Instead of spending years developing an enterprise business intelligence strategy to consolidate BI tools and come to a corporate-wide agreement on key performance indicators, some enterprises are finding that an iterative approach at the departmental and business unit level is more effective.
For instance, a division of a global equipment provider to the pharmaceutical and bioscience industry turned to a SaaS BI provider to gather revenue and supplier metrics. This division wants a specific set of data and a relatively quick turnaround.
The company has many BI tools in place, but the division went with SaaS BI provider Oco Inc., because “Enterprise BI is too tough to tackle” said Mike Beckerle, Oco’s CTO.
Coming to a corporate-wide decision on the definition for one metric alone can be daunting.
Take a common enterprise business intelligence metric, customer profitability. On an enterprise scale, the definition of a customer will vary depending on which business unit you’re talking to, as will the metrics for deciding what should be measured to determine a customer’s profitability: How much does it cost to satisfy and support this customer, versus what they pay us in return, for example. That is one of many questions that can determine if a customer relationship is paying off.
Some argue that enterprise-wide definitions and metrics are unattainable. Not only because everyone has to come to agreement on what data should be measured, how it should be measured and who it should be measured by, but also because business goals and markets shift constantly, making a defined metric obsolete pretty quickly.
This is not to say that data should not be centralized or common BI goals are not being created across an enterprise, but I’m wondering if business units and departments are finding it easier and more productive to go it on their own. And if so, what ramifications will this have on an enterprise’s ability to discover cross-departmental patterns and achieve the ultimate goal of predictive analytics?
Let us know what BI path you’re on. Email me at email@example.com.
Welcome back from the holidays! I hope everybody had the chance to take some time off in the past week to spend with their families and loved ones. Now, it’s back to the grind! Here’s the latest content from SearchCIO.com:
Server virtualization and cloud computing carry savings into 2010 — Learn how a CIO saved more than $300,000 through server virtualization and cloud computing.
ITIL best practices and lessons for the new year — The value of implementing ITIL best practices is clear to IT, but not always to the business. Find out how some ITIL users increased ITIL adoption in 2009 and get tips for 2010.
As the new year rolls around, I want to thank all of our SearchCIO.com readers for your comments and contributions to our coverage of IT in 2009.
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!
Happy holidays, SearchCIO.com readers! I’m not sure how many of you are working this week, but I want to make sure you don’t miss the latest content we’ve cranked out in between taking some much-needed time off with our families!
FAQ: Next-generation business intelligence systems — Find out how CIOs are taking their business intelligence strategies to the next level with new approaches to gathering, accessing, measuring, displaying and sharing information.
SOA implementation and application integration: Test your knowledge — A SOA implementation allows communications between disparate services in an enterprise. Review our latest SOA stories and take our quiz and learn how to justify SOA to the business.
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.
The holidays are near! But don’t completely zone out of work yet — first, check out the latest content from SearchCIO.com, covering mobile BI app development, IT salaries and implementing an IT service catalog.
IPhone, need for features driving plans for mobile BI app development — Mobile applications for business intelligence is a gap that IT directors are charging their app development teams to fill as business intelligence and virtualization products bake.
IT salary survey: Half of IT executives expect pay increases in 2010 — Here’s who expects to get raises in 2010 — and how much — based on SearchCIO.com’s annual IT salary survey.
FAQ: Implementing an IT service catalog — An IT service catalog is a menu of services offered by an IT organization. Get the FAQs on how to implement an IT service catalog and automate the service request process.
I’ve been checking back with CIOs whose projects we profiled in this year of the Great Recession. Your mood, I’d say, is sober. Never mind about the familiar doing more with less mandate — one CIO told me he feels like he’s being asked to do more with nothing.
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.
We had an info-packed past week at SearchCIO.com. Don’t believe me? Check out the stories and guides below, covering 2010 information technology budgets, CIO job tenure, outsourcing IT application develoment and management and more.
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.
A mainframe application modernization strategy that pays for itself — This “lift and shift” migration from 700 MIPS to Windows paid for itself and future enhancements out of operational savings. In this piece, experts weigh in on some best practices.
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.
How important is a strong project management office to the success of an IT leader? For Ogilvy & Mather Worldwide CTO Yuri Aguiar, building a centralized PMO was the cornerstone of his efforts over the past year to leverage technology for the ad agency’s 15,000 employees.
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.
We got our first snowfall here in Boston yesterday (not counting the snow we had in mid-October — yes, October), and I think I’m already done with winter…if only Mother Nature were on board! If you’re hating snow like I am — or even if you’re not — check out the latest content from SearchCIO.com, covering disaster recovery, customer feedback management, outsourcing application development and log management practices.
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.
Customer feedback management tools advance, but still no social media — Customer feedback management tools offer new functionality, but responding to social media often falls to the call center.
Managing application development outsourcing risks — Application development outsourcing poses risks, from developers sharing information on blogs to not knowing who is really writing your code. Find out how to manage them here.
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.
I’m going to preface this post by admitting that Google usually impresses me with ease. Google Web search? Easily the best one out there. Google Street View? Amazing. Google Chrome Web browser? Just made the switch and glad that I did. So, when I received my long-awaited Google Wave invite last week, I was ecstatic, and quickly passed invites along to several friends and colleagues. I’d heard all the buzzwords. “Unified communication.” “Enterprise collaboration.” “Real-time integration.” All of this, plus Google’s well-earned reputation as a leader in Web and IT innovation? I couldn’t wait to ride the Wave!
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?