2. In the largest known sample of face-to-face interviews, we spoke with over 2,500 CIOs to understand their goals and challenges The Study represents different-sized organizations in 78 countries and 19 industries Sector Geography Organization Size Our analysis used 2004-2007 Profit before Tax (PBT) growth, relative to peers in their industries, to associate organizations with one of three growth levels: High, Medium or Low. For organizations where this information was not available, we used statistical correlation to assign levels, based on closest overall similarity of answers. In this presentation, we primarily refer to CIOs who work in organizations with high PBT growth as “High-growth CIOs” and to those working in organizations with low PBT growth as “Low-growth CIOs.” Public IBM Institute for Business Value 18% Distribution 24% Financial Services 21% Industrial 24% Others 2% Communications 11%
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4. High profit growth CIOs focus on three primary goals Making Innovation real Raising the ROI of IT Expanding business impact Each of these goals can be realised by focusing on a ‘Pair of roles’ IBM Institute for Business Value
5. Making innovation real Insightful Visionary and Able Pragmatist IBM Institute for Business Value
6. As Insightful Visionaries, CIOs are active members of the strategic team +35% +40% Visionary CIOs recognize that successful innovation requires deep involvement with the business ... and are more often members of the most senior management team ” 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 High-growth CIOs reach out much more to the business to co-create and champion innovation… ” The CEO’s message to the board is that IT is necessary to be better as a company.” Insurance CIO, Mexico +94% High growth Low growth IBM Institute for Business Value Source: IBM Global CIO Study 2009; n = 2598
7. Innovation is not limited to IT solutions: Business-oriented plans rank high among CIOs’ visions of enhancing competitiveness Ten most important visionary plan elements Interviewed CIOs could select as many as they wanted IBM Institute for Business Value Source: IBM Global CIO Study 2009; n = 2345 High growth Low growth
8. Successful CIOs blend pairs of roles that seem contradictory, but are actually complementary Able Pragmatist Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary By integrating this pair of roles, the CIO makes innovation real IBM Institute for Business Value
9. +86% As Able Pragmatists, CIOs make it possible to bring innovative plans to life while "keeping the engines humming" +60% High-growth CIOs actively use collaboration and partnering technologies… +22% High-growth CIOs are expected to spend more time to enable the business and corporate vision … and use third party business or IT services more often to improve their business agility 28% “ 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. -42% Business and corporate vision enabler Core Technology services provider +87% 22% 41% IBM Institute for Business Value IT Organization Entire Organization High growth Low growth Source: IBM Global CIO Study 2009; n = 2598 15% 28%
10. Reflection: What will you do to make innovation real? Able Pragmatist Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary IBM Institute for Business Value Which initiative will you take this Monday that will fundamentally enhance the perception of the CIO as a key innovator?
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12. Raising the ROI of IT Savvy Value Creator and Relentless Cost Cutter IBM Institute for Business Value
13. 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 +61% ” We do recognize the strategic advantage of using data to support improved decision making. We are not as strong as we would like to be, but this is a key plank of our strategy moving forward." Consumer products CIO, Ireland 44% 68% IBM Institute for Business Value High growth Low growth Source: IBM Global CIO Study 2009; n = 2598 54% 74% ... and anticipate much greater levels of integration and transparency with customers In five years, CIOs expect end-customers to continuously explore new channels... +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
14. Successful CIOs blend pairs of roles that seem contradictory, but are actually complementary Able Pragmatist Savvy Value Creator Relentless Cost Cutter Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary By integrating these two pairs of roles, the CIO makes innovation real and raises the ROI of IT IBM Institute for Business Value
15. As Relentless Cost Cutters, CIOs are perpetual seekers of savings who reduce costs through infrastructure and process standardization ... and think business processes will be completely standardized and low cost Many CIOs foresee a strongly centralized infrastructure in five years... Across our entire sample, CIOs spend about 14% of their time to take costs out of the ongoing technology environment “ 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. Of the 60 or so hours per week, some 9 hours are spent cutting costs +22% IBM Institute for Business Value High growth Low growth Source: IBM Global CIO Study 2009; n = 2598
16. Reflection: What will you do to raise the ROI of IT? Able Pragmatist Savvy Value Creator Relentless Cost Cutter Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary IBM Institute for Business Value If you were your own successor, what are the top three things you would do to generate a 20 percent increase in performance from your IT investments?
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18. Expanding business impact Collaborative Business Leader and Inspiring IT Manager IBM Institute for Business Value
19. As Collaborative Business Leaders, CIOs are true partners with other executives, jointly defining better business models High-growth CIOs are more closely involved in co-creating the business strategy with their fellow business leaders CIOs in high growth organizations more often receive high marks from their senior management team +35% Decide on business strategy as a member of the most senior management team +47% +25% Present business strategy jointly with others on the senior management team IBM Institute for Business Value Create business strategy as member of the team High growth +21% Low growth Source: IBM Global CIO Study 2009; n = 2598 53% High or very high score by the entire senior management team for technology’s contribution to the business 66%
20. Successful CIOs blend three pairs of roles that seem contradictory, but are actually complementary Able Pragmatist Savvy Value Creator Relentless Cost Cutter Collaborative Business Leader Inspiring IT Manager Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary By integrating these three pairs of roles, the CIO makes innovation real, raises the ROI of IT and expands business impact IBM Institute for Business Value
21. 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 +69% High-growth CIOs do more to improve users’ access to data, as well as its quality “ We have centers of excellence for ERP and business applications, collaboration and security - some are more formal than others." Government CIO IBM Institute for Business Value High growth Data is reliable and secure Data is readily available for relevant users +31% Low growth Source: IBM Global CIO Study 2009; n = 2598
22. Reflection: What will you do to expand business impact? Able Pragmatist Savvy Value Creator Relentless Cost Cutter Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary IBM Institute for Business Value Which two initiatives will you kick off next month to: 1. Further increase the interest of the business in IT-value add? 2. Further enhance the business skills of the IT organization? Collaborative Business Leader Inspiring IT Manager
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24. Successful CIOs blend three pairs of roles that seem contradictory, but are actually complementary Able Pragmatist Savvy Value Creator By integrating these three pairs of roles, the CIO makes innovation real, raises the ROI of IT and expands business impact Relentless Cost Cutter IBM Institute for Business Value Collaborative Business Leader Inspiring IT Manager Making Innovation real Raising the ROI of IT Expanding business impact Insightful Visionary
27. Long term trends Top three most important forces that impact your IT-organization over next 3 years High growth CIO emphasize business model change; budget constraints may constrain low growth CIOs Medium growth Low growth High growth IBM Institute for Business Value
28. Increasing CIO success Stretching to excel in critical roles IBM Institute for Business Value
29. Each CIO role was scored based on responses to a discrete set of questions. The average overall score for each role was plotted within the three performance categories (High-, Medium- and Low-growth). With a possible range of 0 to 10, actual scores fell between 3 and 7. Using advanced statistical analysis, we profiled CIOs on the basis of six axes and plotted their unique characteristics Medium growth Low growth High growth IBM Institute for Business Value
30. Each CIO role was scored based on responses to a discrete set of questions. The average overall score for each role was plotted within the three performance categories (High-, Medium- and Low-growth). With a possible range of 0 to 10, actual scores fell between 3 and 7. Using advanced statistical analysis, we profiled CIOs on the basis of six axes and plotted their unique characteristics Medium growth Low growth High growth IBM Institute for Business Value
