MYO IT – Building an IT organisation

By Tony Welsh, Associate Partner, Information Professionals

Imagine the excitement of starting again, no baggage, and building a new (or improved) IT organisation; Of being able to build the business from the ground up and manage the business of IT properly from the outset. A scenario like this offers immense opportunities but also prompts so many questions:

InformPros business transformation strategy
  • Is there a legacy to inherit or is it Greenfield?
  • Will we be a service provider? A service broker? A smart buyer? Or a mixture of each?
  • Will we do IT ourselves or get someone else to do IT for us? Which bits?
  • What will be our customer value proposition? How will we stay relevant?
  • Will we be on premise or in the cloud? In full or in part?
  • What capabilities will we need? Where are the gaps?


That’s a lot of questions and I’m only scratching the surface! So let’s take the opportunity to explore some of these issues and also some of the tools that might help us answer the questions. We’ll also consider IT operating models and industry frameworks and standards in an attempt to shine some light on the topic.

Contemplating an IT operating model?

When it comes to ICT management there appears to have been recent interest in filling the apparent void of IT standards and practices. For many who thought that the established frameworks such as COBIT® (by ISACA), TOGAF® (by The Open Group) and ITIL® (by Axelos), already filled that void, the news may come as a bit of a shock. 

The most notable new kids on the block include IT4ITTM (the recent offering from The Open Group) and Technology Business Management (TBM) headed by the TBM Council. In addition let’s throw into the mix a commercial take on ‘Enabling IT as a Service’ from a major IT service provider.

These new players seem to be concerned mostly with managing the business of IT or running IT as a business. Equally, both seem to be focused on emphasising the value of IT and showcase progressive approaches to IT such as brokering services, cloud, IT as a Service, DevOps etc. Both approaches are also ‘data-driven’ which resonates with me from my days in the eighties with LBMS in London who took a data-driven approach to its SSADM and LSDM development methodologies. Both approaches are agile-friendly.

Whilst other methods and frameworks have introduced standards for many of the processes in IT, (enterprise architecture, strategic alignment and governance, security, applications development, program, portfolio and project management, operations and support etc.), it is fair to say that for too long IT Managers, CIOs and CTOs have been left to link those standards together in the best manner they can. This has revealed some gaps.

Let’s consider the new players

IT4ITTM provides a Standard Reference Architecture for IT. This comprises an IT Value Chain plus service, information, functional and integration pillars. The IT value chain is based on the work of Michael Porter and it comprises four value streams being:

1. Strategy to Portfolio (S2P)
2. Requirements to Deploy (R2D)
3. Request to Fulfil (R2F)
4. Detect to Correct (D2C)


The primary value streams in the IT Value Chain are underpinned by five supporting activities. IT4IT models the functions that IT performs to help organisations identify the activities that contribute to business competitiveness.

Now let’s look at what TBM has to offer. TBM essentially defines the organisational elements, disciplines and value conversations of an effective TBM program.



Its apparent focus is (to a large extent) on the cost and value of IT. This includes:

1. Run the Business
    – Cost of Performance
    – Business Aligned Portfolio

2. Change the Business
    – Investment in innovation
    – Enterprise Agility

TBM uses ‘value conversations’ across all of these as well as four core disciplines – Create transparency, Deliver value for money, Shape business demand, and Plan and govern – to help run and change the business. These were certainly second nature to me as an ex-CIO.

Creating an IT operating model

In CISCO’s white paper ‘IT Transformation with Cisco’, they describe ‘Creating an operating model that enables IT as a service’. Email me for a copy of the white paper!

This diagram depicts the ‘Capabilities of a transformed IT organisation’.


Most noticeable is the resemblance between the IT4ITTM Value Chain and the Cisco Capabilities Model above. This suggests some element of synergy, intentionally or otherwise.

So which is the best framework?

To give a practical example it’s worth referring to a presentation on ‘How Shell IT manages data to bend the cost curve’. This is a case study of TBM presented by Shell’s IT4ITTM Team on the TBM Council website. They claim to have achieved a 20% cost reduction in applications run costs. As Shell is one of the principle architects and proponents of IT4ITTM this provides a good indication of how the two approaches might complement each other.

