1. A Survival Guide for CIOs
Dale Kutnick
Senior Vice President
Gartner Executive Programs

2. Business expectations for IT focus on current
operations and performance
* Item not included this year
© 2009 Gartner, Inc. All Rights Reserved.

3. Decrypting the CEO and Business
1. What should I be listening for from my executive peers
as the year goes on?
2. How do I know that executives are changing direction,
priority and emphasis versus floating new ideas?
3. How do I work with the CEO to deliver the business
results in a changing environment?
4. How do I influence those ideas to take advantage of
current IT projects and resources?
© 2009 Gartner, Inc. All Rights Reserved.

4. Unlike the Last Recession, IT Is Not the Problem — But
When Priorities Are This Serious, IT Cannot Be Immune
Cutting operating costs 68%
Increasing revenues 53%
Preserving cash 45%
Sourcing fresh capital 25%
Liquidating assets 9%
0% 20% 40% 60% 80% 100%
Source: Gartner business executive survey 2009 (unpublished) n=150
© 2009 Gartner, Inc. All Rights Reserved.

5. Indeed, in Business Leaders’ Eyes, IT Is One of the Solutions —
So Count Yourself Lucky — And Proceed With Grace
Product enhancement 48%
Information Technology 48%
Sales 47%
Risk Management 39%
Research & Development 35%
Marketing 33%
People & culture development 33%
Partnerships, alliances and value networks 29%
For each of the following
Intellectual property 24%
business areas within
Legal and Compliance 24%
your organization, indicate
Property and facilities 23%
whether investments in
Capital equipment 23%
2009 will increase
Staff (hiring) 22%
compared with 2008.
Business Services 16%
None of the above 15%
0% 20% 40% 60% 80% 100%
Source: Gartner business executive survey 2009 (unpublished) n=150
© 2009 Gartner, Inc. All Rights Reserved.

6. Business Leader Views of IT Capability
Improvement Priorities
Our technology platforms (software,
61%
telecoms, hardware)
Our internal IT department resources 61%
Business department users ability to
46%
exploit IT systems
Our external IT services providers 32%
0% 20% 40% 60% 80% 100%
Source: Gartner business executive survey 2009 (unpublished) n=150
© 2009 Gartner, Inc. All Rights Reserved.

7. Perhaps This Is One Reason Why
60% of
business
leaders think
their current
enterprise IT
capability
CONSTRAINS
their choices
Source: Gartner business executive
survey 2009 (unpublished) n=150
© 2009 Gartner, Inc. All Rights Reserved.

8. A Technology-Enabled
Enterprise Framework
Cor
p . Vi Execution Excellence
ew Pervasive
Integration
IT services
“Services” are
delivered as integrated IT measurably Innovation
expected, across enables a &
based on entities or new/renewed Transformation
established tangential process
metrics business
processes
© 2009 Gartner, Inc. All Rights Reserved.

9. What Is the CEO’s Perspective on IT Execution
Excellence?
Drives efficiency/productivity improvements (automation =
lower costs/revenues in HR, IT, Fin &Accounting, Production,
Distribution, Customer Mgmt, Sales, Mktg, etc)
Creates real-time business measurement to better enable
governance, planning, operations, agility, etc.
Provides risk mitigation/predictability of IT-led initiatives;
protects corp information assets; avoids costly outages.
Delivers DEMONSTRATED value to the business via
credibility and gained trust with business leaders
Execution excellence is the platform for CIOs to gain trust via
tangible, renewable, and measurable delivery of service quality
© 2009 Gartner, Inc. All Rights Reserved.

10. CEO Issue No. 1: Restructuring
Organizational restructuring (such as layoffs)
Financial restructuring (such as deleveraging)
Corporate restructuring (such as entity consolidation)
Industry restructuring (such as players failing)
© 2009 Gartner, Inc. All Rights Reserved.

11. Many IT organizations are organized around IT
assets.
CIO
Business
Requirements
Doc
Functional
Specification
Detailed
Design IT Area IT Area IT Area IT Area
1 2 3 4
Implementation
Line
Test
Integration
Test
User
Acceptance
Test
© 2009 Gartner, Inc. All Rights Reserved. 11

12. Services Delivery Based IT Organization
CIO
Business Facing Domains
Application Management
Professional Services
© 2009 Gartner, Inc. All Rights Reserved.

