© 2009 IBM Corporation Robyn Bennett Vice President, Marketing Programs and Enablement IBM Global Technology Services

© 2009 IBM Corporation

Robyn BennettVice President, Marketing Programs and EnablementIBM Global Technology Services


IBM C‐Suite Studies provide insight and context into the mindset of senior decision makers.

InauguralGlobal CIO Study 2009

Released September 2009

Global CFO Study 2010Released March 2010

Global CEO Study 2010Released May 2010

Over 5,300 Face‐to‐Face Interviews Conducted

© 2009 IBM Corporation3

Between January and April 2009, IBM conducted 2,598 face-to-face interviews with CIOs – Represents different sizes of organizations in 78 countries and 19 industries

Analysis incorporates Profit before Tax (PBT) growth data, relative to peers in their industries, to associate CIO organizations with one of three growth levels: High, Medium or Low.

– Context (Low-growth v. High-growth) reflects environment in which CIO operates

Geography Organization SizeSector

Public18%

Distribution24%

Financial Services

21%

Industrial24%

Others2%Communications

11%

In the largest known sample of face-to-face interviews, we spoke with CIOs to understand their goals and challenges


Our analysis provided insights into how CIOs can make the biggest impact on behalf of the entire organization CIOs are much more actively engaged in:

– Setting strategy– Enabling business flexibility and change– Solving business problems, not just IT problems

CIOs spend an impressive 55% of their time on activities that spur innovation:

– Generating buy-in for innovative plans– Implementing new technologies– Managing non-technological issues

However, CIOs universally acknowledge that some of their most important objectives sometimes seem to clash

– How can we support the introduction of new services while avoiding the disruption of existing services?

– How can I reduce costs while improving services?– How will I balance the need to influence business strategy with the need

to provide top-notch IT support?


Successful CIOs blend three pairs of roles that seem contradictory, but are actually complementary

AblePragmatist

SavvyValue Creator

RelentlessCost Cutter

CollaborativeBusiness Leader

InspiringIT Manager

MakingInnovation

real

Raising the

ROI of IT

Expandingbusiness impact

InsightfulVisionary


Insightful Visionary andAble Pragmatist

Making innovation real

“Innovation should be based on practical technology that can deliver business objectives within reasonable time and cost, which can be absorbed by the business.” Life insurance CIO, India


46%

62%+35%

As Insightful Visionaries, CIOs are active members of the strategic team

... and are more often members of the most senior management team

High-growth CIOs reach out much more to the business to co-create and champion innovation…

Visionary CIOs recognize that successful innovation requires deep involvement with the business

“For us, innovation means generating diverse ideas to address a particular need. Then we distill them into an actionable plan that results in business improvement.” Energy and Utilities CIO, United States

”The CEO’s message to the board is that IT is necessary to be better as a company.”

Insurance CIO, Mexico

48%

67%+40%

+94%33%

64%

High growthLow growthSource: IBM Global CIO Study 2009; n = 2598


Innovation is not limited to IT solutions: Business-oriented plans rank high among CIOs’ visions of enhancing competitiveness

Ten most important visionary plan elementsInterviewed CIOs could select as many as they wanted

Source: IBM Global CIO Study 2009; n = 2345 High growthLow growth


As Able Pragmatists, CIOs make it possible to bring innovative plans to life while "keeping the engines humming"High-growth CIOs are expected to spend more time to enable the business and corporate vision

High-growth CIOs actively use collaboration and partnering technologies…

… and use third party business or IT services more often to improve their business agility “Like many other

companies, we are always exploring the possibility of utilizing external entities to

help manage the day-to-day IT operations so that,

internally, we can focus on more strategic initiatives.” Kurt Rao, Time Warner Inc.

28%-42%

Business and corporate vision enabler Core Technology services provider

46%

56%

+22%33%

53%+60%

+87%

IT Organization

22%

41%+86%

Entire Organization


15%

28%


Client Perspective: John Clarke, Senior VP & CIO, Nokia“Providing Insight to the Business"


Raising theROI of ITSavvy Value Creator andRelentless Cost Cutter

“We do recognize the strategic advantage of using data to support improved decision making … this is a key plank of our strategy going forward.” Consumer Products CIO, Ireland


44%

68%

54%

74%

As Savvy Value Creators, CIOs are skilled customer advocates that create value by truly understanding what customers want

High-growth CIOs proactively craft data into actionable information

... and anticipate much greater levels of integration and transparency with customers

In five years, CIOs expect end-customers to continuously explore new channels...

36%

58%

+61%

+37% +55%

“Having a strong data governance model that allows for a single view of the truth through accurate data is a strategic imperative.”Financial markets CIO, United States



As Relentless Cost Cutters, CIOs are perpetual seekers of savings who reduce costs through infrastructure and process standardization

Across our entire sample, CIOs spend about 14% of their time to take costs out of the ongoing technology environment

... and think business processes will be completely standardized and low cost

Many CIOs foresee a strongly centralized infrastructure in five years...

“Expectations have changed. It is about delivering a service through a simple process that can be repeated.” CIO, United Kingdom

“The balance between new projects and cost control is the dichotomy of my life.” Retail CIO, United States

50%

61%

+22%76%

76%

Of the 60 or so hours per week, some 9 hours are spent cutting costs



Client Perspective: Donagh Herlihy, Senior VP & CIO, Avon“Using information to Solve Business Problems "


ExpandingbusinessimpactCollaborative Business Leaderand Inspiring IT Manager

“IT is now seen as a key enabler to business goals and mission, and is engaged in delivering business strategy. Managing with defined goals and intent makes it easier for IT to align to business needs.”

