Share Growth Revenue Efficiency Profit Shareholder Value However, at the core of every successful business is the desire to do more than just survive, they also want to grow, to prosper, and to meet the expectations of their constituents – both inside and outside the company. Business leaders are under pressure to produce results – whether it’s increasing market share, growing shareholder value, or decreasing operating expenses. The number one business imperative is “performance”. Companies that do not perform up to the expectations of their shareholders or the market place – will be replaced – by someone more nimble and effective than them. GUIDANCE: Industry – use terminology appropriate to the industry or sector, i.e. patients, voters, etc. Regional: Make examples relevant to how business gets done in your market. Audience: Be sensitive to the most important metric in your account or audience – focus on business performance in that area. Shareholder Value

So, how do businesses thrive? This topic has been exhaustively studied by experts who tell us that the companies who can identify their core competencies and invest in those areas are the ones who win. Where do the winners focus? What is the role of technology in these areas? While this is not a comprehensive list – market leaders focus on four basic disciplines. Customer relationships. Customers are at the heart of every business. Without them we have no revenue stream, no profits, and no future. Companies who excel at developing relationships with their customers and partners are driven to provide the highest levels of service to achieve maximum profitability. In particular, their strategic focus is on: Acquiring and maintaining customers, Up-selling and cross-selling new goods and services to existing customers; And above all, developing customer loyalty to the brand and product or services the company offers. I think of companies like Nordstrom – whose focus on customer service is legendary. Their commitment to providing an intimate experience with the customer keeps them coming back for more; while paying premium prices for their products. Another example is Amazon.com – who focuses on maintaining excellent customer data, from previous purchase history to shipping and credit card information – at the same time providing a high level of consistent service to their loyal customer base. Both of these companies share a unique commitment to strategically align their business processes and metrics to their IT infrastructure – and makes them stand out as leaders their respective markets. Improve Operations. Many companies succeed by focusing on operational excellence and effective cost management. I usually think of companies like Dell, Wal-Mart, or Southwest Airlines who use technology to: Streamline operations and minimize cost, Focus on business process to improve time to delivery And rely on their connections to business partners to deliver value to their customers A third area where winners focus is driving innovation in product and service leadership. There are many great brand names that we all can identify with, including: Nike, BMW, or Sony. I would also put Microsoft in this category. Companies who focus on the development of cutting edge products in their industry are known as the household brands often set the standards for competitors in their market. Technology can play a huge role in helping product leaders gain a competitive edge in their markets. The right approach to IT can help these companies capture and protect intellectual property; streamline business processes and workflow; and provide an opportunity to seamlessly share ideas and projects with strategic business partners up and down the value chain. Innovators use technology to: Create new value in existing product lines and services Innovate around new ideas and concepts And ultimately, figure out how to commercialize those ideas and products and profitably ship them to customers. The fourth area where successful companies focus is through building connections beyond the boundaries of the business. Increasingly business is being done on a global scale and those who win look to partners who can perform services that are beyond the expertise of the company. Technology can help break down the barriers that are naturally created by partnerships with other businesses. GUIDANCE: Industry – use terminology appropriate to the industry or sector, i.e. patients, voters, etc. Regional: For your examples, select companies that are clear leaders in your region or are big global names that can be recognized. Audience: Use companies that are clearly driven by some technology leadership to keep the CIO engaged

Businesses don’t garner insights or make decisions Businesses don’t garner insights or make decisions. Businesses don’t close deals, invent new products, or find new efficiencies. People do. Companies excel when they empower their people to drive the business forward. Strategies, organization, motivation, and leadership all set the stage for business success. But to see results, you also have to give your people the right tools, information, and opportunities—because success ultimately comes down to your people. We call businesses that foster a winning environment a “people-ready business.” At Microsoft, we call this Information Work. Information work happens at all levels of the organization, whether it’s: an individual working in a cubicle or office; employees collaborating with one another in meetings or conferences; or a line of business executive making strategic decisions across divisions or groups. GUIDANCE: