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SIMFairfield-Westchester
Bart Stanco SVP, Gartner, Inc.
March 18, 2004
“Strategically Leading
The CIO Today!”
DLA Public Sector Page 2Entire contents © 2004 Gartner, Inc. All rights reserved. |
Key issues for CIO
1. Technology
2. Value (Financial)
3. Business Alignment
4. Leadership & Communications
5. Multi dimensional (keep lights on, strategic and tactical)
DLA Public Sector Page 3Entire contents © 2004 Gartner, Inc. All rights reserved. |
Technology
Need to be:
Up to date
Profit
Integrator
Technical Vocabulary
DLA Public Sector Page 4Entire contents © 2004 Gartner, Inc. All rights reserved. |
Long-Term Outlook for IT Is Brilliant,but Also Will Result in Pain for Many
200320001997 2006 2009
Cut Costs
Keep theLights On
Fix What You Have
Power Shiftsto the User
VendorsHemorrhage
MassiveConsolidation
Power Shiftsto Vendors
FundamentalTechnology
Changes
Installed BaseRefresh
Internet This,Now
Price Is NoObject
Get ReallyRich, Quickly
Pure Greedand Fear
Y2K
Global ITSpending
True Powerof IT FinallyUnleashed
Massive Waveof Innovation
HugeProductivity
Gains
EnormousSocietalImpact
Consumer IsKing
DLA Public Sector Page 5Entire contents © 2004 Gartner, Inc. All rights reserved. |
Massive Vendor Consolidation Will Enable or Cause ‘Burn and Churn’ Through 2005
2,300+ Software Companies
DLA Public Sector Page 6Entire contents © 2004 Gartner, Inc. All rights reserved. |
Massive Vendor Consolidation Will Enable or Cause ‘Burn and Churn’ Through 2005
About 50%-60%Too Many
DLA Public Sector Page 7Entire contents © 2004 Gartner, Inc. All rights reserved. |
End-User Standard Practices
… … rigorously managing your portfoliorigorously managing your portfolio
Consider ...
… … standardizing everything you can at base levelstandardizing everything you can at base level
… … outsourcing anything non-value-addedoutsourcing anything non-value-added
DLA Public Sector Page 8Entire contents © 2004 Gartner, Inc. All rights reserved. |
Advances in Technology: Computing Infrastructure Goes Virtual
2003–2005 2006–2008 2009–2014
Computing Storage Virtualization
Networking and Storage Meld
Utility Computing
Dynamic Partitioning
Network Load Balancing
Horizontal Scaling
Frame Consolidation
Blade Management
Parallel Database
Mixed Workload Efficiency
Distributed Performance Mgmt.
Server Provisioning
Technical Computing Grids
Dynamic Virtual Partitioning
Virtual Blade Mgmt.
Self-Healing
Service-Level Management
Policy-Based Management
Distributed Workload Mgmt.
Grid for Commercial Use
DLA Public Sector Page 9Entire contents © 2004 Gartner, Inc. All rights reserved. |
Wi-FiWi-Fi 802.11g/b802.11g/b
IntelCisco IBM
Residential Broadband Cable
Advances in Technology: Networks Go Wireless Broadband
DLA Public Sector Page 10Entire contents © 2004 Gartner, Inc. All rights reserved. |
Power delivery technology isn’t exciting
Power consumption technology is awesome
“Always on, always connected”
Source: E Ink
Advances in Technology: Power Management and Display Electronics
DLA Public Sector Page 11Entire contents © 2004 Gartner, Inc. All rights reserved. |
Advances in Technology: Massive Shift in Software Architecture
SOASOA
DeploymentDeployment
ContractsContracts MessagesMessages
RepositoryRepository ServersServers
DLA Public Sector Page 12Entire contents © 2004 Gartner, Inc. All rights reserved. |
Interoperability Is Cheaper
Than Integration
Interoperability Is Cheaper
Than Integration
Advances in Technology: Massive Shift in Software Architecture
Composite ApplicationsComposite
Applications“Real Time”Integration
“Real Time”Integration
DLA Public Sector Page 13Entire contents © 2004 Gartner, Inc. All rights reserved. |
Next Massive Wave of Innovation and Demand for IT Will Start in 2006
Secure Broadband
Wireless
Secure Broadband
Wireless
Low-Power-Consumption
Mobile/Display Devices
Low-Power-Consumption
Mobile/Display Devices
Real-Time Infra-
structure
Real-Time Infra-
structure
Transition to SOA
Transition to SOA
20062006
DLA Public Sector Page 14Entire contents © 2004 Gartner, Inc. All rights reserved. |
By 2007 ...
