investments. But — and this is crucial — IT’s owners and customers must make the final decisions. This process makes the owners and customers accountable for IT, even though they don’t deliver it. 2. Think Service First IT must understand its customers — not just the senior business “buyers” of a system but also the end users of that system, who may number in the thousands. Too many IT organizations are isolated from end users. And what those users want is friendly, empathetic, person-to-person service — particularly of the “how do I use this” kind. Of course, excellent IT service is based on excellent IT service processes. But people deliver it. As for the higher-level “it’s not working” service requests, listen carefully to what your customer is saying. Never say no, but reserve the right to resolve the issue the way you think is best. Of paramount importance: Deliver as agreed upon — with a smile and without excuses. It’s easier to do that if you don’t overpromise. In the past, our 21 CIO Straight Talk IT organization delivered 60% to 65% of what the business expected and so ended up disappointing users. Today we are delivering 90% or 95% of what is expected. We didn’t change anything about our delivery, but we did change how we managed expectations. 3. Empower Your People IT is made up very smart people. To get the best performance, you need to strike the right balance between directing them and setting them free. I like to say you need to be tough on targets and easy on people. IT professionals aren’t afraid of a challenge, but they don’t want to suffer under oppressive and unnecessary hierarchies. I believe in giving people the flexibility they need to deliver and then rewarding them for results. Not everyone is comfortable with that level of empowerment at the start. If someone comes into my office with a problem, I will coach him or her through taking on the accountability for solving it. They leave with an idea of how they might do that. 4. Keep IT Simple One of the biggest problems for the IT organization is that its native language isn’t understood by business. Another related problem is complexity, which is a killer not just for IT’s interaction with the business but also for the development and management of IT’s operations. It’s imperative to make IT simple for the business to understand and for the IT organization to run. I make sure my team members understand that using technology jargon and acronyms doesn’t make them look like the smartest person in the room. Explaining something in a way that everyone can understand does make them look smart. Don’t throw out terms like
  • 36. “middleware” that mean nothing outside of IT. Use metaphors to explain technical concepts. For example, you might say that middleware is like the plumbing that connects the water supply to a house. It’s equally important to simplify expectations and decision-making processes. If the business perceives IT as complicated, it is complicated. Perception is reality. You must manage that. 5. Do the Right Things If you want to serve the business, the business must determine and prioritize the IT portfolio, including only those projects that create value for the business. But let’s be honest; business people are not technologists. Nor should they have to be. IT’s role is to help the business determine its technology needs and justify them to IT’s “owners.” At UPM, we have made templates that help define the components of a technology proposal one by one. The templates create a clear structure not simply for the proposal but for how the IT is developed. So when business people come to the IT steering and executive committees, they are presenting their requests in a standard format. This makes it easier for the business to take ownership of the IT prioritization process. 6. Do the Things Right Just as a successful IT organization enables the business to prioritize its own IT portfolio, it must also involve the business in implementation. Here at UPM, we nominate a top-level project chairman for the steering team, who represents the business or function benefitting from the project. On the IT side, we nominate only the most skilled project managers, and they report directly to the project chairman. By appointing a project chairman from the business side, the projects become true collaborations between IT and business. That ensures that business benefits are driving the project. A rigorous project management process is also necessary. Perhaps most important, you must pay attention to the people running the project. A successful IT shop takes care of its project teams through all phases of development and implementation. 7. Mirror the Business IT leaders have preached the importance of business alignment for years. But how do you achieve that? Typically, a company has an organizational structure and IT has its own, different structure. I have found that it’s far more effective to model IT’s structure after the business. That is what we’ve done at UPM. There’s an IT group that works with global business process owners, another with local business managers, another with end users, another with portfolio and project management, and 21 CIO Straight Talk others linked to strategy, sourcing, and other support functions. We involve the business in any key nominations within those groups and make sure to rotate people through them. But perhaps “mirroring the business” sounds too passive. What we in fact are trying to do is zipper together the IT and the business organizations. We want our efforts so aligned — intermeshed, even — that the gap that exists in so many companies is closed and our work and goals are shared. *** As I said, these are not the only guiding philosophies of a successful IT function. For example, I believe you need to manage and lead your suppliers — instead of letting them manage and lead you — while treating them like members of your own team. You must create an enterprise architecture road map — one that includes not only processes, technology, and applications but also data — without feeling the need to follow it slavishly. You need an explicit agreement with business about security levels. And so on. But an IT organization able to embody these seven concepts , as we have tried to do at UPM, will have in place the basic elements to ensure effectiveness and success. The Takeaways • It doesn’t matter what IT thinks about IT. What matters is what the business thinks about IT. It’s useful to think in terms of IT’s owners and IT’s customers. The owners may think of IT as a cost center. The customers are looking for business solutions. The two groups need to be in sync. • IT needs to be simple for the business to understand and for the IT organization to run. If the business perceives IT as complicated, it is complicated. • A successful IT organization enables the business to prioritize its own IT portfolio. It also involves the business in implementation.
  • 37. Straight Talking Chemtura, based in Middlebury, Connecticut, is a global specialty chemicals manufacturer whose products are sold in more than 100 countries. The company serves major industries, including transportation, energy, and electronics. 23 CIO Straight Talk
  • 38. When Richard Seltz joined Chemtura, he seized the opportunity not just to facilitate the company’s strategic divestitures but also to rethink the way IT operated. 24 CIO Straight Talk Reimagining IT POSITION: CIO and Vice President, Information Technology COMPANY: Chemtura WORKS FROM: Philadelphia, Pennsylvania PROFESSIONAL BACKGROUND: Richard Seltz joined Chemtura in 2011 and became the CIO in 2012. In that role, he has transformed the organization to reduce costs while seeking to improve customer satisfaction and service levels. Previously, Seltz was the global business leader for the transportation adhesives business at Rohm and Haas (now Dow Chemical). Prior to joining the chemicals industry, Seltz was a Vice President and cofounder of GeoStrategy Consulting, where he focused on growth strategy and operational reengineering with Fortune 200 clients. His consulting career also included positions at CSC Index, Viant, and EDS. served as a U.S. Peace Corps volunteer and cofounded the first English-language newspaper in Bosnia. EDUCATION: BSBA, University of Florida; MBA, the Wharton School of the University of Pennsylvania PERSONAL PASSIONS : Travel to off-the-beaten-path places and keeping up with my two boys Richard Seltz Richard .Seltz @chemtura.com