It is most likely that IT4ITTM represents a more extensive and comprehensive IT Management framework whereas TBM offers a richer coverage of specific features and disciplines. The latter would appear to be particularly true in relation to cost containment, business value and portfolio management. COBIT® v5 combined with Val IT (Business Value of IT) clearly offers additional perspective on those topics covered by TBM.

The short answer is to apply the best horse to suit the course you’ve set about travelling. If you’re specifically looking at cost containment or value management initiatives then the best short term approach will most likely involve TBM. If on the other hand what you crave is end to end IT service management and execution, then IT4ITTM would provide a more prescriptive platform.

Although these frameworks have been around (at least in part) over a few years, this does make them relatively immature when compared with COBIT® (v5) and TOGAF® (V9.1). At the same time, both IT4ITTM and TBM are heavily supported (and developed) by a range of significant industry leaders. Hence they are worthy of significant attention. In an industry that has long suffered the consequences of inadequate standards, it is reassuring to know that we (IT Professionals) may finally be headed towards the same standing that is enjoyed by the likes of HR and Finance practitioners.

IT operating model and organisation structure

The following diagram is an example of another IT operating model. It was designed for a client to respond to the internal and external drivers in their industry.


It generally reflects similar elements to the Cisco model, that is, strategy and planning, governance, IT solutions (i.e. service design and development), IT operations and client services (i.e. support). In addition, its features include Agile Development, Bimodal IT, I/S/PaaS and DevOps. Various frameworks and methodologies have been overlayed including COBIT®, TOGAF®, ITIL® and Prince2 (by Axelos).

It’s also worth introducing Gartner’s IS Lite and IS Lean models at this stage:


Over many years I have applied Gartner’s Lite and Lean models to assist in identifying the most appropriate allocation of capabilities to both in-house and outsourced IT organisations. This knowledge is a critical ingredient in building effective and efficient IT business models and structures.

With all of these models available, the task of designing an appropriate business model for your organisations should be relatively straight forward.

What’s the final step? 

Moving from business model, through macro and then micro structure design, is the last step before such things as job specifications, recruitment and so on. The challenge is to try to maintain the integrity of the underlying business model when building the structure. For example, a structure based upon the four IT4ITTM value streams might well be considered. However, an alternative functional structure might better suit the particular circumstances. The level of IT4ITTM maturity may also be a factor.

So what can we take away from this?

In order to build your IT organisation (MYO IT) you need to:

1. Understand the internal and external drivers for your IT business.
2. Contemplate your customer value proposition.
3. Initiate a change management process.
4. Identify your target capability profile and any gaps (See Gartner’s IS Lite and IS Lean).
5. Design your IT operating model (see IT4ITTM, TBM, Cisco and Client models).
6. Design your macro and micro organisation structure.
7. Complete role descriptions, sizing etc.
8. Build your core IT team.
9. Procure your partners.
10. Complete the change management process.

Now you’re ready to start!


About the Author:

Tony Welsh is an Associate Partner with Information Professionals where he leads their Strategic ICT Practice. He has over 30 years’ ICT experience gained in the United Kingdom, New Zealand and Australia. Over half of that time has been spent working as a CIO for large and diverse organisations. In particular he’s been engaged in ICT strategic planning for organisations including a rural fire service, a union, a large government rail organisation and two large city councils.

He led a team of consultants in developing an IT Sourcing Strategy for a large health organisation and he’s designed IT operating models and IT organisation structures for water and electricity utilities and higher education organisations. Tony is a Certified IT4ITTM Professional.

Business Strategy vs. ICT Strategy vs. Digital Strategy.