Chris Ferguson, CIO, Elders Rural Services


61%

74%

46%

62%

As Collaborative Business Leaders, CIOs are true partners with other executives, jointly defining better business models

CIOs in high growth organizations more often receive high marks from their senior management team

53%

78%

+47%

High-growth CIOs are more closely involved in co-creating the business strategy with their fellow business leaders

+35%Decide on business strategy

as a member of the mostsenior management team

+25%Present business strategy

jointly with others on thesenior management team

Create business strategyas member of the team +21%

53%

66%


High or very high score by the entire senior management team for technology’s

contribution to the business


-51%

-67%

66%

81%

As Inspiring IT Managers, CIOs are consummate IT experts who foster IT expertise to extract and preserve critical business data

High-growth CIOs create IT centers of excellence to help realize business and technology innovation

High-growth CIOs do more to improve users’ access to data, as well as its quality

26%

44%

+69%

“We have centers of excellence for ERP and business applications, collaboration and security - some are more formal than others." Government CIO

+23%

Data is reliableand secure

Data is readily availablefor relevant users

+31%


67%

51%


Client Perspective: Tom Greene, CIO, Colgate-Palmolive“Providing Information in Time to Make a Difference"


Tuning tocontextA CIO’s Reality


The most effective CIOs consider the full range of possible influences when evaluating how each pair of roles should be prioritized

Stay abreast of market forces

Pay attention to geographical and regional particulars Know the availability of industry-specific skills

Understand how customer expectations are changing Know where competitive threats exist Understand how customer relationships are evolving

Understand the organization structure and culture Evaluate the overall business and IT situation

Request input from end users and IT colleagues to identify areas of strength, as well as improvement opportunities

Macroeconomic factors

Regional conditions

Industry characteristics

Organizational influences

Personal aspirations


Despite multiple forces in play, our findings show that CIOs are focusing on what matters most for them and their organizations

Continue the conversation at ibm.com/voiceofthecio

CIOs acknowledged the constant tension of integrating actions that sometimes seem oppositional

Over time, we expect CIOs to regularly assess how much emphasis is appropriate on each of the three pairs of roles in order to make innovation real, raise the ROI of IT and expand business impact


Questions


Additional information

For more information related to the IBM Global CIO Study, visit ibm.com/voiceofthecio

– Read industry and regional CIO perspectives on the IBM Global CIO Study's insights

– Watch respected CIOs from around the global share their lessons learned as they relate to the study results

– Take the CIO Study questionnaire yourself and see how your results compare to those of the IBM Global CIO Study

For other details on CIO strategies and insights, visit ibm.com/cio

24 © 2009 IBM Corporation

2005 Study

2006 Study2004 Study 2008 Study

2007 Study

2008 Study2005 Study2003 Study

The IBM Global CIO study is part of our C-Suite series

Total Interviews: 450 Face-to-Face: 450


Total Interviews: 1230Face-to-Face: 619



Total Interviews: 456



2010 Study


CFO Studies

2009 Study


CIO Studies

CEO Studies

CHRO Studies

2009 Study


CSCO Studies


2010 Study

IBM Institute for Business Value


How do the priorities of the CEO, CFO and CIO align to address uncertainty and complexity?

CIO Study CFO Study CEO Study

Raising the ROI of IT Enterprise Cost Reduction Build Operating Dexterity

Aims for completely standardized, low-cost business processes

Foresees a centralized infrastructure Focuses relentlessly on taking costs out of

ongoing technology environment

Standardizes processes Enterprise-wide Shared Services /

COEs or Outsourcing Adoption Rationalizes and standardizes analytical

technologies Improves asset utilization

Simplify operations and products to better manage complexity

Use iterative strategies, make quick decisions and execute with speed

Integrate globally, increase cost variability and exploit partnering to increase agility

Expanding Business Impact Drive Information Integration Reinvent Customer Relationships

Proactively crafts data into information Adds value by proactively suggesting better

ways to use data Does more to improve users access to data,

as well as its quality “Knows” that end-customers expect no less

than world class integration and transparency

Uses different approaches to help the enterprise make decisions

Improves information delivery Drives data integrity

“Getting closer to customers” is the single most important theme in the organization

Better understand customer needs through collaboration and information sharing

Exploit the information explosion to deliver unprecedented customer service

Making Innovation Real Manage Risks Embody Creative Leadership

Truly integrates business and IT to innovate Proactively reaches out to the business to co-

create and champion innovation Has a clear view of the top technological

priorities that will enhance competitiveness Does practical things to help enable the

business and corporate vision, as business leaders expect

Combines insights from operational and financial data with external factors to better navigate uncertainty

Drives risk management through CFO direct reports of Controls and Risk Management

Improves compliance on security and privacy

Creativity is #1 leadership quality Drive change in the organization to stay

ahead of market and use of wide range of communication styles and tools

Break with status quo of industry, enterprise and revenue models

Documents

© 2009 IBM Corporation Robyn Bennett Vice President, Marketing Programs and Enablement IBM Global Technology Services