13. CEO Issue No. 2: Can't Write-off Fast Enough
Must
dump.. Assets we don't need
Debts we won't recover
Old assumptions & plans
Investors who won't play
Staff we can't pay
Managers who can't. . .
Partners we don't need
© 2009 Gartner, Inc. All Rights Reserved.

14. Write-Off: IT Agenda Impact
To support high / peaky PR-related activity
CIOs should
Many and varied BI special requests
expect …
Emergency due-diligence requests
Requests to split systems for divesting
Pressure on HR and security systems & processes
(severance, talent raids)
Minimum lash-up acquisition integration requests
Sourcing based on financial re-engineering
"Zombie" projects without direction or cancellation
BEWARE the "I'm not seeing it" gap
the restructuring dominoes fall slowly
© 2009 Gartner, Inc. All Rights Reserved.

15. CEO Issue No. 3: Loss of Business Trust
Seeds of Radical Change
It seems anybody could go bust any minute
Systemic opacity exposed
The trust of decades trashed in hours
Human decision makers made frail by the speed
of the programmed & connected world
There isn't enough
trust to go around
"I believe in capitalism. I
"An economic Pearl Harbor" also believe there is a
– Warren Buffet, September 2008 role for government. Raw
capitalism is a dead
"The world financial system is becoming multipolar"
- Peer Steinbrueck, September 2008
end. I've seen it"
US Treasury Secretary Henry
Paulson in Fortune - 6 Oct. 2008
"The first casualty of economic downturn is the truth"
– Luke Johnson, Chairman Channel 4, FT October 2008
© 2009 Gartner, Inc. All Rights Reserved.

16. Business Trust: IT Agenda Impact
New interest in:
- Reputation management
- E-discovery
- Business intelligence
Strengthening of "data-driven" management
culture:
- Return of "real-time enterprise" thinking
Information transparency:
- Leading to acceleration of external feeds (e.g. XBRL)
Possibility of business taking social/open/Web
2.0 seriously …
© 2009 Gartner, Inc. All Rights Reserved.

17. Business/IT Relationship Effect on Role
Efficiency Effectiveness
Investment
•
Collaboration
High
Business 5%
Perception •
of Respect
Dependency
on •
Information
Cost
Trust
25%
Low
70%
Low High
Business Perception of Credibility of IT
© 2009 Gartner, Inc. All Rights Reserved.

18. Business/IT Relationship Effect on Role
Efficiency Effectiveness
Investment
Acting as
the
High
business
Business
Perception
of
Dependency Acting like
on a business
Cost
Information Supporting
Low
the
Business
Low High
Business Perception of Credibility of IT
© 2009 Gartner, Inc. All Rights Reserved.

19. CEO Issue No. 4: Globalization Instability
Two-speed economy tensions rise between fast-growth East and
flat-growth West.
Global counterbalancing strategies of growth, risk and currency
need reappraising.
High cost of oil causes location
and transportation topology rethink.
Potential for trade disagreements.
Return of Russian bear &
growth of Chinese military.
Unknown U.S. regulation scope.
Labor migration constraints
amplify talent shortages.
© 2009 Gartner, Inc. All Rights Reserved.

20. IT Agenda Item: Emerging Market Globalization
Requires a New Enterprise Topology
From Industrial Networks To Frictionless Networks
Linking 20th-century Balancing 21st-century
industrial control centers activity volumes
• Your enterprise architects must have a network-centric mind-set.
• The cloud presents new opportunities for global speed and elasticity.
© 2009 Gartner, Inc. All Rights Reserved.

21. CEO Issue No. 5: New Major Regulation Coming
Difficult to know type or scale of impact.
Don't mistake sudden stop-gap regulatory
intervention for the real thing.
Likely to be aimed at redefining free-market
structures — to make them work.
New questions about "social model" capitalism.
Likely to be about policy rewrites and
interventions, not "superficial transparency."
No "SOX 2" — because SOX 1 didn't work.
"End of Reaganomics era" — watershed —
ramifications will extend far beyond financial
services.
The words "too big to fail" will be at the center
of the debate (note U.S. automotive industry
bailout).
IT impacts: Major, but details are too early to say.
© 2009 Gartner, Inc. All Rights Reserved.