Business Strategies have been around for a long time.  ICT Strategies less so.  But the new kid on the block is the Digital Strategy.  What is it, and how does it differ from the first two.
The Oxford Dictionary has two primary meanings associated with Strategy.  The first is below.  The second has a military context.  This is understandable as many management concepts still in use today originated from the military.
Definition of Strategy: a plan of action designed to achieve a long-term or overall aim.  Definition
It makes sense that a Business Strategy is therefore a plan of action designed to achieve a long-term or overall aim for a business, or an organisation.  Their names may vary from Business Strategy to Corporate Strategy, Organisational Strategy or something else.  However, most of us know what these look like even if their name may vary.  It is usually developed, or at least lead by the Chief Executive, and it may have extensive input from the Board.
An ICT Strategy can take a number of forms.  In many organisations it is a response to the needs of the Business Strategy.  That is, it defines the ICT plan of action designed to achieve the ICT related aims of the business.  It is usually developed by the Chief Information Officer (CIO) or an equivalent role.  The Chief Executive is often consulted and involved to varying degrees depending on the organisation and on the Chief Executive.  The Board could also be involved, although in my experience it is rare for most Boards in Australia to play an active role in the preparation of an ICT Strategy.
In my view, this approach to the development of strategy has been a big weakness for many organisations.  It is based on a flawed assumption.  And that assumption is that ICT can only form an output from Business Strategy.  By definition, that means that ICT is not a useful input into Business Strategy.  This is flawed thinking, and has been for many years.  ICT has the potential to impact on Business Strategy.  And this effect is becoming more pronounced with each passing year.  For instance ICT innovations are allowing new entrants to enter existing markets, the creation of brand new markets and the creation of new business models and industry structures.  ICT is changing our expectations (as clients and potential clients) for how we interact with organisations.  If you have any doubt, you would know that you and most of your friends use ICT daily to buy, consume or research various products and services.  If you still have doubts, read Marc Andreessen’s article, Why Software Is Eating The World.  I have put some direct quotes from this article below.
Despite this flawed assumption, Business and ICT Strategies have largely been developed in this way for many years.  In more recent times, and perhaps for only the past five years, the Digital Strategy has come along.  It primarily came out of marketing departments who realised that there were more digital marketing and advertising options that they were having to consider.  But beyond that, they also realised that customers wanted to interact with their companies in multiple ways, including digital and online ways.  In some cases they also saw their own market share being eroded by these new entrants that were capitalising on Digital approaches to doing business, and these Digital approaches were being very successful.
Hence we have seen the rise of the Digital Strategy.  While its development may be lead by the Marketing Department, it is increasingly becoming of major interest to Chief Executives and Boards.  There have been enough company failures caused through being blindsided by Digitally enabled alternatives that it is worth them taking a keen interest.  This also means that the Digital Strategy is taking on a broader view, not just a marketing view but a broader strategic view of the organisation, and considering things such as industry structures, competitor behaviour, organisational capabilities, organisational structures, and many aspects of an organisation’s business strategy.
This evolution of the Digital Strategy is now becoming what the ICT Strategy could have been, and perhaps in some rare cases, has always been.  The Digital Strategy is now becoming an input into the broader strategic view of the organisation, helping to inform the Board and Executive team, and providing an input into the entire organisation’s strategy.
A word of warning: Be careful assuming that the above descriptions apply in every organisation though.  In some cases ICT and Business Strategy formation does happen in concert with each other, but this is rare.  And in some cases a Digital Strategy remains a marketing only view although this is becoming less common as a broader view evolves of what a Digital Strategy should be.
Can all three strategies sit side by side?  The easy answer is yes.  But over time, it is natural that they could merge.  For instance, would Amazon or Google or Netflix or Apple or Skype have a Digital Strategy and a Business Strategy.  I cant say for sure, but I don’t believe that they would think of strategy in two separate domains in this way.  In most organisations, it will be useful to have a Digital Strategy.  It will introduce new ideas and concepts and challenge the existing organisation and hopefully have a positive impact on the overall strategy for the business.

Overall, the emergence of the Digital Strategy having a whole of organisation view, and even taking an industry and marketplace view, is a good thing.  It helps organisations to see the opportunity and risk that is in front of them.  The view of many commentators is that eventually every company will have to become a technology company or they will no longer be around.  If that is true then the sooner you start this evolution the better off you will be.  And if a Digital Strategy helps get you started then that is great news.

Business Strategy
Digital Strategy
ICT Strategy
Developed by the Board and Chief Executive
Always
Increasingly
Rarely
Strategy Development is Lead By
CEO and Board
Was Marketing, Increasingly CEO & Board
CIO
Implications for every aspect of an organisations
Always
Increasingly
Rarely
Considers Client and Market Needs
Always
Always
Rarely
Considers Industry and Competitor Behaviour
Always
Increasingly
Rarely
Considers new technology opportunities
Rarely
Increasingly
Always

Article Written By: Mark Nicholls.

