Sixth Annual

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Sixth Annual June 2007
Re-
v
Defining the CIO
A Roadmap for Understanding Todays CIO in A
Customer-Driven, Digital World July 2007
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Discussion Guide

• Market Customer-Driven, Digital World
• The Re-Defined Role of the CIO
• Roadmap to CIO Effectiveness
• Marketing Best Practices Building Relationships
  with CIOs

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Methodology

• 6th annual executive report Defining the CIO

• Quantitative survey detailing responses from 575
  CIO and corporate decision makers based in North
  America
• Sample drawn from a random selection of
  InformationWeek Optimize multi-media audience
  of C-level executives
• Respondent distribution across IT and corporate
  titles
• 65 CIO, CTO, VP IT
• 35 CEO, CFO, Corporate VP, LOB Executive
  Management
• Released in July 2007 and fielded by CIC Research
  of San Diego, CA
• Additional data provided from qualitative sources
  (e.g., executives roundtables) and 3rd party
  research reports

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Defining the CIO Trend Spotting

• InformationWeek identifies and chronicles CIO
  shifts

• 2002 - The Changing Role of the CIO The Business
  Imperative
• 2003 - The C-Suite Dynamic Optimizing
  CIO-CEO-CFO Relationships
• 2004 - The Office of the CIO Return to Growth
  Initiative
• 2005 - CIO Mandate Stop Aligning, Start
  Contributing
• 2006 - The CIO Business Technology Innovation
  Agenda
• And Introducing Re-Defining the CIO......
• 2007 - The CIO in a Customer-Driven, Digital
  World

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Defining the Role of CIO
Re
v
The rapid shift to digital business processes and
information to serve increasingly tech-savvy
customers are re-defining the role of the CIO,
their focus and what they need from technology
providers.
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The Global Economy is Demanding Technology
Innovation NOW!
1.1 Billion Potential Customers Have Gone Digital

• Worldwide GDP (Purchasing Power Parity) 65
  Trillion
• World Population (2007 Est.) 6,574,666,417
• Internet Users 1,133,408,294
• Population (Penetration) 17.20
• Internet Use Growth Worldwide (2000 -
  2007) 214.00

Source Internet World Stats/Miniwatts Marketing
Group
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Customer Value is Driving Business Growth

• This requires CIOs to exert business technology
  and process leadership like never before,
  developing and delivering solutions STARTING with
  end customers.

Deliver More Products Services to More
Customers
X

• Grow Revenue
• Interact
• New products/services
• New Biz Models
• Competitive Advantage

• Reduce Costs
• Transact
• Automate sys/process
• Re-architect IT
• Enable efficiencies

Deliver Them More Quickly and More Efficiently
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CIOs Working to Transform their Businesses

• From Connectivity to Automation to Digitization
  A Wild Ride!

IT Build the Value Chain Automate Transact
BT Make Us Digital Interact Co-create
IS Connect Enterprise Exchange Communicate
The post-geek hybrid business technologist will
inherit the earth - Ade McCormack, Financial
Times
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CIOs Influence Continues to Rise

• Part of the Executive Suite, reporting to CEOs

Looking ahead, how would you describe the
influence of the CIO in your company?
Upshot 79 of CEOs agree that CIOs are involved
in most important corporate decisions.
Source Forrester Closing the CEO-CIO Gap,
February 2007
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CIOs Time Priorities Today Looking Forward

• Business Planning and deploying breakthrough
  technologies today Meeting Customer Needs and
  Next Wave Technologies looking forward.

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Whats the Main Opportunity for CIOs?

• Drive growth through customer and business
  information.

56
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Upshot Every one of our business units is
digitized to enable a core aspect of business
and you cant be CIO if youre not thinking about
that and are in the thick of the business. Tony
Scott, CIO Walt Disney
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The Shift to End Customer Needs is Re-defining
CIOs Role and Career

• ..and Deliver More Positive Business Outcomes!

Upshot We take our new customer facing role
very seriously and weve even changed our IT
Mission statement to read Helping our customer
to be more successful. Tom Gosnell, Senior VP
CIO, CUNA Mutual Group In the midst of 3-year
Customer Ops Transformation
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What Makes Todays CIO Most Effective?
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The CIO Tool Kit on How to Deliver Results
CIO Tool Kit
Operating Information
Business Processes
Relationships
Technology

• Flip the model and look outside in develop
  processes and technology starting with end
  customer
• Use enterprise-wide, customer and LOB operating
  info as part of your dialog, strategy and
  decision making/rationale
• Focus on internal and external processes to
  increase value and lower costs digitization for
  long term value
• Re-evaluate capital investments build vs. buy
  (services) infrastructure and apps

Source Kahle Partners CIO 2010 Towards Business
Operations
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Tomorrows CIO An Emerging Profile

• A Profile Mykolas Rambus

• Made in Detroit
• Technical and Business DNA
• MIT Sloan, operations, research and IT
• Entrepreneur
• First company at 16, second at 21
• Former CEO of software company
• Sold to Nuance
• Former CIO of W.P Carey (Real Estate Investment
  Trust)
• Became partner at a consulting firm that helps
  CIOs achieve their complex goals
• Coaches on the business of being a CIO
• Now CTO for Forbes Business Media

Upshot I believe that todays CIO will be
tomorrow's COO and possibly the future
CEO. Mykolas Rambus CTO Forbes
Source Kahle Partners, LLC www.mykolas.com
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As CIO Role Redefines, IT Team Takes on Greater
Responsibility

• Allowing CIOs to take on customer-driven,
  digital transformation.

