We, too, grappled with a “doing more with less” environment this year, and that meant your various forms of feedback — your emails, your blog comments and, new this year, your Tweets — were really integral to directing our writing and editing resources in the right direction. We hope that our coverage of ITIL and ITSM, virtualization, IT outsourcing, cloud computing, business continuity, BPM, PPM, IT cost management and more spoke to your needs as an enterprise CIO. As we continue in that direction, keep talking to us so our coverage of IT in 2010 meets your needs. Thanks!]]>
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IT outsourcing in 2009 and beyond: Lessons learned for the new year — IT outsourcing in 2009 ebbed and flowed with the economic recession. What lessons did enterprise CIOs learn that they will carry into their IT outsourcing plans in 2010 and beyond? Read their advice here, and feel free to come back to the blog to share your comments.]]>
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McKinsey & Co.’s annual IT survey of business and IT executives seems to bear this out. When CIOs and CTOs were asked how well their IT functions responded to the economic crisis, about 49% said their management of IT infrastructure was extremely or very effective — a decline of 13 percentage points from 2008. IT executives were down on themselves in other areas of IT operations, as well. Only 21% said IT was very or extremely effective in “driving technology enablement or innovation in business processes and operations” — also down 13 percentage points from in 2008. And only 21% said they were very or extremely satisfied with their ability to “target places in the organization where IT can add the most value” — down 10 percentage points from 2008.
Interestingly, non-IT executives were more satisfied with IT’s management of infrastructure — with 55% percent reporting very or extremely effective performance on IT’s part, up from 50% in 2008. Their satisfaction with higher-value activities, such as on-time/on-budget project delivery and “proactive engagement from IT,” was less gushing, hovering in the 30s, the report found. But significantly, their opinion of IT performance on these fronts was unchanged from the year before, despite all the economic turmoil and cost-cutting, according to the McKinsey survey.
On other fronts, the survey found that companies have a growing appreciation for what IT can do for it. For example, this year, improving business efficiency was ranked as IT’s foremost job in helping further the company’s goals, beating out “keeping costs low” by 12 percentage points. This suggests that companies’ reliance on IT to make business efficiency happen was more important to them in 2009 than in nickel and diming IT budgets.
That CIOs took a dimmer view of their ability to deliver in 2009 does not surprise. CIOs are hard on themselves — they have to be, because IT is complex. Letting up can bring down a company or a swath of the nation’s airports in seconds.
But the double-digit declines in satisfaction over IT’s effectiveness in enabling and innovating business processes and finding ways to add value to the business should be worrisome to CEOs who are pleased with what their CIOs are doing. A prominent recruiter we talked to recently said she is hearing from a lot of CIOs who, having stuck with their company’s during the downturn, now want to take their skills and savvy and move on.
This might be the year for CEOs to put something good under the proverbial tree for CIOs. And my yuletide greeting for CIOs? Chin up. You done good.]]>
2010 information technology plans will have smaller budgets — Will 2010 be the year most IT budgets decline? Our annual survey says “yes” but also reveals significant differences in both budgets and priorities between the haves and have-nots.
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Insourcing IT application development and management: A how-to guide — Insourcing your IT application development and management can bring you closer to your mission-critical applications and data. In this tip, get advice on bringing application work back in-house.
CIOs parlay business smarts into stable job tenures — In a sign that the IT role is maturing, the tenure of IT executive jobs was an average six years in 2009, a dramatic difference from past downturns. Find out why CIOs are sticking around.
CIO’s guide to outsourcing application development and management — Application outsourcing will lead enterprise CIO agendas again next year, with IT application development and management services in high demand. Learn more in this guide, our latest in the CIO Briefing series.]]>
Ogilvy was spending millions annually on technology-related projects but not getting very far, Aguiar said. “It would all go towards hardware and services and be fragmented around the globe.” A year and a half ago, the PMO was established under the auspices of the global IT operations in New York.
“We have managed to centralize every single dime of the capital. It is our biggest success story in managing spending,” he said.
Aguiar was in Boston last night to talk about transformational leadership at the Society For Information Management’s (SIM) end-of-year get together.
The power is not in the PMO, per se, Aguiar said, but in a fundamental change in how projects are funded and managed at Ogilvy. All projects are reviewed by three architects and subjected to a risk mitigation and management (dubbed RM2) metric before approval. Top priority is given to revenue-generating projects. Urgent projects trump “important” projects, and timelines run about 12 to 14 months max. Also, all project managers report directly to Aguiar. “If somebody is running one day late, he or she is knocking on my door,” he said. He also appointed a person (based outside New York) who spends roughly 50% of his time capturing the results of the projects. Success stories are then shown off on a regular basis, with “real statistic and measurements, no vaporware,” he said. If the project “can’t be seen or touched or used, it is not there.”
The project management office becomes even more critical in a tough economy. To compete on price, Ogilvy has built small production hubs in places around the world to take advantage of the lower labor costs.
I’ll be digging deeper into how the Ogilvy PMO works in an upcoming story. In the meantime, we’d like to hear from you on how you are structuring your PMOs to drive IT execution and strategy.
Coda: CIO equals “career in overdrive”
Typical of good speakers, Aguiar’s talk was peppered with multi-point lessons and catch phrases — and raw ambition proudly on display. Aguiar said he stepped into the position in January armed with four personal goals. Nobody in the organization was going to think of the CIO as a “career is over.” In his realm, CIO is going to stand for “career in overdrive.” He wanted to be “sought after” by the business to solve problems, not “hunted” down to answer why something wasn’t working He is earning the respect of his IT team by showing them he is a leader not a “middleman” in the business, and he plans to convince the business he is a partner, not a participant, in Ogilvy’s success.]]>
Four lessons in IT disaster recovery planning from an FAA outage — Does the recent FAA outage contain lessons for CIOs? You bet, starting with the fact that most IT disasters are exactly like the one that hobbled the flight management system.
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Leveraging log management for IT and business process efficiency — Having invested in log management for security and compliance, some companies are using their security information and event management tools to drive business process efficiency.]]>
OK, now somebody please explain this to me, because I am so unimpressed. I’ve been able to chat through Gmail through years, so how is this much different? I guess the fact that you can hold a multi-person chat is cool, as is the ability to embed videos and photos directly into the chat stream (when it works). But I don’t see anything revolutionary in here. Moreover, I find it cluttered and confusing to navigate, whereas Google is usually so intuitive. (Also, a friend and I each experienced an unwanted person from our past popping up on our contact list – come on, Google, you’re supposed to be smarter than that!)
My experience has made me question Google’s long-term strategy with regard to enterprise collaboration and Google Wave. Google likes to be the standard by which other Software as a Service applications judge themselves. More and more, Google is trying to market its services, like Gmail, to enterprise organizations. From all of the hype surrounding it, I had the impression that Google Wave would make me feel like my colleague in the Midwest is sitting at the next desk over. Alas, it hasn’t, and I can’t see Google Wave, in its present iteration anyway, taking on any kind of foothold in the enterprise.
Moreover, would enterprise audiences want so much pertinent communication taking place on a platform that they do not oversee? In a new and somewhat untested Web 2.0 environment, security and privacy issues are likely to emerge, and I would anticipate compliance headaches aplenty for CIOs who have employees communicating on this platform about work-related matters.
Despite the rocky start to our relationship, I’m trying to give Google Wave a second shot, and envision ways it could carry an enterprise forward. Have you tried using Google Wave in the workplace yet? What’s your experience been? Can you see a CIO sanctioning its use as an enterprise collaboration platform in the distributed workforce?]]>