Managing Director, Information Professionals. 
Mark is one of Australia’s most trusted IT Change Management advisors. He also has other entrepreneurial business interests that he operates through MaidenVoyages.

 If you liked this blog check out our other material at Informpros.com.au

Post your thoughts and comments below…

Excerpts from “Why Software Is Eating The World” (WSJ OP )
  • More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defense.
  • The world’s largest bookseller, Amazon, is a software company
  • Largest video service by number of subscribers is a software company: Netflix
  • The most dominant music companies are software companies: Apple’s iTunes, Spotify and Pandora
  • The fastest growing entertainment companies are videogame makers—again, software.
  • And the fastest growing major videogame company is Zynga (maker of games including FarmVille), which delivers its games entirely online.
  • The best new movie production company in many decades, Pixar, was a software company. Disney—Disney!—had to buy Pixar, a software company, to remain relevant in animated movies.
  • Photography, of course, was eaten by software long ago. It’s virtually impossible to buy a mobile phone that doesn’t include a software-powered camera, and photos are uploaded automatically to the Internet for permanent archiving and global sharing. Companies like Shutterfly, Snapfish and Flickr have stepped into Kodak’s place.
  • Today’s largest direct marketing platform is a software company—Google.
  • Today’s fastest growing telecom company is Skype, a software company
  • LinkedIn is today’s fastest growing recruiting company. 
  • If you still need convincing or want to read more, read the entire article.

So you want to be a CEO?


This is a question that frequently raised its head during my tenure as a CIO. Almost as frequently as: does CIO stand for ‘Career is Over?’
There are certainly examples in which CIOs have risen to the rank of CEO. Generally these tend to relate to either company restructures that have seen the emergence of new business subsidiaries under a larger parent, or more typically internal ICT organisations that have restructured as ICT Companies, possibly from what Gartner terms as Internal Services Companies (ISCos). So, yes it can happen!
If that is your aspiration, I’ve provided five tips below to help you to make it happen.  They comprise:

 

·        Step one – Gaining Acceptance

·        Step two – Achieving Parity

·        Step three – Adopting a CEO Champion

·        Step four – Extenuating the Positives

·        Step five – Establishing your Virtual Footprint

Each is outlined below.

1.     Gaining Acceptance
The fact that CIOs are generally well represented around the ‘Top Table’ these days, removes one significant barrier to career escalation. As senior executives, CIOs get the opportunity to get to know the CEO and possibly members of the Board or Government whichever it happens to be. At the same time, they will have dwelled in the same pastures and to a large extend fed from the same trough as their senior executive colleagues. Above all else they should (if they’ve done their job well) have gained a whole of business perspective as well as fostering a degree of mutual respect and support.
2.     Achieving Parity
At least CIO’s can consider themselves to be alongside the likes of the Chief Finance, Strategy, Operating and or Procurement Officers in the line to the Head Hunter’s door, or can they?
I’ve worked with at least one CFO who has subsequently been appointed as CEO for another organisation and I’ve worked with a variety of other business executives that have done the same. Backgrounds have included Procurement, Engineering and assortment of Business Operational Executive Managers. The experiences differ but they do tend to have some things in common:
·        Most have a solid tertiary qualification;
·        Most have done more than one senior executive role;
·        Most have taken the lead in a significant change/transformation program;
·        All have been driven towards CEO attainment.
3.     Adopting a CEO Champion
Another important factor is that all of them have been mentored and supported by a sponsoring CEO. There is nothing quite like having a well-respected CEO in your corner to champion your cause, to mentor you through the teething troubles or to kick start you on the trail to being a CEO. It is a sure way to attach credibility to your aspirations.
4.     Extenuating the Positives
But there are also a few factors in your favour as a CIO:
·        Likelihood of a strong connection with transformational initiatives?
·        Familiarity with many other parts of business operations and offering a unique perspective?
·        Experience with good governance and service delivery and/or shared services?
·        Tertiary qualified?
·        More than a passing familiarity of the potential for ICT to generate business value.
The first thing to do is to articulate your value proposition.  I suggest using, practising and refining this as an elevator pitch. Then you’ll need to find a nurturing CEO (not the simplest of task in itself) to get you moving in the right circles and elevate your profile. In the interests of achieving parity, a sideways step into an alternative Executive Management role might round-off your preparation.
5.     Establishing your virtual Footprint
Today the tools are at hand to help you to establish and raise your profile on a local, national and international basis. Tools like LinkedIn, Twitter and even Facebook are all at your disposal through which you can boost your virtual presence. Twitter and Blogs especially offer a means to get your views and opinions across, all of which can help to establish your reputation. You may also want to investigate how to accumulate your Klout score via Klout.com to represent the extent to which ‘you influence the world!’ Keep in mind of course that both good and bad reputations can be made over night!
At the same time, presenting at industry events and getting involved with industry bodies and associations can create openings through which you might display your talents. In other words, plan to migrate from being seen as a company champion to being revered as an industry champion.