• It will be difficult to buy a nonwireless “device.”
• Secure, robust, national wireless broadband networks will reach critical mass.
• It will be nearly impossible to buy a cell phone without a camera.
• Electronic paper will be a viable alternative to paper for industrial and consumer applications.
• Applications will be built by assembling services.
• Core infrastructures of computing and storage will be much more autonomic and reliable.
• The last new application for Unix will have been written.
• RFID will be ubiquitous up to the retail shop.
• The wireless digital media center will be the de facto home form factor.
• Real-time analytics and massive data management will emerge as the most important business applications.
DLA Public Sector Page 15Entire contents © 2004 Gartner, Inc. All rights reserved. |
Value (Financial)
Saving Money Sourcing Strategy
Strategic Skills SLA Cost
Governance Financial Vocabulary Investment Choices
DLA Public Sector Page 16Entire contents © 2004 Gartner, Inc. All rights reserved. |
Business Alignment
Why
DLA Public Sector Page 17Entire contents © 2004 Gartner, Inc. All rights reserved. |
Making the business case for Enterprise IT
Enterprise IT when aligned will add 22% to Business objectives
Better information for better decisions Speed of operations Lower cost High value outcome first Simplified process
Enterprise IT when NOT aligned will add 0% to Business objectives
Increase Cost Friction Barrier
DLA Public Sector Page 18Entire contents © 2004 Gartner, Inc. All rights reserved. |
Capability can do the job - technical, management, financial
Communications meaningful and timely
Responsiveness understand, anticipate, decide, mobilize, deliver
Predictability set and meet expectations, no surprises
Dependability certain about behavior in uncertain times
Mutuality common goals, individuals win because the team wins
Congruency perception and reality are matched
Consistency standards are deployed, protocols are applicable to all
Reputation personal experience, word of mouth, press, references
cultural fit, business understandingCompatibility
Primary Ingredients of trust
DLA Public Sector Page 19Entire contents © 2004 Gartner, Inc. All rights reserved. |
Capability
Communications
Responsiveness
Predictability
Dependability
Mutuality
Congruency
Consistency
Reputation
Compatibility
Reconsider Relationship
Terminate Relationship
Not Significant
0%
24%
0%
0%
0%
0%
28%
3%
0%
0%
69%
45%
68%
55%
55%
60%
60%
58%
25%
28%
31%
55%
4%
45%
21%
40%
35%
39%
75%
72%
Capability and congruency are the top two factors
DLA Public Sector Page 20Entire contents © 2004 Gartner, Inc. All rights reserved. |
The power of 5 for alignment
1. Management
2. WIFM (carrot)
3. Financial (stick)
4. Communications
5. Trust
DLA Public Sector Page 21Entire contents © 2004 Gartner, Inc. All rights reserved. |
WIFM What is in IT for me?
What value do we bring to our clients?
Is it our view of value or is it their view? How do we help them?
What are each business units objectives?
What are you providing that they cannot do today?
Is it better? Does it really cost less?
Were they involved in the decision?
Given a choice would they choose your service?
