2. Making It As A 21-st Century CIO Alex Cullen Vice President And Research Director Forrester Research February 28, 2008

3. 3 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Theme Technology is moving outside of IT’s control — CIOs’ one choice: Partner with the business to stay ahead of the change

4. 4 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT leaders to be successful at BT? How will IT leaders successfully respond to enable business success with BT?

5. 5 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT leaders to be successful at BT? How will IT leaders successfully respond to enable business success with BT?

6. 6 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Business is certain about technology’s importance – but isn’t as certain about IT’s capability Technology will be a core component of our products and/or services Technology will be central to how we differentiate ourselves from competitors “How strongly do you agree or disagree with the following statements about the perception of technology's importance in your business in 2010?” IT enables technology to be a core component of our products and/or services Strongly Agree Strongly Disagree July 2007 North American and European Business Technology Online Survey Online survey of 186 business decision-makers IT enables technology will be central to how we differentiate ourselves from competitors “How strongly do you agree or disagree with the following statements about your perception of how effective IT is at meeting your business's expectations?”

7. 7 Entire contents © 2007 Forrester Research, Inc. All rights reserved. … and it reflects in IT priorities Which of the following two statements most closely describes your company's philosophy toward IT? Technology is a differentiator Technology is used primarily for efficiency July 2007 North American and European Enterprise IT Management and Governance Phone Survey Phone survey of 503 IT decision- makers IT Drivers for 2008, ranked by importance 1.Get application projects done on time and on budget 2.Improve infrastructure services 3.Reduce costs of the business with IT 4.Reduce costs within the IT organization 5.Improve IT value management and communications 6.Support regulatory requirements 7.Increase the capacity of IT 8.Address staffing and skills needs 9.Improve transparency to business of IT costs, business demand and capacity 10.Increase company differentiation with IT

8. 8 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Business organizations are frustrated with IT Businesses are impatient with IT’s speed Firms can’t govern technology populism Technology allows users to out-pace IT projects IT’s design-build-maintain approach isn’t working!

9. 9 Entire contents © 2007 Forrester Research, Inc. All rights reserved. New technologies enable business users — without IT Tech populism — blogs, wikis, IM, handheld devices Assembling, composing, and configuring — business process management (BPM), information workplace (IW) Contracting — Software as a service (SaaS), business process outsourcing (BPO) All based on increasingly robust IT infrastructure and operations

10. 10 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Business Technology (BT) is rapidly emerging ►Pervasive technology use that drives business results BT is a fundamental change in technology management — not another pendulum swing from centralized-to-decentralized IT

11. 11 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Business organizations play roles previously in IT Base: 186 global business executives 28% 34% 26% 28% 21% 30% 3% 4% 3% 2% 31%25% 15% 27%19% 36%24% 38%24% 32%21% 3% 10% 7%16% 6%19% 5% 12% 10% 5% Defining or designing the solution Directly selecting vendor-offered solutions Directly negotiating with and/or directly managing solutions vendors Directly configuring solutions to deliver what you need Directly managing the technology solutions once in production Directly managing projects with substantial technology involved Completely other business areas’ (not IT’s) responsibility More other business areas’ responsibility Equal mix of other business areas and IT More IT’s responsibility Completely IT organization’s responsibility Don’t know Source: July 2007 US The Business View Of IT Online Survey

12. 12 Entire contents © 2007 Forrester Research, Inc. All rights reserved. IT has to balance the two aspects of increased business control Business control is risky... Information integrity and consistency Assuring compliance, security, policy, and privacy Quality assurance Execution performance... but business control means opportunity User-driven speed Business agility Networked business models Founded on IT excellence

13. 13 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT leaders to be successful at BT? How will IT leaders successfully respond to enable business success with BT?

14. 14 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Traditionally, IT handles the entire technology stack Stable foundation and commodity technologies Transaction systems, data warehouses — RDBMS, BI platform — storage, servers — data center ops, desktop maintenance Dynamic and differentiated technologies X Internet, multichannel, mobile, SOA

15. 15 Entire contents © 2007 Forrester Research, Inc. All rights reserved. But with BT, business people deliver solutions Historically, it’s all been IT...... but with BT, business people deliver dynamic, differentiated solutions

16. 16 Entire contents © 2007 Forrester Research, Inc. All rights reserved. With BT, business users’ needs are changing Traditional IT provides:BT users also need from IT: Solution analysis, design, delivery, and operations Solid business app platforms SOA services for data, transactions, policy, security, etc. Deep technical skills on call Support for BT tools Operational support for BT solutions Project management Project support services Help with skills development IT-centric technology Open minds, support, & culture New technology R&D Joint business innovation

17. 17 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Agenda How are frustration and opportunity conspiring to drive greater technology control in business orgs? What does the business need from IT leaders to be successful at BT? How will IT leaders successfully respond to enable business success with BT?

18. 18 Entire contents © 2007 Forrester Research, Inc. All rights reserved. There’s a fork in the road: Take it! Focus only on traditional IT- Letting business areas run ahead without you Getting stuck in the technology engine room Focus heavily on enabling BT - Empowering business success with managed risk Becoming a partner player

19. 19 Entire contents © 2007 Forrester Research, Inc. All rights reserved. IT enables BT by enabling flexibility From:To: IT/business alignmentBT synchronization Business results from large IT-led projects Business results mostly from small BT efforts Investments that cover much of the technology stack User investments in thin layers at the top tech stack Data and transaction investments deep in the stack Crisp lines between IT and business roles Fluid lines of responsibility between IT and the business IT-does-it-allBusiness-user-enabling IT has open minds and culture IT assures risk and policyIT enables users to manage risk and policy

20. 20 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Today’s IT organization manages all technology... IT Architecture IT Strategy & Planning CIO DevelopmentIT Operations IT Demand Management

21. 21 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Technology Exec Today’s IT organization manages all technology... IT Architecture IT Strategy & Planning CIO DevelopmentIT Operations IT Demand Management

22. 22 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Technology Exec... but CIOs must become chief BT officers, restructuring IT... BT Architecture BT Strategy & Planning CBTOs BT Synchronization DevelopmentIT Operations Business Organizations... as business orgs take on roles previously in IT Business analysis Project management Application configuration Information management Analytics delivery Security, compliance, risk, and policy assurance

23. 23 Entire contents © 2007 Forrester Research, Inc. All rights reserved. The CIO will change to support BT enablement Source: December 6, 2007 “Next Up: The 21 st Century CIO:

24. 24 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Checklist for successful 21-st century CIO Source: December 6, 2007 “Next Up: The 21 st Century CIO:

25. 25 Entire contents © 2007 Forrester Research, Inc. All rights reserved. For Additional Reading… December 14, 2007 “Seven Trends That Will Shape The CIO Role” by Alex Cullen December 6, 2007 “Next Up: The 21st Century CIO” by Bobby Cameron

26. 26 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Alex Cullen +1 617.613.6373 acullen@forrester.com www.forrester.com/simboston Thank you