In the meantime, as for me I think I’ll just stick to my ‘vowel theory’. That is in terms of my aspirations of moving from ex-CIO to CEO, I’ll continue to dispute the rule that suggests it should be “I comes before E, except after C”!

 

Tony Welsh
Associate Partner, Information Professionals

Tony has over 30 years experience as an ICT professional including 15 years in Chief Information Officer (CIO) roles. His particular skills include ICT and business strategic planning, program management, business and ICT alignment and stakeholder management. He is particularly valuable for organisations seeking to get more out of their ICT investments and/or to use ICT to transform their organisation.

 

So you still want to be a CIO?

 

The Reflective CIO – So you still want to be a CIO?
Welcome back! I figured it was about time to follow up on my original blog. Last time I discussed six time-tested observations I have made over fifteen years as a CIO. This time I thought I’d offer my perspective on a couple of topical subjects:
·       The evolving role of the ICT Organisation
·       The evolving role of the Chief Information Officer
You might believe that the two subjects are intrinsically linked and I would agree but I would suggest that the linkage will be radically redefined over the next couple of years.
1.     The Evolving Role of the ICT Organisation
First off, what are the main drivers for change? Well that might include:
·       Increasing the focus on business improvement
·       Freeing up scarce resources
·       Reducing the costs of running the business
·       Gaining access to a wider pool of capability
·       Refocusing on core business activities
·       Maximising profitability
·       Improving service quality
·       Achieving profitable growth
·       Differentiating products/services
·       Increasing customer self-service
·       Reducing risk
·       Increasing customer loyalty
At the same time you need to respond to emerging trends and realisations:
ICT Commoditisation
Let’s start with a clear definition.  I like the definition provided at www.BusinessDirectory.com – “Almost total lack of meaningful differentiation in the manufactured goods. Commoditised products have thin margins and are sold on the basis of price and not brand. This situation is characterised by standardised, ever cheaper, and common technology that invites more suppliers who lower the prices even further.
That same definition that applies to products can be applied to the services that are associated with those products.  Hence the trend in organisations to divest those services which have traditionally formed the backbone of the ICT Organisation.
BYOD – Now-Generation Outsourcing
An appropriate response to Gen Y and Gen Z consumers (i.e. staff and/or customers) is to let them redefine ICT as we know IT. The hardware is now user defined and supplied. The software and operating system is outsourced and managed over the cloud and Apps are readily available to download to devices of their choice.
In this scenario, the potential responsibility of the ICT Organisation or entity becomes that of providing secure (i.e. portal) access and facilities to update corporate information. BYOD is not without its challenges and it needs to be carefully planned and executed (see 10 Steps to a Successful BYOD Strategy)

 

Customer Self-Service –ultimate Business Process Outsourcing (BPO)?
An undeniable trend is that of customer self-service. How can it be possible that you can get customers to answer their own queries or choose their own product, at their own expense, in their own time? And there’s more: they can process their own payment, up front, and even make their own arrangements for delivery. Yes and we will rate those businesses very highly!
The world is changing!
Strategic Sourcing
Whereas organisations were once faced with two primary options:
a.     In-house – The generally low value, low cost option
b.     Outsourced – The generally higher cost, higher value option
There is now a multitude of variations available including:
c.      Sole-Sourcing – Outsourcing to one principle vendor
d.     Multi-Sourcing – Outsourcing to multiple vendors
e.     Co-Sourcing – Partnering with a firm that employs staff to meet your long term needs
ICT as a Service
With the emergence of the cloud, a proliferation of ‘ICT as a Service’ variations have emerged providing choices to organisations. These include:
a.     Software as a  Service (SaaS)
b.     Infrastructure as a Service (IaaS)
c.      Platform as a Service (PaaS)
d.     And other variations are emerging such as Data Centre as a Service (DCaaS).
The theme of ICT as a Service features throughout the Queensland Government ICT Strategy 2013-2017 http://www.qld.gov.au/dsitia/assets/documents/ict-strategy.pdf and increasingly of those in other jurisdictions.
In essence, these services provide for organisations to procure ‘turn-key’ solutions on a regular (eg. monthly) subscription basis. As a consequence the assets remain the property of the service provider as with the responsibility to apply upgrades and refreshments over the contracted term.
In some cases, these services can also be integrated with buy back and leasing arrangements to facilitate flexibility with financing and for those with existing assets.
The Overcoming of the ICT Stigma
Fairly or unfairly, many ICT Organisations carry a reputation for underperforming and failing to deliver business value. Some are judged to be expensive and lacking in capability and frequently external service providers are viewed through rose coloured glasses.