22. CEO Issue #6: Many CEOs Will be Interested in
Serious Enterprise Innovation
DHL
DHL Has a dedicated innovation center.
It is developing an RFID “smart
sensor” tracking service for high-
value, cold supply chain items.
www.dhl-innovation.de/en/
CIO Tim Stanley was first to market
deploying “surface computing” in
Harrahs
Harrahs a casino bar in 2008. The table-like
multitouch display offers games,
cocktail “mixology” and dating.
www.microsoft.com/surface
One way CIO Filippo Passerini
Procter & is helping meet CEO A.G.
Gamble Lafley's imperative to improve
collaboration between countries:
300 “telepresence” HD video-
conferencing suites. www.cisco.com/telepresence
© 2009 Gartner, Inc. All Rights Reserved.

23. Innovation at Transport for London
Figure 1. Transport for London sites at the center of an Figure 2. Transport for London uses information, process, and
information based value network that influences customer behavior to benefit the more than 10 million commuters moving
transport decisions that benefit the individual traveler as well as through London each working day.
all travelers moving through London.
© 2009 Gartner, Inc. All Rights Reserved.

24. Techtonics: 2009-12+
Pervasive connectivity
Permanent Disruption …
Information utility ubiquity
Ergonomic interfaces
Info storage & mgmt
Communications standards
convergence
Social networks
Cloud computing
Techtonics enable rapid technology, business, and societal innovation
© 2009 Gartner, Inc. All Rights Reserved.

25. How Does the CEO Measure IT-Infused
Innovation?
Does “automation” enable
processes to be combined, The Process
eliminated, or permutated to (mix of
CEO
Eliminate ?
the following):
- Cut costs?
- Cut time to market (for goods, services)? ?
Combine
- Introduce products faster?
-
-
Read the market more accurately?
Enable BPO, where business-justified?
Mix
?
- Better balance assets, inventories —
people, tools, etc?
- Form partnerships more quickly?
- More flexibly adapt to market conditions?
The CEO is seeking architected approaches that drive current and/or
future revenues and profitability
© 2009 Gartner, Inc. All Rights Reserved.

26. Collaborating to Drive Innovation
Combinatorial innovation takes center stage –
measuring collaborative coefficient
- Ranges from M&A to joint ventures to. . .
- Must have open, well-defined business
“interfaces” to enable “pervasive partnering”
- Must better document and rationalize processes
- Competition evolving from enterprises (vertically
integrated) to global ecosystems
© 2009 Gartner, Inc. All Rights Reserved.

27. Getting to IT-Infused Process Innovation!
Deeply understand business evolution/enabling processes
Dist.
Establish strategic design office; partner with business execs
(internal/external) to “juggle” processes IT Sales
Manage IT budgets and “active agent” personnel
to execute on strategic business priorities
Mktg.
Manage skill profiles like staffing agency and move skills with Cust.
changing roles: Create evolving routines across the business Svc.
Build reciprocal measurement into all service relationships
Develop and exploit information assets HR
Fin.
IT-infused process innovation changes what work gets done by whom,
improving effectiveness, efficiency, and increased accuracy
© 2009 Gartner, Inc. All Rights Reserved.

28. The relative value of management priorities has
changed
Cash – generating free cash flow to support operations
and investments (Information and Integration)
Customers – raising your share of the best customers in
the marketplace (Information)
Cost – reducing the operating cost structure of the
enterprise and IT (Business Process)
Capacity – achieving scale operations in the enterprise and
the data center (Virtualization)
Capability – enhancing performance of people, products
and services (Innovation)
Control – improving transparency, reporting and benefits
realization (Information and Management)
© 2009 Gartner, Inc. All Rights Reserved. 28

29. IT Imperatives: 2009/10
Improve efficiency (e.g., IT costs/revenues) and
flexibility
Enable appropriate outsourcing approaches in the The Solution
context of a business-relevant portfolio
management plan CEO
Enable business leaders to manage demand for IT
services (via trust, transparency, and discipline)
- Expose old, high-priced applications and tools
Relate (in business/economic terms) the cost,
consequences, and impact of IT-infused business
processes
Establish and maintain the ITO sub-brand: Ongoing
communication on business value and services
Successful ITOs will drive execution, pervasive integration, and
transformation
© 2009 Gartner, Inc. All Rights Reserved.

30. Finally…..
Clear the table (of current plans) and start again
Deliver significant cost reduction:
- In both operating cash flow and capital investment deferral
- For many, the requested cuts will be double digit*
Deliver head count reduction – for ratio realignment
Cancel some major projects
And:
Deal with unexpected acquisitions & divestitures
Manage HIGHER risk taking on projects (for speed)
Work with LOWER procedural obstacles & stronger CIO powers
© 2009 Gartner, Inc. All Rights Reserved.