1. Boosting IT’s Role in the Enterprise Laurie M. Orlov VP and Research Director Forrester Research

2. Agenda Making the most of IT’s Innovation Capacity »What are the current IT spending patterns across industries? »How much is spent on new initiatives versus ongoing maintenance and operations — what Forrester calls IT’s innovation capacity? »What is IT Innovation? Marketing IT »How good is IT at communicating with the business? »What are the core elements of marketing IT? »How is marketing of IT related to IT’s role in business transformation and innovation?

3. Typical CIO’s View Of IT Spend Valuable investment in promising blue skies technologies Patchy detail on the 75% of IT budget spent on ongoing IT operations Problem contracts & projects pushed into the background

4. Typical CEO’s View Of IT Spend Cloud of IT cost hanging over the business Hard-to-spot risk that IT projects will fail

5. Typical CFO’s View Of IT Spend Inability to shed light on project ROI or IT ROA No visibility into cost attribution by project or service Bad news on the way

6. IT’s role in the enterprise has changed…

7. IT Spending As A Percentage Of Revenues, 2005 Benchmark May 2005, Best Practices “US IT Spending Benchmarks For 2005”

8. Why The Overall Ratio Of IT Spending To Revenues Is A Bad Benchmark May 2005, Best Practices “US IT Spending Benchmarks For 2005”

9. 2005 IT Spending On Ongoing IT Operations As A Percentage Of Revenues May 2005, Best Practices “US IT Spending Benchmarks For 2005”

10. IT’s innovation capacity: ►The amount of available funds that IT can spend on new initiatives in any given year — typically total IT spending minus IT spending on ongoing operations and maintenance.

11. With total IT spend constant, Innovation Capacity can still grow Innovation capacity Operations & maintenance 2.6% 0.6% 0.7% 0.8% 2.5%2.4% Year 1Year 2Year 3 IT spend as a percentage of total revenue 3.2% Year of IT spend

12. How vital is the IT organization to the success of the following efforts at your company?

13. How satisfied are you with the level of support that the IT organization provides to each of the following efforts?

14. IT Assets Are Key Ingredients For Business Innovation

15. What is IT-enabled business innovation? ►Transforming a business process, market offering, or business model to boost value and impact for the enterprise, customers, or partners

16. Characteristics Of IT Innovation

17. Examples Of IT-Driven Innovation By Type

18. 12 Steps To Recovering IT’s Role In Business Innovation

19. Agenda Marketing IT »How good is IT at communicating with the business? »What are the core elements of marketing IT? »How is marketing of IT related to IT’s role in business transformation and innovation?

20. Theme Marketing helps IT take charge of its own destiny

21. Yet lack of marketing keeps IT as a cost center, with: Invisible contributions Regrettable projects Interminable rollout cycles Underused applications

22. IT and marketing – like a fish and a bicycle Why should we market? We have too much work! Marketing is not a fit with our personalities! Marketing is the wrong word – it’s communications!

23. But if it’s communications, they’re mediocre: Not enough business focus…

24. IT doesn’t talk much, waits to be called, depends on e-mail…

25. …And is close-mouthed about what else it’s working on

26. Does a tree fall in the forest?

27. What is the marketing of IT? The business activity of presenting IT’s products, services, and capabilities to constituents in such a way that makes them eager to fund and utilize

28. Marketing moves IT up the enterprise value chain

29. IT’s Marketing Plan — The 4 P’s applied to an IT organization

30. Planning IT marketing campaigns

31. Boost IT brand equity Use brand to create awareness »Genesys Health’s PDA123 written up in local press Use brand to build lasting trust »JM Family’s transaction dashboard Use brand to attract interest »7-11’s technology scholarship

32. Tactics that are part of IT’s value campaign

33. The marketing of IT is a journey – not a miracle Market to organizations; sell to individuals Get the marketing skills Hire a VP of IT marketing – for big shops Go public with the “M” word Label yourself before the business labels you… Be wary of over-marketing

34. What kind of IT organizations get this first? High exposure with end customers A need to convince constituents to engage Already armed with process discipline

35. Laurie M. Orlov lorlov@forrester.com 617-613-6086 www.forrester.com Thank you Entire contents © 2005 Forrester Research, Inc. All rights reserved.