Upshot Weve always needed CIOs to be business
and technology leaders were simply getting
clearer about the need for IT leaders to possess
both skill sets. Steve Phillips, CIO Avnet
Technology Assessment
Strategic Planning
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Building Effective Relationships Engaging the
CIOMarketing Best Practices
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Todays CIO At-A-Glance
CIOs By the Numbers Avg Age 47 82 college
degree Avg Income 173,000 24 advanced
degree Male 88 Female 12 3.5 years in current
position 13 years in vertical
Dan Drawbaugh, CIO University Pittsburg Medical
Center InformationWeek 2006 Chief of the Year

• Some Insightful Psychographics on CIOs.

• 100 asked for advice at a party about home
  computer challenge!
• 78 are willing to volunteer their time
• 74 pursue a life of challenge change
• 71 important to respect traditional customs
  beliefs
• 66 say how they spend their time is more
  important than how much they make
• 55 enjoy taking risks _at_ work and in life

Source IntelliQuest CIMS Spring 2007
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Roadmap for Effective CIOs Focus Points for
Your Communications
Integrator Leads digitization and integration
of business processes, information and decision
support
Strategist Discover opportunities for
leveraging IT for business models and customer
relationships
Educator Excites and inspires business peers
about the strategic impact and relevance of IT
Service Provider Delivers robust, reliable and
economical IT infrastructure and services that
support the business and customer
Information Steward Creates business technology
architecture that provides standards for
information management and provides compliance
for information integrity and privacy
Source Optimize December 2006
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CIOs Come from a Tech Background

• Technology Experience is essential for success
  business leadership now part of their careers.

Upshot To be effective, CIOs must be able to
assess technology and make good
investments. Stuart Scott VP CIO,
Microsoft
What was the job you had before becoming CIO?
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CIOs are Working with Vendors that Deliver

• The number and mix of vendors has increased
  significantly in 2007.

• gtgt 73 of CIOs are more likely to select a mix
  of vendors types
• Mega-vendors Vendors who offer end-to-end
  solutions
• Disruptors Typically start ups with cutting
  breakthrough products

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Mega-Vendors

• What do CIOs want from you?

• Upshot
• Provide Thought Leadership on critical issues
• Involved with CIO at a strategic level provide
  full integrated solutions
• Provide learning opportunities and forums for
  CIOs to interact with peers
• More likely to have staff on location creating
  ongoing relationships

• Account Leadership bring new partners to the
  table I may not know about
• Education for my team and me
• Setting standards and architectures
• Take the lead on Integration
• Service and your people on site, available
• Deep discounts for loyalty and volume

Mega-vendors Vendors who offer end-to-end
solutions
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Disruptors

• What do CIOs want from you?

• Education on new technologies
• Why your technology/product/service? Why now?
• Show me how it works?
• Who else is using it, trying it?
• Has my team seen it, touched it?
• What do the financial services sector think?
• Who has money behind you?
• Industry viewpoints, buzz
• Partner with Mega-vendors

• Upshot
• CIOs need to see and touch breakthrough
  technology, product or service
• Focus on the application
• What it can do for their business and what has
  it done for others
• 3rd Party Data
• Case Studies
• - BIZ TECHWhite Papers
• Demos Trials

Disruptors typically start ups with
breakthrough products
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CIOs Rely on Trusted Sources

• Generation and executive level positions are
  using traditional media with new applications.

• New Media Just Emerging
• RSS 18
• Blogs 18
• Video 14
• Podcasts 13
• Vendor-Sponsored Activities
• Websites 67
• Conferences 51
• Webcasts 41

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Marketing Best Practices

• CIOs Uncensored Direct feedback from CIOs on
  what they want and expect from you!

• Profile Know Your Audience
• Facilitate Peer Interaction
• Content is the King
• Build Trust Focus on Relationship

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Best Practices Profile Know Audience

• Infuse customer thinking into every program and
  all materials you develop
• Walk in their shoes think like a CIO
• Hang up pictures around your office
• Use pictures of successful CIOs - Create Trading
  Cards!
• Make it part of your culture
• Get them involved in your strategy e.g.,
  advisory boards
• Utilize your CIOs, IT Leaders to engage as peers
• Deploy dedicated CIO-Business Technology team
• Ask for feedback ideas

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Best Practices Facilitate Peer Interaction

• C-level face-to-face events and peer networking
  need to be part of your marketing
• Let your best customers interact with your best
  prospects
• Your events or branded events
• Regional User conferences sessions
• Have them lead discussions/teach/mentor
• WIN-WIN Align with CIOs company or industry
  causes and charities (e.g., green, Katrina, etc.)

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Best Practices High-Value Content is King

• Create section of your web site dedicated to
  CXOs/CIOs and align with executive resources
• Educational tools Create or Partner
• Emerging technology primers
• Lessons learned/case studies - align with your
  and their brand
• Visualize Your Solution
• Edu-tainment works make an emotional connection
  
• Dynamic vs. static content
• Always an executive summary what youll learn
• Make it easy to forward to their teams

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Best Practices Build Trust

• Be Real. Authenticity Transparency.
• Nurture the relationship
• Provide tools they can use to lead and create
  dialog with their team
• Win their team - opens door to CIO and CXO suite
• Start with business outcome and end application
  of your technology solution
• Email only after an engagement opt-in and
  invite
• CIOs often use Personal email for registrant