 

Implications for the ICT Organisation
When you add it all up, it would seem that the writing is on the wall for the ICT Organisation. Indeed, it’s fair to say that the writing has been there for some time. Certainly, as a CIO I have been presenting that message to my teams since at least early 2000. As I look back now, those teams bear very little or no resemblance to the teams of today.  On and off-shore outsourcing and more recently the cloud, have played a major part in redefining them.
In Gartner’s IS Lite publications from 1999, they have espoused the virtues of a slimmed down IS/ICT organisation. Much of that work continues to be relevant today. However, things look to be destined to move to yet a new level. I would expect to see:
a.     Acceleration of the slimming down of ICT organisations
b.     The emergence of new governance structures to accommodate what I refer to as ‘External Trusted Advisors’ (ETAs)
c.      Further divestment of ‘demand-side’ responsibilities i.e. some aspects of architecture and strategy development, business enhancement (e.g. project management) and technology advancement (e.g. prototyping)
d.     Emergence of new roles and capabilities to generate business value in areas such as data analytics, open data, business intelligence, social marketing etc.
They have been saying that the “mainframe is dead” as long as I can remember. The reality is that they are still around but their role that has changed. Likewise, ICT organisations can survive but not in their present form. How will you and your organisation be impacted:
·       What’s your value proposition?
·       Are you relevant?
·       What differentiates your services from those of others?
If your organisation has the right answers to these questions, you might survive and even prosper.
So what will this mean for the staff of the ICT organisation? Well, the technical skills will still be needed but those opportunities will mostly be with ICT Service Providers (SPs) including Cloud SPs. There will continue to be a place for high value capabilities including vendor management, strategic planning, relationship management and portfolio management. Otherwise, it will primarily be those occasional bad experiences with vendors that will slow down the inevitable transition to outsourcing and particularly ICT as a Service.
2.     The evolving role of the Chief Information Officer
So, with the prospect of his/her empire crumbling, will “CIO” finally stand for “Career Is Over”? Well, in some cases the answer is yes. For others it will depend on two main factors:
·       How progressive is the CIO?
·       How aligned is the CIO with the CEO?
Progressive CIOs will be reflecting on this blog as confirmation of the career development strategy that they already have in mind. Others might re-think theirs and start getting on board. The remainder I will call Blue Sky CIOs – because they see no room for the cloud – are most likely to dismiss the scenario I’ve outlined as being unrealistic. Well, to each, their own. What is for certain is that the role of the CIO is evolving. What is equally certain is that the role is evolving in different directions. These include that of:
·       The Chief Digital Officer (CDO)
CDOs will typically have experience with digital technologies, e-commerce and digital transaction processing, social media and online marketing. They will be concerned about how digital changes marketing, recruitment, procurement, sales and finance. They will be heavily involved in data analytics and in employing Business Intelligence and influencing business strategy to adapt to the Digital Age. The CDO’s focus is customer-focused (front end) technologies.
·       The ‘Traditional’ CIO/CTO
CIOs/CTOs toil to keep leading companies abreast of cumbersome, enterprise-wide technology upgrades and efficiencies – virtual servers, enterprise resource planning (ERP) and IT infrastructure of all kinds. The domain includes the maintenance of Enterprise Architecture, policies and standards was well as traditional ICT services such as Desktop support, telecommunications management, applications development. As these services increasingly become the domain of external service providers over the cloud, the role will become less relevant.
·       The ‘Hybrid’ CIO
The ‘Hybrid CIO’ reflects the evolution of the CIO as a business leader, tasked with leading business transformation with equal focus on business process optimisation, information exploitation and technology innovation. In the scheme of things, this will result in the technology taking a back seat with emphasis switching to stakeholder management, vendor management and cloud service brokering rather than ICT service delivery. Business Process Management and Data Analytics (as with the CDO) will be at the forefront.
·       The ‘Virtual’ CIO
It’s also worth contemplating the role of the ‘Virtual CIO’. For SMEs unable to retain a permanent CIO and for larger organisations requiring CIO capabilities to plan or oversee transformational changes, this might present an answer. It might apply for traditional, hybrid or even Digital nuances. Essentially we’re talking about CIO as a Service (CIOaaS) which may have particular appeal to organisations contemplating a move on from their current arrangement but being less certain of the flavour they need next.
With each alternative role I expect significant change. The likelihood is that the traditional CIO/CTO will operate with a reduced sphere of influence – to a large part reverting back to the role of ICT Manager and being consumed within the domain of the CFO, CMO or even the CDO. Not all CIOs will make the transition to CDO and many will choose not to. For those that don’t, I suggest that transition to the ‘Hybrid CIO’ role would offer a better alternative and (possibly) a transition step to being a CDO.
Final Word
  