DLA Public Sector Page 22Entire contents © 2004 Gartner, Inc. All rights reserved. |
Public sector IS must manage a credibility cycle within and across its organization
ResultsResources
Outcomes
Credibility Initial credibility
Lost credibility
DLA Public Sector Page 23Entire contents © 2004 Gartner, Inc. All rights reserved. |
Leadership & Communications
Leader of the IT team
Leader on Business
Information
Process
Innovate
Coach
Challenge
Communicate
Multimode
All levels
DLA Public Sector Page 24Entire contents © 2004 Gartner, Inc. All rights reserved. |
Vertical and horizontal collaboration turns outcomes into results
Outcome Result
HQ/Centraloffice
Fieldoffice
DLA Public Sector Page 25Entire contents © 2004 Gartner, Inc. All rights reserved. |
Connect outcomes and results to deliver the executive agenda
Business Strategy
ResultsService
improvementCost
savingsNeed met Need met Compliance
Item 1 Item 2 Item 3 Priority A
Priority B
Outcome
ProjectsProject A Project B Project C Project D
Service 1
Infrastructure 1
Service 3
Service 2
Infrastructure 2
Infrastructure 3
IS plans
Executive agendaW
hat
Ho
w
Value
DLA Public Sector Page 26Entire contents © 2004 Gartner, Inc. All rights reserved. |
Multi Dimensional
Keep lights on,
Strategic
Tactical
Metrics and KPI
Sourcing as the Aggregators
Vocabulary
Tech
Finical
Business
Coach
Integrators
DLA Public Sector Page 27Entire contents © 2004 Gartner, Inc. All rights reserved. |
Summary
We need to have multiple Vocabulary (Know our audience)
Tech
Financial
Business
Coach
Integrate – Aggregators
We Need to be aligned to Key Business Objectives and outcomes
Keep in Mind WIFIM
DLA Public Sector Page 28Entire contents © 2004 Gartner, Inc. All rights reserved. |
Contact information
Bart D Stanco
203-258-1867 m
DLA Public Sector Page 30Entire contents © 2004 Gartner, Inc. All rights reserved. |
<Client Name> | Effective IT Governance. By Design | <Engagement: <xxxxxxxxx> | < Date>
Top level IT governance arrangements havethree major components
THE THREE COMPONENTS
1. What decisions need to be made?. . . decisions about major IT domains
© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill &Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't
Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.
2. Who has decision and input rights?. . . Rights are exercised in different governance styles
3. How are the decisions formed and enacted?. . . Multiple mechanisms make governance work
DLA Public Sector Page 31Entire contents © 2004 Gartner, Inc. All rights reserved. |
IT Infrastructure Strategies
IT Principles
IT Architecture
Business Application Needs
IT Investment and Prioritization
Strategies for the base foundation of budgeted-for IT capability (both technical and human), shared throughout the firm as reliable services, and centrally coordinated (e.g., network, help desk, shared data)
High level statements about how IT is used in the business
An integrated set of technical choices to guide the organization in satisfying business needs. The architecture is a set of policies and rules that govern the use of IT and plot a migration path to the way business will be done (includes data, technology, and applications)
Business applications to be acquired or built
Decisions about how much and where to invest in IT including project approvals and justification techniques
© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill & Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.
1: What decisions need to be made? Clarify five major IT decision domains
DLA Public Sector Page 32Entire contents © 2004 Gartner, Inc. All rights reserved. |
Note: Some Governance styles were inspired by Davenport, 1997.
C-level executives, as a group or individuals, including the CIO (but not acting independently)
C-level executives and at least one other business group
IT executives and at least one other business group
Business unit leaders or their delegates
Individuals or groups of IT executives
Each individual business process owner or end user
Business Monarchy
Federal
Duopoly
Feudal
IT Monarchy
Anarchy
© 2002 MIT Sloan Center for Information Systems Research (CISR). This material is adapted from Weill & Woodham's work originally published and copyrighted by the MIT Sloan CISR as Working Paper No. 326, "Don't Just Lead, Govern: Implementing Effective IT Governance," April 2002, and is used by Gartner with permission.
Style Who makes the decisions?
2. Who has decision rights and inputs?. . Rights exercised in six governance styles
DLA Public Sector Page 33Entire contents © 2004 Gartner, Inc. All rights reserved. |
BusinessMonarchy
ITMonarchy
Feudal
Federal
Duopoly
Anarchy
The ‘IT governance arrangements matrix’ shows how decisions, styles, mechanisms fit together
© 2003 Gartner, Inc. and MIT Sloan Center for Information Systems Research (Weill), drawing on the framework of Weill and Woodham, 2002.
IT Principles IT InfrastructureStrategies IT Architecture Business
Application NeedsIT Investment and
Prioritization
Decision domain
Style
Exec commBiz leaders
Exec commIT leadership
Input Decision
CIOIT leadership
Exec commBiz leaders
Input Decision
Biz leadersBiz pro own
Biz/IT rel mgs
Biz leadersIT Leadership
Input Decision
Exec commBiz leaders
Cap appr comm
Input DecisionInput Decision
CIOIT leadership
Some exec +some biz leaders
Biz pro own
Input rights Decision rights
Business/IT relationship managersBiz/IT rel mgsCIO, CIO’s office and biz unit CIOsIT leadership
Business process ownersBiz pro ownBusiness unit heads/presidentsBiz leaders
Exec comm subgroup, includes CIOCap appr commExecutive committee (‘C’ levels)Exec comm
Governance Mechanisms