1 Information Technology Strategy Randy Nyberg Assistant Vice President - Information Technology

2 Who is Randy? 25 years in IT at Principal IT Infrastructure and Application Development Distributed Infrastructure Data and Voice Communications E-Business and Collaboration Developer Support IT Help Desk Messaging Client and Printing Information Technology Strategy

3 Retirement and Investments – Pension, Annuities and Mutual Funds Principal International Global Asset Management Life Insurance Health and Wellness – Medical, Dental, Disability, Vision and Wellness Banking and Trust IT and IS Strategy Update Key Principal Businesses Information Technology Strategy

4 Efficiency – operational excellence and predictable expenses Agile – flexible infrastructure, services integration, rapid provisioning and scalability (up or down) Dial tone -- Continuous availability and reliability improvement Skills -- acquire and maintain necessary infrastructure talent to match business needs IT and IS Strategy Update Effective and efficient operations are table stakes! Information Technology Strategy

Alice asked, “Would you tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to get to,” said the Cat. Alice in Wonderland by Lewis Carroll Information Technology Strategy

Today’s Questions 1.Why bother with strategic IT planning? 2.How to decide where do we want to get to? 3.How do we get there? 4.How do we refresh the IT strategy?

Information Technology Strategy Flight Planning Destination Weather & Wind Navigation Performance & Fuel Airspace & Regulations Aircraft Pilot Fly Route - Make Adjustments

Information Technology Strategy Why? Strategic thinking/planning better enables leaders to: Make tough choices Communicate with customers/employees Know where to spend time Respond quickly to challenges Think outside the box

Information Technology Strategy

Flight Planning – Where? Destination Weather & Wind Navigation Performance & Fuel Airspace & Regulations Aircraft Pilot Fly Route - Make Adjustments

11 Our Approach to IT Strategy Development

Information Technology Strategy It all begins with the Enterprise Business Strategy Right conversations between BUs and SCBUs Top-down strategic direction setting Formal planning process Customer focus Dynamic to manage uncertainty Innovation Opportunities and challenges Scenario planning

Information Technology Strategy Annual Enterprise Business Strategy Review Operational plans Budgeting Capital allocation Board Management HR planning Performance management Enterprise IT Planning Shareholder reviews

Information Technology Strategy Flight Planning – How? Destination Weather & Wind Navigation Performance & Fuel Airspace & Regulations Aircraft Pilot Fly Route – Make Adjustments

Information Technology Strategy Enterprise IT and IS Strategy Factors Enterprise business strategy BU and SCBU strategies Expense management and economy External technology industry trends Risk Culture & talent Regulations and security

Information Technology Strategy Enterprise IT and IS Strategy Analysis “Does IT Matter?” Business alignment Technology implications from key business drivers IT Mission, Vision and Core Values Critical Success Factors SWOT Key technology trends/challenges Talent, skills and leadership Partnerships (vendors) Capital

Information Technology Strategy Business Driver Increased scrutiny on security and privacy issues Predictable growth and managing expenses Business growth through organic, M&A, and joint ventures Technology Implication Continued improvement on protecting digital assets IT expense management and predictable expense levels Ability to scale and integrate IT

Information Technology Strategy Flight Planning – Flight Destination Weather & Wind Navigation Performance & Fuel Airspace & Regulations Aircraft Pilot Fly Route - Make Adjustments

Information Technology Strategy Before Departure File your flight plan Preflight checklist complete Review emergency procedures Set Instruments Request/receive clearance Fasten your seatbelts!

Information Technology Strategy IT Strategy Process Results Where Are We Ahead of Plan? Where Are We Behind the Best in Class? High Level Initiatives Strategy Statements IT Roadmaps IT Architecture

21 Metrics –Operations: BU & IT Scorecards; Surveys –Projects: Project Dashboards –Controls: Quarterly CIO Certification Process –Costs: Quarterly Analysis Reports –People: IT HR Scorecard –Vendors: Vendor Scorecards Benchmarks Key IT Process Improvement Progress Key Business Drivers’ Success How Do We Know If We’re On Course? The Road Ahead – IT Strategy

The future of productivity, countries and companies will be driven by innovation, globalization and collaboration. John Chambers Chairman and CEO Cisco Systems Information Technology Strategy

Course Adjustments and Refresh! Iterative process (monitor progress, check assumptions) Confirm your progress against plan Quarterly HLI updates Monthly project updates Changes in external and internal factors

24 Questions? Randy Nyberg Information Technology Strategy