It’s going to be an interesting time ahead for both CIOs and ICT organisations. Now would be a good time to contemplate what the coming changes will mean for you as a CIO or an aspiring CIO and to position yourself to make the most of it. Thanks for reading!

If you like this article, share it! 

Comment, please leave us your thoughts.

 

Tony WelshTony Welsh
Associate Partner, Information Professionals

Tony has over 30 years experience as an ICT professional including 15 years in Chief Information Officer (CIO) roles. His particular skills include ICT and business strategic planning, program management, business and ICT alignment and stakeholder management. He is particularly valuable for organisations seeking to get more out of their ICT investments and/or to use ICT to transform their organisation.

SCOPE Spring Conference – Chicago – Report 3

What is the trend for the best performing Supply Chains, today and into the Future? – by Mark Hewitt.

We finished off the last report with “a given” to all in attendance that change was necessary, and that some part of the organization back home was an “ugly baby”.

After all, we all have the rogue spreadsheets used outside the main systems and this should be acknowledged. The delegates were educating themselves, ensuring they were “current” in what was available and seemed to fit the criteria for the talent that David Ecklund identified for transformation to be possible.
Along with looking to where organizations are going, the conference presenters were mindful that our daily demands and immediate concerns can’t be ignored. I talked to delegates like Mitch, Charlie and many more who all appreciated the need to change and allocate some time to build a strategic plan to get there, whilst the tornado of the today’s issues are attended to.

Catching the bus back from Wrigley field with Brandon Jobe from AIPC, I was fortunate enough to confirm that the S&OP implementation success he presented was backed and demanded by the CEO. The achievements of doubling stock turns, improving forecast accuracy from 51% to 76%, reducing obsolesce from 18% to 1.8%, etc wasn’t an overnight success but rather an ongoing part of running their business. They had been at it for 6 years.

AND MOVING TOWARDS THAT FUTURE
So what are the lessons and what does the future hold?

Firstly, today’s leaders need to see their Supply Chain as a driver for business outcomes and not purely as a function. They also need to be patient and persistent, understanding this is a journey and an evolutionary process.

For many organizations the next step is to focus on S&OP. That means, connecting the silos and forming teams lead by the Supply Chain to bring together the customer facings departments with the commercial interests as well as the operational engine room responsible for making it happen.

Common overall business objectives and shared metrics like forecast accuracy are the way of the future. The successful organizations of the future will move from reaction to customer facing initiatives to orchestration of market demands with internal collaboration. This is the challenge for progressive Supply Chain people.

Finally, the key to success is going to be how well supply chain practices, processes and systems are integrated into the complete business picture. Better planning and satisfying the needs of the customer across the organization through S&OP type activity will bring this together. Essential for success will be the development and implementation of the strategic plan to help them get there. This is what will keep the process, people and technology efforts synchronized.

Please contact me for any more information – Mark Hewitt.